What is the Process to Apply for Life Insurance?

Getting your life insurance application approved and in place doesn’t happen overnight.

If you’re applying for life insurance there is a process that takes place before you get approved for coverage.

There are 3 different ways that you can apply for life insurance and they each have their own timelines which you should know about.

Before I describe them in detail there are a couple things you need to remember before you apply for life insurance

1. Never let an existing life insurance police lapse when you apply.  Until you are approved, which will take some time, because you won’t be covered.  You will leave yourself exposed.

2. Always make sure you give yourself sufficient time for the policy to be reviewed, approved and put in force.

Life Insurance Application Waiting Periods

There are 3 waiting period scenarios for the 3 different ways a life insurance application can be made and they include:

  • Life Insurance Application with No medical Exam
  • Life Insurance Application with Medical Exam but No Medical Records Required
  • Life Insurance Application with Medical Exam but Medical Records Are Required

Let’s look at them in more detail.

Life Insurance Application with No medical Exam (7- 10 Days Before Policy is Effective)

There are 3 steps when applying for a life insurance application which does not require a medical exam and they include:

1. Applying for Life Insurance

You have to phone and obtain an application form which would be sent to you the same day. Ideally, you will fill out the application and FAX it back to me the same day.

2. Phone Interview

A no-exam life insurance application requires a brief questionnaire be completed which is generally done over the phone.  This generally occurs within 1-3 days from when we receive your application

3. Issuing the Life Insurance Policy

The life insurance company is sent the application and phone questionnaire and then has to review and approve the application. This takes roughly about 2 days.

The life insurance company, upon approving your application, will send you the policy by mail which could take 2-3 days for you to receive. You may then be required to sign the policy and either mail it back, or return by Fax or email. The policy will then come into effect either the same day of the following day.

(NOTE) You should be aware that no medical exam life insurance policies tend to cost more than life insurance policies which require a medical exam. The reason is because a medical exam gives the life insurance company more medical information which makes you less of a risk.

If you want a cheaper policy then you should follow the application process described in the steps below.

Life Insurance Application with Medical Exam but No Medical Records Required. (Takes up to 2 Weeks before Policy in Place)

The quickest time frame this process could take place as follows and occurs only when the life insurance company does not require any medical records.

1. Applying for Life Insurance

This considers same day application that you request which is sent to you and returned by you on the same day.

 2. Taking the Medical Exam

When we receive you application, we will contact a medical examiner and they will phone you to set up an appointment which is generally done within 1-2 days to make the appointment.. (continued on page 2)

Life Insurance for 18-30 Years: Important Considerations

If you’re between the ages of 18 and 30 years old, now is the perfect time to buy life insurance.

Why? Because life insurance is incredibly cheap and affordable for anyone in this age group.

Life insurance is an investment for your future, and even though you don’t think you need any right now, you’ll be sorry if you wait too late in life to buy it.

How Expensive is Life Insurance?

I did some research on term insurance. I looked at what it would cost per month to buy a $100,000 term life policy and compared the rates which you would pay for a 10 year term, a 20 year term, and a 30 year term policy. These rates are for someone who is a non-smoker and in good health

$100,000 Term Life Insurance Quotes for Ages 18 – 30

Age                               10 Year Term        20 Year Term          30 Year Term

18 Year Old Man                   $7.26                 $9.43                        $12.51
20 Year Old Man                   $7.27                 $9.43                        $12.51
22 Year Old Man                   $7.27                 $9.43                        $12.51
24 Year Old Man                   $7.27                 $9.43                        $12.51
26 Year Old Man                   $7.27                 $9.43                        $12.60
28 Year Old Man                   $7.27                 $9.43                        $12.78
30 year Old Man                   $7.27                 $9.43                        $12.86

(Disclaimer – These rates are effective as of January 15, 2013)

As you can see from the above quotes that when you’re young, life insurance is very affordable whether you buy a 10 year term or a 30 year term life insurance policy.

Why do I Need Life Insurance if I’m Between 18 – 30 Years of Age?

There are plenty of good reasons to buy life insurance at a young age. First and foremost is the simple basic fact that life is uncertain. Accidents happen, and anyone at any age can be stricken with a life threatening illness.

Many people in your age group are just finishing your education and are just starting your careers. This also the time in a young person’s life when you begin to settle down, marry, have children and invest in buying a home.

You also begin to rack up debt through personal loans such as to buy a car and other big ticket items. You also begin to use credit cards.

