life insurance policies Archives - Page 2 of 8

Buying Life Insurance for Your Parents

If you have aging parents, you know the fear of something happening to them, and you want to make sure they are taken care of. And, as difficult as it is to think about, you also want to make sure that you know what their wishes are for the ends of their lives, and that you can afford to pay for exactly what they would prefer. A life insurance policy will cover their final expenses, pay for their funeral, and make sure that you do not inherit any debt that they leave behind. The sad reality is that many older adults don’t have enough savings to cover expenses, but it might be a comfort for you to know that you can purchase a life insurance policy on your parents, with some limitations.

Why Get Life Insurance For Your Parents

There are many reasons to consider buying a life insurance policy for your parents, including if you:

Are paying for your parent’s care as they age
Want to cover health or other expenses now
Want to make sure their funeral expenses are covered
Will have to take on some of their debts

You can opt to purchase a permanent life insurance policy; with this type of policy, you can borrow from the cash value that accrues to pay for any medical or living expenses. Or you can go the term life insurance route to cover only the amount of time you think the policy will be beneficial and needed.

How To Buy Life Insurance For Your Parents

As we stated earlier, it is possible to purchase life insurance for your parents, but you must get their permission to do so first. You can include asking for this consent in a conversation about their wishes for their care as they age, and their wishes for their funeral arrangements. Note that they must be legally competent to sign the paperwork for the policy, and you will also need to show insurable interest, which means you must show that their death will have a financial impact on you.

After you have gotten your parent’s consent, you will have to select a policy, coverage amount, and assign a beneficiary for your parent’s life insurance policy.

Need Help?

Once you have decided to purchase a life insurance policy for your parents and you get their consent, don’t delay in choosing your policy. Remember that age plays a role in determining life insurance rates, so the sooner you buy, the better. If you’re not sure which policy is best for your parents, 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.

How To Fit Life Insurance Into Your Budget

Many people have a misconception that life insurance is unnecessary, or that it’s too expensive even if they did want to buy it. But neither of those things are true: life insurance provides your family with an important financial safety net in case of the unexpected, and it can be surprisingly affordable.

You don’t have to worry about being able to afford life insurance because there are many types of policies, meaning there is one to fit almost any budget. If you are considering purchasing a life insurance policy for your family, we can help you figure out exactly how to fit it into your budget, although it shouldn’t be too difficult, since life insurance can cost as little as $30 a month!

Is Life Insurance Possible On a Budget?

wrench with some coins in it next to a calculator — *Many people think that life insurance is expensive, but you can get an affordable plan, even on a budget.*

Many people overestimate the cost of life insurance, but you should know that there is a policy out there for everyone, and that many policies are much more affordable than you think. According to a study from 2020, 65% of people did not buy life insurance that year because they thought that it would be too expensive. Not only did they think a policy would be too expensive, but they also overestimated the cost to be 3 to 5 times the actual amount.

Just consider this example rate: a woman in her 30s can buy a life insurance policy with $300,000 in coverage or more for as little as $15 to $30 a month. It’s important to note, though, that multiple factors go into determining an individual’s policy rate, including their health, age, etc.

How To Fit Life Insurance Into Your Budget

If you want to start budgeting for a life insurance policy, you should start by tracking your spending. One way you can do this is by keeping a spending journal. Write down how much you spend every month, including in your list expenses like rent or mortgage payments, car insurance, groceries, utility bills, credit card bills, and any extras.

Once you’ve done this, if you are finding it hard to fit the premiums for your life insurance policy into your monthly budget, you can look at your journal for ways to cut any unnecessary spending. This can include little things that can add up, like daily coffee runs and online impulse buys. Making cuts can be tough, remember that life insurance can protect your family in the long run, while online shopping just takes away from what you could be leaving for your family.

paper with graphs and calculator and files — *After seeing that you can find an affordable life insurance policy, then the next step is to decide how much coverage you need.*

After determining how much money you can spend on a monthly life insurance premium, the next step is to determine how much coverage you need. If you spend a little time comparing life insurance policies from different life insurance companies. you should be able to find a great policy for a price that works for you.

