Category Archives: Personal Finance

5 Tips for Buying Affordable Life Insurance

Once you discover life insurance does not cost as much as you anticipated, you’ll be even happier to know that there are certain steps you can take to make certain that you end up buying affordable life insurance.

Wouldn’t it be a good thing to know those well-kept secrets that reduce your life insurance rates? The agents typically know how to keep your rates low but are they all sharing this information? Remember, agents are paid on a commission basis so the more premium a policy brings in, the higher their commissions will likely be.

Please don’t misunderstand, we certainly don’t maintain that agents won’t always act in their clients’ best interest.  Some are just more knowledgeable than others when it comes to finding the “sweet spot” for your life insurance policy. Here, we’ll provide 5 tips for buying affordable life insurance.

 

Tip #1 – Buy Life Insurance Online through an Independent Agent

 

There are thousands of independent insurance agents out there with many of them doing business online through a website. Since independent agents represent multiple insurance carriers, you will not be forced into a cookie-cutter policy and your business with be shopped with all of the carriers they represent. Your independent agent should be experienced and reputable, and represent the majority of the highly-rated insurance carriers. Here are some additional recommendations:

– Rather than going to multiple insurance company websites to get quotes, look for a site that represents and offers quotes for the major life insurance companies.  The price is the same, whether you purchase a policy from the insurance company or a broker.

– The website should offer quotes without asking for a lot of personal contact information.  You’re only looking for quotes right now and shouldn’t have to give more than your name, phone number, email address.

– When you enter your basic information, the website should show you quotes – not a list of companies that you can access to get quotes.  Why should you have to enter your information twice (or 3 or 8 times)?  The companies that will ultimately quote you are paying that website to be on that page.  Why bother?  Most of those companies can be found by searching Google, Bing or Yahoo?

– Your quotes should be realistic and, therefore, should be based on your health profile.  While no quotes are guaranteed, make sure your quote is based on the same underwriting criteria used by the insurance companies. If you must guess, be realistic about your health.

– Make sure the website is staffed by insurance professionals who can answer your questions and assist you with the application and policy delivery, should you choose to purchase insurance.  Many sites do not process applications or offer assistance during the underwriting period.  Rather, they sell your information to several (sometimes as many as eight) life insurance brokers, who will try their hardest to reach you and sell you a policy.

– Make sure the website has an updated privacy policy and legal notice.  You should know who you are trusting your information with.

– Read the About Us section.  If one doesn’t exist or it doesn’t tell you who you’re doing business with (I’ve seen a lot of these lately), you probably shouldn’t be doing business with them.

– Before you enter any personal information, ensure that the web page you are on is secure.  It should have a Secure Seal of some sort and the web address should start with https (rather than http).

There are many life insurance websites on the Internet, but only a handful of them meet all these criteria.  Shop for the website first, then shop for insurance.  While it might seem like it takes longer to do it this way, you will most probably save time, headaches and money in the end.

 

Tip #2 Know how much Life Insurance to Purchase

buying affordable life insurance

 

Figuring out how much life insurance death benefit you need to get can be quite challenging. Purchasing life insurance is an important decision, and it certainly isn’t one that should be made lightly. Selecting the correct amount of coverage is just as important as choosing the right type of policy. When you want to figure out how much life insurance is enough, a life insurance calculator can be very beneficial.

There are several different types of calculators available online. They’re free and easy to use. You can quickly and easily evaluate your life insurance needs using several different calculations, such as the human life value or multiple of earnings method. To get results, you’ll simply need to enter a few details about your goals, finances, and other relevant factors into the calculator of your choice.

Determine the Life Insurance Death Benefit with the Multiple of Income Method

Looking for the simplest method of determining how much life insurance is enough to provide protection for your family without getting into formulas? There are a number of different ways to calculate the proper amount of coverage. While many different variables can impact the amount of coverage you need, the multiple of income method can be a quick way to determine the minimum amount of coverage you might need.  We do recommend though to take the minute or two to use the interest method described in these tips.

Life insurance calculator tip using multiple of income:

This technique for determining life insurance needed simply involves multiplying your annual income by a multiplier, based on your age at the time the policy is purchased.

  • 25 years old? Choose life insurance valued at approximately 25 times your annual income.
  • 35 years old? You’ll want to get life insurance that covers about 20 times your yearly earnings.
  • 45 years old? Based on multiple of income method, it’s recommended that you get life insurance worth approximately 15 times your annual income.
  • 55 years old? It’s a good idea to make sure that you’re life insurance policy is for an amount about 10 times your annual earnings plus any estate tax liability that may be due.

Calculating Life Insurance Needs with the Interest Method

There are several different approaches to figuring out how much life insurance is enough. The interest method is one of the most commonly used techniques for estimating life insurance needs. Simply think about how much money, on a yearly basis, your family would need to live comfortably. Once you have that number in mind, come up with a realistic interest rate you could expect to earn on invested money.

You can use these two figures – the amount of yearly income needed to live comfortably and a realistic interest rate – to calculate the minimum amount of life insurance you need. Divide the annual income figure by the interest rate, and the number you get represents the amount of life insurance you should get. The resulting figure provides the amount of cash that you’ll need to invest in an interest-bearing account to provide your family with the annual income they need. Example:  Let’s say your family would need $100,000 per year and you feel that 5% is a realistic interest rate.  Dividing $100,000 by 5% (.05) would come to $2,000,000 needed to provide $100,000.  You can deduct any cash or liquid assets from the $2,000,000.

Eliminate Guesswork with Life Insurance Calculators

Looking for the best way to evaluate how much life insurance is enough? There are several different ways of estimating insurance coverage. The recommended method for determining coverage may vary significantly from one life insurance professional to another. When you want to be sure that you’re making the right decision about the amount of protection your family needs, it’s a good idea to use an online life insurance calculator.

Using a calculator can take the guesswork out of estimating your basic life insurance needs. Instead of using a single mathematical formula to evaluate insurance needs, life insurance calculators typically take multiple factors into consideration, such as inflation, interest rates, human life value, and other important variables.

Make sure that you are using a calculator provided by reputable sources. Be wary of calculators not provided by insurance professionals. Instead, use options provided by highly rated life insurance companies and online life insurance agencies. Their calculators are designed specifically to be tools for helping people make sound decisions about their life insurance needs.

 

Tip #3 Be Prepared before You Start Shopping

 

There are various considerations that you need to be aware of before you begin shopping for life insurance. At the top of the list is the easiest to determine. Why do you need life insurance and what do you want it to do for you?

Economic needs – Life insurance provides coverage for your family when end-of-life costs threaten their financial security. When shopping for life insurance, you should consider the types of liabilities that will have to be addressed when you are gone. If you think that these expenses might be too much for your loved ones to afford, you might want to consider some form of coverage.

Health needs – Your current medical condition can impact the affordability of life insurance, either positively or negatively. Certain plans may be the wrong choice depending on your needs, so it’s important to speak with an industry professional before making your final choice.

Duration of coverage – Depending on the situation, you might not need an open-ended policy like universal life or whole life insurance. Instead, you might want to opt for term life insurance, which protects you over a certain period of time, usually in “terms” of 10, 15, 20 or 30-year categories. If your needs for life insurance protection aren’t lifetime needs, term life insurance is probably the best choice for you.

 

Tip #4 Ignore the Myths about Buying Affordable Life Insurance

 

Have you ever gotten what you thought was great advice from a family member, friend, or coworker, only to find out it was useless? Most people are happy to give advice about life insurance but the problem is their advice is usually based on myths rather than facts. Here are a few tips that are really myths that you should ignore:

Life Insurance Coverage at Work Is Enough

Maybe, maybe not. If you have a spouse, dependents, or tax needs then additional coverage may be necessary.  However, for a single person of modest means, employer-paid or provided term coverage may actually be enough.

You’re Single and Don’t Have Dependents, So You Don’t Need Life Insurance

I am a firm believer that even single persons need at least enough life insurance to cover funeral costs. Additionally, I believe that everyone should have enough life insurance to cover the cost of personal debts and unpaid medical bills at a minimum.  If you are uninsured, you could potentially leave a legacy of unpaid expenses for your family or executor to deal with.

Your Life Insurance Coverage Only Needs to Be Twice Your Annual Salary


There is no cookie cutter answer for this.  The amount of life insurance each person needs depends on their specific situation. In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years. A cash flow analysis is usually necessary to help determine the true amount of life insurance you should consider purchasing.

Buy Term and Invest the Difference


Once again, there is not a cookie-cutter answer or approach for this.  There are distinct differences between term life insurance and permanent life insurance and those differences can become even greater, depending on the company you purchase from.   One thing is certain though, the older one gets, the higher the costs of term insurance becomes.  If you know for certain that you must be covered at death, then you should consider permanent life insurance. I would also suggest comparing total premiums over the length of time you feel you need coverage so you are able to see the lifetime expense.  Please do not be fooled and not address the insurability factor once your term policy expires.  The risk of not being insurable later in life could be disastrous for those who may have estate tax issues and need life insurance to pay them.

 

Tip #5 Buy Your Life Insurance at LifeInsure.com

Fortunately, LifeInsure.com can meet the criteria we recommend you look for in an independent insurance agent. Our firm is experienced and reputable, and we represent all of the highly-rated life insurance companies which helps us deliver the best solution for your circumstances.

 

 

 

 

Article source: https://www.lifeinsure.com/5-tips-for-buying-affordable-life-insurance/

How your health affects your life insurance rates

We are sorry to be the ones to break the news, but you are not going to live forever.

This is one of the many reasons having life insurance is important to you and your family.

You cannot control whether you die or not, but you can have a positive influence on how long you live.  

The average life expectancy of people in the United States is 78 years old and is rising. This is because of how health-conscious the world has become, and also due to improvements in technology and healthcare.

People are beginning to make health-conscious incremental changes to their lifestyles while they are young, in order to better themselves in the future.

Living a healthier lifestyle not only saves your life it saves you a ton of money on life insurance.

What is Considered Healthy to a Life Insurance Company?

Life insurance companies determine rates in a process called underwriting.

Underwriting is the process of calculating the overall risk someone poses to the insurance company having to pay out a claim during the life of their policy.

One of the main factors accounted for in the underwriting process is health.

Before we dive deeper into how different aspects of your health affect your life insurance rates, this infographic briefly explains what this article covers:

What Health Factors are Taken Into Consideration by Life Insurance Companies?

There are a lot of factors taken into consideration when determining someone’s overall health.  Life insurance companies typically take these main factors into account when determining risk:

  • Age
  • Gender
  • Height – Weight ratio
  • Family history
  • Medical history
  • Smoker/non-smoker
  • Lifestyle

How Weight Affects Life Insurance Rates

Yes, how much you weigh plays an important role in your health.  

When it comes to weight and life insurance, a majority of life insurance companies look at BMI, or Body Mass Index, to calculate risk based on average weights based on your height.

The Center for Disease Control reports that more than one-third of Americans are considered obese.

This is an astonishing number but society has taken notice of this and, as a result, many people are changing their diets accordingly. Life insurance companies have taken notice too, they understand the health implications that can arise if someone is considered overweight or obese.

Diabetes, heart problems, and high blood pressure are just a few examples of health problems that can be caused by being overweight. Life insurance rates for obese and overweight people are often higher, and much higher with health complications resulting from their weight.

Some athletes have a higher BMI, and as a result, can be considered overweight or even obese when it comes to this quick weight analysis.

However, for people in fairly good health or better, a medical exam life insurance policy will be best for you anyways, in order to get the cheapest rates.

No medical exam life insurance exists, but this is mostly for people who are in poor health or need insurance very quickly. Much higher rates are associated with this type of life insurance as a result.

How Age Affects Life Insurance Rates 

When you apply for life insurance, insurance companies will attempt to determine your life expectancy – how long you are expected to live, given the information you provided.

Your life expectancy is calculated based on millions of data points that life insurance companies are able to compare.

