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What's the Real Cost of Free Term Life Insurance Quotes?

Looking to buy term life insurance? Most people will go online and run free term life insurance quotes through one of the quote engines. But are these quotes really "free?" What's the real cost?

"Free" Quotes Can Potentially Set False Low Premium Expectations

Generally, you find an online quote engine, fill out some information including your age, weight, height and smoking history, and out come your free term life insurance quotes.  If the quote engine asks medical questions, they are few and fairly broad. 

Since an online quote engine can't take everything into account, you may very well get a quote which is lower than what you would actually end up needing to pay on your premium after you apply and have a medical exam, blood tests and a health history.  Remember the insurance company is going to ask questions, possibly order medical records, check the MIB (Medical Information Bureau) and do a Prescription Database check.

"Free" Quotes Can Potentially Give You a Poorer Rate

On the other hand, the online quote engine might give you a poorer rate and a higher premium than an independent life insurance agent might be able to find for you. Remember the agent knows which company will look most favorably on your "issues".

When reviewing the quotes, you might feel discouraged and decide you can't afford insurance right now.  Don't be...talk to an independent life insurance agent.

How an Independent Life Insurance Agent Can Get You a Better Free Quote

For more accurate free term life insurance quotes, contact an independent life insurance agent. An independent life insurance agent works with many highly rated companies and knows the ins and outs of many different company underwriting policies.  They work for you, not any particular company, and their goal is to make sure your application goes to the company that will give you the best rating for your particular health and lifestyle situation.

What an Independent Life Insurance Agent Will Do:

• Ask enough questions to understand your unique life and health situation.
• Give you a more accurate initial quote.
• Help you understand all your life insurance options.
• Set up your medical exam and blood tests.
• Assist you in filling out your application.
• Help you pick the company most likely to give you a favorable rating.

The Bottom Line

Free term life insurance quotes from an online engine may not be accurate and are really not your best way to start. If you get a free quote from an independent life insurance broker, you will get not only a more accurate idea of your premium cost, but better help in sorting through your term life insurance options both now and in the future.

Photo Credit: The Black Dog

AARP Insurance vs Low Cost Term Insurance

AARP is a well know name in the senior community.  Why, even in the not so senior community!  Many people feel safer buying insurance and other services through AARP.  People feel as though AARP has vetted the company and they are getting a great deal. 

Did you know low cost term insurance can save you THOUSANDS of dollars in cost over the life of your policy if you choose this over an AARP life insurance policy?

The difference is staggering.  Let me tell you about it:

The Bottom Line

Do your research before you buy.  Talk to an independent life insurance agent if you want to get low cost term insurance.  They will help you get the coverage you need at the best price possible.

Transcription of video:

Hi this is Terry Robbins with LifeNet Insurance Solutions and today we are going to talk about AARP life insurance vs. low cost term insurance.

AARP insurance is a simplified issue product. You go online and fill out their form.  It has a few medical questions on it, and if these medical re answered to their satisfaction so that you do not have certain medical conditions, you can get insurance at their company with no other underwriting, no tests, nothing, you’re done.  So it’s very easy and very convenient.  You will, however, pay for the privilege of not having a blood and urine test, and someone come to your home and do an exam.

One of the products we have is called; we call low cost term insurance.  And what we do is we look for the lowest cost carrier to fit your needs.  So what I’ve done today is compared the AARP price, excuse me, the AARP price with the low cost term insurance price.  Now, for low cost term insurance you’ll fill out an application, an agent will help you do that.  You’ll take an exam and have blood and urine drawn.  They’ll do full underwriting, possibly getting medical records and asking you other questions.

Here’s the difference:

Number 1.  The AARP policy has a price that you start with.  The price goes up every 5 years.  So you will get an increase all along the way.  If you choose the AARP policy the policy ends when you are 80.  When you turn 80 it’s over.  You can convert it to a permanent policy before that.  On the low cost policy, depending on your age, it can go for 10, 20 30 years.  If you get one at age 60, 65 it can go to 90, 95. 

So here’s some difference in pricing.