So, the question you have to ask yourself is this – What would happen if I were to suddenly die in an accident or get a fatal illness? Who’s going to pay for the funeral and death expenses, medical bills, credit cards, the mortgage and my loans?…(continue to part 2)

How to Find Low Cost Term Life

Low Cost Term LifeIf you’re looking to learn about how and where to find low cost term life insurance, then read on.

Term life insurance is clearly the cheapest and most affordable life insurance available.

However, since life insurance is an investment you will want to spend your money wisely, so I’m going to give some valuable tips and advise on how to find low cost term life insurance.

 

Brief Overview of Term Life Insurance

Many people are under the misconception that term life insurance only covers you for a certain amount of years.  That’s not really quite right.  Term life insurance covers you for your entire life.  However, you buy it in packages of time such as 10, 20 or 30 years for example, and that is why is called term.

At the end of the term, you will have the opportunity to purchase another term, or even it to convert your policy to a permanent insurance policy such as whole life, universal life or variable life.

Some companies allow you to buy term insurance until a specific age such as 55 or 65 years of age.

Term life insurance is purchased with certain strategies which you should keep in mind.  Since it covers death benefits only, you can consider the reasons for buying term life to include:

  • Income replacement to cover the needs of your family.  You might only need or want a policy to last you until a certain age or a certain period in your life such as when the kids leave home or up to a certain age such when you plan to retire.
  • You might to use a term life policy to use in place of mortgage insurance to pay for your home.  By the way, using term life insurance in place or mortgage of life insurance tends to also be much cheaper.
  • You might buy the policy to cover debts or use as a form of coverage for your own personal business to cover expenses, debts and whatnot.
  • You might want to have just enough to cover your children’s education.

So, as you can see, your reasons for wanting low cost term life can vary considerably and is dependent on individual needs and reasons.

Tips on Finding Low Cost Term Life Insurance

There are many companies offering low cost term life insurance policies, so keep the following in mind to find the best deal and at the best rate.

  • Buy only from reputable life insurance companies that are financially stable.  Many non-insurance companies exist out there selling cheap low cost term life insurance but you want to be very wary of these companies.  The company may not financially last the life of the term you bought, or they may not be reputable in paying out their claims.  It is vital you have confidence in the company from whom you are buying the policy.
  • Remember that although it might appear to be cheaper to buy a shorter term at the moment, it will cost you a lot more to renew that same policy as you age because life insurance becomes expensive as you age.  If you need the term insurance for 20 years, then buy the policy for that period because the monthly or annual premiums will be the same for the life of the term.
  • It is also cheaper to pay an annual premium over a monthly premium so you can save some money.
  • If you are married, and you both want to carry a term life policy, it is cheaper to buy a joint policy than two separate policies.
  • Remember that life insurance is based on your health, your lifestyle habits and your family history.  You may not be able to change your family history, but you can change your lifestyle such as losing weight, quitting smoking and other changes that will give you a better rating and save you money.
  • Get multiple quotes to compare costs.  Use an online quote calculator such as you will find on my site to get a look at how companies compare in terms of costs.
  • Be careful about being drawn in to buy extra riders on your term life insurance as that can raise the costs significantly and you may not necessarily require these riders.
  • Don’t buy directly from an insurance company or an agent that only represents one or a couple of companies.  Always use an independent agent to help you find the best rates and coverage that suits your needs.  An independent agent can research dozens of companies and find you cheaper rates even if you have health concerns or are a little older.

Bottom Line

Low cost term life insurance is available and can be easily found, but like any investment of your hard earned money, you should take the time to do some careful research to ensure you are getting the best buy.

 

Term Life Insurance Comparison – Which Term Should I Buy?

 Term Life Insurance ComparisonIf you’re thinking about buying term life insurance, there’s a few key things you should keep in mind.

For example, what period length of term insurance should you buy and why?

These are very important issues you need to give some thought about before you buy a term life insurance policy.

Determing Type of Term Policy

The main question you want to ask yourself is why you want the insurance in the first place.  The second question you need to answer is how long you will need it.

Term life insurance can be bought in increments of time such as 10, 15, 20, 30 years or it can be bought as being age specific such as when you reach age 65 for example.  The first thing to remember is that term life insurance is relatively cheap to buy when you are younger.

The older you get, the more expensive it becomes.  The premiums you pay when you choose a term remain the same for the life of the term.

So, if you’re thinking that you will start with a 10 year term policy for now, and will renew it later, it’s going to cost you a lot more when you renew than what you’re paying for it now.

