Tag Archives: 20 year term

Life Insurance for 18-30 Years: Important Considerations

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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)

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Are You Between The Ages of 31 – 35 and Looking for Life Insurance?

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I can give you the answers you want and find you the right life insurance policy that will suit your particular life insurance needs.

At this stage of your life you are most likely getting well settled into your career and have likely started a family and bought a home. You need to protect your family should something unfortunate happen.

That’s the best reason to keep reading and learn more about what type of life insurance to buy so your family can keep on going. It’s about giving your family security and financial protection.

Some Examples of Affordable Life Insurance

You might be wondering first off about how much life insurance costs. Well, it depends on the type you buy and the amount of coverage in your policy. But, I did some research and I have some quotes for what it would cost you monthly to buy a $100,000 term life insurance policy for someone in your age bracket.

The following quotes are for a person in good health and who doesn’t smoke. These quotes show what it would cost you monthly for a 10 year term, a 20 year term and a 30 year term.

$100,000 Term Life Insurance Quotes for Ages 31 – 35

Age                                 10 Year Term        20 Year Term       30 Year Term

31 Year Old Man                 $7.26                         $9.45                   $13.21
32 Year Old Man                 $7.27                         $9.47                   $13.48
33 Year Old Man                 $7.27                         $9.49                   $13.83
34 Year Old Man                 $7.27                         $9.50                   $14.09
35 Year Old Man                 $7.27                         $9.52                   $14.35

(Disclaimer – These rates are effective as of February 1, 2013)

Types of Life Insurance Policies for Someone Ages 31 -35

If you’re not sure what type of life insurance would suit your particular needs then I will explain the differences.

Life insurance comes in 2 main types which are known as term insurance and permanent insurance. Permanent insurance is further broken down into whole life and universal life.

Term Insurance

Term insurance is a life insurance policy that covers you for life but is sold in periods of time like the samples shown in the quotes above. There are other term options available because you can get a term policy to cover you to specific age in you life such as age 65 which is when most people often retire from working.

Term insurance is ideal if all you’re looking for is income replacement. It can also be used to pay for your death and funeral expenses, pay off your mortgage, your other debts such as loans and credit cards. continue page 2…….

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How to Find Low Cost Term Life

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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?

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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?

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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.

Sample Life Insurance Quotes Ages 36 to 40

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Young Married Couple Needing Life InsuranceWelcome to Huntley Wealth Insurance, where we offer affordable term and whole life insurance coverage to individuals of all ages.

In this article, I’ll be discussing the cost of life insurance for individuals ages 36 to 40. 

We’ll also cover the factors that influence your premium, how much you need, the appropriate type of insurance, and how to apply.

Sample Cost of Insurance, $500,000 Life Insurance, 36 to 40 Years Old

Age                                    10 Year Term             20 Year Term             30 Year Term
Male Age 36                          $14                                $24                             $39
male Age 37                          $16                                $25                             $42
Male Age 38                          $16                                $27                             $45
Male Age 39                          $17                                $28                             $49
Male Age 40                          $17                                $31                             *$53

*All Premiums per Month – and based on rates available as of June 1st, 2013, and are subject to change.  Rating class quoted above is Preferred Best Non Tobacco.

Factors Affecting Cost of Insurance – Ages 36, 37, 38, 39 and 40

The primary ingredients built into a life insurance premium are your age, sex, health, and type of policy you purchase.  Males cost a bit more, generally, than females, since on average, they die younger.  Age should be easy to understand.  A man who is 40 years old will pay a bit more than a male age 37 for the same amount of coverage.

Generally speaking, the healthier you are, the lower cost of life insurance you’ll pay.  So a 36 year old male with no medications and no history of health issues should be approved at a better health classification than the male, age 36, who applies for guaranteed term life insurance, but has a history of a seizure disorder, just as one example.

We routinely help clients purchase low cost life insurance between the ages of 36 to 40 with varying medical histories.  So please don’t be intimidated to apply for coverage if you have a history of high blood pressure or cholesterol, obesity, heart disorders, diabetes, cancer, any many other ailments.

Importance of Independent Agency

The most important factor in getting life insurance at age 36 or 37, or any age for that matter, is using an agency who can shop your case amongst many insurance carriers.  As independent agents, this is our specialty.  Some insurance companies may penalize you for certain medications, family history, or other medical issues.  The key is applying to the company who will offer you the most attractive rate classification.