If you’re 45, we’re looking at $100,000 of insurance for 20 years with a standard rating.  AARP will cost you $40.00 a month.  Low cost- $24.50. 

Take a guess how much you would save over a 20 year period, spending a half an hour to do an exam and blood and urine?  Can you believe it’s over five thousand five hundred dollars ($5500.00)?  Well it is!

If you’re 50, AARP will start at $60.00 a month, low cost term insurance $37.00.  We’re still in that fifty five hundred dollar ($5500.00) range for those 20 years.

If you’re older, let’s say you’re 65, and you’re going to get a 15 year policy because with AARP that’s as long as it can go, you’re looking at $108.00 a month to start, low cost term insurance $88.00.  The difference in 10 years would be twenty four hundred dollars ($2400.00), in 15, thirty six hundred dollars ($3600.00). 

So as you can see, taking that half an hour, and spending a little time with an agent to get to the right company can save you thousands a thousands of dollars.  Are you that afraid of taking a blood test?  Probably not!  Not for five grand ($5000.00)!

This is Terry Robbins with LifeNet Insurance.  Hope I’ve given you something to think about today.  Thanks for listening.  Hope to see you soon.  Bye bye.

 

Photo Credit: Images Money

3 Problems with Senior Life Insurance

Senior life insurance can be an even more important purchase than when we were younger.  There are 3 problems which sometimes hurt seniors trying to make decisions about their life insurance.

First Problem: What Advertisers Make the Senior Believe About Cost

Everyone loves a bargain and of course advertisers draw us in. You may even have seen life insurance advertised for as little as $1 or $10 a month. Of course, this is a teaser rate for the first month, just to get you interested. 

Unfortunately, those advertisements can plant a false idea of the real cost of life insurance for someone in their 50s or older. Although they never actually state it, very low cost insurance is usually available only for people in their 20s to 40s who don't have the health risks we all get as we age. 

Second Problem: Seniors Wait Too Long to Get Life Insurance

When is the best time to get the cheapest cost on senior life insurance? Now! The price you will pay for your monthly premium on a 20 year term policy dramatically increases as you go from 50 to 60 and from 60 to 65.

The rise in cost is even higher for men than women. Why is that? First, women live longer than men.  Secondly, as we age, we are more prone to have health issues, or need to take medications which will impact our rating for life insurance, and therefore raise our overall premium cost. Even if the rating stays the same, the price is higher as there is a greater likelihood that the insurance company will have to pay out. 

Here are two examples of prices with the lowest cost company for each case:

• Female, Preferred risk,  $250,000 of insurance for 20 years, level face amount and premium
• • Age 50 is $39 per month
  • Age 60 is $94 per month
  • Age 65 is $167 per month

• Male, Preferred risk,  $250,000 of insurance for 20 years, level face amount and premium
• • Age 50 is $50 per month
  • Age 60 is $129 per month
  • Age 65 is $258 per month

The moral of this story? Get your insurance at age 50 (or as soon after) so you can lock in the lowest rates.

Third Problem: Figuring out Wants Vs. Needs

Can you afford the amount of insurance you want? What do you really need?  It would be nice to leave a million dollar policy, but does your family need that much?  What kind of lifestyle do you live?  Do you have savings, a pension, other income?  It all should be considered when you decide how much insurance you need.

There are many ways to save money with senior life insurance and an independent life insurance agent is your best guide because they deal with many different insurance companies and can help you find the policy and the company which is most likely to give you the best deal. Know how much you are comfortable spending and discuss that with your agent. But be realistic...if you are not in very good health, expect to pay more.

The Bottom Line

Stuff happens. You are probably at your healthiest today. You certainly are at your youngest! So don't delay, and don't let yourself be fooled by advertisements. Contact an independent life insurance agent and let them be your guide to finding senior life insurance now at the best possible rates for you and your situation.

Photo Credit: Eli Christman

How to Get Whole Life Insurance Quotes the Easy Way

When thinking about financial planning, many people include whole life insurance as part of their mix of assets. With whole life, you build up a cash value so that your life insurance is protection as well as an emergency financial fund. Get whole life insurance quotes the easy way by talking to an independent agent.

How can You Get Quotes for Whole Life Insurance?

