Life Insurance

If you are paying for your child’s tuition with your own income then it is recommended that you obtain a life insurance policy. This way your child will have the money to continue their education in the event of your death. Term life insurance is a great option because it is a relatively inexpensive form of life insurance and you can choose how long you want the policy to last. A good idea is to buy a term policy that will last until after your child’s college years.

Health Insurance

If your child is off to college for the first time then it is likely required by the school that your child obtains a health insurance policy. The college may offer its own health insurance plan, but make sure to understand the policy completely before committing to the plan. Keep in mind that plans have varying deductibles, out of pocket maximums, drug benefits, and doctor networks. Aside from policies offered through the school, there are plans available through the health insurance marketplace. Open enrollment starts Nov.1, 2016 and ends Jan. 31, 2017.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process and any assistance you may need thereafter. Contact us today and get the health insurance or life insurance coverage that is right for you!

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• Protective Life: Total Premium is $433.00 annually.
  Analysis: This quote is very competitively priced. The cost is only $433.00 a year, which is just $36.08 a month. Underwriting for this product requires a motor vehicle report and a paramedical exam, which includes a blood profile and a urinalysis. Protective Life has an A+ rating from A.M. Best ratings agency.

• Principal National Life Insurance Company: Total Premium is $445.00 annually.
  Analysis: This quote is very competitively priced. The cost is only $445 a year, which is just $37.08 a month. Principal also has an accelerated underwriting program for all of their life insurance products, which allows certain applicants to bypass having to take a physical exam in order to qualify. Principal has an A+ rating from A.M. Best ratings agency.

• Metlife: Total Premium is $449 annually Analysis: This product is competitively priced. The cost is $449 year, which is approximately $37.41 per month. Underwriting for this product includes a paramedical exam, which includes a blood profile and a urinalysis. Metlife has an A+ rating from A.M. Best ratings agency.

• John Hancock: Total Premium is $454 annually. Analysis: This product is competitively priced. The cost is just $454 per year, which is $37.83 a month. Underwriting requires a paramedical exam. John Hancock has an A+ rating from A.M. Best ratings agency.

• Banner: Total Premium is $459.99 annually. Analysis: This product is competitively priced. The cost is just $459.99 per year, which is approximately $38.33 per month. Underwriting for this product includes a motor vehicle report and an abbreviated paramedical exam, which includes a blood test and a urinalysis. Banner has an A+ rating from A.M. Best ratings agency.

• Nationwide: Total Premium is $465 annually Analysis: This product is competitively priced. The cost is $465 per year, which is approximately $38.75 per month. Underwriting for this product includes a paramedical exam. Nationwide has an A+ rating from A.M. Best ratings agency.

• United of Omaha: Total Premium is $482.50 annually. Analysis: This product is priced a little higher than other top rated carriers. The cost is $482.50 per year, which is $40.20 per month. Underwriting for this product includes a paramedical exam. United of Omaha has an A+ rating from A.M. Best ratings agency.

• Transamerica Life Insurance Co.: Total Premium is $550 annually. Analysis: This product is priced a littler higher than the other top rated carriers. The cost is $550 per year, which is approximately $45.83 per month. Underwriting for this product includes a motor vehicle report and a paramedical exam, which includes a blood test and a urinalysis. Transamerica Life Insurance Co. has an A+ rating from A.M. Best ratings agency.

Final Analysis on quotes for 35 year old:

As you can see, term insurance can be very inexpensive. The quote from Protective Life was the least expensive quote. However, the quote from Principal National Life Insurance Company was only a dollar more. Principal offers an accelerated underwriting program which would potentially make it worth while to go with Principal instead of Protective Life. Therefore, the lowest quote is not always the very best option. Pricing is very important but it is good to have a broker that has knowledge of the underwriting standards of each company. Ideally, you want to go with the company that is the best combination of four criteria.  1. Best pricing. 2. Easiest underwriting 3. Quickest underwriting 4. Best financial ratings. An experienced broker can help you compare quotes and find the best overall product for you.

