What Is Life Insurance, Buying Life Insurances, Life Insurance Explained

*** Are you looking for Life Insurance, Find Information and Get Free Insurance Quotes***http://www.pecuniamcumweb.work There are many different kinds of life insurance. Term Life, Whole Life, and Universal Life are just three of the most basic kinds. Buying life insurance does not have to be difficult. This video is a must watch if anyone is thinking about buying life insurance for the first time, or for those wishing to convert their current policy to a permanent plan.Learn from the mistakes of others. Learn the top 5 mistakes people make when buying life insurance. Here are five mistakes people make when buying term life insurance. Life insurance is one of the most important components of any individual's financial plan. However there is lot of misunderstanding about life insurance, mainly due to the way life insurance products have been sold over the years. We will review some common mistakes insurance buyers should avoid when buying insurance policies.

Life Insurance Explained

Good Life Insurance for Seniors over 80 is Easy to Purchase

Are you or a family member over 80 and looking for coverage? There are different types of policies available for you through age 89. We'll help you find the right policy to fit your needs.

You have to consider a number of factors before you decide the which type of policy is right for you. Let's take a closer look at what goes into deciding how to buy life insurance for seniors over 80.

Getting life insurance for seniors over 80

Life insurance for seniors over 80 doesn't have to be complicated. We make it easy for you to understand the different choices you have, such as what types of policies are available?, do you need to take a medical exam?, how long does the process take? You can have coverage very quickly if you choose a policy with no medical exam. Here are the details.

Why do you need coverage at this stage of life?

By the time you are 80 your needs for insurance differ from when you were younger. You may need coverage for a variety of reasons. Some of these are:

• To pay for your funeral.
• To pay off debts so your spouse or children aren't left with them.
• To leave additional funds to one or more family members who rely on you for support.
• To leave funds to children or grandchildren for college or for a legacy.
• To pay off your mortgage and not burden your spouse or children.
• To leave money to provide support for a special needs adult child.
• Charitable giving.
• Estate planning.
• And for any other reason you have to leave money to someone.

There may be multiple reasons you want to purchase coverage. Children may want life insurance for elderly parents over 80.  You may want burial insurance for seniors over 80. Whatever your reason to need life insurance, you can choose from several options. Here are some reasons you may need life insurance for seniors over 80 in retirement.

What's the least expensive type of coverage?

In general you will hear that term life insurance is usually the least expensive coverage available. This is mostly true. However, it may not be the case when you are in your 80's.

As we get closer and closer to our life expectancy, the difference in the prices of term insurance and permanent insurance policies get smaller. Surprisingly, underwriting for a permanent policy is somewhat more lenient than that for a term policy. Additionally, some insurance carriers have special programs that can improve your rating and therefore reduce your premium.

If you are a senior buying life insurance over 80, under most circumstances you should really only consider permanent coverage. There are some reasons why a term policy may work, but we find that most seniors are looking for coverage to last their entire lifetime. Remember, you cannot buy life insurance for seniors over 90. We highly recommend permanent coverage at this time of life, and find that almost all of our senior clients agree.

In your 80's the only term policy you can purchase is a 10 year term policy. If you are insuring yourself to guarantee a loan that will be paid off in 10 years or less a term policy would work for you. But be sure to check both term and permanent, because sometimes permanent coverage is about the same cost as term coverage! Also, once the loan or other obligation is over, you may decide you want to keep that coverage in force, so, again consider a permanent policy.

If you know what you are trying to accomplish by getting life insurance, your agent can work with you to determine which type(s) of coverage will fit your needs. Then you can see what the least expensive choice is. Next question is...can you qualify for that type of policy? If so, great. If not, your agent will be able to help you understand why not and show you what you can purchase.

There are several types of policies available. That's why you need to talk to your independent life insurance agent, because they know where you can get the best coverage at the best pricing.

How to Choose the policy that's right for you

So now we know that you are probably looking for a policy that will last your lifetime. You need to speak to an agent because there are so many different things to consider.

I bet you didn't know that every insurance company has slightly different underwriting guidelines. Well, they do. What this means is that you may be able to qualify for coverage with one company, but perhaps be declined or rated higher (which costs more) with another.

How would you know which company is the best for you? You won't find this information on the internet. You need an agent that has experience with seniors over 80 and different life insurance companies. Your agent should be aware of many of the differences from company to company so that they can steer you to the one that will work best for you. Additionally we have an in-house underwriter we can discuss our cases with. He is able to assist us in placing you with the right carrier. He is able to talk to the carrier underwriter too. This is not something most agents have the ability to do and it can make the difference between getting a better rating or not if you are right on the cusp.

Did you know there are several different kinds of permanent policies? Some require a medical exam, while others don't. How is your health? What medications do you take? How much coverage are you looking for? Your agent can help explain why you can apply for one policy, but not another. Here's how to buy life insurance in pictures!

Looking for coverage for estate planning? If you are married you probably will want to consider a survivorship life policy. More about these later.

You need an independent life insurance agent who specializes in seniors to help you understand your different choices. There are many companies and many different options available, as well as different types of permanent policies. Once your agent understands what you are trying to accomplish and your health situation, they can explain which type of policy you will most likely be able to qualify for. Then they will find you the least expensive policy that will fulfill your goals.

Looking for Final Expense Insurance?

