Tag Archives: life insurance 50 years old

How Much is Enough?

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How much life insurance do I really need?

That’s the one of the toughest decisions to make.

Here’s some tips to answer this question.

How Do I Decide on How Much Life Insurance to Carry?

The amount of life insurance that you need  really boils down to answering 3 basic questions.

1. What do I want the life insurance to accomplish?

2. What are my assets?

3. What are my debts?

The formula is basically (Needs and/or Assets) – Debts x Length of Time = Amount of Life Insurance Coverage

These sound like simple questions, but let’s examine each step in a lot more detail.  Each of you will have your own unique objectives and different circumstances.

1. What Do I Want the Life Insurance to Accomplish

This boils down to one thing –NEED!

Buying life insurance isn’t about making anyone rich, it’s about taking of the people who depend on you and their future financial survival. If your income is vital for the financial maintenance of your family, you have to figure how your survivors are going to manage when you’re gone.

So, take a look at where you are now and cast your gaze into the future. Let’s start with where you are right now.

You might be single and about to get married.  You could be already married and are thinking about having children, or you might already have 1 or 2 little ones and are maybe expecting another bundle of joy.

You might be currently renting but saving up to buy a house or condo, or you already own your home.  You could be a young professional in the first year of your new budding career.  Or, you might own and have been building your own business for several years.

What do you want a life insurance policy to cover?  What do you foresee down the road such as 5, 10, 20 or even 30 years for yourself and your family – existing and future?

Here are some objectives to consider how much life insurance you might need, and what objectives you want to use a policy to cover.

  • Income replacement for (x) number of years
  • Maintaining the standard of living for your family for (x) number of years
  • All of your current debts and even future ones
  • Your burial expenses
  • Your living circumstances such as a mortgage
  • Taxes
  • Inflation (assume 2-3%)
  • Current needs and future needs
  • Children’s college tuition
  • Medical expenses (if you currently have or anticipate health problems down the road – is your current health insurance going to be sufficient?)
  • Leave a financial legacy for the kids or grandchildren
  • Donate the life insurance proceeds to your favourite charity(s)
  • Business debts – if you are a sole proprietor or in partnership

That’s step 1 – figuring out your needs or objectives of what you want a life insurance policy to cover.

Now, lets get down to some dollars and cents questions.continue page 2……

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Life Insurance with Pre-existing Conditions

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Do you need life insurance and have a pre-existing health condition?

Have you been turned down for a life insurance policy?

 Don’t know what to do?

 Pre-existing Health Conditions and Life Insurance

 Yes, it can be a challenge if you have been coping with a pre-existing health condition like heart disease, high blood pressure, cancer, diabetes and any other form of health condition.

You might have already applied for a life insurance policy and the company turned you down flat.  There are many people who are in the same boat as you.

 Everyone has a need for life insurance, but people who have a pre-existing health condition can face an uphill battle when it comes to buying life insurance.

What can you do?  I have some tips and advice that I think will help some of you, and I’ll start with the basics when it comes to comes to life insurance and how it works for people who have a pre-existing health condition

 How Life Insurance Companies Rate People with a Pre-existing Condition

Believe it or no there are over 80 different variables which can be considered in the underwriting process when it comes to rating a person for a life insurance policy.

Life insurance is based on the probability of risk.  How risky is it to insure a person.  Even if you are a higher risk, you may still be eligible for a policy.  But, it will cost more for a policy.

Some pre-existing conditions may not be insurable under a standard policy by any company. Other conditions may require a waiting period such as being cancer free for a certain period before they will consider an application. That’s the bad news.

The good news is that not all insurers rate people with pre-existing conditions the same.  Some companies are definitely more lenient than other companies.  So, the first thing to keep in mind is that even if one company turned you down, another company might approve your application.

And, if you still aren’t eligible for a policy at all, there is another option known as Guaranteed Life Insurance which I’ll explain about later on.

In a nutshell, the most important factors which a prospective insurer wants to know include the following:

  • When were you first diagnosed with the condition
  • How serious is the condition
  • What treatment you received
  • How well you responded to treatment
  • What is the prognosis

Basically, what the insurance company wants to know is whether your condition is one of the following situations:

  • Is the pre-existing condition stable?
  • Is the pre-existing condition improving?
  • Is the pre-existing condition getting worst?

