Life Insurance for My Father

Posted on January 9, 2013 by Chris Huntley

If you’re interested in whether and how you can buy life insurance for your father, then this will tell you how you the steps you need to take.

There are some crucial things you need to know before you buy life insurance for your father, but this article will help you prepare so you can make an informed decision.

Is Life Insurance a Worthwhile Investment for my Father?

In most instances, the answer would be yes. Life insurance could be considered a very good investment especially if your father is under the under the age of 85. After age 85, the premiums become very expensive, and the amount of available coverage can be very limited with many life insurance companies.

Who Will Own the Life Insurance Policy?

This depends on who is paying for the policy. If your father is paying for the policy then they will own the policy. If you are paying for the premiums then you will be the owner of the policy.

The other thing to know is that if you are paying for the policy, you will not only be the owner of the policy, but will also likely be listed as the beneficiary.

However, there is one small catch if you are the owner, paying for the policy, and are the beneficiary. In order to be approved by the insurance company you may have to prove that you have an insurance interest in order to qualify.

An insurable interest simply means that if your father were to suddenly die, then you would end up financially burdened. This could mean anything such as outstanding debts which will need to be cleared up, such as an outstanding mortgage or the funeral and death expenses for example.

How Much Life Insurance Can I Buy for My Father?

The general rule of thumb which I suggest is that you buy only what you think your father needs. The idea is remove any financial burden rather than thinking as the insurance policy as something to make a profit.

In most instances, the majority of life insurance companies will allow you to purchase up to a $100,000 policy without receiving any obstruction from the company that is reviewing your application.

If you are looking to buy more than this amount, the insurance company will most likely you to justify the reasons why you want to purchase more.

If your father doesn’t owe any money and is living off a small pension combined with social security, then you will not likely be approved for a $500,000 policy for example, unless you can prove the need for such an amount.

Does your Father Need to Know if you Buy an Insurance Policy?

The answer to this is yes. Since the policy is for him, then your father will have to be the signatory on the policy because they are designated as the ‘primary insured’. They will obviously know you are buying a policy for them.

Are there Any Restrictions on Buying Insurance for my Father?

The only restriction that you will likely encounter is that your father will have to take a medical exam. The requirements for medical exams vary from company to company. The medical examination will not be overly intrusive and usually requires only a few simple tests and can be done fairly quickly.

What Kinds of Life Insurance can I Buy for My Father?

You have four choices to consider when deciding on what type of life insurance policy to buy for your father.

The first is called ‘Term Insurance’, and is the most affordable form of life insurance. It is called term because you buy the insurance for a period of years such as 10 or 20 years for example. The basic approach is to buy a policy that might best match your father’s life expectancy. This policy pays death benefits only.

Your second life insurance option is called ‘Permanent Insurance’. Your two main choices for permanent insurance are ‘Whole Life’ and ‘Universal Life’. Although both policies cover your father for life, universal is a cheaper product to buy. These policies not only pay death benefits but also have a cash value accumulation. Either of these policies is ideal if you need to provide a policy for your father for their entire life.

The third life insurance option is called a ‘Second to Die’ policy. If your mother is still alive then this might be the route to take because the policy is only paid out when the second parent has passed away. Also, this policy is often used if you’re planning for an estate or a life insurance trust.

The final option is very ideal if your father has a serious health ailment such as cancer, or heart disease. This policy is known as ‘Impaired Risk Insurance’, and is an area we specialize.

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

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

For the best term life insurance prices on your parents, or any other type of life insurance, it’s best to speak with a knowledgeable professional, who can discuss your options and pricing with you. You may get a quote using our form on the right or by calling us at 877-996-9383.

Life Insurance for International Travel

Posted on January 7, 2013 by Chris Huntley

Many people ask me if there will be any trouble getting them insured with life insurance if they travel internationally.

The answer is:

It depends. It depends on where you’re traveling to, the accommodations in which you’ll be staying, and how long you will be in that country. To be clear, travel is to be defined as someone who spends three months or less per year in another country.

