If you were ever to become disabled or suffer a chronic illness or age-related debility that requires you to pay for help feeding and dressing yourself or similar assistance for an extended period, long-term care insurance could be a valuable thing to have. This insurance pays for services regular health insurance doesn’t cover, including assistance with activities of daily living at home or in an assisted living center or nursing home. Timing is an important consideration when it comes to buying long-term care insurance. If you’re thinking about long-term care insurance, consider talking it over with a financial advisor.
Long-Term Care Insurance Basics
Long-term care insurance can help you pay the costs of receiving extended care in nursing homes and assisted living facilities, as well as in-home assistance with activities of daily living such as bathing and getting dressed. These are costs that health insurance, including Medicare, typically does not cover. Another government health plan, Medicaid, can pay for these services. However, only people with limited financial means can generally qualify for Medicaid.
Long-term care insurance works similarly to other types of insurance. That is, in exchange for paying a premium, usually monthly, the policy will pay providers for the care they deliver or, alternatively, reimburse you for your out-of-pocket costs. However, long-term care insurance has special features that distinguish it from some other types of insurance.
For instance, unlike auto insurance, which is mandatory in most states, long-term care insurance is entirely voluntary and most people do not purchase it. Also, it’s less likely to be provided as a benefit by employers than health and life insurance coverage. Finally, timing is a bigger factor with long-term care insurance. When you buy it is a major consideration. Here’s how to factor timing into the decision.
Do You Need Long-Term Care Insurance?
The cost of long-term care can be daunting. According to LongTermCare.gov, the price of a semi-private room in a nursing home averages $6,844 per month or $82,128 per year. However, that doesn’t mean everybody needs long-term care.
People who have significant assets that they want to protect from having to expend for long-term care are more likely to benefit from long-term care insurance than someone who has a small net worth. Also, good candidates for long-term care insurance generally will have a good income so they can pay the premiums. Gender can also be a factor since women who need long-term care typically need it longer than men.
When to Buy Long-Term Care Insurance
Buying long-term care insurance isn’t cut and dry for everyone and there are a number of things that you need to consider. Chief among these considerations might be the timing of when you buy. If you think you want to buy long-term care insurance, here are considerations on timing:
Coverage is permanent: Once you acquire a policy, you are covered for life as long as you keep paying the premiums. Your coverage can’t be canceled except for non-payment or if you voluntarily relinquish the policy.
Premiums are expensive: The average premium for a 55-year-old man with $165,000 in immediate coverage in 2022 was $2,220 per year, according to the American Association for Long-Term Care Insurance (AALTCI).
Premiums are likely to go up: While your insurer can’t hike your personal premium because you get older or have a claim, it is not uncommon for premiums for groups of policyholders to go up periodically and, sometimes, steeply.
Health matters: If you are in less than good health when you apply, your initial premium will be higher than if you buy a policy when you are healthy. For that reason, it’s often better to buy long-term care insurance before your health starts to fail.
Age matters: If you are older when you buy long-term care, even if still healthy, you’ll pay more than if you bought at a younger age.
You have to qualify to even get coverage: If you are seriously ill or already need long-term care when you move to buy a policy, you may be rejected. Again, the time to buy it is before you need it.
These considerations combine to complicate the decision of when to buy long-term care coverage. For instance, if you buy insurance at a younger age, many years before you are likely to need it, you’ll be paying expensive premiums for many years. And it’s a good idea to keep in mind the fact that, according to the AALTCI, only about half of people who buy long-term care insurance ever use it. The rest have paid their premiums for no tangible financial benefit.
Add it up and the most common time when people buy long-term care insurance is between ages 55 and 65. In many buyers’ estimation, this is the sweet spot between having to pay higher premiums if they wait to purchase and having to pay lower premiums for a longer time if they purchase sooner.
The Bottom Line
Timing is an important consideration when deciding whether or not to buy long-term care insurance. Most purchasers acquire coverage when they are aged 55-65. Waiting longer risks having to pay higher premiums because of advancing age or declining health. Buying sooner means having to pay premiums for a longer period of time before the coverage is likely to be of value. Individual circumstances, such as family health history, personal assets and income also may be important factors in deciding when or even whether to buy long-term care insurance.
Tips for Buying Insurance
A financial advisor can help you decide how and whether long-term care insurance fits into your overall financial plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you are considering buying life insurance, you are probably wondering how much coverage to get. SmartAsset’s life insurance calculator can give you an answer based on your location, age, income and other factors.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
Life insurance coverage is an essential financial tool.
The proceeds from these policies can often make the difference between loved ones dealing with long-term financial hardship or being able to move forward with paying off debts or paying their everyday living expenses in the case of the unexpected.
When considering the best life insurance policy for you, it is important to determine the type and the amount of coverage that you require, as you don’t want those you care about to be underinsured.
An equally important part of the equation is the life insurance carrier from which you purchase your plan. Something to consider as well is whether your prospective insurance company provides key person insurance.
It is often overlooked or not considered when planning for the future, but it can be the difference between a business making it or not upon death or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company. Take the time and see if it’s something you need to get for your business or firm.
You will want to be sure that the carrier is strong and stable from a financial standpoint. Another key criterion is that the carrier has a good reputation for paying out its claims. One company that meets these factors is Aflac.
The History of Aflac Life Insurance Company
Aflac (American Family Life Insurance Company) began offering insurance coverage to its customers more than 60 years ago. The coverage that this company is considered to be “voluntary” in that the policies can supplement other insurance coverage that an individual may already have.
The founders of Aflac are three brothers – John, Paul, and Bill Amos. In starting this company, the brothers saw a need for financial protection if a medical need occurs. Aflac had its beginning in Columbus, Georgia, and it started with just 16 employees and 60 sales agents.
In just the first year, Aflac had more than 6,400 policyholders and roughly $388,000 in total assets. Over time, the company grew and expanded its list of coverage offerings to its policyholders.
One way that the company grew exponentially was by offering its products to the workplace. Here, large numbers of employees of a company could sign up for protection at one time. As the company grew, it started to offer its products internationally, and in 1974, the products were offered in Japan. Within just one year of this occurrence, Aflac has written roughly $25 million in insurance premiums. During that same year, the company also started trading on the New York Stock Exchange.
The 1980s were a time of substantial growth for Aflac – and in 1982, the company had more than $1 billion in assets. In the decade of the 1990s, the company began its now-famous advertising campaign, which features the Aflac duck.
In the mid-1990s, the company also introduced a SmartApp. This allowed agents to issue insurance business electronically – which sped up the process a great deal and allowed customers to be covered much more quickly as well.
Due in large part to its innovative advertising strategy, 9 out of 10 people recognize the Aflac name and the brand. Ever since its beginning back in 1955, Aflac has put the customer first. It does so primarily by paying out its policyholder claims in a timely and efficient manner.
Today, Aflac – a Fortune 500 company – has more than 50 million policyholders. In addition to just offering protection products, Aflac is also involved in the communities in which it serves. For example, in 2011, the company contributed more than $1 million to the Red Cross for tsunami relief in Japan. And, in 2012, the company was rated as number 69 on Newsweek’s “Green Rankings” of the largest 500 companies. By the year 2013, Aflac had appeared on Fortune magazine’s list of the World’s Most Admired Companies for the 13th time.
The company continues to grow and prosper, due in large part to helping its customers protect against the loss of income and assets, as well as helping them to pay supplemental medical expenses. Aflac has a wide reach in terms of attracting potential customers. Its key distribution channels include individuals at the work site, in retail locations, and in their home. Presently, Aflac is the number one provider of voluntary insurance at the worksite in the U.S.
Aflac’s Insurer Ratings and Better Business Bureau Grade
Aflac has very high life insurance company ratings that are provided by the insurer rating agencies. These ratings are indicative of the company’s overall financial strength, as well as its timely benefit payout to the company’s policyholders. These ratings include the following:
A+ from A.M. Best
A+ from Standard and Poor’s
As3 from Moody’s
In addition, Aflac is also an accredited member of the Better Business Bureau (BBB). It has been a member of the BBB since January 1, 1958. Also, the company has been given a grade of A+ from the Better Business Bureau (on an overall grade scale of A+ to F). This puts them on par with other top life insurance companies like Transamerica or Banner.
Throughout the past three years, Aflac has closed a total of 497 complaints through the BBB. Of these 497 complaints, 357 had to do with problems with the company’s products or services. Another 96 of these complaints were concerning billing or collections issues, 25 had to do with advertising or sales issues, 11 were about delivery issues, and eight were in regard to guarantee/warranty issues. There are also 20 customer reviews that have been posted on the Better Business Bureau’s website in regard to Aflac.
Life Insurance Products Offered by Aflac
Aflac offers several options for life insurance coverage. These include both term and permanent protection. With term life insurance, a policyholder is covered with death benefit protection only, without any type of cash value or savings build-up. Term life insurance is purchased for a certain period, or “term,” such as ten years, 15 years, 20 years, or even for 30 years, depending on the policy holder’s needs.