How Long do You Need Coverage?

If you want to have a policy for a specific length of time, then it is best to buy the policy for that the entire length of that specific period that you need it.

For example, if you want to provide coverage to your family until you reach the age of retirement at age 65, and you’re currently 35 years old, you would best be advised to buy a 30 year term.

Another reason for buying a longer term life insurance policy, if that’s what you feel you will need, is that the policy will continue to be in force even though your health deteriorates.

On the other hand if you had bought a shorter term, and planned to renew just as your health deteriorated, you will likely not get the best rating and this will cost even more in monthly premiums.

Requirements for Policies at Certain Ages

When you’re young, and you buy a term life insurance policy, you will likely only have to fill out a medical questionnaire to not only get coverage, but to also get the best possible rating (assuming you are in perfect health at the time you fill out the questionnaire).

As you get older, the medical examination requirements of insurance companies become more stringent.  They may require much more detailed information about your health.  If you have a longer term policy, you don’t have to worry if your health deteriorates in the meantime because you are covered regardless and won’t face a lower rating or higher premiums.

Another scenario you might want to factor in when deciding on how long a term is the age of your children.  You might be in your early twenties now, and if the children were just recently born, you might want to policy that lasts until they reach the age of majority.  In this case you might opt for a 20 year term policy instead.

On the other hand, you might be buying life insurance in place of mortgage life insurance, which is required by the lender before they will approve your application.  Most banks or mortgage lenders sell their own form of mortgage life insurance, but the beneficiary is the lender. The cost to get this type of insurance is much more expensive than what you pay for term insurance.

Term Life to Cover a Mortgage

Instead of buying mortgage life insurance, you have the option of buying term life insurance instead.  If you’re outstanding mortgage is for $200,000, and is for 30 years, than you could buy a term policy for that amount and for a 30 year term.

The monthly premiums are actually a lot cheaper than what these lenders charge.  Also, you name the beneficiary of your choosing so the proceeds don’t automatically go to the lender but rather to your named beneficiary.

If you do have health concerns and are thinking of buying term life insurance, your best bet is to use an independent agent like myself.  If you go directly to a company or use a company agent who only represents one or a couple of companies, you aren’t going to find the best rates.

Not all insurance companies are the same, so an independent agent will be able to find you the best coverage and the best rates especially if you have a health concern, a weight problem, are a smoker, or have a questionable family health history.

If you need more information in deciding your reasons for term life insurance, how long a term to get, or have health issues, I suggest you give me a call because I can offer you some valuable advice and find you the best rates for your particular situation.

The best way to compare term life insurance rates is to use our quote form on the right and compare prices from over 30 top life insurance carriers.

Who Should I Name as My Beneficiary?

Life Insurance BeneficiariesWho should you list as a beneficiary when you buy a life insurance policy?

This is an important question and the following should help guide you in making this very key decision.

What is a Life Insurance Beneficiary?

When you buy a life insurance policy, you will be asked to name a beneficiary. A beneficiary is one who will receive the death benefits and/or the cash value accumulation of the policy (only applicable for permanent insurance policies such as whole life, universal life and variable life insurance policies), upon the death of the insured person.

You have two options when choosing a beneficiary. Your first option in choosing a beneficiary can be one or more persons which could be your spouse, your eldest child, spouse and children, some other relative or any other person you designate. Your second option is to choose an entity such as your estate, a trust, or a charitable organization.

What’s the Difference between Choosing a Person or an Entity as Beneficiary?

There are differences in how the benefits will be treated by choosing a person over an entity.

Choosing a Person as Beneficiary

When you select a person as a beneficiary, all the proceeds from a life insurance policy are paid directly to that individual or apportioned to the person’s named (if more than one). The benefits paid are given as a lump sum and are not generally taxable.  A person who is the beneficiary can also spend the funds in any manner they choose.

You do not have to draw up a will to ensure they receive your life insurance benefits.  This is one nice feature about life insurance.  You get to quickly and simply name who gets the money without the need for lawyers and lawyer fees.

Additionally, you also have the option of changing the beneficiary.  However, there are two types of beneficiary types which are either revocable or irrevocable beneficiaries.  A revocable beneficiary means you can change the named beneficiary anytime during the life of the insurance policy.  An irrevocable beneficiary means that both the owner of the policy and the beneficiary must agree to make any changes to the policy beneficiary.

Choosing an Entity as a Beneficiary

Some life insurance owners may decide on an entity to act as their beneficiary.  The most common choices include the estate or a named trust, such as the family trust with a lawyer acting as trustee.