And if price is the biggest issue for you, you can consider a cheaper life insurance policy, such as a term life insurance policy. Term life insurance can be cheaper than permanent life insurance, because term life covers you for a set length of time, usually anywhere from 10 to 30 years, as opposed to covering you for your whole life. You can choose the length of time that you would like to be covered for, and will pay one low fixed premium for the length of the term.

Need Help?

You should know that life insurance 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 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.

What is Spouse Life Insurance?

Purchasing a life insurance policy is a great decision when you have a growing family, but you have to remember that your life insurance policy only covers you. Your family will not receive a death benefit if your spouse dies unless they have their own life insurance policy. But what if your spouse does not have a policy? Is it possible for you to take out a life insurance policy on your spouse?

What Is Spouse Life Insurance?

Spouse life insurance is a type of policy that covers your spouse or partner, leaving a death benefit for you and your family if they die. A partner can purchase the policy on their loved one, including a husband, wife, common-law spouse, or domestic partner. This type of life insurance falls into the category of dependent life insurance, which generally provides less coverage than standard policies.

How Does Spouse Life Insurance Work?

If you decide to take out a life insurance policy on your spouse, you will still have to go through the underwriting process – but only if you choose a permanent or term life insurance policy that requires you to do so. Your life insurance company will have to verify that your spouse is eligible to be insured and assess how much of a risk they are so that they can determine their coverage amount and premium rate. Once you have provided all of the required information, your insurer will offer coverage if your partner meets their requirements.

Reasons To Consider Buying Life Insurance On Your Spouse

If you are conflicted about whether you should purchase a spouse life insurance policy, consider the following reasons why it might be a good idea:

Spouse life insurance can replace their income- If your spouse is the breadwinner of the family or head of the house, life insurance is very important to have, so that your family would not have to struggle if your partner were to pass away. Their income probably covers many expenses, including mortgage payments, and you don’t want to lose your house or struggle to pay any other household bills.
You have debt– If you have shared debt or loans, you also share the responsibility of repaying them, even if your partner passes away.
You’ll need help running the house– If your spouse takes care of the household chores, including taking care of the kids, cooking, cleaning, and laundry, and they pass away, you might need to pay someone to help with all of these things, and life insurance benefits can help with this.

Can You Take a Policy Out On Your Spouse Without Their Knowledge?

white question mark in a green circle — *You cannot take out a life insurance policy on your spouse without their consent.*

Both partners in a family need to be covered by life insurance in case the unexpected happens, since each partner has a role and adds value to the household in different ways. But purchasing a policy to cover your partner is something you need to discuss with them, especially since it is illegal to purchase life insurance coverage for your spouse without their knowledge. You must first get their consent and their signature for the policy – even only getting verbal consent to sign the policy can be considered insurance fraud.

If you’re looking for life insurance for you, your partner, or both of you, the best way to find the most affordable policy is by working with a licensed agent from a top-rated insurance company. They can help you find a policy with good 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 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

What Is Backdating? And How Can it Help Reduce Your Life Insurance Rates?

Life insurance companies use many factors when determining your rates for a policy, including your driving record, health history, and age. The latter is one of the main determinants of your rate: the younger and healthier you are, the cheaper life insurance will be, so some people choose to backdate their policies to lower their life insurance rates. Backdating can be used to lower your age on your policy, which will qualify you for reduced premiums on your policy. But how does it all work? And can it be used against you?