News Flash: You can purchase between $2,000 and $40,000 of permanent insurance with no medical exam! Final expense insurance allows you to do just that. (You can purchase more if you use more than one company!) It's easy and very quick. Here's how it works:

Final expense insurance is actually whole life insurance. These type of policies have simplified underwriting, meaning you do not have to give blood and urine or have a paramedic exam. The insurance carrier will not order your doctor records. You must be able to answer several questions about your health. Some of the questions relate to your health in the last one or two years, some are lifetime questions. There are usually less than about 25 yes or no questions.

Once your application goes to the insurance carrier, they will examine your record at the Medical Information Bureau and look you up in a prescription database prior to approval. (Some carriers do not check the Medical Information Bureau). They are checking that you answered the underwriting questions truthfully as that is what they are using to determine if they will insure you. 

Many companies also have you complete a telephone interview. The interview is basically asking the same questions on a recorded line that you answered on the application. The process is very easy and approval comes very quickly. You can often have a policy in force in less than a week! 

Some carriers offer up to $25,000 of insurance, others up to $40,000. If you want more than $40,000 of coverage you will have to apply to more than one company. That is an allowable option for anyone who does not want to take a medical exam for insurance. We had a client who wanted $100,000 of coverage, and she took out three policies with different companies to do it!

This type of coverage gives you insurance from day one. Sometimes you will only qualify for a graded benefit policy. This means, your coverage will phase in. In year one your beneficiaries may only get the premium paid in (plus interest) if you die from any medical condition. In year two it would be 50% of the face amount, and then 100% in year three. Some companies phase in over two years. These numbers are just examples to give you an idea of how graded coverage works. (If you die from an accident, the full face amount is paid from day one.)

If you can't qualify for either of these types of coverage, we have another option for you. There are Guaranteed Issue Life Insurance policies. These have no medical questions on the application, however, for the first two years you are only covered for accidental death. If you were to pass away from a medical condition, your beneficiary would receive all the premiums you paid in plus interest. After two years your beneficiary would collect the full face amount no matter what the cause of death. These policies are available up to and including age 85.

What about Universal Life Insurance?

If you are looking for $25,000 of insurance or more, there is another option for you. It is a universal life insurance policy. This type of coverage requires full underwriting. That means you will have to have a paramedic exam where the examiner will check your height, weight, blood pressure, do an EKG (no undressing needed!), take a blood and urine sample, and get a complete health history from you. 

The insurance company will order your medical records for the last five years. Once all of the information is gathered, the underwriter will review your file and determine if you qualify for the insurance and at what rating. The rating and the amount of coverage you want will determine the price.

A Guaranteed Premium Universal Life (GPUL) policy is usually the least expensive type of permanent coverage. These policies can be designed so that no cash value is accrued. They can be set so that the premium stays the same for the life of the policy. Because there is essentially no cash value in the policy, this helps keep the premium lower.

Many states allow these policies to be sold starting at a face amount of $25,000. Some companies have a minimum face amount of $50,000 or $100,000 face amounts. Your agent will be able to tell you them lowest amount of coverage you can purchase.

This type of insurance is always less expensive than final expense coverage, but there are more requirements to get it approved. Generally ordering your medical records is what takes the longest. Although these policies may take four to six weeks (or even longer) to put in force, they are a great value.

Is a Survivorship Policy Right For You?

As I said earlier, this type of policy is often the preferred choice for estate planning. If you have an estate and you want to provide your heirs with cash to pay off the estate taxes, a survivorship or second to die policy may be right for you. This type of policy is a good solution for an estate that does not have a great deal of liquidity. The cash from the policy means your heirs will not have to sell property to amass the estate tax payment.

Two people are insured, usually a husband and wife. The good news is that the premium is usually less than for two separate policies because although two lives are covered, only one death benefit is paid. An additional benefit is that if one spouse is uninsurable for individual policies, they may be able to be insured as part of a second to die policy.

The Bottom Line

Don't know which policy is best for you? That's where we can help. Your health, the amount of coverage you want, your willingness to have a paramedical exam, how soon you need your coverage and more will let us help you determine what will work best for you.

Seniors looking for life insurance for seniors over 80 have a number of choices to make. An agent can help determine what type of policy you can get and help you determine which policy will have the lowest premium and still accomplish your goals. Make sure you find an independent life insurance agent who specializes in seniors to have the most options available.

Affordable Life Insurance for Seniors and Baby Boomers.

If you are lucky enough to have elderly parents or grandparents (or aunts or uncles) you may find you are needing to help them purchase some life insurance. Unfortunately, many of us wait until we are older to decide we need some coverage. Many elderly family members want some final expense insurance and we can help you make it easy for all involved.

Reasons for Coverage

Did you know that there are many reasons why life insurance for elderly parents is a good idea? You need to consider not only the reasons they may need life insurance, but what are the consequences if they don't purchase coverage. Who will pay for their final expenses?  Let's figure out the best ways to approach getting your family insured.

Here are some of the more common reasons why life insurance for elderlyfamily members may be needed.

