2010 February

Life Insurance At 85 Years Old

If you are looking for life insurance at 85 years old, or if you are inquiring about final expense insurance at age 85 for a family member or friend, then this article will give you some more information about your options. Although most seniors obtain final expense insurance earlier in life, there are times when people make the decision to get insurance at this age. The first thing you should know is that there are still options available, though it depends somewhat on your health status.

Your options for life insurance at 85 years old

At age 85 the only type of coverage that you can obtain is a final expense policy, also known as burial insurance or funeral expense insurance. This is a whole life insurance policy, which means that the rate is fixed and the coverage is permanent. Whole life insurance also builds cash value over time because a portion of your premiums are set aside in a savings account. This cash value can be borrowed or left within the policy. Coverage amounts range from $2,000 to a maximum amount of $30,ooo. At this age you probably want to obtain some coverage to cover the costs of a funeral and final expenses, so it will not be a burden on your family. Most people will desire about $7,000 to $10,000 worth of final expense insurance to cover burial expenses.

No medical exam is necessary to qualify

When shopping for life insurance at 85 years old, there is no medical exam needed to apply for coverage. In order to qualify you will have to fill out an application and answer a set of health questions. Insurance companies all have different questions that they inquire about, but they generally ask about the same types of things. Most carriers will want to know if you are in a nursing home or if you are unable to care for yourself. You will also have to disclose whether you currently have or previously had (usually the previous 36 months) heart problems, cancer, a stroke, diabetes, or other major health issues.

Keep in mind that most insurers who specialize in senior and elderly life insurance understand that most 85 years old seniors are going to have some health issues, so don’t let that be a deterrent to applying for a policy. There are a handful of highly rated companies that offer final expense life insurance up to age 85. The rate will depend on whether you are a male or female (insurance on a male costs more) and whether or not you smoke. Rates also differ from one company to another. That is why it is important to compare quotes from multiple companies that specialize in final expense life insurance for seniors to find out which company has the most affordable rate for your situation. Get a free quote today for life insurance at 85 years old.


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Term Life Insurance As An Asset

in Term Life Insurance

Most people don’t realize that life insurance can be an asset. In fact, it’s the best kind of asset or more importantly, a true asset as opposed to your primary residence (with a mortgage attached). As with all assets, there are some important things you can do with it both before and after the benefit is triggered. Let’s take a look at how life insurance should be viewed as an asset.

First, what is an asset? Some people have somewhat of a hazy view while others are just plain wrong. What about your primary house? Is that an asset? Well it depends. If you do not derive any income from your house and only pay out due to a liability (your mortgage debt), then it’s hard to call it an asset. Even when you have full paid off the mortgage, it’s still not ideally what you would want in an asset. An asset should pay income. Your primary home does not pay income. Yes, you’re building value over time but that doesn’t really help you make ends meet if a primary earner in the family passes away. In this regard, it’s more like a liability. It all comes down to cash flow and cash flow is what hits people so hard when the income suddenly vanishes due to the unexpected loss of a family member.

Life insurance on the other hand, can be the source of income if the insured passes away. It’s also the best kind of income because it is typically tax-free. Don’t underestimate the importance of this. If you you earn $50K annually through salary, it’s probably more like $35K after tax as you’re all too aware of. Average tax brackets tend to run from 20 to 30%. Life insurance benefits are generally not taxable. This means $500K is $500K. This becomes even more important since our tax system is “progressive”. This means that the more money “earned”, the higher your average tax rate will be. It can even approach 50% when adding federal, state, and so-called “windfall” tax rates. Congress has tried to go after this tax-free status of life insurance but the push-back has been too great. So we have a tax-free asset in term life insurance. Why, would this be an asset? It can create income. If you take your $500K (to continue our example) and invest it, at 5% you’re looking at $25K annually. That’s income derived from an asset and it’s a critical function of life insurance.

rYou can also just spend down this “asset” if you choose since it’s highly liquid. Selling a house can be a difficult proposition reliant on market conditions and other factors (not to mention the question of where are you going to live?). The life insurance benefit is cash. You do not get a more liquid asset than that. If you spend down the asset, you will not retain a residual asset which earns money but you will have more cash flow in the meantime. For example, if we spend $50K each year (to match our replaced income), we have 10 years at this level. At a minimum, that gives you a decade to get your financial house in order following the passing of a loved one and the lost income. Many people without life insurance find themselves having to make truly life-changing decisions in a very short span since they don’t have the immediately created asset that life protection offers. Again…most people will essentially be bankrupt in a matter of months if the family’s income disappears or is even cut in half. Term life provides the asset and more importantly, the income to avoid this situation at an affordable cost. Get a free quote for term life to compare multiple rates from the nation’s top carriers.