Permanent life insurance coverage offers both death benefit protection, as well as cash value, build up. With a permanent life insurance policy, the coverage can last throughout the policy holder’s life, provided that he premiums remain paid.
This type of life insurance protection will also allow tax-deferred growth of the funds that are inside of the cash value component. This means that there are no taxed due on the growth of these funds unless or until they are withdrawn.
A permanent life insurance policyholder may be able to borrow or to withdraw these funds for any reason at all – including the payoff of debt, the supplementing of retirement income, or the assurance that a child or a grandchild will be able to pay for their college expenses.
There are no medical questions to be answered on the Aflac life insurance policies. This means that even those individuals who may have certain health conditions can still qualify for life insurance coverage.
The plans offered by Aflac are also portable. This means that if an individual purchases a plan as a part of his or her employee benefits package if they leave the company, they may still take their life insurance coverage with them.
Aflac also offers juvenile life insurance coverage. With these plans, a child may be protected by providing insurability as an adult, as well as by providing them with a jump-start on the road to financial independence.
The company also offers AD&D coverage (accidental death). With the Aflac accidental death coverage, if the insured passes away due to injuries that are sustained from a covered accident, then an additional amount of proceeds will be paid out to his or her named beneficiary.
On the insurance plans that are offered through employers by Aflac, there is typically no direct cost to the company. Rather, employees can pay for their coverage via direct payment of the premiums through their weekly paychecks.
Aflac offers a life insurance calculator directly on their website. This can help an individual with determining just how much life insurance coverage they may require based on their specific situation.
Other Products Offered
In addition to just life insurance coverage, Aflac offers a wide range of other protection and supplemental products. These include the following:
Accident insurance – The accident insurance plan via Aflac offers cash benefits to help provide financial support during the various stages of accident care, as well as recovery. These proceeds may be used by the policyholder to help with paying for emergency treatment, or for treatment-related lodging and transportation.
Cancer insurance – The cancer insurance coverage that is offered via Aflac can help to provide a lump sum of proceeds that may be used for a wide variety of needs, such as treatment, living expenses, or uninsured medical procedures.
Critical illness insurance – Critical illness insurance protection can help to provide funds for helping with the cost of treatment of a covered illness. Having funds available can provide the peace of mind that may be required for helping an individual to recover.
Hospital intensive care insurance – Charges from a hospital stay can often be substantial – and in some cases, these may or may not be covered through a regular health insurance policy. With that in mind, a supplemental hospital insurance plan through Aflac can help. With Aflac, these funds can be made available very quickly, as the company has a one-day payment of claims.
Hospital indemnity insurance – With hospital indemnity insurance, policyholders can also be assured that uncovered expenses from their regular health insurance can be fully or partially taken care of.
Dental insurance – The dental insurance coverage that is offered through Aflac provides a wide variety of benefits, with no networks, deductibles, or pre-certification requirements to deal with. Just go through your local dentist and have your insurance information with you.
Vision insurance – Regular eye exams can do much more than just help with correcting one’s vision. These can also help to point out other health-related issues, such as high blood pressure or cholesterol, diabetes, or even a brain tumor. Having this coverage can be well worth the premium cost.
Also, Aflac also helps its client/employers with setting up benefits, such as through cafeteria plans. COBRA administration is also available through Aflac.
How to Get the Best Quotes on Life Insurance Coverage
When searching for life insurance coverage, it is important to work with an independent company that can help you in finding the very best rates. An independent company or agency will not be associated with just one single insurance carrier, but rather with multiple carriers. Because of this, you will be much better able to compare life insurance policies, benefits, and premium rates – and from there you can determine which of these will be the best for you and your specific needs.
If you are ready to begin the process of finding the best life insurance plan, then we can help you. We work with many of the top-rated life insurance carriers in the marketplace today, and we will assist you with obtaining all of the details that you require for making an informed purchase decision. We can do so for you very quickly, easily, and conveniently – all from your home computer, and without the need to meet in person with a life insurance agent. When you are ready to being, just fill out the quote form on the aide of this page.
We understand that the purchase of life insurance can be somewhat overwhelming. There are a number of variables that you need to be aware of, and you want to be sure that you are choosing the proper type and amount of insurance coverage.
The good news is that today, there are many options that are open to you. We will assist you with finding the one that best fits your specific coverage needs. So, contact us today – we’re here to help.
Life insurance is an important component of most all financial plans. That’s because when you have life insurance, you can be much better assured that your loved ones and survivors will be able to go financially in case of the unexpected.
The proceeds from a life insurance policy can be used for many different things, including the payoff of final expenses or other large debts, as well as ongoing living expenses so that loved ones won’t have to drastically change their lives.
When purchasing a life insurance policy, it is important to review several factors before moving forward. Certainly, narrowing down the right type and the amount of life insurance that you are applying for is essential. This is because you don’t want loved ones to be underinsured.
However, it is also essential to review the insurance company through which you are purchasing the coverage. That is because the insurance carrier should ideally be strong and stable financially, and it should also have a good reputation for paying out its policyholder claims. One insurance carrier that has an excellent track record in the industry is AAA.
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The History of AAA Life Insurance Company
AAA Insurance Company has been in the business of helping its customers since 1902. The company began as The Automobile Club of St. Louis. The company grew very quickly over the next several years. And, after opening regional offices throughout the state of Missouri, the firm changed its name to the Automobile Club of Missouri (ACMO).
Still, in its early stage, the company hired a young Harry S. Truman, who sold many memberships prior to setting out to pursue his military and political career. AAA introduced many new ideas into the auto insurance world, including roadside service.
Over the next several decades, the company continued to grow and expand, absorbing many smaller auto clubs throughout the state and throughout the country. In 1969, AAA Life Insurance Company became a part of AAA. This company offers both life and annuity products. Today, AAA Insurance is a large and thriving insurer that offers a wide variety of both insurance coverage and other financial products to its customers.
AAA Life Insurance Company Review
AAA Life Insurance Company is headquartered in Livonia, Michigan. Currently, the company has approximately 1.2 million policies in force. Not only does AAA Life Insurance Company help its customers to save and protect their financial assets, but the company is also very involved in community efforts. For example, over the past decade, AAA has supported various entities by raising money and / or serving in other manners. Just some of these organizations include:
American Heart Association
Alzheimer’s Association
American Red Cross
American Diabetes Association
American Cancer Society
The company also has an excellent reputation for providing outstanding customer service to its policyholders. The company provides information, including life insurance quotes, via the Internet, telephone, and / or through in-person visits with an agent.
Company Ratings and BBB Grade
AAA Life Insurance is considered to be financially strong and stable, and because of that, it is highly rated in the industry. The company has a rating of A- (Excellent) by A.M. Best, which is the fourth highest rating out of a possible 16.
The company is not an accredited member of the Better Business Bureau (BBB), nor has it been provided with a letter grade between A+ and F. However, over the past three years, AAA Life Insurance Company has closed a total of 18 complaints through the BBB.
Of these 18 total complaints, eight had to do with problems with the company’s product and / or service, another five were regarding advertising / sales issues, and yet another five were in regard to billing and / or collection issues.
Life Insurance Products Offered By AAA
AAA Life Insurance Company offers several options for life insurance coverage. These include both term and permanent policies. The proceeds from these policies can be used by loved ones and survivors for any need that they see fit.
Term Life Insurance Coverage
With term life insurance coverage, the policy offers pure death benefit protection only, with no cash value or savings build-up in the policy. These policies are purchased for a set period, or “term.” There are several term life insurance options that are offered via AAA. These include:
Term with Return of Premium
The term with return of premium policy is offered for periods of 15, 20, 25, or 30 years. Insured individuals can be covered for between $100,000 and over $1 million. With these plans, the insured is covered throughout the life of the policy. And, if he or she survives that time period, then the premiums paid into the policy will be returned. (There is an additional amount of premium that is charged for the return of premium option).
Traditional Term Life Insurance
With the traditional term life insurance product, coverage of up to $5 million (or more) is available, with a minimum death benefit of $100,000. Coverage terms can be chosen from 10 years, 15 years, 20 years, 25 years, or 30 years. The premium payments are guaranteed to remain level throughout the life of the policy. Also, an insured may have the option to convert this term insurance over into a permanent form of life insurance coverage.
Express Term Life Insurance
Express term life insurance from AAA Life Insurance Company may be purchased via the Internet. These policies offer coverage of between $25,000 and $250,000 and the term lengths that can be chosen from are 10, 15, 20, 25, or 30 years. Those who are between the ages of 18 and 75 are eligible to apply.
Permanent Life Insurance Coverage
AAA Life Insurance Company also offers permanent life insurance coverage. With permanent insurance, the insured has both death benefit protection as well as a cash value component within the policy that can allow savings to build up. These savings can grow tax-deferred.
There are both whole life and universal life insurance policy options that are available through AAA. Whole life insurance offers long-term insurance coverage with fixed premiums for life. The whole life insurance plans that are offered via AAA include:
Simple Whole Life Insurance
The simple whole life insurance policy is easy to obtain. Coverage may be purchased between $5,000 and $25,000. There is no medical exam required to qualify for this plan. Rather, there are only just a few health questions to answer. An insured may also be able to obtain funds early if he or she is diagnosed with a terminal illness.
