Life Insurance after a major health scare

Is it possible to buy life insurance following a major health scare? Sometimes yet. If you have a bout with cancer and it is in remission there may be life insurance products that offer two years of extremely limited benefits and free up after that time period.

What about a heart attack?

As with any health issue, when applying for life insurance be completely open and honest. The carrier likely will find through your doctor, your exam or other methods of finding information. Giving everyone the heads up from the start makes the process much easier.

No in any particular order the carrier will want to know the following:

The date of your diagnosis
Any underlying issues
Regularity of doctor visits
Treatments recommended by your doctor
Treatments you had performed
Condition of your health issue since onset

In many cases, insurance companies will offer a life insurance plan that is rated, or substandard in its rate. Or, as described above in the first paragraph you may have to opt for a high risk plan until enough time elapses on your current condition without recurrence. It might be necessary that you lower your coverage to cover the added premium for your health issue.

How about life insurance for retirees who are in good health? Should you make a purchase of life insurance?

There is the matter of final expenses. But besides that, there are a number of other reasons to consider life insurance even in your retirement years. What if you want to leave money to finish paying off a mortgage. Or your spouse will need money to supplement his or her retirement. Or pay off other bills. Or continue helping kids or grandkids. You may have two retirement incomes that may be greatly affected with the death of a spouse.

In some cases, retirees who have had permanent life insurance policies for a duration and have accumulated monies inside can now access those for withdrawal.

Retirees should consider encouraging younger family members to purchase a permanent life insurance product so they lock in a premium at a much younger age. Let’s say you are 35 years of age and lock in a rate in a permanent life insurance policy. When you are 65, an age when life insurance is almost unaffordable, that rate will still be the same as thirty years ago. The longer you wait to apply for life insurance the more it will cost.

In my humble opinion, buy permanent life insurance early in life, as early as you can financially afford. You will lock in a rate for the rest of your life. When you get older you will understand the value of that decision.

Do you need life insurance?

A very dear friend of mine passed away August 2010. He carried life insurance but not enough to completely give his wife the peace and financial security she truly needs. Fortunately, she has many who love and care about her.

Everyone dies.

It is inevitable.

So why do we put life insurance as one of the lowest priorities in our lives? For those of us with a spouse and/or children life insurance can help ease the burden that is living after a loved one passes away.

My friend has struggled since the passing of her husband.

I have read that the normal grieving time after a loved one passes is up to 2 years. Imagine how difficult it is for that person to continue showing up at work day after day, paying the bills and managing a tight budget – especially after a loved one dies.

Do your loved ones a favor – buy life insurance. I personally own several life insurance policies and have my wife insured as well as children. Funerals are not free. While not terribly expensive they still can run $10,000 – $25,000. Do you have final expense money sitting around? If not, buy some life insurance.

I have seen the effects up close and encourage you to do the right thing for them.

Are You Prepared to Die?

Someone I know recently had a loss in their family. Unfortunately, the deceased person had no life insurance – none. And that meant no immediate money for those who are left to figure out the funeral to pay for the funeral and other related costs.

Some reports say that a funeral can cost upwards of $10,000 to $25,000. Even if you manage a bare bones (no pun intended) funeral service or are cremated the costs can still be in the thousands.

While we can debate the numbers it is worth noting that with zero life insurance the burden to cover this cost will fall to those who will be burdened with more than losing a loved one – that is, figuring out the finances.

Does anyone really want a legacy that they left loves ones with a financial burden to pay for a funeral that was not their own? It is better to do the most responsible thing and at least have enough life insurance to pay for a funeral. But I understand that if your budget decisions come down to paying rent and buying food or paying for a life insurance plan that is an easy decision for most.

What Life Insurance Plan is Better?

A Whole Life or Universal Life Insurance policy is most often the best type of policy to own. The reason is those policies offer a level premium that will never increase. They also pay an interest rate on your premiums (and sometimes even a dividend) that allows you to accumulate savings. These added benefits can even increase your death benefit over time (Whole Life Insurance).

Other types of life insurance, like term life insurance, increase in premiums in our older years. You see television ads offering cheap, low cost term life insurance but they do not mention how those cheap premiums skyrocket as a person gets into those older years.