What Is Backdating?

illustration of a calendar — *Backdating can save you money by using the age nearest your half birthday instead of your actual age.*

While it might seem that determining your age for a life insurance policy should be very straightforward, it can actually get a little complicated. Some life insurance companies will use your actual age when you apply for the policy, while others will use your age at your next nearest birthday or half birthday. This means that, for example, if you were to turn 40 on March 4, you would be considered 40 on a policy application only until September 4 ( 6 months after turning 40). If you applied for a life insurance policy after September 4, you would be considered 41 years old to the life insurance company, since that company sets their rates according to your age at your next nearest birthday.

But some insurers allow you the option to backdate your policy. This means that you request the life insurance company assign your policy date to your last birthday, even if it has passed. For example, if you turned 40 in March and it is now November, you will technically be considered 41 to the life insurance company. But, you can request that the insurer backdate your policy to your birthday in March.

Disadvantages Of Backdating

You can only backdate your policy to your last half birthday, and no further than that. It might help to lower your premiums, but you should know that there is a disadvantage to backdating your life insurance policy. If you choose to backdate your policy, your premium payments will be due from the policy date, which means you will have to pay for any additional months from that 6-month mark, even though you were not technically insured at that point.

To return to our previous example: it’s now December, meaning you’re past your six-month half birthday period (September 4), and you decide you want to backdate your policy to your 40th birthday in March. You will get the 40-year-old rate instead of the 41-year-old rate, but will have to pay 4 months of extra premiums.

Should You Backdate?

Although you will have to pay for a few extra months if you want to backdate your life insurance policy, you could end up saving hundreds of dollars in premiums over the years. It makes the most sense for people who are older to backdate their policies, because the older you are, the higher your life insurance premiums will be.

If you are considering backdating, it would be wise to compare policies from different companies and work with an agent who can help you. They will be able to calculate the costs, and determine how much you will save on your premiums monthly or annually if you decide to backdate. They can also determine how much you will need to pay upfront.

To find the right policy for you, consider using online tools, or speaking with an agent. We have provided the top life insurance companies in the nation that offer hassle-free assistance and the most competitive rates below. Always check multiple sites to make sure you have bargaining power and know the different advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Does The Life Insurance Underwriting Process Work?

If you’ve been looking for a life insurance policy, you probably know that you’ll need to go through the underwriting process to determine how much you will pay for your monthly premiums. But just what is this process? It simply means that, when you apply for a life insurance policy, the insurer will gather information about you so they can determine how much of a risk you will be to insure. It might sound a bit scary, but it is a very routine process, and will not prevent you from finding a great policy at an affordable price. While some insurance companies will have different criteria for their underwriting process, there are some general things you can expect.

What Life Insurance Companies Will Look At

In order to determine if they should insure you, and how much they should charge you for premiums, life insurance companies will need to gather information from you to get a glimpse of what your overall life expectancy might be. They’ll want to know if you have a relatively healthy lifestyle, or if there might be anything you are engaging in that could lower your life expectancy, such as smoking or doing a hazardous job. Things like that will be taken into account, which could mean higher rates or possible denial of your application.

The factors that insurers take into account include: clipboard with medical information on it

Medical Factors– Insurers will want to know your height and weight, if you smoke, if you use any prescription or recreational drugs such as marijuana, if you have a history of medical conditions like heart disease or diabetes, and your family’s medical history.
Lifestyle Factors– They will also look at your driving and criminal record, and will want to know about anything risky that you engage in, such as skydiving or even foreign travel.
Financial Factors– Finally, you will have to disclose your current occupation and income, as well as your financial history, including any bankruptcies.

