Frequently Asked Questions About Life Insurance

Many people have questions about life insurance.

I have put together some of the most common questions that people ask about life insurance along with the answers.

If you’re wondering what life insurance is all about and how it works, then this FAQ is a great place to start.

Why Should I Buy Life Insurance?

Life insurance is purchased by people for a variety of reasons.  The following is a sample of some of the most common reasons why people buy life insurance, but there are many more:

·         Income replacement for lost wages if you’re the major breadwinner

·         Paying off a mortgage or personal debts such as credit cards and loans

·         Funeral, burial and medical expenses

·         Retirement and savings

·         Money used to fund your child’s education

·         Estate reasons, trusts and charitable donations

·         Business reasons

What Types of Life Insurance Policies Can I Buy?

There are 2 types of life insurance policies which you can buy and they include term insurance and permanent insurance. Permanent insurance is broken down further into whole life, universal life and variable life.

How much Life Insurance Do I Need?

This is dependent on your individual situation and actual needs.  Ideally, most experts state you should get 10 times your annual gross salary. It also depends on your reasons for buying life insurance. You need to take into account your current savings, investment plans and other assets plus any other plans such as what you might receive from your employer or Social Security.  Then, consider what you might consider the financial shortfall for your situation and you can use that as a guideline.

What is Term Insurance?

Term insurance policies cover you for life but are purchased for a specific length of time such as 5, 10, 15, 20, 25 or 30 years.  These policies cover lump sum, non-taxable death benefits only.  The premiums for the term you select are fixed for the term you select. These policies are also renewable or can be converted into a permanent policy, often without having to take a medical exam

What is Whole Life Insurance?

Whole Life insurance has both death benefits and a tax sheltered cash value accumulation feature.  Premiums and the rate of return on the cash value accumulation are guaranteed. These policies have a higher premium initially than a term policy, but the coverage is for your lifetime.  Whole life premiums can be paid-off in a limited number of years.

What is Universal Life Insurance?

Universal Life insurance is similar to whole life as it has both death benefits and a tax sheltered cash value accumulation component.  You have more flexibility with this type of policy as you can change your death benefits and how you pay the premiums.  Some policies allow you to choose your investment options.

Is Life Insurance Tax-Free?

Yes, in most instances your named beneficiary will receive a non-taxable lump sum payment on your death benefits.  However, if you name your estate as beneficiary, or buy a policy as a third party, there may be possible tax implications at both the state and federal levels.

Can I Change My Beneficiary?

Yes, and all you would have to do is contact your insurance company or agent and request a ‘Change of ‘Beneficiary’ form.

Can I Pay My Life Insurance Premium By Installments?

Yes, you can pay your premium as a lump sum, and most companies allow you to choose either monthly, quarterly, semi-annual or annual payments.  Payment options may vary from company to company.continue page 2……

Life Insurance for People with Disabilities

Did you know that the Council of Disability Awareness reports that there are currently over 36 million Americans who are considered as disabled?

That works out to 12% of the population.

Did you also know that 1 out of 4 people who are currently in their twenties will become disabled before they retire?

And finally, of those people who are currently disabled, 50% are still in their working years and between18 – 64 years of age.

Unless you already were born with a disability or already have a disability, you probably most likely think that it won’t happen to you.

Life is uncertain and there are no guarantees. So, if you are already disabled, then you might be wondering if you are still eligible for life insurance.

Life Insurance and the Legal Rights of the Disabled

Americans who have a disability have legal protection which prevents a life insurance company from refusing coverage simply because of their disability.  These rights are protected under the American with Disabilities Act.  At least that’s the way it’s supposed to work.

Nonetheless, there are many people with a disability who find it a challenge to buy affordable life insurance or even to get any at all.

How Life Insurance View the Disabled

A person with a disability generally has a medical condition caused by disease or injury which physically restricts or limits them from performing some or even all of their daily activities.  A disability can be caused at birth from a genetic disorder, or something which manifests itself over time, or is caused by something they have contracted.

A disability can be a result of an accident or injury which was work related, or caused by just about anything you can imagine.  Many people function relatively well with a disability while others require a lot of additional care to help them cope with performing their daily activities which most of us take for granted.