Just as you get old enough where death becomes a real thought in our lives the term premiums skyrocket on us. That’s why you should consider the whole life or universal life insurance policy.

If you are curious about how much Arizona life insurance costs, please contact me if you live in Arizona.

The Battle of Life Insurance Policies

With a teetering economy studies are showing a renewed interest in permanent life insurance products, such as whole life insurance. In the past few years sales of Whole Life Insurance has increased by about 22%.

The main driving force is the same reason that kept people from buying Whole Life Insurance – low paying interest rates.

Whole Life Insurance policies typically pay back an interest rate (3-4% is not uncommon) to their policyholder. That small interest gain was often pooh-poohed not many years ago because consumers could put money into the stock market and do better.

Yet, who trusts the stock market today?

Which is better – Whole Life/Universal Life Insurance or Term Insurance?

A whole life insurance policy offers a level premium for the rest of your life, pays a fixed interest rate on your premiums and sometimes a dividend as well that can be used to grow your death benefit. This type of product has been used by some as a way to stash money inside a product that allows for a conservative growth model but without the immediate tax consequences.

In today’s economy earning 3 – 4% on your money would not be an embarrassment – that is what Whole Life can do

Universal Life Insurance also offers a premium that is level as long as you pay your premiums. However, UL policies do not pay interest or dividends. The only advantage they offer – their premiums are usually much lower than Whole Life Insurance premiums.

Term life insurance premiums are often low, especially if you are younger. But the eventually go up and up and up. If you want life insurance well into your elder years you need to escape the trap of cheap term life insurance and find yourself a whole life or universal life insurance plan that fits your needs.

According to a LIMRA report whole life insurance premiums increased 10% in the first quarter of 2010.

Time to think Arizona Life Insurance!

Don’t you love it when industries can manage to nominate a cause to something that generates business for themselves?

It is ironic. However, I believe FIRMLY in owning life insurance and recommend you have it as well, regardless if you are married or single, short or tall, athletic or geek, rich or poor. In my humble opinion – everyone should own some life insurance.

Why?

Because everyone dies and dying is not free.

According a recent study:

83% of Americans believe most people need life insurance but only 65% of those interviewed believed THEY needed it and only 59% actually own life insurance.

1/3 of people in a recent survey believe they need more life insurance than they currently own and 28% wish their spouse/partner had more. Leaving loved ones without a financial burden of paying for a funeral is NOT the biggest reason people own life insurance.

Many consumers today are having a harder time putting monies into a permanent life insurance plan. Whole Life and Universal Life are better policies than Term Life Insurance but they cost more. Families are having to make budget decisions in ways they have not in while.

But regardless whether you choose a term life insurance plan or a permanent life insurance policy – your family is better off than buying neither.

If you are curious about whole life insurance, please contact me.

Arizona Life Insurance

Why Buy Life Insurance?

It seems a simple question, right. Yet, many Americans have no life insurance – zero, zilch, nada. Why is that? The answer may be simply that life insurance is an optional insurance product that no one is truly required to buy.

Yet, everyone will die. Everyone will need buried. Even the most basic funeral costs money. However, most people want something more than just a cheap wood box. At least your family likely does. An average funeral today is expected to cost upwards of $15,000 or more. Do you have fifteen grand saved for your own funeral? If no, then life insurance is for you.

Dying with Life Insurance and Dying without Life Insurance

We’ve seen clients and friends die with life insurance and without life insurance. I can tell you first hand those families who received a life insurance check are in much better shape than those who did not prepare ahead of time. Imagine the stress of losing a loved one. Now imagine how much additional stress is involved if your finances are a mess on top of losing someone you love.

Besides Paying for a Funeral Why Should I Buy Life Insurance?

Most people that buy life insurance want to ensure their spouse and even children are left better off. They want to make sure bills are paid – the credit card, the car payment, the mortgage payment and provide additional monies to cover the air conditioner going out, the car breaking down, putting kids through college, paying typical household bills.

Remember, if you die your paycheck dies too. If you are breadwinner and die, your paycheck is not coming home again. How will your family survive financially without you working and earning a living?