Guaranteed Issue Graded Benefit Whole Life Insurance
For those who are between age 45 and 85, the guaranteed issue plan may be a good fit. This policy offers coverage without any medical exam or health questions. It also offers guaranteed premiums.
Universal Life Insurance Coverage
Universal life insurance is also a permanent form of coverage, except that it offer more flexibility that whole life concerning premium payment, as well as where the premium dollars go. AAA offers two universal life insurance policies. These include the Accumulator Universal Life and the LifeTime Universal Life policy.
Other Insurance and Financial Products
In addition to life insurance coverage, AAA Life Insurance Company also offers other products as well. These include annuities (both immediate and deferred), and accident insurance coverage.
Annuities can help individuals to both save for retirement in a tax-advantaged way, as well as to provide an income in retirement – and this income can last for the remainder of the annuity holder’s life, regardless of how long that may be.
With an immediate annuity, an individual deposits a lump sum. This can either be cash from a savings or investment account, or it can be through a “rollover” from an IRA account or a retirement plan such as a 401(k) account. The income stream from the immediate annuity will then begin right away, or within a very short time period.
A deferred annuity provides the ability to build up savings over time. Here, the funds that are within the annuity are allowed to grow on a tax-deferred basis – which can allow the money inside of the annuity to grow and compound exponentially over time. Then, at a point in the future, the income stream will begin. In many ways, an annuity is like a personal pension plan.
Accident insurance is also available through AAA Life Insurance Company. Because accidents can – and often do – occur unexpectedly, this coverage can help to provide financial support to an individual who is involved in an accident, or that person’s loved ones.
There are some key benefits that are offered through the AAA Life Insurance Company’s accident insurance coverage. These include the following:
Hospitalization – Accidents can be an expensive situation – and sometimes, the hospitalization that is received may or may not be covered via a regular health insurance policy. With the AAA plan, an insured individual can be covered for up to $375 per day for a covered non-travel related accident, and for up to $1,500 per day on travel-related accidents. These benefits can be paid for up to 365 days per occurrence.
Recuperation – Sometimes, even when a person is released from the hospital, they may or may not be ready to go back to work. The bills, however, for everyday living expenses will continue to come in. The recuperation benefit on the AAA accident plan can offer another $1,500 per day in benefits that will help with recuperating from a travel-related accident, or up to $375 per day on a covered non-travel related accident. These benefits can be paid for up to 365 days.
Emergency Room and Urgent Care – The cost of emergency room care can also be quite high – and there may be some benefits that are not covered via a regular health insurance policy. With the AAA accident policy, an annual benefit of $1,500 can be paid for ER and urgent care that is received for a travel-related accident, and up to $375 per year can be paid for a non-travel related event.
Accidental Loss of Life – Unfortunately, some accidents will result in the loss of life. If this occurs, a benefit of $500,000 can be paid for the loss of an insured’s life when he or she had been traveling on a regularly scheduled airline flight. A benefit of $250,000 can be paid for accidents that result in the loss of life when the insured is either riding in or driving a private car, truck, motorcycle, self-propelled motor home, or bicycle. This benefit can also be paid if the insured had been traveling as a fare-paying customer on public transportation such as a train, bus, airplane, or taxi. In addition, $250,000 can be paid out in benefits if the insured was struck by a motor vehicle as a pedestrian, and a benefit of $62,500 can be paid for death that is due to a non-travel related covered accident.
AAA members who are at least age 18 or older are eligible to apply for the Member Loyalty Accident Insurance plan. There is no medical exam required to qualify for this coverage.
How to Get the Best Life Insurance Premium Quotes
When seeking life insurance quotes, it is best to work with an independent company that has access to multiple insurance carriers. That way, you will be more easily able to compare what is available to you.
If you are ready to move forward with getting life insurance quotes, we can help. We work with many top life insurance carriers, so can assist you with your needs. Term Life Insurance smoker applicants can find help and information here as well. Just simply take a few moments to fill out the form on this page to begin.
Do you have HIV and need life insurance? Honestly, to save you a lot of time and energy please understand that your options are limited. Get in touch with someone who knows the limited number of life insurance companies that will offer a policy for someone being treated with AIDS.
Sometimes people ask me about HIV life insurance, and I tell them you don’t need to talk to 20 different agents or insurance company representatives, because you probably are aware that there are only a few options to buy life insurance if you have HIV and are being treated for it.
The Basics about Getting Life Insurance with HIV
Finding affordable life insurance can be daunting no matter what. But finding life insurance with HIV can be even more daunting due to the pre-existing medical condition that could trigger an early payout from an insurance company. Obviously life insurance companies are in the business of managing their risks and their business to a profitable level.
They must underwrite the applications they receive from consumers looking to buy life insurance. This means they have to have general guidelines for their agents and underwriters to decide whether they will issue a policy to a particular applicant.
If the life expectancy of a certain individual is shortened due to a medical condition like AIDS, then their options to buy life insurance just took a nose dive.
However, there is good news for AIDS patients who need life insurance.
Life insurance companies have been under Social Pressure for years to offer some type of HIV life insurance
Recent studies have indicated that the life expectancy for patients diagnosed with AIDS has increased. There has been more data available in the last few years that have indicated an improved mortality rate for those with HIV.
Life Insurance Options to Consider
Like I mentioned earlier, your medical condition is limiting the choices you have to choose between various life insurance companies. Listed below are the 4 most popular options when considering buying life insurance:
Group life insurance from your employer – generally the amount of death benefit available in this situation would be around $10,000 if you are the employee, and possibly only up to $5,000 if you are the Spouse, or Domestic Partner.
Action Point: If you work for a small employer, then you might be able to ask the business owner to see if they can increase the Death Benefit to up to $50,000 for employees and up to $25,000 for spouses or partners.
Voluntary life insurance from your employer – this might be your best bet to get a higher death benefit up to $75,000 or $100,000 without evidence of insurability. There are more and more life insurance companies that are promoting their voluntary life insurance program to employers. Some of these companies with even go down to 5 or 10 employees and still offer some type of Guaranteed Death benefit amount to employees. A few of these will also offer a guaranteed amount to spouses or partners.
Guaranteed Issue Life Insurance – The most common type of insurance coverage that someone can qualify for with HIV is guaranteed issue life insurance. This is the type of life insurance that does not require a medical exam or ask health questions.
Most of these companies have a maximum issue amount of around $10,000 of death benefit. Of course, these policies are more expensive than normal, but at least an individual with HIV could still get life insurance coverage.
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Underwriting Factors for HIV Positive People
There are various factors that life insurance companies consider when setting the premiums for individual’s that are HIV positive.
How advanced is the HIV disease?
There are three stages of HIV infection and the process is typically slow. The primary infection or the initial stage of infection is distinguished by flu like symptoms. The second stage is the longest typically lasting 8-10 years with no symptoms. The third stage is when the body’s immune system is weakened and symptoms are usually caused by other illness such as cancer or pneumonia that they have contracted.
So one of the items taken into consideration is how advanced the individual’s HIV is. They also do understand that medicine has advanced and there are now medications that slow the progression of the disease.
If the individual’s HIV turns into AIDS then it is probable that the life insurance company will no longer offer their traditional life insurance coverage to that individual.
What is the life insurance applicant’s age?
One of the insurance companies that will consider someone with HIV for a traditional insurance policy requires the patient to be between the ages of 21 and 49, while another company prefers the applicant to be at least 45 years old, and another one requires the person to be 50 years old to get insurance coverage. For the group life insurance and guaranteed insurance plans age mainly affects the life rates but not the underwriting.
What is the general health of the individual with HIV?
Life insurance companies also will want to know how active is the applicant from a daily lifestyle basis and are they able to work, hold down a job, etc. They want to see someone who obviously is not on their death bed, but can still function and can live a physically active lifestyle.
Does the person have other serious medical conditions?
This makes sense that if someone infected with HIV also has pneumonia or cancer, or some other disease that could be a result of a weakening immune disease, then the life insurance company may not offer an insurance policy. Another illness related to HIV that concerns life insurance companies is Hepatitis B and C.
Is the patient undergoing treatment?
Life insurance companies also prefer that the applicant is currently taking the antiretroviral medication to prolong the life of the individual. Even though there is no cure for the disease, promising results from this type of combination therapy is one of the reasons that life insurance companies began offering life insurance policies to people who are positive for the HIV virus.
What if you Already Have Life Insurance
If you happen to be one of the lucky ones that already had a life insurance policy prior to being diagnosed with HIV, then by all means do the best you can to continue to pay premiums and keep your life insurance policy in force.
Why Buy Life Insurance if you have AIDS
HIV or human immunodeficiency virus is a retrovirus that causes AIDS (acquired immunodeficiency syndrome). AIDS causes failure of the immune system which allows life threatening infections to thrive, and is a major contributing factor which can lead to a premature death.