The insurance companies will rate you according to the medical records they request and receive from your doctors/hospital.  They will also base their decision on your medical exam which you might have to take and from their review of the R/x database and MIB or Medical Information Bureau.

If your condition is stable or improving then your odds of being approved for a policy increases.  If the condition is getting worst then it is very likely you will not be eligible for a standard policy and will have to go with a Guaranteed Life Insurance policy.

Not All Pre-Existing Conditions Are Treated the Same

This is another thing you have t keep in mind.  For example, you might think that since you have been diagnosed with cancer, then you’ll be out of luck.

No, just because you have cancer, heart disease or diabetes doesn’t necessarily mean your pre-existing condition will be all lumped into the same category.  Some conditions have a very high rate of being treated successfully such as some types of skin cancer.  However, lung cancer may be a bit more of a problem.

How Do I Find Life Insurance with a Pre-existing Condition?

First, don’t waste your time using instant online sites which claim to be ready to sell you a policy right now.  It won’t work as you are going to undergo a more detailed health investigation by the company.

Since not all insurers are the same, the first thing you should do is to always talk to an independent life insurance agent who specializes in health related issues such as me.  Independent agents have access to dozens of different insurers and I know which ones are going to be more lenient than others.

This not only applies to how you will be rated but how much you will be charged for a premium.  The other issue is that I can discuss your specific health concerns on a one-to-one basis and can provide you with the advice and options you need to know about and consider before you make an informed decision.

What if I Have A Life Threatening Pre-existing Condition?

It is possible you may not qualify for a regular life insurance policy at all.  But, you still have one option left open and that is for a Guaranteed Acceptance life insurance policy.  In most cases you will not have to either answer any medical questions or even have to take a medical exam.  You are basically immediately approved.

The drawback is that these policies have much a lower coverage which mostly won’t be higher than a $25,000 policy.  They are more expensive but still affordable.

There is usually a 2 year waiting period called a ‘Graded Death Benefit’ attached to these policies where the insurer won’t pay the death benefits if you die in the first 2 years of the life of the policy.  Your beneficiary would only receive the premiums (and possibly some interest) you paid up until the time of your death.

Where Can I Find a Life Insurance Policy for a Pre-existing Condition?

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.

Inexpensive Life Insurance for Seniors

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Where can seniors find inexpensive life insurance?

You’ve come to the right place.

Here’s the scoop on affordable term life insurance for seniors.

What Kind of Insurance Can Seniors Buy?

If you’re a senior you can pretty much qualify for any type of life insurance policy if you’re in good health.  You can choose between term and permanent life insurance.

However, since you’re here looking for senior life insurance that isn’t expensive than your best choice is term life insurance.

What is Term Life Insurance?

Term life insurance is the most basic form of life insurance policy offered by insurers.  This type of policy is especially ideal for many seniors who are looking for insurance coverage for a specific period of time.

What Are the Benefits of Senior Term Insurance?

There are a number of benefits and positive reasons for a senior to consider why term insurance is the best option.  These include:

1. Term insurance covers death benefits only.  You can choose the amount of death benefits you need in just about any amount from $25,000 to over $1,000,000 dollars.

2. Term insurance is the most affordable type of policy a senior can buy.

3. You can select the length of term you need.  This policy is sold in periods of time such as 5, 10, 15, and up to 30 years and can even be age specific such as age 65 for example. However, you should be aware that there are cut-off age dates for longer terms which are age specific.

For example, a 60 year old may be able to buy a 30 year term, but may only be eligible to buy a 10 or 15 year term when they hit age 69 and older.

4. The premiums are locked in for the period of the term for most policies, but this can vary from company to company.

5. The proceeds from a term life insurance policy are paid in a lump sum.  These proceeds which are paid to your named beneficiary are also non-taxable so your loved ones can use the money in any manner they choose.

A Senior Should Buy a Term Policy as Soon as Possible

The one thing to keep in mind about life insurance is that it becomes more expensive as you age.  So, it’s important that if you are coming close to a birthday, you will save yourself more money by buying a policy now before you reach that birthday.

Some insurers are also more lenient when it comes to age than others.

What if I’m Not Very Healthy?

This may or may not be too much of a problem depending on the health issues involved.  First off, you should know that life insurance companies use dozens of variables in how they rate people when determining how much they will charge for a premium.

Some of these variables include your age, whether you smoke, the state of your current health, family history and many other factors.

