What You Should Know About Diabetic Life Insurance

 

Many people are under the mistaken impression that diabetic life insurance does not exist. In reality, the 34.2 million diabetics in the United States have numerous life insurance options.

While diabetes is still a health concern for many people, it is still possible to obtain adequate life insurance as a diabetic. Here are some important things to consider when purchasing life insurance if you have diabetes.

Insurance companies consider a variety of factors.

In addition to whether you have diabetes, a life insurance company may want to know the following:

No matter if you have Type 1 or Type 2 diabetes,

How old were you when you were diagnosed with diabetes?

What medications you're using, as well as your height and weight

How well you manage your diabetes

Your blood sugar levels

If you have any other medical concerns, such as heart disease or high blood pressure, please let us know.

If you use tobacco,

Your complete medical history

Your ancestors' tree

"Clinical underwriting" is a service provided by some life insurance companies. (Underwriting is the process by which an insurance company determines your eligibility for coverage.) Instead of focusing on specific risk indicators, this type of underwriting considers your overall health. An insurance professional will be more knowledgeable about clinical underwriting organizations.

Diabetes life insurance underwriting varies by insurer.

Jake Irving is knowledgeable about diabetic life insurance. He is a registered insurance agent and the owner of Willamette Life Insurance in Beaverton, Oregon. Irving specializes in assisting diabetics with the purchase of life insurance. He claims that each insurer has different underwriting requirements for diabetics when it comes to life insurance.

Nonetheless, Irving claims that the majority of insurers are concerned with your age at the time of diagnosis. "Being diagnosed earlier in life allows for more time for related issues to emerge," he explains. This could make obtaining insurance more difficult.

Most insurers are also concerned about the serious consequences of diabetes. "The three main things they are concerned about are being in a diabetic coma, having an amputation, or being hospitalized," Irving explains. "However, just because you do not have one does not preclude you from obtaining coverage."

Finally, people with Type 2 diabetes are more likely than people with Type 1 diabetes to be able to obtain life insurance.

Life insurance for diabetics is frequently (but not always!) more expensive.

People who are in good health and do not smoke typically have lower life insurance rates than people who have health issues or who smoke. Having said that, Jake claims that diabetics are eligible for special insurance rates. Preferred is the most expensive life insurance pricing category.

Nontraditional plans are available.

One unconventional option is graded life insurance. If you die before a certain amount of time has passed, your beneficiaries will only receive a portion of the whole life insurance benefit. The average wait time is two years.

Another option is guaranteed issue life insurance. This option only provides a limited amount of coverage on the spot. There is no need for you to have a medical exam or answer any medical questions. Just keep in mind that you may only receive a limited amount of coverage and that your premium may be expensive. There is frequently also a waiting period.

Diabetes management can assist you in obtaining better coverage.

Life insurance companies view diabetics who are working to manage their illness favorably. This may entail seeing your doctor on a regular basis, taking your prescription medication, maintaining a healthy weight, and having lower A1C and glucose levels.

Jake believes that once you have diabetes under control, you may be able to obtain a better rate. This is especially true if you haven't been hospitalized for diabetes in a long time. (However, keep in mind that the incident may be recorded on your medical record and have an impact on your rate.)

Working with a licensed insurance agent is your best bet.

You should ideally work with an independent agent who has relationships with several life insurance companies. This means they will be able to shop around for you to find the best coverage. It also implies that if your application is denied, they will be able to use other carriers.

Consider hiring an agent who specializes in high-risk candidates like Jake. These brokers are well-versed in which carriers are most likely to offer you the best coverage.

10 Advantages of Bundling Life Insurance and Long-Term Care

You've most likely heard of hybrid vehicles. However, have you ever heard of hybrid life insurance?

This policy combines long-term care and life insurance. These hybrid policies, like hybrid cars, are gaining popularity. This is because they have distinct advantages.

How Does It Function?

Previously, most people bought long-term care insurance as a separate policy. It is now more common to obtain the coverage as part of a policy that also includes life insurance.

If you develop a health condition and require care, the long-term care section of your policy will cover it. Meanwhile, life insurance protects your loved ones financially in the event of your death.

If you have a medical condition, you may be eligible for long-term care. Your loved ones receive the full death benefit if you never use the long-term care benefit.

The Top Ten Advantages of a Hybrid Life Insurance Policy

More extensive coverage. A hybrid life insurance and long-term care policy provides two critical coverages for you and your loved ones.

It is simpler to obtain. Medical underwriting for a hybrid life insurance policy is frequently less stringent than for a solo long-term care insurance policy. In fact, some hybrid policies require only a few health-related questions to be answered.

Payment options that are flexible. A hybrid life insurance policy is available in two forms: as a lump sum or in annual installments.

Tax breaks are available. Life insurance proceeds paid to heirs are not taxed. Furthermore, long-term care insurance premiums may be deducted from your state and federal taxes in some cases.

There is less time and effort required. A single policy is frequently easier to investigate, purchase, and manage than two separate policies.

Fewer premium hikes. Many people are concerned about the price. This is due to the possibility of price increases for standalone long-term care policies. Hybrid policies, in general, provide greater pricing stability.