A will is normally required and recommended for this situation.  If you do not have a will, it is possible a state-appointed trustee might assume responsibility in determining how the proceeds will be doled out and to whom.  If you do draw up a will, it is also highly recommended that you keep it current and make changes as they occur.

The reasons why some people opt to use an entity as a beneficiary normally entail the following reasons:

  • To set up a trust if you have young children, or to ensure the funds are paid in a specific manner, or to be paid out when they reach a certain age.
  • To ensure that the life insurance proceeds are designated to some other party or parties.  This could be some combination where a family member, close friend and/or one or more charitable organizations are designated to receive funds which should be clearly specified in the terms of your will.
  • You may also need to name an estate as beneficiary if you have no spouse or children.

The legal aspect of how funds are distributed is also somewhat different when choosing an entity as a beneficiary. This includes:

  • All insurance proceeds are paid to the estate.  This in turn becomes part and parcel of the probate process.
  • How the money is paid will be determined by the terms you have designated in your will.
  • These insurance proceeds must also be available to creditors if there are any outstanding debts.
  • As the insurance proceeds may be distributed through probate, there are usually lawyer probate fees involved.  The amount may vary from state to state, but the maximum is usually in the neighborhood of 5% of the total amount of the estate.
  • If you wish to change your beneficiary in this instance, you will have to use your lawyer and will need to change the terms of the will.

Primary Beneficiaries vs. Contingent Beneficiaries

The difference here is quite clear.  You primary beneficiary is the person (or people) who is intended to receive the death benefit upon the insured’s death.  If things don’t go as planned, though, and the primary beneficiary(ies) predeceases the insured, or dies at the same time as the insured, for example in the case where a husband and wife are killed together in an accident, then the contingent beneficiary(ies), also known as secondary beneficiary, receives the funds.

One key point to make here is that if two or more primary beneficiaries are selected, and one or more of them is dead upon the passing of the insured person, the money will be distributed to the remaining primary beneficiaries, rather than any of the funds going to the secondary beneficiaries.

Some Key Points to Remember

It is vital that you make changes if your circumstances change.  This could especially be important in a divorce situation or if your named beneficiary dies before you do.  It is very important that you don’t procrastinate making beneficiary changes.

If you name more than one beneficiary, make sure they are individuals who are compatible because horrendous legal battles have broken out between family members who were named as beneficiaries.

Also, never buy an insurance policy as a third person, or what might be described as a 3 way policy.  What I mean is that you should never buy a policy where you become the owner of a policy but have bought the policy for another person such as your daughter, and a third individual is named as the beneficiary, such as her husband.  In this instance, it is very likely that the beneficiary will be considered as receiving a gift from the purchaser of the policy by the tax people and the proceeds will be taxed.

Give some careful thought to who you want to name as a beneficiary, and consider the pros and cons from the above information to make an informed choice.  As always, call us with any questions or for a life insurance quote at 877-996-9383.

Why Consider “10 Year Term” Life Insurance?

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 also great for short term needs.

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 ten years.  That means your premiums will stay fixed during the initial 10 years, 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 lower the term duration, the lower the premiums.  For more information on alternatives to the ten year term, see our post on Types of Life Insurance.

10 Year Term Life Insurance Quotes

Age $500,000 $1,000,000
30 Year Old Male *$14 $21
40 Year Old Male $17 $28
50 Year Old Male $43 $78
60 Year Old Male $117 $217
70 Year Old Male $339 $625

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

Using Term for 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 Term Life Insurance

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.

Companies Who Sell 10 Year Term

Just about every company offers a guaranteed level 10 year term policy.  In my opinion, the 3 companies who are most consistently among the list of “low price leaders” for term insurance are Banner Life Insurance, ING-Reliastar Life Insurance, and Genworth Life Insurance.

Keep in mind, however, that some companies commonly show up in the top 3 in price quotes, but aren’t quite as lenient in underwriting, so it’s harder to actually qualify for their best ratings.  Two companies that come to mind here are Savings Bank Life (SBLI) and Ohio National.  On the contrary, you have a company life Prudential, who is usually not in the top 10, but maybe top 15 or 20, but are very fair on underwriting .

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.

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Life Insurance Approval with Congestive Heart Failure

If you go to your run of the mill agency like State Farm or Farmers Insurance, you won’t have a chance at being approved for life insurance with congestive heart failure.  We have, however, obtained many successful approvals with this heart condition and many other types of impaired risk cases.