How Much Life Insurance Should I Purchase?

Companies that advertise on television often state that you should buy 7 – 10 times your annual income in life insurance. One simple rule of thumb has always been that a surviving spouse could take a lump sum of money from a life insurance policy, invest it and receive 7 – 10% interest on this money. Thus, receiving the same money they were getting while a spouse was still alive without dipping into the principle too much.

The big downside to this approach is the current economy. Who makes 7 – 10% interest reliably & comfortably today?

What are the types of Arizona life insurance?

There are three main types of life insurance.

  • Term Life Insurance
    You usually see term life insurance advertised on television because it is the lowest cost for a pre-retired person. Term life insurance is great for younger people and families with children because it gives you the maximum coverage at the lowest rate. However, if you want life insurance in place during your senior years this is the worst life insurance product for you.

  • Whole Life Insurance
    Whole life is considered the Cadillac life insurance policy in the industry since it was developed. Premiums are level for lifetime, meaning they will never increase even as you get older. Your premiums earn an interest rate, which builds cash value. These policies also typically earn dividends, which means they participate in the profits of the insurance carrier. Cash value and dividends can either accumulate inside the policy for you at some later date or can be used to purchase additional insurance, which means your death benefit can increase over time. The downsides to Whole Life are few except that this type of plan can be expensive if you try and apply for a new policy later in life.

  • Universal Life Insurance
    These policies have a level premium that will never decrease as long as you pay your premiums. Your premiums can earn interest. However, some UL policies earn no interest. The premiums in some types are used to help your premiums remain level for life. The one downside to Universal Life insurance policies are few but be sure to consult with an agent before withdrawing cash from these policies.

    While most consumers today are very familiar with term life insurance there are two other major Arizona life insurance plans available. Everyone has seen the term life insurance advertisements on television. Some companies have inundated the airwaves with their commercials.

    You may not realize it but the odds are excellent that you are playing a Las Vegas game of chance with your life insurance. I call it Gambling with Life Insurance. And if you are on the wrong side of the gamble the chances are great that you are playing with a decked stacked heavily against you.

    And if you lose with your life insurance bet, it is your spouse and kids who really lose.

    Have you ever watched one of those Las Vegas tv shows that show you all the ways to gamble and they also tell you which games have the worst odds of winning?

    Term Life Insurance is the game of life insurance with the worst odds of paying off. People are attracted to term insurance because it is the cheapest form of life insurance, at least in the pre-retirement years. So what do most people do? They buy term life insurance.

    Yet, insurance companies love term insurance because of three primary reasons:

    1) Premiums will go up significantly as you age, forcing you to cancel as they become too expensive to keep. Advantage Insurance Company.

    2) With term life insurance, people tend to buy, cancel, buy, cancel their term policies. That means the insurance companies keep all those premiums without ever having to pay a death claim. Advantage Insurance Company.

    3) Very few death claims are filed on term life policies compared to other types of permanent life insurance. That means nearly all those term insurance premiums you pay are pure profit for the insurance company. Advantage Insurance Company.

    What type of life insurance shifts the odds to YOUR favor? Permanent Life Insurance

    Not long ago I surrendered my term policy for a permanent policy. I shifted the odds in my favor that my life insurance will be inforce when I die so that my family will receive that money when I die.

    If you have term life insurance just know that your policy will more than likely be expired or cancelled when you die. Those are the odds the insurance companies love because you pay in all those premiums for a policy that will never pay to your spouse or kids.

    Life is certainly unexpected.

    About an hour ago I wrote an article on my blog about life insurance.

    A few minutes ago a client calls. I have her auto and homeowners insurance but we do not have their life insurance. Her husband passed away a few weeks ago due to cancer. He was 34 years old.

    While he had a little bit of life insurance he leaves behind a wife and two younger children. To adequately provide for all the needs of a single mom with two young children a person would need several hundred thousand dollars of life insurance (in my opinion).

    Are you married?

    Do you have kids still living at home?

    Do you have a mortgage payment?

    Would your family suffer financially if you died today?

    Do you provide income into your household?

    If you want to talk about shifting the life insurance odds to YOUR favor, please call or email me.