At this age, if you aren’t already thinking about life insurance, you should be. Term life insurance often comes up when speaking of life insurance for people of this age. This is because it not only offers a large number of benefits, but it comes at little cost to the policyholder.
With as many options as there are available in this day, it is often hard to sort through them all and find one that is most suitable for your needs. Every individual is different in his needs both financially and personally so it is hard to apply a one-size-fits-all policy pertaining to life insurance. Many may find that life insurance without exam is the best for their needs at this time in their life.
Fortunately, the Internet proves to be a vast resource for shopping and comparing rates on life insurance. There are plenty of tools online that make it easy to compare rates and benefits of life insurance. The amount of life insurance companies present online is extraordinary so comparing between multiple companies comes with ease.
Life Insurance and Your Financial Future
Perhaps one of the most popular forms of life insurance for someone of age 55 is term life insurance. Cheap term life insurance will financially cover your survivors in the event of death by taking care of basically all of your debts and bills.
Additionally, term life insurance can also cover funeral expenses as well as any leftover medicals debts. With all of these benefits, it is not difficult to think that these types of life insurance policies may come at a high price. The fact of the matter is that term life insurance for those of the age 55 is surprisingly inexpensive given all of the benefits.
A 55 year old male can obtain a $250,000 policy for as little as $19.69. A $200,000 policy will run a 55 year old male $45.56 a month.
Sex
10 Year
20 Year
30 Year
Male
Protective – $38.97/month
SBLI – $66.56/month
Banner – $136.06/month
Female
Protective – $30.04/month
SBLI – $51.11/month
Banner – $98.00/month
As you can see, this rate is surprisingly affordable. Of course these rates are quoted for an average male who is considered healthy with no pre-existing conditions. Regardless, the benefits that come with these affordable rates are boundless. For as little as a couple of dollars a day, you can live with the peace of mind knowing your family is financially protect in the event of your absence.
It is okay to not comfortable searching for life insurance policies on the Internet, you can always look locally for advice from an insurance agent who specializes in life insurance. Life insurance is fairly simple to obtain but sometimes a little guidance may be necessary, especially if you have special conditions that need to be considered.
Having pre-existing conditions or something of the like that can affect your rates negatively, do not give up hope.
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Finding the Best Rates for 55 Year Olds
The best thing you can do to make sure you are getting the lowest price on your life insurance premiums is to work with an independent agent that knows the over 50 life insurance market.
What we do is work with all the companies that will view your individual case in the best light. That way you get to choose which plan works best for you and the needs of your family.
There are plenty of options still available for you and having someone who is knowledgeable in life insurance is always helpful.
Many years ago, buying life insurance meant simply purchasing coverage that paid out a death benefit when an insured passed away. Today, however, things have changed a great deal. Life insurance policies are still certainly used as a tool for replacing income or for paying off debt upon the death of an insured. But now, these plans can also be used for so much more.
No longer are life insurance policies just “plain vanilla” anymore. In fact, oftentimes, life insurance policies are used as financial planning tools that can help individuals and families solve all types of additional needs, such as saving for college, paying off a mortgage, and supplementing retirement income.
They can also be used for growing funds based on rising market conditions. One type of policy that can be particularly useful in offering a death benefit while also providing for additional financial needs is variable coverage.
How Variable Life Insurance Works
Variable life is a type of permanent coverage. This means that it offers both death benefit protection, as well as a cash value or investment component where the policyholder can invest in a variety of “separate” accounts.
These policies are referred to as such because when a policyholder pays their premium into the plan, the portion of his or her premium that goes into the cash – or investment – component of the policy will be subject to the ups and downs of the underlying market fluctuations. Therefore, the plan will be “variable” in its nature.
Typically, the policy holder has the option of choosing from a very wide variety of different investment options within this separate account. These can include mutual funds, stocks, money market funds, bonds, and a number of other financial vehicles. Because some of the investment options that are included in variable policies are securities, these types of life insurance policies are regulated by the federal securities laws.
Just as with the cash value component of other types of life insurance policies, the funds that are in the investment component of a variable insurance plan are allowed to grow on a tax-deferred basis, meaning that the money will not be taxed until the time of withdrawal. This can provide the opportunity for funds to increase at an even greater pace – especially over time and in positive market conditions.
The Advantages of Owning a Variable Life Policy
There are a number of advantages to owning a variable policy. First, as with any other type of coverage, the death benefit proceeds will provide financial protection to the insured’s survivors in the event of death. Such funds may be used to pay final expenses, to pay off large debts such as a mortgage, or used as income replacement in paying everyday living expenses going forward.
Another benefit of variable life coverage is that the premiums are typically fixed throughout the life of the policy. This means that, unlike term life insurance, the insured will never need to re-qualify for coverage, provided that the premiums are paid within the grace period and that the coverage stays in-force.
Likewise, the initial amount of the death benefit on a variable policy is also usually a fixed amount – regardless of what occurs in the underlying market. Because of this, the named beneficiary (or beneficiaries) on this type of policy can, therefore, be assured that they will be receiving a certain amount of proceeds upon the death of the insured.
This can be helpful in that if the funds were being counted on for payment of certain debts or the replacement of the insured’s income, there would be a set amount coming to the insured’s survivors from the variable life plan.
In addition, due to the variety of investment options, variable life can provide insurance policyholders with the opportunity to grow the funds that are in the cash portion of their policy. These funds may be used in the future for other financial needs and they could be accessed via withdrawals or through policy loans.
So, if funds are needed by a variable life policyholder during his or her lifetime, these plans will typically allow the individual to either withdraw or borrow cash from the investment component of the policy. In addition, funds from the cash value component can often be used for paying the policy premiums – alleviating the policyholder from having to do so out of pocket.
Some Things to Consider Before Purchasing Life Insurance
While there are many advantages of owning a variable life insurance policy, it is also important to consider some key factors prior to moving forward in order to be sure that this type of policy is the best option for you and your specific insurance and investment needs.
First, when considering a variable plan, the policy holder should be able to take on a more active role in the investment of the policy’s separate account. Given this, it may be wise to have a good understanding of how mutual funds and other investments work – and how each may, or may not, fit with your particular financial needs and goals.
Being aware that variable coverage comes with a higher level of risk than some other types of permanent life insurance, such as whole life or universal life, can also help to ease any surprises should the market take a sudden downturn.
In any case, an important consideration that any potential owner of a variable policy should have is that he or she will have much more control over how their funds are invested in this type of life insurance plan. This will differ substantially from ownership of a whole life or a universal life insurance policy, where the underlying funds are typically chosen for the policyholder by the insurance carrier.
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Is a Variable Policy Right for Everyone?
Unlike whole life insurance, where cash is only guaranteed to grow at a fixed conservative rate of interest, the funds that are inside of a variable life policy are tied to a variety of different market related investment options. This allows the opportunity for a substantial amount of growth. It also, however, can subject the funds to market risk. Therefore, variable policyholders need to be aware that their funds can rise in value. However, they can also fall.
The policyholder of a variable life policy also has a great deal of choices in the underlying investments that are chosen for his or her cash value component. This differs significantly from whole life insurance where the insurance company makes these selections. Therefore, those who are not active investors or who do not have a good understanding of stocks or mutual funds may want to obtain some initial knowledge of these investments prior to moving forward. It is also a good idea to have at least a basic understanding of how different types of market risk can occur, and how such risk may be offset.
