Why is Life Insurance More Expensive for Men?

Why is it that life insurance is more expensive for men than women?

The answer is pretty simple.

Men tend to take more risks with their lives than women and generally don’t take care of their health as well as women.

The statistics tell the story quite dramatically.  In 2016, the CDC (Center for Disease Control) reported that deaths from all age categories and for all causes show quite a discrepancy between the genders.

In 2016, the total number of accidental deaths for men from both accidents and disease for all age groups amounted to 11,288,114 deaths for males. For women, the total number of deaths in 2016 for all ages and causes was 7,266, 441.

But when it comes to driving, the numbers are skewed even more to the peril of men.  CBS News recently reported that men die in car accidents at a 2-1 clip over women.  Unfortunately, alcohol is involved in many of these fatal accidents.  For God sakes men!  Take an Uber next time instead.

(And when it comes to driving for Uber, you may only want to take a ride from a woman!)  :)

The disparity is quite telling.  Needless to say, women also tend to live longer than men. The U.S. Census Bureau reported that in 2015, the average life of a female in the U.S. was 80.5 years of age while for men the average life span was 75.5 years of age.

Life insurance companies keep close track of these statistics and in great detail as they use these statistics in their analysis in how they determine the premiums they charge.

There are a lot of variables which are used by life insurance companies as they determine the probability of how long they expect you to live and they most certainly note the disparities of the life spans between the genders.

How Can a Man Save Money on Life Insurance?

It’s a bit tough going against the grain and save money on your life insurance if you’re a male, but there are some ways that can help save you a lot of money on your life insurance policy.

Here are some simple steps to show how a male can save money when they go to buy life insurance:

1. Buy Your Life Insurance Policy When You’re Younger

Regardless of gender, it’s a plain simple fact that life insurance is a lot cheaper to buy when you are younger.  Life insurance becomes exceedingly more expensive as you get older.  Since life insurance is a long term investment and something you will need, then the best approach is to buy it now while you’re still younger.

2. Use An Independent Insurance Agent

Using an independent agent such as myself is the best strategy to find cheaper life insurance rates.  Why?  The answer is simple really, because an independent agent has access to dozens of life insurance companies and can shop around to find competitive quotes for you. 

3. Take Better care of Yourself

Even if you are bit older, you can get a better rating and lower premiums if you are in better health. 

This does not mean you should put off getting life insurance until you improve your health, because if you need coverage now, then buy a policy now.  Even if you are a bit unhealthy now and a policy costs a bit more, you may be able to get a better rating and lower premiums when your health improves. continue page 2…….

Term vs. Whole Life Insurance – Buyer Beware!

Chris Huntley, founder of Huntley Wealth is spearheading an exciting movement called the Whole Life Insurance Rebellion, which will be kicking off May 31st 2016. “This rebellion is more a condemnation of life insurance industry practices and how whole life insurance is currently being sold, than it is an indictment of the product itself. We would like to educate consumers about their options without the pull of personal gain.” If you want to keep abreast of the latest news, Nerd Wallet, PlantingMoneySeeds.com & InsuranceLiteracy.org and the Huffington Post will be covering this historic event in coming weeks.

An incredible 63.7% of all life insurance policies sold today are Whole Life, estimates the American Council of Life insurers! Admittedly Whole Life Insurance has its place, but this disproportionately high number is the result of juicy commissions offered to agents who sell these policies.

Many financial advisors, including Dave Ramsay and Suze Orman do not advocate purchasing Whole Life Insurance. Term insurance offers great coverage at a fraction of the cost and the money you save may be invested in a vehicle that gives you better overall returns.

Drawbacks of Whole Life Insurance

There are many drawbacks In regard to Whole Life Insurance, but the most obvious issues are the administrative fees and costs surrounding this expensive life insurance.

Heavy Initial Fees and Commissions

Incredibly, most agents make 80% – 110% of the first year’s premium in commission. This explains the brutal surrender penalties that govern your policy for the first 10 years. Typically it takes 7 – 10 years to break even. So let’s say for example, you purchase a $5,000 whole life policy with a 90% first year commission. Your agent will earn $4,500 in commission. There is quite a bit of financial incentive to push a whole life policy rather than term.

