The most affordable type of life insurance is 10 year term.  This insurance is perfect for a young family, who needs some protection, but can’t afford to pay much.  It’s amazing how much life insurance someone in their 30’s or 40’s can purchase for less than $20 bucks per month if they’re in good health, and applying for 10 year term.

10 Year Term Explanation

Most term policies actually guarantee coverage up to age 95 or longer.  However, the premiums are only guaranteed to stay level for the first 10 years, if you select a 10 year term policy.  That means your premiums will stay fixed during the initial 10 year term, and in most policies, will rise annually thereafter.

There are various term lengths, such as 20 or 30 year term, which means the premium stays fixed for a longer duration, and remember, the 10 year term rates are the lowest.  For more information on alternatives to the 10 year term, see our post on Types of Life Insurance.

10 Year Term Life Insurance Quotes

*Note: All prices are MONTHLY as of 2/17/12, based on healthy, preferred plus, non smoker, and are subject to change.

Buy/Sell Agreement or Key Man Insurance

Many business partnership arrangements require term life insurance on each partner, in the event that if he or she dies, the remaining partner/s will have liquid cash from the life insurance benefit to buy out the decedent’s family and or heirs of his or her share in the company.

10 year term life insurance is a popular choice for buy/sell contracts, since it’s the most affordable, and most businesses figure they either won’t be working together that long, or will probably restructure the ownership agreement by the end of 10 years anyway.

Estate Planning using 10 Year Term

With the current “Band-aid” on estate taxes and the exclusion amount, some people aren’t sure what their long term estate tax implications could be.  A 10 year term policy with a conversion to permanent insurance may be a good solution for high net worth individuals whose estate value is approaching the current taxable threshold, but now quite there.

For example, a married couple with an 8 million dollar estate, with a properly structured AB Trust or bypass trust, may not owe any estate taxes if they were to both die in 2012.  However, if the current estate tax exemption (currently 5 million per individual) were to drop to, say, 3 Million per individual, then this couple would have an estate tax problem.

Since we don’t know what the future holds for estate tax legislation, some affluent families are purchasing 10 year term as a “wait and see” type strategy.  If the exclusion amount gets permanently set at 5 million per individual, or if estate taxes are done away with completely, then these wealthy individuals may decide to drop their coverage.

On the other hand, if the exclusion amount is permanently decreased, at least the policyholder will already have a policy in place (the 10 year policy), and could decide to convert it to a permanent policy such as guaranteed universal life or whole life.

You may also want to see this article for more information on using life insurance to avoid estate taxes and life insurance trusts.

Apply for Term Life Insurance

To get started, simply call us at 877-996-9383 or get an instant quote using the form on the right.

Let me teach you a quick trick I commonly use to calculate how much life insurance my clients need.

(Annual Income Needed) divided by .05

So if you make $70,000 per year, and need to know how much life insurance is needed to generate a $70,000 income to your spouse upon your death, the calculation looks like this.

$70,000 / .05 = $1,400,000  –  You need 1.4 Million

With 1.4 Million coverage, your spouse could take the death benefit and invest it.  If your spouse can earn on average 5%, it will generate $70,000 every year, and he or she could live off of the interest.

Other Income Replacement Calculations

Income Per Year Needed                 Amount of Life Insurance Needed

$30,000                                                 $600,000

$40,000                                                 $800,000

$50,000                                                 $1,000,000

$75,000                                                 $1,500,000

$100,000                                               $2,000,000

Please note with this method, your spouse could theoretically live off the interest without the principal ever depleting.  I realize this may sound a bit excessive to some people, so if you want to calculate how much life insurance is needed to replace your income for a fixed number of years, such as for 10 or 20 years, please use our life insurance calculator.

Now, I realize 5% is a bit optimistic for where interest rates are current day, but I’m talking an average over a long period of time.  If you want to calculate a more conservative current interest rate, divide the annual income needed by .03 or .04.

What about Investments, Funeral Expenses, and Mortgage?

I realize some of you may have retirement funds, pension money, or other insurance to factor in.  If that’s the case, simply subtract the amount of liquid assets available upon your death from the amount of life insurance needed.

Perhaps you’re trying to accomplish a different goal than replacing income, such as paying for funeral expenses, paying of debt, or a home mortgage.  This gets a bit complicated, and I don’t think there’s any objective way to calculate the exact amount any person needs.