For example, let’s say you’re a 38 year old seeking 10 year level term insurance, male with sleep apnea and use a CPAP.  Most insurance companies will rate you at standard non tobacco, even if the apnea is under good control, but if you apply to Pruco Life Insurance, you’ll have a fair shot at a Preferred rate, assuming you can otherwise qualify.  If you used an agent who was a captive agent for, say, MetLife, you would probably end up being approved at Standard rather than Preferred, and would pay approximately double the premium for the same amount of coverage.

But if you’re not careful, you might even be penalized for a family member’s health history.  Assume you are a 39 year old man applying for 30 year term life insurance, who takes no medications, completely healthy, but your father had prostate cancer at age 56.  Most companies will not allow you to qualify for their best rating, since cancer is proven to be passed genetically, but we do know of at least one company who won’t even ask about your family’s cancer history on the application, making them the ideal company to apply to for this 39 year old healthy man.

So no matter where you purchase your life insurance, be sure to ask your life insurance agent if he or she is an independent broker or captive to one life insurance company.

Which Type of Insurance and How Much?

Ninety percent of our insureds in their late 30’s will need term life insurance.  In most cases, I’ll recommend 20 or 30 year level term.  This means your premium will stay level during the initial 20 or 30 year term, and prices are guaranteed not to increase until after the initial term has ended.  Term insurance is the most affordable type of coverage, making it ideal for young families who simply need the death benefit protection at a low cost.

There are types of life insurance that provide additional benefits, such as guaranteed coverage throughout your entire life and building cash values, such as whole life insurance or universal life insurance.  We do offer these plans, but we find them inappropriate for most of our clients age 36 to 40.

To calculate how much life insurance you need, please use our income replacement calculator.

Applying for Life Insurance

Simply get started by getting a quote using our instant quote form to the right or calling us toll free at 877-996-9383.  In some cases, a medical exam will be required, as well as authorization for the insurance company to obtain your medical records.  We handle all of this and there’s no cost to you to apply.

No Exam Life Insurance

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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……

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Do Celebrities Need Life Insurance?

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You bet they do! No matter how much fame and fortune a celebrity might have, even our popular icons which we see on stage, screen and over the air waves need life insurance.

Why?  Because people who make lots of money have to spend some quality time on estate planning.  There is also an abundance of smart reasons why one or more life insurance policies can be advantageous.

How a Permanent Life Insurance Policy Can Benefit a Celebrity

A permanent life insurance policy allows you to first of all, accumulate money in a cash value accumulation plan which has conservative but steady growth.  Even better is that you won’t have to pay any capital gains.

The cash value accumulation portion of your policy is also an asset.  This means that you can borrow against it which gives you instant cash liquidity at your disposal when you need it.

Also, the death benefits which you can pass onto your heirs such as your children or even your grand children, or other beneficiaries such as you favorite charity, will receive the  benefits in a tax deferred lump sum.

Your children for example, will be able to cover the expensive tax costs which can occur on your estate without having to sell off valued assets such as property, art, and other collectibles.

A celebrity will also be able to set up their estate and protect their beneficiaries in cases of divorce.  Additionally, you can also use a life insurance policy in setting up a trust which also has many tax advantages.

There are plenty of reasons in how a celebrity can benefit by including life insurance in setting up tax shelters within their estate.  As the methods and opportunities are fairly extensive, they would be best advised to take up the matter with their financial or tax advisor to learn more about the benefits of celebrity life insurance.

How Much Will Life Insurance Cost a Celebrity?

Many celebrities have large estates worth a bundle.  They would want large policies to reflect their worth as that is the best way to factor it in as they plan their estates and gain liquidity in the process.….(continued on page 2)

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What’s the Best Type of Policy for You?

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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.

What Women Need to Know about Life Insurance

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Life Insurance for WomenAt Huntley Wealth Insurance, we help males and females alike purchase affordable term and whole life insurance to provide valuable protection for their families, businesses, and estates.

While the name of this particular website intends to attract a male audience, we DO provide quality advice and pricing for women needing life insurance as well.

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

At Huntley Wealth, approximately 30% of our life insurance clients are women.  This statistic speaks to the importance of the working wife and/or mother in modern times.

Today, many women provide a valuable, irreplaceable income for their families, which, if lost due to sudden death, would leave these wives’ and mothers’ families having to cope with one less income.

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

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

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

Life Insurance Costs Too Much

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

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

Age                                    10 Year Term             20 Year Term             30 Year Term

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

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

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

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

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

The Life Insurance Process

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

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

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