• Final expenses- The average cost of a funeral in the United States is over $7000. That's the average, so depending on where you live and what your parents want, it may be even higher. Do your parents have enough savings to cover their final expenses? If not, who will pay for their funeral? (I know this is not a fun thought, but better to figure it out now than when the time comes!)Free Download
  Final Expense Life Insurance Handbook
• Debts- What is your parent's financial situation? Will they leave debts behind? Are there assets to cover the debts or will they be left for you? Life insurance can be used by the beneficiary for anything at all and is generally a tax free payment. 
  • Medical Bills- Fact, most people have the highest medical bills near the end of life. So you may find you or a surviving parent is left with huge medical bills to pay off.
  • Mortgage Payments-Do your parents have a home? Will the house be paid off when they pass away? If so, it will be an asset for you. If not, what do you do? Some life insurance money may ease this burden and allow you to keep the property.
  • Inheritance- Do your parents want to leave a little bit of money to their children or grandchildren? If they are on a fixed income, life insurance can increase the amount of money left at the end of their lives.
  • Special Needs Child or Grandchild- If you parents have a special needs family member, they will need help for their entire lifetime. Life insurance allows for support for their special needs child.
  • Other Reasons- You may find a family member needs coverage for something we haven't thought of!

  What Kind of Coverage is Available?
  
  Senior citizens can purchase term life, whole life or universal life. There are different types of policies available based on your needs, finances and insurability. 
  
  However, when you are dealing with seniors and end of life reasons for life insurance, term policies don't make a lot of sense. If your parent outlives the term period, the cost of that policy will skyrocket and likely make it not affordable, or they may be too old to purchase any coverage or it may be too costly. You only want to look at policies that last for their lifetime.

   

  You can purchase coverage up to age 89. However, at that age, the premiums are very expensive! It makes sense to get insurance earlier, when the cost is more manageable. Universal life policies are available up to age 90. Final expense coverage can be purchased through age 89 for level benefits. For graded benefits, age 80 is usually the maximum. Guaranteed issue policies can be bought through age 85.  

• Universal life insurance is permanent coverage that is very flexible. It can be structured so that cash does not accumulate and the premiums and face amount are fixed. (These policies are called guaranteed premium universal life insurance.) There is a $25,000 minimum face amount. (Some states and/or companies require a higher minimum.)
  • This is the least expensive type of permanent policy available. It requires full underwriting. That means they will have a paramedic exam, blood test, urine test, and full medical history. The insurance carrier  may also require a simple cognitive exam. Doctor records will be ordered. If you family member doesn't go to the doctor regularly, they will not be able to get this type of policy.

• Whole life insurance is permanent coverage too. 
  • There are whole life policies that are fully underwritten for higher amounts of coverage, however, you will find that Universal policies for the same amount of coverage will likely be less expensive. There are very few companies that even offer this kind of coverage.
  • Final expense policies- These are whole life policies that have simplified underwriting. That means there is no paramedic exam, blood or urine. It is generally easier to qualify for these types of policies. The policies range from $2,000 up to $40,000. For more coverage you would have to purchase policies from multiple companies. If you qualify at the best level available, these policies pay the full face amount on day one.
  • Graded final expense policies- If you can't qualify for the best level final expense coverage, most carriers have at least one other level. Graded final expense coverage is not fully in force on day one. If the insured dies during the graded period (two or three years), the beneficiary will receive either a percentage of the face amount, or all premiums paid will be returned with interest. Every company has their own method. 
• Guaranteed issue life insurance- If your parent cannot qualify for any medically underwritten policy, this type of policy is available. There are no medical requirements. Every applicant is approved. The payout works like a graded policy, most companies simply return all premiums paid with interest if the insured dies during the waiting period.Free Download
  Final Expense Life Insurance Handbook

• How Do You Know Which Type of Policy is Best?
  

  
  There are a few things to consider...

• How is your parent's health? This is one of the more important questions you have to consider as their insurability affects the products you can consider. Will your parent want to take the medical exam? Fully underwritten coverage usually takes at least four weeks, and often longer. Getting medical records is the primary reason this coverage takes a while to put in force. Records can take anywhere from one to six or more weeks. The larger the health facility, the longer the records typically take.

• How much insurance are you looking for? This will help you hone in on which type of coverage is best suited to fulfill your goals. Obviously a small amount (less than $25,000) is only offered for final expense coverage. If your parent wants $100,000 or more of coverage, it makes sense to get one fully underwritten policy.

• How much effort do your parents want to expend getting life insurance?

• Talking to an independent agent who is experienced in dealing with seniors will help you determine what kind of insurance will work best. Your agent will ask questions that will help them help you determine which type of coverage will make the most sense. 

Buying Life Insurance for your Father or Grandfather 

Men are more expensive to insure than women. This is because women live longer than men (as a rule). Most likely, your Mother or Grandmother will be alive when your Father or Grandfather passes. Life insurance makes a difficult time just a bit easier. 

Buying Life Insurance for your Mother

As women usually live longer than men, your Mother may be the last of the pair to pass. The children will be responsible for making and paying for all of the final arrangements. Again, life insurance takes one burden away.

Funeral Services

If you have insurance, when the insured passes, many funeral homes will provide services without the cash in hand. They will have the beneficiary sign an assignment form essentially making the funeral home payee for the amount of the services provided. The beneficiary will then get the balance of the life insurance policy.

The Bottom Line

Talking to your Mother and/or Father about purchasing life insurance may not be the easiest conversation to have. But you may find it to be a necessary one. Get all the facts before you start. A conversation with an independent life insurance agent will give you indispensable information to share with your parents, including pricing. Have that talk today because life insurance gets more expensive every year you wait.

life insurance quotes

The Definitive Guide to Underwriting Life Insurance Over 50

When you apply for a life insurance policy, your application will go through underwriting. There are underwriting differences between types of policies and insurance carriers. Let's look at how underwriting life insurance over age 50 works and how this may help you decide what type of coverage to get.