Age has the greatest effects on the pricing of your policy because as your age increases so does your chances of passing away. Sad, but true.

This is why we recommend getting a life insurance policy while you are still young and in good health. So, what is the best age to purchase life insurance?

The optimal age to purchase life insurance is under 35. This is generally the age when people start a family and will have others depending on their income. Life insurance is best purchased when you are at low risk, and locking in rates at a young age is a great way to get insurance for your family at an affordable rate.

How Gender Affects Life Insurance Rates

Another characteristic that life insurance companies will look at when quoting you a price is your gender. Life insurance companies use statistical models to determine how long someone will be around.

Women live 5 years longer than men on average. As a result, women have lower life insurance premiums, because they can pay longer.

How much more expensive is life insurance for men?

Usually, men will experience 25-40% higher rates than women for life insurance, depending on age.

How Your Profession Affects Life Insurance Rates

Some professions put you at a higher life insurance risk than others. Some jobs that are considered to classify someone as a high risk individual are:

  • Police officers
  • Firefighters
  • Soldiers
  • Race car drivers
  • Astronauts
  • Pilots
  • Many more…

Unless your job is seriously dangerous, your profession probably does not affect your rate as much as you would think. Life insurance companies may add an additional fee to your policy that is subject to change as your position changes.

How Does Lifestyle Affect Life Insurance Rates?

Your occupation is only one portion of how risky your life is on a daily basis. Your lifestyle also helps determine your life insurance premiums.

Do you sit on the beach and read a book for fun? Or, are you an adrenaline junky who races speedboats, goes hang gliding, cliff dives, and goes mountain climbing?

The more dangerous of a lifestyle, the greater the opportunity for something to go wrong. Life insurance companies can see this as a liability which, in turn, would raise your premiums. If you do live life on the edge, there is a much greater benefit for having a life insurance policy.

How Your Driving Record Affects Your Life Insurance Rates

This may come as a surprise but your driving record is also taken into consideration when getting a quote for a life insurance policy. The average person spends 293 hours a year in a vehicle. That is 12 full days!

The road can be a dangerous place and the longer you are on the road, the higher the chance you have of getting into an accident. It’s just math.

Life insurance companies can access your driving record and see your past offenses of violated traffic laws. The last 3 to 5 years are weighted the heaviest, so it may be beneficial to keep a clean slate before you purchase a life insurance policy.

How Does Smoking Affect Your Life Insurance Rates?

Perhaps the factor that impacts life insurance rates the most, other than being terminally ill, is smoking. Smoking is a huge red flag in the life insurance industry because of the negative effects it has on your body.

Life insurance rates for smokers are often 2-5 times higher than for non-smokers.

Smoking can take years off of your lives. It is the leading cause of lung cancer and is responsible for 480,000 deaths per year. The average smoker in the United States dies 10 years earlier than the average nonsmoker.

Life insurance companies see how great a risk smoking is on your life, so they pass that risk along to you through your rates. Luckily for you, smoking is a habit that can be kicked. 

Smokers who quit can get their rates back down to only about 10-20% more expensive than non-smokers within the first year of quitting (barring any other health condition).

Those who have a policy and plan on quitting can also get reduced rates by re-taking your medical exam to get a reclassification for your medical risk. This also helps to reduce rates, though not every policy offers this.

Frequently Asked Questions About How Health Affects Life Insurance

As we stated earlier, the best time to  purchase life insurance is while you are young and in good health. Your personal health has an enormous effect on the rate of your policy because it directly correlates with how long you will live. It’s simple, the healthier you are the longer you will live.

Life insurance companies want to insure healthy people who are at a low risk of passing away early. 

Maybe you are not in the best shape of your life right now but you still need life insurance coverage. Do not worry, there are “no medical exam” life insurance policies that can cover you.

These policies tend to be more expensive but they are great to use for coverage while you making the climb to a healthy lifestyle.

Let’s get to commonly asked life insurance questions:

“Can’t I just lie about my health to get a better price?”

We highly recommend not lying to your life insurance company because once they find out (which they will) it can void your entire contract.

All of the money that you paid for the policy would be wasted and it would leave your family without this important coverage.

Life insurance companies have each applicant get a medical exam in order to verify all of the information submitted, as well as to determine any underlying medical conditions. Unless of course it is a no medical exam life insurance policy.

The medical exam can be done by a medical professional in the convenience of your own home. It generally takes thirty minutes to complete the exam. Twenty minutes allotted for the verbal questionnaire and ten minutes for the standard and basic sample collections.

The verbal questionnaire is done to get some background on your medical history. Life insurance companies will want to know the name, address and phone number of your primary care doctor so they can contact them for medical records, if needed. Questions range from your personal health history to that of your family’s.

What to Expect on Medical Exams for Life Insurance

It is good to be prepared for a medical exam for life insurance.

In medical exams for life insurance, you will first be asked a series of verbal questions, which typically include some of the ones listed below.

Frequently Asked Questions on Life Insurance Medical Exams

  • Are you routinely taking any medications?
  • Have you had any prior hospitalizations?
  • Do you suffer from any conditions like depression or anxiety?
  • Have you had any major previous procedures?
  • Does your family have a history of heart disease or cancer?

Once the verbal questionnaire is finished, the medical professional will begin the measurement procedures. Starting out with your basic measurements, they will measure your weight and height.

Once the initial measurements have been recorded, the medical professional will take a urine and/or blood sample to screen for several health indicators and conditions. Life insurance companies are looking for conditions such as HIV, AIDS, cholesterol levels, glucose levels, nicotine levels, and proteins.

Even though the sample is taken and the medical test is finished within thirty minutes, it typically takes about 1-3 months for a life insurance policy to be approved and in force. 

For those in need of quick life insurance coverage, there is accelerated underwriting life insurance policies such as guaranteed issue and simplified issue life insurance that can offer affordable life insurance protection in a quick time frame, usually under 2 weeks, and in some cases as quickly as 24 hours.

Can I Fail the Life Insurance Medical Exam?

The medical exam is not made for people to pass or fail. It is done so the life insurance company can determine how high of a risk you are for them to insure. If you are unhealthy you will not fail the exam but your rates will be higher because of it. 

However, if the information submitted on the original application does not match the data collected during the exam then you may be denied coverage or you may have to additional testing done.

Not only will living a healthy lifestyle save you money on your life insurance policy, it will keep you around your family longer. Take the time to make sure you are healthy before you get a quote from a life insurance company.

Article source: https://www.lifeinsure.com/health-affects-life-insurance/

How your health affects your life insurance rates

We are sorry to be the ones to break the news, but you are not going to live forever.

This is one of the many reasons having life insurance is important to you and your family.

You cannot control whether you die or not, but you can have a positive influence on how long you live.  

The average life expectancy of people in the United States is 78 years old and is rising. This is because of how health-conscious the world has become, and also due to improvements in technology and healthcare.

People are beginning to make health-conscious incremental changes to their lifestyles while they are young, in order to better themselves in the future.

Living a healthier lifestyle not only saves your life it saves you a ton of money on life insurance.

What is Considered Healthy to a Life Insurance Company?

Life insurance companies determine rates in a process called underwriting.

Underwriting is the process of calculating the overall risk someone poses to the insurance company having to pay out a claim during the life of their policy.

One of the main factors accounted for in the underwriting process is health.

Before we dive deeper into how different aspects of your health affect your life insurance rates, this infographic briefly explains what this article covers:

What Health Factors are Taken Into Consideration by Life Insurance Companies?

There are a lot of factors taken into consideration when determining someone’s overall health.  Life insurance companies typically take these main factors into account when determining risk:

  • Age
  • Gender
  • Height – Weight ratio
  • Family history
  • Medical history
  • Smoker/non-smoker
  • Lifestyle

How Weight Affects Life Insurance Rates

Yes, how much you weigh plays an important role in your health.  

When it comes to weight and life insurance, a majority of life insurance companies look at BMI, or Body Mass Index, to calculate risk based on average weights based on your height.

The Center for Disease Control reports that more than one-third of Americans are considered obese.

This is an astonishing number but society has taken notice of this and, as a result, many people are changing their diets accordingly. Life insurance companies have taken notice too, they understand the health implications that can arise if someone is considered overweight or obese.

Diabetes, heart problems, and high blood pressure are just a few examples of health problems that can be caused by being overweight. Life insurance rates for obese and overweight people are often higher, and much higher with health complications resulting from their weight.

Some athletes have a higher BMI, and as a result, can be considered overweight or even obese when it comes to this quick weight analysis.

However, for people in fairly good health or better, a medical exam life insurance policy will be best for you anyways, in order to get the cheapest rates.

No medical exam life insurance exists, but this is mostly for people who are in poor health or need insurance very quickly. Much higher rates are associated with this type of life insurance as a result.

How Age Affects Life Insurance Rates 

When you apply for life insurance, insurance companies will attempt to determine your life expectancy – how long you are expected to live, given the information you provided.

Your life expectancy is calculated based on millions of data points that life insurance companies are able to compare.

Age has the greatest effects on the pricing of your policy because as your age increases so does your chances of passing away. Sad, but true.

This is why we recommend getting a life insurance policy while you are still young and in good health. So, what is the best age to purchase life insurance?

The optimal age to purchase life insurance is under 35. This is generally the age when people start a family and will have others depending on their income. Life insurance is best purchased when you are at low risk, and locking in rates at a young age is a great way to get insurance for your family at an affordable rate.

How Gender Affects Life Insurance Rates

Another characteristic that life insurance companies will look at when quoting you a price is your gender. Life insurance companies use statistical models to determine how long someone will be around.

Women live 5 years longer than men on average. As a result, women have lower life insurance premiums, because they can pay longer.

How much more expensive is life insurance for men?

Usually, men will experience 25-40% higher rates than women for life insurance, depending on age.

How Your Profession Affects Life Insurance Rates

Some professions put you at a higher life insurance risk than others. Some jobs that are considered to classify someone as a high risk individual are:

  • Police officers
  • Firefighters
  • Soldiers
  • Race car drivers
  • Astronauts
  • Pilots
  • Many more…

Unless your job is seriously dangerous, your profession probably does not affect your rate as much as you would think. Life insurance companies may add an additional fee to your policy that is subject to change as your position changes.

How Does Lifestyle Affect Life Insurance Rates?

Your occupation is only one portion of how risky your life is on a daily basis. Your lifestyle also helps determine your life insurance premiums.

Do you sit on the beach and read a book for fun? Or, are you an adrenaline junky who races speedboats, goes hang gliding, cliff dives, and goes mountain climbing?

The more dangerous of a lifestyle, the greater the opportunity for something to go wrong. Life insurance companies can see this as a liability which, in turn, would raise your premiums. If you do live life on the edge, there is a much greater benefit for having a life insurance policy.

How Your Driving Record Affects Your Life Insurance Rates

This may come as a surprise but your driving record is also taken into consideration when getting a quote for a life insurance policy. The average person spends 293 hours a year in a vehicle. That is 12 full days!

The road can be a dangerous place and the longer you are on the road, the higher the chance you have of getting into an accident. It’s just math.

Life insurance companies can access your driving record and see your past offenses of violated traffic laws. The last 3 to 5 years are weighted the heaviest, so it may be beneficial to keep a clean slate before you purchase a life insurance policy.

How Does Smoking Affect Your Life Insurance Rates?

Perhaps the factor that impacts life insurance rates the most, other than being terminally ill, is smoking. Smoking is a huge red flag in the life insurance industry because of the negative effects it has on your body.

Life insurance rates for smokers are often 2-5 times higher than for non-smokers.

Smoking can take years off of your lives. It is the leading cause of lung cancer and is responsible for 480,000 deaths per year. The average smoker in the United States dies 10 years earlier than the average nonsmoker.

Life insurance companies see how great a risk smoking is on your life, so they pass that risk along to you through your rates. Luckily for you, smoking is a habit that can be kicked. 

