If you currently have a life insurance policy and are thinking about changing or replacing it, you should first weigh all the pros and cons of doing so. There might be several reasons why you are considering changing or replacing your policy, but depending on your situation it might not be a good idea. In addition, there are some rules and regulations that go along with replacing your life insurance, so make sure it’s the right move for you.
Life Insurance Replacement Rules
Each state has its own set of laws and regulations when it comes to replacing your life insurance policy. You can find out your specific state’s rules by going to the National Association of Insurance Commissioners’ website to make sure that you would be able to replace your current policy without any issues.
Why You Might Consider Life Insurance Replacement
There might be various reasons why you would want to replace your current life insurance policy with a new one. Some of these include:
Price- The cost of life insurance is a major reason to search for a new policy. Your policy might just be too expensive for you, or it might have too much coverage and you might want to lower the amount in order to save more money.
Life changes- Many changes could occur in your life that would make it necessary to find a different life insurance policy. You might have bought a home, got married, or expanded your family, and need to up your coverage. Or maybe you’re approaching retirement, so you might need less coverage than you did when you and your family were younger.
Health– If your health has changed, you might want to replace your current policy. For example, maybe you purchased your policy when you were not in the best of shape, but now have gotten in better shape and could get a better price.
Type of policy– You might have purchased a 10-year term life insurance policy, and now that it is coming to an end, you might need to renew it or search for a more permanent life insurance policy, or a universal life insurance policy.
Why You Should Keep Your Life Insurance
If you are considering replacing your current life insurance, be aware that there are a few reasons why you should reconsider and keep your current life insurance policy.
Contestable period– When you purchase a new life insurance policy, a new contestability period will begin. This means that for around two years after purchasing the policy, you will have a waiting period. During which the insurer can challenge paying out the death benefit.
First-year charges- You might be subjected to first-year expense charges when you replace a life insurance policy, which might include underwriting, agent commission, and the issuing of the new life insurance policy.
Worse health- A new life insurance policy could be more expensive if your health is not what it used to be or has worsened. This includes if you have gained weight, are taking any new medications, or any other situation regarding worsening health status.
You should consider shopping around and comparing policies from different life insurance companies. 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.
With so many different types of life insurance policies available, it can be quite confusing to figure out which particular policy is right for you. One type of insurance plan you should strongly consider is a whole life insurance policy. If you do decide to go with a whole life insurance policy you will have level premiums, guaranteed death benefits, and dividends.
Whole Life Insurance Dividends
Not all whole life insurance policies will provide life insurance dividends but it is something you can ask your agent about when shopping around for a whole life insurance policy. A life insurance dividend is a payout from the annual surpluses of the life insurance company. In a sense, it is a portion of the carrier’s profit that some whole life insurance policies provide to policyholders.
Popular Life Insurance Dividends
There are many different kinds of dividend options within life insurance companies and they vary on how you can use them.
Policy loan repayment- you can choose this option to pay the principal or interest of your policy loans.
Cash payment- you can choose to get your life insurance policy dividend as a cash payment, which is kind of similar to the dividends you would receive from stock. The life insurance company will pay your dividend at the beginning of the first or second policy year and will be treated as a tax-free return of premiums.
Paid-up additions- this is the additional life insurance coverage of the same type that are policyholder by, using the dividend. Your paid-up additions will also earn dividends.
Accumulate interest- You can opt to keep the dividends with the life insurance company to earn and accumulate interest over time. At any time you can withdraw cash from your dividend accumulation account, and if you were to die or want to surrender your policy, your policy will pay the face amount or the cash surrender value.
Reduce future premiums- you can apply your dividends to lessen or reduce future life insurance premiums.
Are The Dividends Taxable?
The dividends that you earn from any whole life insurance policy, if they are offered, are not taxed by the IRS. Life insurance dividends are not like traditional dividends from a mutual fund or stock so are not subjected to taxes
Your family has financial obligations that will not go away when you are 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 such a thing as too much life insurance? If you’re shopping for life insurance, one of the questions you might be asking yourself is, “How much life insurance do I need?” Well, the answer is that your coverage should meet your specific needs. But more is not necessarily better, since the higher the coverage amount you purchase, the higher your premiums will be. To choose the appropriate amount of life insurance coverage for you and your family, there has to be a balance between how much you want to spend and how much coverage you want. But if you’re thinking that your policy has more coverage than you need, you do have the option of reducing your coverage, which will allow you to also save on premiums.
How Much Life Insurance Do You Need?
