life insurance policies Archives - Page 7 of 8

Understanding Life Insurance Health Ratings

Life insurance is a great asset for your family. But it’s only natural that one of your main concerns when searching for a policy might be “how much is it going to cost me?” The answer to that question will actually depend partly on what is known as your health rating: life insurance companies will determine your health rating by gathering facts about your health history, age, family history, and other factors. Once they do this, they will put you in a category, which will determine how much you will pay for your life insurance policy. Understanding how these ratings work, and what they mean for your policy, will help you figure out how much you can expect to pay, and which type of policy is best for your needs and budget.

What Are Life Insurance Health Ratings?

person in a suit holding a heart with a heartbeat in it — *Companies ask questions about your health in order to rate how much of a risk you are to cover.*

When you apply for a life insurance policy, life insurance companies will take into consideration a whole host of factors when determining your premium price, including your driving record, the results of a medical exam, and even your criminal record. These factors, as well as your health and family health history, will determine your health rating.

Why do life insurance companies use health ratings? Well, they want to know how much of a risk you are to insure before they approve you for a policy, and that means knowing how healthy you are and what your anticipated life expectancy is. If you are in poor physical condition and likely to pass away sooner due to health conditions, such as cancer, you are a high risk for them to cover. On the other hand, if you are healthy, you are a lower risk and can get a lot of coverage for lower rates.

Types Of Life Insurance Health Ratings

Health ratings range from low to high. If you are not healthy, you will have a lower rating, and if you are in great condition, you will have a higher rating; the higher your rating, the lower your premiums will be. Life insurance companies generally have two sets of ratings: regular ratings, and tobacco-user ratings.

Non-Smoker Regular Ratings

Premier/Premium/Preferred Plus or Preferred Best– This is the best type of rating you can get. If you are in excellent health, are not taking medications, and are a healthy weight, you can qualify for this rating class, and will have the lowest premium rates.

Preferred– If you are in great health, but have some health issues, such as slightly higher blood pressure or cholesterol that is above average, but your issues are controlled with medication, and you are a healthy weight, you can qualify for this rating class. You will also qualify for this rating if your family has a history of cancer, or other diseases, but you are otherwise in excellent health.

Standard Plus– You will qualify for this rating category if you have health issues that are more serious than those allowed with preferred ratings, such as high blood pressure or if you are slightly overweight, but are otherwise in very good health and have no family history of diseases.

Standard– If you are in average health, you will qualify for this rating. Under this rating, you can have health issues like being significantly overweight, high blood pressure or cholesterol, and if you need to take medications regularly. You will also be in this category if you have a family history of cancer or other serious diseases.

Smoker Ratings

Preferred Smoker– If you are a smoker, but are in relatively good health and would otherwise qualify for the preferred non-smoker category, you will probably be placed in this rating category.
Standard Smoker– This rating is given to those who smoke and have other risk factors or illnesses that are controlled by medications.

Changing Your Health Ratings

The good news is that once you’ve been given a health rating and purchased your policy, your rating can not go any lower even if your health deteriorates. This is why it’s important to purchase a life insurance policy when you are younger and healthier!

On the other hand, you can improve your rating even after you’ve purchased your policy if you address some of your health issues, and do things like bring your high blood pressure or cholesterol down, or quit smoking. If you do these things, you can ask your life insurance company to reconsider your rating; you will then have to undergo another medical exam. For example, if you inform your insurance company that you have been tobacco-free for at least 12 months, they could upgrade your rating, and offer you lower premiums, if you pass a medical exam and give them a clean urine sample.

You should also consider dealing with any health issues before applying for life insurance so you can get a better rating from the start.

If you’re wondering how much you might pay for a life insurance policy, the best thing to do is to start comparing plans from different companies. Not all insurance companies follow the same underwriting guidelines, and some might consider a health condition less serious than another does, so rates can vary from insurance company to insurance company. That means finding the best policy for you can be tough, but you can do it, with some help from an agent who specializes in life insurance, and who can help you compare plans.

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.

What is the Accelerated Death Benefit?

A life insurance policy is a great way to make sure your family is financially protected after you’re gone, but what if you become ill and your family needs financial help while you are still alive? Luckily there is a way to get benefits from your life insurance while you are alive. When looking for a policy consider adding an accelerated death benefit rider to your policy, which will provide you with money to be used for medical expenses if you become seriously, or terminally, ill. Do you have a family history of getting sick in your later years, do you just want to be cautious, or do you just want to be cautious? No matter what the reason, before you purchase a life insurance policy, find out how an accelerated death benefit rider can benefit you, and how it works.