To get whole life insurance quotes policy, you will need to talk to an agent.  Any policy with cash value has numerous variables and you can't go on line and get a quote.  who will ask you questions about your:

• Age.
• Weight/height.
• Smoking/non-smoking.
• Male/female.
• Health history.
• Lifestyle and job.

These are the same questions an agent will ask whether you are looking for a term policy or a permanent policy.  These questions help determine your rate.  The more questions the agent asks, the better they are able to give you an accurate quote estimate.

There are two types of life insurance agents, captive and independent. Captive agents  work for one company and can only sell their policies, i.e. NY Life, MetLife, etc.  Obviously, if you talk to a captive agent, this is going to limit your choices. You would have to talk to several agents to get an idea of different prices from multiple companies.  How else will you know if you are getting a good value?  An independent agent has many companies in their "stable" and can give you multiple choices.

How Using an Independent Life Insurance Agent Can Make Your Search Easier

An easier way to get an idea of whole life insurance quotes from a range of companies is to talk with an independent life insurance agent. Independent life insurance agents work for their client and not for any one particular insurance company. Better yet, they know all of the different policies available for you from many highly rated companies. An independent agent can:

• Explain your options in whole life and other types of policies, both permanent and term.
• Help you decide which company's underwriting guidelines are most likely to give you a favorable rating, and assist you in applying with that company.

Choosing an Independent Life Insurance Agent

Here are some tips to help you choose which agent to call:

• Check out their website to see if they specialize in insurance for people your age.
• Look at client comments.
• See if their site gives you useful information to help answer your questions even before you know what they are.
• Check with the state insurance commissioner to make sure their license is active and there are no complaints against them.

Give them a call to discuss your situation.

The Bottom Line

You want not just the easiest whole life insurance quotes, you want the best ones. An independent agent will help you make certain that whole life is the best way to meet your objectives. You may find less expensive term or guaranteed universal life insurance will do what you want for less money. An independent agent can help you look at all your options, so that you make the best decision for your family.

 Photo Credit: Michael Ignatieff

How to Save Money with a Life Insurance Trust (ILIT) (with Video)

An irrevocable life insurance trust (ILIT) can be a vehicle for avoiding the payment of unnecessary estate taxes. 

A survivorship policy makes the most sense as the type of insurance to purchase in an irrevocable life insurance trust.  There are different types of policies available, with various benefits.  Do you already have a trust and policy in place?  Depending on the policy you currently have, you may be able to save money with a Guaranteed Premium Universal Life insurance policy.

Here's some basic information about survivorship insurance in a life insurance trust from Lenny:

Here is a transcription of the video:

Hi, this is Lenny Robbins at LifeNet Insurance Solutions.

A life insurance trust can be a great tool for avoiding the payment of unnecessary tax upon the death of the second spouse. 

If your tax advisor suggests the use of this type of estate planning instrument, you’ve got several choices about the type of life insurance to be purchased.

Naturally, you will want a survivorship policy, often known as a second-to-die policy.  Because the insurance company is paying only one death benefit, and only on the death of the surviving spouse, the premium is less expensive that insuring two lives independently.  Also, and this can be very important, only one spouse will need to be healthy enough to qualify for coverage.

Certainly you’ll want permanent coverage for the trust.  Many families who already have a trust in place may have funded a whole life policy, especially if the trust has been in force for 5 or 10 years. 

Today however, a guaranteed premium universal life policy may accomplish the same result, and at a significant cost savings. 

In an upcoming video, I’ll show you a real life example of a client who was able to cut his premium in half by replacing the policy and guaranteeing both premium and policy face amount forever.

Meanwhile, just click on the link below for some free valuable information on this subject.

Photo Credit: prayitno

How to Get the Best Low Cost Term Life Insurance

If you have anyone who is dependent on you, life insurance is an easy and important way to protect them financially. However, you may wonder: Can I afford it? How can I get the best low cost term life insurance?

Figuring out Your Needs vs. Wants

Do you need $100,000, or $1,000,000? One of the things which hold some people back from buying life insurance is not knowing how much they need. They are just not sure.  Some people tend to buy the highest amount possible, but is that really the best way to go?