It is possible to receive a death benefit. If you never need long-term care, you usually lose the money you paid for regular coverage. Under a hybrid policy, your loved ones will receive the full death benefit if you never require long-term care. Some insurance policies even guarantee a small death benefit regardless of the circumstances.

You have the option of locking in your premium. Some hybrid life insurance policies allow you to predetermine your premium payments.

There is the option of a money-back guarantee. Certain hybrid policies may refund your money if you decide you don't want the policy after a certain period of time.

Absolute serenity. Hybrid life insurance coverage alleviates concerns about potential long-term care costs while also contributing to your family's financial security. Who doesn't need that?

Obtaining Coverage

A certified insurance agent can help you decide whether a hybrid or standalone policy is best for your lifestyle and budget. Begin by learning about the three main methods for acquiring long-term care insurance. Also, take a look at our answers to frequently asked questions about long-term care insurance.

How to Use Permanent Life Insurance to Build Wealth and More

 

Many people understand how term life insurance works. Individuals, on the other hand, frequently do not understand how permanent insurance works.

To summarize, term life insurance protects you for a specific period of time. This is known as the "term."

If you die within the time limit, your heirs will receive a predetermined sum of money. This is known as the "death benefit." Term life insurance is a low-cost option that is especially popular among parents who have dependent children.

What exactly is Permanent Life Insurance?

Permanent life insurance provides both a death benefit and lifetime protection. Furthermore, it allows you to accumulate wealth while deferring taxes. It is money that is available to you whenever and for whatever reason you require it.

How Permanent Life Insurance Helps Build Wealth

Have you thought about investing your tax refund to grow your wealth? If this is the case, you should consider purchasing permanent life insurance.

Marcus T. Henderson, Sr., RFP, AIF, MRFC, president and CEO of Henderson Financial Group, Inc. in Brentwood, Tenn., has been teaching about life insurance since 1989. He compares the difference between term and permanent life insurance to the difference between renting and buying a home.

"With permanent life insurance, you genuinely own something and have equity," he explains. "Even if you never use the death benefit, you have money."

Several customers, according to Marcus, have used the cash value of their permanent life insurance over the years. It has helped people with home purchases, financial emergencies, and other endeavors. "This is especially true now, because people are living longer lives—people frequently outlive their term insurance," he adds.

Other Benefits of Permanent Life Insurance

Aside from increasing your money, permanent life insurance has additional benefits. These are their names:

Consistent returns provide comfort. Marcus recommends that customers compare the rates of return on cash value accounts to those on savings and money market accounts. The monetary value is almost always far greater. He also cautions against comparing it to stock market rates. While stocks can provide excellent returns, they are also much riskier.

There are several policy options. Many clients, according to Marcus, mistakenly believe there is only one type of permanent life insurance. In reality, there are four distinct types. The primary differences are whether you pay a fixed or variable premium and how you invest your funds.

Coverage is available indefinitely. If you continue to make payments, your perpetual life insurance policy's "term" will never expire.

Costs tend to fall over time. Marcus informs customers that the longer they keep their permanent life insurance policy, the less it will cost them. "There is even a point where the insurance starts paying for itself," he says.

The benefits of living. Many permanent life insurance policies allow you to customize your coverage so that you can use it while still alive. They include critical care coverage in the event that you incur costs as a result of a medical emergency.

Long-term care insurance protects you in the event that you require home health care, nursing home care, personal or adult day care, or any combination of these services.

If you have a terminal illness, you can receive your death benefit money sooner.

Consider a Term-to-Permanent Insurance Policy.

Some term life insurance policies can be converted into permanent life insurance policies later.

Marcus often advises his clients on "term to permanent" plans. One major reason for this is that future ill health may prevent you from obtaining permanent life insurance. "With term plans that include conversion options, you can receive permanent insurance as if you were a younger version of yourself," he explains.

Isn't life insurance supposed to cover funeral and burial expenses?

Yes! That's correct. Many Americans are well aware of this. According to the Life Happens and LIMRA 2021 Insurance Barometer Study, it is the most common reason people have life insurance.

With a special report titled "Black Americans: Life Insurance Attitudes and Ownership," this year's survey delved deeper into the Black community's perspectives and attitudes. According to the study, Black Americans understand what life insurance accomplishes when someone dies. Half of all Americans (48%) believe they have life insurance to cover final expenses, with Black Americans having a higher rate of 66 percent.

However, this is only a portion of the story.

What happens to a family's home, bills, children's education, and retirement plans if a critical source of income is lost due to the death of a loved one?

How will those expenses and dreams be paid for tomorrow, the next day, next year, and so on?

That is also why there is life insurance. Many people, however, are unaware of the full scope of what a comprehensive life insurance plan can accomplish in the long run. In fact, only one-third of Americans (35%) say the primary reason for having life insurance is to replace lost wages or income, and this percentage is slightly lower among Black Americans (31 percent ).

