18. September 2017 19:32
by John
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Best Term Life Policy An Ultimate Guide For You

18. September 2017 19:32 by John | 0 Comments

 

What is a term life policy?

Quite simply, a term life policy is insurance protection that provides your beneficiaries with a cash death benefit if you pass away during the term of the policy.  For help understanding  the difference between a term policy and a permanent policy you can visit Us .

Life insurance companies will offer a term life policy for those individuals who qualify under a company’s underwriting guidelines. 

Underwriting guidelines are the criteria that insurance companies use to determine if you are an acceptable risk.

It’s important to remember that each life insurance carrier has different underwriting guidelines. They will all look at your health and lifestyle differently.

How do I know which life policy is the best?

To determine which life policy works best for your situation it is important to do a little bit of homework. By reviewing this article and with the help of google you should be able to gather enough information to make a wise decision regarding your life insurance needs.

Let’s breakdown some of the common questions surrounding a term life policy and how to go about finding the best plan.

How much coverage do I need?Best Term life policy

This is probably the best starting point when purchasing life insurance protection. Here are some of the common reasons individuals purchase life insurance:

  • Replace income– this is probably what most people thing of when trying to determine how much life insurance protection to buy. If you are not around to earn an income, then your family will suffer a significant lifestyle challenge. Six to Ten times income is a good starting point.
  • Mortgage Protection– another common reason a family might purchase life insurance is to make sure the mortgage balance is paid off in case of an untimely demise.
  • Children Education– Planning for a college education can be very expensive. Who knows where your child may want to go to college. And with college costs rising every year, protecting this need with life insurance makes a lot of sense.
  • Final Expenses- the cost of final expenses such as funeral and burial continues to rise. Also paying off any outstanding credit card or auto loans may be something that needs to be planned for.
  • Estate Planning Needs– Life insurance can often times be a good tool for those who expect to have a large estate tax due upon death. Other estate planning needs that life insurance can assist with include college endowment or charitable giving.

Now, it is important to remember that each person’s needs are different and we recommend a complete needs analysis from an insurance professional, CPA or estate planner to determine exact needs.

But, if you wish to do a quick needs analysis in order to get coverage in force as quickly as possible.

To this point we have primarily talked about term life coverage for personal family needs. But, term life insurance can also be used the same way for business needs. Here are some of the common ways that term life insurance can satisfy business protection needs:Best term life policy

 

 

  • Key Person Insurance– Life insurance protection on a key member of a business or organization. Someone who is vital to the continuation of the business.
  • Buy-Sell Insurance– A buy-sell agreement between two business partners can be funded with life insurance. This insures an easy transition of the business if one of the partners dies.
  • Collateral Assignment– Many times banks want a life insurance policy assigned to them as the lender on a business loan.
  • Executive Bonus– Often times a life insurance policy can be used as a special bonus to an important member of the business. This type policy can offer extra protection for the employees family.

 

Who is the life policy for?

Another important question that must be answered when you are thinking about purchasing a life insurance policy is who actually is the policy for?

Most often this is fairly straight forward when a personal policy is purchase. Many times the spouse is named as primary beneficiary. But, the need for coverage may be more complicated than this.

What if you want to leave money to your kids from a previous marriage? What if you have a former spouse that must have her as the beneficiary due to a divorce decree? Are there step-children involved? If leaving to minor children is there a guardian or trustee set up?

These questions on the surface may sometimes seem simple, but often times can get confusing. Again, it is important to know who the benefit of the life policy is for and make sure to update any necessary beneficiary changes.

How long do I need the protection?Best term life policy

Okay, this question is sometimes the most difficult to answer. After all, most people want the coverage to be in force for as long as possible. But, it is very important to remember that term life insurance is temporaryprotection, not permanent protection. This simply means that at some point when the original term period has expired the rates will increase dramatically if you want to continue the coverage.

Term life insurance by its very nature is the least expensive type of coverage you can purchase. It is meant to provide you with the most death benefit protection for the least amount of premium. So, it is important to know why you are buying the coverage and how long you want the coverage to offer protection.

