Why is Life Insurance More Expensive for Men?

Why is it that life insurance is more expensive for men than women?

The answer is pretty simple.

Men tend to take more risks with their lives than women and generally don’t take care of their health as well as women.

The statistics tell the story quite dramatically.  In 2016, the CDC (Center for Disease Control) reported that deaths from all age categories and for all causes show quite a discrepancy between the genders.

In 2016, the total number of accidental deaths for men from both accidents and disease for all age groups amounted to 11,288,114 deaths for males. For women, the total number of deaths in 2016 for all ages and causes was 7,266, 441.

But when it comes to driving, the numbers are skewed even more to the peril of men.  CBS News recently reported that men die in car accidents at a 2-1 clip over women.  Unfortunately, alcohol is involved in many of these fatal accidents.  For God sakes men!  Take an Uber next time instead.

(And when it comes to driving for Uber, you may only want to take a ride from a woman!)  🙂

The disparity is quite telling.  Needless to say, women also tend to live longer than men. The U.S. Census Bureau reported that in 2015, the average life of a female in the U.S. was 80.5 years of age while for men the average life span was 75.5 years of age.

Life insurance companies keep close track of these statistics and in great detail as they use these statistics in their analysis in how they determine the premiums they charge.

There are a lot of variables which are used by life insurance companies as they determine the probability of how long they expect you to live and they most certainly note the disparities of the life spans between the genders.

How Can a Man Save Money on Life Insurance?

It’s a bit tough going against the grain and save money on your life insurance if you’re a male, but there are some ways that can help save you a lot of money on your life insurance policy.

Here are some simple steps to show how a male can save money when they go to buy life insurance:

1. Buy Your Life Insurance Policy When You’re Younger

Regardless of gender, it’s a plain simple fact that life insurance is a lot cheaper to buy when you are younger.  Life insurance becomes exceedingly more expensive as you get older.  Since life insurance is a long term investment and something you will need, then the best approach is to buy it now while you’re still younger.

2. Use An Independent Insurance Agent

Using an independent agent such as myself is the best strategy to find cheaper life insurance rates.  Why?  The answer is simple really, because an independent agent has access to dozens of life insurance companies and can shop around to find competitive quotes for you. 

3. Take Better care of Yourself

Even if you are bit older, you can get a better rating and lower premiums if you are in better health. 

This does not mean you should put off getting life insurance until you improve your health, because if you need coverage now, then buy a policy now.  Even if you are a bit unhealthy now and a policy costs a bit more, you may be able to get a better rating and lower premiums when your health improves. continue page 2…….

Types of Pennsylvania Life Insurance Policies – Term, Whole Life, and more…

If you’re thinking of buying life insurance in Pennsylvania and not sure what you need or what to do, you’ve come to the right place.

I’ll give you some vital tips on what you need to know about buying life insurance.

Let’s start with life insurance basics.

How to Find the Best Pennsylvania Life Insurance

Buying life insurance is a 3 step process which breaks down into the following:

Step 1Decide How Much Life Insurance you Need

Consider first any existing policies you might have such as a company plan, what you might receive with social security, or possibly a veteran’s pension, and take inventory of the other assets your family could live on in the event of your passing (investments, home equity, etc.)

Then, decide on how you family would need to keep them financially viable and to keep their standard of living if you were to die now.  Also, include future financial considerations which your family might need such as tuition costs and other possible financial needs such as funeral expenses, existing debts and your mortgage or rent.

If you’re working, many people simply chose a multiple of their income, such as 10 or 20x annual income.  Here’s a helpful calculator for more on how much you need.

This will give you a ballpark figure.

Step 2Decide on a Life Insurance Policy

Take a look at the different types of life insurance policies available and decide on which one suits your needs best. Your choices include Term life insurance, and Permanent Insurance which includes Whole Life, Universal Life and Variable Life. I’ll explain their differences later on in the article.

Step 3Compare the Costs for the Policy

To find the most affordable insurance policy, your best bet is to consult an independent agent like myself.  An independent agent has access to a vast range of insurance companies so I am able to research them and find one that suits you best and at the best price.

Types of Pennsylvania Life Insurance Policies

As I said earlier, there are 2 types of life insurance which you buy being Term or Permanent Life Insurance.  Let’s look at the differences.

Term Life Insurance

Term life insurance covers you for death benefits only.  It is the most economical type of life insurance available.  Although term life covers you for life, you buy term life insurance for a periods of time in increments such as 10, 20 or 30 years.

It’s best to buy term insurance for as long a term as you can.  The reason is that the premiums become significantly higher if you re-new a policy when you become older.  The premiums are fixed for the period of the term.  The death benefits which are payable are also not taxable.

You also have the option of converting a term life policy into a permanent policy if you would like to factor in a permanent policy into a retirement vehicle as your income increases.

Permanent Life Insurance

Permanent life insurance has 3 basic types of policies which include whole, universal or variable life insurance. Let’s look at them in brief detail.

Whole Life Insurance

A whole life policy lasts you for your entire life, or until you decide to cancel the policy.  Or, you also have the option of buying a whole life policy which only lasts until you reach age 65 or some other time period.