How to Get the Best Variable Life Insurance Quotes
When shopping for variable life insurance quotes, it is best to work with a company or an agency that has access to more than just one insurance carrier. This way, you will be able to compare different insurers’ policies and benefits objectively in order to determine which fits best with your specific needs. You will also be able to compare different premium quotes in order to see which works best with your life insurance budget.
If you are ready to compare policies and quotes, we can help. We work with the best life insurance companies in the marketplace today, and we can get you all of the important information that you need quickly and easily – right from your home computer, and without the need to meet in person with a life insurance agent. When you’re ready to see how a variable life policy may benefit you and your loved ones, fill out the form on this page to start your quotes.
Should you have any questions along the way regarding how variable policies work – about life insurance in general, or about something more specific such as life insurance without medical exams – please feel free to contact us directly. Our experts can walk you through step-by-step the ins and outs of variable policies, and the many ways that these types of plans can be structured.
We understand that the process of buying life insurance can sometimes be confusing – especially when there are many options to choose from. We will ensure that you have all of the information that you need in order to make a well-informed buying decision about the coverage and the plan that’s right for you and those you love.
Canceling a life insurance policy is an important decision that can have financial and emotional implications.
Deciding whether to continue with your life insurance policy or cancel it is not just a significant financial choice, it can also have profound emotional implications.
After all, life insurance isn’t just a monetary consideration – it’s about ensuring that your loved ones are protected in case of your untimely demise.
However, sometimes circumstances may lead you to contemplate canceling your life insurance policy. The question then arises: should you and if so, how do you go about it? Let’s delve deeper.
Understanding Life Insurance Policies: More Than Meets the Eye
First off, to make an informed decision, it’s crucial to understand the two main types of life insurance policies that are on the market.
Term Life Insurance: The Straightforward Option
As its name suggests, term life insurance provides coverage for a specified term, which typically ranges from 10 to 30 years. If you pass away during this term, your designated beneficiaries receive the policy’s death benefit. This type of insurance is often viewed as the simpler and more affordable option, as it strictly provides coverage without any investment component.
Permanent Life Insurance: Coverage Plus Investment
On the other hand, permanent life insurance policies, such as whole life or universal life insurance, provide coverage for your entire lifetime and include an investment element known as cash value. This cash value portion grows over time and can be borrowed against or even surrendered for cash, making this type of policy more complex and usually more expensive.
Reasons for Canceling Life Insurance: Making the Tough Call
Several scenarios might lead you to contemplate canceling your life insurance policy.
Financial Reasons: When the Premiums are too High
It could be that the premiums have become unaffordable due to changes in your financial circumstances. As the cost of living increases, especially in the light of rising inflation as highlighted in a recent FT Adviser report, it’s not uncommon for individuals, especially those over 50, to consider cutting back on their life insurance.
Policy No Longer Needed: When Life Takes a Better Turn
Your reasons for canceling could also be positive. Maybe your children have grown up and become financially independent, or your financial status has improved significantly since you first took out the policy.
Considerations Before Canceling Your Life Insurance: Weigh Your Options
But before you make the decision to cancel your life insurance policy, there are several factors to consider.
Evaluate Your Current Situation: Checking the Safety Net
Firstly, evaluate your current financial situation. You should be sure that you and your dependents won’t need the safety net that life insurance provides in the future.
Understand Potential Consequences: The Trade-Offs
It’s important to understand the potential consequences of canceling your life insurance. If you cancel your term life insurance, you won’t receive any money back and will be left without coverage.
On the other hand, canceling a permanent life insurance policy might allow you to recover some of the cash value, but could also result in surrender charges, especially if the policy is still in its early years, as pointed out by a Forbes Advisor article.
Alternatives to Canceling: Is There a Middle Ground?
Before canceling your policy outright, it’s worth exploring other options. For instance, you could reduce the death benefit to lower the premiums or even switch to a more affordable term life insurance policy if you currently have a permanent life insurance policy.
How to Cancel Your Life Insurance: Following the Right Steps
If, after considering all the implications and alternatives, you still decide that canceling your life insurance is the best course of action, then here are the steps you need to take.
Steps to Cancel Term Life Insurance: It’s All About Communication
The process for canceling term life insurance is generally straightforward. First, you need to contact your insurance provider and inform them of your intention to cancel the policy. This could be over the phone, via email, or sometimes through an online portal.
Ensure you follow all the steps they provide and always ask for a confirmation of your policy’s cancellation. It’s also important you understand your rights to canceling your insurance policy.
Steps to Cancel Permanent Life Insurance: A Bit More Complex
The process of canceling a permanent life insurance policy, on the other hand, could be a bit more complex, particularly because of the cash value component. You may need to complete a policy surrender form or send a written request to your insurance provider.
Remember:
Always confirm the details with your insurer and remember that you might be entitled to receive some of the policy’s cash value upon surrendering the policy.
Life After Canceling Your Life Insurance: Managing Your Risks
The aftermath of canceling your life insurance policy requires careful financial planning. Now that you no longer have the protection that the policy provided, you need to manage the financial risk that the policy once covered.
Managing Financial Risk: New Strategies
This risk management could involve several strategies, from building an emergency fund to investing for your long-term financial goals.
Setting Up an Emergency Fund: An Essential Buffer
An emergency fund is an essential financial tool that provides a buffer against sudden expenses or financial emergencies. It ensures that even if unexpected costs arise, you have a financial cushion to rely on.
Investing for Long-term Goals: Playing the Long Game
By investing, you can grow your wealth over time and work towards achieving your financial goals. Whether it’s retirement planning, saving for a home, or investing in your child’s education, having a robust investment strategy can provide financial security in the long run.
Conclusion: Making the Best Choice for You
Canceling your life insurance policy is a significant decision that should be made with careful consideration. It’s crucial to weigh the potential risks and benefits, evaluate your current and future financial situation, and explore all available alternatives.
Remember, the right choice will depend on your unique circumstances and the needs of your dependents.
FAQs – Cancelling Life Insurance Policy
Can I cancel my life insurance policy?
Yes, you can cancel your life insurance policy at any time. It’s your right as the policyholder to do so.
How do I cancel my life insurance policy?
The cancellation process may vary depending on your insurance provider. Generally, you can contact your insurance company directly and inform them of your decision to cancel. They will guide you through the necessary steps and paperwork.
Will I get a refund if I cancel my policy?
It depends on the type of life insurance policy you have. Term life insurance policies typically do not have a cash value, so cancelling them usually doesn’t result in a refund.
However, if you have a permanent life insurance policy, such as whole life or universal life, there may be a cash surrender value that you could receive upon cancellation.
Are there any fees or penalties for cancelling my life insurance policy?
Some life insurance policies may have surrender charges or penalties for early cancellation. These charges are more common with permanent life insurance policies, and they can vary depending on the specific terms of your policy.
Review your policy documents or contact your insurance company to understand any potential fees or penalties.
If you have ever applied for life insurance, then you know that there are several important criteria that you need to keep in mind.
One of these is the amount of insurance protection that you will need to have. This is because you will want to ensure that those whom you care about will have enough in benefits to pay certain debts or have enough funds in order to pay their ongoing living expenses to go on and not have to drastically alter their lifestyle.
But there is also another extremely important factor that you must also include in your purchase decision. This is the actual company in which you purchase the coverage through.