Let’s look at a few examples of term life policies that are offered in the marketplace:

  • 10 Year Guaranteed Level Term–  This policy offers a guaranteed level premium for 10 years. At the end of 10 years the rate will adjust higher. This policy should only be for a short term need. An example would be perhaps someone who has just 10 years remaining on a home mortgage. A 10 year term policy would not make sense for someone who needs protection to last 20, 30 years or longer.
  • 15 Year Guaranteed Level Term- Offers guaranteed level premiums for 15 years. Rates for this policy will be more expensive than a 10 year policy, but will also offer an additional 5 years of coverage. This policy could make sense if your needs are limited to around 15 years. An example might be a married couple with a young child that will be through with their education/college within 15 years.
  • 20 Year Guaranteed Level Term-  A 20 year guaranteed level premium plan offers many people a good compromise. The rate will be more expensive than a 10 or 15 year policy, but offers an additional number of years of protection. An example for this policy would be an individual who is age 45 and wants protection to last until they retire at 65.
  • 25 Year Guaranteed Level Term- The 25 year term policy is not offered by as many insurance carries as the 10,15 and 20 year plans, but can be a great fit for someone that has new baby or new mortgage and wants to have coverage with guaranteed level rates for 25 years.
  • 30 Year Guaranteed Level Term- The 30 year guaranteed level term is very popular especially for young families and those with new mortgages. The rates are higher than those of the other terms, but provides excellent  long term protection during most of the working years.
  • Return of Premium Term– The return of premium term policies offered in the marketplace allow you to still lock in most of the guaranteed level rates mentioned above, but with one caveat. This policies allow you at the end of the return to recoup most if not all of the premiums you have paid in. Of course these rates are higher priced, but for those individuals who may need a simple way to insure and save, this product can be a solution.

What if I have health problems? Can I still get a term life policy?

Okay, so you have determined you have a need for life insurance. You know the amount of coverage you desire. You know the plan of coverage you want, but what happens if you have a history of pre-existing medical conditions? Or perhaps you scuba dive, race cars or have a high risk occupation.

Finding affordable protection for those who may be in less than perfect health is possible. But, there are a couple of things you need to do to help your cause. First you must work with an agent or agency who specializes in this niche area of underwriting.

Any agent in the marketplace can write a term life policy on someone who is in perfect health. But, only agents who have years of experience and knowledge working with all kinds of health impairments can find you the company that specializes in your particular risk.

As we mentioned earlier, all life insurance companies have certain criteria they look at when evaluating someone for coverage.

But, there are also a handful of companies who underwrite certain risks better than others. The secret is finding the company that will offer you the lowest rates for your condition.

Fortunately, you have landed on the right page. We are experts at finding the companies who do this type of underwriting the best. In fact, with our over 30 years of experience we often times can instantly tell you if an offer is possible and what even give you a quote.

Optional riders that can be added to a term life policy

Many of the hundred, if not thousands of life insurance carriers offering term life policies also offer riders that can be added to the base policy.

A rider is simply an additional benefit added to the base policy at an additional charge. Here  are some of the most common riders that can be added to term life policies.

  • Waiver of Premium– this benefit which is typically available up to about age 55 allows the insurance company to waive your premium should you be disabled.
  • Child Rider– A child rider offers a low cost way to add child(ren) coverage to your policy. Most child riders are limiting to $10,000 of benefit per child.
  • Spouse Rider– Much like the child rider , the spouse rider allows you to include your spouse on the base policy. The benefit amount for the spouse is usually limited to $50,000. Important to note that all riders are subject to same underwriting review as the base policy.
  • Long Term Care or Critical Illness Rider– these riders are fairly new and only a few carriers offer them. But, they do offer you the ability to accelerate your death benefit and use for a long term care or critical illness. The definition of the long term care or critical illness rider is different for each carrier, so it is important to review carefully.
  • Accelerated death benefit rider–  This rider has become very common on most term life contracts and often times has no additional premium charge. Most define this rider as the ability to accelerate up to 50% of the death benefit early subject to a maximum amount if you are diagnosed by a doctor with a terminal illness and have less than 12 months to live.

Real Life Example of the use of Term Life Insurance

David is a 35 year old married man with 3 children ages 8,5, and 3. David has a small amount of life insurance at his work, but feels the need to have more coverage. David has approximately $225,000 left on his mortgage. His income is 85,000 per year. David wants to be sure that his wife and kids have enough money to pay off the mortgage, put the kids thru school and still have income to live off of. David calculates his needs at $1,000,000 of coverage.