To get the best low cost term life insurance, you should talk to an independent life insurance agent. An independent agent will not try to sell you any particular company's product. Instead, their job is to help you:

• Assess your needs and objective.
• Understand how your age, health and lifestyle will affect your insurance company rating and therefore your insurance costs.
• Help you decide what amount of life insurance you really need to protect your family.
• Determine which insurance company has underwriting policies most likely to give you a favorable rating.
• Decide whether what term period (10,20,or 30 year) meets your goals best. 
• Help you find your ideal coverage within your budget.  If this isn't possible, the agent will let you know what your budget can buy.

What Can You Afford?

To tell you the truth, what you can't afford is to wait. The most important factor in getting low cost term life insurance is age. The older you are, the more expensive it will be to get life insurance. More importantly, without insurance you family has no protection and that is something you really can't afford.

As I mentioned earlier, if you cannot afford your ideal amount of insurance, consider buying what you can afford.  Some protection is better than none at all.  Ask anyone who has lost a spouse and not had any insurance.  You can always add coverage later when your finances improve.

Get Educated

The more you know, the better chance you will be able to get low cost term insurance that will meet your needs. How can you learn about insurance? 

• Read blogs about term insurance.
• Read blogs to get information about costs and applying.
• Look for an agent who offers good information and does not pressure you into buying today.
• See what other customers have to say about the agent. 
• Check out your state insurance commissioner website to make sure they are licensed and there are no complaints on file.

Choose an independent agent you trust and talk with them about your situation. Their job is to help you get the best value for your insurance dollars.

The Bottom Line

The best low cost term life insurance is the one which meets all of your insurance needs at the lowest possible premium price. Rather than having to shop around at many different companies, let the independent life insurance expert direct you to the company most likely to give you the best value.

Photo Credit: Anthony Easton

Secrets of Over 50 Life Insurance

Often people in their 50s are at the period of time when the life insurance they purchased when younger is reaching the end of the term. So now is the time to consider buying over 50 life insurance.

How is Life Insurance Over 50 Different?

When you were younger, you probably saw life insurance as something to provide for your family financially in case of an untimely death.  It would provide replacement for your income.

Although you still are concerned about your spouse and family, you may also want to use over 50 life insurance to allow you to:

• Take out your maximum on your pension and provide for your spouse through life insurance.
• Provide cash for your estate taxes.
• Provide for a special needs adult child.
• Make sure your business would have money to continue without you.

Why Get Life Insurance at 50 rather than 60?

Since many of the reasons to buy life insurance are based on retirement considerations, you might be tempted to wait. However, there are many reasons why over 50 life insurance is better to buy sooner rather than later:

• Premiums for life insurance are always less expensive the younger you are.
• People are often healthier, more active, and in better shape in their 50s, and so qualify for better rates.
• Health risks of diseases like diabetes and heart disease increase as we age.
• Purchasing life insurance when you are younger and choosing a guaranteed premium can keep your rate the same no matter what changes in your health.

The Secret of the 20 and 30 Year Term

Recently, life insurance companies have begun to offer 30 year term life insurance for applicants up to age 65. A 30 year term would expire when you are 95.  However, check to make sure a permanent policy would not cost less!  At age 65 you may find that term life is not the least expensive. 

Term life insurance is almost always less expensive than permanent life insurance but offers many of the same advantages. By purchasing 20 or 30 year term insurance in your 50s, you will be sure to have life insurance locked in which will take you into your 70s or 80s.

The Bottom Line

Over 50 life insurance is an excellent investment, but you need to be wise in choosing the best policy for you. An independent life insurance agent is your best guide to choosing a policy which will take care of all your future needs.

 Photo credit: Kirsty Hall

How To Get Affordable Life Insurance for Seniors

As we age, our needs for life insurance change.  Although we are still concerned about providing for our families, using life insurance in estate planning or maximizing retirement benefits is also a consideration. Yet you may wonder if you can get affordable life insurance for seniors. The simple answer is, yes, you can get affordable insurance, especially if you are now in good health.

What Drives Costs for Life Insurance?