The first thing you should know is that not all disabilities are the same.  And, not all life insurance companies view similar disabilities the same.  One of the key factors that a life insurance company will look at is to determine if they believe that your particular type of disability will shorten your life span.

If the insurance carrier underwriter’s believe or determine that your particular disability will reduce your expected life span then you will receive a lower rating and they will charge more for a premium.

Additional factors also come into play when making this determination such as your age, and additional health factors such as if you also have heart disease, high blood pressure and cholesterol, and your lifestyle. continue page 2……

How life Insurance for Sole Proprietor Works?

In the U.S. there are several million people who operate a business as a sole proprietor.

It’s great to be independent and run your own business, isn’t it? But, what’s going to happen if you were to die unexpectedly?

What happens to your sole proprietor business if you are no longer there to run the business?  Are you aware of the financial problems you could be imposing on your family and the financial mess you could end up leaving behind?  This means your family.

The sad fact is that far too many of you who operate a sole proprietorship aren’t looking at the big picture.

A sole proprietorship is a unique form of business enterprise.  It can consist of a single individual such as a painter or can be a store owner who has a number of employees and anything in between.  You might make $5,000 a year or maybe over $500,000 per year.

Why a Sole Proprietor Needs Life Insurance

Life insurance is vital to have if you run your own business as a sole proprietor.  If you don’t think so, then I’m going a toss a little bit of reality at you so you can see why life insurance is so vital.

Here’s where you stand.

The Business Costs of Being a Sole Proprietor

Step back and take a clear look at what you’re involved in doing with your sole proprietor business.  As a sole proprietor, you may have clients or customers where you have contractual obligations.  You may have suppliers that you owe money too or have an existing line of credit.  You could have a business owned vehicle, pay rent or a mortgage on a location.  Additionally, you could have business credit cards, personal and business loans with bank, and other debts.

And, of course there’s the IRS and everyone’s favorite – Taxes!

Who’s going to cover all these business expenses and debts if were to suddenly die?  The answer is quite simple – your estate! And who’s going to be responsible for your estate? It will be those who survive you!

And, these are just the some of the expenses you could be running up as a sole proprietor.

Here’s the other side of the coin.

Business Income of a Sole Proprietor

You can be either a partial financial contributor or you may be the sole bread winner of your family.  If you die unexpectedly, where is your family going to find that replacement income if you’re gone and you didn’t have any life insurance?

What Happens to a Sole Proprietor Business When They Die?

Now, what happens to a sole proprietor business when the owner dies? Well, here’s what happens;

  • The creditors will be the first to appear to demand payment of all existing and outstanding loans
  • Clients will be pressing for their contractual obligations or seeking compensation
  • Even if there is a transfer of ownership to a family relation, the new owner will have to pay the transition costs
  • The business must still be dissolved
  • Federal and state taxes are still owed and must be paid
  • Employee wages must be paid along with any obligatory payments such as Workers compensation, Social Security etc.

Then, there is still the lost income that has to be replaced so the family can pay the bills and survive financially.  They also have to pay for the burial and funeral expenses, and all your own personal debts have to be paid. This financial mess will be your legacy..(continued on page 2)

Veterans Life Insurance: What One Should Know.

If you’re a veteran and are looking for some affordable life insurance then you’ve come to the right place.

Whether you’re healthy or have been seriously injured, we can help you find the life insurance policy you need.

We’ll look at some of the most pressing issues facing our heroic veterans and give you the answers to your most pressing life insurance questions.

There is a policy out there that will suit everybody.

Let’s start right off and say that healthy veterans who have no lasting physical or emotional injuries will simply be eligible for the same types of life insurance policies available to everybody else, and at the same rates.

Life Insurance Policies for Injured Veterans

Let me say right off that I specialize in helping people with serious health disabilities. As an independent agent I know which companies are more lenient than others when it comes to underwriting anyone who has health issues.

So, if you’ve been turned down by a company or have become discouraged, then I urge you to give me a call so we discuss your particular situation.

Here are some of the most war related and health issues faced by our returning veterans.

PTSD (Post Traumatic Stress Syndrome)

The emotional scars inflicted by the tragedy and horror of war, and any other form of traumatic incidents can leave you with lasting emotional problems that can dog you for life.