David would also like a policy that will stay in force until he retires in approximately 30 years. In order to keep his premium cost down, Dave wants to ladder his policies. This laddering will help his coverage stay in affect for the needs as he goes thru his life. Dave decides to purchase a $225,000 15 year level term to match the approximate time left on his mortgage.

Dave’s youngest child is 3 so he determines that a 20 year guaranteed level term policy for $250,000 should be set aside for education purpose. The remaining $525,000 of coverage will be carried under a 30 year guaranteed level policy.

Dave would also like to add some coverage for his wife and kids. So, he decides to add a child rider for $10,000 of protection for each child and he places a spouse rider of $50,000 for his wife.

Dave now has a complete line of protection for most of his foreseeable needs.

Conversion option with term insurance

One of the most important features that is offered for free with most term life policies is something called the conversion option.

The conversion feature is included in most term policies, but it is important to check your particular proposed plan to see the details of this option.

Some companies only offer the conversion option for a limited time. Perhaps only during the initial guaranteed level period or to a certain age. Knowing how long your conversion option is offered can be particularly important if or when you need it.

Here is exactly what the conversion option is. The conversion option allows you to convert any or all of your term death benefit to a permanent lifetime death benefit with no medical underwriting or health questions.

Now, you may ask why is this so important. Here is why. Suppose your needs change and so does your health. Let me give you an example.

Joe purchased a 10 year level term to cover him until is youngest kid gets out of college. Joe was originally issued a $250,000 policy at super preferred non-tobacco rates. Approximately 5 years into the term policy Joe is diagnosed with diabetes and high blood pressure. Joe also finds out a new surprise. His wife is pregnant.

Joe knows his current 10 year term policy only has 5 years remaining. He is worried if he will not be able to qualify for new insurance protection due to his medical history.

Fortunately,  Joe has the conversion option on his current policy. He can now convert any or all of his current term policy to a new guaranteed lifetime level premium policy with no medical exam or health questions. The conversion option is guaranteed.

When or if he converts his current coverage to a new plan he will receive the super preferred non-tobacco risk class that he was originally approved at 5 years earlier. This is a huge advantage for those whose health has changed but still need insurance coverage.

Bottom line is, you never know if you will need to extend your coverage. You also never know what your health will be. It is vital that your current term life policy have the conversion option included just in case.

Who are the best term life policy companies?

In the life insurance arena it is common to see some of the same company names show up year after year as having the best term plans. Of course, occasionally you will have a company that wants to make a splash in the term market and they will lower their rates to be competitive.

Or, you may find a company that wants to be more competitive in the “impaired” risk marketplace, so they begin to price their rates better for those with diabetes, heart disease, etc.

But, as of the time of this blog, below are the companies that typically show up as being competitive both in price and underwriting. In addition, all of these carriers are rating excellent by most of the rating services such as A.M. BEST, Standard & Poors and Moody’s. In no particular order:

  • Protective Life
  • Banner Life
  • Prudential 
  • Lincoln National Life
  • Principal National Life
  • Cincinnati Life
  • Ohio National Life 
  • American General Life
  • John Hancock
  • Mutual of Omaha
  • Pacific Life
  • Assurity Life 
  • North American Life
  • Mass Mutual Life
  • Savings Bank Life 
  • Independent Order of Forresters

How to apply for a term life policy?

Nowadays there are many ways to buy life insurance. Below are some of the ways you can purchase a term life policy.

  1. Online from a big box quoting service perhaps hundreds of miles away.
  2. From your hometown property and casualty company
  3. Direct toll free number to an insurer
  4. The use of an independent insurance adviser
  5. A bank
  6. Financial Adviser or CPA

It’s important to keep in mind, how much assistance you will need when purchasing coverage. Will you need help finding the lowest rates? Do you want to be sure to have somebody to call on policy issues that come up after the policy is placed? Do you have a pre-existing medical condition that needs an experts assistance? Do you need to know every detail about the policies? (conversion, riders, etc.)