Of course we all know that age is a factor in premium cost for life insurance. However, age is only one of the factors that companies use to rate you. Other considerations are:

• Medical history.
• Blood tests and paramedical exam.
• Weight.
• Smoking or non-smoking.
• Lifestyle of dangerous sports or risky hobbies like parasailing and scuba diving.

If you are a senior in good health, chances are that life insurance may be more affordable than you think. Moreover, seniors benefit from getting the life insurance they need when they are healthy so that future health problems don't drive up costs.

Senior Life Insurance is a Competitive Market

As more of us live longer, healthier lives, life insurance companies have realized that the senior market is good business. That has led to lots of competition for the senior life insurance customer. Of course competition means more choices and better rates for you, the consumer. So there has never been a better time to buy affordable life insurance for seniors.

An Independent Agent Can Help

Because of the intense competition for the senior life insurance customer, the rates go up and down. An independent life insurance agent, who knows the ins and outs of many company rates, is your best guide to finding affordable life insurance for seniors that meets both your needs and your budget. Generally, term life insurance is less expensive than permanent.  Luckily, term life insurance can now  be bought up to age 65  for terms as long as 30 years.

The Bottom Line

If you are a senior in good health, your most affordable life insurance is the one you apply for now. See an independent agent for help in getting affordable life insurance for seniors. You may be surprised at the options available to you.

 Photo Credit: Mykl Roventine

7 Ways a 1035 Exchange May Improve Your Insurance Coverage

A 1035 exchange (named so because it is allowed by Section 1035 of the IRS tax code) allows you to transfer the accumulated funds in an existing life insurance policy into a new policy without triggering a tax event. It is this lack of taxation that enables you to use these exchanges for many beneficial purposes.

Basic Rules of a 1035 Exchange

IRS Requirements Section 1035 allows a life insurance policy to be exchanged for a new life insurance policy or an annuity contract without taxation, provided that:

• both policies or contracts have the same owner
• both policies or contracts have the same insured
• the funds never come into direct possession of the owner (no checks made out to you allowed, the money must transfer from one insurance company directly to the other insurance company.  Internal 1035 exchanges are also possible, that is staying with the same carrier, but moving money from one policy to another.)
• the new policy has an equal or greater face amount
• 1035 exchanges are only valid using non-qualified money (the policy or contract is not part of a retirement account.)

The following types of exchanges can be made:

• A life insurance policy for another life insurance policy, endowment contract or annuity
• An endowment contract for another endowment contract or annuity
• An annuity contract for another annuity contract

How it Can Improve Your Coverage

One of the most common reasons for a 1035 exchange is utilizing accumulated cash in an existing policy to either

• pay down the cost of the new policy, thereby lowering premiums to make them more affordable or
• enabling you to buy a larger death benefit while paying about the same premium.

Once policy owners understand that the cash reserve will not go to their beneficiaries, but will be used by the insurance carrier to pay all or part of the death benefit, many people decide to do a 1035 exchange.  This allows you to benefit from this cash reserve and improve your life insurance asset.

Other benefits may include:  

• switching to a carrier that offers better rates
• qualifying for a better rate because of your improved health (e.g., losing weight, stopping smoking.)
• switching to a carrier that is financially stronger, particularly if your existing carrier is having problems
• consolidating two or more policies into one policy (which is allowed by the IRS as long as the policies are the same type)
• trading a life insurance policy for an annuity.Basic

Will a 1035 exchange work for me?

To find out, talk to an independent agent.  Here's what you need to know:

• A ballpark idea of what insurance rating you are likely to get so that you can discuss prices.
• Then look at what the cash surrender value of your old policy is.
• Figure out what that allows you to buy...either lowering the premium or increasing the amount of coverage...or both or neither.

Your insurability is the biggest variable here.  However, we know that with the right set of circumstances you can make that cash value work hard for you and your family.

The Bottom Line

A 1035 exchange can put more money into your pocket (via lower premiums) and allow you to switch to a better policy and possibly better carrier. To help you determine if such an exchange makes sense for you and to find the best deal on a new policy, consult with an established independent life insurance agent who has experience with 1035 exchanges. You may be delighted to discover the benefits that are possible.