The following expenses can be covered by life insurance:

IMMEDIATE EXPENSES

funeral and burial costs

medical expenses

whether to buy or rent a car

Credit card debt taxes estate settlement fees

CURRENT BILLS AND EXPENSES

food, housing, utilities, transportation, health care, and insurance, as well as the survival of a family business

GOALS FOR THE FUTURE

College costs

Insurance for life Retirement Living Advantages

In addition to income replacement, your policy may include living benefits. Permanent (as opposed to term) life insurance accumulates monetary value over time. And you can use that money however you want - to help pay for a down payment on a home, to cover an unexpected need, or even to supplement your retirement income. (However, keep in mind that withdrawing or borrowing money from your policy may reduce its cash value and death benefit, as well as result in tax consequences if not repaid.) Furthermore, life insurance can help you leave a financial legacy for your place of worship, alma mater, or any other organization that is important to you.

Keep in mind that life insurance is much more than "burial insurance." It could be a gift that keeps on giving long after you're gone. For more information, visit the life insurance 101 section of this website or contact an insurance agent to help you choose coverage that fits your budget.

9 Reasons Why Stay-at-Home Parents Need Life Insurance

 

You're probably aware that a parent who works outside the home will most likely need life insurance to protect their loved ones if they die. Stay-at-home parents, like breadwinners, require insurance coverage. The following are nine of the reasons why.

1. To make up for the value of their labor. Stay-at-home moms are caregivers, tutors, cooks, housekeepers, chauffeurs, and so much more 365 days a year. And all of that work comes at a price: Stay-at-home parents provide the equivalent of $162,581 to their households each year, according to Salary.com. If the unthinkable happened, the surviving partner would be responsible for a slew of extra costs that the stay-at-home parent had previously borne. Term life insurance is a quick and low-cost way to get this type of coverage for a set period of time, such as 10 or 20 years—often until you pay off your mortgage or your children have grown and moved out.

2. To take into account any future income contributions. Many stay-at-home parents return to work when their children reach a certain age. Life insurance could help cover the difference between what their future earnings would have contributed to the house and what they actually contributed.

3. To pay off any debt. Student loans, credit card debt, and informal loans from family members are all examples of ways to owe money. Life insurance can help settle any debts left behind so that they do not burden bereaved loved ones.

4. To cover funeral expenses. Would you believe that the average funeral costs between $7,000 and $10,000, according to parting.com? That may not be enough to cover the funeral, headstone, and other expenses. Many families want to pay tribute to a loved one's memory but cannot afford to cover all of the costs. Fortunately, a life insurance payout can assist in covering final expenses.

5. Leaving a Trace If a stay-at-home spouse has a strong affinity for a place of worship, alma mater, or another nonprofit organization, life insurance proceeds can be used to make a significant charitable contribution.

6. To boost savings. Permanent life insurance, which provides lifelong protection as long as premiums are paid, may offer additional living benefits such as the ability to accumulate cash value. This money can be used for anything in the future, such as a home down payment or college tuition. However, keep in mind that withdrawing or borrowing funds will reduce your policy's cash value and death benefit if not repaid.

7. To ensure insurance coverage. In an instant, your health can deteriorate. When you buy a permanent life insurance policy when you are young and healthy, you are guaranteed coverage for the rest of your life. Then you won't have to be concerned if you later develop a health problem that makes obtaining life insurance difficult, if not impossible.

8. To benefit from tax-free advantages. Life insurance is one of the few tax-free ways to leave money to loved ones.

9. To give loved ones peace of mind. It is difficult enough to lose a parent or partner before their time, without having to worry about unpaid debts, childcare costs, burial costs, and other expenses.

Life insurance is, as you can see, just as important for stay-at-home parents as it is for working parents. Make an appointment with a local insurance specialist to discuss your options and obtain coverage that fits your lifestyle and budget.

Who Can I Name as a Beneficiary on a Life Insurance Policy?

First and foremost, congratulations on your decision to purchase life insurance! You took an important step by safeguarding those you care about.

Every life insurance policy requires you to name a beneficiary. A life insurance beneficiary is the person or people who receive the proceeds of your life insurance policy when you pass away; it could also be a trust, charity, or your estate.

You can also name multiple beneficiaries and specify how much of the payout should go to each one, such as 50% to a spouse and 50% to an adult child.

Typically, you will be asked to choose between two types of beneficiaries: primary and secondary. The payout is distributed to the secondary beneficiary if the primary beneficiary dies (sometimes known as a "contingent beneficiary").

Taking Care of Children

One of the most common reasons people purchase life insurance is to provide for children who are left behind. Typically, this is accomplished by designating the beneficiary as the surviving husband or partner who cares for and raises the children. But what if you're widowed, or if you and your partner both die at the same time?

To begin, naming a minor as a beneficiary is not a good idea. This is due to the fact that the law forbids life insurance payouts to anyone under the age of majority, which varies by state and ranges from 18 to 21. When a child is named, the case is transferred to probate court. A guardian will be appointed by the court to oversee the child's money/estate until the child reaches the age of majority.

Fortunately, there are two options. The first step is to name an adult guardian. The custodian should be someone on whom you can rely to spend money on necessities such as housing, health care, and education until the child reaches the age of majority. Any leftover money is then given to the child, who can spend it however they see fit.

The second option is to consult with an attorney about forming a trust. In this case, the trust is the beneficiary, and a trustee is appointed to manage and distribute the funds. The primary advantage of establishing a trust over naming a custodian is that you have more control.