Term Life vs Whole Life: Picking the Best Life Insurance for You

in Term Life Quotes

Most individuals realize how important life insurance is, but there is often a great deal of uncertainty and confusion about the whole process. People wonder what kind of life insurance they should get, which type is best, and how much they need. When choosing between term life and whole life it is important to understand the fundamental differences.

Both types offer the necessary protection that most families and individuals are in desperate need of, but there are pros and cons of term life that should be considered before deciding that it is the most appropriate choice.

Term life insurance is often referred to as temporary protection due to the fact that it provides a death benefit for a specific amount of time. At some point, the term policy will expire and will effectively leave the insured with no coverage. In contrast, whole life insurance is designed to cover an individual for the entirety of their remaining years and does not expire.

Whole life policies accrue cash value as they are funded by premiums, so they are often used as an investment vehicle. Term life policies do not accrue any cash value and simply end when they expire with no financial benefit or surrender value.

Perhaps the most important feature of a term life insurance policy is its cost, which is often much lower than any other type of coverage. Although there is no cash value that accrues, the inexpensive premiums often attract consumers that would otherwise be unable to afford coverage.

While many individuals worry that term life insurance expires at some point, it is necessary to understand its designed purpose. Many lenders will suggest that a borrower maintains a life insurance policy during the period of time that their mortgage will last. For these such purposes, a 15 year term would be completely acceptable and a consumer would only pay for coverage when it was needed. There are many other financial goals that can be accomplished by retaining coverage for a specific amount of time, such as the period until a surviving spouse would be able to access retirement monies.

No matter what type of coverage is the most appropriate for your needs, make sure to be a wise consumer and only spend the money that is necessary. Because the insurance companies have widely varying premiums, shopping around can often save a great deal of money. Although comparison shopping is typically seen as a very time consuming process, the truth is that utilizing an insurance comparison website can be quick and easy. Such websites will allow you to fill out a simple form and immediately receive multiple quotes from reputable insurers that would love to gain your business. Finding the best coverage is no longer an arduous task and it is remarkably simple to find adequate life insurance. Get a free quote today to compare rates from the top carriers.

Get Term No Examination Life Insurance Policy

in No Medical Exam

Trying to figure out the actual definition of term no examination life insurance policy may end up at something like this: the insurance capable of providing coverage up to a specific time limit at a particular and fixed rate of payment.

After the stipulated coverage time, the policy does not exist and there by the client either has to forego the policy or try to get potential further coverage with different payments and conditions.

Term no examination life insurance policy is the most inexpensive way to obtain a substantial death benefit. It is the original form of no examination life insurance policy which contrasts to that of the permanent no examination life insurance policy for example whole life coverage, universal life coverage or variable universal life coverage.

The functioning of this type of insurance is quite a bit similar to that of the most of the other types of the insurance. The claims against what is insured generally get satisfied provided the fact that the premiums are up to date and the contract is functional without being expired.

No exams, no tests, no waiting! Get a no examination life insurance policy quote without the hassle.

Providing an example is the auto insurance where the claims get satisfied against the insured in a situation of an accident, whereas a homeowner policy satisfies the respective home in case of damages or destruction.

The term no examination life insurance policy is so designed that if in any case of the policy holder decides to discontinue the coverage as in cases of the selling of the respective car or home which were insured, the agency is not liable in paying the refunds of the premium any longer.

Get a free quote for term life insurance and compare multiple policies from highly rated carriers. Compare and save today!

What Kind of Life Insurance Is Best for You?

February 7, 2010

Whole life insurance is the most prominent of the insurance products on the market and the oldest. Whole life literally means whole life. Term life is simply a life insurance policy that will last for a specific amount of time, i.e. 5 years, 10 years etc. After that date, the policy will expire. Universal life [...]

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