Insurance Companies

How to Find Low Rates for Senior Life Insurance

in Final Expense,Senior Life Insurance

If you are over the age of 50 and you are looking for life insurance coverage, then you should know that there are many carriers that cater specifically to your age group. It used to be more difficult to get an affordable senior life insurance policy, because of age and health issues such as high blood pressure and cholesterol. There are now many options for seniors so it’s important to know what your options so you can determine how to find the lowest rates for seniors.

Term life insurance for seniors. A term life insurance policy will typically require a medical exam and the term that you qualify for will depend on your age. Most carriers will not renew a term policy beyond age 75, so if you are 55 years old, you can probably qualify for a 20 year term policy. Term life insurance gives you more bang for your buck, but it also comes to an end at some point. If you still have a mortgage to cover or other debts, then term life is a great option because you can get more insurance for less money. Just keep in mind that once you reach your 70′s you will have to get another policy for funeral and final expenses.

Whole life insurance for seniors. There are many whole life insurance options for seniors such as final expense insurance, also known as burial insurance. These are smaller policies that can range from $3,000 to $25,000 and they are designed to be used for your final expenses- funeral costs, taxes, probate fees, etc. It is simplified issue, meaning that you do not have to go through a medical exam, and they are fairly easy to qualify for, even with health issues such as high blood pressure or cholesterol. The best thing about a whole life policy is that the coverage will last for the rest of your life and your premiums will never increase.

How to find the lowest rates. It is important to talk with an experienced agent who works with multiple carriers. This is important because every carrier has their own underwriting requirements and the rates can vary by as much as 20% or 30%. An experienced agent can help you determine which carrier is the best fit for you.

Get a free quote today to compare multiple rates.

Zip Code:

How Much Life Insurance Do I Need?

in Life Insurance Basics,Life Insurance Needs

The first thing you need to do when you start shopping for life insurance is to figure out how much life insurance you really need. There are many ways to determine this. Here are a few:

The Rule of Thumb Method: Take 5 to 7 times your annual gross income and that would be the amount of life insurance coverage you should carry.

The Expense Calculation Method: Add up all your expected expenses should you die, including: expenses for your burial, an emergency cash fund, money to pay your current debts, mortgage, college tuition, and any replacement income needed for your family,. Now, add these all together to determine your total life insurance needs.

The Income Replacement Method: Decide how much of your current annual gross income your family would need for them to maintain their present lifestyle and standard of living. The average is 70% of your current annual income. What you want to do is purchase enough life insurance so that the proceeds, if invested at an after-tax rate of return of 8%, would generate enough income for your family.

Let’s use an example to show you how this works: If you earn $30,000, then your life insurance policy should provide $21,000 of annual income for your family. $30,000 times 70% equals $21,000 of annual income. Now, if your family invests the proceeds of your life insurance policy, they need to receive $21,000 annual income from that investment. $21,000 divided by 8% (rate of return) equals $262,500 of life insurance protection.

I would say that a combination of all three of these methods is best because everyone’s age, health status, and marital and financial situation is different. Be sure to speak with an experienced agent for more guidance on the right amount of life insurance coverage or your family. Get a free quote today to compare multiple rates from the top carriers.