Some vets are able to cope better with PTSD than others and can function as well as anyone else.  Others have a much deeper psychological trauma that impacts their daily lives.

The bottom line when it comes to how life insurance companies rate someone with PTSD is simply dependent on the degree of the disability.

If you have relatively mild PTSD, and by that I mean you can cope quite well and only need one type of medication, then you will likely qualify for ‘Standard’ rates in most instances.These aren’t the best rates available but they are from being excessively more expensive.

If your PTSD is much more severe and you are taking a variety of medications, and receiving regular psychological or psychiatric treatment while being off on disability then you are likely to receive a lesser rating than standard. It will all depend on the medical evaluation received by the insurance company, the medications you are on and you’re overall health situation.

It means basically that we would have to look at your individual situation on a case by case basis as each situation is going to be different.

The point is that regardless of the degree of disability you have from PTSD there is some form of affordable life insurance available for you, and it’s just a matter of finding the right company with the right policy to match your particular individual needs.

Life Insurance and Physical Injured Veterans

Asides from the emotional impact that can affect a veteran there are also the many forms of physical injuries that can affect the daily lives of our veterans.

The range of injuries is so varied that I can mostly generalize about how the insurance companies will rate you as each situation will be unique.

In many instances, the physical injury you incurred will also be rated in different ways by different life insurance companies.

How you are rated will more or less depend on how well you able to function, what sort of treatment you are receiving, and in some instances the state of your future prognosis.

The more you can function in being able to look after yourself such as being able to drive, bathe yourself and prepare meals and whatnot, the better your rates.

Loss of limbs or amputations can be viewed differently by different companies. A loss of a portion of a finger can be viewed differently than the loss of both legs for example.  But, even a double amputee can be quite functional these days given the advancements in prostheses available.

Another common injury with many veterans is Tinnitus.  There are plenty of avid weekend game hunters and firearm users who are in the same boat.  Most of these individuals will get the same rates as everyone else so long as their brain scan is clean.

Head injuries and severe burns could be a bit more problematic but it may depend on the degree and extent of the disability, treatment and how well you can function.

Bottom Line for Veterans

The main thing to remember is just because one or two life insurance companies turned you down or wanted to charge a premium that was too costly, don’t be discouraged. There are hundreds of life insurance companies and they are not all the same.

There are also many different types of policies and regardless of your service related injury, there is something available for you.

How to Find Affordable Life Insurance for Veterans

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

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

What Pilots Should Know About Life Insurance

Are you a pilot and having trouble finding affordable life insurance?

Most life insurance companies will charge you higher rates simply because you like to fly recreationally or even because you do so as a profession.

But, pilots shouldn’t all be lumped into the same category because every pilot knows that it’s likely more of a hazard just driving to and from the runway than piloting a plane or jet.

There are more life insurance carriers who have come to realize that flying is statistically safer than operating an automobile and have become more lenient when looking at pilots. There are even companies which specialize in providing life insurance to pilots.

Although things have begun to change in how some of the more lenient life insurance companies have come to view issuing policies to pilots, it all depends on how you use your flying craft.

What Pilots Should Know

Pilot Life Insurance Rating Considerations – Realistically, an occasional pilot who uses their craft on weekends is going to be viewed differently than a stunt flyer. And, a commercial pilot will also be viewed differently than a recreational pilot. It also depends on where you fly as well and the type of plane you pilot.

Another very important consideration is how many hours you have logged or your level of experience, and what sort of training you have received. Those companies which insure pilots have some specific questionnaires that relate specifically to your piloting activities.

Always be up front about your piloting activities, because life insurance companies take a dim view of deceitful responses and could cancel a policy or contest the payment of a claim if they discover you were deceitful in your questionnaire. Most policies have a 2 year ‘contestability’ clause where they can thoroughly investigate your background.

Other Life Insurance Rating Factors – It’s a simple fact that life insurance is less expensive when you purchase at a younger age than when you are older. Life insurance becomes progressively more expensive as you age regardless of whether you are pilot or not. Your lifestyle such as smoking, the state of your health and family history can also come into play when the insurance companies rate you.

Pilots tend to be on average healthier than those who don’t fly because of the more stringent medical requirements to hold a pilot’s license.