A simple rule of thumb here, though, is to add up the bills you want paid off, and then use the chart above to calculate how much additional life insurance would be needed for income replacement.  Obviously, if you leave your spouse with no debt and no mortgage payment, the amount he or she will need per year to replace your income is lower.

Adjusting Life Insurance Needs for Inflation

Inflation puts a wrench in things.  If you desire to provide a guaranteed income stream for life, obviously the longer that income stream stays fixed, the less buying power that money will have.

The simple way to adjust your life insurance need, using the first calculation we learned, is to subtract the inflation rate you expect from the interest rate you expect to earn.  So if you think your beneficiary can earn 5%, but inflation will be 2.5%, then you will only net 2.5%, and that’s the number to use in your calculation.  Using our $70,000 income need:

$70,000 / .025 = $2,800,000 life insurance needed (adjusted for inflation)

If you need life insurance to accomplish a specific goal that’s not covered above, such as key man life insurance or life insurance to pay estate taxes, it’s best to give us a call for an individualized needs assessment.  877-996-9383

Recently, a client called in who had applied with State Farm Life Insurance, and been approved at “Non Tobacco”.  His agent said he couldn’t qualify for a preferred rate due to his height and weight of 6’0, 238 pounds.

State Farm Life Insurance Quotes

For a 20 year term policy for $250,000, he was going to have to pay $67.43 per month through State Farm.  He’s 42 years old.

Hearing this, I immediately knew we could obtain a better offer through a company with more generous build guidelines.  I found the most liberal was Genworth Life Insurance, who at 6’0, will go “preferred non tobacco” up to 242 pounds… their second best rating.  My quote was $26.13 per month, a 62% savings!

I began wondering why anyone would buy life insurance through State Farm.  Clearly someone who is overweight or that has health issues would benefit more by speaking with an independent agent, but what about the average Joe?  After all, not everyone has an impaired risk life insurance case where big savings can be found by shopping.

What’s the benefit for him to buy, State Farm Term Life Insurance, for example, rather than a term policy through Banner Life Insurance?  Well, I did some research, and was pleasantly surprised with my findings.

State Farm Life Insurance Ratings & Stability

First of all, let me say that I’m sure most people associate State Farm with home and auto insurance.  Everyone knows the company who is “like a good neighbor”, has more home and auto insurance policies in force than any other property & casualty provider in the U.S.  But did you realize that State Farm also boasts having the second most life insurance policies in force of all U.S. carriers?

This is according to my friend and fellow Rotarian, Deryk Inn, a State Farm agent here in San Diego, Ca.

I was also surprised to learn State Farm is rated A++ by A.M. Best, which is the best rating the agency can give a company out of 16 ratings.  This is not to be scoffed at.  I am personally contracted with over 20 insurance companies, and none of them have a rating higher than A+.

Even some of the giants like Prudential Life Insurance, ING, and Met Life do not boast as high of a rating for financial stability.

Deryk Inn’s opinion echoed these findings when I asked him about how State Farm’s life insurance options stack up against the competition.  He said, “Usually when I’m talking with a client, if they say they’re going around getting quotes, I talk about the strength of the company.  We’ve been around for 90 years, and one of the biggest things in life insurance is the assurance that if you do die, your company will be able to pay the death benefit.”

Types of State Farm Life Insurance Policies

They seem to offer a full line of products.  They have everything from your run-of-the-mill 10, 20, and 30 year term policies, to whole life, universal life, and even a 15 and 30 year mortgage life policy, which decreases in coverage as you pay down your mortgage balance.

Their term policies are convertible to their permanent line of products, which is in line with all the big companies.

The only disadvantage I saw in perusing their term life insurance line was that the maximum age an applicant could purchase 30 year term was 45.  That’s very low.  Most companies sell 30 year term up to age 55 or 60, and Genworth will sell it all the way to age 65.

The One-Stop Shop

Clearly the other advantage of purchasing life insurance through State Farm is that you can bundle all your policies through one company, one agent.  This may or may not always save you money, but it almost certainly saves you time and aggravation.

That’s the beauty of buying Allstate Life Insurance if you also have your car and home through them, or Farmer’s Life Insurance if you have your vehicle and home through them.  You never have to ask, “Honey, who’s our life insurance agent?”  One-stop shop.

State Farm’s Life Insurance Pricing

The other thing when considering State Farm quotes is that not everyone has health issues.  In the case of health issues, such as a history of heart disease or diabetes, you should really consider coming to an agency like ours who can shop your case around to find the best deal.