Photo Credit: bradhoc

Best Term Life Insurance Buying Tips

When determining the best term life insurance to buy, two fundamental decisions must be made: how large the face value (death benefit) ought to be and how long the term (coverage period) should be. Before searching for the lowest price, you must first make wise decisions about what you need.

If you have more face value or term length than you need, you’ll be spending more money than you need to, while if you have less than necessary, you’re putting your family’s security at risk.

Variables to Consider

Variables that must be carefully considered in selecting the appropriate face value and term length include:

• your age
• your projected future income
• cost-of-living increases
• your spouse's earning power
• large anticipated expenses (e.g., paying for a child's college education).

Term Policies Aren’t All the Same

Despite the primary importance of term length and face amount, there are some other considerations that also help determine the best term life insurance for you.

Conversion Options

The conversion option enhance a policy’s value and can make the best term life insurance different if this option is very important to you.  It allows you to convert your term policy to a permanent policy at the same rating (adjusted for age) that you received for the term policy.  Most term policies are convertible.  They can be converted for a period of time or up to a certain age, whichever comes first.  Sometimes, the policies you can convert into change during the conversion period, becoming less flexible as time passes.

This conversion option can save you a tremendous amount of money if your health worsens during the term and you determine that you need coverage for a longer period of time.

Carriers differ significantly in their allowable conversion periods and the type of polices that can be converted into. An experienced independent life insurance agent will know which carriers have the best conversion options.

Term Policy Riders

An independent life insurance agent can also help you explore additional riders to ensure that you get the best term life insurance for your needs. Some of these riders are:

• Accelerated death benefit rider- if you are terminally ill (with 6-12 months to live) you may be able to access a portion of the death benefit to pay your living expenses.
• Child rider- you can insure your young children.
• Accidental death benefit rider- provides a larger death benefit in case of death by accident.
• Waiver of premium- if you are totally disabled for more than 6 months your premium will be waived.

There are other riders available.  Please note all of these riders have additional requirements and some will increase your premium.

Financial Ratings of Carriers

Search for a carrier with a strong financial rating from services such as Moody’s or A.M. Best, which monitor carriers’ balance sheets, cash flow, and other financial indicators. You should only choose a carrier with at an A, A+, or A++ rating. 

Every independent life insurance agent must make their own determinations about what companies they will represent.  We prefer companies with a rating of A or better.  We want companies that have a solid financial foundation.

The Bottom Line

To find the best term life insurance for you, you must thoroughly evaluate your needs.  Be sure to educate yourself and understand the different types of policies and options available.  Then and only then should you focus on getting the best price. A qualified independent life insurance agent can provide valuable guidance throughout the process.

 Photo Credit: Roger Price

Strategies to Make Life Insurance For Seniors Affordable

People are living longer.  Many of us are working past age 65, which used to be the expected retirement age.  There is a great need for life insurance for seniors.  There are many reasons why we need the insurance.  One of the big questions is can we afford it?

Seniors and Life Insurance

We all know many of the reasons we need life insurance for seniors. 

• Family protection
• Providing for a special need (adult) child
• Pension maximization
• Cash for estate taxes
• Final expenses
• Debt repayment, mortgage payment

And the list goes on.  But again, can we afford this insurance?

Senior Life Insurance Strategies

How an Independent Agent Can Help

Creative strategies can help you find more affordable life insurance.  Working with an independent life insurance agent specializing in life insurance for seniors gives you access to:

• quotes from more companies than you can find on the internet
• years of experience helping seniors get life insurance
• years of experience dealing with clients with health issues (probably similar to yours!)
• knowledge of which carriers look more favorably on health issues
• your agent may have access to an in house underwriter for additional assistance
• different strategies such as the ones discussed in the video to help you get the most affordable coverage.

The Bottom Line

Life insurance for seniors is an important purchase.  Protect your family in the best way possible with the help of an independent life insurance agent.  We work for you.

Photo credit: Stefan Erschwendner

The Best Life Insurance for Diabetics

If you have diabetes, you may be worried about the cost of life insurance for diabetics, or even if you can qualify. Well the good news is that if your diabetes is in control, it should not stop you from getting life insurance.

