Looking for a way to provide your loved ones with long-term financial protection? A universal life insurance policy might be worth considering.
This type of life insurance can provide coverage for as long as the policyholder is alive, and some policies also accrue cash value. Generally, when the policyholder dies, their beneficiaries receive a tax-free death benefit in the amount specified by the policy.
Below is a helpful look at universal life insurance, including a discussion of how it usually works and how it differs from other common kinds of life insurance.
Universal vs. Term Life Insurance
There are two main types of life insurance: permanent life and term life.
Universal life insurance, sometimes called adjustable life, is a kind of permanent life insurance. Policies last for a person’s entire lifetime and can be adjusted at any point if your circumstances or needs change. Typically, you can control such things as the amount of your death benefit, your premium amount, and where your cash value is invested.
Commonly, universal life insurance policies build cash value because the insurer invests a portion of your premiums over time. That money can be for a variety of purposes. You can borrow against it, use it to pay for premiums, withdraw up to a certain amount tax-free, or consider it a safety net.
Term life insurance works a bit differently. Policies provide coverage for a predetermined period of time, or “terms,” which often last between 10 and 30 years. If the policyholder dies within the term, their beneficiaries will receive the policy’s covered value, or “death benefit.” There is no payout if the policyholder dies after the term has expired. Monthly payments are often fixed, and there is no cash value.
By and large, term life insurance tends to be significantly less expensive than universal life insurance. This is due to several reasons, including the fact that term life coverage is temporary, and no cash value accrues during the policy’s term.
Pros of Universal Life Insurance
So, what are the advantages of a universal life insurance policy? For some people, the cash value component of a policy can be an appealing way to help build a nest egg and secure insurance coverage for beneficiaries.
Universal life also tends to be more flexible, allowing policyholders the option to use available funds or save them up for beneficiaries. Premiums can be paid out of the accumulated cash value when needed or desired, though note that doing so reduces the overall cash value of the policy.
Here’s another benefit: Because a universal life insurance policy is permanent, holders don’t need to worry about expiration dates or spend time finding a new policy after an old one expires.
Cons of Universal Life Insurance
Although universal life insurance has its benefits, there are some drawbacks. For instance, premiums are typically higher than term life and tend to increase based on the amount of the death benefit. Also, the returns your policy earns can be unpredictable. That’s because the interest rate varies on these policies, changing along with fluctuating market conditions. The gains of one year may not predict the potential earnings (or losses) of the next. Some policies have built-in floors and caps for the rate of return. For example, a policy invested in a given index might be guaranteed 0% to 12%. If the index posts a loss, the investment will stay the same. Conversely if the index goes up 20%, the insured would only gain 12%.
Here’s something else to consider: Although a universal life insurance policyholder can borrow against their policy’s cash value insurance, interest must be paid on what’s taken out. And when the amount of cash available in a given policy is tapped out, an insurance provider may decide to cancel the policy altogether.
In addition, if a payment is not made on time and the accrued cash value can no longer cover due payments, the policy may be terminated, and there is no payout. However, some companies offer customers a 30-day grace period for missed payments.
What Type of Policy Is Right For Me?
Life insurance policies, no matter the type, have a common goal: to provide loved ones with an added layer of financial security after the policyholder dies. Beneficiaries can use payouts to cover major expenses, such as housing, medical bills, educational costs, child care, and/or other financial needs. In some instances, beneficiaries may use payouts to pay unsettled estate taxes or bills.
When deciding what type of policy to purchase, shoppers might want to calculate how much money is needed to adequately protect their designated beneficiaries. That figure should account for things like your loved one’s needs, any outstanding debts you may have, and other financial responsibilities.
Other variables, such as age, marital status, number of dependents, and expected family income, may also affect which sort of life insurance policy a person may need or be eligible for.
To find out which life insurance policies or rates you may qualify for, request a quote from various insurance providers or agents, either by phone or through their website. You may be asked to provide additional information, such as your income, age, and health.
Recommended: How Much Is Life Insurance?
Should I Get a Life Insurance Agent?
There can be benefits to contacting an agent. Insurance agents are trained in the ins and outs of life insurance. They can explain the difference between term life insurance and whole life insurance policies and walk you through the extra riders (i.e., supplemental coverage) that can be added to standard plans and other fine print. If you’re new to buying life insurance, having that kind of information available can make the decision-making process easier.
When to Buy a Life Insurance Policy
When you decide to buy a life insurance policy depends on a number of factors, including your income and whether you have outstanding debt that your loved ones will end up having to pay after you die.
Generally speaking, the earlier you can purchase a policy, the better. That’s because life insurance is typically priced in part according to a person’s age and overall health. This means the younger and healthier you are when you buy a policy, the more affordable your monthly payments tend to be. Generally speaking, whatever rate you qualify for is locked in when the policy is issued.
What if you have a life insurance plan through their employer? In some cases, those policies offer less generous coverage than plans available on the market — at times, just one to two times the employee’s annual salary. While such policies can provide a quick influx of cash in the event you die, it’s often unlikely to be enough to provide ongoing financial support for those left behind. Plus, not all employer-sponsored life insurance policies are transferable, which means you could lose it if you quit.
If you need more consistent or robust coverage, it may make sense to explore a supplemental policy to more fully protect your family.
Recommended: 8 Popular Types of Life Insurance for Any Age
The Takeaway
Universal life insurance can provide long-term coverage as long as the policyholder is alive, and after they die, pays beneficiaries a set amount of money. This type of insurance is flexible — often, policyholders can control the premium and death benefit amount — and builds cash value over time. Term life insurance, on the other hand, provides coverage for a set amount of time, such as 10 or 20 years, and there’s no cash value attached to the policy. However, term life is usually less expensive than universal life. If you’re new to life insurance, consider enlisting the help of an agent to make sense of your options.
Ready to start shopping for life insurance? SoFi has partnered with Ladder to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. SOPT0523002
If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement. Learn more in our Ladder review.
If you’re looking for an affordable term life insurance policy that you can obtain quickly, you need to check out Ladder. Their streamlined online application can have you approved in a matter of minutes. And according to Ladder, many applications are approved without a medical exam requirement.
In this Ladder review, I’ll let you know what types of policies they offer, key features, who is eligible, and how much you can expect to pay.
Easy to use online applications
No medical exams for up to $3M in coverage; just answer some health-related questions
Adjustable coverage
Table of Contents
Introducing Ladder Insurance
Ladder is a California-based online life insurance provider offering coverage through established life insurance companies. Founded in 2015 and launched in 2017, Ladder’s insurance partners include Allianz Life Insurance Company of New York, Fidelity Security Life Insurance Company®, and its affiliate, Ladder Life Insurance Company.
While the entire application process is online, you can get help from licensed insurance professionals, if needed, who are happy to help.
How Ladder Term Life Insurance Works
Ladder only offers term life insurance policies. Ladder’s mission is to offer affordable policies with speed and ease. Term life insurance best fits that product type.
When applying with Ladder, you should be aware the company does not offer policy riders. These optional additional coverage provisions provide more benefits but at a higher premium. That higher premium is the reason why Ladder doesn’t offer them.