Fully Underwritten Life Insurance

 

Because the insurance carrier has the most information about you, these prices are usually the least expensive policies available. These can be term, universal or whole life policies. The face amount of the policy can be any amount that the carrier allows.

When a policy is fully underwritten, it means you will take a paramedic examand the insurance company may request to see your doctor records. For the exam, someone will come to your home or work, or you can go to their office. They will take your height, weight, and blood pressure. They will take a complete medical history. They may do an EKG. You may have to complete a senior supplement (more explanation later). There is no cost to you, and most importantly there is no disrobing!

Every company has slight differences in their underwriting guidelines. For example, some carriers are more lenient with their weight guidelines than others. Some carriers are not as strict about your sugar level for diabetics. And so on and so on.

 

It's going to sound like there are so many things the insurance company looks at that you will never be able to get coverage. Not true. It sounds like a lot, but it's not really. Most of our applications are approved the first time around, but if for some reason you aren't, we will have other options for you. (And since we will already have your exam done and perhaps records received, it would be a very quick application process the second time around!)

 

Underwriting Essentials

These include:

• Build- height and weight. Some carriers use your BMI. Others just have a chart showing agents the minimum and maximum weights per height. Some have different charts for men and women. Some only show maximums. Many carriers have more lenient build charts at 60 or older. But, obviously, the better your weight for your height, the better underwriting rating you can get. 
• Blood pressure- Most carriers show their agents the maximum blood pressure levels per underwriting class. Most carriers have more lenient maximums for life insurance applicants age 60 and over. Your blood pressure will be taken three times and the scores will be averaged.
• EKG- Depending on your age and the amount of insurance you are applying for, you may have an EKG done. 

• Blood Testing and Urine- Many people ask if they can use the testing at the doctor's office. The answer is no. All insurance companies want to do their own tests. They will do many of the same tests your doctor orders, but they will do additional testing. Some of these additional tests are for nicotine, drugs, alcohol abuse, liver and kidney function tests.
  • Nicotine-Tell your agent the truth about your nicotine usage. It will show up in your blood test! Some carriers will give you non-smoking rates depending on your usage, but it must be admitted on your application and exam. Talk to your agent so that they can tell you which company will treat you as a non-smoker as the prices are much better. For cigarettes, you can smoke up to 2 per month and get non-smoker rates with one carrier only. Cigars differ from one carrier to another as does chewing tobacco. E-cigarettes are treated the same as cigarettes. Nicotine patches and gum count. Talk to your agent so you can get the best rating.
  • Diabetes-We are discussing Type II diabetes here. Your age at onset is the first thing that's important. Then the insurance company will test to see how well your diabetes is controlled. They want to see your A1c score which measures your average sugar levels over the last three months. It is an important indicator of your control. Another factor is how you are treated, diet and exercise alone, pills, or insulin? Tell your agent as some companies are more lenient with diabetics than others.
• Cancer- Every type of cancer has it's own underwriting guidelines and there are too many to mention here. That said they type and stage of the cancer is important. How long ago the cancer occurred and has it stayed in remission are important. Some skin cancers can get the best ratings, others perhaps not. Again, your agent is your best resource to help you understand how this will affect your ability to get insurance. (Final expense policies may offer a good option here.)
• Family History- The insurance carrier will ask if your parents or siblings were diagnosed with or died from coronary artery disease, cerebrovascular disease, diabetes or cancer before age  60 or 70. Some carriers will lower your rating only for a death, others will just for the diagnosis. Some will only consider your parents, some will consider both parents and siblings. Some carriers don't consider this metric once the applicant is over age 70.
• Cognitive Testing- If you are older, carrier will require you to have some simple cognitive testing. You will have to draw a clock face and show a time like 10 minutes to 11. They will ask the date, where you live, who is president and other simple requests. They want to make sure your memory still works. 
• Doctor Records- If you are 60 or over, the insurance carrier is going to want to see that you have regular doctor visits. If you haven't been to the doctor in the last two years, you probably will have a problem applying for fully underwritten coverage. The insurance company will usually request the last five years of records. Doctor records are what usually slows down the underwriting process. It can take up to three or four weeks to get records. We do our best to get them sooner, but it doesn't always happen, especially if your doctor is at the Veteran's Administration or a large HMO like Kaiser Permanente.
• Questionnaires- The underwriter may request more information from you, depending on their findings. There are questionnaires for many issues including hazardous sports, aviation, alcohol and drug use, and foreign citizenship and/or travel. An underwriter can ask you about anything.
• Driving Record- The insurance company will order your driving record. They want to see if you have any tickets for drunk driving or excessive speeding tickets or other moving violations. They want to see if your license has been suspended or revoked.
• Rx Database- Life insurance underwriting requires that they check your prescriptions to make sure you told them everything. They will confirm that the database matches your answers. 
• MIB- The Medical Information Bureau has a record on you if you have ever applied for insurance. Insurers will report to the MIB if you have any health issues, driving issues, hazardous sports. This allows companies to confirm your application answers and make sure you don't omit something. You can get your MIB report and review it and if necessary, dispute an entry. All MIB entries are coded, so only member insurance companies can understand them and there is little to no chance of anyone getting your info.
• Questions- The underwriter can you for more detail on any part of your application or the information they get on their database searches.

