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Help! Why Have My Life Insurance Premiums Increased?

Life insurance is usually pretty inexpensive, especially if you buy it when you are younger and healthier. It’s also a worthwhile expense: having a policy will provide a financial safety net for your family. And, in general, you will know exactly how much you need to budget for, since most life insurance policies will remain the same price for the life of the policy. With that being said, though, the premiums of some policies will increase with time, which can come as a big surprise. If you’ve been surprised like this, or if you want to avoid being surprised like this, read on to find out why your life insurance premiums might go up.

illustration of a man with his hand on his head holding a long bill — *Your premiums can increase for multiple reasons. This is increasingly true for certain types of policies.*

Reasons Your Premiums Could Increase

When you purchase a life insurance policy, your premiums are usually set based on a variety of factors, including your health, age, lifestyle, and more. Most term and permanent life insurance policies have level premiums, which means the payments stay the same throughout the life of the policy. But there are situations in which your premiums can go up over time.

A few reasons this can happen include:

Your policy doesn’t have level premiums– Some policies, like increasing term life insurance policies, have benefits that increase over time – with these types of policies, premium rates increase over time, as well. Universal life insurance also has premiums that can go up or down over time.
You have decided to convert your policy– If you have a term life insurance policy that is ending and you have decided to convert it to a permanent life insurance policy, you can expect increased premiums rates. You are now older than you were when you purchased the policy, and your health has probably changed, which can affect your premium rates.
You’ve renewed your policy– The same is true if your term policy is coming to an end and you choose to renew the policy: your annual premiums will change based on your current age and health.

What To Do

If your life insurance premiums do go up, you should contact your insurance company so you can check if there has been an error, and so they can explain why your rates went up. If you’re unhappy with the rate increase, consider other options, including looking for an affordable new policy. There are many kinds of life insurance policies out there to choose from that offer different benefits and premiums rates.

The best way to get an accurate quote in the first place, and not be surprised by your actual premium rates, is to provide as much information as possible when comparing policies from different life insurance companies. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Life Insurance Myths For an Empty-Nester

The time has finally come: you and your spouse can enjoy having the house to yourselves, and it feels like you’re starting a new chapter of your life. It can be a bit sad seeing your children leave home, but you might also be happy that you don’t have the responsibilities you once had. But don’t throw all of your responsibilities out the window just yet! For example, you might be thinking that the time for life insurance has passed now that you’re an empty-nester and don’t have to worry about taking care of your children (as much), but that’s not necessarily true. So don’t let the following myths about empty-nesters and life insurance prevent you from purchasing a policy that will continue to protect your family.

illustration of grandparents with their children and grandchildren — *Even though your children are grown up. you can still be able to help them for years to come after you are gone.*

Myth 1: My children are grown and can support themselves now.

Ahh, the sweet moment you’ve been waiting for as a parent: watching your child go out in the world and support themselves. Like many empty-nesters, you might be thinking that now you no longer have to worry about supporting them, or leaving extra money for them when you are gone. However, if you were to pass away today, do you think your family would be able to pay for your funeral expenses? And don’t forget how hard it was to support yourself when you left your parents’ house – that’s no easy thing! It would be nice to be able to support your children, and your grandchildren, in the long run.

Myth 2: My mortgage is almost paid off so I don’t need life insurance for that.

One of the happiest moments of any adult’s life is the moment they pay off their mortgage! And if you are one of the lucky few, you might be thinking that you don’t have to worry about providing your spouse or family with life insurance benefits when you pass away. But there are still other expenses or even debts that will have to be paid off, which could be transferred to your spouse or children after your death. How will they be able to pay off these debts? Life insurance is a great way to cover any debts, as well as leave some extra money for your loved ones to survive on.

Myth 3: Life insurance will be too expensive now that I am older.

Life insurance rates indeed go up the older you get, and the less healthy you are. But that does not mean that you can’t find a very affordable plan, with the help of a life insurance agent. If you are a healthy non-smoker, you could get a $500,000 life insurance policy for only $130 a month, or less. The best way to find a great policy is to compare plans from different companies – there are so many different policies to choose from!

illustration of money and coins — *Even if you have enough money saved up. it could dwindle over time or if there was an emergency.*

Myth 4: I have enough money saved up to pay for funeral expenses and more.

If you have a substantial amount of money saved up, that’s great! But will it be enough for the unexpected? What if you live a long time and continue to use money from your savings? Or if there is an emergency and you have to take money from your savings?

Find Affordable Life Insurance

If you want to make sure that your children or grandchildren are taken care of when you are gone, whether they are adults or minors, you need to find the right policy for you AND know the rules surrounding minor beneficiaries.