Even if your children are adults, a trust allows you to specify how you want the money distributed. (A word of caution: If you're creating a trust for a special needs child, consult with an attorney first.) They can help you create one that will not jeopardize your child's eligibility for government benefits such as Medicaid or Supplemental Security Income.)

Choosing a Charitable Organization

Do you have a cause that you are passionate about? If this is the case, you should consider making a charitable organization the beneficiary of your life insurance policy.

There are a number of approaches to this. They include making the charity the owner as well as the beneficiary of a life insurance policy, adding a charitable-giving rider to a life insurance policy, or collaborating with a community foundation to determine the best way to distribute a payout.

Recommendations at the End

Consider naming your estate as a beneficiary with care. This can lead to the time-consuming and costly legal process known as probate. A faster and more efficient method is to designate specific individuals or groups as beneficiaries.

1. Be specific. As beneficiaries, instead of "my spouse" or "my children," provide their names, addresses, and Social Security numbers. The insurance company saves time because they no longer have to look for information.

2. Include a contingent beneficiary in your will at all times. If you die without a surviving beneficiary and leave life insurance behind, the proceeds may be distributed to someone you never intended to benefit from your policy. It may also be necessary to hire a court-appointed administrator to get things back on track.

3. Choose trustworthy custodians and trustees. Consider who you'd entrust your child's financial well-being to if you weren't present. Your children may adore their uncle or aunt, but is he or she financially responsible and mature? If you are not, find someone who is.

4. Conduct a regular review of your beneficiaries. Check on your beneficiaries once a year and after major life events such as marriage, divorce, childbirth, or death in the family.

5. State your desires. Inform your beneficiaries of your intentions and where they can find the insurance.

6. Keep an eye out for unusual circumstances. Some circumstances, such as when the policyholder and the insured are not the same person, may result in a tax on the life insurance benefit. Likewise, if you live in a community property state and do not name your spouse as a beneficiary, things can become complicated. An insurance agent can advise you on this and other life insurance issues.

 

Only final expenses are covered by life insurance.

 

Isn't the purpose of life insurance to cover funeral and burial expenses?

Yes! That's correct. Many Americans are aware of this. It is the No. 1 reason people have life insurance, according to the Life Happens and LIMRA 2021 Insurance Barometer Study.

In a special report titled "Black Americans: Life Insurance Attitudes and Ownership," the survey delves deeper into the Black community's perceptions and attitudes this year. According to the study, Black Americans understand more about what life insurance does when someone dies. Life insurance is carried by roughly half of all Americans (48%) to cover final expenses, with Black Americans having a higher rate of 66%.

That, however, is only part of the story.

What happens to a family's home, bills, children's education, and planned retirement if a key source of income is lost due to a loved one's death?

How will those expenses and goals be met tomorrow, the next day, next year, and so on?

That is also why there is life insurance. Many people, however, are unaware of the full extent of what a robust life insurance plan can do in the long run. In fact, only one-third of Americans (35%) say a key reason for having life insurance is to replace lost wages or income, with Black Americans slightly lower (31%).

The following expenses can be covered by life insurance:

OUTLAYS IMMEDIATE funeral and burial costs

medical expenses

mortgage estate settlement fees or auto loans for rent Taxes on credit card debt

CURRENT BILLS AND EXPENSES

groceries

Housing, utilities, transportation, insurance, and health care are all included.

running a family business

GOALS FOR THE FUTURE

College costs

Insurance for life Retirement Living Advantages

In addition to income replacement, your policy may include living benefits. Permanent (as opposed to term) life insurance accumulates monetary value over time. And you can use that money however you want - to help you buy a home, pay for an emergency, or even supplement your retirement income. (However, keep in mind that withdrawing or borrowing funds from your policy will reduce its cash value and death benefit, and will result in tax consequences if not repaid.) Furthermore, life insurance can help you leave a financial legacy for your place of worship, alma mater, or any other organization that is important to you.

Keep in mind that life insurance is much more than "burial insurance." It can certainly be a gift that keeps on giving long after you are gone. For more information, visit the life insurance 101 section of our website or contact an insurance specialist to help you find coverage that fits your budget.

What to Look for When Buying Life Insurance

Let's be honest: most people aren't excited about the prospect of purchasing life insurance. The pandemic, on the other hand, has given many people pause. A recent survey found that 45% of younger Americans (ages 22-40) are more likely to purchase life insurance today than they were before COVID.

Knowing what to expect will help you get started if you find yourself in the "likely" category these days. So we turned to Paul Dougherty, a senior life insurance agent in Maryland and former president of the National Association of Insurance and Financial Advisors. Marilyn Gill, a 48-year-old San Francisco life insurance buyer, also spoke with us about her recent experience purchasing a policy through an internet broker.

Recognize an agent's role

"We're at our best when we're solving a problem for a customer who may not even be aware of it," Dougherty adds. "As agents, our job is to get to know you and predict what's coming up for you."

A certified insurance specialist will perform an in-depth financial needs analysis and walk you through the questions that will help you determine how much and what type of insurance is best for you. This consultation is completely free of charge.