There are also additional expenses that will be deducted from your premiums that include the cost of insurance, administrative fees, policy fees and surrender charges (for the first 15 years). For your information these expenses are heavily loaded to the front of your policy, so whole life insurance performs far better after the first 10 years of investment. That being noted, these expenses undeniably drag down the overall performance of whole life insurance.

Whole Life Insurance is EXPENSIVE

Quite simply put, on average Whole Life Insurance premiums cost 10-20x what term insurance premiums cost. Even if you require lifetime coverage, you can purchase guaranteed universal life, for about half the cost of whole life.

Educate and Empower

Chris Huntley is using the Whole Life Insurance Rebellion as an opportunity to teach consumers about the ins and outs of Whole Life Insurance. The message he would like to convey is that Whole Life Insurance should not be used as an investment. The money you save by purchasing term life insurance could be directed into a far more lucrative investment opportunity that will maximize your dollars. Understanding the fine print will enable consumers to make a decision that will support their needs instead lining their agent’s pockets.

Tony Steuer from InsuranceLiteracy.org has created the Insurance Consumer Bill of Rights on Indiegogo.com, which calls for changes in the insurance industry that will require all agents to act in the consumers’ best interest. Which translates into providing coverage that is both affordable and targeted to consumers’ specific needs. Insurance agents should be held accountable for the advice they offer. You have probably heard of the Hippocratic and Fiduciary Oaths, codes of ethics medical and financial advisors must swear to live by. The life insurance industry has no such code and should adopt one.

Join the Whole Life Insurance Rebellion and sign the insurance Consumer Bill of Rights today.

How Much is Enough?

How much life insurance do I really need?

That’s the one of the toughest decisions to make.

Here’s some tips to answer this question.

How Do I Decide on How Much Life Insurance to Carry?

The amount of life insurance that you need  really boils down to answering 3 basic questions.

1. What do I want the life insurance to accomplish?

2. What are my assets?

3. What are my debts?

The formula is basically (Needs and/or Assets) – Debts x Length of Time = Amount of Life Insurance Coverage

These sound like simple questions, but let’s examine each step in a lot more detail.  Each of you will have your own unique objectives and different circumstances.

1. What Do I Want the Life Insurance to Accomplish

This boils down to one thing –NEED!

Buying life insurance isn’t about making anyone rich, it’s about taking of the people who depend on you and their future financial survival. If your income is vital for the financial maintenance of your family, you have to figure how your survivors are going to manage when you’re gone.

So, take a look at where you are now and cast your gaze into the future. Let’s start with where you are right now.

You might be single and about to get married.  You could be already married and are thinking about having children, or you might already have 1 or 2 little ones and are maybe expecting another bundle of joy.

You might be currently renting but saving up to buy a house or condo, or you already own your home.  You could be a young professional in the first year of your new budding career.  Or, you might own and have been building your own business for several years.

What do you want a life insurance policy to cover?  What do you foresee down the road such as 5, 10, 20 or even 30 years for yourself and your family – existing and future?

Here are some objectives to consider how much life insurance you might need, and what objectives you want to use a policy to cover.

  • Income replacement for (x) number of years
  • Maintaining the standard of living for your family for (x) number of years
  • All of your current debts and even future ones
  • Your burial expenses
  • Your living circumstances such as a mortgage
  • Taxes
  • Inflation (assume 2-3%)
  • Current needs and future needs
  • Children’s college tuition
  • Medical expenses (if you currently have or anticipate health problems down the road – is your current health insurance going to be sufficient?)
  • Leave a financial legacy for the kids or grandchildren
  • Donate the life insurance proceeds to your favourite charity(s)
  • Business debts – if you are a sole proprietor or in partnership

That’s step 1 – figuring out your needs or objectives of what you want a life insurance policy to cover.

Now, lets get down to some dollars and cents questions.continue page 2……

Life Insurance with Pre-existing Conditions

Do you need life insurance and have a pre-existing health condition?

Have you been turned down for a life insurance policy?

 Don’t know what to do?

 Pre-existing Health Conditions and Life Insurance

 Yes, it can be a challenge if you have been coping with a pre-existing health condition like heart disease, high blood pressure, cancer, diabetes and any other form of health condition.