This is because you will want to make sure that the insurance carrier is strong and stable financially and that it is known for paying out its claims to its policyholders. One such insurer that has fit into this mold for many years is SBLI Life Insurance Company.
The History of SBLI Life Insurance Company
SBLI has been known for many years as being “The No Nonsense Life Insurance Company.” This insurer has been in the business of providing coverage to its customers for nearly 110 years. The company’s founder, Louis D. Brandeis, started the insurance carrier during one of the worst stock market crashes in United States history, as well as at a time when the insurance industry in the U.S. was thought to be corrupt and very expensive.
Because of this, Brandeis – who was an advocate for trustworthy and affordable life insurance for the American working family – decided to start the company. He did so by working to pass Chapter 561 of the Acts of 1907 – and act that essentially allowed savings banks that were incorporated under Massachusetts laws to establish departments to issue annuities and life insurance. Today, the company’s headquarters are still located in Woburn, Massachusetts.
Throughout the years, the company grew quite a bit – and by 1930, it already had $100 million of life insurance in force. By 1964, it had reached the mark of $1 billion of life insurance in force. Just 34 years later, in 1998, it was at $20 billion in force, and by 2003, the company had surpassed the $50 billion mark. As of 2012, SBLI had more than $125 billion of life insurance in force.
SBLI Life Insurance Company Review
SBLI is known for being a strong contender in the insurance industry. It is also extremely involved in the communities that it serves. It contributes and/or is a sponsor of numerous charitable organizations, including the:
American Heart Association (AHA)
Massachusetts General Hospital Home Base Program
Boston Marathon Jimmy Fund Walk
New England Center and Home for Veterans
The Massachusetts Affordable Housing Alliance (MAHA)
The Rodman Ride for Kids
Woburn Memorial High School
The New England Center for Children
The company has also earned endorsements from organizations such as the:
Massachusetts Bankers Association
AAA Southern New England
AAA Merrimack Valley
For those who are interested in a policy, or who are current policyholders and who need assistance, the company’s customer services representatives are easy to get in touch with. They can be reached via toll-free phone line during business hours. There is also an email form or a fax that can be sent into the company. Business hours are between the hours of 8:00 a.m. and 9:00 p.m. Eastern time Monday through Friday.
Financial Strength and BBB Grade of SBLI Life Insurance Company
Over the years, SBLI Life Insurance Company has consistently earned high ratings from the insurer ratings agencies. This shows the company’s ongoing financial strength and stability. These ratings include the following:
A+ (Superior) from A.M. Best
A- from Standard & Poor’s
Good from Weiss Ratings
Since 2007, SBLI Life Insurance Company (The Savings Bank Life Insurance Company of Massachusetts) has been an accredited member of the Better Business Bureau (BBB). It has received a grade of A+ from the BBB, on an overall grading scale of A+ to F.
Throughout the past three years, SBLI has closed two complaints through the Better Business Bureau, and no complaints over the past 12 months. Of these two complaints, one centered on issues with the company’s products/services, and one had to do with billing/collections.
Life Insurance Products Offered Through SBLI
SBLI offers many different types of life insurance products so that customers can essentially customize coverage to fit their specific needs, as well as to provide what is needed throughout every stage of a customer’s life. This also helps to provide coverage, no matter what a person’s budget.
Life insurance products that are offered through SBLI Life Insurance Company include the following:
Term Life Insurance Coverage
Term life insurance coverage, provides death benefit protection only, without any cash value or investment build up. Because of this “basic” approach, term life insurance can be quite affordable – primarily if the applicant is younger and in good health.
This type of coverage is oftentimes referred to as “temporary” life insurance. This is because it is purchased for specific amounts of time such as ten years, 20 years, or 30 years. With that in mind, it will be important to have a good idea of how long you will need coverage if this is the type of life insurance policy that you choose.
SBLI offers three different types of term life insurance protection. These are:
Guaranteed Level Premium Term Life Insurance
With the Guaranteed Level Premium Term Life Insurance coverage, premiums are guaranteed to remain the same throughout the entire period of the policy. This particular plan will cover the insured until he or she reaches age 85. Once the guaranteed level premium period has ended, the premium will go up each year until the insured reaches age 85.
The level premium periods that can be chosen include durations of 10 years, 15 years, 20 years, 25 years, and 30 years, and coverage amounts can range between $100,000 to $30 million for those who are under age 70. For those who are age 70 and over, coverage may go up to $10 million.
Yearly Renewable Term Life Insurance
With Yearly Renewable Term Life Insurance, the policy will renew each year. This means that the premium that is paid by the insured will be determined based upon his or her current age. This type of coverage can be extremely affordable in the beginning years, and then increase as the insured gets older. This particular policy will automatically renew every year until the insured turns age 90. There is no medical exam that is required each year to provide proof of insurability. Between the ages of 75 and 90, the amount of the insurance will decrease each year.
Up until the time that the insured reaches age 70, he or she will be allowed to convert the term insurance coverage over into a permanent life insurance policy. This can also be done without the need for a medical exam to prove insurability.
One Year Non-Renewable Term Insurance
An individual may also choose to purchase a one-year non-renewable term life insurance policy. This life insurance coverage will stay in force for only one year. Coverage amounts on this plan can range between $100,000 and $10 million, and applicants age ranges can be between 18 and 90.
Permanent Life Insurance Coverage
SBLI Life Insurance also offers permanent life insurance coverage. With this type of life insurance, there is death benefit protection, as well as a cash value component. The funds that are in the cash value portion of the policy are allowed to grow on a tax-deferred basis. This means that no tax is due on the growth unless or until the policyholder withdraws them.
Permanent policies that are offered via SBLI include:
Continuous Payment Whole Life
The Continuous Payment Whole Life insurance option covers an insured for his or her entire lifetime. This means that the death benefit is guaranteed, and the policy will remain in force – provided that the premium is paid. The cash value will also continue to build up. This particular policy has a maturity age of 121 years old.
Single Premium Payment Whole Life
The single premium payment whole life insurance policy will also remain in force for the entire lifetime of the insured. This policy, however, only required one lump sum premium in order for the policy to be considered paid up.
Because of this, the cash value will get a “jump start” and it will continue to grow at a guaranteed rate of interest over time. The cash can be borrowed or withdrawn for any reason that the policyholder wishes.
Limited Payment Whole Life Insurance
The limited payment whole life insurance policy will also cover the insured for their whole lifetime. With this policy, the premium payments are only for a limited period. In this case, the options are for ten years, 15 years, 20 years, or until the insured is age 65. This policy also has a maturity age of 65 years old.
Other Coverage Products That Are Offered
In addition to life insurance, there are other products that are offered through SBLI Life Insurance Company. These can help the company’s customers to build and / or to protect their wealth. Some of these products include the following:
Annuities
An annuity is essentially an insurance contract that is between an individual and an insurance company. These financial vehicles can offer a guaranteed income for the remainder of a person’s lifetime. This can help to alleviate the worry of outliving your retirement income – which is a major concern of many people today.
There are several different types of annuities. SBLI offers the:
Single Premium Immediate Annuity@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:250px!important;max-height:250px!important
Optimizer MVA Series Annuity
Both of them are great options for supplementing your retirement income. There are a few different advantages to these annuities that you should take note of if you’re looking for a way to invest your money.
With their SBLI Single Premium Immediate Annuity is the best option for anyone that is looking to get payouts immediately. As you can probably guess from the name, you’ll only make one single payment, and then you start getting checks from the annuity.