What Diabetics Need to Know About Ratings

Life insurance cost depends on the rating you get from the life insurance carrier. Here is a list of ratings from the best: 

• Preferred best
• Preferred
• Standard plus (only some carriers)
• Standard
• Table ratings, which are stated in numbers from 1(better) to 9 (worst rating and usually a decline for term insurance).  Usually only even number table ratings are used.

Normally the rating(s) life insurance for diabetics who have their disease under control, will be a standard to Table 2 rating.  We have had diabetic clients get insurance at a standard plus and even preferred rating.  Although that is unusual, it certainly is possible.

Can Diabetics Improve their Rating?

While diabetes is a serious disease, it is also a common one which 20% of older Americans develop. Moreover, it is a disease that you have a lot of control over.  Managing your disease gives you better health and a better life insurance rating. So improve your rating by: 

• Going to regular doctor's visits.
• Eating the right diet.
• Managing your blood sugar.
• Exercising.
• Taking your medications as prescribed.

How will the Insurance Company Know My Diabetes is Under Control?

When you apply for life insurance, the insurance company will set rates based on:

• The results of your A1c blood test, which shows your blood sugar levels over several months. 
• Your other lab results.
• Your compliance with doctor instructions for diet and medication.

Diabetics with good A1c results, such as less than 7.0, can often get a Standard or even a Standard-plus rating.

Does it Make a Difference Which Insurance Company you Choose?

Absolutely.  Insurance companies are not all the same in the way they handle applications. In considering life insurance for diabetics, you will see differences from one company to another.  You will want to know: 

• What is the best rating possible for a diabetic?
• How do premiums differ for the same rating from one company to another?
• Which companies underwriting guidelines are more favorable to diabetics?

How can you sort out these differences?

It isn't easy to do this on your own. That is why a person with diabetes should use an independent life insurance agent to help sort through the different company policies and guide you toward the one which is most likely to offer you the best rating.

The Bottom Line

Life insurance for diabetics is not something you should put off. Let an independent life insurance agent ease your mind by helping you get the life insurance you need to protect your family.

Photo Credit: Alexandre Hamada Possi

How to Find the Best Term Life Insurance Companies

Term life insurance offers the most affordable option for most people. Term life can be used to make sure your family has financial security. Furthermore, term can help you:

• Help you take the maximum retirement pension option
• Provide for your heirs
• Ensure there is money for your business to continue
• Provide cash for your estate taxes
• Provide for a special needs adult child
• Provide funds for a buy-sell business agreement

You depend on your life insurance to take care of you when you need it. Of course you want a company that is financially strong and will be there when your family or business needs it.  So which are the best term life insurance companies?

How Companies are Rated

Insurance companies are rated on their financial stability by A.M. Best and other 3rd party companies.  The best ratings are usually A++ or A+.  Companies will often post their ratings; however, the meaning of these ratings can be confusing to consumers.

Additionally, ratings change based on financial changes in a company.  It's not easy to keep up with the changes.  Financial ratings are important, but they are not the only criteria about what makes a company good. 

How Can a Consumer Determine which Company is Best?

Insurance companies are regularly making changing to policies and how they rate their applicants. What is good this week may not be the best next week. So it can be difficult for consumers to determine which are the best term life insurance companies for them. That is why working with an independent agent, who knows what is happening in the insurance world is often your best bet.

Another thing to consider when deciding which are the best term life insurance companies is your personal situation.  If you are a private pilot, many companies will charge you an arm and a leg.  But not all.  We know one that might not add any extra charge.  If you are a diabetic, some companies are more lenient than others.  So the best term insurance company for you is not necessarily the one that has the best financial rating (as long as they have enough financial strength and stability).

How Can an Independent Agent Help?