You might have already applied for a life insurance policy and the company turned you down flat.  There are many people who are in the same boat as you.

 Everyone has a need for life insurance, but people who have a pre-existing health condition can face an uphill battle when it comes to buying life insurance.

What can you do?  I have some tips and advice that I think will help some of you, and I’ll start with the basics when it comes to comes to life insurance and how it works for people who have a pre-existing health condition

 How Life Insurance Companies Rate People with a Pre-existing Condition

Believe it or no there are over 80 different variables which can be considered in the underwriting process when it comes to rating a person for a life insurance policy.

Life insurance is based on the probability of risk.  How risky is it to insure a person.  Even if you are a higher risk, you may still be eligible for a policy.  But, it will cost more for a policy.

Some pre-existing conditions may not be insurable under a standard policy by any company. Other conditions may require a waiting period such as being cancer free for a certain period before they will consider an application. That’s the bad news.

The good news is that not all insurers rate people with pre-existing conditions the same.  Some companies are definitely more lenient than other companies.  So, the first thing to keep in mind is that even if one company turned you down, another company might approve your application.

And, if you still aren’t eligible for a policy at all, there is another option known as Guaranteed Life Insurance which I’ll explain about later on.

In a nutshell, the most important factors which a prospective insurer wants to know include the following:

  • When were you first diagnosed with the condition
  • How serious is the condition
  • What treatment you received
  • How well you responded to treatment
  • What is the prognosis

Basically, what the insurance company wants to know is whether your condition is one of the following situations:

  • Is the pre-existing condition stable?
  • Is the pre-existing condition improving?
  • Is the pre-existing condition getting worst?

The insurance companies will rate you according to the medical records they request and receive from your doctors/hospital.  They will also base their decision on your medical exam which you might have to take and from their review of the R/x database and MIB or Medical Information Bureau.

If your condition is stable or improving then your odds of being approved for a policy increases.  If the condition is getting worst then it is very likely you will not be eligible for a standard policy and will have to go with a Guaranteed Life Insurance policy.

Not All Pre-Existing Conditions Are Treated the Same

This is another thing you have t keep in mind.  For example, you might think that since you have been diagnosed with cancer, then you’ll be out of luck.

No, just because you have cancer, heart disease or diabetes doesn’t necessarily mean your pre-existing condition will be all lumped into the same category.  Some conditions have a very high rate of being treated successfully such as some types of skin cancer.  However, lung cancer may be a bit more of a problem.

How Do I Find Life Insurance with a Pre-existing Condition?

First, don’t waste your time using instant online sites which claim to be ready to sell you a policy right now.  It won’t work as you are going to undergo a more detailed health investigation by the company.

Since not all insurers are the same, the first thing you should do is to always talk to an independent life insurance agent who specializes in health related issues such as me.  Independent agents have access to dozens of different insurers and I know which ones are going to be more lenient than others.

This not only applies to how you will be rated but how much you will be charged for a premium.  The other issue is that I can discuss your specific health concerns on a one-to-one basis and can provide you with the advice and options you need to know about and consider before you make an informed decision.

What if I Have A Life Threatening Pre-existing Condition?

It is possible you may not qualify for a regular life insurance policy at all.  But, you still have one option left open and that is for a Guaranteed Acceptance life insurance policy.  In most cases you will not have to either answer any medical questions or even have to take a medical exam.  You are basically immediately approved.

The drawback is that these policies have much a lower coverage which mostly won’t be higher than a $25,000 policy.  They are more expensive but still affordable.

There is usually a 2 year waiting period called a ‘Graded Death Benefit’ attached to these policies where the insurer won’t pay the death benefits if you die in the first 2 years of the life of the policy.  Your beneficiary would only receive the premiums (and possibly some interest) you paid up until the time of your death.

Where Can I Find a Life Insurance Policy for a Pre-existing Condition?

You always want to talk to an independent agent like myself.  We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.  If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.

Whatever your needs or questions then please call me direct at 877 – 966 – 9383.

Inexpensive Life Insurance for Seniors

Where can seniors find inexpensive life insurance?

You’ve come to the right place.

Here’s the scoop on affordable term life insurance for seniors.

What Kind of Insurance Can Seniors Buy?