With the SBLI Optimizer MVA Series on the other hand, it’s not an immediate payout. You’ll make an investment, which will then start building tax-deferred interest with payouts that will start on a date that you’ll pick. With this annuity, you’ll be able to make some withdrawals without the penalties if you’re ever diagnosed with a terminal illness.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:250px!important;max-height:250px!important
Elder Care Insurance
Because so many people are living so much longer today, long-term care has become a big concern as well. Unfortunately, that care can be very expensive. Therefore, many people are concerned about depleting their savings – primarily because Medicare does not typically pay for most kinds of long-term care needs.
SBLI offers SBLI Legacy Protection to help manage all of the necessary aspects of long-term care and estate planning – including legal overview, financial guidance, and nursing care management expertise.
How to Get the Best Premium Quotes on Life Insurance Coverage
When you are seeking the best premium quotes on life insurance coverage – either through SBLI Life Insurance Company or any insurance carrier – it is typically best to work with an independent agency or brokerage that has access to numerous different life insurance companies. That is because you will be better able to compare and contrast many different policies, benefits, and premium quotes, and then to determine which will be the best for you and your needs. This is not only true for when seeking the best life insurance policy, but when seeking other forms of covers as well, such as the best auto insurance companies and policies.
If you are ready to move forward with the purchase of a life insurance policy, then we can help. We work with many of the top life insurers in the industry today, and we can assist you with obtaining all of the pertinent details that you will require. All you have to do is fill out the form on this page, or you can jump over here and let Policy Genius guide you.
We understand that when it comes to life insurance coverage, there are a lot of options to choose from – even if you have been turned down in the past. But it sometimes takes having an ally on your side to help you narrow down what will be the best choices for you and your specific requirements. We will help to get you where you want to go. So, contact us today – we’re here to help.
Life insurance provides financial protection to individuals and their loved ones in the event of unexpected circumstances. One key aspect to consider when choosing a life insurance policy is whether it generates immediate cash value. In this article, we will explore different types of life insurance policies and discuss which ones offer the benefit of immediate cash value.
Life insurance policies are critical financial planning tools designed to provide financial security for policyholders’ beneficiaries upon their demise. They work by offering a lump-sum payment, known as a death benefit, to beneficiaries after the insured person’s death.
But some life insurance policies offer an additional feature – the accumulation of cash value over time.
This is a unique feature that allows the policyholder to access a portion of the insurance money during their lifetime. This article will delve further into the types of life insurance policies that generate immediate cash value.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-medrectangle-3-0-asloadedmax-width:300px!important;max-height:250px!important
Table of Contents
Decoding Cash Value in Life Insurance
The cash value in a life insurance policy is a savings component that grows over time. This feature is inherent in permanent life insurance policies, unlike term life insurance policies that only provide coverage for a predetermined period.
When a policyholder pays premiums towards a permanent life insurance policy, a portion of these payments contributes towards building the cash value.
This cash value grows over time and can be accessed by the policyholder during their lifetime, offering an extra layer of financial security.
Understanding Different Life Insurance Policies
The life insurance market is diverse, offering several types of policies. Some of the main types include term life insurance, whole life insurance, and universal life insurance. Each of these has its unique features, advantages, and suitability for different individuals.
Term Life Insurance
As highlighted by CNBC, term life insurance is designed to offer coverage for a specific period, typically 10, 20, or 30 years. If the policyholder passes away during this term, the insurance company pays a death benefit to the beneficiaries.
But according to financial experts like Dave Ramsey, it could be the best option for most people because it’s simple and affordable. It’s like an umbrella for a rainy day, shielding your loved ones financially if you pass away during the policy term.
However, term life insurance does not provide any cash value component. It’s often chosen for its affordability and simplicity, focusing solely on providing financial protection in the event of the policyholder’s death during the policy term.@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-banner-1-0-asloadedmax-width:580px!important;max-height:400px!important
Whole Life Insurance
Whole life insurance, as the name suggests, offers coverage for the insured person’s entire lifetime, as long as the premiums are paid. Unlike term life insurance, it combines a death benefit with a cash value component.
A portion of the premiums paid contributes to this cash value, which grows over time. Importantly, this growth is at a guaranteed rate, offering predictability and security for the policyholder. According to The Motley Fool, this type of insurance is often more expensive than term life insurance due to this cash value component and the lifetime coverage it provides.
Universal Life Insurance
Universal life insurance is another type of permanent life insurance policy that combines a death benefit with a cash value component. However, it differentiates itself with its flexibility in premium payments and death benefits. The cash value component in universal life insurance grows based on prevailing market interest rates. @media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-large-leaderboard-2-0-asloadedmax-width:300px!important;max-height:250px!important
Policyholders can adjust the premium amount and death benefit within certain limits, providing them with a degree of control over the policy’s costs and benefits.
Among the various life insurance policy options, it’s the whole life insurance and universal life insurance policies that generate immediate cash value. From the moment these policies are enforced, the cash value starts growing, offering policyholders access to a part of their insurance payout during their lifetime.
Whole Life Insurance and Cash Value
With whole life insurance policies, the cash value grows at a guaranteed rate, offering a predictable savings growth mechanism. The cash value in whole life insurance is built from the premiums paid by the policyholder. This cash value can be borrowed against, offering a valuable source of funds when needed. Alternatively, the policyholder can choose to surrender the policy and receive the accumulated cash value.
Universal Life Insurance and Cash Value
Universal life insurance is a form of permanent life insurance policy that combines the death benefit of term insurance with a cash value component. This type of policy is known for its flexibility, as it allows policyholders to adjust the premium payments and death benefit within certain limits. This flexibility can be instrumental in managing life’s financial uncertainties.
The cash value in universal life insurance grows based on prevailing market interest rates, offering the potential for significant growth during periods of high interest rates. It’s important to note that while this offers an opportunity for financial gain, it can also present challenges. In periods of low-interest rates, the cash value growth can slow down, potentially affecting the policy’s overall value.
Policyholders can access the cash value in a universal life insurance policy through withdrawals or policy loans. This can offer valuable financial flexibility in times of need.
A Word of Caution on Universal Life Insurance
While universal life insurance offers flexibility and potential cash value growth, it’s not without risks. According to the New York Department of Financial Services, policyholders must be cautious about the fluctuating costs and benefits of these policies.
Interest rates can fluctuate, and when they’re low, the cash value of a universal life insurance policy may not grow as expected. This could mean that the policyholder has to pay higher premiums to keep the policy active, especially if the policy costs are being paid from accumulated cash value.
Policyholders should regularly review their universal life insurance policies. If the policy’s cash value is depleting faster than expected, or if the policy costs are increasing, it might be necessary to adjust the premiums or the death benefit to keep the policy in force.
Beware of UL Insurance
Universal life insurance policies also often have complex cost structures, with various fees and charges that can affect the cash value and the death benefit. It’s important to understand these costs and to consider them when deciding on a universal life insurance policy.
Factors Influencing Cash Value Growth
@media(min-width:0px)#div-gpt-ad-goodfinancialcents_com-leader-1-0-asloadedmax-width:336px!important;max-height:280px!importantThe growth of cash value in a life insurance policy is subject to several factors. These can vary greatly from policy to policy, and understanding them can help policyholders make an informed decision. The following are some critical factors:
Premium Payments
The amount of premium paid and the frequency of the payments directly impact the growth of the cash value. Regular and timely premium payments can accelerate the accumulation of cash value over time.