But let’s say you’re a 32 year old, healthy male with no medications or health problems, which is probably the case with most 32 year olds.  In this case the State Farm Life Insurance quote doesn’t differ too much from its competitors.  State Farm’s quote for 500K, 20 year term is $31.30.

You could shave about 45% off this by going with Banner Life Insurance at $21.88, but you’re still only talking about a $10 savings per month.  Is that enough to make you leave the relationship you have with your current agent to seek a life insurance quote elsewhere?  For some people, yes.  Others may just prefer the convenience of the one-stop shop.

One on last note I also searched through various State Farm Insurance Customer Service review sites, and found their service was ranked top class across the board.

In summary, if you’re young and healthy, maybe it makes sense to stick with State Farm for Life Insurance.  If you’re in the San Diego area, give my buddy Deryk Inn a call at (619) 469-2141, and he’ll be able to help with all your insurance needs.

But if you have any health issues, take blood pressure medication, or are overweight, give us a call to see what we can do at 877-996-9383.

I’ve been in the insurance industry for 7 years, and have heard some good things and bad things about Monumental Life Insurance.  We don’t offer their products because we are an independent agency.  We prefer to keep it that way so we can use any insurance carrier we want for a particular client.

This is not an option with Monumental, unfortunately, since they require their “career agents” to be captive, meaning they can only sell Monumental Life Insurance policies.

A bit of history on Monumental Life Insurance

They’ve been in business since 1858.  They have quite an impressive line of insurance related products, including term life, interest sensitive whole life, cancer policies, and accident insurance.  Generally speaking, due to their age and great size, they are considered one of the most respected life companies in the U.S.

A few Positives – Financial Strength

They are rated A+ by the rating agency A.M. Best, which is issued to those carriers with superior financial health.  They also have over $88 billion of insurance in force, and over $32 billion in assets, both as of 2010 financial statements.  Compare that to the insurance giant, Prudential , whose life insurance company (Pruco Life) has just over $22 billion in assets.

Another advantage of doing business with Monumental is their parent company is Aegon, same as parent company for Transamerica Life Insurance, Stonebridge Life Insurance Co.  This is a multi-national, enormous company, so it’s hard to think of Monumental ever becoming insolvent under the Aegon Group.

Monumental Products – Term and Whole Life

They seem to offer a wide variety of products and payment plans.  Of course Monumental, has your traditional term life insurance policies, but nothing out of the ordinary such as 25 year term life insurance, like ING Reliastar has.

Many reviews pointed to the fact that their whole life policies do grow nicely as far as cash accumulation is concerned, and at guaranteed rates to boot.

Some Complaints I’ve heard about Monumental

First of all, I don’t put much stock in what you read on many review sites, since these are filled with disgruntled customers.  In all honesty, it’s not a fair assessment, since “happy” customers don’t tend to write reviews… only the ones who are upset.

But go read any of the agent forums out there.  A lot of agents are dissatisfied with Monumental.  If you want to know the truth about a company, don’t read the customer reviews.  Read the agent reviews.

These are the people who see the inner workings of the company.  Glassdoor.com is one such review site offering unbiased reviews from former agents.  Most of the reviews are between 3 to 4 stars out of 5.  Many clients also listed smoker life insurance ratings as much higher than the competitors.

Most list cons of poor training for new agents, terrible hours, and unrealistic sales quotas.  If there’s one thing I’ve learned from speaking to friends in insurance and money manager postitions:  sales quotas hurt the customer.  This is because agents must sell.

When agents must sell, the unfortunate reality is many agents get cornered into a tough situation, where they must produce, and will do anything to make a sell… even recommend products that are not right for the client.  Perhaps they will recommend whole life when only term protection is needed.

Many former, and even current career agents also cite “unethical business practices” at Monumental.

Other Reviews

If you enjoyed this review and found it to be unbiased, please also see our reviews on Ohio National, as well as the giant Monumental Life Insurance, and leave a comment letting us know your thoughts.

For a life insurance quote you can count on, use our quote form on the right.  Note: We are NOT Monumental Life Insurance.  This is simply a review of the company.  Thank you for interest.

25 year term life insurance is a type of policy that offers guaranteed level premiums for a 25 year term duration.

After the initial term has expired, the premiums will increase mightily, so if you need coverage longer, you might consider a 30 year term or guaranteed universal life contract as an alternative.