Term Life Insurance Companies for a 50 Year Old

• Lincoln National Life Insurance Company: Total Premium is $1,688 annually. Analysis: This is one of the most competitively priced quotes for this age group. Lincoln was not one of the lowest prices for the 35 year old. Lincoln National Insurance Company has an A+ rating from A.M. Best ratings agency.

• Protective Life: Total Premium is $1,697.50 annually. Analysis: This quote is competitively priced. Similar to the 35 year old quotes, Protective is offering one of the lowest prices available.

• John Hancock: Total Premium is $1,710 annually. Analysis: This quote is competitively priced.

• Principal National Life Insurance Company: Total Premium is $1,710 annually as well. This product has an accelerated underwriting program to qualified applicants.

Final Analysis on quotes for 50 year old male:

As you can see. Lincoln National Life Insurance Company is the best priced option for the 50 year old. In terms of price, Lincoln was not even in the top ten for the 35 year old. This demonstrates that different companies are better priced for some age groups and not others.

At Secure Term Insurance we are insurance brokers offering free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter. Contact us today and get the coverage that is right for you!

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The 60 minutes episode this week was called ‘Not Paid’. It shined a light on how  life insurance carriers have been avoiding paying claims. Even well known companies like John Hancock, Metlife, and Prudential were named as having failed to pay out to deserving beneficiaries. An investigation has shown that the number of policies that were not paid were in the millions and occurred over many decades. These policies amount to billions of dollars in unpaid claims nationwide.

The Bottom Line

The policies that were not paid all had one thing in common. The beneficiaries never came forward to make the death claim. In most of the cases, the beneficiaries just did not know of the existence of the policy or had forgotten about it. The insurance carriers are in trouble because in many cases, the carrier had actual knowledge that the death of their client had occurred. But, because there was no formal death claim submitted by the beneficiary the carriers simply did not pay the claim and essentially pretended that they did not know about the death.

Lessons Learned

Treat your policies like a piece of fine jewelry. Keep them in a safe place that you can check on easily. Many people buy life insurance and forget what they have because they lose the paperwork. If this has happened to you then make sure to call your broker or the company that you bought the policy from to get another copy of the documents. Also, the most important lesson in all of this is to make sure to let your beneficiaries know that you have a life insurance policy with their names on it. Make sure they have a copy of the policy or at least know where the policy is located. This way they can formally submit the claim when that time comes.

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Many people do not realize that level term life insurance is an affordable way to protect your loved ones. It is easy to understand and allows you the flexibility of choosing the term of coverage and the amount of death benefit. Also, the premiums you pay are level for the entire term selected.

For example: A healthy male age 35 can purchase a 20 year term policy with a $500,000 death benefit from an A+ rated company for $255 annually, which is about 70 cents a day! The proceeds can be used to cover dependant care, educational expenses, mortgage payments, consumer debts, provide income replacement, etc.

Level Term Life Insurance Tips to go by:

1)  Level Term Life Insurance is relatively inexpensive.

Because Level Term Life Insurance is typically very affordable, there is very little reason to go completely uncovered.

2)  If you have dependants you need insurance.

Dependants include children that you support financially and in some cases older relatives (parents, grandparents, etc.) that you support financially. Also, if you have a spouse you should have insurance.

3)  You should buy level term life insurance when you are healthy.

Ideally you should buy insurance when you are healthy. This will ensure that you get a low rate for the term you choose. The sooner you buy insurance the better, because obtaining a policy is more difficult and more expensive as you get older.

4)  Buy insurance to meet your specific needs.