Ladder’s most unique feature is that it allows you to increase or decrease your coverage as needed.
Laddering Up/Laddering Down
The name Ladder hints at its most unique feature – the ability to increase or decrease your coverage as needed. The process is known as ‘laddering up’ or ‘laddering down.’ Existing policyholders can increase their death benefit amount as their needs change, subject to underwriting and approval.
Conversely, if your coverage needs decline, you can reduce the death benefit. In short, Ladder Life puts you in charge of the policy’s face amount and the premium you’ll pay. You can request a change to your coverage by visiting the Ladder account page.
Laddering your policy, up or down, is completely free. And you can ladder your policy as often as you like. Naturally, the premium will increase if you ladder up the policy amount. And if you ladder down the death benefit, the premium will decrease.
Term Length Options
Ladder offers terms ranging from 10 to 30 years, the maximum term you can qualify for, regardless of age. That said, your age at the time of application may reduce the maximum term for which you qualify. The maximum issue age is 60.
Ladder uses a simple calculation to determine the maximum term length of a policy. Your current age, plus the term length, cannot exceed 70. For example, if you’re 40, the longest term is 30 years (40+30 = 70.) If you’re 50, the longest term is 20 years (50+20 = 70.)
Ladder policies are underwritten based on your nearest birthday. For example, if you will be 45 in four months, your age will be considered 45 years, not 44.
Policies are renewable for up to 5 years after the guaranteed level premium term. The new premium will be based on your age at renewal and, therefore, higher, but this is how term life insurance renewals work.
Ladder Pricing
Like all life insurance policies, Ladder policy premiums depend on a combination of factors. Those include your age at the time of application, health condition, occupation, hobbies and pastimes, and even geographic location.
We requested information for a non-smoking 40-year-old male in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:
10 years – $37.50 per month
15 years – $47.70 per month
20 years – $61.80 per month
25 years – $96.90 per month
30 years – $114.30 per month
We then requested a policy for a non-smoking 40-year-old female in excellent health with no family history of major illnesses, and we received the following quotes for $1 million in coverage:
10 years – $35.40 per month
15 years – $46.80 per month
20 years – $52.50 per month
25 years – $77.10 per month
30 years – $88.50 per month
The monthly premiums for men are slightly higher than for women, which is common throughout the life insurance industry. This owes to the fact that women statistically live longer than men by several years.
The premium rate increases with the term of the policy because the longer the term, the greater the likelihood the company will ultimately pay the death benefit.
Ladder Maximum Coverage Limits
Ladder coverage limits range from a minimum of $100,000 to a maximum of $8 million (up to $3 million in CA). If you apply for $3 million or less, you won’t have to take a medical exam, just answer health questions. Applicants applying for benefits greater than $3 million may need to submit to a medical exam.
Policies offered through Ladder have a single death benefit payout, which is paid in a lump sum to the beneficiaries upon the death of the insured. Unlike some life insurance companies, there is no option to distribute benefits in installments or through any other payout method.
As mentioned, Ladder does not offer common life insurance riders, so you won’t have the ability to add provisions, such as a spousal rider, an accelerated death benefit (living benefits), double indemnity (increased death benefit for death caused by an accident), or a conversion provision that enables you to convert the term policy to a permanent, whole life policy before the term expires.
Ladder Coverage Eligibility
Ladder offers coverage for those between the ages of 20 and 60. If you are over 60, you’ll need to make an application elsewhere. Each application is for a single individual, so there is no capability to apply jointly with your spouse or to add your children. Each person will need to complete a separate application.
Policies are available only to US citizens and lawful permanent resident aliens who have lived in the US for at least two years. Ladder offers policies in all 50 states, as well as the District of Columbia.
Ladder Application Process
The application process takes place online, which helps Ladder keep premiums low.
You can apply for coverage in as little as 5 minutes. You will not be required to complete a medical exam for coverage up to $3 million.
But for coverage above $3 million, the approval decision may be delayed several weeks.
Ladder Underwriting
When completing the application, Ladder will request basic information, like your name and email address. In making the underwriting decision, they’ll also request the following information:
Your height and weight
The last time you used tobacco or nicotine products
Your date of birth
Whether a biological parent or sibling has been diagnosed by a physician with diabetes, cancer, heart disease, Huntington’s Disease, or Lynch Syndrome before the age of 60?
Your annual household income
How many children you have
Your remaining mortgage balance
Your answers to these and other questions will determine your eligibility for life insurance coverage, as well as the premium you’ll pay for the policy.
Is Ladder Legit?
Ladder Life is a legitimate term life insurance services provider, offering policies in all 50 US states. The following information indicates its financial strength and how it’s perceived within the insurance industry and by its customers.
Financial Strength
Since Ladder is not the direct issuer of the policies they offer, the company is not rated for financial strength by A.M. Best, the industry’s most well-recognized insurance company rating agency.
But the ratings for two of Ladder’s issuing companies are as follows:
Allianz Life Insurance Company of New York, A+ (Superior)*
Fidelity Security Life Insurance Company, A (Excellent)*
Since each of the companies is rated “A” or higher by A.M. Best, each is highly likely to have the financial strength to pay the policy death benefit, if necessary.
Ladder’s third issuing company is its affiliate, Ladder Life Insurance Company. Ladder Life Insurance Company has earned a Financial Stability Rating® (FSR) of A (Exceptional) from Demotech, Inc. FSRs are a leading indicator of financial stability, providing an objective baseline of future solvency. The most current FSRs must be verified by visiting www.demotech.com
Third-Party Ratings
In addition to financial strength ratings by A.M. Best, we’ve also considered the credit rating of each of the three providers behind Ladder. The credit rating indicates the company’s ability to meet its financial obligations and continue operations as a going concern.
The news here is as good as it is with the financial strength ratings. The table below shows the credit ratings of two of the companies from two major corporate credit evaluation agencies:
Insurance Company / Rating Service
Moody’s
Standard & Poor’s
Allianz Life Insurance Company of New York
A1 (5th of 21 ratings)
AA (3rd of 21 ratings)
Fidelity Security Life Insurance Company®
N/A
N/A
Customer Service Ratings
Perhaps the best indicator of Ladder’s reputation as a life insurance services provider is to look at the ratings provided by the people who deal most closely with Ladder – its customers. Ladder has an Excellent Trustpilot score of 4.8/5, based on almost 2400 customer reviews. 89% of customers have assigned them a 5-star rating, and only 5 % rated them three stars or fewer.
We could not locate a rating for Ladder with the Better Business Bureau. However, the BBB has an “A+” (highest) rating for Fidelity Security Life Insurance Company® and has been agency accredited since 1990. There is, however, no BBB rating for Allianz Life Insurance Company of New York, perhaps because the company is an affiliated organization.
How We Evaluated Ladder Life Insurance
We’ve evaluated Ladder based on the policy terms offered, the dollar amount of the death benefits, and the premiums’ cost. We’ve also taken into account applicant eligibility, as well as the apparent underwriting criteria the company uses.
We’ve also considered third-party information about the company, including its financial strength and reputation. Finally, we considered factors that make Ladder Life unique regarding what niche they fill in the insurance industry.