Smokers who quit can get their rates back down to only about 10-20% more expensive than non-smokers within the first year of quitting (barring any other health condition).

Those who have a policy and plan on quitting can also get reduced rates by re-taking your medical exam to get a reclassification for your medical risk. This also helps to reduce rates, though not every policy offers this.

Frequently Asked Questions About How Health Affects Life Insurance

As we stated earlier, the best time to  purchase life insurance is while you are young and in good health. Your personal health has an enormous effect on the rate of your policy because it directly correlates with how long you will live. It’s simple, the healthier you are the longer you will live.

Life insurance companies want to insure healthy people who are at a low risk of passing away early. 

Maybe you are not in the best shape of your life right now but you still need life insurance coverage. Do not worry, there are “no medical exam” life insurance policies that can cover you.

These policies tend to be more expensive but they are great to use for coverage while you making the climb to a healthy lifestyle.

Let’s get to commonly asked life insurance questions:

“Can’t I just lie about my health to get a better price?”

We highly recommend not lying to your life insurance company because once they find out (which they will) it can void your entire contract.

All of the money that you paid for the policy would be wasted and it would leave your family without this important coverage.

Life insurance companies have each applicant get a medical exam in order to verify all of the information submitted, as well as to determine any underlying medical conditions. Unless of course it is a no medical exam life insurance policy.

The medical exam can be done by a medical professional in the convenience of your own home. It generally takes thirty minutes to complete the exam. Twenty minutes allotted for the verbal questionnaire and ten minutes for the standard and basic sample collections.

The verbal questionnaire is done to get some background on your medical history. Life insurance companies will want to know the name, address and phone number of your primary care doctor so they can contact them for medical records, if needed. Questions range from your personal health history to that of your family’s.

What to Expect on Medical Exams for Life Insurance

It is good to be prepared for a medical exam for life insurance.

In medical exams for life insurance, you will first be asked a series of verbal questions, which typically include some of the ones listed below.

Frequently Asked Questions on Life Insurance Medical Exams

  • Are you routinely taking any medications?
  • Have you had any prior hospitalizations?
  • Do you suffer from any conditions like depression or anxiety?
  • Have you had any major previous procedures?
  • Does your family have a history of heart disease or cancer?

Once the verbal questionnaire is finished, the medical professional will begin the measurement procedures. Starting out with your basic measurements, they will measure your weight and height.

Once the initial measurements have been recorded, the medical professional will take a urine and/or blood sample to screen for several health indicators and conditions. Life insurance companies are looking for conditions such as HIV, AIDS, cholesterol levels, glucose levels, nicotine levels, and proteins.

Even though the sample is taken and the medical test is finished within thirty minutes, it typically takes about 1-3 months for a life insurance policy to be approved and in force. 

For those in need of quick life insurance coverage, there is accelerated underwriting life insurance policies such as guaranteed issue and simplified issue life insurance that can offer affordable life insurance protection in a quick time frame, usually under 2 weeks, and in some cases as quickly as 24 hours.

Can I Fail the Life Insurance Medical Exam?

The medical exam is not made for people to pass or fail. It is done so the life insurance company can determine how high of a risk you are for them to insure. If you are unhealthy you will not fail the exam but your rates will be higher because of it. 

However, if the information submitted on the original application does not match the data collected during the exam then you may be denied coverage or you may have to additional testing done.

Not only will living a healthy lifestyle save you money on your life insurance policy, it will keep you around your family longer. Take the time to make sure you are healthy before you get a quote from a life insurance company.

Article source: https://www.lifeinsure.com/health-affects-life-insurance/

Why You May Need Life Insurance After Retirement

You have worked almost your whole life and you are finally creeping up on retirement. You can practically smell the ocean and feel the sand in between your toes. But before you start celebrating all your hard work, you will want to make sure you have a plan for your retirement. Does this plan include owning life insurance after retirement?

Retiring is a great accomplishment and should be an enjoyable experience. That is why you need to plan out your retirement so there are no surprises.

Do you have people depending on your income?

Are you retiring with debt?

Will you still be working part-time through your retirement?

If you answered yes to any of these questions then we recommend purchasing a life insurance policy.

Now you may say, “I had life insurance through my work for all of these years, what happened to that?”

Does Your Work Cover Life Insurance Once You Are Retired?

Depending on your company’s coverage, the policy may terminate once you are finished working. In some cases, the coverage will extend for a period of time but slowly diminish.

Each situation is different so we advise you to speak with your employer about your benefits and how they coordinate with your retirement planning.

If you planned ahead and purchased an additional life insurance policy on top of the plan your employer offered to prepare for this situation, then you will still be covered by that policy.

If your policy does terminate once you retire and leave the company, then purchasing a life insurance policy may be on the to-do list before you retire.

How Much Does Life Insurance Cost for Retirees?

Life insurance company’s create the pricing for your policy based on how high of a risk they see your life.

They analyze your age, health, profession, lifestyle, and even your driving record. Each of these factors contributes to your lifespan.

Life insurance companies will want to know what type of lifestyle you live. If you live life on the edge it will cost more for them to insure you.

They will want to know about your health and medical history as diseases are a major cause of death.

However, the most heavily weighted factor besides health is your age. No one can live forever and the older you get the greater the chance of you dying becomes.

For this reason, it is typically cheaper to get a life insurance policy while you are young and in good health. Some experts recommend getting life insurance by the age of 35.

This is when most people start a family and have people depending on their income. For many individuals, retirement is a major goal, but is so far down the road most people don’t properly prepare for it.

For most Americans, retirement comes between the ages of 60 to 65. With the average life expectancy of 78, you can assume how expensive it will be to get life insurance coverage.

Although it is not cost effective to wait until retirement to purchase a life insurance policy, it can still be done.

Is Life Insurance for Seniors Worth the Cost?

If you retire debt free and are capable of living off your savings, you may not have a need for life insurance.

However, if you retire but still have debt, a part-time job, and people depending on your income, life insurance is a must.

Most people have been dreaming of drinking pina coladas on the beach after retirement since they were 30.

Although this does sound amazing, sitting on the beach everyday drinking can get boring after a while. This is why almost 30% of retirees work part-time.

If you are working part-time to do a job you have always been curious about then you may not need life insurance.

But if you are working part-time because you have people depending on your paycheck, then you should purchase a life insurance policy.

If you pass away and the checks stop coming in how would your family make ends meet? Life insurance covers you in these situations so you do not have to lose sleep.

Do I Need Life Insurance if I Have A Pension?

People in some professions are lucky enough to get a pension once they retire. This provides families with a portion of their annual salary for years to come.

A pension can be collected in one lump sum or an income option. Receiving your pension in one lump sum gives you all of the money up front once you retire.

This can be beneficial if you do not need the money right away so you can roll it into an IRA without paying taxes.

The income option offered to pension holders stretches these payments over a period of time to keep cash flow.

You pay taxes on every monthly check you get but this option is more common because it is more secure.

Pensions are an incredible benefit offered by companies to help make retirement easier for those who have worked hard.

However, if you retire with your pension and your receiving payment annually your spouse or beneficiaries may only be entitled to a portion of the payment if you die.

Life insurance can be a good backup to replace this shortage of income just to be safe. That is why you want to identify all of the people depending on your income.

Reasons Why Retirees Need Life Insurance

Providing Financial Security for Your Family

Every family’s situation is different. Some parents retire with their children still living at home while others help out their children financially after they move out.

A common theme among parents is to cosign a big purchase. These can range anywhere from a new car, a house, or even student loans.

This gesture helps get their children approved for such actions but also puts their own well-being at risk. You will want to ensure that your child is more than capable of paying off such debts so they default on them if you pass away.

A life insurance policy helps cover this type of situation. Providing the funds that can cover these types of payments, so your children do not have to stress over these situations.

A life insurance policy will help loved ones get through a tough time because they will be better off financially.

If you still have children living at home who depend on your income it is important to have a plan in place if something were to happen.

The last thing you want in a time of grieving is a financial problem for your loved ones. Life insurance is all about keeping your loved ones protected once you can no longer protect them.

Covering the Costs of Remaining Debts

Being in debt is another major reason to purchase a life insurance policy. Retiring without having your mortgage paid off is more common than you think.

A lot of people like to settle down somewhere nice when they retire which usually involves purchasing a new home. This is why more than one in three homeowners over the age of 65 are still making mortgage payments.

Paying off your mortgage before you retire should be taken very seriously. This is typically the largest purchases someone makes in their lifetime.

Still having to pay this off without having a steady income can be a terrible blow to your retirement savings.

We strongly advise speaking with a financial adviser to develop a plan to get your finances in order before you retire.

You need to keep in mind how your family would pay off such debts if you were to pass away. Leaving a burden like a mortgage payment is not something you should leave behind for your loved ones to deal with.

A life insurance policy can provide your loved ones with the funds they need to eliminate this payment.

Helping Your Family Handle Your Estate

From funeral arrangements to estate and inheritance taxes, life insurance is a great way to make sure that those you leave behind have enough to handle the costs of your passing.

Estate planning needs to be meticulous, as it hasan exorbitant amount of loopholes and guidelines to adhere to.  When it comes to estate planning, we highly recommend speaking with a professional.

Funerals can cost anywhere from $10,000 to $20,000, and if you leave no liquid assets behind, your family might have to go through the hassle of sorting through and selling your non-liquid assets (property, stocks, jewelry etc.) which can put a lot of unnecessary strain on your already grieving loved ones.

No matter what, it’s a good idea to take a serious look at your expenses before canceling a policy. If you do cancel and then discover that it’s still in your best interest to have a life insurance policy, you most probably won’t be able to recover your policy at your previous rate.

Consult a life insurance professional at Intramark today to find out if a post-retirement policy is right for you. You can also get started with an instant life insurance quote today.

What Types of Life Insurance Are Best for Retirees?

To go into depth about the best types of life insurance for retirees would take very long, and not really fit in very well with the theme of this article.

However, to help you get started on your research, the table below shows some popular life insurance policies among seniors, some benefits they have, and what companies are the best providers for those policies.

 

Policy
Description
Our Favorite Companies

Term Life Insurance
Generally speaking, term life insurance becomes more expensive as you get older. Terms are usually available for 10-30 years in 5 year increments, but most life insurance providers only offer term life coverage through age 75. A few providers (like Mutual of Omaha) offer term life insurance coverage through age 85, and even 95.

  • American General
  • Banner Life
  • Lincoln Financial
  • Mutual of Omaha
  • Principal
  • Prudential

Permanent Life Insurance
Permanent life insurance offers permanent life coverage (until you die, or reach age 100 or 122 in most cases, depending on the company). These policies can be broken down into many subtypes that each offer cash value accumulation, investment components, and varying types of premiums.

  • American General
  • Guardian Life
  • John Hancock
  • Lincoln Financial
  • Pacific Life
  • Prudential

Guaranteed Issue Life Insurance
This type of life insurance is best for people who need life insurance quickly, or who are otherwise uninsurable because they are a very high risk. This type of insurance usually has limited coverage ($5,000 – $25,000, with some companies going as high as $100,000). No medical exam and no health questions are required, everyone qualifies for coverage.

  • AIG
  • Gerber Life

Simplified Issue Life Insurance
This type of life insurance is a step up from guaranteed issue. It is also a type of no medical exam life insurance policy, but there are some health-related questions asked to assess risk and make sure the applicant is insurable. This coverage is also usually limited to the same amounts as guaranteed issue, and the waiting time for approval can be a bit longer. Naturally, simplified issue life insurance rates for seniors are more affordable than guaranteed issue.

  • Assurity
  • Fidelity Life
  • Foresters
  • Mutual of Omaha
  • Phoenix

Joint Life Insurance
This type of life insurance policy covers both spouses with the same coverage under one policy, for one monthly premium. Both term and whole life policies are available. There is second to die life insurance which provides a death benefit upon the death of the second spouse, and first to die life insurance which provides a death benefit upon the death of the first spouse.