HIV is primarily transmitted through sexual contact and the exchange of bodily fluids mainly blood to blood exchanges. Sharing needles and syringes from illegal drug use are common causes of blood to blood exchanges that result in HIV and eventually AIDS.
For an individual with AIDS who is confronted with the reality of death, buying or having life insurance can serve at least 2 purposes:
The first purpose of having life insurance is generally for the coverage of funeral and burial costs, which eases the financial burden that the survivors have to cover.
The second purpose for having life insurance is providing financial legacy for those left behind which can be used to pay for any medical debt incurred before death. Having trouble finding health insurance with HIV often leaves many families of HIV/AIDS patients with massive medical debt to pay.
Life insurance provides individuals with HIV and their families the safety of knowing that they will be taken care of in the event of death (whether from HIV or another medical reason).
Other Considerations with a Life Insurance Policy
Beneficiary – This can be a difficult decision for the policy owner for an applicant with medical problems. My recommendation would be to consider making the beneficiary the person most responsible for taking care of any debt obligations, as well as who will be responsible for making potential funeral arrangements. Keep in mind that life insurance proceeds do not go through probate, so the beneficiary will probably be dealing with the life insurance death claim, and not necessarily the Executor of the will.
By the way, if you don’t have a will – get one.
Accelerated Benefit Rider – If the insured is diagnosed with a terminal illness (terminal meaning within 12 to 24 months, depending on the insurer), then some policies will go ahead and pay out sometimes up to 50% of the death benefit. The one caution here is that it is actually sometimes paid out as a loan, and you are charged interest against the loan. If the insured then lives a long time beyond the 12 to 24 months, the ongoing interest will lessen the balance of the death benefit once death occurs.
Sell your life insurance policy if you need money now– This is known in the insurance industry as a Viatical Settlement. There are companies that will buy out your life insurance policy so the policy owner can benefit from the proceeds while still alive. This was more commonplace prior to insurance companies offering the Accelerated Benefit Rider.
HIV is a difficult illness to live with and finding life insurance with HIV can also be difficult. An individual that is diagnosed with HIV should look into getting life insurance as soon as they are able before the disease progresses.
Getting life insurance is an important part of most any good – and complete – financial plan. By having this important coverage, you can help to ensure that your loved ones won’t need to face financial hardship in the event of the unexpected.
These proceeds may be used for a variety of situations, including the payment of funeral and final expenses, the payment of large debt obligations such as a mortgage balance, and / or for paying ongoing living expenses. This can be especially beneficial if your loved ones count on you for some or all of their financial support.
When applying for a life insurance policy, it is essential to understand what type of coverage you are purchasing. The amount of life insurance protection is also paramount so that you can ensure that loved ones will have enough to provide for their needs. However, another key factor to be aware of is the insurance carrier that you are obtaining the policy through.
In this case, you will want to know that the insurance carrier is strong and stable financially, as well as that it has a positive reputation for paying out its claims to its policyholders. One company that ranks highly in this area is Allianz.
The History of Allianz Life Insurance Company
Allianz Life Insurance Company is a leading provider of life insurance, as well as income-producing products and overall retirement solutions. This company has been in the business of offering products to its customers for more than 115 years.
This company has held strong through both bull and bear markets – and it consistently has received high ratings from the insurer rating agencies. Because of this, customers who own insurance and financial products from Allianz can be more assured that the company will be there if or when the time comes for filing a claim.
Allianz has a conservative investment philosophy that is diversified across a variety of different asset classes. The company, when investing for its portfolio, seeks long-term financial results.
A Review of Allianz Life Insurance Company
Today, Allianz Life Insurance Company has more than 85 million customers around the world. The company is considered to be the 31st largest company worldwide, and it is the world’s third-largest money manager. It is also the second largest company in the diversified insurance industry, based on both market value, as well as on assets. In 2015, Alliance Life collected more than $11 billion in life insurance premiums.
It is the company’s overall cash reserves that allow it to back its insurance guarantees. As of year-end 2015, Allianz held more than $7.5 billion in equity. Therefore, the company can help to ensure that the funds and the policies that are entrusted with it will be there when the money is needed the most.
Allianz Life Insurance Company’s Ratings and BBB Grade
Due to its strong financial backing, Allianz has been given high marks in terms of its overall financial strength ratings. These include the following:
A+ (Superior) from A.M. Best
A2 (Good) from Moody’s
AA (Very Strong) from Standard and Poor’s
Allianz is not presently an accredited company of the Better Business Bureau (BBB). However, the BBB has provided Allianz Life Insurance Company of North America with a grade of A+. This is on an overall grade scale of A+ through F. The company, over the past three years, has closed no complaints via the Better Business Bureau. And, there are no customer reviews for Allianz that are posted on the BBB’s website.
Life Insurance Products Offered By Allianz
Allianz Life Insurance Company offers a wide variety of life insurance products. Because of that, its customers are able to find the type of coverage that can best fit their need – and policyholders can also revise their coverage should their ongoing needs change.
There are numerous benefits to owning life insurance coverage. The funds that are received by the policy’s beneficiary are income tax-free. This means that, instead of having to pay a large portion of the proceeds to Uncle Sam, 100 percent of these funds can be put to work by your loved ones for paying off debt, paying ongoing living expenses, or any other potential need that they may have.
With permanent life insurance coverage, there is both death benefit protection, as well as the ability to build up a nice amount of savings through the cash-value component of the policy. Here, funds are allowed to grow on a tax-deferred basis. This means that there will be no taxes due unless or until the money is withdrawn. Money may be either borrowed or withdrawn from the cash component of a life insurance policy for any reason – including the supplementing of retirement income, the payoff of debt, and / or for taking a nice vacation.
One of the primary forms of life insurance coverage that is offered via Allianz Life Insurance Company of North America is fixed index universal life. This type of coverage offers a flexible death benefit option, as well as the ability to earn interest in the cash component that is based on a variety of crediting methods and index allocation options. These policies also offer additional riders that may be added. Doing so may help to provide more customized life insurance protection to policyholders. The life insurance plans that are offered by Allianz include the following:
Allianz Life Pro+ Fixed Indexed Universal Life Insurance Policy
This policy begins with an income tax-free death benefit. It also provides the opportunity to accumulate cash value based on positive changes in the underlying market index of the policy. Riders are available to help policyholders with meeting specific needs.
Those who are age 80 and younger are eligible to apply for this policy. Although there are several different risk classes. These include:
Juvenile – For age 0 to 17
Tobacco – For ages 18 to 75
Non-tobacco – For ages 18 to 80
The minimum amount of death benefit on this policy is $100,000, and proceeds may be applied for up to $65 million. There are also several different ways in which the death benefit on this policy is structured. For example:
Level – With the level death benefit option, the amount of coverage will remain the same throughout the life of the policy.
Increasing – With the increased death benefit option, the death benefit amount will be equal to a specified amount, plus the accumulation value.
Return of Premium Option – There is also a return of premium option available. With this option, the death benefit will be equal to a specified amount, plus the amount that the policy holder paid into the policy.
If the insured lives to age 120, the death benefit amount will equal the amount of the policy’s accumulation value. At this time, no additional premiums will be accepted by Allianz, unless they are deemed as necessary for keeping the policy in force.
There are some indexes that may be selected with this policy. These include the Barclay’s U.S. Dynamic Balance Index ll, the S&P 500 Index, or a blended index that includes the Dow Jones Industrial Average (DJIA), the Barclay’s Capital U.S. Aggregate Bond Index, the Russell 2000 Index, and the EURO STOXX 50 Index.
There are also several additional riders that may be placed on this policy to help with customizing the plan to best fit a policy holder’s specific needs. These are:
Waiver of Specified Premium Rider
Convertible Term Rider
Enhanced Liquidity Rider
Loan Protection Rider
Child Term Rider
Additional Term Rider
Other Insured Term Rider
Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance Policy
The Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance policy is a good and cost effective way to insure two individuals at the same time. The proceeds of this policy will be paid out upon the death of the second insured. This type of plan can be more cost effective than the purchase of two individual life insurance policies. Also, in the event that an insured is diagnosed with a terminal or a chronic illness, a portion of the policy’s benefits may then be accessed.
Those who are between the age of 30 and 80 are eligible to apply for this particular plan. The death benefit amount starts at $100,000 and can go to $65 million, within certain guidelines. There are different options for how the death benefit will be structured, which include level, increasing, or a return of premium option. There are also optional riders available, including:
Chronic Illness Accelerated Benefit Rider
Terminal Illness Accelerated Benefit
Other Products Offered
In addition to just life insurance coverage, Allianz also provide other types of financial and income tools. These include:
Annuities
Allianz provides retirement annuities to its customers, as these products can help to ensure that they can receive ongoing income – regardless of how long they may live. The company offers several different types of annuities so that clients may choose the one that will be best for their goals. The types of annuities that are offered are:
Fixed Index Annuities – A fixed index annuity offers returns that are based on an underlying market index. If for example, the index performs well during a given period, then the value of the account will rise, up to a stated cap or percentage. If, however, the underlying index performs poorly in a given period, then the value of the account will not endure a loss, but rather will typically be credited with a 0% for that period. These annuities also allow for tax-deferred growth inside of the account, meaning that there is no tax due each year on the gain until the funds are withdrawn. When the annuity is converted over to income, annuity holders will have several options for how – and how long – they wish to receive the payout. One of these is the lifetime option, which will pay out an income for the remainder of the individual’s life, regardless of how long that may be. In many cases, another individual such as a spouse or partner may also be able to receive lifetime income from the annuity as well.