Interesting Fact… Who Sells 25 Year Term Life Insurance???

Very few.  I represent dozens of life insurance companies, and many of the large carriers do NOT offer a 25 year term option, such as Genworth, Prudential, and Met Life.  All of the above offer 20 or 30 year policies, but not 25.

The companies who do offer a 25 year term policy are:

1. Savings Bank Life – the product name is “25 Year Term Guaranteed 25″
2. American General – Product name is “Select-A-Term 25″
3. ReliaStar/ING – Product name is “TermSmart 25″
4. Transamerica – “TransTerm UL 25″.  Note: this is a term/universal life hybrid, which means at the end of the 25 year initial term, the policy automatically “converts” (you might say) to the underlying universal life policy structure on which it is built.
5. Protective Life – Product’s name is “Secure T 25 Year No Lapse UL”, and the same note applies here as to the TransTerm UL 25 above.

… and there may be a few more, but I don’t represent them.

Cost of a 25 Year Term Policy

As for cost, it will probably cost a bit more than 20 year term life insurance and a bit less than 30 year term.  You can quickly get a quote using our form on the right.  No invasive health questions.  Just estimate your health rating and you’ll see the 25 year term quotes on the next page.

Be Careful! — Fewer Options means Less Competition

One word of advice.  If you have any type of health history or any other risk factors such as hazardous occupation, travels, or hobbies, a history of drug or alcohol abuse, or mental health disorder such as PTSD, bipolar disorder, anxiety/depression, be very careful about being narrow minded about “having to have” a 25 year term life insurance policy.

Remember that since only a handful of companies offer it, you may be shooting yourself in the foot by only having these companies to apply to.  It’s very possible that a different company (such as Prudential, Genworth, or Met Life) would offer you a lower rate class than the companies offering 25 year term.

That could mean that for the same price or lower, you could purchase a 30 year term policy instead.  Keep your options open and be sure to speak with a knowledgeable agent about your needs, as well as your health history.

We at Huntley Wealth Insurance are also happy to help with how to buy 25 year term insurance if you call us at 877-996-9383.  Thanks for reading our article.  If you liked it, please share on Facebook or Google Plus 1.

In most cases, you can purchase life insurance policies for your parents.  The most popular types of policies for parents are term life insurance, whole life insurance, and second to die policies.  Here is some of the information you’ll need to know if you are a child searching for your parent/s.

Is Buying Life Insurance on My Parents a Good Deal?

Prior to age 85, it seems life insurance can still be purchased for a relatively affordable premium.  For example, you would pay $14,560 per year for an 83 year old mother in good health for a $250,000 policy guaranteed for life with North American Co for Life and Health.

If we assume she has a life expectany of 10 years, you will have paid $145,600 into the policy after 10 years.  If she were to pass away at any point before that, it seems to be a great rate of return on your premium.  You certainly wouldn’t be able to match that kind of return in any alternative investment.

If your parents are younger than 80 and in good health, life insurance is an incredible leveraging tool, and makes even more sense than in the example above.

Honestly, life insurance loses leveraging power after age 85 and is pretty expensive.  See the quote form on the right for an instant quote.

Ownership of Policy: One of the first things I ask the child when he/she calls me is who would be the owner and payor of the policy.  In some cases, children are simply calling on behalf of their parents who are not internet savvy, and are doing nothing more than helping their parents, who don’t know how to buy life insurance, with the quoting and application process, but that the parents will be paying for the policy.

In other cases, you have children who will be the owner of the policy, pay the premiums, and also be the beneficiary of the death proceeds.  Usually this is okay as long as the child can prove an insurable interest. This is 100% legal, but will require approval by the insurance company.

An insurable interest means that the child would be somehow financially affected by the death of his or her parents.  So if your parents have a big mortgage on their home, and you don’t want to inherit their debt, life insurance may be in order.  Or if you are responsible for your parents funeral and burial arrangements, life insurance may be used for this.

How Much Life Insurance Can I Purchase on My Parents?

The trick is to apply for a reasonable amount of coverage to protect you from financial hardship.  The idea is to be indemnified, or made whole… not to get rich off your parents’ death.  So if your 81 year old mother is living with you, and lives off social security, and provides no financial benefit to your family, and has no debt, you would not, for example, be approved for a 1 million dollar life insurance policy.