  • American General
  • John Hancock
  • Lincoln Life
  • Principal Life
  • Prudential

Final Expense Insurance
Fional expense insurance is meant to cover the immediate costs after your death such as funeral expenses and remaining debts. This can come in the form of guaranteed or simplified issue life insurance, which are both often called burial insurance. These policies have no medical exam and usually go up to $50,000 in coverage, with some companies offering even more burial insurance coverage for seniors.

  • AIG
  • Foresters
  • Gerber Life
  • Mutual of Omaha
  • Phoenix Life
  • Transamerica

Feel free to follow any of the links in the chart to learn more about the various types of life insurance for retirees, and the life insurance companies we have listed.

Finding the Best Life Insurance Rates for Retirees

When it comes to answering the question , Do I need life insurance now that I am retired?, you want to take the time to consider a number of factors such, as who is dependent on your income, and what type of debts you have remaining.

Due to the large investment that life insurance is, and the amount of options on the market, you want to be sure that the life insurance policy you choose is the best for you and your family.

The easiest way to ensure that you are choosing the best life insurance coverage as a retiree is to speak with an independent life insurance agent who can compare rates and policies from dozens of companies at once.

Our agents work with each client directly to identify their specific needs and help them find a policy which best suits them.  Give us a call today, or get instant life insurance quotes for retirees by using our online quoting engine!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/life-insurance-after-retirement/

Why You May Need Life Insurance After Retirement

You have worked almost your whole life and you are finally creeping up on retirement. You can practically smell the ocean and feel the sand in between your toes. But before you start celebrating all your hard work, you will want to make sure you have a plan for your retirement. Does this plan include owning life insurance after retirement?

Retiring is a great accomplishment and should be an enjoyable experience. That is why you need to plan out your retirement so there are no surprises.

Do you have people depending on your income?

Are you retiring with debt?

Will you still be working part-time through your retirement?

If you answered yes to any of these questions then we recommend purchasing a life insurance policy.

Now you may say, “I had life insurance through my work for all of these years, what happened to that?”

Does Your Work Cover Life Insurance Once You Are Retired?

Depending on your company’s coverage, the policy may terminate once you are finished working. In some cases, the coverage will extend for a period of time but slowly diminish.

Each situation is different so we advise you to speak with your employer about your benefits and how they coordinate with your retirement planning.

If you planned ahead and purchased an additional life insurance policy on top of the plan your employer offered to prepare for this situation, then you will still be covered by that policy.

If your policy does terminate once you retire and leave the company, then purchasing a life insurance policy may be on the to-do list before you retire.

How Much Does Life Insurance Cost for Retirees?

Life insurance company’s create the pricing for your policy based on how high of a risk they see your life.

They analyze your age, health, profession, lifestyle, and even your driving record. Each of these factors contributes to your lifespan.

Life insurance companies will want to know what type of lifestyle you live. If you live life on the edge it will cost more for them to insure you.

They will want to know about your health and medical history as diseases are a major cause of death.

However, the most heavily weighted factor besides health is your age. No one can live forever and the older you get the greater the chance of you dying becomes.

For this reason, it is typically cheaper to get a life insurance policy while you are young and in good health. Some experts recommend getting life insurance by the age of 35.

This is when most people start a family and have people depending on their income. For many individuals, retirement is a major goal, but is so far down the road most people don’t properly prepare for it.

For most Americans, retirement comes between the ages of 60 to 65. With the average life expectancy of 78, you can assume how expensive it will be to get life insurance coverage.

Although it is not cost effective to wait until retirement to purchase a life insurance policy, it can still be done.

Is Life Insurance for Seniors Worth the Cost?

If you retire debt free and are capable of living off your savings, you may not have a need for life insurance.

However, if you retire but still have debt, a part-time job, and people depending on your income, life insurance is a must.

Most people have been dreaming of drinking pina coladas on the beach after retirement since they were 30.

Although this does sound amazing, sitting on the beach everyday drinking can get boring after a while. This is why almost 30% of retirees work part-time.

If you are working part-time to do a job you have always been curious about then you may not need life insurance.

But if you are working part-time because you have people depending on your paycheck, then you should purchase a life insurance policy.

If you pass away and the checks stop coming in how would your family make ends meet? Life insurance covers you in these situations so you do not have to lose sleep.

Do I Need Life Insurance if I Have A Pension?

People in some professions are lucky enough to get a pension once they retire. This provides families with a portion of their annual salary for years to come.

A pension can be collected in one lump sum or an income option. Receiving your pension in one lump sum gives you all of the money up front once you retire.

This can be beneficial if you do not need the money right away so you can roll it into an IRA without paying taxes.

The income option offered to pension holders stretches these payments over a period of time to keep cash flow.

You pay taxes on every monthly check you get but this option is more common because it is more secure.

Pensions are an incredible benefit offered by companies to help make retirement easier for those who have worked hard.

However, if you retire with your pension and your receiving payment annually your spouse or beneficiaries may only be entitled to a portion of the payment if you die.

Life insurance can be a good backup to replace this shortage of income just to be safe. That is why you want to identify all of the people depending on your income.

Reasons Why Retirees Need Life Insurance

Providing Financial Security for Your Family

Every family’s situation is different. Some parents retire with their children still living at home while others help out their children financially after they move out.

A common theme among parents is to cosign a big purchase. These can range anywhere from a new car, a house, or even student loans.

This gesture helps get their children approved for such actions but also puts their own well-being at risk. You will want to ensure that your child is more than capable of paying off such debts so they default on them if you pass away.

A life insurance policy helps cover this type of situation. Providing the funds that can cover these types of payments, so your children do not have to stress over these situations.

A life insurance policy will help loved ones get through a tough time because they will be better off financially.

If you still have children living at home who depend on your income it is important to have a plan in place if something were to happen.

The last thing you want in a time of grieving is a financial problem for your loved ones. Life insurance is all about keeping your loved ones protected once you can no longer protect them.

Covering the Costs of Remaining Debts

Being in debt is another major reason to purchase a life insurance policy. Retiring without having your mortgage paid off is more common than you think.

A lot of people like to settle down somewhere nice when they retire which usually involves purchasing a new home. This is why more than one in three homeowners over the age of 65 are still making mortgage payments.

Paying off your mortgage before you retire should be taken very seriously. This is typically the largest purchases someone makes in their lifetime.

Still having to pay this off without having a steady income can be a terrible blow to your retirement savings.

We strongly advise speaking with a financial adviser to develop a plan to get your finances in order before you retire.

You need to keep in mind how your family would pay off such debts if you were to pass away. Leaving a burden like a mortgage payment is not something you should leave behind for your loved ones to deal with.

A life insurance policy can provide your loved ones with the funds they need to eliminate this payment.

Helping Your Family Handle Your Estate

From funeral arrangements to estate and inheritance taxes, life insurance is a great way to make sure that those you leave behind have enough to handle the costs of your passing.

Estate planning needs to be meticulous, as it hasan exorbitant amount of loopholes and guidelines to adhere to.  When it comes to estate planning, we highly recommend speaking with a professional.

Funerals can cost anywhere from $10,000 to $20,000, and if you leave no liquid assets behind, your family might have to go through the hassle of sorting through and selling your non-liquid assets (property, stocks, jewelry etc.) which can put a lot of unnecessary strain on your already grieving loved ones.

No matter what, it’s a good idea to take a serious look at your expenses before canceling a policy. If you do cancel and then discover that it’s still in your best interest to have a life insurance policy, you most probably won’t be able to recover your policy at your previous rate.

Consult a life insurance professional at Intramark today to find out if a post-retirement policy is right for you. You can also get started with an instant life insurance quote today.

What Types of Life Insurance Are Best for Retirees?

To go into depth about the best types of life insurance for retirees would take very long, and not really fit in very well with the theme of this article.

However, to help you get started on your research, the table below shows some popular life insurance policies among seniors, some benefits they have, and what companies are the best providers for those policies.

 

Policy
Description
Our Favorite Companies

Term Life Insurance
Generally speaking, term life insurance becomes more expensive as you get older. Terms are usually available for 10-30 years in 5 year increments, but most life insurance providers only offer term life coverage through age 75. A few providers (like Mutual of Omaha) offer term life insurance coverage through age 85, and even 95.

  • American General
  • Banner Life
  • Lincoln Financial
  • Mutual of Omaha
  • Principal
  • Prudential

Permanent Life Insurance
Permanent life insurance offers permanent life coverage (until you die, or reach age 100 or 122 in most cases, depending on the company). These policies can be broken down into many subtypes that each offer cash value accumulation, investment components, and varying types of premiums.

  • American General
  • Guardian Life
  • John Hancock
  • Lincoln Financial
  • Pacific Life
  • Prudential

Guaranteed Issue Life Insurance
This type of life insurance is best for people who need life insurance quickly, or who are otherwise uninsurable because they are a very high risk. This type of insurance usually has limited coverage ($5,000 – $25,000, with some companies going as high as $100,000). No medical exam and no health questions are required, everyone qualifies for coverage.

  • AIG
  • Gerber Life

Simplified Issue Life Insurance
This type of life insurance is a step up from guaranteed issue. It is also a type of no medical exam life insurance policy, but there are some health-related questions asked to assess risk and make sure the applicant is insurable. This coverage is also usually limited to the same amounts as guaranteed issue, and the waiting time for approval can be a bit longer. Naturally, simplified issue life insurance rates for seniors are more affordable than guaranteed issue.

  • Assurity
  • Fidelity Life
  • Foresters
  • Mutual of Omaha
  • Phoenix

Joint Life Insurance
This type of life insurance policy covers both spouses with the same coverage under one policy, for one monthly premium. Both term and whole life policies are available. There is second to die life insurance which provides a death benefit upon the death of the second spouse, and first to die life insurance which provides a death benefit upon the death of the first spouse.

  • American General
  • John Hancock
  • Lincoln Life
  • Principal Life
  • Prudential

Final Expense Insurance
Fional expense insurance is meant to cover the immediate costs after your death such as funeral expenses and remaining debts. This can come in the form of guaranteed or simplified issue life insurance, which are both often called burial insurance. These policies have no medical exam and usually go up to $50,000 in coverage, with some companies offering even more burial insurance coverage for seniors.

  • AIG
  • Foresters
  • Gerber Life
  • Mutual of Omaha
  • Phoenix Life
  • Transamerica

Feel free to follow any of the links in the chart to learn more about the various types of life insurance for retirees, and the life insurance companies we have listed.

Finding the Best Life Insurance Rates for Retirees

When it comes to answering the question , Do I need life insurance now that I am retired?, you want to take the time to consider a number of factors such, as who is dependent on your income, and what type of debts you have remaining.

Due to the large investment that life insurance is, and the amount of options on the market, you want to be sure that the life insurance policy you choose is the best for you and your family.

The easiest way to ensure that you are choosing the best life insurance coverage as a retiree is to speak with an independent life insurance agent who can compare rates and policies from dozens of companies at once.

Our agents work with each client directly to identify their specific needs and help them find a policy which best suits them.  Give us a call today, or get instant life insurance quotes for retirees by using our online quoting engine!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/life-insurance-after-retirement/

What to Do When Your Term Life Insurance Policy Runs Out

“All good things must come to an end.”

Fortunately, this doesn’t apply to modern day term life insurance policies!

While some analysts suggest that you won’t need insurance after a 20-year term. They may try to convince you that your children will be grown and you will have accumulated enough savings in cash and investment to support your spouse if you die prematurely.

Yes, in theory, it sounds like quite the plan. But it is important to understand that only a few people will have such a defined, and hassle-free life path.

What is term life insurance?

If you already have term life insurance, skip this brief section.

Term life insurance is life insurance that lasts for – you guessed it – a term.

This term can be 10 to 30 years, and they are usually offered in 5 year increments.

Term life insurance offers affordable life insurance coverage for people who need it.

But there is one problem with term life insurance: it expires!