Policy Expenses
Insurance policies come with various expenses, such as administrative fees, mortality charges, etc. These charges are typically deducted from the premium payments before the remaining amount is allocated to the cash value component, thus potentially affecting its growth rate.
Interest Rates
The interest rate at which the cash value grows plays a significant role in its accumulation. A higher interest rate leads to a quicker accumulation of cash value, while a lower rate may slow it down. This is particularly relevant for universal life insurance policies where the interest rate is tied to the prevailing market rates.
Opting for a life insurance policy with immediate cash value can offer several benefits:
Financial Flexibility: The cash value in these policies can be accessed during the policyholder’s lifetime, providing financial flexibility for various needs such as emergencies, education expenses, or retirement planning.
Asset Accumulation: The cash value component of the policy acts as an asset that can grow over time. It can serve as a source of additional funds or supplement retirement income.
Borrowing Options: Policyholders can borrow against the cash value of their life insurance policy. This can be a convenient source of funds without the need for a separate loan application or credit check.
Tax Advantages: The growth of cash value in a life insurance policy is typically tax-deferred. This means that policyholders can enjoy the growth without immediate tax obligations until they withdraw or surrender the policy.
Considerations When Choosing a Policy
When selecting a life insurance policy with immediate cash value, it’s important to consider the following factors:
Financial Goals: Determine your financial goals and how the policy aligns with them. Consider whether you prioritize cash value growth, death benefit coverage, or a combination of both.
Premium Affordability: Evaluate your budget and ensure that the premium payments are affordable in the long run. Remember that missing premium payments can impact the cash value growth and policy coverage.
Long-Term Planning: Assess your long-term financial plans and how the policy fits into them. Consider factors such as retirement, education expenses, and other financial milestones.
As Life Happens points out, life insurance is valuable at any age. It’s not just for when you’re in your golden years and start worrying about leaving a financial safety net for your loved ones. With policies that offer immediate cash value, you’re getting both protection and a financial resource you can access during your lifetime.
Remember that gem of a piece of advice from Dave Ramsey? He says, “Term life insurance is bought, while whole life insurance is sold.”
This simply means that term life insurance, with its lower cost and straightforward benefits, is generally the go-to choice for most people. But the whole life insurance policies, with their additional features, are actively promoted by insurance companies.
Keep in mind that in the wild world of insurance, there’s no right or wrong choice, only what works best for you. It’s like trying to choose between a coffee and a milkshake – they both have their perks, but it ultimately depends on your taste (or in this case, your financial goals).
Are you someone who wants protection with the added benefit of cash value growth, or do you prefer a no-frills approach with just coverage? Can you consistently afford the premium payments to reap the full benefits? How does a policy fit into your long-term plan, considering things like retirement, education expenses, or other financial milestones?
Term Life Insurance
Cash Value Policy (Whole/Universal Life)
PROS
Cost
Generally cheaper
More expensive, but part of premium builds cash value
Simplicity
More straightforward as it provides only a death benefit
More complex due to the cash value component
Duration
Fixed term (usually 10, 20, or 30 years)
Provides coverage for the entire lifetime of the policyholder
Financial Flexibility
No cash value or loan option
Offers a cash value component that can be borrowed against
Investment
No investment component
Can be viewed as an investment due to cash value growth
CONS
Cost
No cash value or return of premium if the term expires before death
Higher premiums due to the cash value feature
Duration
Coverage ends if the term expires before death
Might be unnecessary if coverage is not needed for entire life
Complexity
Doesn’t require much management
Requires active management due to the cash value component
Risk
No risk as it only provides death benefit
The cash value growth might be slower than other investments
Flexibility
No option to borrow against the policy
Policyholders can borrow against the cash value, but this can reduce the death benefit
Choosing a life insurance policy with immediate cash value can provide both protection and financial flexibility. Whole life insurance and universal life insurance policies are two types that offer this benefit. Understanding the factors that influence cash value growth and considering personal financial goals are crucial when making a decision. By selecting the right policy, individuals can secure their loved ones’ future while also building a valuable asset.
United Home Life Insurance Company has been in the business of offering life insurance coverage to its clients for nearly 70 years. Its parent company, United Farm Family Life, initially began in the insurance industry in 1937. The firm’s headquarters are located in Indianapolis, Indiana.
Unlike many other life insurers requiring coverage applicants to undergo a medical exam prior to approval, United Home Life Insurance Company is primarily known for offering simplified issue life insurance coverage. This means that those who apply for coverage will be approved – even if they have some type of adverse health condition. This is because these types of policies may not require the applicant to take a medical exam, and may not even require them to answer a great deal of health-related questions.
United Home Life Insurance Company has the motto of “Simplified Products – Faster Results” – and the company abides by this in both its life insurance coverage products and in its customer service. This is because the company believes buying life insurance should not be a long, drawn-out process; it should be as easy as possible for customers. This is one of the things that has made United Home Life Insurance Company so successful throughout the years – especially in this particular product niche.
United Home Life Insurance Company Review
United Home Life Insurance Company also abides by the rule of “life insurance made simple.” The goal of the company is to offer life insurance coverage that is easy to understand and that will provide financial security for the loved ones of insured policyholders.
The company offers a nice selection of different types of life insurance coverage – and many of their plans may be further custom-tailored to meet more specific insurance needs via riders, some even at no additional cost to the policyholder.
In addition to being known for its simplified underwriting products, the company is also known for its top-notch customer service. This comes from both its home office staff as well as the independent agents offering the company’s policies.
Combined, United Home Life and its parent company, United Farm Family Life, have more than $2 billion in assets, as well as more than $20 billion of life insurance in force. For this reason, these companies are in a good, solid position to meet the financial promises they have made to their policyholders.
United Home Life Insurance Company Rating
A- (Excellent) from A.M. Best Company
The parent company of United Home Life – United Farm Family Life – is also very strong financially. It, too, has been given a high mark, including:
A (Excellent) from A.M. Best Company
Types of Life Insurance Available
United Home Life Insurance Company and United Farm Family both offer a wide array of life insurance coverage. This can help clients to better meet their protection needs, as well as assist clients in changing or adding to their coverage as their needs change over time.
The insurers offer both term and permanent protection. With term life insurance, the insured is covered with pure death benefit coverage only – and because of this, the life insurance can often be less expensive than a comparable permanent policy. They are especially more affordable for those looking for a larger policy, such as a million dollar life insurance policy. Term life insurance is purchased for a certain number of years.
Permanent life insurance coverage offers both death benefit protection, as well as cash value build up. The death benefit protection is guaranteed to last for the insured’s lifetime, as long as the premium is paid. Cash value inside of a permanent life insurance policy is allowed to grow tax-deferred. And, the cash may be either borrowed or withdrawn for whatever reason the policyholder sees fit.
Term Life Insurance Coverage
The term life insurance coverage offered through United Home Life Insurance Company and United Farm Family Life provides a defined amount of coverage for a set amount of time. At the end of this “term,” the premium will increase each year until the policy ends, which is typically at the insured’s age of 95.
There are three primary products offered, including:
Express Issue Term 20 – This 20 plan is a level death benefit term policy featuring a 20-year initial level premium guarantee period. The premium will increase on a yearly basis after the 20-year period is complete. The policy features four supplementary riders so the insured has the ability to further customize coverage if he or she would like.