Variable Annuities – A variable annuity has its funds invested in sub-accounts, which can typically include equity options such as mutual funds. Here, the opportunity to earn a nice return is available. However, due to potential market volatility, there is also more risk with this type of annuity.
Index Variable Annuities – An index variable annuity will also allow its holder to participate in potential market gains, yet with a level of protection against market downturns.
Allianz also offers a myriad of retirement planning tools. These include materials that can help individuals and couples to plan for the future, as well as financial calculators to help determine if you are on track.
How to Get the Best Life Insurance Premium Quotes
When shopping for a life insurance policy quote, it is typically best to work with either a company or an agency that has access to more than just one single life insurance carrier. This way, you will be able to more directly compare the benefits, the companies, and the premium prices that are available to you.
If you are ready to move forward, we can help. We work with many of the best life insurance companies in the marketplace today, and we can provide you with the details that you need. All you have to do in order to get started fill out the form on the side of this page.
We understand that purchasing life insurance can seem a bit confusing. But we can help you to ensure that you are going in the right direction with the type of plan that you choose, and the premium that is charged. So, contact us today – we’re here to help.
Finding the right insurance or any insurance at all can be a daunting task when there are pre-existing medical conditions present. It is oftentimes frustrating to find term life insurance as companies tend to flat out deny those with pre-existing conditions or is there is not denial they are placed in a high-risk policy which is oftentimes more costly. Despite these challenges and frustrations, finding insurance with pre-existing conditions is not impossible.
In fact, in just about every case, there are plenty of affordable life insurance options. Even applicants with pre-existing conditions are surprised to see how affordable their policy can be.
What is Your Pre-existing Condition?
The type of pre-existing condition is perhaps the biggest consideration when shopping for new life insurance. From one insurer to the next, the types of policies for people with certain conditions will vary. Life insurance companies rate conditions differently based on the level of risk they believe are associated with it.
When considering conditions such as cancer, many insurance companies may not accept that level of risk since there is not a long life expectancy associated with these types of conditions. Although this is the case, other considerations are factored in such as whether or not it is in remission.
The main thing that insurance underwriters are considering is how threatening the condition is to the life of the policyholder so obviously, there are usually multiple variables at play. The good news is that insurance companies are adapting and changing with medical advancements. When it may have been impossible in the past to receive insurance with pre-existing conditions, insurance companies recognize that certain conditions can be treated or slowed due to new research and technology.
Avoid The Fuss With No Medical Exam Life Insurance
Another great option is a no medical exam life insurance policy. If you have not been previously diagnosed with a condition, this may be a great option. Although these types of policies usually run at a higher premium, the coverage is usually guaranteed and the policy coverage varies slightly from a standard term life policy. Despite the guaranteed coverage it is a good idea to disclose any medical conditions you may have.
In today’s market, there is far more competition in terms of top-rated life insurance companies. Because of this, they are oftentimes aggressive in the risks that they take. For this reason, you need to shop around or even work with a professional who can point you in the right direction.
These policies of course usually come at a higher rate but it is a good option still for those who may have been denied by a more traditional life insurance provider.
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It’s Best to Compare Between Different Insurance Companies
Perhaps the biggest factor related to a pre-existing condition that there is no way around is the higher cost. Insurance companies need a way to compensate for the additional risk. However, many companies will treat certain conditions differently than other. For example, there are some companies that view conditions like diabetes more favorably than others. With some companies, if you have well-controlled type 2 diabetes, you could get great rates, but other companies are automatically going to skyrocket your rates because of the diabetes diagnosis.
The best course of action is to be proactive with your condition and try to manage it the best way that you can. Insurance companies have been known to consider these types of things and reduce your premium over time as it is demonstrated that you are getting your condition under control.
Thankfully for advances in the medical community it is no longer the case that pre-existing means denial. It is still a good idea to shop around and find the best fit for your particular condition. Spending the extra time up front can save you a lot of money in the long run and the peace of mind that comes with knowing you are insured is invaluable.
The benefits of finding the perfect company are obvious, lower insurance rates. But finding the right company isn’t as easy as that. This is why you need an expert, like our independent agents. Not only can they represent several different companies, but they are also knowledgeable about the different companies and which one will view your pre-existing condition more favorably.
Getting the Lowest Rates Possible
We just mentioned a great way to get lower monthly rates, by working with an independent agent, but that isn’t the only way.
The first thing is to do is improve your health. Sure, you have a health problem, it’s going to impact your monthly rates, but there are still some health factors that you can improve to get a better classification from the insurance company.
The best thing you can do is to shed a couple of pounds. The majority of life insurance applicants are keeping a few more pounds than they should, and losing that weight could have an extremely beneficial impact on your insurance plan. Start a healthy diet and exercise program, it will save you money.
Deciding how much Life Insurance you need
The next most important decision is determining how my life insurance coverage you’re going to need. The bigger your policy, the more you’re going to pay for your coverage.
If you don’t have enough coverage, you could leave your loved ones paying for all of those debts you would leave behind. How are you supposed to know if you have enough coverage? There are several different questions that you can ask yourself to ensure that you’ve bought a large enough life insurance policy.
The first question is, “how much debt would I leave behind?” Before you buy a plan, make sure the policy will provide enough protection. Make sure that you add up your mortgage, car payments, credit card bills, student loans, and anything else your loved ones would be responsible for paying.
The other questions that you have to ask is, “how would my family suffer if they lost my salary?” the other main purpose of life insurance is to help your family find a way to replace your annual income. Your family could have a difficult time finding a way to permanently replace that income without experiencing serious financial strain.
I remember starting my career as a young adult, I had a lot on my plate, working my 9 to 5, paying off my student loans, and hoping to find my future spouse.
One of the last things on my mind was buying life insurance. I could almost guarantee that for all young adults buying life insurance is the last thing on our minds.
So the question remains, “Should young adults consider buying life insurance?”
The cop out answer is: it depends.
A lot depends on where you are in your life and what where you plan to be in the next few years. If you are a young adult considering buying life insurance, here are some things to consider.
Remember the Hand That Feeds You
In retrospect, I regret not buying life insurance when I was a young adult. Sure, I was single and I didn’t have any dependents, but my parents didn’t have a lot of income and a lot of financial stability. If something happened to me and they had to pay for my funeral expenses, it would have affected them greatly.
In fact, it would have been so great that I honestly don’t know how they would paid for it. Getting a cheap term policy would have cost me less than $10/month and my parents would have been unscathed financially if something happened to me.
If you are single, you might not think that you need life insurance but don’t forget about the ones that raised you.
Life insurance is very inexpensive and even if you took out a small $50,000 to $100,000 policy, you would be paying less than 2 values meals at McDonald’s a month for coverage. It is the responsible thing to do and it won’t drain your checking account like one would think.
If you’re in the same boat that I was in, single with no dependents, you probably think the same thing I did, that life insurance would be a waste of time.
But before you automatically discount it, talk to your parents about the possibility of something tragic happening and what kind of financial suffering they would experience if you were to pass away.
What About Debts?
It seems nowadays that parents are helping their kids more and more getting through school and getting their career started. I wasn’t one of those lucky ones, but my wife was.
Her parents sacrificed funding their retirement fully to pay for their daughters tuition and cost of living while at school. Imagine if something happened to her and now all that money on books and fees is literally flushed down the toilet.
If she would have had bought cheap life insurance, her parents would have been replenished all the money they had invested into her college education.
But, just because you’re a young adult doesn’t mean that student loans are your only debt. This is the stage of life when you’re going to start looking to buy a house, right? Even if you don’t have a mortgage right now, look a few years in to the future.
A couple years down the road you could buy your first house, which means that you’re responsible for your first mortgage. If you were to pass away with that mortgage, guess where it’s going? Straight to your family.
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When Shouldn’t Young Adults Buy Life Insurance?
If you are debt free, your parents haven’t handed you the silver spoon and you are not married, then buying life insurance isn’t necessary. At least not yet. When you do start your family, that’s when life insurance should become a priority.
Also, don’t buy your life insurance through your employer (unless you have a pre-existing condition). The price is usually about the same buying it through a third party, plus you won’t have to worry about getting life insurance again if you change jobs.
Life Insurance Is NOT Expensive
Some of the major benefits of buying life insurance when you are young is that it is super, super cheap, as mentioned above. The younger you are, the lower your costs are going to be in paying for your life insurance.
Going from your 20’s to your 30’s or 40’s, you can generally see a 20% to 25% increase in premium.