The best way to find the right policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas on how to cut costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

Discussing Life Insurance With Your Children

As a parent, talking about life insurance with your children can be tough. The last thing that you want to talk about with your children is death: no parent or child wants to think about what their lives would be like without each other. But it is important to prepare them financially for the future and discuss your life insurance policy with them. “The talk” might be difficult, but being open and honest with your children about any preparations that need to be made, and making them aware of all your assets, will ensure that they are aware of your wishes, and ready when the time comes.

The Importance of The Talk

man hugginf a woman and child on her lap — *Talking with your children about life insurance will help them understand your wishes.*

According to a survey conducted by State Farm, only 38% of American parents are comfortable talking to their children about life insurance, even though talking about this subject is just as important as any other that teaches your children financial literacy. But while this subject might be a very uncomfortable one to talk about, it has to be done, especially if you are considering purchasing a life insurance policy, or already have one. Talking with them about life insurance will help them to understand your wishes regarding your funeral, and will also let them know that there will be money available to help cover your final expenses, as well as provide for them when you’re gone.

Remind them that your purpose in bringing up the subject is to make sure they know you want to take care of them as long as you possibly can, even after you’re gone. Approach the conversation with love and concern for their future, rather than centering it around death, and you can end up having a very productive talk about what they can expect financially after you’re gone.

Finding The Right Plan

If you want to make sure that your children or grandchildren are taken care of when you’re gone, whether they are adults or minors, you need to find the right policy for you AND know the rules surrounding minor beneficiaries.

The best way to find the right policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas of how to cut costs. We have listed some companies to work with that will be able to find you the most coverage for the least amount of money. Always check multiple sites to make sure you have bargaining power and to know the different advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

Contesting a Life Insurance Beneficiary

After the death of a loved one, there can often be a lot of paperwork to deal with while you are grieving. Dealing with your loved one’s insurance policy is often one of those things that need to be done, and there can sometimes be complications. For example, in some cases, a person named as a beneficiary in your loved one’s policy was no longer meant to be a beneficiary, but the policyholder never got the chance to change their policy. You should know that you can contest someone’s beneficiary status if you believe you have a valid claim (which means your position as a beneficiary can also be challenged), so it’s important to understand how to contest a beneficiary and how the dispute can affect life insurance payouts.

Why a Beneficiary Might Be Contested

There can be a few reasons why a life insurance beneficiary might be contested. Essentially, anyone who believes they have a valid claim to a life insurance policy can contest the original policyholder’s choice of beneficiary. The most common situations in which a life insurance beneficiary may be contested include:

A current spouse objects to a former spouse being named as the life insurance policy’s beneficiary
Adult children believe they should be named beneficiaries of a parent’s policy, or stepchildren who were never added to the policy believe they were left out in error
Someone believes the original beneficiary designation was made under duress or undue influence

The Process of Contesting A Beneficiary

Unfortunately, if a policyholder passes away without updating their policy, they leave the people who feel they should have been named as beneficiaries a long uphill legal battle. It can take a lot of money, time, and energy to contest a beneficiary, and the final decision will be made by a court, not the life insurance company. So, the whole process can end in you not getting any money, or losing a lot of the money you are rewarded (if you win) to court and lawyer’s fees.

Avoid the Hassle

The last thing that you would want is for your loved ones to have to have a court battle with the named beneficiaries of your policy because you never had the chance or forgot to change your policy. Ensure that your loved ones receive the financial support they need by reviewing your policy on a yearly basis, to make sure that everything is accurate.

Another thing that you can do is make sure there is enough coverage for your loved ones. To make sure you have enough coverage, you can add riders to your policy for additional coverage, or you can search for a new life insurance policy – you might find that you can get one that is better and more affordable.

If you need help reviewing your policy or deciding on a policy, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and see which is the right fit for you. To get you started, we have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Life Insurance Blood Tests and Alcohol Use

If you are considering purchasing life insurance, you might be aware that multiple factors go into determining your coverage and premium rates, including your health, driving record, and even your occupation, lifestyle, and hobbies. Your health is often the most important factor, and although not all life insurance companies require a medical exam, most of them, especially the ones that offer permanent or whole life insurance coverage, will require one. The medical exam will check your BMI, blood pressure, and the doctor will also do routine blood tests to check for certain issues that may affect your overall health, as well as check for signs of alcohol use. If you’ve opted for a permanent life insurance policy, it’s important to understand how blood tests work with the underwriting process, and how they affect your coverage.

Why Do Life Insurance Companies Require Medical Exams?

