Why Cheap Term Life Insurance Isn't Always So Cheap

Why Cheap Term Life Insurance Isn't Always So Cheap

You've heard a lot of talk about cheap term life insurance and you've decided that it's something you need to start investigating. That's definitely a step in the right direction. Like so many other tasks in life, you've turned to the Internet to get the ball rolling.

You've filled out numerous online applications for cheap term life insurance but as the quotes start to come back you're realizing that term life insurance isn't really all that cheap. What's going on?

Your health matters

A couple of factors might be causing higher than anticipated costs. First and foremost is the general state of your health. Getting an online quotation is one thing, but pricing an actual policy after the insurance company has reviewed your medical history is really what determines your true costs for your insurance.

Very rarely will an individual get life insurance without first having a medical examination. Getting a policy through your place of employment is the only time this may happen, but generally in this situation, your coverage will be minimal.

If you're looking for cheap insurance that'll actually be of financial value after you're gone, you'll likely have to supplement the policy you get through your job.

Let's take a look at the logic for a moment. If given the choice, life insurance companies would select as customers only those whose health is excellent. Excellent health means you should live longer. When you live long there is less chance that the insurance company will have to pay out your policy's death benefits.

In other words, if you outlive your cheap term life insurance policy, the insurance company comes out ahead. The company has collected your premiums, but it did not have to give any money back to your beneficiaries.

The categorization system

When determining the true cost of a policy, insurance companies use a classification system. Individuals with a clean bill of health generally get classified as "super preferred" and get the lowest-priced premiums. They're the ones who get the lowest rate premiums on their insurance. Several more categories exist and, unfortunately, each category comes with a progressively higher premium.

Some of the health conditions that raise a red flag in the eyes of an insurance company include use of tobacco products, being overweight, high cholesterol, high blood pressure, and a history of cancer, stroke, diabetes, heart disease or other type of chronic disease in your family, even if you do not have any symptoms of these conditions.

If you do have symptoms of the above conditions, you should expect that a lower rate premium isn't something for which you'll qualify.

The types of medical conditions listed above are more likely to cause premature death in an individual. If the insured individual dies during the policy term, the insurance company will have to pay out death benefits. And that's what life insurance companies look at when deciding whether or not an individual qualifies for cheap term life insurance.

Looking for low-cost Life Insurance try Term Life Insurance. We compare 95% of the UK market to find you cheap term life insurance without compromising on policy benefits and features.

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Is your life insurance policy correct and updated?

Is your life insurance policy correct and updated? 

Is your life insurance policy updated?  Listen to this sad story about what has happened to this family after their daughter died.

Many of us purchase life insurance and forget about it.  Well if life brings changes, it might result in changes within your life insurance policies - even the life insurance you have at work.

Watch this video and listen to a recent  story about about the perils my client is going through because of paperwork not being completed.

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9 Life Insurance Myths: Get the Facts and Protect What Matters Most

We'll do anything to protect our loved ones, right? But, far too often, most people don't have life insurance, or if they do, they do not have enough. Their reason for not having life insurance  varies: confusion about the different types of insurance available, the amount necessary and the associated costs, leave many depending on friends, loved ones, and co-workers to decide what protection is needed. Unfortunately, most of the information we receive is not correct.

Let us help you banish 9 myths about life insurance and give you facts that may change your perspective and give you information for protecting your loved ones.

Myth 1: I'm single, or married with no children, so I don't need life insurance.

Fact: Life insurance can help you cover your debts as well as help you provide for your loved ones in the event of death, even for those without children.

If you are in this group, you may carry debts that you prefer were taken care of rather than taken out of assets left to your loved ones. Still, others may use life insurance proceeds to help nieces, nephews, cousins or siblings achieve their financial goals. For a modest premium, life insurance can help to provide for those who are left behind. How much life insurance do you need? Use this calculator to find out.

We're here to help you figure things out. Contact me today

Myth 2: I can't afford life insurance.

Fact: Term life insurance, which is life insurance purchased for a period of time, is very affordable for many people. For example, if you are a healthy, non-smoking, 35-year-old female who has a good family health history, you may be able to purchase a policy for less than an evening at the movie theater per month. Get a term life insurance quote now. 
We're here to help you figure things out. Contact me today

Myth 3: I'm a stay-at-home parent. I draw no income. I don't need life insurance.

Fact: If you're a stay-at-home parent, you may not provide an actual paycheck for the household, but you do provide services that would cost tens of thousands of dollars to replace. These include: the cost of day care, a chauffeur or taxi service, a cook and a home cleaning service to name a few. If you have an individual life insurance policy, this may help to ease the burden for the loved ones if you should pass away.

Use this calculator to help you determine how much life insurance coverage you may need to cover the spouse that stays home. Get a term life insurance quote now. 

We're here to help you figure things out. Contact me today.