Most people buying life insurance know that somebody will get paid a commission to help with your policy. All life insurance policies pay a commission to someone- no matter how much assistance you get. The commissions are already built into the price of the policies, so there are no negotiations on commissions like with a car sale or some other large ticket item.

In other words, let’s say you buy a Prudential policy from an agent in California even though you are located in Georgia. The rate would be the same in Georgia as it would be in California. So, what you are paying for is the service you get in helping you obtain the protection and the service you get once the policy goes in force.

So, although a quick toll free number to someone sitting in a stall may be a quick way to get a quote- what actual personal service will you get thru the underwriting process and after the policy is completed? I mean will you ever be able to get a hold of the person again from the 1-800 number.

Of course, we are probably biased, but we feel you will get the best rates, knowledge and service from an independent agent who has been in the business for 20+ years.

An independent agent will represent hundreds of companies and will be able to give you expert advice on the questions you need answered. Also, an independent agent who has been in business for many years is here to stay. No worries about not being able to reach your agent when the time arises.

Remember, someone on the end of that phone is getting paid to sell insurance. We think it should be someone who will be there to answer any questions that arises and represents your best interest, not theirs.

Information needed to quote on a term life policy

  • Name
  • Date of birth
  • Amount of coverage needed
  • Type of plan (if known)
  • Tobacco use within 5 years
  • Family history of cancer or heart disease before age 60
  • Current medications
  • Brief medical history
  • Any foreign travel
  • Any motor vehicle violations
  • Any hazardous activities or hobbies

Exam or non exam term life policy

Many insurance companies offer individuals the opportunity to purchase life insurance with or without an exam depending on the circumstances. If you are a relatively healthy individual less than 50 years of age, you can typically buy coverage up to $1MM without a medical exam or bloodwork.

Now you will typically pay a bit higher rate to buy insurance without an exam or labs, but if you are in a hurry for protection and a few extra dollars does bother you, then a no exam policy could be a good idea.

If you are not in a hurry, and want the absolute lowest rates then a fully underwritten policy with exam and lab work will give you the best chance for the lowest rates.

Again, an experience agent who offers all the different options will give you the information you need to make the best decision.

 

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14. September 2017 19:10
by Ammelia
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Life Insurance After Heart Bypass Surgery

14. September 2017 19:10 by Ammelia | 0 Comments


After a major life event like bypass surgery, it’s understandable that you’d be in a hurry to buy life insurance as soon as possible. This is often a mistake. Life insurance companies will see your past surgery and this could prevent you from receiving a policy.

To qualify for insurance after a bypass, you need to plan right and fill out a good application. To get you ready, here is a review of the insurance guidelines for after bypass surgery as well as some tips to help you with your application.

When you’re shopping for life insurance protection, there are dozens of different factors that you’ll need to consider. It can be a confusing and difficult process, especially if you’ve had a bypass surgery in the past. Life insurance is one of the most important purchases that you’ll ever make for your loved ones, and your health shouldn’t keep you from getting the protection that your family deserves.

Life Insurance Underwriting after Bypass Surgery

When you apply for life insurance, you’ll need to answer several questions about your bypass surgery for your application. You’ll need to answer:

  • What did you have your bypass surgery?
  • Why did you need to have bypass surgery? Was it an elective or emergency procedure?
  • Have you ever had any other types of heart surgeries like a heart valve replacement?
  • Were there any complications after the surgery like internal bleeding, cardiac tamponade, or a stroke?
  • Do you have any other high risk factors for heart disease like smoking, high cholesterol, or high blood pressure?
  • Do you have a history of heart disease?
  • What medications are you taking because of the bypass surgery?

Common medications for after a stroke include: Clopidogrel, Beta blockers, Nitrates, ACE inhibitors, and Lipids.  All of these medications for a stroke could be insurable depending on your health after the surgery.

Be sure to answer all these questions in detail for your application. For life insurance underwriting, more information is better. If an underwriter felt your application was incomplete, especially after something major like bypass surgery, there’s a good chance you’d get a poor rating or a denial.

Life Insurance Quotes after Bypass Surgery

If you’ve had bypass surgery, it’s very important to delay your life insurance application for some time after your surgery. This is because life insurance companies typically deny applicants that just had bypass surgery; there are too many complications that can come up. It’s best to wait at least 6 months to a year before applying.