What Is an Accelerated Death Benefit Rider?

sick person in a wheelchair being pushed by a young female — *An accelerated death benefit rider is beneficial to those who are terminally ill, and need help paying their medical bills.*

This type of rider allows you, the policyholder, to receive a portion of your death benefits before you pass away if you become terminally ill. It is a standard feature on most term life insurance policies; if it is not included in your life insurance policy, you have the option to add on this rider for an additional monthly premium fee. Generally this rider is meant to help with medical expenses, but you can use the money for anything you choose.

How Does an Accelerated Death Benefit Rider Work?

If you have an accelerated death benefit rider, most insurance companies will pay out if the insured is diagnosed with a terminal illness, and is expected to live no more than 1-2 years past their diagnosis. Every insurance company has guidelines on how much they will pay out on an accelerated death benefit rider; some will pay anywhere from 50-75% of your policy death benefit, and some will charge a one-time processing fee, usually $150. It is best to compare policies from different life insurance companies to determine which policy will provide the coverage amount you think you might need.

It is important to note that the benefits you receive for your medical expenses will be deducted from the death benefit your beneficiary will receive after you pass away.

Qualifying For An Accelerated Death Benefit

Accelerated death benefits are best for people with shortened life expectancies, or for those who have major medical bills due to an illness. The rider is triggered under the following medical circumstances:

Terminal illness– This is the most common reason to make a claim on an accelerated death benefit rider. To receive your benefit, you will need to provide certification from your doctor or a medical professional proving that you are terminally ill and have a life expectancy of 12-24 months.
Critical illness– You can also use this rider if you are diagnosed with a condition that will leave you with a shortened life expectancy, including cancer, heart attack, stroke, kidney failure, major organ transplant, or paralysis.
Chronic condition– Any condition that prevents you from performing 2 of the 6 daily activities for living (eating, bathing, toileting, continence, getting dressed, and mobility) will also allow you to make a claim.
Long-term care– If you must be permanently confined to a nursing home, hospice care, or an assisted living facility, you can use your benefits.

An accelerated death benefit rider will provide you with extra money to help with large medical bills that stem from a terminal or critical illness. Claiming on this rider should not be confused with borrowing cash value from a whole life or universal life insurance policy, but those permanent policies will likely also have the accelerated death benefit rider built in.

To learn more about accelerated death benefits and any other riders that you think could be beneficial to you, consider using online tools to see what is available, as well as working with an agent who will help you compare plans and decide 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.

The 4 Types Of No Exam Life Insurance

If you’re looking for a life insurance policy, but have pre-existing medical conditions, you might be worried about undergoing a medical exam to get coverage: your medical status could mean that you will have to pay more, or you could even get denied for a policy altogether. Fortunately, though, even if you have health conditions, you have options! There are four types of life insurance policies that do not require medical exams, meaning you’ll still be able to provide financial protection to your family no matter your age or health history. Comparing these different policies will help you better determine which no medical exam life insurance policy is best for your family’s needs.

1. Guaranteed Issue Life Insurance

stamp of the word approved in red with a red circle around — *You will be approved no matter your health or age with a guaranteed issue life insurance policy.*

The first type of life insurance that does not require a medical exam is guaranteed issue life insurance. With one of these policies, you will not be rejected for any health-related reason; you will simply need to answer a few questions about your health to determine your policy rate, and then you can receive coverage in as little as a day. The death benefit for this policy can be anywhere from $5,000 to $25,000.

The drawback to guaranteed issue life insurance? Premiums will be higher than those of other life insurance policies; your insurance company will not have very much information about your health status, so they will be taking on a higher risk by insuring you. In addition, before your family can receive the policy’s death benefit, there is a 2 year waiting period, which means if you pass away during the first 2 years that your policy is active, your beneficiary will only receive a portion of the death benefit. This plan is best for those who are looking for quick, easy coverage for their family.