Flat Fees – Many insurers consider piloting as being a hazardous occupation or hobby and will charge a flat fee surcharge if you fly more than a specific number of hours per year such as say 200 hours.  This flat fee is added onto the premium at a cost of a specific number of dollars per thousand dollars of coverage.  So, make sure you ask about this flat fee as it can vary from carrier to carrier.

Always State That You Are a Pilot Right Away – When speaking with an agent, the best approach is to mention that you are a pilot right away.  Make sure the agent is savvy about life insurance for pilots and knows that they should be selecting an insurer and a policy that can be more tailor-made for your hobby or occupation as a pilot.

Always Use An Independent Life Insurance Agent – Independent life insurance agents such as myself are the best way to go because we work for you and not the insurance companies.  We have access to numerous companies so we can research those companies which offer life insurance for pilots.continue page 2……

Why Buy Term Life Insurance for Children?

Should you buy life insurance for your children?

Many people don’t think so, but there are some sound financial reasons why you shouldn’t be so hasty to dismiss this notion out of hand.

Planning for the future is what life insurance is primarily about and even your children should be considered in preparing their way down the road.

Reasons To Buy Life Insurance for Children

Life is full of uncertainty.  It’s simply not possible to predict the future so here are some reasons why it might be in your best interest to buy life insurance for your kids.

1. Future Insurability

Today’s children are not as healthy as they were because lifestyles have changed.  Many children today live a sedentary life which does not bode well for their future health.  Child obesity is rampant in today’s society because of eating habits, lack of exercise and spending too much time with the tech toys and other devices.

What this means down the road is the potential for a whole range of health problems such as diabetes, heart disease, high cholesterol levels and high blood pressure.  Your children will grow up, start their own family and will need to buy life insurance just like you have right now.

If your children haven’t changed their lifestyle they could develop severe health problems by the time they are starting their lives.  The cost of life insurance could be prohibitive and costly for them when they do apply.

You could buy a $100,000 – 30 year term policy for the kids right now and will provide them with coverage so that they will have insurance policy well into their forties or even their fifties.  This will give them some coverage for their own families down the road.

2. College Aged Kids

What about student loans?  The cost of college and university is expensive and many kids have to run up a huge pile of debt until they graduate and start work.  The average annual cost of tuition runs anywhere from around $13,000 to $36,000 per year depending on the college they attend.  For a four year program that comes to an average cost of between $52,000 to $144,000 in debt that has been racked up.

But what were to happen if they were to die young?  It’s not something that any parent likes to think about, but sadly, tragedies such as accidents and disease do happen.  These debts still have to be paid.  A term policy would be the ideal solution so everybody has that peace of mind.

Save for The Kids Tuition

The other side of the coin is to consider buying something like a universal life insurance policy and start a savings plan while they are still young.  A permanent life insurance policy like a universal policy has a cash value accumulation feature which can be taken out as a loan down the road.

You start the policy when they are young and then you have the advantage of a non taxable savings feature which builds over time from both the premium and the interest earned.  Depending on the amount of life insurance you buy, this could easily build up to $50,000, a $100,000 or even more.

The children can use this cash value and either take the money out as a loan or even surrender the policy completely to pay off college debts or even use the money to buy a home or start a business.  It’s a great way to give them an early and welcomed financial boost in their young lives.

3. Affordability

Another good reason to buy life insurance for the children right now when they are still quite young is that the policies are very affordable.  You don’t necessarily need to buy a huge policy on your children as the policy can be as small as $5,000 or $10,000 which would only cost you about $5 – $10 per month if that’s all you can afford in your budget.

4. Preparing for Any Eventuality

Nobody wants to think about the worst case scenario and this is something that no parent wants to ponder or even imagine, but even young children die in accidents and terminal illnesses.

If your child were to become terminally ill, it’s simple but terrible fact that the medical bills could be astronomical.  Every parent would do whatever they could to get the best possible medical treatment for their child regardless of the cost.

Even with a medical plan, and getting hit with the double calamity of losing your child in the end, you could also end up being financially devastated from the medical bills which still have to paid.

And lastly, there will be the funeral expenses to consider.  As horrific as this worst case scenario sounds, it is something which is possible, and is something which we should think about preparing for now rather than when it is too late.

 Where Can I Find an Affordable Life Insurance Policy for My Children?