Ladder Pros and Cons
There’s a lot to like about Ladder, but it does lack some key features people look for when shopping for life insurance. Whether or not that matters to you will depend on what you want in a life insurance policy. Here’s our list of Ladder’s pros and cons.
Pros
Affordable term life insurance
Complete your entire application online
Good chance of no medical exam (if you’re in good health)
High maximum coverage of $8MM
Ladder up or down to change your existing insurance coverage
Excellent Trustpilot rating from Ladder Life customers
Cons
Is Ladder a Good Company?
Ladder is one of the best online life insurance companies for term insurance. While they don’t offer as many coverage options as other providers (term life only, no riders), they provide straightforward term coverage that’s affordable and easy to apply for. You can complete the entire process online, and if you’re in good health, you likely won’t require a medical exam.
Ladder partners with top-notch insurance companies and can boast very high customer ratings. And their Ladder Up/Down features only add to Ladder’s convenience.
Of course, if you fall outside Ladder’s qualifying criteria, i.e., over 60, want universal or whole life insurance, or require specialized coverage via insurance riders, then Ladder is not for you.
The bottom line is if you meet Ladder’s age requirements and are of good health, it’s one of the best places to get term life insurance – which is what the vast majority of American adults need.
FAQs on Ladder Life Insurance
Is Ladder a real life insurance company?
Ladder is a “real” life insurance company that provides online term life insurance. It was founded in 2015 and is headquartered in San Francisco, California. The company offers a range of term life insurance products that can be customized to meet the specific needs of individual customers.
Ladder’s insurance policies are underwritten by companies including Fidelity Security Life Insurance Company® and Allianz Life Insurance Company of New York, both of which are leading life insurance companies. Ladder’s website allows customers to easily apply for and purchase life insurance online, and the company also offers support through its customer service team.
Does Ladder pay out on their insurance policies?
Yes, life insurance policies sold through Ladder pay out in the event of the policyholder’s death, as long as the policy is in effect and the death is covered under the terms of the policy. Life insurance policies are designed to provide financial protection for the policyholder’s loved ones in the event of the policyholder’s death.
Is buying life insurance online safe?
Buying life insurance online can be safe as long as you take certain precautions. Here are some tips to help you ensure that your online life insurance purchase is safe:
1. Do your research: Make sure you understand the different types of life insurance policies available and what each one covers. This will help you make an informed decision about which policy is right for you.
2. Compare quotes: It’s a good idea to compare quotes from multiple insurance companies before you make a purchase. This will help you find the best rate for the coverage you need.
3. Check the company’s reputation: Do some research on the insurance company you are considering purchasing from. Look for reviews and ratings from independent sources, such as the Better Business Bureau.
4. Understand the policy terms: Make sure you fully understand the policy terms before making a purchase. Pay attention to details such as the policy’s length, coverage amount, and any exclusions or limitations.
5. Protect your personal information: Be careful when providing personal information online, especially when it comes to financial information. Make sure the website you use is secure, and protect your personal information by using a strong password and avoiding sharing it with others.
How much life insurance do I need?
Here’s what you need to know on determining how much life insurance you need include:
Your financial obligations: Consider the financial obligations you have, such as a mortgage, car loans, credit card debt, and other expenses. You’ll want enough life insurance to cover these obligations in the event of your death.
Your income: If you have dependents, you may want to have enough life insurance to replace your income in the event of your death. This can help your loved ones maintain their standard of living.
Your assets: If you have significant assets, such as a business or property, you want to have enough life insurance to cover the value of these assets in the event of your death.
Your future financial goals: Consider your future financial goals, such as paying for your children’s education or saving for retirement. You want to have enough life insurance to help your loved ones achieve these goals even if you are not there to contribute.
Product Description: Ladder is a life insurance services provider that offers term life insurance policies to consumers. It was founded in 2015 and is headquartered in Palo Alto, CA.
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Summary
Ladder offers term life insurance coverage of between $100K to $8M with no medical exams for coverage up to $3M (just answer health-related questions). Adjust coverage anytime.
Cost and Fees
Customer Service
User Experience
Product Offerings
Overall
4.3
Pros
Offers adjustable term life insurance ranging from 10 to 30 years in 5-year increments.
The company has a user-friendly website and offers a range of online tools and resources to help consumers understand and compare different life insurance options.
Offers no medical exam coverage up to $3M, which may be a good option for individuals who are unable or unwilling to undergo a medical exam as part of the application process.
Cons
No-exam life insurance policies are typically more expensive than traditional life insurance policies
May not be the best option for individuals with pre-existing health conditions or other risk factors
Do not offer riders on their insurance policies such as: Accidental death and dismemberment (AD&D) rider, waiver of premium rider, or return of premium rider.
*Allianz Life Insurance Company of New York has been rated A+ (Superior) affirmed October 2021 and Fidelity Security Life Insurance Company® has been rated A (Excellent) based on an analysis of financial position and operating performance, by A.M. Best Company, an independent analyst of the insurance industry. For the latest rating, accesswww.ambest.com.
Ladder Insurance Services, LLC (CA license # 0K22568; AR license # 3000140372) offers term life insurance policies: (i) in California, on behalf of its affiliate, Ladder Life Insurance Company, Menlo Park, CA (policy form # P-LL100CA); (ii) in New York, on behalf of Allianz Life Insurance Company of New York, New York, NY (policy form # MN-26); and (iii) Fidelity Security Life Insurance Company®, Kansas City, MO (policy form # ICC17-M-1069, M-1069 and policy # TL-146) in the District of Columbia and all states except New York and California. Only Allianz Life Insurance Company of New York is authorized to issue life insurance in the state of New York. Insurance policy prices, coverages, features, terms, benefits, exclusions, limitations and available discounts vary among these insurers and are subject to qualifications. Each insurer is solely responsible for any claims and has financial responsibility for its own products.
Life insurance is an incredible investment. It allows you to get the insurance protection needed for your family, especially if an unfortunate event occurred. But, what if you end up with a chronic condition that drains your bank account?
For anyone with a terminal illness, an accelerated death benefit can be savior.
An accelerated death benefit is an insurance benefit that pays out while the insured is still alive.
Usually, only people who are suffering from terminal illnesses are eligible for accelerated death benefits.
This is also called a living benefit.
What Is A Living Benefit?
A living benefit can be added to an insurance policy before or after purchase. With this benefit, patients who have a terminal illness can access part of their benefits before their death. Initially, when this benefit was first created, it was offered only to people with HIV/AIDS.
Overtime, it was offered to people who suffered from kidney failure, cancer, and other terminal illnesses. Medical expenses for a terminal illness can be very expensive, and there are also living expenses that the terminally ill have to pay as well. A living benefit can aid with all of these expenses and can be of a great help to those who have terminal illnesses.
Many insurance companies offer a living benefit as a rider in some of their life insurance policies. It is commonly included in permanent life insurance policies. So many different packages and payment options are available for living death benefit. You can receive the death benefit if you already have a terminal disease or if you contract one in the future.