When trying to decide on the amount of coverage that you need for your life insurance policy, remember that it depends on your specific situation. The amount of coverage you need will depend on your plans and goals for your future and the future of your family, and on how much money they need now and will need in the future.
How To Determine How Much You Need
To be more specific, to determine how much life insurance coverage you need, you’ll have to take into consideration two major factors:
Income replacement – Decide how many years of income you would like to replace for your family, then take that number and multiply it by your annual income.
What will need to be paid off – Add up all the debt that you currently have, including mortgages, credit card debt, bank loans, and any other debt. Once you’ve calculated that amount, add it to the income replacement amount.
Finally, to make sure you aren’t overpaying for a policy that is bigger than you need, subtract the current value of your estate from those two numbers. This will help you get a more accurate idea of how much your family will need in the event of your passing.
To give you a good baseline, many life insurance experts generally recommend that you multiply your annual salary by 10 and choose a policy of that size. That way you know that your family will be taken care of for at least a few years, and will have a replacement for your income to cover their debts and expenses.
The best way to find a great plan is by comparing plans from different life insurance companies.
Your family has financial obligations that will not go away when you are 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.
If you have a life insurance policy, you’ve taken an excellent step towards protecting your family’s financial future. And if you’ve taken another step in that direction by writing your will, it is important to understand how your life insurance policy will work with your will. Both will distribute money to your loved ones after you pass, but in different ways. You might be wondering if you should include your life insurance policy in your will, or if you can use your will to distribute your life insurance, so let’s take a look at what you need to know when you have both a life insurance policy and a will.
Is Life Insurance Included In A Will?
Your life insurance death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset.
A will is a legal document that lays out your final wishes and gives instructions for how you want your assets distributed after you pass away. This does not include assets that you own with other people, like a house, and it does not include your life insurance policy’s death benefit. Your death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset. This is because your life insurance payout is meant for your life insurance beneficiary once you die, and is only payable after your death in most cases, meaning it should not be included in your will.
The only time that your life insurance becomes part of your estate is if your named life insurance beneficiaries have predeceased you. In this case, the death benefit will be distributed according to your will and the beneficiaries named in it.
Does Your Life Insurance Need To Have The Same Beneficiary As Your Will?
The person/people named in your will and your life insurance beneficiary(ies) do not have to be the same people. For example, you can name your children as the beneficiaries of your life insurance policy, and at the same time, you can use your will to distribute assets to your spouse, or vice versa. You can also choose to make the beneficiary of both your life insurance and will the same person. Your will and life insurance policy allow you to have multiple beneficiaries, as well as primary and contingent beneficiaries. You can also change these beneficiaries at any point in time, if you need to.
Now that you are aware of the difference between the beneficiaries of a will and a life insurance policy, you know how these documents work differently, and how they can work together. Your life insurance policy will go to your specific beneficiary, and that does not necessarily have to be the same person you name as a beneficiary in your will.
If you’re on the lookout for a life insurance policy, there are many different kinds 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.
Your driving record may not seem like a big deal, but it can affect your life in certain ways. For example, if you have accumulated points on your license, the price of your car insurance will go up – but did you know that your driving record can also impact the price of your life insurance policy? One of the things that life insurance companies will look at when determining how much of a risk you are to insure is your driving record. If you seem like a high risk, your premiums will be more expensive, and some life insurance companies might deny you coverage altogether. On the other end of the spectrum, if you’re a great driver, you might be able to get lower rates.
Life Insurance & Your Driving Record
When you apply for a life insurance policy, life insurance companies will request a copy of your driving record, or your motor vehicle report (MVR). The report will most likely include your driving record from the last 5 years, but some reports can go back 10 years or more, depending on the severity of the violations on your record. Once they have this record, they will assess your risk based on your violations, but generally, they will not use speeding tickets from 5-10 years ago against you.
If you have a DUI on your record, you could get denied coverage, or have to pay high rates.
Having a DUI/DWI on your record is one of the biggest red flags for life insurance companies, mainly because being under the influence while driving can lead to an accident, resulting in your death or the death of others. But if you have a DUI or DWI on your record and are wondering if it will be used against you when buying a life insurance plan, the answer is it actually depends on when you were charged with the violation. If you have had a DUI/DWI in the last 5 years, you will either be denied coverage or you will have to pay more in premiums. But it really depends on the life insurance company, since each offers different plans, coverage, and rate options, and each assesses risk differently. That’s why it’s so important to compare different plans from different life insurance companies!
What If There Are Minor Violations On Your Record?