For someone who spends more than three months in another country, they would be treated as a non-U.S, resident. That is somebody who does not have full-time permanent U.S. residence, or resides outside of the U.S. for three months or more annually.

Citizenship is not a determining factor in defining a non-U.S. resident, but if you are a U.S. citizen and U.S. resident and plan to travel a bit, here are some tips and ideas about how that will affect your life insurance rating.

First of all, if you travel to locations that are hazardous, this could possibly lead to a decline or rated case. For example, somebody who may be in the best of health may only get an average or standard life insurance rating if every year they visit China for two months.

In the case of China, there are some modern cities that are comparable to those in the west, such as Beijing, Shanghai and others, but if you were to travel to those regions it could lead to a lowering of your health rating class, which increases your premium.

Then in other more extreme examples, if you visit countries that may not be as safe, such as Honduras, Guatemala, or El Salvador all in Central America, and you are visiting those countries for two months, that could lead possibly to a decline of coverage.

Other examples in Africa or the Middle East could be Egypt, Israel, Iraq, Afghanistan, and so on. You can see that these countries are clearly more hazardous than visiting Canada or Greece or Germany or Chile, or other modernized nations.

Since the life insurance company does have to pay the death claim if you die in one of these foreign countries while insured by them, they clearly have to take this into account in their underwriting.

So, you have a few options when you are looking for life insurance with international travels:

1. Make no plans for international travels before you buy life insurance. Many applications only ask about future travels, and not previous travels, so it’s possible even if you’ve been touring the world the last ten years, that you could get a policy if you have no current plans to travel outside of the U.S.

2. Only make plans to travel to well-established countries. I mentioned a few above. Some others might be Argentina, Japan, Ireland, England, most places in Europe, actually, Australia, New Zealand, Puerto Rico, and so on.

3. Keep your travels under four weeks. One company I write business with frequently allows you to visit any country, whether it’s North Korea, China, Saudi Arabia, or even Israel or Afghanistan, and you could still get their best rating.

The reason for that is because their foreign travel question on the application only asks if you plan to visit a country outside of the United States for more than four consecutive weeks, so you could potentially have travel plans to any of those places I just mentioned, as long as you’re only going there for two or three weeks, you can answer “no” to the travel question on the application.

You are not lying; you’re telling them the truth by answering “no” if you’re only going for two to three weeks, which brings me to number four.

4. Use an experienced, independent life insurance agent. If you do have travel plans, some insurance companies will treat those plans differently than others, so you need to use an independent agent who can tell you which the best company is to apply to.

For example, in question number three you may have no problem at all as long as your travels are scheduled for less than a month, but if they’re scheduled for more than a month, you really need to speak with an independent agent to see which company will treat you the best and give you the best deal.

As far as international travels go and type of life insurance, there are not typically any restrictions on the type of insurance that you can buy, so if you’re looking for term insurance, universal life, or whole life insurance, any of those should be fine. That is not really a factor in the approval.

What is a factor, again, is how long you plan to stay, which countries, and the accommodations while you are there. As always, you should speak with an independent agent like me to discuss your travel plans, and for a quick quote you can call us at (877) 996-9383, or simply get started with a quote request using our form to the right.

Review of Globe Life Insurance Company

Posted on December 13, 2012 by Chris Huntley

When you shop for life insurance it’s a good idea to learn everything you can about the particular company that you plan to use when purchasing your policy.

Having said that I’m going to give you a helping hand by providing a brief review on Globe Life Insurance so you can see whether or not you would like to use the services of this insurance company.

Globe Life Insurance Company Overview

Globe Life Insurance Company was originally founded in 1951. The company’s home office is located inOklahoma City. As an insurance provider, the company now currently serves over 3.8 million policy holders and has more than 6o billion dollars worth of insurance in force.

Globe Life Insurance Company is a wholly owned subsidiary of Torchmark Corporation. Torchmark is an S&P 500 company and is traded publicly over the New York Stock Exchange.