In most cases, a $100,000 life insurance policy for parents is approved without hitting any barriers.  Beyond this, financial justification will be required.

Requirements to Purchase Life Insurance on Your Parents

Your parents will first, need to be aware that the policy is being taken out on them.  It’s impossible for them not to know, since they will need to sign the application as the “primary insured” or “primary applicant”.  Most policies will also require a medical exam.  It’s really not too complicated.  You just complete an application, (sometimes the medical exam), and then wait for approval.

Types of Life Insurance for Parents:

Term is the most common type of insurance sold today, because it offers the lowest cost for level premiums during the duration of the term.  You must consider your parents’ life expectancy, however, if you’re considering term.  You don’t want to get a 10 year term if you actually need the coverage for as long as they live.

In the latter case, whole life insurance, or its little sister, universal life insurance (a lower cost policy offering coverage for life), may be more suitable for you.  You can get quotes in our quote form on the right to age 100 or 121, which are guaranteed universal life insurance policies.

Another popular choice for parents is a second-to-die policy.  As the name indicates, this policy only pays out one death benefit, upon death of the second parent.  This type of insurance is popular in combination with estate planning and life insurance trusts, but not necessarily.

Please note if your mother or father have health issues, please see our post on impaired risk life insurance, for details on how we are able to provide affordable life insurance to our clients with history of stroke, heart disease, cancer, diabetes, etc.

For the best term life insurance prices on your parents, or any other type of life insurance, it’s best to speak with a knowledgeable professional, who can discuss your options and pricing with you.  You may get a quote using our form on the right or by calling us at 877-996-9383.

I’ve been contracted to sell Ohio National’s products for three years now, and I’m contracted with a dozen or so other life insurance companies, so I think that makes be the ideal person to write an Ohio National Life Insurance review, as I can compare them to other carriers, and discuss the pros and cons of going with Ohio National.

#1 Advantage of Ohio National Life Insurance – Financial Stability

During these economic times, I get asked more and more frequently about a company’s financial strength and/or ratings.  After all, who wants to pay premiums for years into a life insurance contract, and worry about whether the company will be able to make good on a death benefit payout?

Fortunately, I never have a problem “selling” the stability of Ohio National.  They’ve been in business over 100 years (just celebrated their 100^th anniversary in 2009, in fact).  And even after all that time, they are still a growing, vibrant company.  They’ve somehow managed to grow their individual life sales business for a remarkable 21 years straight.

Also they have over $30 billion in assets, and are rated A+ by A.M. Best, their second best of 16 ratings, which means their ability to meet ongoing claims obligations is “superior”, in the opinion of A.M. Best.  To compare their company size to a large cap insurance giant, Ohio National is pretty small.  For example, ING has over $362 Billion of assets under management.

Having said that, Ohio National still has a wonderful, successful history, and I’d feel comfortable recommending their products to anyone.  For more information, click here to Review Ohio National Life Insurance Co.’s history and financial info.

No Gimmicks – No Games

When you learn about the inner workings of how some insurance companies manipulate their whole life and universal life illustrations to show tremendous cash value growth, Ohio Life is like a breath of fresh air.  They don’t play those games.

Many other companies as of late, when needing to generate revenues, have increased their cost of insurance by increasing mortality expenses, which forces clients to add more premiums.  Ohio Life Insurance hasn’t raised mortality expenses ever, and has lowered them three different times.

Advantage #2 – Excellent Term Life and Whole Life Pricing

And what Ohio National Life Insurance review would be complete without a discussion about pricing?  Well, Ohio National is consistently among the top 10 in pricing for term and whole life insurance on Term4Sale, as well as in my quote results as provided by Compulife, if you use our quote form on the right.

Please also note that Ohio National’s offerings are not limited to life insurance in Ohio.  Their products are approved in most states.

Intangibles that Make Ohio National Great

One thing I like about Ohio National as an agent, is they offer a deferred compensation plan for their agents.  I don’t know of any other insurance company who does this.  Basically, if you meet a certain level of annual premium or sales, then they contribute to a deferred comp plan on your behalf at some percentage of your sales.  I’ve never done enough business with them to qualify yet, since most of my business is submitted through Genworth and Prudential, but the point is they take care of their agents, and I think that’s just good business.

A Couple Negatives… Possibly

The only issues I have with Ohio National is that their underwriting guidelines tend to be a bit more strict than at other companies.  So if you get a quote for a 44 year old healthy male, for 10 year term life insurance, and find that Ohio National shows up as having the lowest quote, assuming you can qualify for their best health class, just be careful to check with an agent to make sure you can actually qualify for that rate.