A whole life policy is more expensive than a term policy. The reason is that this type of policy not only covers you for death benefits but it also has a cash accumulation feature as well.

The cash accumulation feature will be paid to you if you cancel the policy.  Otherwise, it will go to your beneficiary.  You can borrow against the cash accumulation if have the need to do so, or use it pay for your premium for a certain period of time.

Universal Life Insurance

Universal life insurance is very similar to whole insurance except the cash accumulation earns interest that is based on the market rate of interest.  Also, you can vary your premiums with this type of policy, and vary the death benefits which you can increase or decrease.  You can also skip premium payments as well.

Variable Life Insurance

In this type of policy both the death benefits and the cash value accumulation will be based on the performance of the investments.  These policies can only be sold by an agent who is a registered securities dealer.

Pennsylvania Insurance Tips

  • Always make sure the agent you select is licensed to sell policies in Pennsylvania.  The reason is that policies sold by licensed agents are covered against insurer’s default and are covered under the PLHIGA (Pennsylvania Life and Health Insurance Guarantee Association) which will cover up to $100,000 in death benefits and up to $300,000 for death and annuity benefits.
  • I also suggest that you discuss your insurance needs with your financial advisor, lawyer and members of your own family.
  • Always carefully read all the information contained in your insurance application to ensure its accuracy.  A simple typo could end up causing you an endless amount of unwanted headaches.  Also, never lie on your application form.  Insurance companies have the right to fully investigate your application should you die within the first two years of signing a policy, and could void or cancel any policy which is inaccurate.
  • Also, remember that you have a ‘free look’ or ‘right to examine period of 10 days or more to determine if you want to change your mind and cancel the policy.  Pennsylvania law warrants you must be given a full refund if you cancel within this period.
  • Always take the time shop around and compare premium prices.  I also highly suggest that you use the services of an independent agent to get the best quotes and the most suitable policies.

Special Considerations for PA

One of the whacky things about Pennsylvania is that their department of insurance makes consumers and life insurance agents jump through hoops sometimes to get a policy.

Here’s an example.  Our main office is in California, but we are licensed in over 35 states.  We’re also contracted with a couple dozen life insurance carriers.  Let’s use Banner Life Insurance, for example.

If a client calls me up from out-of-state like Texas, I can go ahead and sell him a Texas policy.   Contracting with insurance companies is a bit weird as you can’t just be contracted with the insurance company in general, but you have to be contracted with them in every state where you want to do business.

This is usually no problem in most states. Usually, you can take the application, and then get contracted with the carrier in that state.  But in Pennsylvania, I can’t just sell a PA policy, even if I’m contracted with the carrier already in other states.  I have to be contracted with that carrier IN PA in order to be able to take the application.

Sometimes this causes delays, and there are a few other examples like this that PA is a bit of a pain to do business in, but it’s nothing compared to New York, and we love all our PA clients.

Get a Term Life Quote

We are an independent agency, licensed with over 30 life insurance companies, so when you come to us for help, you’ll know the quotes we provide you are the absolute lowest prices available.  For more information or to get started with an application for Pennsylvania life insurance, sign up for some quotes using our instant quote form on the right or call us at 877-996-9383.

How to Buy Life Insurance

There are a few ways to explain how to buy life insurance.  Some people prefer using their local insurance agent from State Farm, Farmers, AAA, etc.  Others needing life insurance might see an advertisement from an insurance carrier such as Met Life, and call the company directly.

How to Buy Life Insurance

The best way to buy life insurance, in my opinion, is to get multiple online life insurance quotes from a company that offers quotes from several different carriers.  For example, a company such as Select Quote or Accuquote will be able to provide quotes from multiple companies.

Selecting the Amount You Need

The two questions you need to know before purchasing life insurance are “how much do I need?” and “what type of insurance is right for me?”  We’ll first address the amount of death benefit needed.

Most people purchase life insurance to cover a specific financial need.  One of the most common is when an income producing spouse and/or parent wants to protect against his or her loss of income due to an unexpected death.  This is a wonderful reason to have life insurance in place on your life.

Say you make $60,000 per year and you’re a 38 year old male.  You might be working for another 20 to 30 years before you’re able to retire.  Just imagine how much future income is lost if something happens to you before reaching retirement age!

Since income replacement is a very common reason to purchase life insurance, we provide an income replacement life insurance calculator on our site for free.  Just go to: How Much Life Insurance Do I Need?

If the life insurance calculator is too complex for your needs, a good rule of thumb is to carry 5 to 10 times your annual income on your life.  Of course you’ll need to take your current assets and debts into account.  The individual who has $500,000 in a personal IRA may have a decreased life insurance need in comparison to an individual with nothing in the bank and $100,000 in credit card debt, all things equal.

Other valid insurance needs are to cover debts, a mortgage, a business loan, to cover a key employee (known as key man insurance), to pay for estate taxes or death taxes, and to pay for death and funeral  expenses.

Which Type of Life Insurance is Right for Me?

