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.

How to Find Affordable Coverage with Pre-Existing Conditions

Impaired Risk Life InsuranceWhile we are generally very good at Huntley Wealth Insurance with helping individuals with various life insurance needs, our specialty is impaired risk life insurance.

“Impaired Risk” simply refers to the elevated risk a life insurance applicant demonstrates due to medical issues, or occasionally other risk factors.

Life Insurance with Health Impairments

The most common type of impaired risk life insurance is for medical reasons.  So if a 47 year old man has a history of heart disease and was treated with a triple bypass surgery, that would be an impaired risk.

The reason it’s important to use an independent life insurance agent who specializes in impaired risk cases is so you deal with an agent who knows where to place your case.

Most people, when shopping for life insurance, make the first call to their local insurance agent, who probably specializes in home/auto or business insurance, NOT life insurance.

This agent will have no success trying to write a life insurance case with a high risk medical history, not because he or she is incompetent, but this agent simply does not have the required experience to place a tough case.

Try telling your local Farmers Insurance agent you are 6’0 and weigh 280 pounds, and take insulin for diabetes.  He’ll probably tell you he can’t help you.

Or try calling your State Farm agent to see what the cost of life insurance is with multiple sclerosis, or after having a kidney transplant, or if you smoke marijuana.  He might laugh at you.

And yet, we help individuals with impaired life insurance needs obtain coverage like this every day at Huntley Wealth Insurance.

How Much Does Life Insurance Cost with Medical Problems?

Your life insurance premiums will depend on the severity of your health impairment, your age, gender, and then of course, the amount and type of coverage you are applying for.

But generally speaking, the cost of impaired risk life insurance depends more importantly on what type of policy you are able to qualify for.  I recommend my clients try to approve for the cheapest type first (duh), and then if my client can’t qualify for that, move on to the more expensive alternatives.

The four types from most affordable to most expensive are traditionally underwritten life insurance, simplified or jet issue life insurance, graded death benefit, and guaranteed life insurance.

Traditional Coverage – Simplified Issue / No Exam – Guaranteed Issue

  1. Traditionally Underwritten Life Insurance – Unlike income protection insurance, requires a medical exam and application with full medical disclosure.  The insurance company will also access your motor vehicle report, MIB report, and all relevant medical records.  Since the insurance company knows just about every detail about your health in this type of underwriting, if they can make an offer to you, it will most likely be more affordable than the next two options.
  2. Simplified Issue – This is sometimes referred to as jet issue, or no exam insurance.  In this type of underwriting, a medical exam is not required.  The company may still have a lengthy application forcing you to reveal every health detail about your history, and they’ll check your answers against an MIB report and pharmacy report they’ll pull on you, but they won’t make you take a medical exam.  Sometimes, no exam policies are good for people with minor health risks, as the underwriting is quicker and simpler.
  3. Graded Death Benefit – These policies won’t require a medical exam either, and the applications are noticeably shorter than options 1 and 2.  For example, you may only have to answer a half dozen medical questions.  As long as you can answer No to their questions, you qualify.  This type of policy generally costs significantly more than options 1 and 2, because typically only people who can’t qualify for the first two options would apply for graded death benefit life insurance.
  4. Guaranteed Issue – No medical questions on the application.  No health exam.  Just about everyone qualifies, even if you have been diagnosed with a terminal illness.  It’s called guaranteed for a reason.  For people with severe health impairments, guaranteed issue may be their only option.  It is the most expensive of the four.

Perhaps You are “Impaired Risk” Due to Lifestyle Reasons

There are non-medical reasons some people may be classified as “impaired risk”.  These would include, but are not limited to, working in a dangerous occupation, participating in hazardous activities, or traveling outside of the United States.

How to Get an Impaired Risk Quote

If you have a medical condition, call us with the details, and we’ll shop your case out for you.  We know which companies are the most lenient on which medical risks, so your best chance of finding affordable coverage is using Huntley Wealth Insurance.  For a personalized quote based on your health condition, call us at 877-996-9383.

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