What Happens When My Term Life Insurance Policy Runs Out?

Alright, let’s answer the big question.

When people buy term life insurance, they rarely give much thought to what would happen when their term runs out.

What Does Expiration in Term Life Insurance Mean?

Expiration in Term Life Insurance is a little different from the conventional meaning of “expiration”.

When your policy reaches the end of its term, your policy won’t just end.

This is where it gets interesting.

If you look into the details of your policy, there is a table that shows the cost on a year to year basis. This table that shows the yearly cost is usually called a rate or premium illustration.

For example, if you purchased a 20-year policy, you will notice a relatively higher price increase on the 21st year after your 20-year term has expired. The cost after the 20th year will continue to increase significantly, year after year.

WARNING:

Term life insurance does not “expire” once your term is through.  Instead, premiums go up drastically on a yearly basis until you either cancel the policy or open a new policy.

Now, you can put a stop to this if you no longer want the policy beyond the low-cost guarantee period.

What Should I do to Convert or Cancel My Policy?

You can contact the insurance company that you want to cancel the policy at the end of the term. If you wait to see it out, you will continue to get debited without warning.

Some people switch to paper check payments after the expiration of their policy to avoid the risk of getting their checking accounts debited.

One thing to note is that your policy is not actually expiring. Most policies will cover you until you the age of 95.

Your rate will only continue to increase rapidly at the end of each term (year, quarterly, or biannually or monthly), often to a point where the coverage is no longer worth the premium you will dole out.

The Relationship Between Term Life Insurance, Increasing Premiums, ART

First and foremost, let’s get this out of the way -Every year you live makes you a little more of an insurance risk to insurance providers.

When you buy an annual renewable term policy, your premiums will rise annually.

This kind of policy is known as an Annual renewable term (ART).

ART premiums might look like this for the first few years:

  • The 1st year might be $340
  • $465 in the 2nd year
  • $475 in the 3rd year

Ten years down the line, your premium may climb to $650 per month for coverage! This simple example illustrates why people tend to shy away from Annual Renewable Term.

Because of the low demand for ART, Many Insurance providers offer level term Insurance policy. They can cover you until age 95 but at a fixed premium rate for 10, 15, 20, or 30 years

Calculating Level Term Premium – It’s a Simple Average

To determine your level premium, life insurance providers add up the payments for each year in the 20-year term and divide it by 20.

In most cases, 20-year level term life insurance is the average premium for the first 20 years of coverage.

From the 21st year and above, it reverts to an annual renewable policy (ART).

What to Do When Your Term Life Insurance Policy Expires?

1. Shop for a New Term Life Insurance Policy

If your state of health is rock solid or relatively good enough, it is time to shop for a new level term insurance. Yes, you will have to pass a medical exam in most cases and pay the standard amount for an individual within your age range. You may not need as large a policy as the first one you purchased when you were much younger. This means the price will not be overwhelming.

Hold on to your wallet and look for another insurer who may be offering something cheaper. If you’re shopping around for rates for a new policy, be sure to consider one with Low Renewal Premiums!

A good source for doing your comparison analysis shop is our online term life insurance quote tool.  You can find this at the bottom of this post on mobile, or on the right for desktop.

2. Converting Term Policy to Permanent Insurance

If you have a poor health condition, much older (usually and do not want to undergo any form of medical examination, you can convert your existing term policy to permanent insurance.

Your insurance company will offer you different conversion policies to choose from. Converting to permanent insurance plus your health state means you will pay much more than when you were paying for term life insurance (Depending on your insurer, it is usually about 2-3 times the cost of your current premium).

The good part is you can control the cost by purchasing a smaller policy. This is a good fit, since you are older and don’t need many years of coverages as you once did.

Time is of the essence. You must convert within the period the term policy allows you to. Some insurance providers keep the conversion window open for only 10 years if you had purchased a 20-year policy.

It is also important not to convert too early. Always stay updated on the details of your policy and check with your agent to be sure you are getting the best coverage at the time.

3. Renewing or Extending Your Expired Term Life Insurance

If you are in a poor state of health and happened to miss the deadline for converting to permanent insurance, there is still an option for you – a rather costlier option.

You can renew your about-to-expire coverage without undergoing a medical examination. You will only have to pay much higher premiums and they will keep increasing geometrically, year after year.

This option is decent enough if you only need a few years, over 70, or have medical conditions that make it hard to get a new policy.

You probably won’t be able to sustain the cost of the policy for very long.

Think about future coverage well enough before the expiration of your term. If you think you won’t be able to pass a medical examination, you can convert your term policy to cash-value coverage while you still can.

Can I still get coverage with a health issue? 

Yes, no medical exam life insurance is recommended for people who are older, or who have a medical condition.

4. Decrease Your Death Benefit

Many insurance providers will allow a one-time decrease in face value to your life term policy. The result is a noticeable reduction in your premiums.

5. Sell Your Policy

If your policy is still convertible, you may be able to convert the policy and then sell it.  It’s called a life settlement. It is important to identify when selling your life term policy is a viable option and when you might be getting shortchanged.

Before you jump into a life insurance settlement deal, you will have to come to terms with the fact that a third party will own insurance on your life and profit from it when you die (no benefits for your family after death).

Also, some individuals are better candidates for a life insurance settlement than others. For example; Having a term life insurance policy or a universal life policy with a face value over of over $200,000 makes your policy more attractive to investors. You are more likely going to receive a worthy offer.

Can You Sell Your Term Life Policy?

Yes, you can sell your Term Life Policy.

A life insurance settlement involves the assured and another entity (usually an investor). The buyer or investor becomes the owner of the policy, settles the premium payments and will receive the death benefits in the event of death.

A life insurance settlement (also known as a viatical settlement) allows you to receive more money than you would have received from the insurer if you canceled or forfeited the policy but less than the coverage value/death benefit of the policy.

Selling a life insurance policy is a good way to get immediate cash for retirement, health bills or unforeseen heavy expenses. However, it is not always the easiest or best option to raise quick cash at your point of need.

Finding a buyer for your life settlement involves a bit of documentation.

You can do this on your own or use a life settlement broker to look for prospective offers to purchase your life term policy.

You will be asked to provide medical records and your term life policy documents to the potential investor. The settlement provider(s) will make you an offer after reviewing your files based on a range of factors such as:

  • Your age and health
  • The type of policy you have
  • The cash surrender value (accumulated cash value) of the policy
  • Amount of premiums

If you are much older or in a poor health state, you will receive a better cash offer as the face value of your policy is worth more to investors or settlement companies as they are going to sense an avenue to make some profit.

What Happens When My Term Life Insurance Runs Out – Takeaways

Even though your term period has “expired”, your policy may still have value to you. If you find that you still need life insurance protection at this point, you do have options for extending your term life insurance policy, converting or renewing, selling the coverage.

It is important to stay informed as making the wrong decision can cost you a fortune. Give us a call today, and we can review your policy and go over your options with you.

Or, use our term life insurance quote tool to compare some of the best term life insurance rates for a new policy!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/happens-term-life-insurance-policy-ends/

Affordable Life Insurance is Possible

Is affordable life insurance possible?  According to the 2017 Insurance Barometer, an annual report published by LIMRA (Life Insurance and market research association), there are only three reasons consistently reported by more than two-thirds of respondents each year regarding why people don’t buy life insurance:

  1. It’s too expensive.
  2. I have other financial priorities.
  3. I have as much as I need.

Regarding #1, there are several studies (including the LIMRA annual report), that shows that most people actually overestimate the cost of life insurance.  #3 is debatable in most cases and while many people do have other financial priorities, if you have a family, life insurance should be one of those priorities.  In this article, I’m going to suggest that, perhaps, with a little shuffling of your budget, you will be able to afford a policy.

Reduce your spending on clothing

According to an analysis conducted by the Bureau of Labor Statistics, Americans spend an average of $1,700 a year on clothing and accessories. If you want to bring that number down, but still dress stylishly, we offer the following suggestions:

  • Buy generic basics – You don’t need t-shirts and sweatpants from a luxury designer. Most big-box stores carry these items at an affordable price.
  • Know what you need to buy – We almost always go to the supermarket with a concrete idea of what we need to purchase. You should do the same thing at a clothing store – make a list and try to stick to it.
  • Purchase out-of-season items – Buying a coat in July or a swimsuit in December will usually be cheaper because retailers are eager to move these types of products off the shelves.
  • Use coupons – There are multiple websites dedicated to finding clothing store coupons. Be sure you know where the best discounts are before heading into any store.
  • Visit non-traditional retail outlets – You’re most likely not going to get the best deal at a department store in a mall, but there are plenty of other places you can go to find high-quality clothing. Discount retailers like Marshalls and T.J. Maxx sell name-brand items for a fraction of the suggested price. Additionally
  • Investigate the discount rack – While you won’t find a designer dress in the low-price aisle, you might come across something great for a bargain. Some people attach a stigma to the discount rack, but the reality is that most of the clothes there are only a few seasons old and are still in great condition.
  • Keep an eye out for future sales or special deals – Every so often, a product that you may need will get a temporary price cut that you would be smart to take advantage of. Look for advertisements around the store or in the newspaper to see when these special events happen, especially around the holidays.
  • Purchase clothes online when you can – Some online retailers offer exclusive deals if you’re willing to pay for shipping costs. Though it’s not true 100 percent of the time, buying your shirts, pants and accessories on the internet might help you squeeze a few more dollars out of your clothing budget. If you use sites like eBay, which sometimes allows you to buy far less expensively, remember to check the user testimonials before sending someone your contact information.

Reduce your car expenses

Owning a car enables a person to drive to one’s job, travel on vacation or simply get around while doing errands. Unfortunately, a car can be rather costly, especially when repairs have to be made and gas prices creep up in the summertime.

When it comes to controlling your expenses, however, there are ways to lower the amount of cash you have to dump into your vehicle on a monthly basis.

Today, we’ll look at a few of these strategies and suggest ways of protecting your wallet from car-related costs.

To reduce spending that is associated with your car, you should:

Cut down on short trips – If you’re thinking of heading to the pharmacy or the library, you should see if it’s cheaper to ride public transit or simply walk. By reducing the number of times you drive around within your town, you can save on the fuel you have and keep you from visiting the gas station every other day. Also, the health benefits of walking cannot be overstated.

Maintain inflated tires – One of the easiest ways to improve your gas mileage and, by association, your bank account, is to keep your tires properly inflated with air. Improperly inflated tires create extra drag which may unnecessarily slow down your vehicle and reduce the mileage you get.

Survey the area for cheap gas – Most people opt for the convenience of choosing the nearest station. While this is definitely easier, it’s not a bad idea to keep an eye out for consistently cheap gas. By doing so, you can get more for less if you plan your fill-up visits. You can now get an app for your smart phone that will actually show you where the least expensive gas is in your area.

Avoiding driving during rush hour – Creeping along the highway and sitting in stop-and-go traffic does nothing but drain your gas tank. Many offices offer flexible work environments that give you some leeway as to when you can arrive in the morning. Leaving your house 30 minutes earlier or later can be the difference between a smooth ride to work and gridlock.

Driving the speed limit – When you think about it, driving a few miles per hour over the speed limit really isn’t going to get you to your destination that much earlier. According to Edmunds, driving 60 miles per hour results in 12 percent cost savings over driving 75 mph. In addition to saving gas, you’ll also avoid expensive speeding tickets.

Not moving erratically – Aggressive driving that involves speeding followed by quickly slamming on the brakes puts unnecessary wear and tear on your car and spoils your fuel economy. This type of driving may also increase your likelihood of being involved in an accident.

Saving money on common household expenses

A recent LIMRA study found that over half of Americans cite common expenses “such as energy costs, food, clothing and transportation […] as limits on [their] ability to save for financial goals.”