2. Simplified Issue Life Insurance

This is a type of term life insurance that has been increasing in popularity over the last few years. These policies last for a certain time period (or term) – usually 10, 20, or 30 years, and are a step up from guaranteed issue life policies; they are more expensive than traditional life insurance policies, but cheaper than guaranteed issue policies, but coverage is often limited. When you apply for simplified issue life insurance, you will be asked detailed medical questions and will undergo a background check, but you will not have to undergo a medical exam.

These policies offer coverage anywhere from $25,000 to $200,000, depending on the results of your evaluation. Simplified issue life insurance is best if you are looking for convenience, quick approval, and coverage if you have moderate health issues.

3. Graded Death Benefit Life Insurance

This kind of insurance is similar to guaranteed issue life insurance, with some slight differences. You will have to answer some health questions, with the number of questions depending on the insurance carrier; because there might be more health-related questions, these policies are slightly less expensive than guaranteed issue life insurance. These policies offer coverage up to $50,000.One of the major differences between graded death benefit policies and other types of policies is that the death benefits are paid out in percentages; after each year of having an active policy, your beneficiary will receive a higher portion of your death benefit:

Death in year 1- 25% of death benefit paid
Death in year 2- 50% of death benefit paid
Death in year 3 or above- 100% of the death benefit paid.

4. Final Expense Life Insurance

This kind of policy is also known as burial insurance; coverage is designed to cover end-of-life expenses, including burial costs, funeral ceremony costs, final medical bills, and any small debts. Even if you don’t have any other type of life insurance, you should consider having this policy: the average cost of a funeral is around $10,000, which is a lot of money for your family to come up with, especially if they are not prepared.

Final expense policies offer coverage from as low as $2,000 up to $50,000. The great thing about these policies is that your premiums will not increase, and your death benefit will remain the same throughout your life. This policy is a good choice for people who have some health issues and need a smaller amount of coverage to help with costs related to their passing.

There are options for life insurance that allow you to get a policy without having to undergo a medical exam – this means that, no matter what health conditions you have, you will still be able to get life insurance coverage. If you’re interested in one of the policies above, and you need help 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.

5 Types Of Term Life Insurance Policies

Life insurance is not one-size-fits-all, so insurance companies offer many different types of life insurance policies. This means you have lots of options, but it also means you’ll need to do some research to figure out which type of policy is right for you. One popular type of policy is term life insurance, because it offers a lot of coverage for a low premium: term life insurance premiums can be around $30-$40 per month for a 30-year, $500,000 policy as long as you’re young and healthy.

What makes these policies different from other types of life insurance is that, with term life, you choose how long you want your policy to cover you for, which can be anywhere from 5 to 30 years. This makes term life insurance perfect for families who have major expenses, such as a mortgage, other loan debts, or car payments: these policies will provide coverage while you’re paying off those debts, as long as you keep paying your premiums. If you’re interested in a policy like this, you’ll need to know the 6 different types of term life policies, and consider which is best for your family.

1. Guaranteed Level Term Life Insurance

illustration of an open padlock with an arrow pointing down to lock it — *Guaranteed level term life insurance will lock in rates throughout the whole policy.*

This is the most common type of term life insurance. It’s a simple, solid choice: with this type of policy, your premiums will never go up during the life of the policy (typically 10, 20, or 30 years), and your death benefits will never change. Most policies have a renewal clause, but you are not guaranteed the ability to renew the policy – it depends on the wording of the policy, so you’ll need to speak to an agent and make sure the policy is renewable if that’s an important feature for you.

2. Return Of Premium Term Life Insurance

With some term life policies, no benefits are paid out if the insured lives past the term of the policy, but with return of premium term life, if the insured lives past the term, the premiums that have been paid over the years are returned. For example, if you have a 20-year return of premium policy and survive the policy, you will get back all of the premiums you paid at the end of the 20 years, as long as you kept up with your premium payments throughout that time. These policies typically have 15, 20, or 30 years terms, and are generally a little more expensive than other term life policies, because you or your beneficiaries will receive some sort of payout no matter what.

3. Annual Renewable Term Life Insurance

This is a short-term life insurance policy that can be renewed each year for a specific period of time. It is important to note that every time you renew the policy, the premium will go up, and will increase even more after you have hit the 20 or 30-year mark.