Express Issue Term 30 – This 30 plan is a level death benefit term policy featuring a 30-year initial level premium guarantee. Then, the premium will go up annually. There are also four supplementary riders the insured may add for further customization.
Premier 20 with ROP – With the Premier 20 ROP policy, there is a 20-year initial level premium guarantee period. At the close of the 20-year period, premiums go up annually. There is also a return of premium feature on this policy. There are two supplementary riders available with this type of policy.
Because these are all simplified issue policies, there is no routine medical exam required as a part of the underwriting process, and the coverage cannot be canceled during the term period as long as the premium is paid.
Permanent Life Insurance Coverage
Provider whole life is a permanent life insurance policy that offers both death benefit protection, as well as cash value build up. This cash is allowed to grow on a tax-deferred basis, meaning that there is no tax due on the gain unless or until it is withdrawn.
This is a graded benefit whole life insurance policy, which means that during the first two years of policy ownership, the benefit for death of the insured by natural causes will be a refund of the premiums paid in, plus interest. However, starting day one of policy year three, the full amount of the policy’s death benefit will be paid to the beneficiary should the insured pass away for any reason. There are also several no-cost riders that may be added to this policy.
Final Expense Life Insurance Coverage
United Home Life Insurance Company and United Farm Family offer several simplified issue final expense whole life insurance policies, too. These plans offer a death benefit that never decreases, as well as premiums guaranteed never to increase. They also offer cash value build up that is allowed to grow on a tax-deferred basis.
There are three final expense policies offered, including:
Express Issue Premier – This is an immediate death benefit whole life insurance product offering additional riders and benefits to help in customizing the product to the policy holder’s needs.
Express Issue Deluxe – The Express Issue Deluxe also offers an immediate death benefit, as well as numerous additional riders that can help to offer more customized protection.
Express Issue Whole Life – This graded benefit whole life insurance policy also provides several no-cost riders designed to provide additional value – including an Identity Theft Waiver of Premium Rider.
Accidental Death Coverage
The company also offers the Protector AD accidental death plan. This accidental death coverage is an inexpensive addition to existing life insurance coverage, and it doubles over 20 years. The premium is level and guaranteed for 20 years, followed by guaranteed increasing annual premiums. There is also a return of premium feature. This plan only has one non-health question on its application.
Other Products Sold
United Home Life Insurance Company and United Farm Family also offer an Express Issue Deluxe Whole Life insurance policy that provides an immediate death benefit to qualifying insulin-dependent diabetics. This means that there is no need to wait for two or three years of policy ownership in order for the full amount of the death benefit to be paid out.
Symetra Life Insurance Company boasts more than half a century of offering life insurance coverage to valued clients. Over time, this insurer has exceeded $35 billion in assets and 2 million clients throughout the United States.
Symetra has its headquarters in Bellevue, Washington, while the company sells its products in all states excluding New York.
Established in 1957, the insurer has made many strides in the insurance and financial industry. For example, in 1976, Symetra pioneered the medical stop-loss product – which today is a key product in the medical insurance marketplace.
In 1987, Symetra started selling its annuity products through the banking channel, and in 1999, exceeded the $30 billion mark of life insurance in force. In 2004, the insurer transitioned into an independent company – Symetra Financial Corporation, and in 2016, it joined Sumitomo Life, a global life insurer.
The products sold by Symetra Life Insurance Company are offered through brokers and financial advisors, banks, and a network of independent insurance agents.
The primary products provided through Symetra include life insurance protection, along with annuities, retirement, employee benefits, and medical stop-loss insurance coverage.
Symetra Life Insurance Company Review
Today, Symetra is owned by parent company Sumitomo Life – which is considered to be one of the most prominent life insurance companies in Japan. The parent company has been in operation for over 100 years. Both Symetra and Sumitomo Life have total assets surpassing $250 billion.
Symetra Life Insurance is currently recognized as a Top 3 seller of fixed deferred and fixed indexed annuities through banks. It is also a Top 40 U.S. life insurance company, based on admitted assets. In 2015, the company brought in roughly $2.2 billion in total revenues and nearly $147 million in net income.
In addition to offering insurance and financial products, Symetra is committed to the community. In 2015, Symetra contributed to nearly 900 charitable organizations, and its employees invested roughly 8,500 hours of volunteer service.
The company also does a great deal of advertising and sponsorship – including its Sports Illustrated Rising Stars campaign, The Symetra Tour – Road to the LPGA, the Symetra Heroes in the Classroom, and the “I Just Want to Fly,” highlighting the insurer’s commitment to helping people and businesses with reaching higher and flying further to attain their financial goals.
Symetra Life Insurance Company Ratings and Grades
A (Excellent) from A.M. Best. This is the 3rd highest rating out of a possible 16.
A (Strong) from Standard & Poor’s. This is the 6th highest rating out of a possible 21.
A2 (Good) from Moody’s Investor Services. This is the 6th highest rating out of a possible 21 and puts them in good company with Globe Life Insurance.
A (Strong) from Fitch. This is the 6th highest rating out of a possible 19.
Types of Life Insurance Available
Symetra Life Insurance Company brings a variety of life insurance products to the table.
This can be helpful for clients when fitting coverage to meet their specific protection needs.
The company offers term and permanent life insurance plans.
Term Life
Term life insurance provides pure death benefit coverage only. Because term does not include cash value, these policies are typically more financially feasible than comparable permanent coverage – all other factors being equal.
Term life insurance policies are purchased for a set period of time, such as ten years, 15 years, 20 years, or even for 30 years. The term plans offered through Symetra Life Insurance Company offer level premiums throughout the initial period. This can make these plans easy to budget for because the premium won’t budge during the initial policy’s term.
With these term policies, the policyholder may also have the option to convert the coverage over to a permanent life insurance policy without the need to prove insurability – or even having to answer any medical questions. Doing so can extend life insurance protection for the remainder of the insured’s lifetime – provided that premiums continue to be paid.
If the insured is diagnosed with a terminal disease, he or she may also be eligible to receive no more than 75% of the death benefit from their policy while still living – up to $500,000. This can allow the insured to pay for medical expenses or other outstanding bills and puts them ahead of Primerica life insurance for an all-encompassing term policy.
Symetra Life Insurance Company’s term life insurance policies also offer some additional riders that may be added to better meet an insured’s protection needs.
These riders are:
Insured Children’s Benefit
Additional Term Rider
Waiver of Premium
Accidental Death Benefit
Permanent Life
The permanent life insurance policies offered through Symetra Life Insurance Company provide an insured with a guaranteed death benefit, in addition to a cash value element. In other words, loved ones will be protected, while at the same time allowing tax-deferred build-up of savings within the policy.
There are a number of different permanent policies offered by Symetra:
Symetra UL-G Universal Life Insurance – The UL-G policy is a universal life plan. In other words, the policyholder has some flexibility when it comes to how much of the premium payment will go toward the death benefit, and how much will go toward the cash value component. Individuals who are between the age of 16 and 85 can apply for this plan, and it has a minimum death benefit of $50,000. There are also a number of optional riders available that may be added to fit the insured’s protection needs. Also, the amount of the premium may be reduced if the insured is between the age of 20 and 70, and he or she qualifies for Symetra’s GoodLife Rewards program.