If you’re a senior you can pretty much qualify for any type of life insurance policy if you’re in good health.  You can choose between term and permanent life insurance.

However, since you’re here looking for senior life insurance that isn’t expensive than your best choice is term life insurance.

What is Term Life Insurance?

Term life insurance is the most basic form of life insurance policy offered by insurers.  This type of policy is especially ideal for many seniors who are looking for insurance coverage for a specific period of time.

What Are the Benefits of Senior Term Insurance?

There are a number of benefits and positive reasons for a senior to consider why term insurance is the best option.  These include:

1. Term insurance covers death benefits only.  You can choose the amount of death benefits you need in just about any amount from $25,000 to over $1,000,000 dollars.

2. Term insurance is the most affordable type of policy a senior can buy.

3. You can select the length of term you need.  This policy is sold in periods of time such as 5, 10, 15, and up to 30 years and can even be age specific such as age 65 for example. However, you should be aware that there are cut-off age dates for longer terms which are age specific.

For example, a 60 year old may be able to buy a 30 year term, but may only be eligible to buy a 10 or 15 year term when they hit age 69 and older.

4. The premiums are locked in for the period of the term for most policies, but this can vary from company to company.

5. The proceeds from a term life insurance policy are paid in a lump sum.  These proceeds which are paid to your named beneficiary are also non-taxable so your loved ones can use the money in any manner they choose.

A Senior Should Buy a Term Policy as Soon as Possible

The one thing to keep in mind about life insurance is that it becomes more expensive as you age.  So, it’s important that if you are coming close to a birthday, you will save yourself more money by buying a policy now before you reach that birthday.

Some insurers are also more lenient when it comes to age than others.

What if I’m Not Very Healthy?

This may or may not be too much of a problem depending on the health issues involved.  First off, you should know that life insurance companies use dozens of variables in how they rate people when determining how much they will charge for a premium.

Some of these variables include your age, whether you smoke, the state of your current health, family history and many other factors.

Even though you might have health issues, you should be aware that you can still qualify for a policy but you might receive a lower rating which could impact the cost of your premium.

But, again it’s important to know that each insurance company rates health issues differently.  Choosing a company that is more lenient can also help save you money on your premium.

Even if your health issue prevents you from being approved for a policy, you do have other options such as Guaranteed Acceptance, but you should phone me to discuss your options beforehand so we can discuss your health issues.

Are There Other Life Insurance Options for a Senior?

Yes, there are other options.  Many seniors only want a small policy which will cover their funeral expenses and to pay for small debts they owe.

This type of policy is known as Burial Insurance or Final Expense insurance.  These policies start as low as $2,000 dollars and as high as $50,000 in coverage.  This policy would stay in effect until you actually die.

Where Can I Find a Life Insurance Policy For Parents Over Age 60?

You always want to talk to an independent agent like myself.  We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.  If you have health concerns, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.

Whatever your needs or questions then please call me direct at 877 – 966 – 9383.

Life Insurance for Business Owners

Any sole proprietor or small business owner who doesn’t have a life insurance policy is leaving both their business and family exposed to potential financial disaster.

I’m not being melodramatic because a life insurance policy just makes good practical sense.

Nobody plans on dying prematurely, but unfortunately it happens.

You just need to ask yourself this one basic question as honestly as you can – ‘What is going to happen to my family and my business if I were to die without a life insurance policy?’

Let’s break it down into 2 separate parts.  First, we’ll take a look at how life insurance can be used to protect your family, and then we’ll examine the business side of things.

How Life Insurance Protects your Family

As a sole proprietor or small business owner with between 1 – 10 employees, you are most likely the primary breadwinner in your family.  You work long, hard hours to build and keep your business running to bring in that income to support your family.

If you don’t have any life insurance, and something unforeseen happens and you were to die, then what is your family going to do without that income you were bringing in to support your family?

That’s right – it’s gone!  The rent and the mortgage has to be paid.  The utilities have to be paid as do your outstanding personal loans and credit card payments.  And, sadly to say, don’t forget there could be medical bills and the funeral and burial expenses.

These expenses add up and do so quickly.

You might be gone but your surviving spouse and children still have to survive.  It can be a dire time for them if you don’t have any life insurance.

