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……

Life Insurance for My Mother

Life Insurance for My MotherPerhaps you’ve been thinking about buying life insurance for your mother who might be getting on in years.

You probably wonder whether it’s feasible or even worthwhile to do so.

Buying life insurance for your mother is not only possible it might also be a worthwhile investment not only for her but for you as well.  I will explain what you need to know and how to make an informed decision on what type of insurance you can consider that would suit your mother’s needs.

Why Should I Buy Life Insurance for my Mother?

It can be a very good idea to buy life insurance for your mother if the beneficiaries have to take care of debts in the event of your mother’s death.  In addition to potential debts, you may have to consider the funeral and other expenses that could be incurred when she passes away.  There may also be estate and trust issues involved as well.

Is There an Age Limit?

In most instances you can buy life insurance for your mother up until the age of 85.  After age 85 the premiums can be very costly.

Ownership of your Mother’s Life Insurance Policy

The person who owns the own will be dependent on who buys the policy.  If you are simply making inquiries on her behalf and your mother will be paying for the policy, then she will be owner of the life insurance policy.

On the other hand if you wish to purchase the policy so that your mother is the named insured, then you will be the owner of the policy since you are the one paying the premium.

You should also consult with a tax advisor if you are paying for the policy and are the beneficiary as there may be tax considerations that can impact you when the policy is paid out.

Do I have to Tell My Mother?

The answer is yes.  In most states you legally obligated to do so.  In any event, your mother will also have to sign the policy since she will be the named insured and will obviously become aware of that you have purchased a policy.

Can I be Restricted from How Much Insurance I Want on My Mother?

The amount of insurance you can buy will vary from company to company.  Up to certain levels of insurance you can buy the policy without restriction.  For higher policy amounts you will have to prove that you have what is called an ‘insurable interest’.

An insurable interest simply means that you must show the insurance company that you have a financial stake in the amount that will be paid to you if you or some other person as the named beneficiary.  The financial stake is the financial burden that you might have to incur when your mother passes away such as debts like credit cards, mortgage and car payments, death benefits and similar expenses.

In most cases you can apply up to around $100,000 for a policy before you have to prove an insurable interest. So don’t expect to buy a million dollar policy without showing justification that you need this amount.

Will my Mother Have to Take a Medical Exam?

It depends on the type of policy and the amount of insurance you are buying, her age, habits, her current health and family history.  In most instances and for lower amounts such as $10,000 or $25,000 you may only have to fill out a questionnaire.  The older a person gets, the insurance company may have more restrictions.  These medical exam requirements also vary from company to company.

Policies which are for higher amounts will very likely require a medical exam.  These exams are fairly straightforward, performed quickly and are non intrusive.

Types of Life Insurance Available for Your Mother

There are several choices you can make when considering what type of policy to buy for your mother.

Term Insurance

The cheapest and easiest to purchase life insurance available is called ‘Term Insurance’.  This type of life insurance pays death benefits only.  It is called term insurance because you purchase it for a specific number of years.  So, you can buy term insurance for say 5 years or 20 years.  The premiums are fixed for the period of the term.

You decide on what length of term by considering your needs and reasons for buying the life insurance.  It may also depend on the life expectancy of the person.

Permanent Insurance

A more expensive form of insurance is also available and is known as ‘Permanent Insurance’.  There are 3 varieties available, but for most people who are purchasing life insurance for their mother, the best options are called ‘Whole Life’ and ‘Universal Life’.

The main difference between term life and permanent insurance is that a whole life or universal life insurance policy not only pays death benefits but also has a cash value accumulation feature which grows over time.  Universal is considered the cheaper of the two and might be the best approach in many instances where an estate or trust is involved.

Second to Die Policy

This type policy can only be purchased if both parents are still living.  It is a policy that is also often used in estate and trust planning.  The key feature of this type of life insurance policy is that it is only payable when the second person passes away.

Impaired Risk Insurance

If your mother currently suffers from a relatively serious health condition, you can still possibly buy life insurance.  I suggest you call us for more information as this form of life insurance is something we specialize in providing.

You can use our quote form on the right site of this page to get a quote to see how much a policy might cost.

If you would like to learn more buying life insurance for your mother than you may also want to read Can I Purchase Life Insurance on My Parents.

For the best term life insurance prices on your mother, 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.

Quotes for Second-to-Die Life Insurance and When It’s Appropriate

Family Estate Planning using Second-to-Die Life InsuranceBy far, the most common type of life insurance purchased is on a single individual.  But in the right circumstance, a second-to-die life insurance policy may be exactly what you need.