Even though you might have health issues, you should be aware that you can still qualify for a policy but you might receive a lower rating which could impact the cost of your premium.

But, again it’s important to know that each insurance company rates health issues differently.  Choosing a company that is more lenient can also help save you money on your premium.

Even if your health issue prevents you from being approved for a policy, you do have other options such as Guaranteed Acceptance, but you should phone me to discuss your options beforehand so we can discuss your health issues.

Are There Other Life Insurance Options for a Senior?

Yes, there are other options.  Many seniors only want a small policy which will cover their funeral expenses and to pay for small debts they owe.

This type of policy is known as Burial Insurance or Final Expense insurance.  These policies start as low as $2,000 dollars and as high as $50,000 in coverage.  This policy would stay in effect until you actually die.

Where Can I Find a Life Insurance Policy For Parents Over Age 60?

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.

How Level Term Life Insurance Works

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Are you wondering how level term life insurance works?

If you’re thinking about buying life insurance and only need life insurance coverage for a specific number of years then this might be the ideal policy for you.

Level life term insurance is a very straightforward type of life insurance and is the most basic form of life insurance available.

What is Level Life Insurance?

Level life insurance is term life insurance.  This type of life insurance pays death benefits only.  These policies do not contain a savings component like you would find in permanent insurance such as whole life or universal life for example.

Although level term insurance can cover you for your lifetime you buy it for specific time frames such as 5, 10, 15, 20, 25, 30 years.  Each period or time frame is called the ‘term’ which is how term insurance derives its name.  You can also buy policies which are age specific such as 55 or 65 years of age for example.

The first thing you have to determine is the amount of coverage or death benefits you feel you would need to achieve your purpose or reasons for buying life insurance.  You then select the length of time or term you feel is right for your life insurance needs.

Once you have selected the amount of death benefits, then this is the amount of death benefits your beneficiary(s) would receive should you die during the term you have selected.  The death benefits remain level or constant throughout the term of the policy you have purchased.  This is why it is called level life insurance because the death benefits remain constant throughout the lifetime of the term.

So, if you buy a $500,000 level term policy for a 20 year term and were to die unexpectedly in the 19th year of the policy, and providing you have kept up with the premiums and not allowed the policy to lapse, then the person(s) you have named as a beneficiary will receive a non-taxable lump sum payment of $500,000 dollars.

On the majority of policies sold by insurers, the premiums are guaranteed for the term you have bought.  This means that if your insurer was charging you $20.00 per month for a premium when you bought the policy then that is what you will still be paying in the final year of the term.

However, there are some insurers which do not guarantee the premium and if this is the case, then they have the ability to increase the premium.

To ensure you don’t get caught with having to pay higher premiums, it’s always best to ask your agent if the premiums are guaranteed.

What Happens if the Term Expires?

Most term policies sold are renewable.  Before the expiration date on the term occurs, the life insurance company will ask you if you want to renew the policy.  You can choose to buy the same length of term or you might opt to buy a shorter term and alter the death benefits.

Always Pick a Suitable Term

There is one thing you should remember if you go to renew your term level policy, and that is the premiums will be quite a bit more expensive.  The one important point to keep in mind when buying a level term life insurance policy or any other policy is that life insurance becomes more expensive to buy as you age.….(continued on page 2)

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Life Insurance with Guaranteed Acceptance

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Have you been turned for life insurance because of a serious illness, physical disability or because you are elderly?

If this describes you and you need a life insurance policy, then there is a solution available.

It’s called Guaranteed Life Acceptance and is also sometimes known as a Graded Death Benefit

What is a Guaranteed Life Acceptance Insurance Policy?

This is a type of life insurance policy offered by many insurers where you will be automatically approved for a life insurance policy regardless of the state of your health or age.

There are many insurers who offer this type of policy and the best part is that many insurers, but not all of them, you won’t even have to submit to a medical exam or even be asked medical questions to qualify for coverage.

All you have to do is apply and you can expect immediate approval when you apply.

Who Should Buy a Guaranteed Life Acceptance Policy?

This type of life insurance is suitable for anyone who has been turned down for a policy because of the following reasons:

  • Life threatening or terminal illnesses such as cancer, heart disease, or any other form of illness where you cannot buy a traditionally available form of life insurance policy
  • Physical disability such as extreme obesity, a genetically inherited disability or a disability which occurred from an injury or accident
  • Age such as if you are elderly with or without an accompanying illness or disability

Most insurers that offer this type of policy may or may not only ask you a few basic medical questions.