"We're not transactional professionals," explains Dougherty. "You have a million things to do on your to-do list." We have the advantage of seeing things through the lens of potential pitfalls and assisting you in mitigating those risks before they become catastrophic. It's a wonderful feeling when we can shed light on some of the questions you may not have even considered asking yourself, and then turn that light to some solutions."

Online coverage is always preferable to no coverage at all.

"The best kind of policy," Dougherty says, "is one that is there when you need it."

If a new customer has an online policy, "we let them know they made a good choice." We frequently leave something alone and devise a strategy to supplement what is already present. I tell people that I'll either give them a better package or make them feel better about what they have. In some cases, they may have exactly what they need."

"I'd love to have someone handle all of my insurance needs," Gill says, "but I didn't have an existing agent, and calling one and going over all of my medical history would have felt far too awkward." I also enjoy conducting research online." She spent her evenings and weekends gathering information for a commercial gardener as a sales and design consultant before submitting an application.

Seek the assistance of a licensed agent.

"Our language is unique to our business," Dougherty adds, "and customers rarely understand it."

"We explain how various policies work and show our customers how we can get a solution using a variety of techniques."

Even if you order online, you can expect to be assisted by a licensed agent. "If I couldn't talk to people on the phone, I wouldn't have gone ahead with an online policy," Gill says. It's far too important to make this decision entirely online."

Five tips for choosing an agent:

Obtain recommendations

Discover their areas of expertise.

Inquire about their membership in any professional organizations.

Set up introductory meetings.

Inquire about their educational and training background. Additional information »

Prepare to throw out preconceived notions.

"I learned a lot," admits Gill. "I learned that if you have a health condition that is successfully managed, your rates may not be affected." That was very informative. That was causing me a great deal of stress."

She was also relieved to learn that her previous smoking habit would have no bearing on her rates. "What matters is that you're in reasonably good health right now."

The cost is the biggest eye-opener for many people. According to the 2021 Insurance Barometer Study, consumers vastly overestimate the cost of life insurance. In fact, a healthy 30-year-old can purchase a $250,000 20-year level term policy for about $13 per month. Gill, for example, paid less than $50 per month for a policy that would pay off her mortgage with plenty of room to spare, leaving her college-age daughter as "my largest asset free and clear."

Recognize the key issues

"Ask yourself, if something were to happen to you tomorrow, what would the financial impact be on the people you care about?" Dougherty suggests.

Through a confidential discussion of your income, other assets, and debts, an agent will assist you in quantifying this impact (like a mortgage). They'll ask you who you want to benefit from the policy — what's known as a beneficiary. They will also inquire about your health, interests, and any other activities that may have an impact on your eligibility. Keep this material, as well as any early ideas and questions, on hand.

The following are some questions to ask your agent:

What kind of life insurance do I need?

What exactly is included?

What if I can't afford to pay my premiums?

Will my insurance rates ever go up?

Can I change or convert my policy in the future?

What companies do you recommend, and why?

When making a decision, longevity and financial stability are important factors to consider.

When comparing several organizations with comparable rates, prioritize reputation, financial stability, and longevity over cost.

"You have to believe that the company has existed and will continue to exist—that they're financially strong enough to make a promise and keep it 40-50 years from now," Dougherty says. The A.M. Best Company rates insurance companies based on their ability to meet financial obligations, whereas the Better Business Bureau and J.D. Powers rate customer satisfaction.

 

Ten Ways to Make Low-Cost Life Insurance a Reality

 

Many people are looking for ways to cut costs during these uncertain times. One area where you might want to save money is life insurance. If this is the case, there are numerous options for obtaining low-cost life insurance. (Alternatively, to save money on existing coverage.)

Before we get into our best affordable life insurance recommendations, keep in mind that not having life insurance is never a good idea. Your loved ones would be in a difficult situation if you and your earnings disappeared.

10 Ways to Save Money on Life Insurance

To begin, select low-cost term life insurance. Life insurance is classified into two types: term life insurance and permanent life insurance. Both provide a death benefit if you die while covered, but permanent life also includes a cash-value component. Term life insurance is the less expensive option for life insurance. Term life insurance is an excellent option for people who want the most coverage for the least amount of money. People can also combine the two to ensure that they have a large amount of coverage now (when they have children or debt) as well as lifelong coverage later on.

When you are young and healthy, buy insurance. When you're young and healthy, you usually have access to the most affordable life insurance. You may be able to lock in a low life insurance rate if you buy early. Furthermore, if you develop a health condition later in life, you will not be unable to obtain coverage.

Get quotes from several insurance companies. It pays to shop around for affordable life insurance, just like it does for anything else in life. An insurance agent or advisor can obtain quotes from multiple insurers. He or she can also help you compare coverage to ensure you get a good policy at a good price.

Examine your company's group insurance. Group life insurance is frequently subsidized by employers through the workplace. Furthermore, it is common to be able to obtain a certain level of coverage without having to take a medical exam. Investigate any employer-sponsored group coverage that might be available to you. Keep in mind that this coverage expires if your job does, so you should get your own individual life insurance policy.

Inquire about premium pricing. Some insurers offer premium discounts at certain levels of coverage. Purchasing $250,000 of coverage, for example, may be less expensive than purchasing $200,000 of coverage. Inquire with your insurance agent or counselor about any premium discounts that may be available.