An independent agent works for you rather than for any particular company.  Find one you trust so you have someone to advise you. In addition, an independent agent:

• Works with many highly rated companies, not just one, so you have more choices
• Can help you understand the differences between companies and policies they offer
• Can help you evaluate your insurance needs and decide what term to choose as well as an appropriate death benefit to fit your budget
• Can guide you to the insurance company whose underwriting policies are most likely to give you the best rating based on your health, age, height/weight, and lifestyle
• Can assist you in applying to a new company quickly if your first application is not approved at the rating you and your agent expected. (Your agent brokerage should have access to your exam and medical records and be able to make them available to another company for a quick underwriting decision.)

The Bottom Line

There are many good term life insurance companies to choose from, but because of the frequent fluctuation inthe market, it is best to let an independent life insurance be your guide to the best one for you. Moreover, an independent agent can not only help you find the best term life insurance companies, but also the best type of policies for your particular situation.  Best of all, your independent agent will always be there to consult for any future life insurance needs.

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3 Low Cost Term Life Insurance Tips (Video)

When you go online to a quote engine, you are searching for low cost term life insurance quotes.  This is one way to get quotes.  But is it the best way to get your quotes? 

Running Your Own Quote Online

It's a good starting point if you are someone who likes to research things on your own.  You like to get the lay of the land before you start talking to someone.  Go ahead and run your quotes.  You may get lucky and get the best low cost term life insurance quote, but there's a good chance you won't. 

Here's Why This May Not Be Best

Here's what you don't know you don't know about getting low cost term life insurance quotes.  And we'll tell you the best way to go...just listen up!

The Three Tips

So now you know why going online to run a quote is a great start and why it's not the end all and be all.  You understand some of the factors that need to be taken into consideration.

And we'll say it again (and again if necessary)...we believe that your best options for low cost term life insurance lie with an independent agent.  There are many reasons why this is true, and you now know some!

The Bottom Line

There are numerous ways to get insurance quotes.  To get the best low cost term life insurance quotes use our three tips.  We make it easy.

Photo Credit: LollyKnit

Term Life Insurance Rates for Baby Boomers

To attract the massive Baby Boomer market, insurance carriers are competing on term life insurance rates. So while most insurance carriers offer rates within a fairly narrow range, there is price differentiation. An independent life insurance agent with experience working with Baby Boomers will know which carriers are offering the lowest rates for that demographic.

It's no surprise that carriers change rates periodically.  Sometimes they are lowered, and often they are raised.  For example, currently, Genworth Insurance Company is raising rates (about 2-3% on their 20 year term) and has suspended sales of their 30 year term policy.

Baby Boomers Flood the Market

According to the U.S. Census Bureau, approximately one in four Americans is a Baby Boomer. The Census Bureau defines a Baby Boomer as someone born between 1946 and 1964. The oldest of this group are just now entering traditional retirement years, while the youngest are nearing the prime of their earning power.

With today’s life expectancy, Baby Boomers will need life insurance for years to come. Even with grown children, Baby Boomers have numerous reasons to own life insurance, including:

• to pay off left-behind debt
• to provide money for a surviving spouse’s living expenses
• to pay funeral and burial costs
• to ensure a self-owned business or a partnership can continue to operate
• to allow for posthumous contributions to favorite charities
• to provide for a special needs child
• to maximize a pension
• to leave cash to pay estate taxes.

Given these needs and the size of the Boomer market, it’s not surprising that some insurance carriers have targeted Boomers with term life insurance rates designed to win their business.

Term Policies with Conversion Options Work for Most Boomers

Permanent life insurance policies have beneficial uses (e.g., estate planning), but for the majority of Baby Boomers, term life insurance will be sufficient, and term life insurance rates are much lower than permanent rates.

If you want to hold open the possibility of a permanent policy in case your needs change, you can buy term policies with conversion options that allow you to switch to a permanent policy at the same rating (adjusted for age) that you got for the term policy. However, the time periods and the policies for conversion vary widely, so Boomers should work with an independent agent that knows which carriers offer the best conversion options.

The Bottom Line

Baby Boomers constitute the largest group of people who need life insurance in America today, and carriers are fiercely competing on term life insurance rates to win Boomers’ business. If you belong to this generation, an independent agent that has extensive experience with the Boomer market will be able to direct you to the carriers that are currently offering the best deals for you.

Photo Credit: Kirby Urner