When you apply, insurance companies will review the details of your bypass surgery as well as your overall health to make a decision. Your rating would depend on how well the surgery went as well as whether you are taking steps to avoid future heart problems. While each insurance company uses slightly different underwriting standards, here are some general guidelines to help you estimate what rating you’ll get for your life insurance.

  • Preferred Plus: It’s not possible to get a preferred plus rating after bypass surgery, even if you are healthy and the procedure went well. There is just too high a chance of future heart problems for insurance companies to be willing to give the best rating.
  • Preferred:  Also usually impossible for applicants that have had bypass surgery. In very rare cases, someone that had an elective bypass and was otherwise in perfect health might qualify for a preferred rating, but this is not something you should expect.
  • Standard:  The best possible rating for most applicants after a bypass surgery. Applicants need to have waited at least a year after the surgery and be in perfect health otherwise. The bypass surgery also must have been a minor procedure, like elective surgery to get around a blockage early.
  • Table Rating (substandard):  A table rating is the most likely rating for applicants that have had bypass surgery. Applicants should have waited at least 6 months after their surgery to qualify. Rating will depend on the severity of the bypass surgery, whether there were any complications, whether the applicant had other procedures like a heart valve replacement, and the applicant’s general health and family history.
  • Declines: Applicants that apply within 6 months of their bypass surgery. Also, applicants that aren’t regularly seeing their doctor, have a history of serious heart problems, and/or have heart risk factors like smoking or high cholesterol could also be denied.

Bypass Surgery Case Studies

If you’ve had bypass surgery, it’s very important that you plan your application right. Here are a couple real life examples that show the difference your application can make.

Case Study #1: Female, 63 y/o, non-smoker, had bypass surgery for a small blockage at 61, tried applying right away and was denied, otherwise in good health.

This client has a small valve blockage a few years ago that she decided to have removed through elective bypass surgery. Immediately after the procedure, she tried to buy more life insurance. Since she didn’t give anytime between her procedure and her application, the insurance company denied her application. At this point, the client thought she couldn’t get coverage. After contacting us, we recommended she try again. Since she had waited the appropriate amount of time, she qualified for a standard policy this time around.

Case Study #2:  Male, 57 y/o, needed bypass surgery at 54, former smoker, recently lost weight and reduced cholesterol levels, taking lipids for cholesterol.

This applicant had an unhealthy lifestyle. He smoked, had a poor diet, and didn’t exercise. This lifestyle eventually forced him to have bypass surgery. After the surgery, this client started living a much healthier life. He also started taking lipids for his cholesterol, as this was a big part of why he had heart problems.

Despite these improvements, this applicant still had trouble getting life insurance. We believed this was because insurance companies were too focused on his past history. We recommended this applicant meet with his doctor and get a note vouching for his improved health. By reapplying with this note, the applicant got a Table Level 2 Policy, a decent rating for someone in his condition.

As you can see from the examples, there are dozens of different factors that the insurance company is going to look at, and every applicant is going to be different. There are no two applications that are the same, and every company is going to view your application differently. Some insurance companies are going to view a history with a bypass survey more favorably than other companies are going to. Finding the right company could be the difference in getting approved for affordable coverage or getting a plan that’s going to break your bank every month.

Getting Affordable Life Insurance Coverage After Bypass Surgery

As an applicant with a bypass surgery in the past, you’re going to be facing higher premiums, but that doesn’t mean that you have to purchase a policy that is going to break your bank every month. There are several ways that you can get lower insurance rates for your coverage.

The first thing that you should do is cut out any tobacco. Using tobacco is hands-down one of the worst things that you can do for your life insurance premiums. In fact, anyone that uses tobacco is going to pay twice as much for their plan versus what a non-user is going to pay for the same sized plan.

Another way to save money on your life insurance protection is to improve your health. As a person with a bypass surgery, you’ve already have one red flag on your application, which means it’s important that you improve the rest of your overall health. Starting a healthy diet and getting regular exercise can help you lose weight, lower your cholesterol, and a whole host of other health benefits. All of these are going to translate into lower rates for your insurance coverage. If you want to save money every month on your coverage, it’s time to lace up your running shoes.