Check to see if you can save money by paying ahead of time. Some insurers will give you a discount if you pay for the entire year in one lump sum (or in less frequent intervals like twice a year). Pay your premium in full rather than quarterly or monthly if your insurer offers this discount and you have the funds.

Obtain a renewal guarantee. A renewal guarantee allows you to have your term life insurance policy automatically renewed without having to take a medical exam. You simply pay more because you are older, not because your health is failing. This enables you to keep your low-cost term life insurance policy even if your health worsens.

Maintain (or strive for) good health. People in good health typically receive the most affordable life insurance. And, while you have no control over some circumstances, you do have control over others. These include eating well and exercising regularly to maintain a healthy weight, limiting alcohol consumption, managing stress, and not smoking or using drugs. If your health improves, ask your insurer if you can retake your medical exam; you'll often benefit from a lower premium for the remainder of the policy's term.

Consult a qualified insurance professional if you are experiencing health problems and/or have been denied coverage. If you are in good health, you should avoid having a medical exam for life insurance. By demonstrating your good health, you will be able to obtain the most affordable life insurance. You do, however, have options if you are in poor health or have been denied life insurance. One option is to work with an insurance professional who specializes in higher-risk candidates. Another option is to look into "simple issue" or "guaranteed issue" life insurance, which allows you to avoid the standard medical exam and obtain life insurance right away. Learn more about these options, as well as what to do if your life insurance application is turned down.

Begin small and gradually expand your coverage. Having something is always preferable to having nothing when it comes to life insurance. If you can't afford all of the coverage you need right now, start small. A healthy 30-year-old male can purchase a $250,000 20-year level term policy for as little as $13 per month. Even with this low-cost life insurance policy, if you died between the ages of 30 and 50, your loved ones would receive $250,000 if you died. (They'd also get the full $250,000 because life insurance proceeds are almost always tax-free.) As your savings and income grow, you can purchase more coverage until you reach the desired level.

Working with a professional insurance agent or advisor is the best way to investigate all of the low-cost life insurance options. There's no time like the present to find an insurance expert in your area, so use our Agent Locator right away.

Three Reasons to Rethink Life Insurance

The COVID-19 epidemic has changed many aspects of our lives, from daily activities to long-term goals. But one thing hasn't changed: the importance of life insurance. If you've been putting it off—or getting more of it—here are three compelling reasons to do so right now.

1. Financial security is provided by life insurance.

It can also serve as your family's financial foundation, providing security against unforeseeable disasters. Unfortunately, many Americans are uninsured or underinsured: only 50% of Americans own a policy, according to the 2020 Lincoln Financial Group Life Insurance Awareness Month Survey.

The COVID-19 outbreak, on the other hand, has highlighted the significance of life insurance. Because of the pandemic, more than a third of those polled believe life insurance is more important to have now, and a third have or plan to purchase new or additional life insurance.

Younger Americans, particularly Millennials, expressed a stronger desire to obtain life insurance. That's fantastic news, because they frequently achieve major life milestones, such as starting a family or buying their first home.

2. Life insurance provides more benefits than you might think, including living benefits.

The top reasons for purchasing life insurance, according to the survey, were to cover funeral expenses and to replace lost income to their family.

That makes perfect sense. In its most basic form, life insurance's tax-free death benefits ensure your loved ones are financially taken care of when you die, allowing them to pay off final bills and debt.

There are, however, plans that offer "living benefits" that can cover a person's overall financial needs, such as:

Increasing retirement income

Managing long-term care expenses

Keeping a company safe

And these lifestyle benefits are quite appealing to people: 45% of those polled said they would be more likely to buy life insurance if it provided more than just death benefits and could be used for future needs or emergencies while they were still alive. The good news is that such policies are available!

3. Getting life insurance may be easier and less expensive than you think.

The top two reasons respondents did not obtain life insurance, according to the survey, were the cost and competing financial concerns. However, life insurance can be quite affordable. In fact, if you're in good health, you might be able to purchase term life insurance for less than the cost of your monthly electric bill or your weekly morning coffee. There is insurance to suit every budget because there are so many options.

Technology advancements are also transforming the way we buy life insurance, from a time-consuming and inconvenient to a simpler, faster, and friendlier process. Furthermore, 40% of Millennials polled said they would be more likely to purchase life insurance if they could do so completely online. This is already an option! You can get a quote and apply for a policy online, and then electronically sign and deliver the policy. Many insurance companies even allow healthy people to avoid underwriting labs. Insurance can now be issued in as little as 24 hours.

While the global epidemic has increased awareness of the importance of life insurance, it should always be viewed as an important financial planning tool that can help families build, manage, protect, and pass on their assets and legacy. I'd recommend speaking with a financial or insurance professional, as well as your workplace benefits specialist, to help you identify where life insurance fits into your financial plan, confirm that the coverage you have still meets your needs, or explore your options if you need more coverage.

10 Life Insurance Facts You Didn't Know

 

Life insurance, for example. Is that what you hear when it's mentioned in the employee benefits package at your new job, or when you see it on TV or social media? Not to worry: we've got all the inside information you need. And it's not as frightening (or underwhelming) as you might think.