The proceeds from a life insurance policy can take care of all their current and future financial needs for years if you plan carefully.

How a Small Business Owner Can Use Life Insurance to Protect their Family

Figuring out how much life insurance you need to protect your family depends on how much income you provide to support your family.  Then, you have to look at all your outstanding debts and monthly bills.  Next, you have to look down the road and consider what they will need to be able to manage financially.  You might also want to factor in college tuition for the children.

The next step is to consider what assets you have on hand that are already available.  This will help you determine how much you need for a policy.

Life Insurance for the Business

You’re not finished yet.  You invested a lot of capital into your business.  You may have business loans, equipment and could be financially obligated to suppliers and clients.

This could be a family business where there are other family members involved, or you could be in a partnership.  If you are a sole proprietor or simply the sole owner with a few employees, then you should know that when you die the business has to be legally dissolved.

Without life insurance the business may have to be sold and this could be at a loss.  The sale proceeds may be insufficient to cover the debts.  And, let us not forget about federal and state taxes.

A life insurance policy needs to be in place to cover the disbursement or take over of the business efficiently and with minimal financial duress.

Types of Business Life Insurance

There are life insurance policies designed specifically for small business owners which can be of vital importance.  Let’s look at them briefly.

Buy – Sell Agreement

This type of policy will ensure that if the business has to be sold it can be done so at market value and not as a distress sale which could result in a huge financial loss.  A buy-sell agreement can also be used to facilitate the transfer of the business to another family member for an amount specified in the transfer.

If you have a business partner(s), you can also use a buy-sell agreement which allows the surviving partner(s) to purchase the outstanding shares or percentage of the business for a predetermined amount based on the market value or some other formula.

Buy-sell agreement business life insurance offers you a lot of flexibility as you can structure it to cover a broad variety of scenarios which you should discuss with your partners, family members and an independent insurance agent such as me to understand your particular needs.

Key Man Insurance

If you own a business with employees, one of these employees may be vital to the continuing success of your business.  This could be a salesperson or someone who has a specialized skill or talent which is vital to keep the business running.  If this person dies, they will have to be replaced which takes time to find the right person and get them up to speed.

In the meantime, you could end up losing customers or clients who are only interested in working or dealing with this person.  This can cause a critical loss of business income which could ruin your business financially.

A Key Man insurance policy on this important employee or partner can lessen the financial impact on your business until a replacement is found.

Bottom Line

If you own your own business, a life insurance policy can be vital to protect both your family and the business you worked so hard to build.  Life insurance just makes good sense, doesn’t it?

Where to Find Life Insurance for Business Owners?

You always want to talk to an independent agent like myself.  We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.  If you need life insurance for both your family and your business we can give you valuable advice and help you to find a policy that suits you.

Whatever your needs or questions then please call me direct at 877 – 966 – 9383.

Life Insurance for Cancer Patients

Can’t find life insurance because you have been diagnosed with cancer?

There are life insurance policies available even if you are currently being treated for cancer.

Most people will not be approved for traditional life insurance policies if they are currently undergoing treatment for cancer.

What Type of Life Insurance is Available for Cancer Patients?

If you currently have cancer and are receiving treatment, or have been recently diagnosed with cancer, there is one life insurance option available to you.

It is called Guaranteed Issue Life insurance which just about anyone can qualify for regardless of their health, age or physical disability.

In most instances, you will not even be required to take a medical exam or even answer a medical questionnaire. You simply apply and in the majority of cases, you will receive immediate approval.

How Guaranteed Issue Life Insurance Works

Guaranteed life insurance is designed specifically for people in your situation as everybody should have the opportunity to buy life insurance to protect their loved ones financially.

This type of policy is available in both the form of a term insurance policy and a whole life policy.  The term life insurance policy is more affordable because it pays out death benefits only. A whole life policy also contains a cash accumulation feature so it is more expensive.

Does Guaranteed Issue life Insurance Cost More?

The answer is yes, but it is not as expensive as you might think.  The main reason that this type of policy costs more is that the life insurance company is insuring you without the benefit of a medical examination.  Because their information is much more limited in how they rate a person, they are taking more of a risk to insure you.