Comparing different policies is always going to be the best way to save money. As we mentioned, every company is different, and all of them are going to give you different premiums. You’ll get drastically varying rates based on the company that you get the quote from.

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14. September 2017 18:51
by Ammelia
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Buying Term Life Insurance in Your 30s

14. September 2017 18:51 by Ammelia | 0 Comments

It’s the best time to buy life insurance.

Okay, so maybe they don’t actually say that, but the point still stands: Life insurance in your 30s is often one of the most practical, impactful and affordable times to buy a policy. (And, it’s not a coincidence that our average Haven Term customer is in his or her mid-30s.)

Your 30s are riddled with numerous changes and responsibilities that drastically impact your finances.

Perhaps you just got married, had your first child, or bought a house. These are all significant life milestones that typically result in you having people in your life who rely on you and your income.

Why You Need Life Insurance in Your 30s

When you have people who financially depend on you, it’s time to get life insurance. Buying a life insurance policy in your 30s allows you to lock in affordable rates while you’re still young and healthy. It’s also a prime time to purchase adequate protection for the long-term.

#1: To Financially Protect Your Family

Many people are married and planning for kids by their 30s. It’s a decade where a lot can happen within a short period of time.

In buying life insurance now, even if you don’t have kids yet, you can help ensure that your spouse has a financial cushion from the unexpected. And, you will have peace of mind in knowing that your partner can cover many debts and day-to-day expenses if you were no longer around.

Financially protecting children you don’t have yet may seem like an abstract concept. However, the moment you lay eyes on your child, reality and the need to protect firmly takes hold.

But, you don’t have to wait until the day your child is born to get adequate life insurance coverage. Be proactive. Get it while you still have the luxury of a little something known as “spare time” (aka, life before kids).

#2: To Lock in Affordable Pricing

Because of the way life insurance premiums are determined, the early bird really does get the worm. Premiums for a term life insurance policy can be very affordable when you’re young but tend to increase with age. For example, a healthy 30-year-old woman can purchase a 30-year, $500,000 policy for about $34 per month. If she waits until 40 to buy a policy, the starting price for the same amount of coverage would be $53.

That’s part of the reason buying life insurance in your 30s is so smart – you’re old enough to need it but young enough to get a good deal on coverage.

#3: To Protect Co-Signers and Loved Ones From Debt

Adults in their 30's have, on average, anywhere from $82,500 to $185,900 in debt.

Mortgages, student loans, credit card debt, car loans – you name it, you may have this debt in your 30's. It’s imperative to ensure your family is financially prepared to cover these debts if you were no longer around.

Without a life insurance policy, your surviving family members might struggle to pay the mortgage or keep your car payments up-to-date. They may even need to quickly sell off these assets to get out of the debt.

No one would knowingly leave their family to struggle financially. A life insurance policy with an adequate coverage amount should account for replacing your income and paying off your debts.

#4: To Protect Your Business

If you have any business dealings on the side, life insurance is essential. Let’s say you buy and sell real estate for a profit. What would happen if you passed away in the middle of a deal? What if you flip houses for a profit? How would your family handle your project if you passed away during a flip or a major remodeling job?

Your family could face similar struggles if you run a small business that buys and holds inventory, has business-related debt, or has ongoing business expenses to cover. If you buy enough life insurance, on the other hand, you can leave behind enough cash so that your family could deal with your business holdings the way you would have wanted.

#5: To Cover Burial Expenses

Your funeral is not something anyone ever likes to think about. But for a moment, consider this: the average burial now costs around $7,000 to $10,000. Imagine your family members having to deal with that expense at the same time they are grieving your death?

If you didn’t have life insurance, your spouse or other immediate family members would need to come up with the cash to pay these expenses at the same time they’re grieving your death. Far from ideal.

How Much Life Insurance Does a Thirty-Something Need?

While individual life insurance needs vary, you can get a general sense of your coverage needs by taking a closer look at your income. If you’re earning $75,000 per year and want to replace your income for 5-10 years (a standard recommendation from experts), you’ll need a term policy for $375,000 – $750,000.