You always want to talk to an independent agent like myself.  We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.  Whatever your concerns, we can give you valuable advice and help you to find a policy that suits you.

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

The Tax Benefits of Life Insurance

Did you know that life insurance proceeds are not taxable?

For the most part, and there are a few exceptions, your beneficiary will not have to pay income tax on the death benefits they receive.

This applies to both term and permanent life insurance policies.

In the majority of cases, a named beneficiary will receive the death benefits as a lump sum payment and these proceeds are not subject to income tax.  Your beneficiaries can use the life insurance proceeds immediately and in any manner or purpose they choose.

There are a few situations where life insurance proceeds can be taxable and I explain later where you might get dinged by the IRS if you make a mistake.  However, I’ll tell you how you can avoid making these mistakes.

Naming your Beneficiary

This is one of the most important things you need to think about when you buy a life insurance policy.  When you decide on the person or persons, as you can name more than one beneficiary, you should do the following:

  • Give Full Names – Provide the full names of the person(s) as the beneficiary.  It’s also a good idea to specify their birthdates or Social Security Number to clarify their identity.  This is just in case there are other family members who happen to have the same name.  This will avoid potential legal complications if 2 people with the same name challenge the payment of the death benefits.
  • Spouse and Relatives – If you are naming your spouse, then make sure you clarify the name of the spouse and do not simply put a generic reference such as ‘spouse’.   The same should apply to siblings such as brother or sister.  People divorce and re-marry and sometimes neglect to alter the beneficiaries on their life insurance policies.  I can guarantee that this can result in legal complications. Be specific!
  • Estate – Do not name your beneficiary as your ‘estate’, unless you intentionally mean to do so.  This should really never, ever be done on a term life insurance policy and especially if you do not have a will.  If you name your estate as beneficiary, then the proceeds could end up in probate and the proceeds could be subject to estate taxes at both the federal and state levels.
  • Third Party Purchases – Beware of purchasing life insurance as a third party.  This is a common situation which happens when a parent buys a life insurance policy for one of their children, who happens to be grown up and already married, who then designates their spouse as the beneficiary.  The parent is the owner of the policy, while the child is the insured and their spouse is the beneficiary.  Should the child die, then it is very possible the IRS may view the life insurance proceeds which the spouse receives as a gift from the parent who purchased the policy and who is the owner of the policy, but not the named insured.

Tax Benefits of Permanent Life Insurance Policies

Permanent life insurance policies such as whole life, universal life and variable life are a little bit more complicated because of the cash value accumulation feature which is not found in term life insurance policies.

Permanent life policies consist of two parts which includes both death benefits and the cash value accumulation feature.

Now, in some instances, some people will deliberately name the beneficiary on their policies as their ‘estate’.  This is fine if they meant to do so and it is done so on the advice of their tax advisor or financial advisor.  The same applies to situations where you are setting up a trust but this should only be done with the advice of a tax consultant or financial advisor.

You cannot and should not name your ‘estate’ as beneficiary if you do not have a will as the both the proceeds from the death benefits and the cash value accumulation will end up in probate, and could be subject to having to pay estate taxes to both the federal and state governments.

Other Taxable Benefits of Permanent Insurance

Permanent life insurance policies come with a cash value accumulation feature.  On a whole life and universal policy, the cash value is generally guaranteed to grow at a minimum amount of interest.  The interest you earn in the cash value accumulation portion of your policy is also not taxable.  You do not have to pay taxes on the interest or on the proceeds payable to your beneficiary.

Variable life insurance policies allow you to make investment choices as you can opt to have you money invested in bonds, stocks or a money market fund.  If you were to invest on your own, you would be subject to capital gains, but this does apply to the money invested in a variable life insurance policy.

(Disclaimer – There are tax pitfalls that you have to be careful about when it comes to buying life insurance.  It is always best to talk to tax consultant or your financial advisor so you aware of any potential problems which might arise).

Need More Information?

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

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

Why Buy Term Life Insurance for a Non Working Spouse?

Have you considered buying a life insurance policy for your working spouse?

 I bet you haven’t and you probably think it would be just be a waste of money.

 But, what would you do if something were to happen to them?