When life insurance companies decide to take you on as a customer, they also take on your risks, so they will need to know how much of a risk it is to cover you. They will want to know how healthy you are, and whether it is likely that they will need to provide coverage to you for a long time, or if they might only be providing coverage for a limited time because of your health conditions and lowered life expectancy. To determine this, insurers conduct a routine medical exam to determine your overall health, and will decide your premium rate based on your results.

The Importance of Blood Tests

The reason that you will have to undergo blood tests is that they are a very reliable way of determining your overall health and finding issues that can’t be seen with the naked eye. Blood tests can reveal genetic mutations, as well as underlying conditions, like high cholesterol, high blood sugar, liver and kidney problems, and even cancer.

Another thing to be aware of is that the blood tests you will be given will also reveal if your alcohol consumption is higher than average; even if you have simply consumed any alcohol before having your blood tested, your results could end up negatively affecting your premium rates. For example, your blood pressure will rise if you have consumed alcohol within the 12 hours before your appointment, and if you have been drinking heavily for a long period of time, you will be more likely to have health problems. In this case, if an insurer does approve you for a policy, you will have to pay a higher premium for your coverage.

To get the best possible results from your blood test, try not to consume any alcohol 48 hours before the exam, stay hydrated, and avoid caffeine. If you have a drinking problem, consider seeking help, which will not only benefit your health, but will also lower your life insurance rates.

If You Are Denied Life Insurance

Life insurance companies all rate the risk of different medical conditions in different ways. So if you are denied because of a medical condition, there might be another insurer that will provide you with coverage. Remember, too, that there are several different types of policies to choose from that will offer your family protection when you are gone. For example, if you get rejected for permanent life insurance, you could still apply for a different type of policy, such as term life insurance, simplified issue life insurance, or final expense life insurance. You will be accepted for simplified issue life insurance even if you have a pre-existing condition, because this type of coverage does not require a medical exam. The possibilities are endless when it comes to getting a life insurance policy, all you have to do is shop around and work with an agent.

Looking For A Policy?

Your family has financial obligations that will not go away when you’re gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

Is There a Life Insurance Race Gap?

It’s no secret that there is a wealth gap between African-Americans and Caucasians in America. In fact, the net worth of the average Caucasian family is about 10 times greater than the net worth of the average African American family. And the gap exists in all aspects of people’s financial lives, including when it comes to the amount of life insurance that each group has. This disparity is just as concerning as any other aspect of the racial wealth gap, because life insurance is a necessary and affordable way to protect the people who depend on you. After all, death doesn’t discriminate.

Is There Racial Disparity in Life Insurance Coverage?

Surprisingly, African Americans are more likely to have life insurance than Caucasians, but studies show that, on average, they only have a third of the coverage that their Caucasian counterparts have. One study conducted by industry group LIMRA shows that almost half (46%) of African American adults say they need more life insurance, compared with just 38% of Hispanics and 29% of Caucasians who say the same.

What’s Causing the Life Insurance Coverage Gap?

The life insurance coverage gap has a long history: after the Civil War, life insurance companies began classifying African-Americans who were former slaves as higher mortality risks, meaning they were charged more or were denied coverage altogether. This practice of classifying African Americans as high-risk continued until the 1960s, and was a part of years of discriminatory policies that reduced African Americans’ access to medical care, housing, education, and, yes, even life insurance.

Fortunately today, thanks to the Civil Rights Act of 1964, it is illegal to discriminate based on race when evaluating a life insurance application. The Civil Rights Act also put an end to any discriminatory practices that increased premiums for African American holders of life insurance policies.

Still today, though, African Americans are less likely to see life insurance as a way to protect their families’ financial futures, and more likely to see it as a way to deal with the cost of their mortality:

African American adults (31%) are more likely to associate life insurance with paying for burial costs than White (19%) and Hispanic adults (24%)
African Americans (29%) are also less likely than Caucasians (37%) to cite income replacement as a reason to buy life insurance.

Closing The Gap

The fact of the matter is most people, no matter their race, overestimate the cost of life insurance, and think that a policy is something they can’t fit into their budget. But that is simply not the case: there are many different policies to choose from that can start as low as $15 a month!

It is important that life insurance companies make it clear that policies are accessible for everyone, and that there are multiple types of policies to choose from, so anyone can find an affordable policy that provides the coverage their family needs.

The best way to find the best policy for you is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with affordable rates, and give you ideas on how to cut down on costs. We have listed some companies to work with that will be able to find you the most coverage for less. Always check multiple sites to make sure you have bargaining power and to know the advantages of each company. Make sure a hard time for your loved ones isn’t made harder by a financial burden, check life insurance rates today.

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