 

A life insurance policy should help cover:

  • Lost income and living expenses, like rent or daily bills
  • Debts you leave behind
  • Childcare if you are a stay-at-home parent
  • Burial, estate taxes, and other final expenses
  • College expenses for your children
  • Unpaid medical bills or taxes

If you have children, carry substantial debt, or have a side business, you may need significantly more. The best way to get a personalized coverage recommendation is to input your information into a life insurance needs calculator. By sharing some basic details about your income, your family structure, debts and more, you can find out how much coverage is right for you.

Choosing a Life Insurance Term Length

Term life insurance is a simple product to research and buy. Beyond selecting a coverage amount that works, you need to decide how long you want your policy to last.

Fortunately, you have plenty of options available to you, especially in your 30s. You can buy term life insurance coverage for 10, 15, 20, or 30 years depending on your needs. While longer policies tend to cost more each month, they do offer a longer span of coverage that may bring even more peace of mind. For example, a longer term length could help cover your 30-year mortgage or until the kids are projected to finish school.

Shorter term policies, on the other hand, offer short bursts of coverage meant for a particular need. For example, a short, 10-year business loan that you wouldn’t want your family to be stuck with. “Laddering” policies is a common way to help ensure adequate financial protection from life changes without needing to purchase another large, long-term policy.

Choosing a term length does not need to be a confusing task. An online life insurance calculator will take into consideration the ages of your children and debts you have to recommend a length that will adequately protect your family. On average, most of our Haven Term policyholders purchase coverage for 20 or 30 years.

 

The Easiest Way to Get Life Insurance

The best part about being a thirty-something is that you’re likely still in excellent health. If that’s the case, you may be able to get affordable life insurance without a medical exam (and at no additional cost for the convenience.)

Getting quality life insurance today is simpler than ever because of new online options for purchasing a policy. You can get an instant decision on eligibility and pricing and, if approved, start coverage immediately.

Don’t put off buying life insurance in your 30's because of fear of a confusing, time-consuming task. Thanks to modern technology, it’s easier than ever to get high-quality and affordable protection for the people you love most. Having complete peace of mind never gets old.

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12. September 2017 16:15
by Harry
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Blood Cancers and Buying Life Insurance

12. September 2017 16:15 by Harry | 0 Comments

 

According to the American Society of Hematology, blood cancers affect the production and function of your blood cells and end up preventing your blood from performing many of its functions, such as fighting off infections or preventing serious bleeding.  Approximately every three minutes, one person in the U.S. is diagnosed with a blood cancer.  September is both Life Insurance Awareness Month and Blood Cancer Awareness Month.  In this post, let’s discuss the different types of blood cancer and how these conditions can affect buying life insurance.

What are the different types of blood cancer?

There are three main types of blood cancer: leukemia, lymphoma, and myeloma.  An estimated 1,290,773 Americans are either living with, or are in remission from, leukemia, lymphoma, or myeloma.

Leukemia – cancer of the body’s blood forming tissues.

  • Mainly affects bone marrow and the lymphatic system
  • Usually, affects white blood cells – the infection fighting cells
  • There are many types of leukemia

Lymphoma – cancer of the lymphatic system.

  • Affects the lymphatic system – the body’s germ-fighting network – which includes the lymph nodes, spleen, thymus gland, and bone marrow
  • There two categories: Hodgkin lymphoma and non-Hodgkin lymphoma

Myeloma – cancer of plasma cells.

  • Plasma cells are white blood cells that produce disease- and infection-fighting antibodies
  • Cancerous plasma cells release too much protein and can cause organ damage
  • Cancerous plasma cells can also crowd the normal cells in your bones and weaken them

How does leukemia affect buying life insurance?

Leukemia can be either acute or chronic.  Chronic leukemia progresses more slowly than acute leukemia, which requires immediate treatment.  There are five types of leukemia: acute lymphoid leukemia (ALL), acute myeloid leukemia (AML), chronic lymphoid leukemia (CLL), hairy cell leukemia, and chronic myeloid leukemia (CML).  ALL is the most common form of childhood leukemia and AML and CLL are most common in adults.

Although individuals who have been diagnosed with leukemia generally cannot get preferred life insurance risk classes, that is Preferred Plus or Preferred, once treated with no recurrence, individuals can be considered for Standard life insurance rates.  Risk classes are dependent on the type of leukemia, your age at diagnosis, and how long it has been since completion of treatment.  The more years that have passed since treatment, the better your chances are for qualifying for Standard or Standard Plus.