Another thing to keep in mind is that there are usually much lower coverage amounts available then what you would otherwise be able to buy.  Depending on the insurer, you can buy coverage amounts usually ranging from a minimum of $ 1,000 in coverage up to as high as $50, 000 in coverage.

Most insurers top out their maximum coverage at around $20,000 or $25,000 dollars.

Sample Quotes for Guaranteed Issue Life Policies

I did some research and have provided some sample quotes for males in the age range of 50 – 80 years of age for different coverage amounts ranging from $5,000 to $20,000.

Guaranteed Acceptance Life Insurance Quotes for Male Aged 50 – 80

Monthly Rates

Age                            $5,000 Policy       $10,000 Policy        $15,000 Policy       $20,000 Policy

50 Year Old Male             $21.46             $40.66                          $59.87                   $79.07
55 Year Old Male             $24.21             $46.16                          $68.12                   $90.07
60 Year Old Male             $27.90             $240.00                        $79.21                  $104.87
65 Year Old Male             $33.01             $63.77                          $94.52                  $125.28
70 Year Old Male             $40.62             $78.98                          $117.35                $155.72
75 Year Old Male             $51.62             $100.99                        $150.31               $199.73
80 Year Old Male             $67.52             $132.79                        $198.05               $263.32

(Disclaimer: These quotes are good as of April 2, 2013)

…(continue to part 2)

Some Basic Question About Life Insurance

If you don’t know anything at all about life insurance and how it works, then this introductory primer will answer all your most basic questions.

I will explain the basic differences in the types of policies and how to buy the right policy for your needs.

You will also learn how to decide on how much you need and how to apply for life insurance.

Let’s begin.

What is Life Insurance?

A life insurance policy is a contract between you and the life insurance company.  The terms of the contract are spelled out in the life insurance policy which you will receive when your application is approved.

Basically, the contract consists of an agreement where the life insurance company will pay an amount of money (known as the death benefits) which you (called the insured) specified or selected should you die while the policy or contract is in force.

The amount of money or death benefits, which can be anywhere from $1,000 to $10,000,00 or more, and any amount in between, is the amount of money which is payable by the life insurance company.

These death benefits are payable to a named beneficiary(s) that you select, and will be the person(s) who receive these death benefits.  A beneficiary can be one or several individuals and are generally family members such as your spouse, your children or other siblings.  When naming a beneficiary, you should always use the full name of a person you designate.

The death benefits will be paid as a lump sum which is non-taxable to the beneficiary.

Your Responsibility as the Insured

The second part of the contract involves your role or obligation.  To keep the policy in force, you will be obliged to pay the insurance company a specified amount of money which is called the premium.  You must always pay this premium as specified in the policy.

The premium can be paid as a lump sum, as an annual or semi-annual payment, or on a monthly basis.

Reasons to Buy Life Insurance

The main purpose most people life insurance is to be able to provide financially for their families should they unexpectedly die.  Some specific reasons to buy life insurance include:

  • Income replacement especially if you are the main breadwinner in the family
  • Be able to pay for your mortgage if you just bought a home
  • Debts such as personal or business loans, credit cards
  • Funeral and death expenses
  • College or university tuition of your children
  • Medical expenses if you develop a life threatening or long term illness
  • Retirement
  • You have an estate or trust
  • Use as charitable donations

How Much Does Life Insurance Cost?

Life insurance is cheapest to buy and most affordable when you are younger and becomes increasingly more expensive as you age.  You will be required to either take a medical exam or at the very least answer a medical questionnaire when you apply for a policy.

The cost of life insurance depends on a number of variables such as your age, gender, current state of your health, your lifestyle, whether you are a smoker or non-smoker, your family medical history, your professions and hobbies plus a number of other variables.continue page 2……

How Level Term Life Insurance Works

Are you wondering how level term life insurance works?

If you’re thinking about buying life insurance and only need life insurance coverage for a specific number of years then this might be the ideal policy for you.

Level life term insurance is a very straightforward type of life insurance and is the most basic form of life insurance available.

What is Level Life Insurance?

Level life insurance is term life insurance.  This type of life insurance pays death benefits only.  These policies do not contain a savings component like you would find in permanent insurance such as whole life or universal life for example.