4. Modified Term Life Insurance

Premiums for these types of term life insurance policies change over time, usually in 5 or 10-year intervals. For example, if you start out paying $10/month for your policy, the premiums might increase to $17/month in 5 years, and so on. If you don’t have a lot of money in your budget for life insurance right now, but think you will have more money for a policy in the future, this type of policy might be the right choice for you; you’ll be able to protect your family for a low price right now, and can plan for the future rate increases.

5. Decreasing Term Life Insurance

With these policies, your premium rates will stay the same throughout the life of the policy, but the longer you have the policy, the less your death benefit will be. Policies can last anywhere from 5 to 30 years, and each year that you have the policy, your coverage will decrease by a certain percentage of the original payout, typically 4-5%, depending on the insurer. These policies are cheaper than permanent life insurance policies with similar coverage, so if you’re looking for a good price on life insurance, and think that you will have fewer debts in the future or will be more financially stable, this plan might be perfect for you.

Which Is Best For You?

One thing is certain: you need life insurance to protect your family financially and prevent them from struggling in your absence. But there isn’t one policy that is right for everyone, so you’ll have to consider how much debt you have, how much debt you will have in the future, as well as how financially stable you are now and expect to be in the future. All of this, on top of researching each type of policy, can seem like a lot, so your best bet is to use online tools and work with an agent who can help you compare different policies from different insurance companies. 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.

7 Common Life Insurance Riders

Choosing a life insurance policy can be challenging, especially considering that basic life insurance policies sometimes don’t include the coverage you need. But the good news is that you often have the option to add one or more riders, or additional benefits, to your policy to customize it to your life and specific needs. For example, you can choose to add a disability income rider to your policy, which will help you financially in the event that you become disabled. This is just one example of a rider, but there are many different kinds that you can add on to your policy! Every policy is different, and every insurer will offer different riders, but knowing some of the most common life insurance riders can help you determine what kind of extra coverage you might need.

1. Guaranteed Insurability Rider

These riders, which are available on certain life insurance policies (like permanent life and term life), generally allow you the option to purchase extra coverage for your policy every 3 to 5 years, or even after a major life event, like getting married or having a child. The great thing about a guaranteed insurability rider? You can increase your coverage without undergoing another medical exam, so this rider is perfect for those who think their health might deteriorate in the future. It’s also a good choice if you’re currently on a tight budget, but want the option to easily increase your coverage in the future.

2. Accelerated Death Benefit Rider

Also known as living benefits, this rider will pay a portion of your death benefit while you are still alive if you are diagnosed with a terminal illness or a chronic illness that affects your daily life, or if you experience a critical illness such as a serious heart attack. This rider is available on permanent and term life insurance policies, and can help ease the financial burden of looking after someone who is chronically ill, or of end-of-life care.

caucasian man with crutches shaking a woman's hand — *If you lose your income due to an injury at work, a waiver of premium rider would exempt you from paying your policy premiums.*

3. Waiver of Premium Rider

Losing your income if you become disabled and unable to work would be a major strain on your family, especially if you are the main breadwinner in your family, but a waiver of premium rider would exempt you from paying your policy premiums until you could work again, so you wouldn’t have to worry about losing your life insurance. It applies if you are critically ill, seriously injured, or disabled, and if you are permanently disabled, you will pay for premiums by withdrawing from your death benefit. Before adding this rider, you will need to go over your terms and conditions carefully, because the term “totally disabled” differs from one insurance company to another.

4. Accidental Death Rider

An accidental death rider, also known as a double indemnity rider, will pay out two to three times the amount of your original policy to your family in the event that you pass away after a qualifying accident. Qualifying accidents do not include illegal activities and voluntary participation in dangerous activities. These riders can be added to term and permanent life insurance policies, and are especially beneficial if you have a hazardous job or are at risk of an accident at work.

5. Term Conversion Rider

This rider will allow you to convert your term life insurance policy into a whole life insurance policy without having to worry about going through the underwriting process, which could raise your rates if your health status changes. With a term conversion rider, you can bypass the underwriting process when converting your term life insurance policy into whole life insurance.

6. Child Rider

silhouette of a young girl in a wheelchair — *You can add a child rider to help pay for medical expenses and funeral costs in the unfortunate event your child passes.*

You can get life insurance for your children without a separate policy by adding a children’s term rider to your policy. In the tragic event that your child passes (until a certain age), this rider will pay a death benefit to help cover funeral costs or medical bills.