1. It is part of a sound financial plan. You are familiar with the concepts of saving and retirement. You may be familiar with long-term financial planning and investing for your health and happiness. In the event that you die, life insurance can assist you in planning for the long-term health and happiness of your loved ones, particularly those who rely on your income.

2. Life insurance comes in a variety of forms. In addition to work-based life insurance, there is term and permanent life insurance (which often only lasts as long as your employment at your employer).

Term life insurance typically has lower premiums but only provides coverage for a set period of time, such as 20 years. Your insurance coverage expires at the end of the term.

Permanent life insurance (whole, universal, variable) typically has higher initial premiums, but these policies typically allow you to accumulate cash value over time. Your coverage will last as long as you pay your premiums.

3. Life insurance is surprisingly affordable for the majority of people. Certain types of life insurance do become more expensive as more features are added, and the cost increases if you smoke or have health problems. According to Life Happens and LIMRA's Insurance Barometer Study, most people believe life insurance costs three times as much as it actually does. A healthy nonsmoking 30-year-old male can get a $250,000 20-year level term insurance policy for about $16 per month.

4. Major life events are frequently ideal times to join. Are you planning a wedding? Do you have any kids? Are you thinking about changing careers? Have you bought a house? Significant life events are frequently the catalysts that make you realize you need life insurance—and while we're on the subject...

5. You can make changes to your life insurance policy. Perhaps your parents bought you a life insurance policy when you were a baby. Maybe you had a term policy when you bought your house, but now you have a larger family and are concerned about paying for everyone's college education. Perhaps you want to increase your coverage because your overall cost of living has risen. On that note...

6. You might need more coverage than you think. Some people believe that life insurance is only for paying off personal debts and funeral costs. However, purchasing life insurance ensures that those who rely on you will be able to meet their current and future financial obligations if you die. Do you need help calculating the amount? To use this online calculator, go to www.lifehappens.org/howmuch.

7. Life insurance payouts are made on time. Because life insurance is unaffected by estate disputes, it usually pays out quickly, sometimes in days or weeks, and usually within a month.

8. Life insurance proceeds are usually tax-free. Consider crowdfunding platforms like "GoFundMe," which have grown in popularity while causing tax consequences for the people they're supposed to serve (to say nothing of fees and the lack of guaranteed benefit). It's also useful when leaving an inheritance to a beneficiary.

9. If you allow it, life insurance can protect your family. Keep your premiums, beneficiaries, and the door to your agent open so that your loved ones know who to contact if the need arises. Keep your documentation alongside your other important documents.

10. Life insurance can be much more than that. By using "riders," or an addendum to a life insurance contract or even a special type of policy, you can convert life insurance benefits into "living benefits," or money you can access before you die or use to pay for long-term care.

Contact an agent if you still require assistance with any of this. They can help you understand the nuances as well as the best policy for your budget and requirements. The most important thing to understand about life insurance, of course, is that it exists to help those you care about the most.

5 Reasons to Increase Your Life Insurance Coverage

Depending on whether you have term or permanent life insurance, you could be covered for one year or the rest of your life. However, if you've had a policy for a while, it may not be sufficient.

Your insurance requirements change as your life changes. It may be a good idea to double-check your coverage depending on what has happened and how your thinking has changed since you first purchased insurance. Here are five red flags to look out for.

1. You've got a child. According to USDA data from 2015, the cost of raising a child until the age of 17 is $233,610—and that doesn't even include college expenses if you plan to assist.

If you've recently expanded your family, your spouse or partner may be unable to cover those costs if you die. This is especially true if you are the primary breadwinner in your household.

2. You've just bought a new house. According to Life Happens and LIMRA's 2018 Insurance Barometer Study, two of the top five reasons people buy life insurance are to cover mortgage debt and to pay for house expenses.

The last thing you want is for your family to be evicted from their home because they are unable to make their mortgage payments. So, if you've just bought your first home or a new home with a larger mortgage, make sure you have enough coverage to cover the monthly payments.

3. Your earnings have increased dramatically. According to the same Barometer Study, two-thirds of people who own life insurance did so to replace lost income in the event of their death. If you've recently received a significant raise or your income has gradually increased since your last insurance purchase, make sure your coverage is still adequate to replace it.

4. Your lifestyle has changed. While salary increases are frequently accompanied by lifestyle changes, you can also obtain a lifestyle upgrade after paying off debt or increasing your cash flow in another way. If you've noticed that you're spending more per month than a year or two ago, your current life insurance policy may be failing to meet the needs of your loved ones.

5. You're thinking about estate planning. Another top five reason people purchase life insurance is to transfer money or leave an inheritance. As you get older, you might start thinking about what kind of legacy you want to leave behind.

If you've been focusing on other life insurance needs, it may be time to take another look to see if you'd owe any estate taxes or what other liabilities your estate would have to pay if you died. You should also consider whether you want to leave money to your children or a specific charity.

If you have experienced one of these events and are unsure whether you need to increase your coverage, use a comprehensive life insurance calculator to determine how your needs have changed.

In most cases, you will not be able to increase the coverage on your current insurance. Instead, you will buy a replacement to supplement the original. You can do this by contacting your insurance provider or shopping around to see if another insurer can provide you with a better rate.