An affordable life insurance policy should be included in almost everyone’s financial plans, so we offer the following suggestions to help you cut down on common household expenditures:

Bundle services

If you have a landline phone, internet and cable from different providers, you should consider bundling them into one service from one company. Consolidating all of your accounts will not only save you money, it is also more convenient, as you will not have to deal with multiple bills.

Cut back on extras

While you’re thinking about phone, internet and cable, you may want to examine your bills and eliminate unnecessary costs. Do you really need caller ID and call waiting? Could you get rid of premium cable channels? Could you get rid of cable altogether? These expenses quickly add up, and after getting rid of them, you may find that they really weren’t necessary.

Scrutinize other insurance costs

The monthly premiums of auto and homeowner’s/renter’s insurance can take a huge bite out of your wallet. Simply shopping around for a better rate could save you hundreds of dollars over the course of a year. If you can’t find a cheaper policy, ask about discounts that may be offered for families and good students. If you have a car that you don’t drive, consider cancelling the insurance policy for it.

Avoid these money-wasting vices

Most people want to save money, but when thinking about how they’ll cut costs, many only focus on large expenses such as housing and transportation. It is important to remember, however, that items that you spend a few dollars on once or twice a week may make a huge dent in your wallet over the course of a year.

The following money-wasting vices should be avoided in order to keep your budget looking healthy:

Fast food

Not only is it bad for your wallet, it’s bad for your health. Instead of heading to the drive-thru, prepare your meals at home.

Gourmet coffee

A cup of coffee from Starbucks or a similar shop can easily cost $4 or more. If you bought a cup every weekday at this price, you would spend over $1,000 in one year. Making your coffee at home is a simple way to keep consuming your favorite beverage without paying the coffee shop premium. The price of home-brewed coffee is usually around $1 a cup, and depending on the brand that you use, it could be even lower. As an added benefit, you can brew your coffee to fit your taste.

Tobacco

The use of cigarettes, cigars, snuff and other forms of tobacco may be the most expensive and unnecessary habit that a person could have. According to Business Insider, a pack-a-day habit could cost a smoker over $100,000 over his or her lifetime. Tobacco use also increases the risk of heart attack, stroke and oral cancer, which could result in significant medical expenses.

Eliminating these bad habits will not only improve your health, but also free up your budget for a new life insurance policy or increased coverage.

Effectively using coupons

One of the easiest ways to save money on items you buy every day is to use coupons for your purchases. No, you don’t have to engage in any “extreme couponing” to cut back on your expenses, and we offer the following tips and suggestions to help you incorporate coupons into your shopping experiences.

Know where to find coupons

Yes, they’re most commonly found in the weekend edition of your local newspaper, but there are many other places to search for them. Don’t forget to check out online resources, as many manufacturers have coupons on their websites. In addition, keep your receipts from previous purchases, because many of them have coupons attached.

Only purchase products that you use

This is one of the most important rules of using coupons. Buying a bunch of items that you don’t actually want or need will just cost you more money. A significant discount on a dozen cups of yogurt may seem like a good deal, but is it really if no one in your house wants to eat them? You should only cut and use coupons for items that you and your family regularly consume.

Start at one store 

You may be tempted to use coupons at as many stores as possible, but it’s best to start at one. Many retail establishments have unique rules about how they accept and deal with coupons, and it may take you a while to figure it out. Once you are more comfortable using coupons during your shopping trips, then you may want to consider branching out to other locations.

Using coupons will not only keep your wallet in check, it may also open your budget to purchase life insurance or increase your existing coverage.

It seems like every year when temperatures begin to cool, we hear the same discouraging news: Home heating costs are rising. This may not seem important for individuals who live in warm climates year round, but for folks in places that have long winters, this means more money out of their wallets. While you can’t completely eliminate turning on your heater this winter, taking a few simple measures can help you reduce your monthly bill. We detail a few common ideas below:

Adjust the thermostat

Want pay less for heat? Then use less of it. While we’re not suggesting that you sit in your house shivering, counting down the days until spring, making slight adjustments to your thermostat can help save you some cash. During the day and other times when you are not home, set the thermostat to 68 degrees.

If you don’t want the responsibility of adjusting the temperature every day, consider purchasing a smart thermostat. They cost about $50 and can be programmed to turn the temperature down during times when heat is not necessary. According to the Environmental Protection Agency (EPA), by using a smart thermostat, you’ll save around $180 on your annual energy bills.

Don’t let heat escape

Whenever the heat is on, all windows and doors should be closed, including your fireplace’s damper. Due to the fact that warm air rises, an open damper is similar to having a hole in the roof of your house. While heat escapes, cold air will flood in.

Small cracks and hard-to-see spaces are other avenues through which heat can leave your home. To find them, light a candle and hold the flame near windows, door frames and light fixtures. If you see smoke moving in a horizontal direction, this means that you’ve spotted a leak. To fix them, install caulking or weather-stripping material.

Make your home more energy-efficient 

While we generally like to offer suggestions that have minimal up-front costs, it’s possible that basic, inexpensive measures won’t make a significant difference in what you pay for heating. If this is the case, you may want to think about making significant adjustments to your house, including:

  • Adding more or replacing old insulation
  • Purchasing a new furnace or water heater
  • Replacing your windows.

With these heating-related cost-cutters, you could save enough to budget for a new life insurance policy or an increase in your current coverage, an essential piece for financial protection for your loved ones.

Hopefully, some of these suggestions can help you keep more money in your wallet and allow you to budget for that affordable life insurance policy you have been putting off. For a life insurance quote, use our online quote generator to find out which policies you may qualify for.

Article source: https://www.lifeinsure.com/affordable-life-insurance-is-possible/

Term vs Whole Life Insurance

Deciding which type of life insurance product is right for you can be difficult; regardless of whether you’re considering retaining your current policy or you’re shopping for new coverage, it’s important to note that there are benefits to both term life insurance and whole life insurance.

Which is the best fit for your needs, preferences, lifestyle, and family?

Here, we discuss Term Life Insurance vs. Whole Life Insurance. In this article, we will be covering:

Term Life Insurance

  • What is term life insurance?
  • Term life insurance FAQ
  • Who is term life insurance best for?
  • Term life insurance policy riders
  • Term life insurance pros and cons
  • Term life insurance rates

Whole Life Insurance

  • What is whole life insurance?
  • Who is whole life insurance best for?
  • Whole life insurance policy riders
  • Whole life insurance pros and cons
  • Whole life insurance rates

There are some key differences and similarities between these two types of coverage. As for similarities, they both offer a guaranteed death benefit, and they both offer generally federal tax-free benefits. But let’s consider some of the differences between whole life insurance and term life insurance.

How Does Term Life Insurance Work?

Term life insurance is something that you buy into for a specific amount of time. When you apply for term life insurance, you pick the amount of money you want to be paid out to your beneficiaries if you pass away during the length of that term. Then you set up the duration you want the term to last. 

The amount of money that is paid out to your beneficiaries is called the face amount. The length of time that the policy’s death benefit remains in effect is called the term length. Most life insurance companies offer term life coverage in 5-year increments between 10 years and 30 years although there are some companies such as AIG that will let you pick a specific length of time such as 17 years.

Premiums are usually paid on a monthly basis, but there are also options to pay annually, which can save you some money over the course of your policy. Once the term is over, your policy “expires”. I put this in quotations for a reason, check the warning below.

WARNING: Term life insurance does not expire in the traditional sense of the word at the end of your term. Instead, it is converted into what is called an Annual Renewable Term (ART) policy. This policy is renewed automatically every year unless the policy owner cancels it. The rates for ART’s quickly become very high and unaffordable within the first few years.

I take the time to warn you about this because I have heard dozens of horror stories of people not knowing about this process which is clearly defined in the terms of their policy, and by the time they find out, it is too late to change, and they have lost a lot of money on a policy with very little practicality.

When your term life insurance policy has “expired”, many companies will let you convert the policy you have into a whole life insurance policy without having to do the application process all over again or take another medical exam. This option is often offered through what is called a Guaranteed Insurability Rider. 

When is the Best Time to Convert From Term to Whole Life Insurance?

The best time to convert from term to whole life insurance is when your term life insurance policy is about to expire, and you are currently in your 50s or 60s. At this point, you will not be able to take out a longer term policy and given the average lifespan, this is the best time to convert to something permanent.

If you want to extend your current life insurance coverage but the annually-renewable term options are no longer available for you or are simply too expensive because of your current age, it is in your best interest to convert to a whole life insurance policy.

Another reason you want to convert to a whole life insurance policy is that you are setting up an estate and are currently concerned about estate taxes. You might be setting up a trust in your will. You might also need a nontaxable investment option. In all of these cases, a whole life insurance conversion may be the best option for you.

Who is Term Life Insurance Best For?

Term life insurance is best for people who have finite financial needs that they want to cover. People that fit some of the following criteria might be better off with term life coverage:

  • Somebody who has a mortgage and other large outstanding debts
  • Somebody who wants to cover expenses for childcare
  • Someone who wants to help replace income with life insurance in the event of their death
  • People who have financial dependents (spouse, children, etc…)
  • Somebody who wants to leave behind money to help pay for funeral expenses 

Those who have obligations such as alimony or child support can set up term policies to coincide with the length of those responsibilities.

Other people who might not qualify for whole life insurance could benefit from a Term Policy because it will be the only option they have or perhaps the more affordable option.

On that note, people who simply cannot afford a permanent policy at this time can easily take out a much more affordable term life insurance policy and convert it at a time when their financial situation is different.

Term Life Insurance Policy Riders

Below is a list of some of the common term life insurance policy riders that we recommend people purchase, based on their individual needs. While there are certainly more riders available depending on the company and policy you choose, these are generally offered by most life insurance companies, and provide the most value to the policyholder.

Each of these policy riders has their own costs associated with them that are added to the monthly premium you will pay for your term life policy.  Some are expensive, while others are cheaper, and some are even offered as complimentary with certain term life policies from certain companies.

1. Guaranteed Insurability Rider 

As described above, this rider allows you to convert a term life insurance policy into a whole life insurance policy without having to retake a medical examination, which could put you in a lower health class, and cost you more in monthly premiums.

2. Return of Premium Rider

This return of premium policy rider allows policyholders who outlive the term of their life insurance policies to receive all of the premiums they have paid into their policy back at the end of the term.

This is one of the more expensive term life insurance policy riders.  In some cases, companies offer it as an individual type of term life policy instead.

3. Accidental Death Rider

The Accidental Death Rider allows your beneficiaries to receive a multiple of your death benefit if you die as a result of an accident (as defined by your policy). This rider is also available on whole life insurance policies.

4. Waiver of Premium Rider 

The waiver of premium rider makes it so that you do not have to pay your life insurance premium in the event that you are unable to return to work full time as a result of injury or sickness. This rider is also offered on whole life insurance policies.

5. Disability Income Rider

This rider pays out a supplemental income that is proportional to your policy face amount in the event that you are permanently disabled and unable to return to work. This rider is also offered on whole life insurance policies.

6. Children’s Term Rider

This rider allows you to add life insurance for a child from age 15 days to 18-25 years (depending on the company).

Term Life Insurance Rates 

The following table shows term life insurance rates for people in the preferred plus health category, with no health issues.

Note that as you get older, certain term options are no longer available. This shows the need for some people who are looking for life insurance coverage that lasts their whole life to look towards permanent life insurance options as they get older.

Pros and Cons of Term Life Insurance

Pros:

  • Term life insurance rates are far cheaper than whole life insurance policies
  • Term policies can be chosen very strategically to last a specific period of time, such as how long you have left on a mortgage payment, or how long until your children are no longer financial dependents
  • Term policies can be purchased together in order to have tapered coverage for later in life as your need for life insurance decreases, in a process called layering term life insurance
  • Policies can be converted into whole life with the same health classification as when you first purchased them (with Guaranteed Insurability Rider)

Cons:

  • As the name suggests, term life insurance policies are temporary which means that if you outlive it you will have to purchase a new policy. At this point, you will be older and possibly less healthy which means that you will end up paying higher premiums.
  • Unless you specifically purchase a policy with a Return of Premium Rider you will lose all the money that you invest in your policy

How Does Whole Life Insurance Work?