For a fully underwritten policy, it can easily take four to six weeks from application time to approval if your medical records are ordered. These policies will generally be the least expensive options for coverage because the insurance carrier has the most information on which to base their decision.

Accelerated Underwriting Programs

These are programs where you may be able to get a policy without an exam or blood and urine. Numerous carriers offer accelerated underwriting. Some offer it for term policies only, some for permanent policies, some for both.

The age range is typically 18-50 or 60 years old. You will have to answer health questions on your application. If all works out, you can be approved in about a week. If you don't qualify for this program, you can still apply for a fully underwritten policy.

Simplified Underwriting Products

Coverage with simplified underwriting are called final expense policies. These policies, like accelerated underwriting policies do not require an exam or blood and urine testing. 

The big difference is that these policies have a face amount between $2,000 and up to $50,000 of coverage. If you want more coverage, you would need to apply through multiple carriers. Many of these policies only cover applicants from age 45 to 85. There are one or two carriers who go up to age 90 in certain states.

Most of the health questions relate to the last two years, although some are for a longer time. Your answers will determine what level of coverage you can purchase. Most insurance carriers will check the MIB and a prescription database. Some carriers require an interview where you will answer the questions on a recorded phone line and often you will be told if you are approved at that time.

There are different levels of final expense life insurance policies. The best is a level benefit. This means your insurance begins on the first day once your policy is put in force. 

If you only qualify for a graded benefit, then the death benefit phases in as follows. Some companies will return premium paid plus interest for the first two years, with full coverage after that. Some do this with a three year exclusion. Some phase your death benefit percentage over three years with increasing returns each year.

You may find that even if you can't qualify for fully underwritten coverage, you can get a final expense policy. These policies are all permanent policies. They are whole life coverage. The cost will be a little more than a fully underwritten policy, but as you now understand, the insurance carrier has a lot less information to consider.

No Underwriting Policies

Yes there are policies that do not require any underwriting. They are called guaranteed issue life insurance. There are very few companies that write this type of coverage. If you cannot qualify for any of the above discussed policies, then this is the only type of life insurance you will be able to obtain. A guaranteed issue policy will be the most costly type of coverage.

These policies have a two year period where they only return your premium plus interest. After that they would pay the full death benefit. This coverage starts at age 40 or 50 and goes up to age 85. The maximum coverage available is usually $25,000 per company.

Getting a Quote

As you can see, there are many factors that help determine what your final underwriting rating will be. When you try to get a quote on the internet, you can't adjust for many of these issues. However, an independent life insurance agent should have a quote engine that take these items into consideration so your quote is more accurate. (We have one!). Also an agent will be able to search many more carriers than you can find on the internet yourself.

Bottom Line

As you can see life insurance underwriting takes many different things into account. One of the things we do is to send you instructions for your exam (and cognitive testing if needed) so that you can get the best results possible. If there's a problem, we communicate with you and the insurance company to present your issues in the best way possible. We walk you through underwriting and all steps of getting your life insurance coverage to make the process painless.

lifenetinsurance

Why Guaranteed Premium Life Insurance is a Good Value

Universal life insurance can be a complex product. But it doesn't have to be. When you think about purchasing permanent life insurance this product is one you have to consider.

What Is Universal Life Insurance?

Universal life insurance is a product that is able to insure you for your lifetime.  The cost can vary greatly from one policy to another (even with the same carrier) depending on how it is structured. There are several kinds of universal life insurance (UL):

Guaranteed Premium UL- In this type of policy, the premium and the face amount will remain level during the life of the policy (as long as premiums are paid on time). These can be setup so that the policy lasts to age 95, 100, 105 or 121, or another age if you wish. They can also be set so that the policy amasses minimal, if any, cash value. When structured this way, they are going to be the least expensive permanent policies available. 

Indexed UL or Equity-Indexed UL- The cash value in these policies can be tied to different stock indexes, such as the S&P 500, Nasdaq, etc. How the index performs will determine your returns. Your money is not actually invested in the index, just tied to it for interest accounting. You can't lose any of your cash value, but it can grow! 

Variable UL- This policy is considered a security and is only available for purchase through a broker-dealer. This is a high risk product and should only be bought by a sophisticated investor.

Some Factors Affecting the Premium Are:

• Your underwriting rating-  This rating is affected by many factors, some of them are your age, build, medications, health history, family health history and more.
• Cash accumulation- Do you want to have the policy earn cash value ?  If so, you will pay a higher premium.
• Do you want a guaranteed death benefit?
• Do you want guaranteed level premiums?
• Do you want riders- such as waiver of premium or accidental death benefit riders?  They will add to the premium too.

Some Pros and Cons:

• Pro- the policy will last for your lifetime with a level death benefit and face amount.
• Pro- with minimal cash value, guaranteed premium universal life will be the least costly permanent policy available.
• Con- the policy is more expensive than term insurance. Only a small percentage of term insurance is paid out, however permanent policies have a much higher payout percentage and so cost more. 
• Con- It's extremely important to pay your premiums on time. The guarantees structured are dependent on payment in a timely manner. If you miss a payment or are late, it can affect the guarantees and your premium could increase. 

What is Guaranteed Premium Universal life insurance?