Whatever you decide, make sure to check in on a regular basis to see if your life insurance policy is still adequate for the people you care about.

5 Things You Should Know Before Purchasing Life Insurance for Your Child

We spend so much time talking about why adults need life insurance (income protection, burial costs, and so on) that it's easy to overlook why you should also consider insuring your children.

When we think about it, we reason that our children don't contribute to the household budget—in fact, anyone with children knows that raising them significantly depletes the household budget! Purchasing a permanent life insurance policy for a child, on the other hand, can provide them with financial benefits later in life (in addition to the death benefit).

So, before you get sucked into internet debates about how to get your baby to sleep or what kind of diapers to use (or if you've already gone through that and are dreading the next round of parenting debates), here are five things you should know about buying life insurance for your child:

1. Plans for life insurance "age." A great reason to buy juvenile life insurance is to ensure that your children are covered from the start, and as they get older, they may be able to take advantage of riders that allow them to increase their coverage at a guaranteed rate regardless of their health. People's health, including children's health, changes, and having a policy in place can help ensure they get the coverage they need regardless of their health.

2. It provides a solid foundation: While there are tax-advantaged savings vehicles for retirement and college, this is not always the case for other large expenses that young people face, such as car down payments, weddings, and first home purchases. The cash value of a policy can be borrowed against for these expenses, but failure to repay reduces or cancels the death benefit.

3. Not sure if you should get them their own policy? Incorporate them into yours. Examine your own life insurance policy to see if there are any easily affordable riders that will cover the children.

4. Do not purchase the first policy that arrives in your mailbox: Your contact information is made available to life insurance companies by the same marketing clearinghouses that ensure you receive weekly updates on your pregnancy. Before committing to a policy, make sure to compare prices and speak with an insurance specialist or advisor who can help you understand your options.

5. There is a safety net in place. We all want our children to be happy, healthy, and strong. However, if the worst happens, as it did for the Koonsman family (you can hear their story here), juvenile life insurance can act as a buffer, covering burial costs while also allowing parents to take time off, care for their other children, and allow everyone to grieve as needed. And, as the Koonsmans' story shows, they were able to honor their daughter Hope's memory by establishing a scholarship in her name.

What Isn't Life Insurance?

Do you have any questions about life insurance? I'm not sure I blame you. When I first started writing about finances more than a decade ago, I had little understanding of life insurance.

I was aware of life insurance because it was provided by my employer, and I considered $50,000 coverage to be a substantial sum of money. I also recognized insurance company names from late-night television commercials and the occasional piece of junk mail.

I used to believe that "insurance" was something you had to have for your car, home, and health. The "life" section was a big blob of "other." If that's the case, here are a few pointers to help you focus—by understanding the "nots."

1. Typically, workplace life insurance is insufficient.

I discovered a few years ago that many people never look beyond the life insurance provided by their employer. Workplace policies are a nice perk, but they are usually limited to one or two times your annual salary or a set amount, such as $50,000. Furthermore, when you leave the company, your coverage usually ends.

How far will that go when you consider what has been left behind for your loved ones: a loss of income and, more than likely, debts and bills? What about rent or mortgage payments, child care, and college tuition?

A Life Insurance Needs Calculator from a reputable source, such as www.lifehappens.org/howmuch, is an easy way to estimate how much life insurance you require.

2. Life insurance is NOT a luxury item.

Many people have never considered buying life insurance because they believe it is an unnecessary expense. Consumers believed the cost of a 20-year, $250,000 basic term life insurance policy for a healthy 30-year-old was three times higher than it is, according to a recent Life Happens and LIMRA study. Younger people, in particular, overestimate the cost of a term policy.

What would you say if you had to guess the cost of the aforementioned policy? That policy will set you back about $13 per month. Certainly not a luxury—most of us spend more than that on a meal out.

3. Life insurance is used for more than just funeral expenses.

While funeral costs are significant and a major reason people buy life insurance, it does so much more. Life insurance payouts can help replace lost income, pay off a mortgage, ensure a college fund, or protect a retirement nest egg if you die.

The proceeds of a life insurance policy are typically tax-free and can be used for whatever your loved ones need now and in the future. Isn't it incredible?

4. Life insurance isn't just for the physically fit.

Life insurance becomes less expensive as you get older and healthier, so don't rule it out just because you're not in Ironman shape!

Many people avoid buying life insurance because they believe they will not be eligible. However, it is often possible to qualify when certain medical disorders, such as diabetes or high blood pressure, are under control with the help of a doctor or medication. You may even be able to get coverage after a heart attack. Just keep in mind that working with an experienced insurance agent is generally recommended if you are concerned about a health issue and qualifying for coverage.

If you're feeling overwhelmed by all of this information and don't know where to start, keep in mind that a life insurance agent will meet with you at no cost to discuss your needs and assist you in selecting life insurance coverage that fits your budget. If you don't already have an agent or advisor, click here for help finding one. You can also use the Agent Locator to find a local agent.

Remember, the right agent or advisor can help you make sense of the chaos and get you on the path to the financial future you want, complete with the security your loved ones desire.