Not everyone wants to think of the possibility of contracting a terminal disease, but for some, a living benefit may be something they wish to add to their policy. You will receive a percentage of the death benefits depending on the insurance company. This company usually ranges from 25-95%. After death, the remainder of the benefit is paid out to your beneficiaries. If you should recover from your illness, then you will not have to repay the benefits you received.
How Do You Qualify For An Accelerated Death Benefit?
You qualify for a living benefit if you have contracted a terminal illness and are expected to die in two years, if you have been diagnosed with an illness that will reduce your life span, if you have an illness that requires an organ transplant, if you are in long-term care in a hospice, or if you need assistance with every day activities, like bathing or using the toilet.
The cost of a living benefit will vary depending on the company. Sometimes your policy might have the rider grouped in with your premium which would be ideal. Otherwise, you will owe a percentage of the benefit.
How Are You Taxed On Accelerated Death Benefits?
These benefits are not taxable. Normally if you were to pass within 2 years it would be exempt. Use the rider to supplement any costs that aren’t covered by your insurance company. If you believe you may be eligible for a death benefit, then talk with your insurance agent. Also, keep in mind that receiving a living benefit might change your chances of Medicaid or SSI in the future.
Accelerated Death Benefit Example
Here’s an example of how an accidental benefit rider might play out.
Client induces a qualifying chronic, critical, or terminal illness.
Client files a claim to accelerate all or a portion of the death benefit.
Our claims department and underwriters review the medical records and prognosis ratings and make a discounted offer, based on the change in life expectancy. The higher the change in life expectancy, the higher the percentage the client will be offered.
If the client accepts the offer, they receive the determined amount as a lump sum within two weeks. If the entire death benefit is accelerated, the remaining face is $0 and the policy terminates. If a portion of the death benefit remains, the client’s premium will reflect the new face amount. Below is an example:
Bill is 47 years old, preferred NT with a $2 million policy. He suffered a major heart attack and decides he wants to accelerate $1,000,000 of his face. The company reviews the claim and makes a lump offer of $500,000. Bob accepts and is mailed a $500,000 check in the next two weeks. His death benefit has now been decreased by the amount of face he accelerated ($1,000,000), so his remaining death benefit is $1,000,000. He will now pay premiums based on a $1,000,000 face amount, not the initial $2 million face.
Regarding the taxes: first and foremost, be aware of the fact that I or the insurance company can act in the capacity of a tax advisor or CPA. We always advise our clients to seek their own tax council. That being said, we have designed our ABRs to be within compliance with current IRS regulations. With regards to the terminal illness rider, the IRS has defined it to be an acceleration of the death benefits, and therefore it is not taxable.
What About Chronic Illness?
For chronic illness, they have proposed but not adopted the rider in the same light. The IRS has not provided any opinion on critical illness payments. With all of that in mind, I am not aware of any accelerated benefit that has been taxed by the IRS. This is, of course, under the assumption that the policy has not be turned into a modified endowment contract (MEC). Once a policy is MEC’d, it is always a MEC, and all benefits are taxable. But again, always involve a tax advisor or CPA when dealing with the IRS. They know the dark side of the force better than any of us.
Accelerated Death Riders and Life Insurance
Starting to look at the options associated with your life insurance policy can bring about tough conversations. It’s hard to talk about your death or the demise of someone close to you. But it is important because someone could be left with large debt and final expenses. Having to worry about those payments adds to a stressful situation.
It is common for people to putt off adding the accelerated rider is because they assume that it will be too expensive for their budget, but that is just false. In most cases, there are dozens of affordable options to give your family life insurance protection, and any additional riders that you need.
There are various ways of calculating premiums on their life insurance and riders and no company has the same value on these factors. To get the best rates, you’ll need to ask for many quotes until you find a perfect plan for your needs. Don’t waste your time calling all of those agents yourself. Let us do the searching for you. As independent agents we offer the best way to get the lowest insurance rates. Our appointments are with multiple carriers so we have expanded options which makes it easier to give you the best quote for your coverage.
Our years working in the industry have given us knowledge to answer any question you can think of. And if we don’t know it we will find the answer for you. Our main goal is to give your family the protection they deserve.
Northwestern Mutual Donates $270,000 to Nonprofits Nationwide through its Community Service Awards Program Company recognizes its financial advisors’ unwavering dedication to volunteerism MILWAUKEE, Feb. 16, 2023 /PRNewswire/ — Celebrating the philanthropic work of its financial advisors, Northwestern Mutual is recognizing the individuals who have shown outstanding volunteerism and leadership through its 2023 Community Service Awards. … [Read more…]
Northwestern Mutual Recognized by Forbes as one of America’s Best Large Employers MILWAUKEE, March 15, 2023 /PRNewswire/ — Northwestern Mutual, a leading financial services company, announced today that it was selected by Forbes as one of America’s Best Large Employers. This honor – the latest in a series of awards and accolades recognizing Northwestern Mutual’s exceptional … [Read more…]
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There were 4,821 fatal occupational injuries in America in 2014. That’s a 5% increase from 2013, according to the Bureau of Labor Statistics. While all workplaces take precautions to limit fatal accidents, there are some occupations for which the risk of fatal accidents is unfortunately much higher.
In order to determine the most dangerous jobs in the U.S., we looked at total number of fatalities and hours worked from 2011-2014 for all occupations for which the Bureau of Labor Statistics keeps records. We ranked the most dangerous jobs by fatality rate, which we measured in fatalities per 100,000 workers. You can read our full methodology below.
Find out how much life insurance you need.
Key Findings
Low-paying manual labor – Many of the most dangerous jobs are forms of lower-skilled manual labor. Often they don’t require more than a high school education. In many cases, these workers are not very well-compensated despite the risks that they face.
Driving can be dangerous – Several occupations that involve a significant amount of driving appeared on our list. Truck drivers, refuse collectors and taxi drivers and chauffeurs ranked in the top 10.
Police work – A total of 411 police and sheriff’s patrol officers died on the job during the four-year period we considered. About half of those deaths were due to injuries caused by people or animals, according to the Bureau of Labor Statistics. Still, police work only ranked as the 14th most dangerous job.
1. Logging workers
Logging is the most dangerous occupation in the U.S. with a fatality rate of 89 per 100,000 workers. Logging is physically demanding and requires large portions of time spent outdoors in potentially hazardous areas. According to the Bureau of Labor Statistics, most fatalities among logging workers occur from falling logs or contact with a machine. Logging workers earn a yearly median income of $36,210. That’s in contrast to the overall median income for full-time workers in the U.S. which is $44,819. Most logging work is done in the Pacific Northwest in the evergreen forests of Washington and Oregon.
2. Fishers and related fishing workers.
The Discovery Channel produces a show called “The Deadliest Catch” which highlights the dangers of high seas fishing. The fatality rate for fishers and related fishing workers is 81 per 100,000 workers. The majority of on-the-job fatalities among fishers occur from drowning. Another concern for fishers is that when accidents occur workers are often far out at sea where access to medical facilities may be limited.