The services and products offered by Globe Life include children’s life insurance, adult life insurance, accidental death insurance, mortgage protection plan, and child’s safe kit and Medicare supplement.

Financial Strength of Globe Life Insurance Company

One of best ways to determine the financial of a publicly traded company is to find out how it is reviewed by rating companies. The reason you look into this is so that you can verify the financial health of the insurance company to ensure it will be able to make good on any claims made against the company by its policyholders which includes you as well.

There are a number of rating companies including A.M. Best, Fitch, and Moody’s – just to name a few who closely scrutinize the stability of a company.

How does Globe Life Insurance rate with these rating companies? As of June of this year, Globe Life Insurance was rated by A.M. Best as having an A+ rating which is a very positive rating and suggests that the company is very financially stable.

Life Insurance Products Provided by Globe Life Insurance Company

Globe Life Insurance Company offers the following life insurance policies to its clients…(continues of page 2)

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Review of Lincoln National Life Insurance Company

Posted on December 13, 2012 by Chris Huntley

In this article, I’m going to provide you with a review of Lincoln National Life Insurance Company.

Knowing more about an insurance company will help you make an informed decision in considering whether this life insurance company is the right choice for you.

Lincoln Life Insurance Company Overview

Lincoln National Life Insurance Company is part of the Lincoln Financial Group. The company has its headquarters in thePhiladelphia region. The company has its origins going back to 1905 and has risen steadily as a financial group and as an insurance company since its inception.

The services provided to individuals by this company include annuities, life insurance, long-term care, and employee benefits. Additionally, the company also provides retirement plans, group insurance and executive benefits for employers, and also provides presidential funds for investment management.

Lincoln Financial Group is ranked number 247 in the Fortune 500, and as number 220 on Baron’s 500.

Financial Assessment of Strength of Lincoln National Life Insurance Company

One of the ways a person can determine whether an insurance company is suitable is to know how strong the company is considered financially. A financially stable company will able to fund its payments and since this is a long term investment for you, it is vital you pick a company which is financially secure.

You can always learn about the financial stability of any listed company by checking a company through the rating companies such as A.M. Best, Standard and Poor’s, Moody’s, and Fitch, just to name a few. These companies perform a detailed analysis of the financial strength of a company and rate how stable it considers the company.

If you’re wondering how Lincoln National Insurance company rates with these companies, I just happen to have the information available. At the present time, A.M. Best gives Lincoln a rating of A+ (Superior), while at Fitch it is rated as A+ (Strong), and at Moody’s it has a rating of A2 (Good), and finally at Standard’s and Poor’s it is rated as AA (Very Strong).

Overall, Lincoln National Life Insurance Company could be considered as being very financially sound.

Life Insurance Products Provided by LincolnNational Life Insurance

Lincoln National Life Insurance provides the following life insurance products:

Term life insurance

Term life insurance is the most affordable form of life insurance available. This type of life insurance covers death benefits only, and can be purchased in periods of time which is why it is called ‘term’.

AtLincolnyou can buy term insurance for 5, 10, 15, or 20 years. When you buy a term policy, the premiums are fixed for the life of the term. It’s always better to buy a longer term because the premiums get progressively more expensive each time you renew the policy.

Permanent Life Insurance

Permanent life insurance combines 2 features which include the death benefits but also has the added advantage of a cash accumulation feature. The cash accumulation is often used as a complement to your retirement plan and has the added advantage that you can borrow against a portion of the amount which you accumulate.

At Lincoln National Life Insurance Company, you have 2 types of permanent life insurance policies to choose from and they include:

Universal Life Insurance – Also provides you with a cash value and death benefits but has the added advantage by giving you the option for you to make monthly premiums which are more flexible. You are also allowed to determine the amount of your death benefit while the policy is still in force. Your cash value accumulation growth can be set at a set rate.

Your earnings are not taxed until they are paid out (tax-deferred)

Variable Life Insurance – Provides all the benefits which you find with universal life insurance. The main difference is that your cash value accumulation has the potential to grow and based on the market performance of the portfolio you have selected. You can choose where your premiums will be invested. Like universal life insurance, your earnings are tax deferred until they are paid out.