Two Types of Approval

An individual with congestive heart failure may qualify for two types of insurance:  traditional life insurance or graded death benefit life insurance.  Traditional coverage will require a medical exam and is usually much less expensive.  You will need to be in better health to qualify for this type.

The key to a traditional policy approval will be a recent echocardiogram, treadmill stress test, or cardiac catheterization showing that the heart is not overly enlarged, and the left ventricular ejection fraction (LVEF) is still within acceptable levels.

The ejection fraction measures how efficiently the left ventricle pumps the blood.  Normal is around 50% to 60%.  But in people with heart failure, the ejection fraction drops, sometimes into the 40’s, 30’s or even 20’s.  It will need to be in the 40’s to have a chance at a traditional policy.

Your odds are also better of being approved if you are a non smoker, at a good weight, with no other health issues, such as diabetes.  The insurance carriers will expect that you will be on medication to control your blood pressure, so that’s okay.

Graded Death Benefit

If your heart failure is in later stages, your ejection fraction may be lower than this, and your only option will be to apply for a graded death benefit type of policy.

This type of life insurance is far easier to qualify for.  As long as you haven’t been confined to a nursing home or had a heart attack or transplant in the past 2 years, or currently hospitalized, you can potentially qualify for this coverage.  There are other qualifying questions related to other medical conditions, but those are the only conditions as it relates to your heart.

A graded death benefit policy works a bit differently than traditional, in that you don’t need to have a medical exam, and they won’t order your medical records, so it’s much quicker.  However, it is also more expensive than the traditional variety.

The term “graded death benefit” is also very important.  It means your death benefit is reduced during the first 2 years of the policy.  For example, if you have a policy with a $50,000 death benefit, the benefit might only be $5,000 in the first year, $10,000 in the second year, and then $50,000 thereafter.  The most popular and reputable company offering graded death benefit life insurance is Fidelity Life Association.

Types of Life Insurance Offered by Fidelity

One of the nice things working with Fidelity’s impaired risk products is they have their graded policy, which is a whole life policy, which builds cash value.  But what is unique is they also offer a lower cost type of insurance called term, which keeps the premiums fixed for the duration of the term.  For example, they offer 10 year term, 20 and 30 year term policy, which also has the first 2 years as a graded benefit.

To get started with a life insurance quote with congestive heart failure, simply fill out our quote form on the right, and tell the representative who contacts you about your entire health history.

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No Exam Life Insurance

If you need to buy term life insurance quickly and want to do so with the minimal amount of fuss, we have the solution you are looking for right now.

If you are relatively young, and are in reasonably good health you can buy term life insurance right away and without having to take a medical exam.

You can qualify even if you smoke.  However, non-smokers will get the better rating of Standard Non-Nicotine rates while smokers may qualify for the next best rating of Standard Nicotine.

As a smoker, your monthly premium will be slightly higher but you can still get term life insurance without having to take a medical exam.

How Much Term Life Insurance Can I Get Without a Medical Exam?

If you are between the ages of 18 – 65 and qualify for a quick decision without having to take a medical exam you can buy between $25,000 to as much as a $250,000 term life insurance policy.

What Length of Term Can I Buy Without Taking a Medical Exam?

It depends on your age but it breaks down to as follows

10 Year Term available to those aged 18 – 65

15 Year Term available to those aged 18 – 60

20 Year Term available to those aged 18 -55

30 Year Term available to those aged 18 – 45

These term policies are renewable to age 95.  You may also be eligible for additional life insurance riders such as:

Dependent Child Rider – Coverage up to $25,000 and expires when the child reaches a certain age such as age 23, or you, as the insured, reach a certain age such as age 65.

Accidental Death Benefit Rider – This is generally issued only between the ages of 18 – 60, and you get coverage for between $25,000 and $250,000 with a general expiry at age 80.

How Will a Decision be Rendered?

The company will review the application you submit and you will be advised simply as to whether you are accepted or rejected by the insurance company.

How Do I Qualify?

To qualify you must be a U.S. citizen and provide some nominal proof of your citizenship such as a driver’s license.

You must answer a medical questionnaire such as the following:

You must answer No to the following questions to qualify.

1. Have you been diagnosed as having AIDS (acquired Immunodeficiency Syndrome) or ARC (Aids Related Complex) or tested positive for HIV (Human Immunodeficiency Virus)?

2. Are you waiting for a diagnosis, or have you been advised to have a surgical operation, diagnostic test or medical or mental evaluation that has not been completed?