Whole life insurance is a form of permanent life insurance.  This type of life insurance coverage lasts for your entire life. 

Part of the money you pay in your premiums get invested and depending on how well those Investments perform, you accumulate cash value in the policy.

This cash value can be borrowed against on a tax-free basis throughout the life of your policy, which can be a strong financial tool.

There are many types of permanent life insurance, including, but not limited to some of the following:

  • Variable Universal Life Insurance
  • Indexed Universal Life Insurance
  • Universal Life Insurance
  • Guaranteed Issue Life Insurance

What separates the various types of permanent life insurance policies apart is how the cash value is accumulated.

Whole life insurance policies have a guaranteed rate of return, which varies based on company and policy.  This makes whole life insurance one of the easiest and safest investment tools for people interested in purchasing permanent life insurance because even in bad years for the market, they will still gain the same amount of return (or more if the company pays dividends to its policyholders).

For people with more advanced financial knowledge, who want to have more influence in the way that their policy accumulates cash value, we recommend a different type of permanent policy such as variable or universal life.

Who is Whole Life Insurance Best For?

Whole life insurance coverage is best for people who:

  • Need permanent coverage
  • Want to use their insurance policy as a financial and investment tool
  • Want to cover estate taxes or inheritance issues

For example, a whole life insurance policy may work best for someone who has three children and one of them will inherit the family business while the other will receive a house, the third could receive a life insurance policy, so that everyone inherits something in the event of your death.

Whole Life Insurance Policy Riders

Below is a list of some of the common whole life insurance policy riders that we recommend people purchase based on their individual needs. While there are certainly more riders available depending on the company and policy you choose, these are generally offered by most life insurance companies, and provide the most value to the policyholder.

Each of these policy riders has their own associated costs that are added to the monthly premium you will pay for your term life policy.  Some are expensive, while others are cheaper, and some are even offered as complimentary with certain whole life policies from certain companies.

Additional whole life insurance riders include accidental death and waiver of premium, which were listed above with the term life policy insurance riders.

1. Term Insurance Rider

This policy rider is exclusive to permanent life insurance policies. It allows you to purchase additional term life insurance coverage in order to supplement your existing whole life coverage. This can be an affordable way to add additional life insurance to your policy for a set amount of time without having to apply for a new policy, or drastically increase rates on your existing one.

2. Children’s Term Rider

This rider allows you to add life insurance for a child from age 15 days to 18-25 years (depending on the company).

3. Long-Term Care Rider

This policy rider is strictly offered for permanent life insurance policies including whole life. It allows you to use a portion of your death benefit toward long-term care if the need arises in the future.

This rider is highly recommended for whole life insurance because people are living longer than ever, and the cost of assisted living is very high (upwards of $5,000-8,000 per month), which can leave a large financial burden upon a family.

Whole Life Insurance Rates 

The following table shows whole insurance rates for people in the preferred health category, with no health issues.

Pros and Cons of Whole Life Insurance

Pros:

  • You can enjoy lifetime coverage, as long as you continue to pay your premiums, without ever having to get another policy
  • Whole life policies accumulate cash value which can be borrowed against tax-free
  • Cash value accumulates at a set rate, taking the need for you to worry about it out of the equation
  • Whole life insurance is a great option for someone looking to set up an estate or trust

Cons:

  • Whole life insurance rates are inherently much higher than term life premiums because of the guaranteed payout
  • Whole life insurance does not offer as much cash value accumulation potential as variable, universal, or indexed life insurance policies
  • The excess in premiums paid into whole life policies over term that accumulate cash value could arguably be invested in the market to potentially yield higher returns over time

Choosing the Best Type Life Insurance Policy for You

When it comes to choosing the best type of life insurance coverage for you and your family, what you choose ultimately depends on a multitude of factors such as health, age, budget, coverage needed, and more.

We know that the options may seem overwhelming, that is why we are here to help!

Give one of our independent life insurance agents a call today to speak with them for free about which policy may be best for you and your family’s needs. Our agents can explain to you all of your coverage options from companies, to policies, to rates, to help you find the best coverage for you and your loved ones.

Call us today, or get started using our online life insurance quote tool to compare life insurance rates instantly!

compare the best life insurance rates

Article source: https://www.lifeinsure.com/term-life-insurance-vs-whole-life-insurance/

Can You Get Life Insurance if You’re Pregnant?

When you become pregnant, you begin thinking about the world in a different way. Your whole world will soon change forever, and you want to ensure that your child is able to live in a safe environment.  This includes your financial environment.

Often times, we have people ask us the question of: “Can I get life insurance if I am pregnant?” I wanted to take the time to answer this question in depth in order to give pregnant women and their significant others insight into the life insurance coverage options for pregnant women and to protect your young family.

This article helps to answer some frequently asked questions about life insurance for pregnant women.

Common Questions About Life Insurance for Pregnant Women

Can You Get Life Insurance if You Are Pregnant?

Yes. Life insurance companies will not turn you away because you are pregnant. Pregnant women looking for life insurance is not as uncommon as you may think, and thanks to modern technology, pregnancy is not as dangerous as it once was.

Does Being Pregnant Affect Life My Life Insurance Rates?

In most cases, being pregnant typically doesn’t even change the rates you are offered.

The main reason is that your costs are based on your health—specifically things that are going to decrease the longevity of your lifespan. These include heart diseases, smoking, diabetes, etc… Pregnancy does not fall under this category.

However, most insurance companies won’t offer coverage once you pregnancy enters the third trimester.  Also, your pregnancy weight gain might affect your rates so, for that reason, it might make sense to wait.

Should Pregnant Women Get Life Insurance?

It is easy to understand how life insurance becomes a thought once you are pregnant.  You are turning a new leaf and will now need to be more responsible than you have ever been in your life.

As parents having children, it is important to have life insurance for a couple of reasons:

6 Reasons Pregnant Women Should Get Life Insurance 

1. Protect Your Income

If you are pregnant, very shortly you will have your first dependent on your income. Overall, your child depends on your income in order to survive, even for a few years until they are able to fend for themselves.

You want to be able to ensure that your child will have income replacement in the event that you are unable to work, or gone. While it is not something pleasant to think about, it is an important thing to plan for. Life insurance helps you to do this.

2. Life Insurance for Your Child

As a parent also have the option insure your child. While it is tragic to think about, if your child needs medical care, or tragically pass away, this can cause financial turmoil on top of the emotional pain.

You can protect your child while they are young with a policy that is paid for in full and turned over to them when they are an adult. This is sometimes offered as a rider on term and permanent life insurance policies, and can also be purchased separately as its own policy.

3. Cover Debts 

Life insurance also serves as a way to protect your loved ones from inheriting your debt in the event of your death.

Mortgage payments, car loans, outstanding credit card debt, etc… all accounts for this debt. As you plan a family and your family grows, you will likely go through a stage where you accumulate more debt, before your income eventually allows you to chip away at it as you approach retirement.

4. Plan for College

Life insurance can be used as a tool to help plan for college for your child. Life insurance policies for children can be taken out which eventually build cash value and can be handed off to children once they become adults, which in the life insurance world can be between the ages of 18 and 25 (per policy).

With the cost of college increasing every year, life insurance is perfect for pregnant women who plan on sending their children to college.

5. Lock in Low Rates Young

Your age is one of the main factors affecting life insurance rates. When you get pregnant is a great time to get life insurance because you now have more of a need for it than ever before, and you are as young as you will ever be.

If you are in your 20’s, 30’s, or even 40’s and are in good health, and are a non-smoker, you will likely be able to secure very low life insurance rates to protect your young family.

6. Peace of Mind

Despite the fact that this is hard to quantify, peace of mind is one of the greatest things that life insurance provides, especially when you are pregnant, or have a young child.

Life insurance helps give pregnant women and new parents the peace of mind of knowing that their child is protected financially in the event of their death.

Can You Get Life Insurance Coverage for Your Baby if You’re Pregnant?

If you take out a life insurance policy while pregnant, you can certainly find one that gives you a rider, or special feature, to add your children to the insurance policy you already have.

In these cases though, you must wait until the child is born in order to add them. They can typically get coverage until they turn 18. Now, your coverage is probably going to be enough for them, but this is still something to consider.

How Much Coverage Do I Need?

In order to figure out how much coverage you need with your life insurance, start by gathering any important personal financial information that you have so that you can figure out your current income and your debts versus your assets.

After that estimate what your burial cost will be and how much money your family or your business will need in your absence. As someone who is pregnant, you need to consider the number of years your unborn child will need coverage, and what the average costs of that coverage for your area.

When figuring out how much life insurance coverage you need as a pregnant woman, you want to think about these 3 factors.

3 Tips to Determine How Much Life Insurance Coverage You Need 

1. Calculate Your Annual Income and Multiply 15-20

As a pregnant mother, you will now be accepting financial support of your child for the first 18 years of their life. On top of that, you may want to plan for college for your child. This should also be factored into the type of life insurance policy you take out as a new parent.

2. Plan For College 

Planning for college is not easy, it’s also not cheap. This is something you want to begin planning for as soon as possible to give your child the best financial resources to follow their aspirations in college if they choose to go. Life insurance is a great way to do this.

3. Factor in Existing Debt 

Like it or not, you probably have debt. As Americans, we each account for an average of nearly $70,000 in debt per person. Wherever your debt stands in relation to this, chances are, you do have debt, no matter the amount.

When considering how much life insurance is right for you while pregnant, you will want to account for your debt in order to financially protect your family.

What Types of Life Insurance Policies Can I Get if I’m Pregnant?

There are generally two categories of life insurance from which to choose: permanent or term.

Permanent Life Insurance

Permanent life insurance includes universal and whole life insurance as well as other types of policies.  This type of life insurance coverage lasts your whole life (usually through age 101, 112, or 121).

These policies may accumulate cash value on a tax-deferred basis which you can use while you are still alive. This means that the money you put into your policy builds cash value, which is cash that you can borrow without having to pay taxes or interest on it.

This policy is designed to have a level premium with a guaranteed death benefit. It accumulates cash value that you can use to help meet any living needs like buying a house, funding your emergency situations, cover college expenses, or adding to your retirement.

Permanent life insurance can take  variety of forms, such as:

  • Universal Life
  • Whole Life
  • Variable Life
  • Indexed Universal Life
  • Etc…

All these types of permanent life insurance policies vary in terms of premiums and cash value accumulation. Speak with an agent to learn more today.

The premiums for permanent life insurance are very high compared to term life insurance. For most people, term is best because it offers protection that can be layered in order to provide income protection and debt relief dynamically as life develops.

You should consider a permanent life insurance policy if:
  • You have long-term financial needs
  • You like flexibility with your premium payments and your death benefits
  • You want a policy that accumulates tax-deferred cash value

Term Life Insurance

Term life insurance will protect you for a specific amount of time, ranging between one and thirty years. It will only pay out the death benefit if you pass away during that time. It is considered a temporary form of life insurance.

Short term, it gives you the greatest level of protection for the lowest premium possible. Therefore, if you are on a tight budget this can be a great, cost-effective solution. If you know that your financial responsibilities will decrease with time, it might also be a wonderful way to free up your funds.

One of the drawbacks to selecting a term policy is that you never get any of that money back unless you pick a Return of Premium policy or policy rider, and your coverage expires when the term does. Whereas permanent life insurance accumulates cash value over time on top of your life long protection.

You should consider term coverage if:
  • You have a temporary financial need
  • You need large coverage on a tight budget
  • You want to use it for specific business needs like executive benefits

How Does Life Insurance Pregnant Women Cost?

The cost of your life insurance policy, regardless of how far along you are in your pregnancy or if you are trying to become pregnant, is going to be based primarily on your age, gender, and health. It will also be based on a how much coverage you want and how long the policy is—either term wise or permanent.