3. Aircraft pilots and flight engineers
The fatality rate for this occupation is 54 per 100,000 workers – almost 30% less than the fatality rate for the occupations in the first two positions. Commercial pilots face risks from hazardous weather as well as long overnight flights, but flying non-commercial aircraft is often more dangerous. Non-commercial pilots are involved in firefighting and crop dusting, both of which require flying at low altitudes with a higher chance of fatal accidents. Due to the dangers, plus the high skill level required for flying aircraft, pilots and flight engineers make an average of $117,290.
Related Article: The Top 10 Jobs for Salary and Growth
4. Roofers
Roofers had a fatality rate of 38 per 100,000 workers over the 2011-2014 timeline. Most fatalities among roofers occur from slipping from scaffolding, ladders or roofs. Interestingly, the Bureau of Labor Statistics predicts that roofing will experience a 13% job growth over the next decade, which is higher than average. The occupation pays $36,720 on average.
5. Refuse and recyclable material collectors
Refuse and recyclable material collectors have a fatality rate of 32 per 100,000 workers. Workers in this occupation make $36,370 per year on average. Refuse and recyclable material collectors face dangers from driving, as well as accidents related to the truck and lift systems.
6. Farmers, ranchers and other agricultural managers
Farmers, ranchers and other agricultural managers “operate establishments that produce crops, livestock and dairy products,” according to the Bureau of Labor Statistics. Workers in this occupation had a fatality rate of 24.7 per 100,000 workers over the 2011-2014 period. While farming may sound relatively safe, there are dangers involved with operating the heavy machinery required for mass production. Farmers make $64,170 per year on average, and around 70% are self-employed.
7. Truck drivers and driver/sales workers
Truck drivers and driver/sales workers experience a fatality rate of 23 per 100,000 workers. This occupation can be dangerous because driving long hours may become tiring and result in vehicular accidents. Workers in this occupation make $27,760 per year on average.
Related Article: States With the Worst Drivers
8. Electrical power-line installers and repairers
Other than facing the obvious danger of electrocution, workers in this occupation also need to get over their fear of heights. Although they typically use bucket trucks, electrical power-line installers and repairers occasionally have to climb utility poles by hand. Alabama has the highest concentration of electrical power-line installer and repairer jobs in the country at 2.06 per 1,000 jobs.
9. Taxi drivers and chauffeurs
Taxi drivers and chauffeurs have a fatality rate of 18 per 100,000 workers. Like delivery truck workers, they face dangers from long hours on the road. On average taxi drivers and chauffeurs make $23,150 annually. There is little to no education required for becoming a taxi driver and typically little on the job training which is why it’s a lower-paying occupation.
10. Miscellaneous agricultural workers
These are people who work under the farmers, ranchers and agricultural managers who we discussed earlier. These workers may have less dangerous jobs than farmers and ranchers because they spend less time operating the heavy machinery which pose the greatest threat to people working on farms. These workers also face danger from livestock. Overall, this is the lowest-paying occupation in the top 10 with an average annual salary of $20,090 or about $9 per hour.
Data and Methodology
In order to rank the most dangerous jobs in the U.S., we gathered data in the following two metrics:
Total fatalities per occupation. This measures the raw number of fatalities in each occupation over the 2011-2014 time period. The data comes from the Bureau of Labor Statistics.
Total hours worked per occupation. This measures how many total hours were worked in each occupation over the 2011-2014 time period. It is measured in millions of hours. The data comes from the Bureau of Labor Statistics.
We used these two metrics to calculate the number of fatalities per 100,000 workers in each occupation. To do this, we divided the total number of fatalities by the total number of hours worked and then multiplied the result by 100,000 (to account for 100,000 workers) and then by 2,000 (to account for the estimated number of hours each employee worked per year). We assumed that each employee worked 40 hours per week for 50 weeks per year.
We then ranked each occupation from the highest fatality rate per 100,000 workers to the lowest fatality rate per 100,000 workers.
For the sake of clarity, we excluded a few vaguely worded occupations from the final ranking. We also did not include occupations for which we did not have complete data over the four-year time period. For example, we have data for mining machine operators in 2013 but not in 2014. As such, they were not included in the final table.
Derek Miller, CEPF®
Derek Miller is a graduate of the University of Edinburgh where he studied economics. He is passionate about using data to help people make better financial decisions. Derek is a Certified Educator in Personal Finance® (CEPF®) and a member of the Society for Advancing Business Editing and Writing. He is a data journalist whose expertise is in finding the stories within the numbers. Derek’s writing has been featured on Yahoo, AOL, and Huffington Post. He believes the biggest financial mistake people make is waiting too late to save for retirement and missing out on the wonders of compounding interest. Derek lives in Brooklyn.
When applying to get life insurance the insurers will look to see if you are a higher risk applicant. And their determination will impact you once you get your quote. Either your premium will be standard or they’ll charge you more depending on what their risk-outcome algorithm states.
When you need to provide more information when applying for life insurance policies, the attending physician statement is the standard way to obtain that information.
Essentially, the attending physician statement (APS) is a report from a doctor or medical facility that either has treated or is currently treating someone that is seeking life insurance.
In applying for life insurance, this is perhaps the top ordered source of background information.
What Exactly Is Your Attending Physician Statement?
The attending physician statement is one of the most difficult and time consuming requirements needed when applying life insurance, but it is also the most sound and proven form of additional background information.
Since the statement can only be written when the doctor has the free time to do so, it can often be weeks or a month for this information to arrive. Once it does, then it can take quite a bit of time to verify for use in the overall medical information history of the person applying life insurance or other policies.
Essentially, when applying life insurance there are numerous medical questions that must be asked in order to secure the type of policy that is sought. If there was a previous medical condition or current treatments underway, then there must be real verification by the attending physician in order to provide the proper perspective.
Evaluating How Risky You Are
When the medical risk to the patient is evaluated, the attending physician’s statement needs not only to be included, but summarized by the underwriter. This summary can vary depending on the underwriter and the style, focus or method that they choose. Quite often, the summary can vary in some detail, but normally the general focus of the statement is held true in the summary.
However, there are times in which the summary can be misleading or even wrong which can greatly affect the position of the insurance policy. In this case, finding an experienced, solid underwriter can make a contrast preparing an accurate summary of the attending physician’s statement. Any missing information, however subtle, can have a powerful effect on whether insurance is approved.
Many underwriters use a template structure, a common form of writing that allows them to summarize the information in a structure that is recognizable. This structure allows for the summary to include all the pertinent information which allows insurance companies to make more proper evaluation about the information presenting in the attending physician’s statement.
How Insurers Interpret Your Attending Physician Statement
Evaluating medical risks is the job of the underwriters when they take the attending physician’s statement. This means using a solid template so that all the pertinent information can be gathered and evaluated properly. The attending physician’s statement is vital to properly evaluating medical risk whether they have occurred in the past or present for insurance companies to make informed decisions.
Insuring that the attending physician statement is accurately summarized is a vital part of providing accurate information to the insurance company when they make decisions about life insurance policies. One mistake or misrepresentation can be costly the person applying for the life insurance or the company itself.
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Do No Medical Exam Plans Still Obtain Physician Statements?
A no medical exam is an excellent option for life insurance coverage for any applicant that has been declined for coverage or has several pre-existing health complications such as diabetes. If it isn’t obvious by now, we’ll let you on a little secret, no med exam is required to get the protection life insurance offers in these plans. There is a lot of confusion about these policies and what information the insurance company will require before they accept your application.