Symetra SUL-G Survivorship Universal Life Insurance – The SUL-G is also a universal insurance policy that offers a guaranteed death benefit, in addition to ensuring that legacy planning goals are being met. This policy can also be a good option for estate planning and wealth transfer, as well as for business protection needs. It includes a lapse protection benefit so the policyholder can ensure the policy will be in force for as long as he or she would like.
Symetra CAUL Universal Life Insurance – This type of policy offers lifetime protection that can be tailored to an insured’s objectives, no matter if it is lifetime insurance protection or primarily cash value accumulation. This policy offers flexible premium payments and death benefit options, including the ability to use cash value as a future financial cushion for things like retirement income and/or paying off debts.
Symetra Universal Life Insurance (2008) – With Symetra Life Insurance (2008), an insured will get lifetime insurance coverage at a fixed cost. As a result, loved ones are now financially secure. This policy also offers several additional riders that can help with further customizing the insurance policy. It also offers an initial interest rate guarantee for 12 months from the date that the premium is received. In addition, this rate is guaranteed to be no less than 3%.
Symetra Successor Single Premium Life Insurance – With this form of coverage, the policyholder can designate a certain amount of money to his or her beneficiary exempt from federal income taxation. Plus, the financial worth of the insured’s estate will essentially go up the minute they purchase the insurance policy. With this plan, there is no need to worry about the policy expiring in the future. This is because it has a guaranteed death benefit that won’t terminate before the first policy anniversary following the insured’s 120th birthday. This policy also allows free annual withdrawals of no more than 10% of the accumulation value each policy year without a surrender charge.
Other Products Sold
In addition to just life insurance coverage, Symetra offers other products, too.
These include:
Annuities
Symetra offers a number of different annuity products. These can help individuals with saving for retirement, as well as ensuring they have an ongoing income that will last them throughout their retirement years.
Annuities offered by Symetra include the following:
Fixed Deferred Annuities
Fixed Indexed Annuities
Variable Deferred Annuities
Income Annuities
Employee Benefits
Symetra also offers employee benefits. The company’s knowledge of the marketplace, as well as its flexible policy designs, can help companies develop an employee benefit plan that best fits their business.
Stop Loss Insurance
Symetra is a pioneer in the stop-loss insurance arena. The company introduced the product to the market back in 1976, and it has worked to build one of the very best and largest medical stop-loss entities in the United States.
Most people want to know their families will have a secure financial future. When you start planning for how you’ll care for your family years from now, it’s likely that you will consider a variety of options. Life insurance should be among the possibilities you study.
Life insurance protects your assets and offers you a chance to help keep your family in a comfortable lifestyle after you’re gone, or even assist a grandchild with paying for a college education. Depending on the life insurance you choose, you could even draw cash from the policy in the event of an emergency or a promising opportunity.
There are two basic types of life insurance: term life and whole life. People value the two for different reasons, and they offer diverse benefits. Each of them has a different set of advantages and disadvantages that you have to weigh. Here’s a little more about the differences.
Term Life Insurance
Term life insurance is life insurance for a set amount of time, or term (10, 20 or 30 years). If you die before this time is up, your beneficiaries will be paid the face value of your policy. This investment option comes at a lower premium cost because the cash value of the policy does not increase with time, and is often more in tune with a person’s budgetary restrictions.
Whole Life Insurance
A whole life policy lasts for as long as you live. Your beneficiaries will receive a payout equivalent to the value of the policy you purchased, plus interest and other cash-deferred amounts. Life insurance rates are more expensive for whole life insurance policies, but the returns can be much greater if you have the time and financial resources to devote to building this resource. You can also use the savings you build here for other purposes if you choose, and while you are still alive.
What should you choose?
The right form of life insurance depends on your needs and goals for your future. Those with money available to spend might benefit from a whole life policy and the effects it can have on their estate planning. Term life policies are a little more flexible if your budget changes, or if you have other changes you encounter with the passing of time.
Term life insurance is going to be the cheaper of the two options, but is cheaper always better?. These policies will save you money, but don’t have the added benefits of accumulating cash value. One thing that most financial experts will tell you is to buy a term insurance policy and then invest all the money that you save, this may work in a lot of cases, but it’s not always the best option.
Whole life insurance provides more of an “investment option” with its cash-value benefit. With these policies, the plan builds up value inside of it that you can use later to borrow against if you need it. You could use this money in case of an emergency or to invest me money. A lot of people like to use whole life policies as an investment because the money grows in the policy tax-deferred. Meaning that you won’t pay taxes on the interest. This is a great way to avoid paying more taxes than you need.
The best advantage to a whole life insurance policy, is the fact that your loved ones will see the return on your investment. Sure, you get put money into the stock market and hope that your children see the money in the future, but you never know what is going to happen to those investments. Life insurance is one of the few investments that you can be positive that someone will see the return on.
Ultimately, you may find that a financial adviser or other professional will be best suited to help you choose the right policy to help fulfill your goals. A trained individual will know how to look at your needs, assets, and other factors to appropriately counsel you as you map out your future. They will be able to help you decide between investing what you save, or paying a little extra for a whole life policy and use the cash value.
Regardless of which type of life insurance you buy, it’s vital that you purchase a policy. These policies are not only a good investment, but a safety net that you can’t afford to not have. And could your family afford for you not to purchase a life insurance policy? An accident could leave them paying off many expenses in your name.
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Would your spouse be able to pay the mortgage? What about the car payments and the student loans? If you sit down and think about it, there are thousands of dollars of debt that you would leave behind. The idea of leaving your family with a stack of bills they can’t pay for is terrifying. This is why the benefit of life insurance is so important. It allows your survivors to quickly pay down debts and takes some stress out of the grieving process.
One way to look at life insurance is as an investment to your loved ones. Sure, you might not see a ton of return on your premiums, but your family will. For your family, this is one of the best purchases that you can make, regardless of what type you buy.
In most cases, life insurance policies are more affordable than most applicants think. Depending on the size of the policy, your age, and your health you can easily fit a policy into your budget.
Life insurance is a bit of a touchy subject for many. After all, the point of the whole thing is to provide some sort of financial coverage to help you pay your final expenses and take care of your loved ones too.
The people who pursue one form of life insurance or another are those who want take care of household expenses, debts, and other burdens in the event they die. There a number of types of life insurance that can be purchased today. They include term life, whole life, and universal life.
Of course, with each type there are certain advantages and disadvantages. Life insurance is something that can be tailored to fit your particular needs and circumstances. One of the aspects that will be discussed here is the concept of permanent life insurance rates. If you want to know more then you need to learn something about universal life insurance.
In fact, universal life is known as a permanent life insurance option. The biggest advantage of this form of coverage is that it has a remarkable level of flexibility when it comes to how payments are paid, the costs of the premiums over time, and the short-term interest rates can be reset each year. Additionally, the rates are normally much lower than other types.
Permanent Structure
The rates for universal life insurance policies are guaranteed to never increase no matter how much the rates paid by insurance companies fluctuate. The structure of the typical universal life policy is arranged based on the idea of permanent coverage. Features of both universal and term-life are included to broaden the range of coverage. This means that not only do you get permanent rates but you also can benefit from investing premiums in order to get cash value. This cash value benefit can be useful for several different reasons. One of the least common ways is that it can be used to provide a loan if you ever need it in the future. This last aspect is a great way to plan for your family’s well being in the event of your death.