Add up your outstanding debt (mortgage amount remaining, car loans, credit card debt, etc.) educational expenses (the amount you would want to set aside for each of your children’s future educational expenses), income replacement amount (consider how much your surviving spouse would need in order to replace the income lost if you were to pass away), final expenses (consider an amount you would want to set aside for your funeral bills and also for potential end-of-life medical expenses).  Adding up the amounts from these categories will give you an adequate amount of insurance to buy. Keep in mind that the amount of insurance you would like is always up to you. If you feel you cannot afford to insure all 4 categories mentioned, insuring for just one, two, or three of the categories would be beneficial to your survivors. For more info see: How much insurance do I need?

5)  How do I choose a term length?

In choosing the length of the term it is advisable to buy a term policy to cover your dependants until they are able to provide for themselves. Another appropriate term length would be to buy a term policy that will give you coverage until your spouse reaches retirement age. Other ideas would be to choose a term length that coincides with the time you will be finished paying for your mortgage or finished paying for your child’s education.

6)  You can drop your term coverage at any time!

Let’s say that you qualify for and obtain a policy with a 20 year term and you are paying premiums monthly. In order to keep the coverage and maintain the same premium cost per month then you must keep up with the monthly payments. However, if for any reason you wish to drop your coverage just stop paying the premiums and there is no penalty. If you were paying premiums annually and midway through the year you wanted to stop your coverage the insurance company will reimburse you for the months that you already paid coverage for. If you are dropping your current coverage to try and go with a less expensive company, do not drop your policy until you have qualified for the new insurance with a better rate. Once you drop an existing policy you have with one company, you will have to go through underwriting again to get that same policy back. And, because you will be slightly older in age, the same amount of coverage will cost more in premiums.

7)  You can buy several policies.

Let’s say you are 35 years old and currently have a 30 year term policy to provide replacement income to your spouse in the event that you die before your planned retirement age of 65. Also, let’s say you have a child that is currently 15 and you plan to pay for your child’s college education in the future. Although you already have a 30 year policy, you can purchase a 10 year policy to meet this specific need for your child’s education. So remember that although you may already have life insurance, it is beneficial to review your coverages because your needs may change through the years.

8)  You can compare level term life insurance rates easily!

With the availability of the internet, comparing quotes can be done quickly. It is beneficial to compare rates because the same amount of coverage can be different in price by as much as 50% from one company to another. The Cheapest quote is not always best. The cheapest term policies often have stringent underwriting standards. Many companies advertise the lowest rates; however the caveat is that it is difficult to qualify for such rates. For a quick comparison of term life insurance quotes go to SecureTermInsurance.com

9)  You cannot buy life insurance without going through an agent or a broker.

Buying insurance through a broker and buying insurance through an agent are the same cost. It is important to note that when you purchase insurance it is mandated by law that a licensed agent or a broker be involved in the transaction.  There is no such thing as buying insurance directly from an insurance company so as to avoid paying a commission to an agent or a broker. Commissions are already built-in to the costs of all insurance policies. So choosing to purchase insurance through an agent or through a broker will not change the cost you pay for any policy. Keep in mind that if you are being charged a fee to get quotes then there is something wrong.

10)  Insurance Agent vs Insurance Broker

Insurance agent is often used as an umbrella term to describe a person who sells insurance. Technically, being an agent implies that the salesperson only sells insurance with one company. Agents cannot offer price comparisons from different insurance companies. Insurance Brokers are not captive to any one company. They can shop the entire marketplace to find the best product at the best price.

Looking for Level Term Life Insurance quotes? Get the coverage you need today. At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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Whole Life Insurance

1.  Provides death benefit coverage for life.

As long as you pay your premiums, your whole life insurance policy remains in force. The whole life insurance policy provides coverage for your entire lifetime. This is different from term life insurance, which only provides a death benefit for a set period of time. 10 years, 20 years, and 30 years are common term lengths.

2.  Builds cash value

In a whole life insurance policy, a portion of the premium that is paid accumulates into a cash value account. The cash value account accumulates on a tax deferred basis and accumulates at a competitive interest rate. A term life insurance policy does not accumulate any cash value and only provides a death benefit for the set term.