Here’s what I mean.  If you review Ohio National’s underwriting guidelines, you’ll see that they don’t currently allow blood pressure treatment within their Super Preferred class.  Also, their weight chart is not very forgiving.  So say you take Lisinopril and have well controlled high blood pressure, and are 5’10, 200 lbs, you’d have two reasons you couldn’t qualify for Ohio National’s best rating… your hypertension medication and your weight, since their max weight for a 5’10 person is 190 lbs for their best class.

If you applied to a company with more liberal guidelines, such as Genworth, you’d be able to qualify for their best class, and Genworth’s premium would end up coming in lower at their best class than Ohio National’s premium at their 2^nd best class.

To be fair, you can argue that the reason Ohio National has been successful for so long is because they are more careful with their underwriting.  So even though they may not “give the farm away”, isn’t that actually somewhat a good thing for their policyholders, to know that they carefully and conservatively assess the risks they’ll insure?

No Internet Leads

The other issue I have with them is they don’t allow sales that come in from internet leads.  So for example, Select Quote or Accuquote don’t quote Ohio National, as well as many other life insurance agencies who primarily generate their leads online.  We do have a contract with Ohio National, however, and leads from our website have been approved as acceptable for Ohio National.

Maybe you can guess why.  How serious is the Google searcher for “cheap term life insurance quotes” about their life insurance search?  These type of internet shoppers get several quotes, and more competition leads to a lower placement ratio.

Again, I can defend Ohio National for their stance here.  Internet leads are not always the best quality leads.  A lot of the sales end up getting withdrawn.  So Ohio National has noticed that trend in their new business department, and one day said: ‘Hey, we’re spending time and money processing all these cases, and far too few of them are panning out’, so you could argue they made a good business decision in banning internet lead business.

If you liked this review, please also see our Monumental Life Insurance review and leave a comment, “Like” the article or Google Plus 1 it please.

Overall, I’m very happy with Ohio National, and would recommend them to anyone, including my closest friends and family, and anyone reading this post.  To request a term life insurance quote, please use our form on the right.  If you have any questions about my Ohio National Life Insurance Review, please call me at 877-996-9383.

At Huntley Wealth Insurance, we help males and females alike purchase affordable term and whole life insurance to provide valuable protection for their families, businesses, and estates.  While the name of this particular website intends to attract a male audience, we DO provide quality advice and pricing for women needing life insurance as well.

Why Women Need Life Insurance – And Why They Typically Don’t Have It

At Huntley Wealth, approximately 30% of our life insurance clients are women.  This statistic speaks to the importance of the working wife and/or mother in modern times.  Today, many women provide a valuable, irreplaceable income for their families, which, if lost due to sudden death, would leave these wives’ and mothers’ families having to cope with one less income.

That’s where life insurance comes to the rescue.  Life insurance is commonly used to insure future earnings.  For example, if a woman earns $75,000 per year, and will do so for the next 20 years, she might purchase a 20 year term life insurance policy with a death benefit in the range of $1 Million to $1.5 Million.  If the death benefit earned 5%, her surviving husband or children could draw 50K to 75K from the death benefit to pay bills, the mortgage, and provide for needs without the funds ever depleting.  What would the surviving family have done without these funds?

The problem with modern families is that women generally have less life insurance than men, according to MetLife’s most recent “Employee Benefits Trends Study” in 2011.  The study also showed that women are more concerned about the impact their sudden death could have on their families than men, which is wonderful, and in my opinion, as a man with a wonderful, loving wife, I can certainly understand that.  So why aren’t females properly insured?

The key problems, or myths, I think, revealed in this study and others have to do with cost and simplicity of the life insurance process.  A study from Nielsen/Claritas proved that 44% of high income women (earning in excess of 50K per year) believe that life insurance costs more than they can afford.  Furthermore, 67% of the same women believe that selecting a life insurance product is a complicated process.

Life Insurance Costs Too Much

In most cases, life insurance is very affordable… dirt cheap even!  First, women pay less than men for life insurance, since their life expectancy is longer on average.  If you are in good health, let’s just say you can probably afford life insurance at some amount.  For example, I’ve provided quotes below for $500,000 of coverage.  Of course, your coverage could cost even less if you purchase a lower face value.