In this video Lenny will explain how Guaranteed Premium Universal Life Insurance works.  And of course he will talk about the universal life insurance pros and cons!

Guaranteed Universal Life Insurance Policies Requirements

The type of life insurance you purchase will depend first on your needs. If you need coverage for your lifetime this type of universal life policy will be the least expensive.

As I mentioned earlier, this product requires full underwriting. You will be required to have a paramedical exam. An examiner will come to your home or office and take a complete medical history. They will take your height, weight, and blood pressure. You may need an EKG, and if so, they will bring the machine. There is NO disrobing. They will draw blood and you will give a urine sample. 

Then your application, exam information and laboratory results will go to an underwriter at the insurance company. They will determine if they need more information. If so, you will be asked more details, and /or your doctor records will be requested. (The insurance carrier or your agent will order these.)

They will run a motor vehicle report and check your driving record. If you have multiple speeding ticket, or a DUI, you may have difficulty getting insurance coverage.

The insurance company will order your MIB (medical information bureau) record. If you have previously applied for life insurance there will be a file. If you were declined or rated up, there will be a code telling the current insurer to find out more information. There are no details in the MIB.

Using all of this information, the underwriter will make a decision about your insurability and decide on your rating. The better your rating, the lower your premium. 

We have had cases where our internal underwriter has gone to the insurance carrier and made a case for a better rating than we received. Many times we are successful in getting a better rating. Unfortunately, not always!! As agents generally cannot talk to the case underwriter, this is a nice benefit of using an agent with an independent in house underwriter.

The Bottom Line

We hope this article helps you to understand the Guaranteed Premium Universal Life Insurance pros and cons.  We find that this policy is often able to fit the needs of most of our clients who want permanent coverage.  The guarantees make this product very desirable, and the lower cost doesn't hurt either.  

Video Transcript:  

Hi. I'm Lenny Robbins at LifeNet Insurance Solutions coming to you today from a rainy Seattle and I'd like to talk with you about a permanent type of policy known as a guaranteed premium universal life policy. This is one of the two major types of life insurance that is designed to stay in effect as long as you live.

The benefit to this type of policy is that it is designed with a premium that will never change as longs as the premium is paid in a timely fashion. So you can always be aware and comfortable with the fact that you will not have increasing premiums at a time when the coverage is most needed. The negative or the con of universal coverage is that it is designed without cash value so that you will not be able to withdraw money from the policy if you need additional cash. 

However, you will find that premiums are generally substantially lower than it might be in a whole life policy. And in fact, today most companies are not in the whole life business any longer because of the ability of this type of universal coverage to meet most needs. And we find that it allows people to pre-plan effectively as they get older.

So whole life insurance is just more expensive, not done any longer by most  carriers. Universal coverage is clear, easy to understand and best of all, it's easy to compare one carrier against another to see where you're going to get your best value.

life insurance for seniors over 50

How To Get The Best Quotes for Seniors Life Insurance

Comparing quotes online is a logical first step in the seniors life insuranceshopping process, but wise consumers won’t stop there. Online quote enginesare great for getting an idea of what’s out there, but they’re not the smart way to buy. A life insurance agent is the best way to buy life insurance.  For certain types of life insurance, you can't even get a quote without an agent.

Step One: What Kind of Senior Life Insurance Do I Want?

One of the first decisions you need to consider is what type of coverage you want to buy. You can get term life, whole life, or universal life, and each type has multiple choices. Let's do a quick description of these so you know what they are.

 

• Term Life Insurance
  As the name implies, this is insurance that lasts for a specific period of time. We prefer level term insurance, where the premium and the face amount remain the same for the life of the policy. You can get insurance for one year up to 30 years (depending on your age). 
   Download -- Life Insurance 101
• Permanent Insurance
  This type of coverage will last for your lifetime and includes both whole life insurance and universal life insurance. These policies will usually be more expensive than a term policy, however, as we age, the difference between the premiums shrinks. You may find a permanent policy is not that much more expensive. (Also, permanent policies have more lenient underwriting, so you may get a better rating!)
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  Baby Boomers Guide to Life Insurance
• Universal Life Insurance
  These are permanent policies that are very flexible and can be structured to have little to no cash value, a level premium and a level face amount. Set up this way, they are usually the least expensive permanent policy on the market. Minimum face amounts may be $25,000, $50,000 or $100,000. That will depend on the state you live in and the carrier you choose.
• Whole Life Insurance
  The whole life insurance policies are generally final expense coverage. These policies range between $2,000 and $50,000 of insurance. They have simplified underwriting and no exam is required. They can be placed in force very quickly. For seniors who want less than $25,000 of life insurance, this is the only option. 
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  Final Expense Life Insurance Handbook
  
  

Step Two: How Do I Get A Quote?