Compound this with the fact that when you are younger, you are super healthy and probably still find time to work out five days a week, which further increases your changes of locking in a low rate.
Getting The Best Life Insurance Rates
Yes, as a young adult, life insurance is going to be cheap. Very cheap. But this is the premium that you’re going to be paying for many years to come, so you want to get the best rates that you can.
You have one of the biggest advantages of finding cheap life insurance, your age. Your age is the biggest factor in determining how much you’re going to pay for your coverage, buying coverage at 20 is much more affordable than purchasing life insurance over 50 years old, but it’s not the only one.
You can’t do anything about how old you are (trust me, you can’t stop it), but there are some factors that you can change and save money on your insurance plan.
The next biggest factor that the insurance company is going to look at is your health. They will look for any pre-existing conditions and your overall health to determine how much of a risk you are.
The higher your risk level may be, the more they’re going to charge you for insurance coverage. If you want to save money on your monthly premiums, spend a couple months improving your health.
After you complete the initial paperwork for your policy, the insurance company is going to send a paramedic out to complete a simple medical exam to determine what kind of health you are in.
During this exam, the paramedic is going to take your blood pressure, cholesterol, take a blood sample, and also a urine sample. These results are going to play a role in what kind of ratings you get.
If you have are carrying a few more pounds than you should, it’s time to trim down that waistline. Being overweight increases your chances of having health problems later in life, like diabetes or heart complications. It’s time to actually use that gym membership that you’ve been paying for.
Additionally, if you’re a smoker or tobacco user, it’s time to kick those bad habits once and for all. If you’re listed as a smoker on your life insurance application, you’re going to be looking at double or triple the monthly premiums of a non-smoker.
Sure, that could only raise your premiums by $20 or $30, but once you calculate that out through the course of the insurance policy, it adds of to some serious cash.
The best way to ensure that you get the best rates is by comparing dozens of companies before you choose the plan that works best for you. Each company is different and is going to view your applications differently. It’s vital that you receive quotes from several different companies before you choose the one that works best for you.
There are a lot of Americans that skip purchasing a life insurance policy, especially once they start to reach their mid-50’s and early 60’s, but this could be an awful mistake.
When looking for life insurance at age 56 one of the greatest impacts on your premium is your health.
Unfortunately, at this age there are many medical conditions that can start to creep up if it hasn’t already started affecting you.
Depending on what type of medical condition you have, your rates may or may not be affected significantly. There are a lot of people that think if you have any pre-existing condition, you can’t get life insurance. That isn’t true.
Regardless, life insurance is something that everybody should have for their own peace of mind.
What Type of Coverage Should I Get?
Ninety percent of 56 year olds who obtain life insurance typically only need it for 10 to 20 years. This is the case because the purpose of the life insurance is meant to fill in for displaced income.
With this in consideration it is assumed that you will not need insurance after retiring and for that reason you only need a policy for the term of your working career.
Buying cheap term life insurance is the solution for this. This type of insurance is surprisingly affordable, especially considering all of the benefits that come with it. If you need more extensive or permanent insurance, whole life insurance is most likely for you.
As you can imagine, the biggest difference is whole life insurance is effective for as long as you pay the monthly premiums. This a significant advantage over term policies that expire after their predetermined time.
There are a lot of people that prefer having permanent coverage and don’t have to worry about reapplying for another policy. If you want the comfort of having a whole life policy, go for it, but be warned, you’re probably paying way more for life insurance coverage than you have to.
What are the rates for a 56 year old?
Your rates are going to be based on your age, your health, and much more. We can’t give you exact numbers, but we can give you a rough idea of how much coverage you’ll pay.
For example, let’s say you are a 56 year old man who wants to get a $500,000 insurance plan. You’re going to pay around $1,600 every year for your plan. A woman is going to pay $1,200 for the policy.
Here is some quotes for $250,000 of coverage for someone age 56:
Sex
10 Year
20 Year
30 Year
Male
Protective – $42.48/month
SBLI – $73.30/month
Transamerica – $161.88/month
Female
Protective – $32.07/month
SBLI – $55.46/month
Transamerica – $113.75/month
Keep in mind, these are only ballpark figures for life insurance coverage. There are so many variables, there is no way for us to tell you exact numbers without getting information from you.
What Risk Tables Does a 56 Year Old Operate On?
Pre-existing health conditions are the main reason people in this age group are declined for life insurance. This could be anything from diabetes to heart problems.
There are a lot of life insurance companies that have experience working with high-risk applicants of various conditions. These companies understand the conditions and how they can be controlled, which means they will view applicants for favorably than companies without that experience.
Even if you’ve been turned down for coverage because of your health conditions, there are still several insurance coverage options that you can choose from. Your health won’t prevent you from getting at least a small amount of coverage.
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How much Life Insurance do you need?
Aside from asking what type of policy that should get, this is the next most common question that we receive, “how much life insurance do I need?” and it’s one of the most important calculations you can make in regards to your insurance.
Shopping for life insurance at age 56 is extremely different than shopping for a policy in your 20’s or 30’s. There are many notable differences that are going to impact your life insurance needs. More than likely you don’t have as much debt as you did twenty years ago. One of the main goals of life insurance is to pay off any debt you would leave behind, you might be able to buy a much smaller policy at this stage of life.
Another key difference in a life insurance policy in your mid 50’s is your salary and how many people are relying on your income. Your salary is probably higher than it was when you first bought a life insurance policy many years ago, but that doesn’t necessarily mean that you need a larger insurance plan. If your spouse is still working, and your kids all have jobs of their own, you can consider getting a smaller, cheaper insurance policy.
Getting the Best Rates on Your Life Insurance Policy
Getting life insurance is important for the protection of your family, but it’s also important that it doesn’t break your bank. Even at 56, a life insurance policy can still be more affordable than most applicants assume. The older you are, the more your plan is going to cost, but just because you aren’t as young as you used to be doesn’t mean your policy has to be expensive.
The first way is to focus on your health. Aside from your age (which you can’t change), your health is the next most important factor that impacts your monthly premiums. Sure, you probably aren’t in as good shape as you were twenty years ago, but now is the time to focus on your health.
If you’re carrying any extra weight, it could hurt your monthly rates. The more weight that you’re carrying, the higher your chances of having health problems. The higher your risk for health problems, the higher your rates.
Shedding some of those pounds through a diet and exercise will not only lower the number on your scale, but it will also work wonders for your cholesterol, blood pressure, and much more. Not only is this great for your health, but good for your wallet as well.
Additionally, kicking your bad habits like smoking cigarettes will also save you several hundred dollars on your policy coverage. Smokers pay double on their monthly premiums, sometimes triple, versus a non-smoker.
Whether it is standard term life insurance or a no medical exam policy, the best way to locate the perfect plan is to partner up with an independent agent. Each insurance carrier is very different. Different plans, rates, riders, and much more. Sure, you can look through them all to find the best, or we can bring you 50 companies all at once.
We work with all of the top-rated life insurance companies so that we can shop for you and get the absolute best rates. Life insurance is a long-term investment, and just like any other investment, you want to make the best choice. You should always work with an expert to make your choice.
Inside: Learn why you may want to drive a beater car. Plus find tips to make sure you are getting a good deal.
Okay, let’s preface with… my dad has been in the car industry for over 40 years. So, I have grown up in dealerships, car garages, and service centers. My friends call me an expert, but I prefer to just be helpful so they don’t overpay when buying or getting repairs done.
Now, that authority is established, let me help you understand the beater car mentality.
If you are looking for a cheap used car, but don’t know where to find one, check out this guide that will help you get started.
Buying a used car can be tricky. It’s not just about finding one that is inexpensive, but also getting the right size for you and your lifestyle.
There tends to be more mystery surrounding what it’s like buying a new car from the dealership than an old one from somewhere else.
The main reason is that usually, they do not disclose how much of the price tag is going towards depreciation. What happens when your brand-new vehicle goes through years worth of wear and tear? It depreciates at a staggering rate and you end up with the same old car that’s only worth what is left of it.
Did you notice that keyword in the last paragraph – depreciation!
For many who are choosing to lower their costs and pursing FIRE movement, they know that a brand new car will depreciate the most within the first five years.
In this article, I will be shedding some light on how to find a cheap used car in your area if you are shopping for one. Also, if you are maintaining a beater car, you will find the tips to make sure your car lasts many more years.
Driving a beater car is not a sign of being poor or reckless. You still need proper auto insurance to drive.
With this guide, you’ll find out which cars have what features and quality that will fit your needs and lifestyle. Now, let’s find a car with features that are important to get around town and save your wallet!
What Is a Beater Car?
A beater car is usually an older, higher-mileage vehicle that still runs and is legal to drive.
The term “beater” was coined because many of them have cosmetic damage and mismatched paint.
A beater car is rarely pretty but “gets the job” when it comes to getting you and yours from here to there.
What is the point of a beater car?
A beater car is a reliable and easy-to-fix car that is cheaper than a new car.
The point of a beater car is to save money and reduce the amount of maintenance that needs to be done on it.