3. Have you requested or received any Worker’s Compensation or any Social Security disability benefits?

4. Do you currently take more than 2 prescription medications for pain; or do you consume on average, more than 3 alcoholic beverages per day?

5. In the past ten years have you received any treatment, medical advice or medical consultation for:

  •  diabetes or elevated blood sugar; cancer (excluding basal cell or squamous cell carcinoma of the skin);
  • stroke, transient ischemic attack (TIA or mini-stroke); emphysema; chronic bronchitis or chronic lung disease;
  • major depression or anxiety that required psychiatric treatment;
  • bipolar disease or mood disorder; schizophrenia, Alzheimer’s disease, dementia;
  • rheumatoid arthritis, paralysis;
  • and degenerative muscle or nerve disease or disorder; alcohol or drug abuse;

OR any disease or disorder of the following: heart, aorta, coronary arteries, peripheral vascular system, blood, liver, pancreas, kidney (other than kidney stones) brain or connective tissue? continue page 2……

What’s the Best Type of Policy for You?

How to Choose the Best Life Insurance PolicyThe factors I always recommend my clients consider when trying to determine which life insurance company to pick are the company ratings and the premium.

How to Choose a Life Insurance Company

It is of utmost importance that the company you choose is a financially viable and stable organization.

A couple ways I use to measure this are by seeing how long a company has been in business.  You have some companies like Genworth Life Insurance or Ohio National, that have been in business over 100 years.

They’ve been through recessions and depressions and are still going strong.  That’s a good sign.

Also, be sure to ask your agent what ratings the insurance carrier has earned from a 3rd party financial rating company, such as A.M. Best.  You should aim for one that boasts an “A” rating, such as A++, A+, A, or A-.

Insurance Company Reviews

You can do a google search for just about any company you want to do business with, or agency for that matter.  You might try googling something like what I wrote about recently, State Farm Life Insurance Review.

Life Insurance Quotes

Then, as I said, pricing must obviously be a consideration.  What’s really interesting here is that finding the best price for life insurance is not as simple as putting your date of birth and amount desired into a quote form, and then picking the company who comes up at the top of the list as having the lowest life insurance quotes.

Instead, you should really discuss your case with an agent before determining which company to apply to.  If you have any history of medical impairments such as diabetes, cancer, or heart issues, you will want to apply to the company who will approve you at their best rating classification.

Types of Life Insurance

Another factor affecting your life insurance quote will be the type of insurance you apply for.  We represent companies with the full spectrum of term and permanent products.  For a general explanation of your choices, please see our post about the types of life insurance, or for a more specific explanation on a particular type, you can go directly to the articles below.

10 Year Term Life Insurance

20 Year Term Life Insurance

30 Year Term Life Insurance

Universal Life Insurance

Whole Life Insurance

How Much Life Insurance Do I Need?

A general rule of thumb is at least 10X your income.  However, this answer has many variables.  If you have a lot of debt, such as a large mortgage or credit card debt, you may want to add the balances into your policy benefit.  If you have cash and investments that could be liquidating in the case of your passing, then be sure to take that into consideration as well.

If you’re buying life insurance for income replacement purposes, you may want a lot more than just 10X your earnings if you are in your 30’s or 40’s, since you still have at least 20 years more to work before you retire.  For help calculating how much you need based on your income and how many years you have left to work, please use our life insurance calculator.

Where to Start

As I explained above, every life insurance company has its sweet spot, where it may be more forgiving of a certain heath condition than others.  It’s really best to speak to a knowledgeable agent who can sort through all the options and recommend the best fit for you.

Call us for a free life insurance quote or for assistance choosing a life insurance company at 877-996-9383.  And if you found this article helpful, please “Like” us on Facebook or “Google Plus 1” us.  Thank you.

Yes, You Can Still Qualify up to Age 85. Sample Quotes Below.

Life Insurance for 81 to 85 Years OldYes, 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 right out of the gate 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.

Psst! As an added bonus, you can find out what my picks are for the best life insurance companies – click here to read more! 

Please keep in mind you can also get quotes for $25,000 or $50,000.  You don’t have to buy $100,000 if the premiums are out of your budget.  Use our quote form on the right for a quick quote.

You should also be aware that if the cost of life insurance as a senior is prohibitive, you can potentially save thousands per year by purchasing a second-to-die policy, which only pays a death benefit upon the second death.  This could be the perfect solution for a estate planning need or to leave an inheritance to your children.

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….(continued on page 2)