You could apply for a plan with several different companies but results could be all over the place because no insurer has the same requirements for how they handle no medical exam life insurance plan.
For the most part, the insurance company is not going to get a physician statement with a no medical exam plan. With most no medical exam policies, the insurance company will only ask a handful of questions during the application process.
If you’re looking to get life insurance coverage, and you’ve been declined in the past, or you have pre-existing conditions, this plans could be an excellent option for you.
There are some advantages to these no medical life insurance programs to be mindful of as you look for coverage. We want you to get the best plan to meet your needs, and you should compare all of the different options before purchasing a plan.
The first advantage is life insurance is open for all! Health issues? You can get a plan. Pre-existing problems? You can get a plan! with a no medical exam, your health won’t keep you from getting a policy.
Another significant advantage is how quickly a life insurance policy can be issued if you go this route. Since there’s no exam or underwriting the application is normally approved once the payment is received. This certainly helps you out if you’re in a situation where health could decline rapidly in the near future and no life insurance protection is possible or the premiums could be out of your budget.
However, every advantage has its disadvantage, and the biggest one is that these plans will cost more per monnth than a policy that requires a medical exam. The purpose of the exam is to let the insurer know what your overall health is. Without the picture, they are taking a much greater risk by giving you life insurance and by taking that risk it’ll end up hurting your wallet more than you originally realized.
Lastly, is that the insurance company can limit how coverage you can buy. Many companies will only allow you to purchase around $250,000 of life insurance. Unfortunately for many this won’t cover all they need it to. If you need more than this, your only option is buying two of them.
Don’t let some of this knowledge discourage you from buying insurance and protecting your family’s finances from future debt.
Around half of Americans have a life insurance policy. Financial advisors recommend having life insurance coverage that’s 10 to 15 times the amount of the insured’s annual income.
But additional insurance may be recommended to cover costs such as outstanding debt, children’s college education costs, or lifetime support of a disabled family member. Perhaps it’s no surprise that about one in five people who have insurance think they don’t have enough.
Getting to that life insurance protection point may be made easier by purchasing multiple life insurance policies. How many life insurance policies can a person have? There is no legal limit, and each person has unique life insurance needs, which will influence the number of life insurance policies held. There are also upsides and downsides to buying multiple insurance policies.
Why Have Multiple Insurance Policies?
Time is a big influencer on having multiple life insurance policies. For instance, a financial consumer may still have a whole life insurance policy that was taken out in childhood.
As the policyholder grows up and has a family, they may decide to take out a second life insurance policy to cover those financial dependents.
Or, an existing life insurance policy holder may need additional coverage for specific needs. Consider a homeowner with a family and a home mortgage. The homeowner may need a second life insurance policy to cover the mortgage owed on the home in the event he or she passes away.
Even smaller expenses can trigger the need for an extra life insurance policy. For example, the head of a household might consider buying an extra life insurance policy to cover the cost of funeral expenses, so the grieving family will have one less thing to worry about.
Recommended: 8 Popular Types of Life Insurance for Any Age
How Multiple Life Insurance Policies May Work
Since buying a home or starting a family has such a big impact on a family’s finances, adding more life insurance is certainly understandable.
In that context, adding extra life insurance in the form of an additional policy may make good sense. Using a policyholder with a mortgage and a family as an example, here’s how having multiple life insurance policies might work.
Term Life Policy: Enough life insurance to cover the cost of a home mortgage in the event the policyholder passes away.
Let’s say the head of household needs to cover a $300,000 mortgage. They buy a $300,000 term life insurance policy that expires in 30 years, when presumably the mortgage will be paid off.
If, in the event the policyholder dies sometime during those 30 years, the term life insurance policy pays $300,000, which the family can use to pay off the mortgage and remain in the home. If the policyholder is still alive after the 30-year term ends, the term life insurance contract ends with no more premiums owed on the policy, but no death benefit either.
Additional Term Life Policy
The head of household wants to leave his or her family in good financial shape after passing on. That means not only covering the costs of a mortgage, but also household bills, health care expenses, and the cost of college education for the children. A 20-year policy for $200,000 might ensure the family’s ability to cover necessary expenses, should the policyholder die during the policy term.
In the above example, the policyholder “doubles up” by purchasing one term life insurance policy to cover mortgage protection, so the family can continue living in the home without fear of having to cover mortgage costs and a separate term life policy meant to cover basic household and life expenses .
Life Insurance Laddering
Another approach is buying three life insurance policies and possibly paying less than a large single life insurance policy might cost.
The strategy is called “laddering.” Instead of buying one large life insurance policy for $1 million, for example, the policyholder might buy three smaller, term life insurance policies that equal $1 million, each for a different term. For example:
• A 10-year term life policy for $500,000 worth of coverage. • A 20-year term life policy for $300,000 worth of coverage. • A 30-year term life policy for $200,000 worth of coverage.
By stacking, or laddering, life insurance policies over different timetables, the policyholder is getting the exact financial coverage he or she needs at different stages of their life.
The laddering concept could give the policyholder some financial leverage with their insurance strategy. Typically, as a policyholder grows older, the need for life insurance declines, as the mortgage is paid down and children are grown and financially responsible for themselves.
Note that each person’s insurance cost will be different based on age, gender, health, hobbies, and other factors, so laddering may not be the right choice for everyone.
Pros and Cons of Having Multiple Life Insurance Policies
A person’s unique coverage needs will influence any decision to expand a current policy, add a new life insurance policy, or simply keep their current life insurance as it currently stands.
Pros:
Adding to a group life policy. Those with group life insurance subsidized by their employers may not have adequate financial protection. Coverage through an employer may not follow the employee, either, so if a person changes jobs, typically that coverage will no longer be in effect. Buying additional coverage could give a policyholder the life insurance protection they need.
Providing extra protection for life stages. Big “life stages” events like buying a home, having children, or launching a business may increase the need for more life insurance. As more value is added to a person’s net worth, the need for adequate life insurance to ensure their family is protected after they’re gone increases. An extra life insurance policy may provide that extra cushion of financial support. Term life insurance places a limit on the policy’s length based on insurance protection needs
Curbing risk. It doesn’t happen often, but insurance companies can go out of business. While an extra life insurance policy might add another layer of financial protection in the event of this worst-case scenario, consumers do have some protection through insurance guaranty associations. These guaranty associations provide benefits to policyholders and beneficiaries of policyholders in the case of an insurance company becoming insolvent. Insurance companies are legally required to join guaranty associations in the states where they do business.
Cons:
Coverage denial. Applying for multiple life insurance policies may signal companies that you’re attempting to purchase more life insurance than you actually need.
Insurance companies can and do share encrypted customer data, including the existence of multiple life insurance applications, via an industry organization known as the Medical Information Bureau (MIB).
Insurance providers rely on the MIB to ensure they’re not providing more life insurance coverage to a consumer than is necessary. Thus, having two or more life insurance applications under consideration by different companies could draw attention and end up in a denial of coverage based on a consumer’s intent to purchase more life insurance coverage than is necessary. Generally, during a life insurance interview, insurance companies will ask about other coverage an applicant already has in force or has pending. This double checking is to make sure a person will not be overinsured. The MIB also helps prevent fraud by proposed insureds because the MIB includes previous denials that could be left off of an application.