It has little intrinsic value, & while not “easy on the eyes,” a beater car is generally a smart choice to wear into the ground.
There are many advantages to buying a used car, including insurance savings, tax breaks, and lower operational costs.
Beaters can also provide peace of mind because they are easier to repair if something does go wrong.
Should you drive beaters?
People are in different situations when they are buying cars.
The best customers for cheap cars are either first-time car buyers or people who have to save some cash to reach a financial goal they set in place.
On the other hand, if you like reliability, make income from your car, enjoy looking good, or do not know your way around a car, maybe you should skip a beaters car.
How Can You Recognize a Beater Car?
A beater car is a car that is older and cheaper than other cars in its class. It may also have high mileage or corrosion on the body. You can look for these signs to help you identify a beater car.
More than likely, they will be easy to spot. Many common ones include Honda, Toyota, and Suburu. Those are the engines that can keep on running!
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Is a Beater Car Worth It?
Well, there are two sides to the coin on this one. So, we will present both arguments first.
Definitely Worth It
Simply put, a beater car is one that doesn’t cost a lot of cash. You can find reliable and affordable beaters if you know where to look. In most cases, the best way to find a cheap used car is by checking out local classified ads or online listings.
Beater cars are a great way to save money on all sorts of fronts.
For starters, they’re cheaper to buy than most other cars. Additionally, used cars can help with taxes, insurance, and maintenance costs.
In short, a cheap car is a great way to get around while keeping your expenses low.
Um, Hello – No!
A beater car is not worth it. There are many reasons why you should not buy a beat-up vehicle. The first reason is that they are cheap, and the owner will most likely not take care of them properly. Not only will the car need repairs, but you could also have to buy a new one.
Didn’t you know that you can lease a vehicle for next-to-nothing with a low-interest rate? (p.s. don’t fall for that line. Leasing a car is the worst thing you can do financially. That is a post for another day on leasing vs buying a car.)
All in all, it depends on what you need and what you can afford at the moment. For many, the answer to this question is yes, but only if you are looking for a cheap car.
What is the price of a beater car?
A used car is a vehicle that has been previously owned, so it has depreciated in value.
The price of a beater car is difficult to determine and varies depending on the quality of the vehicle, its condition, and what it might have been used for. Typically, you can find a solid mechanical vehicle for around $5000.
You can always check against the KBB price and run the VIN to check its reported history.
Beater Car Benefits:
The benefits of a beat-up car are listed here. Many people are proud of their vehicles and proudly want to be a part of the 200k miles club.
They include the opportunity to drive around with no maintenance, the ability to use it for parts, and the freedom from monthly payments.
A used car is cheaper upfront than a new car.
Cheaper on insurance. Beater cars require minimum coverage, so they’re cost-effective for monthly expenses.
A beater car is cheaper on gas (this is true for sedans; not so much for SUVs or trucks.)
The car will retain its value and not depreciate much more.
The car can still be sold for what was paid for it, as long as it is in the same condition.
Now, let’s dive a little deeper into each of these.
#1. Cheap Price
One reason to prefer a cheap car is because of the low price point.
For the first time ever, the price of a new car tops $47000 – an all-time high (source). That is a whole lot of money especially when it loses most of its premium in the five years.
Driving a beater may not feel as luxurious as driving a newer car, but the cheap price point lets you save money.
#2. No Car Payments
There are many benefits to not having car payments.
One of the most obvious is that you save money. In addition, not having car payments can also reduce stress and anxiety levels, because you’re not as tied down to a monthly payment.
It is not normal to have a car payment your whole life. That lifestyle will cost you a fortune with lifestyle creep.
#3. Cheaper Gas
Old and beaten-down cars that don’t require premium fuel will be heaven for your wallet, saving you hundreds, maybe even thousands of dollars per year.
Gas prices vary throughout the day, so drivers should plan their trips around the cheapest prices. In addition, using a cheap car can save you money on gas in the long run.
#4. Cheaper Parts
First of all, you need to find a reliable mechanic or be able to do some of the work by yourself.
In addition to being cheaper, older car parts are also easier to find. Car parts are still available from common car manufacturers, so you don’t have to go through a premium supplier to get what you need.
Additionally, the older vehicles do not have the fancy chips like the newer cars that make the cost of parts increase and the difficulty of getting those types of parts.
#5. Minimum Insurance Coverage
Buying a used car saves money on car insurance.
You only need to meet the minimum insurance requirements of your state, and you don’t have to worry about finance companies taking out full coverage collision and comprehensive insurance.
However, you may want comprehensive coverage if the cost is minimal compared to replacing the car. For instance, if you pay an additional $50 per year for full comprehensive coverage that will give you the $5k worth of your car back if something happens. That may be worth the extra cost.
Plus driving a car with a lower resale value can help save on vehicle taxes.
#6. Less Depreciation
Older cars have already depreciated in value over the years, so they aren’t going to lose much more during the period of your ownership.
Plus if the engine gives out, you can always sell it for scraps and parts at the local junkyard. That will help you recoup costs for another one.
Remember, you wipe away value from your brand new car once you drive off the dealer’s lot (source). This is a hot debate on whether your car is an asset or liability.
#7. More Freedom
When you are not bogged down by expenses of maintaining a high-value car, you have more freedom.
This is more freedom in your budget and more time freedom as you don’t have to work hard to pay for your mode of transportation.
Think about it… if you invested $500 a month for seven years at the average rate of return of 8%, you would have accumulated $55,000. Compounding interest will do amazing things for your net worth.
Beater Car Downsides:
Saving money is the biggest benefit of buying a used car.
Beater cars are potentially less safe than modern cars.
Long-distance car rides might not be possible with a cheap car
Downsides to having a good beater car include the possibility of breaking down and being far away from home if needed.
Possible more maintenance.
There is more risk. You don’t want to gamble.
#1. Less Safety
Cars from before the 2000s don’t have the same crashworthiness as newer cars.
This is a factor that you cannot deny and a serious factor when considering your purchase.
In a collision, they are more likely to sustain damage and injure the passengers inside.
#2. Low Probability of Longer Trips
These are great for commuting around town and getting you to and from.
However, there is a low probability you want to use them on longer trips.
Given there are many things that could go wrong, you don’t want to break down far from home or even a nearby city where you can get repairs done.
You don’t anticipate needing to take this car on long trips in the near future because there is a low probability of needing to take it on longer trips. This is due, in part, to the fact that it doesn’t have great gas mileage and you don’t think you’ll need to use it for long distances.
#3 – Higher Maintancence Costs
You always need a sinking fund for repairs when you own a beater. Period.
You are one drive away from something going out and needing to be repaired.
Also, you need to find a quality mechanic that thrives on keeping older ones running without nickel and diming you along the way.
You cannot use a dealership service center to maintain your baby.
Which Are the Best Beater Cars?
The best beater cars are cars that are cheap, have low mileage, and are easy to repair. The cars are great to use as a daily driver, but they are not ideal for long distances.
Cheap cars can be a good option for car buyers on a tight budget or for young drivers.
There are many reasons to consider buying a used car over a new car, but the decision ultimately depends on the buyer’s needs and preferences
What are some good beater cars?
These reliable beater cars can be a great way to save money on car buying.
Some of the better cars to choose from that would make for a great beater include Toyota Corolla, Honda Accord, and Honda Civic.
They are old, but still in pretty decent shape. All in all, you want to look for one that is very well maintained and highly cared for. The ones sitting in your grandparent’s garages that were hardly driven and immaculately maintained.
What to Check Before Buying a Beater Car
The best way to ensure that you’re buying a good quality car is to do some research and make sure you know your facts.
All dealers are not created equal, so it’s important to check out what other people are saying about the dealer. Also, make sure that the car you’re buying is in good condition and has a clean title.
Many times, a beater is a car that is used to transport things such as furniture, trees, etc. Sometimes they are usually not very well maintained and maybe not very well cared for.
However, a used car can still be a good car for someone who is looking for a cheap car and does not care about the condition of the car.
Specifics to Look For:
Low mileage
Consider the brand/model
Fuel economy
Exterior and interior condition
Reliability
Maintenance history
Number of owners
Number of accidents
Anything rebuilt like the engine
For example, one of the Toyota Corollas I owed was older but had a new engine installed. Thus, the value of the Corolla was higher as the engine had minimal miles on it.
In fact, here is a picture of it… doesn’t look like a junker right?!?!
Questions to Ask Yourself:
Before buying a used car, you should check the following:
Is it in good shape?
On the engine, is it manual or automatic?
Is it the right size for your needs?
Does it have enough power?
Does it have enough room?
Is it reliable?
Is it comfortable?
Easy to drive?
Is it safe?
How to Buy a Beater Car
When buying a beater car, you should check the following things:
1. Finding One to Buy
Many times, this will be the hardest part. Sometimes, the easiest if someone needs to get rid of one quickly.
Try buying a beater car from friends or family.
The next place to check is your mechanic. Remember, they are your best friends in this process and always know the movement of these types of cars.
Also, you can check online – Facebook Marketplace, NextDoor and Craigslist are great options but follow your instincts.