The policy rates also function as a form of investment for the policyholder since a portion of the premium you pay goes towards the costs of the insurance while other pats go to a separate account that accrues interest in a tax-deferred structure. This money will be paid out to a beneficiary when you, the policyholder pass away.
Permanent Insurance Options
It should be noted that universal life insurance policy rates come with three payment options. They are fixed premium, flexible premium, and single premium. The first option requires the rate remain the same for a set period of time and you only pay the premium once. Other factors deal with the behavior of the cash value account and how they determine whether you pay additional premiums. The second, the flexible premium, let the policyholder choose when to pay a premium as well as how much. The last option, the single premium, lets you pay a lump sum that deducts the monthly payment costs from the cash value on the account. As you learn more about universal life insurance rates, you’ll find out how a permanent rate can be a good thing.
Deciding which plans works best for you
As we mentioned early, each type of policy has different advantages and disadvantages. There is no “one-size-fits-all” plan that works for every applicant. Take the time to weigh each plan and see which ones fits your needs the best. Our agents can help you decide based on your wishes and what matters most to you
Why you need life insurance
If you’re like the majority of Americans, you would leave behind a mountain of debt if you were to pass away. When you die, what’s going to happen to that debt? They will be passed on to your family.
Every year there are thousands and thousands of families that go through the pain of losing someone close to them, and then on top of that, they find themselves struggling to pay for mortgage payments, car loans, and credit card bills.
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How much life insurance do you need?
Based on what you choose to buy (think term or permanent life), you need to make sure that you get a large enough policy. Not having enough coverage can leave your family struggling to pay for final expenses. So, how do you know if you have enough life insurance or if you should purchase more? There are a few questions that you can ask yourself.
How much debt do I have today? As we mentioned earlier, one of the main goals of life insurance is to help your family pay off any unpaid expenses that would be given to them if you passed away. It will also help them pay for funeral expenses that can be as much as $10,000. Sit down and look at all of the debt and unpaid expenses that you have. Make sure that your life insurance policy is large enough to pay all of those off.
Does your spouse and children use your salary to pay for basic expenses? Would they be able to survive off other incomes sources without yours? If you have several people that rely on your income, then life insurance can give them the funds they need to find a way to replace that lose income.
Getting the lowest rates possible
Regardless of the type of policy, you’ll want to get the lowest rates possible for the best coverage. There are millions of people that are buying more than they need. The number one method to saving is using a broker or independent agent who can serve quotes from lots of companies.
If you have any health complications or pre-existing conditions, it’s important that you find an insurance company or agent that has experience working with high-risk applicants.
Some companies look more favorably at applicants with conditions like diabetes or cardiovascular complications, and if you have any health problems, it’s vital that you find one of these companies to get the best rates available.
By the age of sixty-three, you probably have started to consider how important it is to get things prepared for the well being of your family in the event that you are no longer able to take care of them.
One of the best ways to protect your family after you pass away is to have a quality life insurance policy. At this age, a lot of applicants think that they can’t get a life insurance policy, or they assume that they won’t be able to afford the monthly premiums because of their age, neither of these are true.
Once a lot of Americans retire, typically they stop paying their life insurance policy and let it expire or don’t renew their plan, this is a terrible choice. If something awful happened, would you leave behind a mountain of unpaid debts to your family? If you still have a mortgage payment, car loans, or credit card bills, your life insurance policy can help ease the financial burden.
Hopefully, at age sixty-three you are still in good health and can obtain a quality life insurance at the cheapest rate. Scouring through your options is the best bet as there are numerous options for those that are age sixty-three.
What are Your Life Insurance Options at Age 63?
Despite what one may believe, there are multiple options available for those that are age sixty three. The most popular option is term insurance coverage, but you might have the option to buy permanent coverage as well.
Term life insurance is that it only lasts for a term that is determined at the point of purchase. This is a characteristic that is unique to term life insurance. In addition to this characteristic, it is also known for its affordability compared to many other types of insurance.
Permanent life insurance is the option main option, and it’s very different. They are effective until the day you reach their maximum age limit. Each company has a different age limit, but most are around 90 or 95. They never expire and a part of the premiums get put into a “cash value” bucket. This money can add to the payout or you can borrow the money.
Rates for a 63 Year Old
We can’t tell you exactly how much you’ll pay for your plan, because we don’t know your situation, but we can give you an idea of rates for over 60 life insurance.
Let’s say you want to buy $250,000 worth of coverage for a 20 year term insurance plan. A 63 year-old-man is going to spend close to $4,000 every year for their plan.
If you want to get a smaller plan of $50,000, your premiums will jump down to around $1,200 every year. Obviously, these rates are going to change based on your health.
Before you pick a policy, it’s important that you get quotes from several different companies. Because each company is different, they have different rating systems that will translate into different monthly rates. Some companies view older applicants more favorably than other companies
Here are some sample quotes for a $250,000 policy:
Sex
10 Year
20 Year
30 Year
Male
$86.41/month
$115.06/month
$168.66/month
Female
$56.12/month
$73.94/month
$107.14
Your Rates and Your Health
At age sixty-three, your health could still be good, or it could be going downhill. There is the likelihood that will end up paying slightly higher premiums for your insurance, which is why its a better idea to begin shopping for life insurance at a younger age, even looking for life insurance at 50 is better!
There are some companies that specialize in insuring applicants with diabetes, cardiovascular conditions, and much more. It’s important that you find the best company to fit your needs. You could spend dozens of hours researching different insurance companies to find the one that fits your needs, or we can do all of the research for you.
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Getting the best rates
As we mentioned earlier, shopping around with different companies is a great way to get lower life insurance rates, but it’s not the only way. Even at sixty-three, there are still several ways that you can ensure that you save money every month.
The first is to kick your bad habits, especially smoking. If you’re listed as a smoker on your life insurance application, it will cause your premiums to skyrocket. Using tobacco is a guaranteed way to have your rates double or triple. If you’re a smoker, spend a couple months weaning yourself off. Your lungs and wallet will thank you every month. If you don’t want to quit the cigarettes, it’s important that you find a company that gives lower rates to smokers (you’ll still be paying much more than a non-smoker).
Focusing on your health will not only help your waistline and energy levels, but it can also save you money on your life insurance plan. Being overweight, having high blood pressure, or high cholesterol is not only bad for your overall health, but also bad for your bank account. Regular exercise and a healthy diet can get you in a healthy weight range and reduce your risk of having severe health complications later in life, the less risk that you pose to the insurance company, the less they will charge you.
How large of a policy do you need at 63?
Because you are in a unique stage of life, either retired or soon to be retired, there are a lot of questions about how large of a life insurance policy do you need? This answer to this question is going to depend on three different factors, your debt, your annual salary, and your legacy.
At 63, you may not have much debt anymore. You might have paid off your mortgage and other major debts. If so, then you can buy a smaller policy.
The next question that you have to ask yourself is, “does anyone rely on my salary?” Does your spouse or children still rely on your annual income to survive? If so, then you should always have a policy that would give them the funds they need.
Lastly, what kind of legacy do you want to leave behind and do you have enough saved up to leave it? One of the most common things that people forget is that Uncle Sam is going to take a large portion of that money you want to leave behind for your kids. A life insurance policy is a great way to keep your savings from being eaten alive by taxes.
Bottom Line
If you want to save time and money (who doesn’t), we recommend teaming up with an independent agent. This will save you countless time and money in the long run, especially if you are not well versed in the types of life insurance.