 Sure, it’s really important that the primary breadwinner carry life insurance at least for the purpose of income replacement, but there are some good reasons why you might want to have a policy on the non working spouse.

 Many parents elect to have at least one parent stay at home and raise the kids.  And, these days it’s not just stay at homes moms, but it’s also dads as well.

 More than likely the non working spouse will probably re-enter the work force once again somewhere down the road such as when the kids start school or maybe even later on.

 Some families have twins, triplets that need a lot of looking after.  And of course, just as you’re getting one of the kids ready to go and start school, along comes another bundle of joy which might be planned or unplanned.  You never know do you?

Reason Why the Non Working Spouse Should Have Life Insurance

You have children.  They need looking after.  So, what  does the non-working spouse contribute?  You’d probably get a clout if you even asked them that question and you’d probably deserve it because they do plenty, and continue doing it long after your working day is even done.

We love our kids but they can be messy, and you can be assured that just cleaning up after them, let alone the regular house upkeep is a full time job in itself.

So, if something were to happen to your stay at home spouse, and where would that leave you and the children?

Daycare

The average cost of daycare in the United States varies considerably depending on where you live.  But, did you know that the average cost of daycare costs on average $11, 660 per year?  That works out to $972.00 per month!

In some states, daycare runs as low as $3,582 per year or about $300 per month, but in other states it costs as much as $18, 723 or $1,562 per month.  If your stay at home spouse were to tragically die, this is an expense you would have to incur to see that the kids were looked after while you went to work.

Could You Afford to Cover This Expense?

Running the House

Think about all the things that your non working spouse does during the day.  Asides from keeping the house clean, doing the laundry, shopping, running errands, cooking the meals and preparing lunches for the kids, there’s also lots of other things that need to be done.

If the kids are getting a bit older they have to be taken to the doctor or dentist, and they have a whole range of other outside activities such as Little League, music or dance lessons and play dates with their friends.  Who looks after all these things?  That’s right – the non working spouse and believe me – she’s doing plenty of work that you probably don’t even give much thought about.

If this stay at home spouse is gone, are you going to be able to find the time to look after all these chores?  And, if you can’t then that means you will have to hire someone to do it for you.  How much will that cost?  It could be up to another $500 – $1000 per month to find a cleaning service and other folks that you have to hire to ensure that all this is done.

Final Bill

Now, when all is said is done you have might have to come up with between $800 – $3000 per month to make sure that everything runs smoothly for you and the children just like what the stay at home spouse was doing.

This is what you may end having to spend after you make the mortgage/rent payment, the utilities, the groceries, credit card payments, personal loans, insurance and clothes and pay for the lessons for the kids.

Still think it’s not worthwhile to get a life insurance policy for the ‘non-working’ spouse?  The thing to remember is that a term life insurance policy might only cost you about $20 or even less per month to cover these costs.

Consider the alternative of not having a life insurance policy on your non-working spouse.  Is a $20 per month investment worth some peace of mind – you bet it is!

Where Can I Find an Affordable Term Life Insurance Policy for My Non Working Spouse?

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

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

Can you Buy Term Insurance at Age 76 – 80?

If you’re between the ages of 76 to 80 years of age, you might be wondering if you are still eligible to buy term life insurance.

I am pleased to say that you can still buy term life insurance if you happen to be in this age bracket.

But, there is on drawback. You will be somewhat limited to the length of term you will be able to buy.  The reason is simply sue to the fact life insurance companies have age cut off points where they will simply no longer sell term life insurance.

What Length of Term Can I Buy if I’m 76 – 80?

For the most part, everyone in this age bracket can buy at least a 10 year term life insurance policy.  Those of you who are aged 76 – 78 can also buy a 15 year term if you need a longer one.  However, those who are ages 79 or 80 are no longer eligible to buy a 15 year term policy.  A 20 year term policy is not available to anyone in this age bracket.

How Much Will Term Life Insurance Cost Me if I’m 76 – 80 Years Old?

I did some checking so you could get a rough idea of how much you might have to pay for a monthly premium.

The following quotes are for a $100,000 term life insurance policy and the rates shown are for a Preferred Plus rating which includes someone who is a non-smoker and in reasonably good health. They include what you might pay per month for both a 10 year term and for a 15 year term (For those who qualify).