DUIs are taken very seriously by life insurance companies, but what about other less serious marks on your record? Speeding tickets, minor accidents, and other minor infractions might not be held against you as much as other more major violations when purchasing life insurance. Once again, when it comes to rates and how each life insurance company evaluates driving records, it typically depends on the specific company.
If you want to get ahead of the game when applying for a policy, you can request a motor vehicle report from your state’s DMV, review it, and then fill out your life insurance application truthfully. If you don’t include this information, the life insurance company could end up denying your application or your family’s claim and death benefits after you pass away.
You Have Options
If worst comes to worst and you are denied life insurance because of your driving record, you do have other options. You can opt for a no medical exam life insurance policy: with one of these policies, you will not be asked medical questions and the insurance company will not review your driving record. These plans will have higher rates and lower coverage amounts, but you will be able to provide your family with life insurance even if you have no other option for traditional life insurance policies. Also, don’t give up: if you have been denied coverage, you can always apply for life insurance again after some time has passed.
Even if you don’t have a stellar driving record, all hope is not lost. You can still get a great life insurance policy, all you need to do is compare plans from different life insurance companies. The best way to find the right life insurance policy from a company with great ratings 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.
As you head into a new chapter in your life, and look forward to retirement, you’ll have a lot to think about. For example, you’ll need to switch from private health insurance to Medicare, and figure out how to live on a fixed income; with all of this going on, you might overlook the importance of having life insurance at this stage in your life. Life insurance for people 65 and older is important, because it provides you additional coverage for those “what ifs” in life – but you might be thinking that it’s not possible to find an affordable life insurance policy at your age, or that you might not be able to buy one at all. Rest assured that is not the case: there are options available to you!
How Much Life Insurance Do You Need?
Before purchasing life insurance, you need to figure out how much coverage you will need.
As we said, having a life insurance policy is important for older adults, but how much coverage do you actually need at this stage in your life? The amount of life insurance that you need will depend on what you want covered in the event of your passing: for example, if you still have mortgage payments or other debts that need to be paid off, you need to take those into consideration when choosing your coverage.
To work out exactly how much coverage you’ll need, think about your current income, as well as what your final expenses are likely to be, as well as possible nursing home costs that will not be covered by Medicare, and any other unpaid medical or hospital bills. Keep in mind when doing these calculations that the average funeral costs around $10,000 to $15,000 depending on where you live.
Life insurance rates are based on your age, health, and the amount of coverage you need. The older you are, the more expensive life insurance premiums generally are; however, that doesn’t mean that there are not affordable options out there for people over 65.
Term life insurance policies are a great option because you get to choose how many years you would like to be insured for: you can generally choose a policy that covers you for anywhere from 5-30 years. These policies are also very affordable, and provide higher benefit amounts for older adults than no medical exam policies do. These policies are best for people who are in relatively good health, and want to cover big expenses for a few years.
This type of insurance is best for people who are in good health and want lifelong protection for big expenses. The only downside to permanent life insurance policies is that they are more expensive than any other types of life insurance. Just like with term life insurance policies, you will have to undergo a medical exam to qualify for coverage, and if you are not in great health, you could be denied or charged more in premiums.
If you just want enough money to cover your funeral expenses (which can be $10,000 or more), a final expense policy, or burial insurance, is your best option. This type of policy covers the expenses associated with your death, including funeral and burial costs, as well as any medical bills and other debts. You have the option to choose policy coverage anywhere from $5,000 to $50,000, depending on your needs, and you will not need to undergo a medical exam to be approved for a policy.
If you are not in great health or have some serious medical conditions, you have the option of choosing a no medical exam policy. You will not have to undergo a medical exam to be approved; some companies will still require you to complete a short medical questionnaire, while others will have a no-questions-asked policy. The only downside to no medical exam policies is that they are generally more expensive, because your life insurance company will be taking you on as a risk without knowing your health status.
How To Find An Affordable Policy
The best way to find an affordable life insurance policy is to research and compare life insurance policies.
As previously mentioned, your rates will be determined based on your health and your age, which means a life insurance policy will be more expensive for you now as an older adult than it would be if you were younger and healthier. However, you can lower your rates by living a healthy lifestyle, including keeping any medical conditions under control with medication or exercise and changes to your diet. The same goes for if you are overweight: if you lose the extra pounds before you apply for your policy, you could save almost 50% on your premiums.
If you’re looking for the lowest rates possible, the best way to find them is by comparing life insurance policies from different life insurance companies. Each life insurance company has different criteria for their applicants, and one may consider a health condition more serious than another. To make comparison shopping much easier, and to find the right life insurance policy for you and your specific needs, work 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.