Although level term insurance can cover you for your lifetime you buy it for specific time frames such as 5, 10, 15, 20, 25, 30 years.  Each period or time frame is called the ‘term’ which is how term insurance derives its name.  You can also buy policies which are age specific such as 55 or 65 years of age for example.

The first thing you have to determine is the amount of coverage or death benefits you feel you would need to achieve your purpose or reasons for buying life insurance.  You then select the length of time or term you feel is right for your life insurance needs.

Once you have selected the amount of death benefits, then this is the amount of death benefits your beneficiary(s) would receive should you die during the term you have selected.  The death benefits remain level or constant throughout the term of the policy you have purchased.  This is why it is called level life insurance because the death benefits remain constant throughout the lifetime of the term.

So, if you buy a $500,000 level term policy for a 20 year term and were to die unexpectedly in the 19th year of the policy, and providing you have kept up with the premiums and not allowed the policy to lapse, then the person(s) you have named as a beneficiary will receive a non-taxable lump sum payment of $500,000 dollars.

On the majority of policies sold by insurers, the premiums are guaranteed for the term you have bought.  This means that if your insurer was charging you $20.00 per month for a premium when you bought the policy then that is what you will still be paying in the final year of the term.

However, there are some insurers which do not guarantee the premium and if this is the case, then they have the ability to increase the premium.

To ensure you don’t get caught with having to pay higher premiums, it’s always best to ask your agent if the premiums are guaranteed.

What Happens if the Term Expires?

Most term policies sold are renewable.  Before the expiration date on the term occurs, the life insurance company will ask you if you want to renew the policy.  You can choose to buy the same length of term or you might opt to buy a shorter term and alter the death benefits.

Always Pick a Suitable Term

There is one thing you should remember if you go to renew your term level policy, and that is the premiums will be quite a bit more expensive.  The one important point to keep in mind when buying a level term life insurance policy or any other policy is that life insurance becomes more expensive to buy as you age.….(continued on page 2)

Life Insurance with Guaranteed Acceptance

Have you been turned for life insurance because of a serious illness, physical disability or because you are elderly?

If this describes you and you need a life insurance policy, then there is a solution available.

It’s called Guaranteed Life Acceptance and is also sometimes known as a Graded Death Benefit

What is a Guaranteed Life Acceptance Insurance Policy?

This is a type of life insurance policy offered by many insurers where you will be automatically approved for a life insurance policy regardless of the state of your health or age.

There are many insurers who offer this type of policy and the best part is that many insurers, but not all of them, you won’t even have to submit to a medical exam or even be asked medical questions to qualify for coverage.

All you have to do is apply and you can expect immediate approval when you apply.

Who Should Buy a Guaranteed Life Acceptance Policy?

This type of life insurance is suitable for anyone who has been turned down for a policy because of the following reasons:

  • Life threatening or terminal illnesses such as cancer, heart disease, or any other form of illness where you cannot buy a traditionally available form of life insurance policy
  • Physical disability such as extreme obesity, a genetically inherited disability or a disability which occurred from an injury or accident
  • Age such as if you are elderly with or without an accompanying illness or disability

Most insurers that offer this type of policy may or may not only ask you a few basic medical questions.

Are There Any Restrictions?

Some insurers may not cover you if you are terminally ill, have HIV or AIDS, or are residing in a hospital or long term facility.  Other insurers have no such restrictions.

Another restriction is that some insurers require that you fall within a certain age category such as between ages 40 – 80 for example.

You should also be aware that these types of policies also generally come with a much lower amount of coverage than what is available with other traditional policies.

Depending on the insurance company, you can generally find death benefits coverage amounts which range anywhere from between $1000 dollars to as high as $50,000 in coverage although most policies range between $5,000 – $20,000 in death benefits coverage.

Will I Always be Covered?

It depends on the life insurance company.  Most companies sell this policy as a ‘Graded Death Benefit’.  This means that your beneficiary will likely not be entitled to the full death benefits for the first 2 years, although some insurers will pay on the policy in case of accidental death in those first 2 years.

Your beneficiary would only receive an amount equivalent to the premiums you paid up to the time of their death if you should die within this 2 year time frame. (Some insurers may also pay a nominal interest amount such as 5%)(continued on page 2)……..