7. Long-Term Care Rider

A long-term care rider allows you to receive monthly payments if you become disabled or develop an illness that requires long-term care. This type of rider acts in a way as long-term care insurance, offsetting the expense of a nursing home or other type of long-term care.

One thing to be aware of when considering adding riders to your life insurance policy is that you cannot add one to a policy that is already active, so you need to decide what is best for you before purchasing a life insurance policy. If you are interested in buying a plan with additional riders, or switching plans to add any riders you think will be beneficial to you, 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.

Before Getting Married, Discuss Finances & Life Insurance!

Congrats on your engagement! You’re probably busy planning and making arrangements for the big day, but during this fun (and stressful!) time, don’t forget that there is something very important you need to discuss before getting married and sharing your life together: finances. Before making the commitment to forever, you should be clear about what debts and assets you have; once you’ve done this, there’s one more very important thing to talk about, and that’s life insurance. We get it, it’s not the most romantic subject to talk about before tying the knot, but you definitely need to discuss how much life insurance you’ll need to ensure your family’s future financial stability. To make things easier, consider the following so you can figure out what kind of life insurance you’ll both need.

Debts You’re Bringing To The Marriage

illustration of a woman holding a large bag with a money symbol on her shoulders — *Before getting married, it is important to discuss any debts, and other finances you have with your fiancé.*

You’d probably agree that being open and honest with your partner is very important, right? Well, that includes being open with your soon-to-be spouse about any key financial information; in fact, roughly 42% of couples say transparency about finances is key to a healthy relationship. This is especially true when it comes to any debts that you will be bringing into the marriage, including credit card debt, student loans, or car payments.

If you both have an understanding of what debt you’ll be taking on before getting into the marriage, you’ll be better equipped to come up with a plan to tackle that debt; you’ll also know how much life insurance coverage you’ll both need to keep you financially protected in the future. Remember, if one of you were to pass away, the other could be responsible for some of those debts, so take them into consideration when choosing your policy. You will want to make sure that in the event of your passing, you can still help cover these debts and provide enough for other expenses.

Are You Planning On Having Children?

Do you want to have children someday? Does your partner? If the answer is yes, a lot of other questions will follow, like: Will you be buying a house one day as your family grows? Would you be able to continue taking care of your children on your own if your spouse passed away? Do you plan on helping your children with college expenses? You will need to discuss these questions and figure out how much life insurance coverage will be enough to cover any or all of the scenarios raised above.

Evaluate Your Disability Insurance

blue and white disability sign — *If your job does not cover disability in case you get injured and unable to work, you can get a disability rider with life insurance.*

In the event that you or your spouse got hurt or disabled, would the disability insurance offered through your job cover your bills? Odds are it would not; in fact, more than half of working Americans could barely afford their bills past the first month of being unable to work. You will both want to be financially protected if the unexpected happens and you are no longer able to provide an income; life insurance disability riders can help you or your spouse keep paying the bills by covering any lost income.

What Kind Of Life Insurance Policy Should You Get?

You have options when choosing a life insurance policy/policies to cover your new family. One thing to consider is whether you plan on having your own life insurance policies or a joint life insurance policy; joint life insurance policies cover both of you, and are generally less expensive than purchasing two policies. If you decide on a joint policy, you have two options: a first-to-die policy, which provides benefits to your spouse after one of you dies, and a second-to-die policy, which pays out benefits to your family after you both have passed. Be aware that after the first-to-die policy’s benefits are paid out, the policy terminates, meaning the surviving spouse would have to get additional coverage if they want to provide benefits for the rest of your family after they pass.

Individual life insurance policies might be a better fit if you want guaranteed protection for each individual; you might also be able to get higher payout benefits when getting your own life insurance policies. The best way to determine which is the best route is to go over your finances and compare plans. You might find that a term life policy is better for your needs, while your spouse might decide on a permanent life policy. Whatever you both choose, it is important to have life insurance for the unexpected, so that neither of you is left struggling.

Talking about your finances before getting married might not seem fun when you are in love and enjoying the good times, but it is necessary, and avoiding the subject will be detrimental to your relationship in the long run. You need to know how much debt you each have and what your future plans are for taking on more debt, so you can figure out exactly how much life insurance coverage you’ll need to protect your family now and in the future. After having the talk, the next step is determining which life insurance policy will best fit your finances and needs; the best way to do this 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.

Tag: life insurance policies