More complex record keeping. Multiple policies means multiple payments and more paperwork to keep track of. A missed payment could mean termination of a policy. For people who have a difficult time keeping track of household records and payments, multiple policies may not be a good idea. It can be easier to manage everything if all policies are through the same insurer.
Possible increasing premiums. Want to keep the cost of life insurance in check? Premiums are generally less expensive for young, healthy people. Purchasing one larger policy at a relatively young age may cost less overall.
Alternative to Having Multiple Policies
One possible strategy for maximizing life insurance benefits without taking out multiple policies is the use of insurance riders, which can add benefits to a policy without having to take out a new one. An insurance rider is supplementary coverage to an existing policy.
Some examples of riders are conversion of an addition of long-term care insurance to a basic life policy or accidental death and dismemberment for someone with a particularly dangerous job or hobby.
Policies may include conversion privileges, but riders can extend the amount of time the policyholder can convert. The cost of an insurance rider varies depending on the type of rider and the insurer. Each person’s insurance needs will determine which, if any, rider is necessary, and if the cost is affordable to them.
Recommended: What Is Life Insurance and How Does It Work?
The Takeaway
By purchasing multiple life insurance policies, policyholders can have extra coverage that pays out on a specific debt, like a mortgage payment, after the policyholder passes away. Additionally, multiple policies can help consumers get the exact life insurance coverage they need — when they need it most.
If you’re shopping for life insurance, SoFi has partnered with Ladder to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Coverage and pricing is subject to eligibility and underwriting criteria.
Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers- for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products.
Ladder, SoFi and SoFi Agency are separate, independent entities and are not responsible for the financial condition, business, or legal obligations of the other, Social Finance. Inc. (SoFi) and Social Finance Life Insurance Agency, LLC (SoFi Agency) do not issue, underwrite insurance or pay claims under Ladder Life™ policies. SoFi is compensated by Ladder for each issued term life policy.
SoFi Agency and its affiliates do not guarantee the services of any insurance company.
All services from Ladder Insurance Services, LLC are their own. Once you reach Ladder, SoFi is not involved and has no control over the products or services involved. The Ladder service is limited to documents and does not provide legal advice. Individual circumstances are unique and using documents provided is not a substitute for obtaining legal advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. SOPT0523010
Applying for life insurance can be a long and difficult process, but it isn’t as bad as most people think. It’s one of the most important purchases that you’ll ever make for your loved ones. You may even ask when should you get life insurance? When you apply for life insurance, the insurance company will need to review your overall health before giving you a policy.
This will determine whether you can qualify for coverage and the price of your policy. For this review, the company could look up your old health insurance records, ask you to see a doctor for a physical, or request a urine sample.
You will also likely have to take a blood test before qualifying for a policy. This blood test is going to have a huge impact on your life insurance policy and how much you pay for it, which means that you’ll need to understand everything about the test and what they are looking for.
Why Do Insurance Companies Use Blood Tests?
Insurance companies use blood tests to detect problems that you might not be aware of. It’s possible that you could have some sort of problem and yet aren’t showing any symptoms. This is quite common with liver and kidney problems. Insurance companies also use blood tests to see the severity of any problems you currently have, like diabetes or high cholesterol.
Typically, after you’ve applied for a policy, the insurance company will send a nurse to your home to take a blood and urine sample. The nurse will then take the blood and urine to a lab for a number of different tests.
Types of Blood Tests
To test your kidneys, the blood test will look at the creatinine and Blood Urea Nitrogen levels in your blood because these levels will be elevated if you have kidney problems. The liver screen of your blood test will measure the levels of a number of different proteins and enzymes in your blood because elevated levels could be signs of liver disease. The blood tests will also measure your lipid and cholesterol levels because if these levels are too high, you have a higher risk of heart disease.
To check whether you have diabetes, the blood tests will check your glucose levels because high levels of glucose are a sign of diabetes. If you know you have diabetes, and you need type 1 diabetes life insurance or type 2, the insurance company will still do this test to see how well you are managing the condition, there is still a good chance that if you keep it under control you will qualify for life insurance with diabetes.
Finally, the insurance company will run an AIDS test. These are all part of a standard blood test.
If you are suffering from a medical issue, the company may run extra blood tests for more information on your condition.
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What Happens After Your Blood Test?
It takes some time for the life insurance company to complete your blood tests, study the information, and make a decision on your insurance rating. Expect to have to wait a few weeks before hearing anything.
The insurance company will use all the information on your health status, including the results of your blood tests, to give you an insurance rating. If you are healthy and your blood tests show nothing out of the ordinary, you’ll get a standard policy and may even qualify for a discounted price if you are very healthy.
If your blood tests show some health problems like high cholesterol, signs of kidney or liver problems, or diabetes, your insurance rating will not be as high. In this case, the insurance company may offer a rated policy which will be more expensive. The worse your overall health, the more expensive your policy may be.
If you have serious health problems like kidney failure, a past history of heart disease and high cholesterol, or AIDS, you may not qualify for a policy at all. At the end of the process, your insurance agent will tell you whether you qualify for a policy and at what price. At this point, you can decide if the coverage is worth buying.
Can I Avoid a Blood Test?
Blood tests are part of qualifying for most policies. If you are applying for a small policy, say a death benefit of $50,000 or less, the insurance company may waive the blood test and make a decision only on your medical history. Each company has a different process so whether this is the case depends on the who you apply with.
There are also life insurance policies that don’t require any sort of medical exam, including blood tests. These policies are more expensive per month than regular insurance. They also usually have restrictions like you need to live at least a minimum number of years after buying the policy or your heirs won’t receive a death benefit. However, if you don’t think you can qualify for a regular policy, no medical exam life insurance could be your best bet to get coverage.
Unless you know you won’t qualify for insurance, it usually makes sense to apply for a regular insurance policy and take a blood test. This way you can show that you are in decent health and will qualify for the best possible price for your policy.
Last Thoughts on Life Insurance Bloodwork
Because life insurance is such an important investment, it’s vital that you make the best decision for you and your family. While it’s one of the biggest purchases that you’ll make, there are plenty of ways that you can find a quality plan that fits in your budget. There are several lifestyle changes that you can make to help you get a better rating from the insurance company, which will translate into lower monthly premiums.
The first is to improve your overall health through diet and exercise. Both of these are going to help you lower your cholesterol that will be reflected on the blood work. It will also help you lose weight and lower your blood pressure. Not only will you feel better, you’ll have more money in your pockets as well.
The next thing to do is to cut out any tobacco that you’re currently using. Smoking cigarettes is not only one of the worst things that you can do for your health but your life insurance policy as well. Smokers pay twice as much for their life insurance coverage versus what a non-smoker is going to pay. If you want to get the lowest insurance rate, you’ll need to kick the cigarettes once and for all. If you don’t want to quit smoking, we can help you find the most affordable life insurance rates for smokers.