Complaints against Lincoln National Life Insurance Company

Any company of any size will experience its share of consumer complaints. The best place to check out a company and how it rates is through the BBB (Better Business Bureau). Lincoln National Life Insurance Company isn’t listed but Lincoln Financial Group is listed with the BBB and it has been a member since 1939. This company has a rating of A+ which is the top rating.

Who Should I Name as Contingent Beneficiary on my Life Insurance Policy?

Posted on December 11, 2012 by Chris Huntley

Life insurance applications allow you the ability to name one or more primary beneficiaries and contingent beneficiaries.

Most people are not quite sure who to name as their contingent beneficiaries.

In this post, I will help you determine who you should name as the contingent beneficiary; any rules that apply to doing so, and also give advice for special circumstances such as who you should name as contingent beneficiary if you are married with minor children.

Who should I list as my contingent beneficiary?

This question is more easily answered if you start with who you should name as your primary beneficiary. Most people will name their spouse, children, or other relatives as their primary beneficiary.

Sometimes the primary beneficiary is a business partner or lender to whom you owe money. However, while most of our clients know exactly who needs to benefit primarily financially from their death, sometimes it takes a little thought to decide who the funds should go to if the primary beneficiary(ies) is/are no longer living.

The most common scenario is in a family where you purchase insurance for yourself with your spouse as the primary beneficiary.

That is typically purchased because you are working, earning and income and if – god forbid – something happens to you, you want your spouse to have some funds available to either pay off bills, replace some of the income that would be missing in your absence and so on; so in this case, most people will leave their child or children as the contingent beneficiary, and here is what would happen:

If you were to pass away with your spouse living of the primary beneficiary, your spouse would receive the death benefit.

However, if your spouse were to predecease you or let’s say you were both killed in an accident simultaneously, then the contingent beneficiary/beneficiaries would receive the life insurance proceeds.

If a trust is present – meaning if you have a family trust or a living trust, most attorneys suggest leaving your trust as the secondary beneficiary. The reason that is because you have already made determinations in your trust about how the trust funds will be distributed upon your passing.

Also, many trusts have asset protection features which make the trust a great choice for the contingent beneficiary if you have one. If you don’t have one, most people will choose their children or other relatives. If those are not available, some people will choose their favorite charity, church, or place of worship.

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Life Insurance for the Elderly

Posted on December 17, 2010 by Chris Huntley

Life insurance isn’t just for young people. This is a common misconception.

If you an elderly person, and here I mean between the ages of 60 – 85 years of age, there can be a variety of valid reason why you need or will want to have life insurance.

It just so happens that at Huntley Wealth Insurance, we specialize in helping the elderly find affordable life insurance.

If you’re wondering if you can still be accepted for life insurance coverage because of your age or health issues, or whether you will able to afford life insurance, then I have some good news to share with you.

Please read on as there is a good chance that I can help you find the coverage and at a price you can afford.

Important Points for the Elderly to Consider When Buying Life Insurance

If you’re in your sixties, seventies or even eighties, here is some valuable information for you consider about buying or renewing your life insurance policies.

The most important thing you need to know is that not every insurance company is the same. Some insurance companies are much more lenient than other companies when it comes to hitting a milestone birthday, or in how they rate you for insurance coverage based on your health issues.

The second most vital thing to know is that you should always use the services of on an ‘independent’ agent to find the best rates and coverage for your particular situation. Some company agents only represent one or a couple of insurance companies which means you are restricted only to their products. And, going direct to a particular insurance company limits you to only a single line of products so you have no options at all.

An independent agent has access to dozens of companies and can shop around for a company that will cover you, regardless of your health issues (there are exceptions and situations where we might not be able to help). We can shop around and find you the best coverage and at the most affordable rates.

Let’s break it down into more specific age groups.