Choice One: Let's Look for On-Line Quotes

• You will be able to find seniors life insurance quotes online for all of the types of coverage mentioned above. The question will become, how accurate are they? (And what don't you know, that you don't know? More on this later!)
• If you begin your shopping for life insurance by going online, you’ll find lots of sites urging you to buy immediately using their site.  The first thing you see on their site is a form to fill out to get a quote. This is particularly true for term life.
• After supplying some basic information, perhaps including a few health questions, you’ll be given recommended buys—with the hope that you’ll choose from among those carriers and look no further. 
• The website may limit the number of carriers it shows you because by limiting sales to a few carriers, they can earn higher commission levels and bonuses for the agency.  Unfortunately this doesn't do you any favors. 
• After going to a large insurance site and using their online quote engine, once you decide on a carrier, you click the apply button. You’ll be called by an agent working for that site, who theoretically is supposed to help you with your decision. But, in reality, this agent’s primary purpose is to convince you to buy from one of the the carriers he or she represents.
• At this point, you’re not getting genuine advice—you’re being guided to buy from that specific carrier or one of the other few carriers they represent.  They are like order takers, fielding one call after another. You will not have much or perhaps any more interaction with them during the underwriting process, as all they do is take orders.
• Someone else will follow your application and (hopefully) make sure all of the requirements get to the company so that your file gets to an underwriter.
• This may work fine if you are in your 20s or 30s or maybe even your 40s and you are healthy.  Once you start to have medical issues, lifestyle issues and are older, this is probably not your best option. The more "issues" you have, the more important it is for you to work with an agent.
• Most of this refers to term life insurance. If you are looking for permanent coverage, you may still find the same applies, but hopefully this is not how you will find the best coverage. (Universal life insurance has many different flexible options to choose from. Getting a quote online makes no sense because you won't know how the policy is structured. You need to speak with an agent to be sure you get the right fit.)

Choice Two: Choose an Independent Agent for a True Advisory Relationship 

A successful independent life insurance agent doesn’t operate that way. Because they’ve built their business on customer satisfaction and long-term relationships you are not just another order to take. Once you’ve looked around on the Internet, when you speak to an independent life insurance agent, they can provide the following.

• Your agent has the ability to fully understand your situation, taking as much time as necessary to get the details needed to give you a more accurate quote.
• Your agent has experience which gives them insight into the range of options available to meet your insurance goals.
• Your agent has thorough knowledge of various life insurance strategies and how they relate to solving  your particular needs.
• Your agent has the knowledge to help you find the carrier which will look at your application and be most likely to give you the most favorable underwriting rating. (Here's the part you don't know you don't know!) Every insurance company has slightly different underwriting guidelines. You may get approved at different levels from multiple companies. For simplified issue products, you may get approved by one carrier, but declined by another. This is an important benefit of talking with an independent agent.
• Your independent agent has a strong desire to find the best solution to ensure your satisfaction, because they want you as a client for life.
• Your independent agent is not tied to any insurance company. They have access to multiple carriers, so that the advice you’re getting isn’t skewed toward a particular few. They want to find you the best deal you can get.
• Your agent will provide timely follow up on requirements needed prior to and during the carrier underwriting your application.
• Your agent will deliver personal communication on a regular basis to keep you informed of your applications progression to underwriting
• Your agent will have options for you if the underwriting decision is not what you had hoped for. There are always more choices.

Being independent agents, we want our clients to get the best deal on life insurance that they can. Sometimes we have clients talking to another agent and the other agent gives them a lower price. Well, we all want the best pricing, but which agent is right? Probably the one you gave the most information to. It's nice to get a low quote, but is it really helpful if you can't qualify at that level? If you get rated differently, now you don't know if you have the best pricing at the new level. (Because one company is usually not the lowest cost carrier at all different ratings, you may not get the best value if you don't work with an independent agent.)

(Here's another thing you didn't know you didn't know!)This one is important...ONLY an insurance company can offer you insurance. (An agent cannot offer or guarantee any coverage, only the carrier can.) Your agent is giving you their best estimate of the rating you will receive. This is based on the information you share with your agent. But an insurance company will have much more information when they make an underwriting decision. They will have your exam(if there is one) and lab results. They will have results from a pharmacy database and the Medical Information Bureau. In fully underwritten coverage, the carrier may order your medical records. As mentioned, they will have much more information to base a decision on than your agent. 

The Bottom Line

Buying online may seem more convenient, but it’s really not. You still have to complete an application and possibly take a medical exam. And in exchange for the illusion of convenience, you’ll be missing the opportunity to get legitimate expert guidance from an independent life insurance agent who has a vested interest in helping you get the best value. 

As you can tell, we favor you working with an independent agent. Find someone you are comfortable with, check their reviews, and feel free to look them up on the Insurance Commissioner's site in their state of residence. We want you to be comfortable with your agent as getting seniors life insurance quotes is one of the most important steps  to keeping your family secure.

Download
Final Expense Life Insurance Handbook           Free eBook
Baby Boomers Guide to Life Insurance

life insurance for seniors

Getting Affordable Life Insurance for Elderly Parents

If you are lucky enough to have elderly parents or grandparents (or aunts or uncles) you may find you are needing to help them purchase some life insurance. Unfortunately, many of us wait until we are older to decide we need some coverage. Many elderly family members want some final expense insurance and we can help you make it easy for all involved.

Reasons for Coverage

Did you know that there are many reasons why life insurance for elderly parents is a good idea? You need to consider not only the reasons they may need life insurance, but what are the consequences if they don't purchase coverage. Who will pay for their final expenses?  Let's figure out the best ways to approach getting your family insured.

Here are some of the more common reasons why life insurance for elderlyfamily members may be needed.