Myth 4: I have a life insurance policy through my job. If I take another job or get laid off, I can take the policy with me.

Fact: Typically, your group life insurance purchased through an employer isn't portable - meaning if you leave your job, you're probably also leaving your life insurance protection behind. However, if you own an individual life insurance policy purchased through an insurance agent or an Allstate personal financial representative, leaving your job will have no effect on your coverage. Get a term life insurance quote now. If you need help figuring things out we're here to help. Contact me today

Myth 5: My beneficiaries will have to pay income taxes on the proceeds from my life insurance policy.

Fact: Your life insurance death benefits are generally income tax-free; yet very few people know this. Speak with an Allstate personal financial representative to help you sort through the details. We're here to help you figure things out. 

Myth 6: If I travel out of the country and something happens to me, I am not covered.

Fact: In the unlikely event you pass away while in a foreign country, the policy would most likely pay out to the beneficiaries. However, many life insurance policies exclude certain countries, such as those currently on the U.S. Department of State's Current Travel Warnings List; so it's important to review your life insurance policy prior to leaving the country. We can help you sort through the details.

Myth 7: If I get a term life insurance policy, I can't convert it to permanent or whole life insurance policies.

Fact: It is possible to convert a term life insurance policy into a permanent policy, depending on the policy purchased. However, individuals seeking to do so should expect an increase in premium. In addition, the conversion may have certain limitations or require renewals. Many people like to purchase term insurance, which tends to be less expensive, while they're younger because it may make obtaining a preferred premium easier when they attempt to convert later.

We're here to help you figure things out. Contact me today.

Myth 8: I don't need life insurance once my children are adults.

Fact: Life insurance can help achieve a goal of leaving an inheritance to children, other loved ones, or help relieve the burden of paying for final costs such as a funeral or final medical bills.

We're here to help you figure things out.Contact me today

Myth 9: I have a comfortable savings, so I don't need life insurance.

Fact: It is easy to underestimate the amount of savings that is required in the event of death. Most Americans do not have enough in their personal savings to cover these expenses. If you don't have enough saved, it is possible your loved ones won't be able to pay off final expenses or be able to hold onto assets like a home. Use this calculator to determine how much life insurance you may need. Visit our life insurance page to sort out the basics.

Heavyweight bout of the century - Whole Life vs. Universal Life

Whole Life vs Universal Life

The match of the century between the heavyweight champions of Life Insurance

Whole Life and Universal Life both have had their fans and critics ever since universal lfe or UL's were spun off as a more flexible and interesting option to what some were calling "stodgy & boring" whole life in the late 70's and early 80's

Certainly that is a very simplistic description of the two products.  The arguments of the two seem to fall into these tracks.

UL offers more cash value with flexiblity in premiums and terms while offering more transparency.

WL guarantees to provide to the owner what he signed up for without unpleasant surprises down the rode.

One person's stodgy and boring is another's peace of mind.

As the face off begins, the two product lines have been doing well, in their own ways, since the 2008 financial crash.  WL has been on a steady ascent since the past recession started.  It has showed 15 consecutive quarters of premium growth as of the first quarter of this year, leading to a 33 percent market share, according to LIMRA (www.limra.com) 

UL has a bigger chunk of the market at 40 percent, even though it has had a more ragged history of premium and policy growth since 2008.  But the interest has come back to UL, primarily because of the indexed UL (IUL), which is a small but booming line of products.  UL showed a 8 percent premium growth in the first quarter.  Though this was fueled by a 23 percent increase in IUL premium.

All the products in the UL and WL spheres are excellent choices for clients individual needs and risk tolerances.  But there are clear distinctions and considerations that you need to be aware of as these two heavyweights are presented to you.

It is key that you have a professional who has sold both products and understands what is behind the curtain.  As good as these products are it is very important that they are set up correctly.

Whatever you do - do something.  Just imagine you not coming home tonight and what that would mean to your family.

For more go to : www.yourinsurance411.com  - Because you care.

Key Person Insurance: How It Works

 Key Person Insurance: How It Works

Life Insurance - Because you care: Key Person Insurance: How It Works: Key Person Insurance: How It Works In the event of the death of a key colleague, key person insurance can help keep your bus...

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Key Person Insurance: How It Works

Key Person Insurance: How It Works

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In the event of the death of a key colleague, key person insurance can help keep your business afloat. Here’s what to consider.

No one wants to consider the death of a colleague. But if such a tragedy could lead to your company’s demise, then key person insurance is a worthwhile precaution. It is life insurance on specific people in a business and is beneficial when a company’s survival relies heavily on the role of one or two people.

Some small business owners don’t understand that they need key person insurance, in addition to life and disability insurance, because it’s designed to protect the business.. If your company employs more than one person, review the basics below to determine whether it makes sense for you:

Who is insured?

Typically, key person insurance covers the owner, the founders or one or two key employees.

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 Key Person Insurance: How It Works

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