Please read the section above before this section.  If you’re need is for income replacement, you almost certainly need term insurance and nothing more.  Term life insurance covers you for a specific period of time, and is typically much less expensive than whole life or universal life insurance.

On the other hand, if your need life insurance protection for the rest of your life, or if you are interested in the ability to grow cash value (from which you can borrow or withdraw funds), then you will need to consider a whole life insurance or universal life insurance quote.

If you’ve read the sections on selecting the amount you need and what type of insurance to buy and are still confused, call us at 877-966-9383 to tell us your situation and we’ll help you.

How Much Will I Pay?

This question depends on several factors.  Life insurance companies charge different rates to males and females of the same age and health status, so sex is the first variable.  They take mortality risks into account such as health problems (heart disease, cancer, diabetes, high blood pressure, etc) or other risks not related to your health such as occupational risks, hobbies and activities, and family health history.(continued on page 2)

How Much Life Insurance Do I Need if I Earn $50,000, $70,000 or $100,000 Per Year?

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

(Annual Income Needed) divided by .05

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

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

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

Other Income Replacement Calculations

Income Per Year Needed                 Amount of Life Insurance Needed

$30,000                                                 $600,000

$40,000                                                 $800,000

$50,000                                                 $1,000,000

$75,000                                                 $1,500,000

$100,000                                               $2,000,000

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

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

What about Investments, Funeral Expenses, and Mortgage?

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

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

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

Adjusting Life Insurance Needs for Inflation

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

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

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

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

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What’s the Best Type of Policy for You?

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

How to Choose a Life Insurance Company

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

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

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

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

Insurance Company Reviews

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

Life Insurance Quotes

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

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

Types of Life Insurance

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

10 Year Term Life Insurance

20 Year Term Life Insurance

30 Year Term Life Insurance

Universal Life Insurance

Whole Life Insurance

How Much Life Insurance Do I Need?

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

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

Where to Start

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

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

What Women Need to Know about Life Insurance

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.

Chris, How Much Coverage Do You Have? My Case for Life Insurance!

As a life insurance agent, I’m constantly telling others why they need insurance.

How about this for a twist?

Here’s why life insurance is important to me and my family, and how much we own.

Why We Need Life Insurance for My “Income-less” Wife

My wife works part-time, just one day a week in fact. We have two children, ages 2 and 4, and one on the way. We own a home in San Diego with a 30 year mortgage. We’ve made it a priority for her to stay home with the kids, while I work full-time, something very important to us.

While my wife doesn’t earn much, but that doesn’t mean we don’t need life insurance on her. I currently have $350,000 of coverage on her.

If something were to happen to her, God forbid, I know our financial future is still secure. With the proceeds from her life insurance policy, I would have the necessary funds to help pay for daycare, housekeeping, and so on.

You can’t even begin to measure all the things all the ways my wife is irreplaceable to our family, as mother, soccer coach, errand runner, and everything she does at the house, so there’s no way to put an exact dollar amount on what someone’s life is worth, but I do know my family and I would be a hundred times better off with $350,000 in the bank than without it.

How Much Coverage Agent Chris Huntley Has… and Why

As for insurance on my life, I have 4 policies: (A $500,000, 10 year term policy (Banner), a $750,000, 30 year term policy (Genworth), a $100,000 universal life insurance policy, and a 10 year term business policy for $500,000, with my partner as the beneficiary, so she could buy out my wife if I were to pass away unexpectedly.)

There are a few goals I’m trying to achieve with my policies, but the most important is replacing my income. I’m a young man, 32 years old at the time of this writing, and probably have 30 more years of income producing years ahead of me.

These years will be crucial for me to continue earning income to pay down our mortgage, raise our girls, put them through college, and continue putting away money for retirement.

Imagine if my income were lost.

That’s why I have life insurance. I know that if I don’t come home one day, my wife will continue to be able to pay the bills, raise our children without having to work full-time (something important to us), or end up moving in with her parents.

If you’re wondering how much life insurance you should have on your life use this calculator on our site, or I would recommend a minimum of 5X your annual income, and if affordable, 10X is even better.  This depends on your age.  If you’re in your 30’s you can actually qualify for up to 30 to 40X your income.

… And without revealing my exact income I make, let’s just say the $1.85 Million on my life would replace my income for many, many, many years, which makes me feel great!

I don’t always write such personal articles, but am today in honor of the Life Insurance Movement, orchestrated by Jeff Rose, a fellow life insurance agent and CFP. Today, Aug. 22, 2012, hundreds of other bloggers are writing about why life insurance is important to them.

Another use for life insurance? As a sleeping pill.

I don’t know what it is about my house, but it makes a lot of noises. We’ve never had a break-in, and own a shotgun for defense, but I’m still a very light sleeper, and often wake up at the tiniest of noises. And with God as my witness, I do occasionally think about what would happen if the worst were to happen in my home, and it helps me to know if I were to die defending my family, they would be protected with life insurance.

If you’re on the fence about buying life insurance, I suggest you at least consider buying a small policy. How much better off would your family or business be with $100,000 upon your death? You can get started with the process with a quick quote on the right or by calling 877-996-9383.