Quotes for Female, Excellent Health, $500,000 Coverage, Non Tobacco User

Age                                    10 Year Term             20 Year Term             30 Year Term

Female Age 30                          $13                                $18                             $27 – Per Month

Female Age 40                          $16                                $26                             $42 – Per Month

Female Age 50                          $35                                $59                             $97 – Per Month

Female Age 60                          $78                                $148                           $213 – Per Month*

*Note that these quotes are available as of 12/15/2011 and are subject to change.  Rates quoted would apply to female, non smoker, who can qualify for best class health classification.

The Life Insurance Process

For those of you who believe selecting a life insurance product is complicated, please allow me to outline the steps to selecting, applying for, and purchasing a life insurance policy.

1. Speak to a knowledgeable independent agent about your health history.  If you take any medications or have a history of medical conditions, a good agent will know which companies will rate you at the best health classification, which will save you money.  Your agent should also be able to quickly and clearly explain the types of life insurance and how much is appropriate for your needs.  This should take about 10-15 minutes over the phone.  Call an agency like Select Quote, Accuquote, or our agency, Huntley Wealth.
2. The application process is straight forward.  At our agency, we take information (address, drivers license, legal name, beneficiaries, etc.) over the phone and send the application to our clients to sign.
3. After completing and signing the application, most insurance policies require a medical exam.  The cost of the exam is paid by the insurance company.  The exam typically includes blood and urine specimens.
4. After the medical exam, you’ll be approved typically in 2 to 6 weeks.  The time it takes to approve you primarily depends on whether or not medical records will be ordered from your attending physician’s office.
5. Once approved, your agent will forward your policy to you.  You send payment, and sign a form showing you received the policy.  Once all requirements are received by the insurance company, your policy will be in force, or effective.

The Met Life study reported women who do have life insurance typically are unaware of the type of coverage (i.e. term, universal life, or whole life) that they possess, and undervalue the amount needed to properly insure their lives to meet their families’ financial needs.  Please don’t fall into this category.  If you have a policy and aren’t sure what benefits it has, or if you need life insurance, please call us to review your needs at 877-996-9383.

If you’ve had a heart transplant, and have been shopping for affordable life insurance, you’ve probably found that your options are quite limited.

In most cases, all your traditional life insurance companies will decline your case as if you’re terminally ill.  It is truly unfair, considering that 50% of heart transplant recipients live more than 10 years after the surgery.  In recipients who live at least one year after the surgery, the prognosis is even better.

Our Insurance Solution for Heart Transplant Survivors

We have affordable options for heart transplant survivors, who have had the surgery more than two years ago.  Yes, it’s okay if you’re on the immunosuppressants, such as Rapamune.  This is expected.

As long as you can answer the following questions no, coverage is available in most states:

1. In the past 2 years, have you had a heart attack or stroke?

2. In the past 2 years, have you had or are you now awaiting an organ or bone marrow transplant?

3. In the past 2 years, have you been advised by a licensed medical professional to be admitted to a nursing home, hospice, extended care, or other special treatment facility, or are you now hospitalized?

There are a few other questions you have to be able to answer “no” to in order to qualify, but these are the major ones relating to your heart.

Life Insurance Quotes after Heart Transplant

Below please find quotes for a *graded death benefit, 20 year term policy, which organ transplant survivors can potentially qualify for if they can answer the questions above “No”.

Age                                          $50,000                         $100,000

Male Age 30                         $63.51                             $122.67 per month

Male Age 40                         $102.22                          $200.10 per month

Male Age 50                         $178.96                          $353.57 per month

Male Age 60                         $299.41                           $594.47 per month

*Quotes above are as of 12/8/11 and are subject to change.  Graded death benefit means the a percentage of the death benefit will be available during the first 2 years.  After 2 years, 100% of the death benefit is payable.

Also note that during the first two years, the full death benefit is payable if death is accidental, but not if death is caused by natural causes.

Available policies are 10 year term, 20 year term, and whole life insurance.

How to Apply for Heart Transplant Life Insurance

For the full questionnaire, to be sure you can qualify, give us a call at 877-996-9383.  If you can qualify, the application is simple.  It’s just a handful of questions, and no medical exam is required.  We can usually have your policy issued within just a few days.

Yes, you can still purchase life insurance between the ages of 81 to 85, and in some cases, even to age 90.  Before reading too much below, let’s look at some sample cost of insurance rates.