A second-to-die policy is unique in that there are two insureds (usually spouses) and a death benefit is only paid out upon the second insured’s death.  So we have two lives covered, two deaths, but only one death benefit.

In most traditional types of life insurance sales, the proceeds are left to the surviving spouse for various financial needs.  Obviously, that’s not the case here, so let’s take a look at why someone would purchase a second-to-die policy.

The top reasons to purchase second-to-die life insurance are:

Estate Planning Purposes – Approximately 90% of these policies are purchased by couple’s with large estates, who may have an estate tax problem.  This is really a simple concept.  The first spouse passes an unlimited marital deduction upon his or her death to the surviving spouse.  Upon the second spouse’s death, their entire estate is subject to various forms of taxation (income tax, possibly estate tax, etc.)   So what better way to pay the estate tax bill than with a life insurance policy, which cost pennies on the dollar, and pays out an income tax free death benefit?

Support of Children – Since the death benefit does not pass to the surviving spouse, it is usually purchased with a married couple’s children in mind.  Perhaps there are unpaid bills or debt such as a mortgage to be willed to the children, and the parents don’t want to pass away leaving their children with a loan on the house.

Affordability – Second-to-die policies are, on average, 25-40% cheaper than purchasing a policy on just one individual.  The savings could be even more drastic if one of the spouses has some health issues, but the policy is issued anyway based on the good health of the other spouse.

Sample Quote for $1 Million Death Benefit

70 Year Old Male Individual Policy through Prudential, Preferred Health = $30,305 Annually

70 Year Old Male/Female Second-to-Die through Prudential, Preferred Health = $16,907 Annually

Cash Accumulation – Since the cost of insurance (COI) in these policies is so low, some people leverage them as investment vehicles to grow its cash value account.

Charitable Bequests – Perhaps you have a favorite charity or educational institution.  Many libraries have been named and scholarship funds have been created due to the proceeds of second-to-die policies from generous benefactors.  Perhaps you can’t afford a $500,000 outright gift, but you can pay $10,000 per year.  Leverage your dollars and buy a 2nd-to-die policy with your favorite charity as beneficiary.

Types of Second-To-Die Policies

The most common type of second-to-die policy sold is universal life.  All the big carriers such as Prudential, Met Life, and ING offer a 2nd-to-die option.

Protective Life is the only life insurance company I’m aware of that has term policy with this option.  You can purchase 10, 20, or 30 year convertible second-to-die term, and boy, is it ever affordable.

The only downside with Protective’s term policy is the best health class they’ll offer is Standard.  So if you’re both in excellent health, you get somewhat of a downgrade in health classification here, as the best you can qualify for is standard.

Do the two Insureds have to be Husband and Wife?

No.  You can have second-to-die policies with mother and son, siblings, 2 business partners, etc.

For example, I used to volunteer on the board of a private school in San Diego, which had been co-founded by two wonderful women.  You could make the argument that a 2nd-to-die policy would be appropriate for the school to purchase on them for succession planning.

You see, if one were to die unexpectedly, the other could take over her responsibilities, but when they’re both gone, you could argue the school could suffer from decreased attendance while the successor moves into his or her new job.

How to Get a Second-to-Die Quote

You may notice in the quote results, you won’t find an option for second-to-die policies, so to get a quote, you’ll need to call us directly at 877-996-9383.

*If you enjoyed this article, please share on Facebook or Google Plus 1 it.  Thank you!

3 Essential Tips for Buying Life Insurance on Your Parents

In most cases, you can purchase life insurance policies for your parents with their knowledge and approval.

But how do you go about doing this, and what is the appropriate amount and type of coverage?

We will cover these questions and more in this article.

The most popular types of policies for parents are term life insurance, whole life insurance, and second-to-die policies.  See below to determine the best type of coverage for your parents.

Essentials for Buying Life Insurance on Your Parents

1.  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.  As you can see, the older your parents get, the higher the cost for the same coverage.

Here are a few quotes for $100,000 of coverage:

60 years old $72 per month
65 years old $132 per month
70 years old $229 per month
75 years old $395 per month
80 years old $767 per month

Please note the quotes above are for a 10 year term policy for a healthy male, who can qualify for non tobacco rates, and are accurate as of 6/10/2013.  Actual rates will depend on your parents’ health.

…Ok, back to question #1 – “Is it a good deal?”

Obviously, life insurance can still be quite affordable if your parents are in their 60′s or 70′s, and they’re only getting $100,000 of coverage, as in the example above.

But let’s say you need more coverage than that, and they are over age 80…  Is it still worth the cost?

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 our 83 year old has a life expectancy 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.

Quick ”Life Insurance for My Parents” Video Tips

 

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…(continue to part 2)

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)