If you’re wondering when to get life insurance, the time is NOW!
There are a number of characteristics that come with having ADHD including inattentiveness, fidgeting, and typically issues with organization. These are the traits associated with ADHD that do not cause a rise in insurance rates.
On the other hand, those with more severe cases of ADHD that have issues tied to more serious problems such as drug abuse, alcoholism, depression, risky patterns of behavior, and overall addictive personalities.
It is patterns of behavior such as these that lead to much higher insurance premiums.
What is ADHD?
Attention Deficit Hyperactivity Disorder, or ADHD, is a mental health disorder that affects people of all ages. According to the CDC over 6 Million children have been diagnosed with ADHD.
It is characterized by difficulty focusing, impulsivity, and hyperactivity which can have a significant impact on daily life. Common symptoms associated with ADHD include inattention, short attention span, inability to complete tasks on time, disorganization, and restlessness.
Component
Description Of ADHD
Definition
A neurodevelopmental disorder characterized by inattention, hyperactivity, and impulsiveness.
Symptoms
Inattention (e.g., difficulty focusing on tasks, forgetfulness), hyperactivity (e.g., excessive fidgeting, restlessness), impulsiveness (e.g., acting without thinking, interrupting others)
Diagnosis
Made by a healthcare professional based on a comprehensive evaluation including a thorough medical history, physical examination, and psychological testing.
Causes
The exact cause of ADHD is not known, but it is thought to involve a combination of genetic, environmental, and neurological factors.
Treatment
May include medication, therapy, lifestyle changes (e.g., exercise, healthy diet), and support from family and friends.
The exact cause of ADHD is still unknown but it is believed to be related to genetic and environmental factors. Treatment for ADHD typically includes a combination of medications and behavioral therapy.
Does ADHD Affect Getting Approved for Life Insurance?
The good news for those with ADHD is that affordable insurance companies usually don’t consider it to be a medical underwriting problem unless it can be in some way tied to an external condition. In the case that a person is suffering from a mild case of ADD and does not suffer from another sort of disorder, they will usually have no issue obtaining insurance.
The main goal of a medical underwriter is to determine whether or not a person with ADHD is susceptible to other unhealthy habits or tendencies that would be considered a risk to the insurance company.
The spokesperson for Metlife recently said that people who have ADHD can potentially receive the “best insurance rating“. Additionally, he stated that if there is some external factor outside of the person’s control, they can still qualify for a standard rating. The cost of this plan is about 100 percent higher than a normal plan so it is not ideal.
Other factors such as addictions or criminal records in addition to having ADHD would usually disqualify a person from receiving any type of insurance. With this being said it is important to know all of your options going in as well as have a qualified insurance agent who will be able to locate the best possible plan.
Life Insurance Ratings with ADHD
The following bullets outline the general qualifications that people fall under in order to receive different types of life insurance.
Preferred Plus: Sufferers of ADD are definitely capable of receiving a preferred plus status and it is not necessarily a rare occurrence. Someone with ADHD can qualify for this status is they suffer from mild ADD and show no other signs of mental or mood disorders. Medical underwriters also like to verify that there have been no previous hospitalizations nor drug or alcohol abuse.
Preferred: Anyone who qualifies for preferred plus also qualifies under this status. It is meant for those who are not employed usually.
Standard: Most likely applied to mild to moderate sufferers of the illness. As is the case with preferred plus, there must be no history of hospitalization nor drug use. It is usually the case that people falling under this category are users of some form of ADD medication. Some insurance companies even allow the use of mild depression medications.
Substandard: This is saved for those with moderate to severe cases of ADHD. This is usually determined by a close examination of medical records. Stronger medications used for ADHD are typically associated with some under this status.
Declines: Anyone who has been recently hospitalized or is otherwise suffering from addiction would be declined life insurance.
What if You Get Denied for Coverage?
All is not lost if a person with ADHD is either denied insurance or offered it at a steep premium though. Medical underwriters want to see that a person has their illness managed, the length in term of the illness is really a non-factor.
Those who partake in at least a year’s worth of treatment or have otherwise gotten their problems under control with medication can reapply for insurance at that time.
Extensive research has allowed for ADHD to be treated so this is a very viable option for anyone in this particular case.
Time is of the essence when treating any condition and it is certainly no different with ADD. The earlier it is detected, the more time a person has to learn the best methods for treatment and management. This is especially important in adulthood when it comes time to obtain a life insurance policy as it will end up saving you thousands.
Four and a half million people were diagnosed with ADHD in 2020 and since then, the diagnosis rate has been consistently climbing at 3% per year. Of these yearly diagnoses, 60% will still have ADHD into adulthood.
How Much Life Insurance do you need?
Before you start calling companies or looking at options, you need to do some basic groundwork. Do the math to figure out how much insurance your spouse and children need.
To start, gather all of your bills and major debts and combine them. Whatever the number is, this is your starting block. Make sure your life insurance plan is larger than this number.
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The next thing you’ll need to multiply your annual income by 7 to 10. Not only will your family get your debts, but they will no longer have your salary to pay off those debts. Make sure your life insurance can replace your paychecks for several years.
Are you trying to get life insurance with ADHD? Give us a call, we can make it quicker and easier than trying to do it alone.
Bottom Line – ADHD Term Life Insurance
With these facts under consideration, it is important to know all of the information when it comes to getting insurance. Time is the most valuable tool when it comes to treating ADHD. Learning how to treat and manage ADHD is the end goal when trying to obtain affordable life insurance.
You can help yourself get the lowest insurance rates for you and your family’s protection. One of the first ways you can do that is by making some healthy lifestyle changes to improve your overall health.
The medical exam is how the insurance company determines your health and then your premiums. The better your health is during the exam, the better premiums they will grant you.
If you’re dedicated to getting those lower premiums, you’re going to have to make some changes to your health. Mainly your diet and your physical exercise. Make better diet choices and get up and go for a run.
If you’re really dedicated, you can make some even more improvements. If you’ve been smoking for several years, you’ve probably tried to quit in the past. It’s hard, but it’s worth it. Quit smoking and you’ll see your life insurance premiums cut in half.
Each insurance company has different systems for rating their applicants with ADHD, which means you could receive drastically different quotes from various carriers. It’s easy to see why it’s important to get quotes from dozens of companies.
FAQs on Life Insurance Approval with ADHD
I have ADHD, can I still get approved for life insurance?
Yes, individuals with ADHD can obtain life insurance coverage. However, insurance companies may consider individuals with ADHD as higher risk, which could result in higher premiums or difficulty obtaining coverage.
How does ADHD affect how much life insurance premiums are?
The severity of symptoms, medication usage, and overall health can impact life insurance premiums for individuals with ADHD. Insurance companies may view individuals with severe symptoms or those who are not receiving adequate treatment as higher risk and therefore, charge higher premiums.
Is it necessary to disclose ADHD diagnosis to the insurance company?
Yes, it is important to disclose any ADHD diagnosis to the insurance company as it can impact the coverage and premium rate offered.
Research Articles Cited
CDC.gov (n.d.) Data and Statistics about ADHD. Retrieved from https://www.cdc.gov/ncbddd/adhd/data.html