Life Insurance for the Elderly – Aged 60 – 69

It’s often in this age bracket that health factors begin to have a greater impact on how well and for what policies a person can qualify when applying for life insurance. This is a time in our lives when many of us are faced with such health issues like cholesterol, have cardiac issues or high blood pressure that needs to be controlled with medication. You could have developed Type2 Diabetes, or maybe you still like to smoke cigarettes or enjoy an occasional cigar. These are all issues that have an impact on your insurance and how the insurance company rates you.

Life Insurance Options for the Elderly

Basically you can choose between Term life insurance and Permanent life insurance (includes whole life, universal life and variable life insurance).

Term insurance

Term insurance is the most affordable forms of life insurance policies available. It covers death benefits only and is often chosen as income replacement. Although it covers you for life, you buy it in packets of years such as 10, 15 or 20 years and that is why it is called term.

Permanent life insurance will cover you directly up to age 120 and includes a cash value accumulation feature. Permanent policies are available for whole life, universal life and variable life.

How Long a Term Insurance Should a Sixty Something Buy?

If you’re thinking of buying term, you are most likely thinking you just need the death benefits to replace any loss income that could result should you die unexpectedly.

The general rule of thumb is to simply consider how many years you plan to continue working and buy a term policy to cover that period. You should also know that the shorter the term you buy – the cheaper it will be.

Another reason to consider term is that if you want to include your life insurance in an estate planning scenario, you could need to buy a longer term so you might need a term policy that covers you into your 80’s or even longer. You can actually buy up to a 30 year term, but the majority of life insurance companies won’t let you do this pass age 65.

Your other option available might be to consider permanent life insurance.

Permanent Life Insurance for the Elderly in their Sixties

For some folks, a term life insurance policy isn’t going to meet all their insurance needs, and they require something more substantial for their particular situation.

People are living longer these days and passing age 100 is becoming increasingly common. One big advantage of a permanent life insurance policy is that it will cover you up to at least age 100, and even up to 120 with some other companies.

Permanent life insurance policies have one big difference than term life policies. They all offer a cash value accumulation feature which is absent in term life policies. This affects the premium so you should be aware that a permanent life insurance policy will involve a more expensive premium

For whole life insurance quotes, call us at 877-996-9383.

For universal life insurance quotes, Term Life Insurance Rates, or return of premium quotes, use the Instant Quote Form on the right.

Life Insurance for People in their Seventies

As mentioned above, health factors begin to have a significant impact on how a person is viewed by the insurance company. Different companies have those milestone birthday years where things can change when buying or renewing a policy.

If you tried to renew a policy and were denied, or were going to be charged an exorbitant premium because of a lower rating, don’t give up. You still have options because like I said earlier, every company is different and has different qualifications and restrictions

Term Life Insurance Versus Whole Life Coverage Over Age 70

Term life insurance is definitely more affordable for someone in this age group, especially if a tighter budget is involved.

What kind of term insurance is available for someone in this age group? Well, you can get a 20 year term policy with some companies all the way up to and including age 75. Between 76 and 80 years of age, the longest term you will find is 15 years.

If you need a policy which is more substantial than you might want to consider permanent life insurance such as whole life, universal or variable life. My personal recommendation when considering permanent insurance is called ‘guaranteed universal life insurance’.

It covers you for the rest of your life but doesn’t encumber you with the all the cash accumulation value that you would have to pay towards such as is required under a whole life policy.

I have found that most people who require life insurance in their seventies aren’t buying insurance for income replacement which is the reason why most people pick term insurance in the first place. Instead, many people in their seventies need coverage for their entire life, and that’s why I will often recommend a permanent policy in many of these situations.

Life Insurance for People in their Eighties

Insurance becomes somewhat more restrictive as you get older. Term life insurance policies are still available when someone turns 80 or older. However, the length or period of term that you can buy becomes much more limited.

Mostly, you can still buy a 10 year term policy all the way up to and including age 85. If you need insurance that lasts you longer or more extensive coverage than your best bet would be consider buying permanent life insurance which can cover you all the way up to age 120.

If you have any questions or need assistance selecting the appropriate type or amount of life insurance coverage, please feel free to call the office at 877-996-9383.