As a healthy, pregnant female, your sample rates for the preferred health category are as follows:

How Do I Find the Best Life Insurance Rates for Pregnant Women?

Different companies charge different rates. So, you need to do some homework on the rates available – get quotes from many companies. Talk to a broker or third party to compare the rates based on your situation.

Give us a call today to speak to an independent life insurance agent who can help you compare life insurance policies from dozens of the best life insurance companies for pregnant women.

They will work with you to determine how much coverage you need, what your budget is, and whether term or permanent is the solution. They can even work with you to discuss riders that can help get life insurance coverage for your children.

compare the best life insurance rates

Article source: https://www.lifeinsure.com/pregnant-life-insurance/

Term Life Insurance | The Ultimate Guide

Term life insurance policies are easy to understand and do not cost as much as a permanent whole life insurance policy. 

Term Life insurance typically comes in 10, 15, 20, 25, and 30 year terms. This means when you reach the end of your policy’s term, you will need to either look for another life insurance option or renew the term for a much higher premium.

What is Term Life Insurance?

 

Term life insurance is often called “pure life insurance” or “temporary life insurance” because it’s intended only to protect your dependents in case you pass away during the term period.

A term life insurance policy is strictly meant to pay your beneficiaries if you die during the policy’s term.

You may be thinking “Isn’t that what a life insurance policy is supposed to do”?

Yes and no.

Other types of life insurance policies offer additional values that most term life insurance policies do not such as building cash value.

What Types of Term Life Insurance are There?

 

There are two basic types of term life insurance policies: level term and decreasing term.

Level term means the death benefit (aka “face amount”) will stay the same throughout the length of the policy.

Decreasing term means that the death benefit amount will drop, usually in one-year increments, over the course of the policy’s term.

For term life insurance policies, the premium will usually stay the same throughout the entire term.

Common types of level term are:

    • Annually renewable term
    • 5-year renewable term
    • 10-year term
    • 15-year term
    • 20-year term (Most popular term)
    • 25-year term
    • 30-year term

    • Term to a specified age (usually 65)

It’s important to note that most life insurance companies will not sell term insurance to an applicant for a term that will end past his/her 80th birthday.

Is Term Life Insurance Right for Me?

So how do you know what term length you should purchase? Here are a few guidelines to keep in mind when looking to buy a term life insurance policy:

    • Choose a term that coincides with the years you’ll be paying large bills such as your mortgage, car note, business loans, student loans, and children’s education. Remember, just because you are deceased does not mean the bills go away. 

    • Buy an amount that would replace your income. Will your family need one year of your income to continue meeting regular expenses? Or will they need two years? Five years? Factor this amount of time into your decision.

As far as term life insurance premiums go, you lock in the premium for your age and health at the time of the application.

What Should I Do if My Term Life Insurance Policy Expires?

 

So you purchased your term life insurance policy for 10 years. The decade has flown by and now your term is up.

What happens next?

Well, that outcome is specific to the term life insurer and the way your particular policy is written.

There are a few different options.

If you have a renewable term life insurance plan, the coverage can be renewed annually (up to a specific age) with an increase in premium every year.

If you have a term policy that is convertible then you, as the policy owner, have the right to convert the policy into a permanent life insurance plan without additional evidence of insurability.

How Do Premiums Work on a Term Life Insurance Policy?

You may also be wondering what happened to all that premium you paid for the last 10 years. Your premiums on a term life insurance policy bought you protection during your term period.

Your premiums will not be refunded when your term ends. In the same way that auto or homeowner’s insurance works, the life insurer figures they provided protection to you that you needed for all those years but you just didn’t use it.

If you had a death claim then they would have willingly paid to your beneficiary the death benefit. Some insureds do not appreciate this term life insurance concept.

For that reason, a few life insurers have created term life insurance policies with a Return of Premium (ROP) rider because of insured complaints. The premiums for ROP term life insurance policies are usually much higher than policies without this feature. You also must keep the policy in effect and current until its term ends to avoid forfeiting the premium benefit.

Always review the fine print on your term life insurance policy so you understand how your specific term life insurance coverage works.

Can I Renew My Term Life Insurance Policy?


Let’s say your term is coming to an end and you can’t decide what to do next. Many people will convert the term life policy into a permanent life insurance policy.

If you aren’t able to do so (or don’t want to do so), then there may be a few other ways to renew your existing term life insurance policy without paying a huge premium increase.

 Have you lost a lot of weight? Stopped smoking? Or have you gotten your Type 2 diabetes under control and no longer need the metformin pills? 

If you have improved your health since you originally purchased the term life insurance policy then you should check with your insurance agent or life insurer to find out if you can do a “health re-classification”.

Many carriers allow an insured one opportunity to submit an application in which the insured will be re-classified based on his/her current health. This can lead to a really nice reduction in premium.

Many term life insurance companies will allow an insured to reduce their death benefit one time.

You can do this when the term is coming to an end and avoid the high renewal premiums. Although it’s only a good idea to do this if you can actually forgo the original death benefit amount.

If your family is still going to need that $100,000 policy then it doesn’t make much sense to reduce it now just to save a bit on premiums.

However, if finances have changed in your life since the original policy was purchased, perhaps it makes sense to reduce the death benefit and save some cash up-front.

If you are still healthy enough to qualify for a low-cost replacement term life insurance policy then go that route.

You can work with your insurance agent to find different or better term life insurance coverage than what you previously purchased.

Buying a new policy and receiving the new policy rate always saves in comparison to renewal premiums.

Once again, it’s worth mentioning that many individuals decide to convert their term life insurance policy into a permanent life insurance plan.

 

How is Permanent Life Insurance Different than Term Life Insurance?

Unlike a term life insurance policy that only lasts for a maximum of 30 years, a permanent life insurance policy provides protection for your entire life.

Your family will receive a death benefit no matter your age at the time of death. Many term life insureds smartly convert their term life insurance policies into permanent life coverage because of all the unique benefits.

For instance, permanent life insurance offers a tax-deferred savings element. Plus, permanent life insurance premiums stay the same throughout the years while a term may go up significantly every time it is renewed.

If your term life insurance policy is coming to an end, or you are looking for better coverage that will last your entire life, and also act as a savings vehicle, then permanent life insurance is right for you.

Permanent Life Insurance – Whole vs. Universal

 

 

There are four different types of permanent life insurance coverage: whole (ordinary) life, universal (adjustable) life, variable life, and variable universal life. The majority of consumers purchase either whole or universal life insurance coverage.

Whole or ordinary life insurance offers a death benefit and potential cash value. If you select a whole life insurance plan then you will have a set face amount (or death benefit) and set premiums. Over time, as you pay on your whole life insurance policy, the cash value will grow from dividends paid by the life insurer.

Universal or adjustable life provides more flexibility than whole life insurance. Universal life insurance allows insureds to increase the death benefit, secure savings at fixed interest rates and modify your future premium payments. To increase the face amount you will need to pass a medical examination.

Obviously, the life insurer wants to be sure that you were not recently diagnosed with a life-threatening illness and that is the reason for increasing the death benefit. The premium payments can be changed by you after you have accumulated enough cash value.

Keep in mind, you’ll need to have enough cash value to cover the costs. This is important to know because if you stop or reduce your premiums and the cash value becomes deplete, your life insurance policy could lapse.

 

    • Use the cash value to pay premiums as long as there is enough cash accumulated.
    • If unexpected expenses occur, you can stop or reduce your premiums.

    • As we mentioned earlier, you can borrow money from the insurance company using the cash value of your permanent life policy as collateral. 


Who is Term Life Insurance Best For?

 

For people who are looking for life insurance coverage for a specified period of time in their life, like while their children are still living at home, or for the remainder of their career, term life insurance is the right fit.

Term life insurance offers very affordable rates for healthy people who often times can’t be rivaled by that of other policies if bought at a young age.

While it does not build cash value, term life insurance serves its purpose well in protecting your family from financial loss in the event of your death.  Policies can start as low as $10/month and provide coverage upwards of $500,000.

How Much Does Term Life Insurance Cost?

While we can’t promise that these numbers will always be accurate for any given health classes, we have gathered some average rates you can expect for term life insurance.

Below is a chart displaying the cost of a $500,000 term life insurance policy for  10, 15, 20, 25 and 30-year terms. Males and females in this example are healthy, non-smokers, who are both 32 years old.

Below is a chart displaying the cost of a $500,000 term life insurance policy for 10, 15, 20, 25 and 30-year terms. Males and females in this example are healthy, non-smokers, who are both 42 years old.

As you can see, the older you are, the more life insurance rates go up.  For term policies especially, it is best to lock in low premiums early.

This gives you time to convert your policy into a whole life policy later in life if you so choose, or renew a policy if you are still young enough to obtain affordable life insurance coverage after it has expired.

The 6 Best Term Life Insurance Companies 

Here is a brief overview of our 6 Best Term Life Insurance Companies (Ratings as of :


1. Banner Life

banner life logo

 

Banner Life is known widely for their affordable coverage for people who are not in the best health conditions.

They also offer very competitive term life insurance rates that are almost always below most of the competition.

With terms ranging from 10-30 years, and renewable and convertible rider options, Banner Life is definitely one of the best term life insurance companies.

Banner Life Insurance Company Ratings

 

 

2. Protective Life

Protective Life Logo

Protective Life has been around for over 100 years in the United States.  Over this time, they have built quite the reputation as a life insurance and investment giant.

They offer some of the best term life insurance rates in the industry and also offer a wide array of whole life insurance offerings.

Protective Life Insurance Company Ratings


3. Pacific Life

Pacific Life logo

Pacific Life has been around for over 150 years. In 2018, they mostly specialize in universal and whole life insurance, having the #1 spot in total sales for indexed universal.

They are also #1 in the industry in overall life insurance sales.  There is a reason for this. Pacific Life has a wide array of options and has been successful since their inception at helping customers find the best whole and term life insurance rates.

Pacific Life Insurance Company Ratings


4. AIG

AIG logo

AIG has also been around for almost a century.  With a high financial rating, and a continuously successfully performing portfolio, AIG is another life insurance giant that offers a wide array of life insurance products.

Their term life policies in specific are very affordable and offer the ability to convert to whole life or renew the policy.

AIG Insurance Company Rating


5. Prudential

Prudential is probably best known as a life insurance company for its ability to consistently get people the lowest rates possible by classifying them in the best health class possible.

For this reason, they have very affordable rates compared to the competition, even with applicants who have substandard health.  They offer 6 different term life policies, each with their own benefits, riders, conversion terms, and coverage.

This wide array of coverage allows for Prudential to be one of the best term life insurance companies year after year.

Prudential Life Insurance Rating


6. Mutual of Omaha

Mutual of Omaha logo

Mutual of Omaha has also been around for over 100 years. During this time, they have built a solid financial rating to combine with their impressive portfolio.

Mutual of Omaha offers some of the best no-exam term life insurance policies in the industry, making it fall just short of Banner Life and Prudential on our list.

Mutual of Omaha Life Insurance Company Ratings


How to Find the Best Term Life Insurance

The best piece of advice anyone can offer you during the process of searching for the best term life insurance is to speak with an independent insurance agent.

The reason being, there are hundreds of options available on the market.  And while the internet can make searching for rates a bit easier, there are still a lot of details that need to be known about the insured’s needs, finances, and health in order to find them the best life insurance policy.

Speaking with an agent is entirely free, and can help you narrow down your choices from hundreds to a handful in a few minutes.

Please feel free to call the insurance professionals at LifeInsure.com at (866) 691-0100 during normal business hours or contact us through our website.

When it comes to planning for your family’s financial future, you want to understand everything you can about the choices available to you in order to make the right decision.

Speak with an agent today to get started!

Compare the Best Term Life Insurance Rates

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Use the form on the right (bottom on mobile) to get started.

 

 

Article source: https://www.lifeinsure.com/term-life-insurance-ultimate-guide/

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