Lastly, you can try a local dealership. However, be very careful as you don’t want to be scammed or pay more than the car is worth.
2. Check the VIN Number
VIN stands for Vehicle Identification Number. A VIN is a serial number that identifies the make, model, and vehicle type of a motor vehicle.
The VIN number is a unique identifier for a car that can be used to learn about the car’s history and identity. The number is usually 17 characters long and contains both numbers and letters. It can be found on the dashboard, driver’s side door, or engine of the car.
More importantly, it can be used to learn about the car’s history and identity, including its make, model, year of manufacture, and more. Even if the car was stolen.
3. Look at Mileage
Beaters usually have high mileage, but how high is too high?
Do your research for what could be a red flag. Look up how the specific make and model you’re considering holds up in high mileage.
In this regard, lower is better, although beaters will generally have higher mileage than a newer used car. Look for beaters with 80,000 to 150,000 miles on the odometer, but don’t go over 150k miles. You want to drive it into the 200k mile club, right?
4. Run the Auto History Report
You want detailed information on a car’s history, including maintenance and repair records. This can be helpful in determining whether or not a car has been well taken care of. If a car has had many owners in a short period of time, it may be an indication that the car was neglected.
The VIN number (vehicle identification number) helps you obtain a vehicle history report by running through a service, like CARFAX. Companies like VINCheck.info and AutoCheck provide vehicle history information, too.
A good indication that a car may have been neglected or doesn’t run well is the fact that it has had many owners in a short period of time.
5. Checked by Your Own Mechanic
If you haven’t figured it out by now, a trusted mechanic is a must!
Before agreeing to the purchase, you must have the vehicle independently audited by your own mechanic. This may come at a small cost, but it is better to know the condition of the mechanical systems before you purchase.
Also, your mechanic can tell you what you should pay for it as well as any outstanding repairs or maintenance that needs to be done.
6. Passed State Inspection
When buying a car, it is important that it passes state inspection. If it doesn’t, you may end up spending more cash on repairs and/or fines.
You can ask for the last inspection report. If it has been more than a year, it is worth testing it again.
In any case, you don’t want to buy a car only to have it break down on you soon after.
7. Take it for a Test Drive
When you’re looking to buy a used car, it’s important that you take it for a test drive. This allows you to listen to any loud noises and also gives you a chance to feel the car out.
If something doesn’t feel right, then it’s probably not the right car for you.
When you’re looking to buy a used car, it’s important that the seller allows you to take the car to a mechanic for a test drive. If they don’t, it’s probably because they’re trying to hide something and it’s best to move on.
Fixing a Beater Car:
The best option for fixing a beater car is always to do the repair yourself. This will save your finances and allow you to learn more about how your car works. There are a variety of resources available online that can help you with this process, including videos, articles, and forums.
If you find a car with engine problems, you will need to consult a mechanic. The problem may be something simple that is quick fixes with a tune-up, or it may be more serious.
If the cost of repairing a used car is almost as much as what you paid for the car, then it may be time to move on.
Selling a Beater Car:
The process is very similar to buying it except now you are the seller!
The same places you would look for one would be the same places you would sell it – friends, NextDoor, Craigslist, mechanic, or Facebook Marketplace.
You might even be able to get some cash for your beater car by trading it in at a dealership. The dealership will likely give you less than if you had sold the car to a private party, but it’s better than nothing. However, some dealerships have pretty awesome trade-in policies to get you in a new and more expensive ride!
Reasons NOT to Buy a Beater Car
The most common reasons not to buy a used car are that they are very expensive to fix, impractical in terms of fuel efficiency, and require more time and effort than expected.
However, those of us who have owned older sedans, SUVs, or trucks know the significant savings associated with it and get many weird looks for others.
Top 10 Reasons NOT to Buy a Beater Car:
You want/need a good-looking car.
High reliability is a priority.
You are a one-car family.
You will lose your mind trying to fix it.
It’s going to break down and you’ll be stranded somewhere, losing money.
You will have to get a new car eventually anyway.
It’ll cost you more money in the long run because it’s not worth fixing up and selling later on.
You won’t be able to sell it for what you paid because it’s too beat up.
You think leasing a car is a better deal.
Deep down, you think a car payment is normal.
Is an Older Beater Car an Issue for You?
Beater cars can be a good option for people who want to save money on their car costs.
There are many advantages of a cheaper car including avoiding car loans and down payments, cheaper gas, and minimal insurance requirements. Plus used cars have already lost much of their value and are a better investment.
Maybe a full one beater isn’t right for you, but maybe a seven-year-old minivan with 85,000 miles is perfect.
In all honestly, people who are looking for a cheap car should consider buying an inexpensive car instead of a luxury car.
Now, I want to hear your favorite stories about your precious gem and how many miles it lasted…
Know someone else that needs this, too? Then, please share!!
Determining what type of life insurance to purchase at age 52 calls for several factors that may otherwise not be considered at any other age. At age 52, considerations that may not otherwise be a factor start to come into play.
For example, a 52 year old may start to think about the unexpected health scenarios and whether or not their families will be cared for in the event of one.
It is never too late or early to buy a life insurance policy, however age 52 could be the sweet spot as there is still a good chance that you are mostly healthy and can capitalize on a low rate.
Regardless, it is something that should definitely happen as it is not a pleasant thought leaving your family unattended to financially.
If you’re past your 50s, you may think you can skip out on the life insurance plans. More than likely, you still have a mortgage, credit card bills, car payments, and several other debts that would be passed on to your family.
Every year we hear of families that are struggling to pay bills that were left behind by a family member because they didn’t have insurance coverage as they were getting closer to retirement. It’s easy to see why life insurance is still an important purchase life insurance at age 52.
Is Whole or Term Life Insurance Best at Age 52?
When considering life insurance, there are always multiple options to choose from. Perhaps two of the best options to make a selection from at this stage in life are either whole life coverage or cheap term life insurance coverage. Term life insurance is one of the most sought after types of insurance as it is not only inexpensive but it allows for a decent amount of flexibility in coverage. The coverage on this policy expires at the end of the term, depending on what length you have selected.
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Whole life insurance is slightly different from that of term life insurance. Make your premium payments under whole life insurance, you are insured. Additionally, the policy starts to accumulate value over time and is actually looked at as an asset. This means that you can borrow from it in certain cases, almost making it a type of investment. For anyone that doesn’t want to worry about losing coverage at the end of a term, these whole life plans are an excellent option. Because you will never lose the insurance coverage, you’re going to pay more for these types of plan.
Determining which type of insurance to use is mainly dependent on what your needs are at a 52 year old. The insurance provider is always another important decision to make. If you are not clear on what type to buy or which insurance provider to use, it is never a bad idea to seek the guidance of an experienced insurance provider.
We know that buying the perfect life insurance coverage can be difficult. Because it’s so important that you make a great choice for your life insurance needs, it’s vital that you work with an educated insurance agent.
The rates for term life insurance vary depending on how much insurance you actually need. Starting at $250,000, the rate that you will pay starts at $16.08. For $200,000 of coverage, the rate jumps up to $32.20. For $500,000, the rates will start at $55.32. The rates are for those that are considered healthy adults. This would include those who lead a healthy lifestyle, have no pre-existing illnesses, and those who do not smoke. Of course, there are various other factors that affect your insurance rates so the best bet is to get several quotes and consider all factors. Here are some quotes for $250,000 of coverage:
Sex
10 Year
20 Year
30 Year
Male
Protective – $29.40/month
SBLI – $50.90/month
Banner – $90.34/month
Female
Protective – $23.97/month
SBLI – $38.72/month
Banner – $66.94/month
The problem with these quotes is everyone is different. If you’re a smoker, you might as well disregard these quotes.This is because smoking cigarettes or using tobacco drastically increases your chances of health problems. If you want to get rates like the example above, it’s time to put down those cigarettes once and for all.
Similarly, if you’re looking for the lowest rates possible on your life insurance, it’s time to improve your health. You can do this through a diet and exercise. Both of these are going to health you improve your overall health that is going to translate into more savings on your insurance policy. Just like smoking increases your risk of health problems, diet and exercise LOWER your risk of health problems. It’s time you start using that gym membership that you’ve been paying for.
Aside from deciding which policy type and where to buy the plan, you’ll also have to calculate how much insurance coverage you need. Not having enough life insurance coverage could be as bad as not having any coverage at all. There are several different things you need to account for when deciding how much coverage to purchase. The first thing is your debt, and you’ll also need to calculate in your annual salary.
While it is a good idea to obtain insurance as fast as possible, it is never a good idea to jump into a plan without doing your due diligence. Seeking the help of a professional is as easy as filling out the form on the side of this page.
Obtaining life insurance for people over 50 takes working with an agent that is used to that market. Since the policy needs of people in their 50’s vary much more than people who are in their 20’s, 30’s, and 40’s having the flexibility of an agent really is a need. To get the best insurance rates available to you, you’ll need to compare prices with different companies. Just like you would with a TV or new vehicle.