Are There Any Restrictions?

Some insurers may not cover you if you are terminally ill, have HIV or AIDS, or are residing in a hospital or long term facility.  Other insurers have no such restrictions.

Another restriction is that some insurers require that you fall within a certain age category such as between ages 40 – 80 for example.

You should also be aware that these types of policies also generally come with a much lower amount of coverage than what is available with other traditional policies.

Depending on the insurance company, you can generally find death benefits coverage amounts which range anywhere from between $1000 dollars to as high as $50,000 in coverage although most policies range between $5,000 – $20,000 in death benefits coverage.

Will I Always be Covered?

It depends on the life insurance company.  Most companies sell this policy as a ‘Graded Death Benefit’.  This means that your beneficiary will likely not be entitled to the full death benefits for the first 2 years, although some insurers will pay on the policy in case of accidental death in those first 2 years.

Your beneficiary would only receive an amount equivalent to the premiums you paid up to the time of their death if you should die within this 2 year time frame. (Some insurers may also pay a nominal interest amount such as 5%)(continued on page 2)……..

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Veterans Life Insurance: What One Should Know.

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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

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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……

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Can you Buy Term Insurance at Age 76 – 80?

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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.

What is the Process to Apply for Life Insurance?

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

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

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

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

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

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

Life Insurance Application Waiting Periods

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

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

Let’s look at them in more detail.

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

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

1. Applying for Life Insurance

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

2. Phone Interview

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

3. Issuing the Life Insurance Policy

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

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

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

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

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

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

1. Applying for Life Insurance

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

 2. Taking the Medical Exam

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

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Why Consider “10 Year Term” Life Insurance?

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The most affordable type of life insurance is 10 year term.

This insurance is perfect for a young family, who needs some protection, but can’t afford to pay much.  It’s also great for short term needs.

It’s amazing how much life insurance someone in their 30’s or 40’s can purchase for less than $20 bucks per month if they’re in good health, and applying for 10 year term.

10 Year Term Explanation

Most term policies actually guarantee coverage up to age 95 or longer.  However, the premiums are only guaranteed to stay level for the first ten years.  That means your premiums will stay fixed during the initial 10 years, and in most policies, will rise annually thereafter.

There are various term lengths, such as 20 or 30 year term, which means the premium stays fixed for a longer duration, and remember, the lower the term duration, the lower the premiums.  For more information on alternatives to the ten year term, see our post on Types of Life Insurance.

10 Year Term Life Insurance Quotes

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

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

Using Term for Buy/Sell Agreement or Key Man Insurance

Many business partnership arrangements require term life insurance on each partner, in the event that if he or she dies, the remaining partner/s will have liquid cash from the life insurance benefit to buy out the decedent’s family and or heirs of his or her share in the company.

10 year term life insurance is a popular choice for buy/sell contracts, since it’s the most affordable, and most businesses figure they either won’t be working together that long, or will probably restructure the ownership agreement by the end of 10 years anyway.

Estate Planning using Term Life Insurance

With the current “Band-aid” on estate taxes and the exclusion amount, some people aren’t sure what their long term estate tax implications could be.  A 10 year term policy with a conversion to permanent insurance may be a good solution for high net worth individuals whose estate value is approaching the current taxable threshold, but now quite there.

For example, a married couple with an 8 million dollar estate, with a properly structured AB Trust or bypass trust, may not owe any estate taxes if they were to both die in 2012.  However, if the current estate tax exemption (currently 5 million per individual) were to drop to, say, 3 Million per individual, then this couple would have an estate tax problem.

Since we don’t know what the future holds for estate tax legislation, some affluent families are purchasing 10 year term as a “wait and see” type strategy.  If the exclusion amount gets permanently set at 5 million per individual, or if estate taxes are done away with completely, then these wealthy individuals may decide to drop their coverage.

On the other hand, if the exclusion amount is permanently decreased, at least the policyholder will already have a policy in place (the 10 year policy), and could decide to convert it to a permanent policy such as guaranteed universal life or whole life.

You may also want to see this article for more information on using life insurance to avoid estate taxes and life insurance trusts.

Companies Who Sell 10 Year Term

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

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

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