Risk Classes
Preferred Plus
Preferred
Standard Plus
Standard

If you do not qualify for standard risk classes, you may be table rated and/or be required to pay a flat extra.  A table rating typically means you will pay the standard prices plus a certain percentage.  A flat extra is an additional fee that cushions the risk for the insurance carrier.  A flat extra can last the entire life of a policy or just a few years.

Table Rating
(alphabetical)
Table Rating
(numerical)
Pricing
A 1 Standard + 25%
B 2 Standard + 50%
C 3 Standard + 75%
D 4 Standard + 100%
E 5 Standard + 125%
F 6 Standard + 150%
G 7 Standard + 175%
H 8 Standard + 200%
I 9 Standard + 225%
J 10 Standard + 250%

Let’s take a look at a few examples.

Example 1

Jane Doe was diagnosed with acute lymphoblastic leukemia (ALL) when she was 8 years old.  She is now 30 years old and it has been over 20 years since treatment was completed.  Jane is a non-smoker and aside from her history of childhood cancer, she has a clean bill of health.

She applies for a 30-year $500,000 life insurance policy and is approved at Standard Plus.  Her monthly premium payments will be $50.

Example 2

John Smith was diagnosed with acute myeloid leukemia (AML) when he was 18 years old.  Part of his treatment was a bone marrow transplant.  He is now 32 years old, does not smoke, and it has been 13 years since treatment was completed.

He applies for a 20-year $500,000 life insurance policy and is approved at Table B.  His monthly premium payments will be $60.

Keep in mind that no life insurance company underwrites the exact same way.  (Underwriting is the process of evaluating an application and determining a risk class.)  Some will be stricter with leukemia than others.

How does lymphoma affect buying life insurance?

There are two categories of lymphoma: Hodgkin and non-Hodgkin.  The difference between the two is based on the type of cancer cells present.  According to Cancer Treatment Centers of America, Hodgkin lymphoma is rare, accounting for about .5 percent of all new cancers diagnosed.  Non-Hodgkin lymphoma is more common being the seventh most diagnosed cancer.

In the majority of cases, applicants with a history of lymphoma will be assigned a flat extra for the first few years, unless a good number of years (like ten) have passed since treatment.

Let’s take a look at an example.

Example

John Doe is a 54-year-old male, non-smoker, applying for a 20-year $250,000 term policy.  He was diagnosed with stage 3 non-Hodgkin lymphoma five years ago.  He went through chemotherapy that same year and continued preventative treatment for two years following.  There has been no sign of recurrence.  He gets check-ups once per year.

John is approved at Table B with a flat extra of $15 per thousand for five years.  Here’s what all that means.  John is getting $250,000 in coverage, so to calculate the flat extra you multiply 15 by 250.  John will have to pay an extra $3750 per year on top of his normal premiums for five years.  Once year five is over, his premiums will drop to the regular Table B premium which will be $140 per month.

Again, no life insurance company underwrites the same way.  There are insurance carriers that would decline John outright.  This is why working with an independent agency like Quotacy is beneficial.  We have contracts with multiple A-rated carriers, so your chances of being approved are better.

How does myeloma affect buying life insurance?

Myeloma has different forms, but 90 percent of people who have been diagnosed with myeloma have multiple myeloma.  It’s called such because it affects several areas of the body versus just one site.  There is currently no cure for multiple myeloma, so life insurance approval may prove difficult.  Unless you have had a bone marrow transplant, an applicant diagnosed with multiple myeloma will typically be declined for life insurance.  Myeloma is, however, the least commonly diagnosed type of blood cancer.

Plasmacytoma and localized myeloma diagnoses, these are forms of myeloma in which cancer cells are found in only one site, have higher chances of life insurance approval.  Standard rates are even possible if enough years have passed since treatment.

If you have a history of blood cancer, don’t hesitate to apply for life insurance.  Applying for life insurance is free and there is no commitment to buy.  Here at Quotacy we have access to many life insurance carriers and will help to get you approved for coverage.  Start out by using our term quoting tool to run as many quotes as you would like – no contact information required.  We look forward to helping you get life insurance.

 
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