How the Underwriting Process Works

Now to look at how the underwriting process works when you apply for a life insurance policy. Your insurance company will go through the following steps:

Reviewing your application– The insurer will check your application and make sure that the information you provided is complete and correct, including your listed occupation, your date of birth, and what type of coverage you are looking for.
Administering a medical exam– Depending on the type of life insurance policy that you choose, you might have to undergo a medical exam to determine how healthy you are. It will check your weight, height, and blood pressure, and you’ll be required to give blood and urine samples. However, if you choose to purchase a no medical exam life insurance policy, you will skip this step.
Checking databases– After reviewing your application and your medical exam, the insurer will look at some third-party sources to get information, including your driving record and prescription records over the last few years. This is to make sure that you did not lie about your medical history on your application, and to make sure that you do not have any past DUIs or major infractions on your driving record.
Requesting your physician’s statement– This step will usually apply to you if you are older and applying for a large amount of coverage. Life insurance companies might ask your physician for a statement certifying that you are in good health, to make sure that you are not taking out a life insurance policy because you are battling a terminal illness or are likely to pass away soon.

The underwriting process can take up to 8 weeks. Once it is complete, your insurance company will assign you an insurance classification. There are four basic classifications that determine your rate and eligibility for a policy: gold circle seal

Preferred Plus is the best rating that you can receive, and will allow you to get the lowest rates available.
Preferred means you are in fairly good health and can receive affordable premiums.
Select classification means you will be approved, even though you might have a history of previous illnesses.
Standard classification means you have a family history of health problems and other issues, and that you will pay higher premiums.

Every life insurance company has different criteria for its underwriting process, which is why it is important to shop around and compare plans from multiple insurers. 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.

What Life Insurance Company Ratings Mean

Think about how you make most of your purchasing decisions. These days, most of these decisions are based on ratings, like online reviews. You want to work with companies that are highly rated, whatever you’re looking to buy – and life insurance companies are not excluded. But when it comes to life insurance companies, it’s about more than looking at online reviews, it’s also about looking at the ratings given to them by external organizations. So how are life insurance companies rated? And what do these ratings mean?

What’s A Life Insurance Company Rating?

Life insurance companies are rated by independent agencies, and these ratings are based on the financial strength of the insurance company. Rating agencies will look at a variety of factors, including how well the company is doing financially, how it is run, and how vulnerable it is to natural disasters.

The independent agencies that provide these ratings are typically A.M. Best, Fitch, and Moody’s. Each agency has its own rating scale and rating standards, which means an insurance company rated A by one agency might not be rated the same by another agency.

What Are The Ratings Based On?

Because each agency is trying to evaluate the financial strength of the insurance company, the ratings are based on certain criteria including:

Amount of cash on hand
Diversity of revenue streams
Quality of insurance policies written
Debt ratio
Risk management protocols

As stated above, each agency has its own rating scales. For example, A.M. Best has 6 ratings for the best insurance companies to work with:

A++, A+ (Superior)
A, A- (Excellent)
B++, B+ (Good)

They also have 10 ratings for companies deemed vulnerable:

B, B- (Fair)
C++, C+ (Marginal)
C, C- (Weak)
D (Poor)
E (Under Regulatory Supervision)
F (In Liquidation)
S (Rating Suspended)

Why Are The Ratings Important?

letter ratings from A being green to G in red — *Ratings are important because you want to make sure that your life insurance plan is from a reputable company that will uphold the policy when you’re gone.*

Life insurance allows you to provide a financial safety net for the people that you love in the event that something happens to you. You want to make sure that, when you pass away, your family will receive your death benefit, but that will not be possible if the life insurance company you worked with goes under. Ratings should be one of the factors you take into consideration before purchasing a policy from a life insurance company: these ratings will help you understand how credible and reliable they are.

Finding A Top-Rated Life Insurance Company

One of the ways that you can check out a life insurance company’s rating is to go to the websites of rating agencies and look up the specific companies you are considering working with. Some agencies will require you to pay a fee before gaining access to these ratings, but there are other ways to access life insurance ratings:

Search the insurance company’s website for their most recent ratings.
Contact the life insurance company and request their most up-to-date ratings.
Search for company reviews from trusted sources that include ratings.
Work with a licensed agent who can look up the ratings for you.

Choosing the right life insurance policy will ensure that your family gets the benefits they need. It might seem complicated and frustrating to find the right one, but it can be done, with some help. 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.