3.  Can provide supplemental retirement income

The money that has accumulated in the cash value account from your whole life insurance policy can be borrowed out of the policy and can be used to supplement your retirement income. You do not have to wait until you retire to borrow money out of the policy. You can take the money out any time you wish.

Term Insurance

1.  Provides coverage for a set term length

Common term length options are 10 year, 20 year, and 30 year terms. The premium amount remains level throughout the term period. Once the term is over the life insurance coverage terminates and you must reenter the market if you want coverage again.

Keep in mind that the older you are when you apply for coverage, the more expensive premiums will be. Some term policies have a term conversion option which will allow all or part of the death benefit amount to be converted into a whole life policy without proving insurability. This allows the insured person to continue coverage without having to reapply for life insurance when the term policy expires.

2.  Provides only a death benefit

There is no cash value build up in a term life insurance policy. A term policy provides a death benefit only. A whole life insurance policy builds cash value and provides a death benefit as well.

3.  Cheapest option

The premiums on a term life insurance policy are less expensive than the premiums on a whole life insurance policy. Term life insurance is especially helpful for young families that do not yet have significant savings. The younger you are and the healthier you are when applying for term insurance coverage, the less expensive the premiums will be. For some people, term insurance premiums can cost less than purchasing a cup of coffee every day.

4.  Common term lengths are 10, 15, 20, & 30 year terms

When choosing a term length. Here are some questions to consider. How many more years until you reach your planned retirement age? How many years until your child becomes an adult? How many years are left on your mortgage?

Now that you understand the difference between Term Life Insurance vs Whole Life Insurance, you will be able to purchase a life insurance policy that will provide the financial security that you need for your family.

Whole Life Insurance vs  Term Life Insurance

Get the coverage you need today. At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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1. Provides income replacement

If you are the sole breadwinner of your family, your family depends on you for financial support. Your family would need to replace the income that is lost in the event of your death. Term insurance is a great way to insure your income and provide financial security for your loved ones. In addition, term life insurance is typically less expensive than other forms of life insurance.

2. Covers mortgages

A mortgage is for a set period of time. A good way to insure your mortgage is to get a term policy that lasts for the duration of your mortgage. If you were to die unexpectedly, your spouse would be able to keep the house by paying off the loan using the proceeds from the policy.

3.Covers debts

By having a term policy in place, you can protect your loved ones from the burden of paying off your debt in the event of your death. If you have student loans, credit card debts, auto loans, etc., a term policy can cover these costs.

4. Covers final expenses

Funeral costs and medical bills can be very expensive. Term insurance is a great way to cover these costs and alleviate the burden on your family.

5. Covers educational expenses for your children

College costs have increased dramatically over the years. In order to make sure your children’s educational costs are covered in the event of your death, you should get a term insurance policy. You can decide upon a term that will provide a death benefit that lasts until your children are able to make their own way in the world.

6. Insurance is a core component of any financial and estate plan

Term life insurance is a core component of a strong financial and estate plan. With a term life insurance policy, you can leave money to your children, spouse, or anyone that you care for. You can also change the beneficiary at any time or name multiple beneficiaries.

7. You can stop paying premiums at any time

If you buy a 30 year term policy you are not required to keep the policy for the entire 30 year term. There is no penalty for dropping a policy. Once you discontinue paying premiums the policy terminates and there is no death benefit coverage. However, if you do wish to keep the policy for the entire 30 year period, the premium amount is level and will never increase during the entire term length.

8. You can buy more than one policy

As your financial needs change you can buy another term life insurance policy. It is a good idea to review your coverage to maintain the proper amount life insurance.

9. Term insurance is relatively inexpensive

It is very important for young families that have not been able to accumulate a lot of savings to buy term insurance.  Often, a term life insurance policy costs less than it costs to buy a cup of coffee per day. Proceeds from the policy create an estate for the benefit of the surviving spouse and children.

At Secure Term Insurance we offer free quotes and personalized service with step by step guidance throughout the application process, underwriting process, and any assistance you may need thereafter.

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