$100,000 Term Life Insurance Quotes for Ages 76 -80

Age 10 Year Term 15 Year Term
76 Year Old Man $186.55 $354.46
77 Year Old Man $214.55 $409.76
78 Year Old Man $254.28 $477.58
79 Year Old Man $295.84 N/A
80 Year Old Man $349.30 N/A

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

As you can see, the monthly premium increases rather rapidly.  So, if you happen to be approaching your birthday, or the cut off age for a 15 year term policy which is what you were hoping to buy, you shouldn’t procrastinate and put it off.  You might not be able to get the term policy you want and the policy will become increasingly expensive.

Why is Term Insurance Better?

The reason why you might prefer term insurance all depends on why you want life insurance in the first place.  The first main advantage is that term life insurance is without a doubt the most economical to buy and can still be very affordable.

At this stage of your life people want life insurance for a variety of purposes.  Most likely you are retired by now and have very likely either paid off the mortgage on your house, or are very close to doing so.

You might want it still as income replacement to care for your spouse.  Perhaps your health has deteriorated and you want to pay for your outstanding health care expenses or simply to be use for death and funeral expenses.

You may also still have some existing debts that you want to be able to pay off should you pass away unexpectedly.  You may simply want to leave a financial legacy for your children or even your grandchildren.

However, if you need life insurance for such things as estate purposes, inheritance taxes, business reasons, or to set up a trust or donate to a charity, then you might be better advised to look at some other form of permanent insurance plan such as whole life or a universal life insurance policy.

It’s best to talk to an independent agent like myself to get the best advice for these situations.

Will I Have to Take a Medical Exam to Qualify?

The answer for the most part is yes.  As people age, life insurance companies require more medical information so they know how to rate you.  These medical exams usually entail a few simple tests and are relatively easy to take.

Can I Still Get Term Life Insurance If I’m Ill?

The answer is very likely yes but it will depend on the degree and seriousness of the illness.  I specialize in finding life insurance for people who have serious illnesses, so don’t assume you don’t have options or other choices because you do.  Even if I can’t find a term policy there are plenty of other life insurance policy options that we can discuss.

In Conclusion

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

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

Review of Savings Bank Life Insurance

Learn more about the Savings and Bank Life Insurance Company.

If you are seeking a review about this company then you’ve come to the right place.

We will tell you everything you need to know if you’re buying a policy with this company.

Savings Bank Life Insurance Company Overview

Savings Bank Life Insurance Company (also known simply as SBLI) was founded in Massachusetts in 1907 and has a long and venerable history as a life insurance provider.

The company sells its products in 45 states and the District of Columbia.

This company has assets worth over 2.1 billion dollars and has its Head Office located in Woburn, Massachusetts.

How Does Savings Bank Life Insurance Company Rate?

The financial solidity of any insurance company is an important piece of information to know when you are researching any life insurance company. It’s ranking by the rating agencies is indicative in how financially sound the company is considered and how well it will perform in the future.

A company which is financially strong has the ability to not only pay its claims but also shows that it will be around for the long haul. A life insurance policy, whether it be a term life policy or a whole policy is a long term investment.

How does Savings Bank Life Insurance Company Rate? Here are the results.

A.M. Best (June 28, 2012) –   A+ – Superior
Standard and Poor’s (June 18, 2012) –   A-
Weiss (September 30, 2012) –   B+

All in all, this company has a very solid financial ranking which means that it is financially sound and stable.

Products Offered by Savings Bank Life Insurance Company

The products offered by this company are quite diverse but are not sold or available in every state. Their product line includes:

Guaranteed Level Premium Term Life Insurance
Yearly Renewable Term Life Insurance
Whole Life Insurance
Children’s Life Insurance
Optimizer MVA Series Annuities
Single premium Immediate Annuity

How Does Savings Bank Life Insurance Premium Rates Compare with Other Life Insurance Companies?

To find out how well SBLI ranked, I did some research and found some sample quotes.  I discovered that Savings Bank Life Insurance Company came up regularly as a very affordable company for anyone buying a Term Life insurance policy.

To give you one idea of how affordable their term life insurance premiums cost in relation to other companies I did a search for a $300,000 term life insurance policy for a 33 year old man who was a non smoker and in good health.…(continue to part 2)