I always feel it’s best to discuss life insurance pricing when dealing with my clients over age 80, since sometimes the premiums are prohibitive.

The quotes below are for a male age 81, 82, 83, etc in good health, who can qualify for the best health classification, and purchasing a 10 year term policy.

Age                        $100,000              $250,000
Male Age 81       $395                       $903 per month
Male Age 82       $453                       $1049 per month
Male Age 83       $531                       $1245 per month
Male Age 84       $620                       $1468 per month
Male Age 85       $718                       $1719 per month

Note: Life insurance for people over 80 listed above are valid as of 12/2/2011 and subject to change.  Not available in all states, and based on Preferred Non Tobacco User.

How to Purchase Life Insurance at Ages 81 to 85

The key purchasing life insurance at age 82 or 84 years old, or any age for that matter, is your health.  If you’re healthy and have had no history of serious medical impairments, such diabetes, COPD, or heart disease, you will pay a lower premium than the policyholder who has had medical problems.

Having said that, be sure to speak to an experienced independent agent such as myself, Chris Huntley, about your health history.  A good agent will know which company will give the best health classification, and therefore lowest premium.

Try to stay away from insurance agents whose primary specialty is selling auto or home insurance, such as through Farmers Insurance or State Farm Insurance.  Their life insurance rates are rarely as low as the rates an independent agent can find for you using companies like Transamerica, Banner Life Insurance, or Prudential.

Many other large, A rated life insurance companies still offer life insurance beyond age 81 and age 82, such as MetLife, Protective Life Insurance, and Aviva Life Insurance.

Requirements to Purchase Life Insurance Over 80 Years Old

Whether you are 85 years old or less, you’ll need to take a paramed exam (medical exam), which is usually done at your home at the insurance company’s expense.  It will usually require blood withdrawal, urinalysis, and sometimes an EKG.  For large insurance amounts, other requirements may be ordered.

It’s important you realize the quotes above are for a 10 year term policy, which means the premiums will be level guaranteed for the first 10 years, but then will increase thereafter.  For guaranteed level premiums for life, the premiums will be higher by about 15% to 20%.

For example, a healthy man at age 83 can purchase a guaranteed $100,000 universal life policy to age 121 for $638 per month, a 20 percent increase over the 10 year term policy.  Of course the benefit is that after the first 10 years since the policy was issued, if the applicant is now 93 and still living, he’ll still have level premiums he can afford, whereas the 10 year term policy’s premiums may adjust to an astronomical number.

Purpose of Life Insurance in Your Eighties

In life insurance policies, the policy holder pays a premium (the cost of insurance), either on a regular basis, such as annually or monthly, or as a lump sum.  Of course the advantage to the owner is the peace of mind knowing that the insured individual’s death will not lead to financial difficulty for the deceased’s loved ones.

Estate Liquidity

Say you’re 85 years old and most of your assets are tied up in real estate holdings or business ownership.  Upon your death, your beneficiaries would be able to make better decisions about whether to hold or sell your assets if some liquid cash is available to them by way of life insurance.

No one who has spent a lifetime building wealth wishes for those assets to be sold off immediately upon their death due to a need for cash.  Suppose your estate is taxable and the trustee needs to raise cash to pay the estate tax bill, which by the way, is due 9 months from the date of death.  Life insurance can solve this problem.

Which Type of Life Insurance is Best at Age 81, 82, 83, 84, 85?

There are only two types of policies you can buy once you reach age 81 to age 85, which are 10 year term (sorry, 15 year is no longer available at this age), and whole life insurance.  With term life insurance you buy a limited, defined term such as 10 years.  Whole life, on the other hand, covers you for your whole life until you pass away, or in some cases, until you reach a specified age such as 100.

Since in your eighties, permanent or whole life insurance only costs a fraction more than 10 year term, I would recommend a permanent policy if you can afford it.  For example, if you have a male at age 82 purchase 10 year term, he might outlive the coverage if he can just live to age 93, which is certainly possible if this 82 year old is in good health.

Can I purchase Life Insurance for my Mother, Father, Parents?

Yes.  They must be aware of it, but you can be the owner of the policy, pay the premiums, and determine who will be the benefactor of the funds upon death, which could be yourself.  Please see our article about purchasing life insurance on your parents for more information.

Call us at 877-996-9383 for a no obligation quote for your parent or yourself for term life insurance or whole life.