• Final expenses- The average cost of a funeral in the United States is over $7000. That's the average, so depending on where you live and what your parents want, it may be even higher. Do your parents have enough savings to cover their final expenses? If not, who will pay for their funeral? (I know this is not a fun thought, but better to figure it out now than when the time comes!)Download
  Final Expense Life Insurance Handbook
• Debts- What is your parent's financial situation? Will they leave debts behind? Are there assets to cover the debts or will they be left for you? Life insurance can be used by the beneficiary for anything at all and is generally a tax free payment. 
  • Medical Bills- Fact, most people have the highest medical bills near the end of life. So you may find you or a surviving parent is left with huge medical bills to pay off.
  • Mortgage Payments-Do your parents have a home? Will the house be paid off when they pass away? If so, it will be an asset for you. If not, what do you do? Some life insurance money may ease this burden and allow you to keep the property.
  • Inheritance- Do your parents want to leave a little bit of money to their children or grandchildren? If they are on a fixed income, life insurance can increase the amount of money left at the end of their lives.
  • Special Needs Child or Grandchild- If you parents have a special needs family member, they will need help for their entire lifetime. Life insurance allows for support for their special needs child.
  • Other Reasons- You may find a family member needs coverage for something we haven't thought of!

  What Kind of Coverage is Available?
  
  Senior citizens can purchase term life, whole life or universal life. There are different types of policies available based on your needs, finances and insurability. 
  
  However, when you are dealing with seniors and end of life reasons for life insurance, term policies don't make a lot of sense. If your parent outlives the term period, the cost of that policy will skyrocket and likely make it not affordable, or they may be too old to purchase any coverage or it may be too costly. You only want to look at policies that last for their lifetime.

   

  You can purchase coverage up to age 89. However, at that age, the premiums are very expensive! It makes sense to get insurance earlier, when the cost is more manageable. Universal life policies are available up to age 90. Final expense coverage can be purchased through age 89 for level benefits. For graded benefits, age 80 is usually the maximum. Guaranteed issue policies can be bought through age 85.  

• Universal life insurance is permanent coverage that is very flexible. It can be structured so that cash does not accumulate and the premiums and face amount are fixed. (These policies are called guaranteed premium universal life insurance.) There is a $25,000 minimum face amount. (Some states and/or companies require a higher minimum.)
  • This is the least expensive type of permanent policy available. It requires full underwriting. That means they will have a paramedic exam, blood test, urine test, and full medical history. The insurance carrier  may also require a simple cognitive exam. Doctor records will be ordered. If you family member doesn't go to the doctor regularly, they will not be able to get this type of policy.

• Whole life insurance is permanent coverage too. 
  • There are whole life policies that are fully underwritten for higher amounts of coverage, however, you will find that Universal policies for the same amount of coverage will likely be less expensive. There are very few companies that even offer this kind of coverage.
  • Final expense policies- These are whole life policies that have simplified underwriting. That means there is no paramedic exam, blood or urine. It is generally easier to qualify for these types of policies. The policies range from $2,000 up to $40,000. For more coverage you would have to purchase policies from multiple companies. If you qualify at the best level available, these policies pay the full face amount on day one.
  • Graded final expense policies- If you can't qualify for the best level final expense coverage, most carriers have at least one other level. Graded final expense coverage is not fully in force on day one. If the insured dies during the graded period (two or three years), the beneficiary will receive either a percentage of the face amount, or all premiums paid will be returned with interest. Every company has their own method. 
• Guaranteed issue life insurance- If your parent cannot qualify for any medically underwritten policy, this type of policy is available. There are no medical requirements. Every applicant is approved. The payout works like a graded policy, most companies simply return all premiums paid with interest if the insured dies during the waiting period.Download
  Final Expense Life Insurance Handbook

• How Do You Know Which Type of Policy is Best?
  

  
  There are a few things to consider...

• How is your parent's health? This is one of the more important questions you have to consider as their insurability affects the products you can consider. Will your parent want to take the medical exam? Fully underwritten coverage usually takes at least four weeks, and often longer. Getting medical records is the primary reason this coverage takes a while to put in force. Records can take anywhere from one to six or more weeks. The larger the health facility, the longer the records typically take.

• How much insurance are you looking for? This will help you hone in on which type of coverage is best suited to fulfill your goals. Obviously a small amount (less than $25,000) is only offered for final expense coverage. If your parent wants $100,000 or more of coverage, it makes sense to get one fully underwritten policy.

• How much effort do your parents want to expend getting life insurance?

• Talking to an independent agent who is experienced in dealing with seniors will help you determine what kind of insurance will work best. Your agent will ask questions that will help them help you determine which type of coverage will make the most sense. 

Buying Life Insurance for your Father or Grandfather 

Men are more expensive to insure than women. This is because women live longer than men (as a rule). Most likely, your Mother or Grandmother will be alive when your Father or Grandfather passes. Life insurance makes a difficult time just a bit easier. 

Buying Life Insurance for your Mother

As women usually live longer than men, your Mother may be the last of the pair to pass. The children will be responsible for making and paying for all of the final arrangements. Again, life insurance takes one burden away.

Funeral Services

If you have insurance, when the insured passes, many funeral homes will provide services without the cash in hand. They will have the beneficiary sign an assignment form essentially making the funeral home payee for the amount of the services provided. The beneficiary will then get the balance of the life insurance policy.

The Bottom Line

Talking to your Mother and/or Father about purchasing life insurance may not be the easiest conversation to have. But you may find it to be a necessary one. Get all the facts before you start. A conversation with an independent life insurance agent will give you indispensable information to share with your parents, including pricing. Have that talk today because life insurance gets more expensive every year you wait.