Understanding Individual Long Term Care Insurance

Author: Rick Lavis, CLTC, LTCP

The cost of long-term care is staggering. For example, a year in a nursing
home now averages $76,000 nationally and can exceed $110,000 in some areas.

Home health care can cost as much or more than the cost of a nursing home. In fact home health care expenses can run $170-200 per day or more for a single shift.

What is Long-Term Care?
Long-term care is the kind of care needed by persons requiring assistance or supervision with the everyday activities of daily living due to physical or
cognitive impairments or for persons needing medically necessary care for
an acute or chronic condition. Care can be provided at home, an adult day
care center, an assisted living facility or nursing home. More than 85% of
care today is received outside of a nursing home setting.

For more information:

http://www.selectquote.com/images/Long_Term_Care.pdf

CHALLENGES AT RETIREMENT

One Man’s Plan

Life consists of two major events with a lot of stuff in between. You’re born. Stuff happens. You die.

Stuff that happens in the early years seems pretty important at the time. But, at the other end of the journey it’s amazing how few specifics you remember. It’s also absolutely mind boggling how fast you get there. Here I am at age 73, much closer to the second major event than the first and wondering how it could have zipped by like it did. When I was a youngster, 73 was ancient! I didn’t know many people who were that old. But then I saw my mother live to age 91 and her mother was almost 100 when she finally faded away.

My mother’s death brought a sense of reality to me as I became the oldest member of my family and realized that the second main event of life comes to all of us at some time. We just don’t know when. And that’s what makes planning for these years such a challenge. How long will it be and what extraordinary expenses might befall us during this time?

I have been very lucky, blessed with good health, a reasonably agile mind, the ability to see the big picture and a solid work ethic. But good luck doesn’t always pan out and is no replacement for planning. It is never too soon to establish a plan for your later years. Trust me; they’ll be here before you know it.

So, what are the most important elements to a plan? What do I think about during my eighth decade on this journey? I think about the importance of my wife and I keeping our good health. I think about trying to spend every day I have doing things that make me and my family happy. I also think about money. Will I have enough to keep doing all the fun things we want to do for as long as we are able to do them? What effect will a major economic shake up—as we are now experiencing—have upon our cash flow? I think about never wanting to be a burden to my wife or kids and how I want to have something left over for my family and loved ones after my wife and I are both gone. I wonder what resources I will have—health, financial and mental—with which to cope.

The health issue is most important. There are no assurances, but being able to afford the best in medical care is essential. So, my wife and I both have Medicare, parts A and B and a Medicare supplement (plan F) that covers all deductibles and copayments as well as a prescription plan. I see my doctor more now than I ever did when I was working full time and my coverage is all inclusive. At this age, preventative care becomes all important. It’s no wonder Medicare funding is in such big trouble. We also maintain a travel accident and health policy since we do travel a great deal to other countries.

When I retired from my 45 years in the insurance business in 2004 I also decided to give myself a leg up by adding a personal trainer to my agenda. I never seemed to find the time when I was consumed by the office five plus days per week, but now my cardiovascular and muscle toning sessions twice weekly are just enough to keep me feeling good and good about myself. In fact, I felt so good about myself that I came out of retirement in 2008 to join my good friend Charan Singh at SelectQuote.

Still, there is nothing to assure that my wife or I will not suffer a debilitating illness requiring extended care that is not covered by these health policies. Dementia and Alzheimer’s come to mind as the greatest demons we may have to face. Medicare doesn’t touch the expenses associated with home care or nursing homes and qualifying for Medicaid is something I would never want to face.

The thing is, the person with the affliction does not suffer nearly as much as the spouse and other family members. It is not unusual for expenses to run into the hundreds of thousands of dollars. And this is where the health and financial factors cross paths. That’s why, when I was age 62, I purchased a Long Term Care Insurance Policy that became fully paid-up in 10 years. I paid for it during my prime working years and now I never need to be concerned about personal financial devastation or family chaos that accompany these inflictions. I can’t tell you what peace of mind I have knowing that I have a policy whose benefits compound annually by 5% and that I will never have to pay another dime of premium.

My financial plan will not be derailed by the expenses of long term care. I saw my father-in-law end up having to spend everything he had worked for, first for home care and finally in a nursing home. Toward the end he seemed oblivious to his plight, but his wife’s death a year before was preceded by a tormented time worrying about how to get her husband the best care and where the money would come from to pay for it. He had been a great provider during his working years, but he just failed to plan. That will not be my legacy.

At my age, income becomes much more important than net worth when measuring financial resources. For this reason, my stock portfolio is diversified and seeks dividend yield as opposed to growth and an immediate annuity is something that I will be adding within the next year. At my age 74 and my wife’s age 70 an immediate annuity can guarantee us an income equal to approximately 8% of the premium until the second of us dies. Approximately 65% of each payment we receive will be tax free until we recover our cost basis. We will only use a portion of our assets to purchase this annuity since we cannot access the principle once the income stream starts. And, if we die in the early years our heirs might have done better if we had gone into a more traditional investment. But it is a great element for our total portfolio, adding a base guaranteed income that we cannot outlive

Finally, to satisfy my desire to leave something for our kids and loved ones when the second of us dies, my wife and I purchased a Second-to-die Life insurance policy eleven years ago. This type of policy is traditionally used to provide for estate liquidity to pay for taxes imposed at the death of the second spouse. Will it be needed for that purpose? Who knows? The federal estate tax has been reducing annually and is scheduled to be non-existent in the year 2010, but then return to its previous 55% schedule in the year 2011. It is likely that congress will make some adjustments to this approach before the end of 2010. The exclusion amount will probably be increased and the percent taxed decreased.

But, whatever happens will not change our commitment to maintain this policy in force. The Internal Rate of Return on the death benefit is excellent, regardless of when the second death occurs and it fits in with our tongue-in-cheek “Estate Plan” to spend the very last dime of every liquid asset we have on the exact date of the second of us to die. We will have lived to the fullest and still have left a legacy of parents who loved their kids and cared for those left behind.

With health insurance to cover all possible long term care needs; an immediate annuity and conservative, income producing investments and a Second-to-die life insurance policy, I feel great about my years ahead and how I will be remembered when the last major event takes place.

Michael M. Flynn
Director of Special Markets
SelectQuote

If you would like to discuss your plans for retirement with the author, he may be contacted at: Mflynn@selectquote.com, or by calling him at 1-888-244-2173.

Term Life Policy Issued in 4 Days — No Physical!

I’m Ed Shapiro, a SelectQuote licensed agent. On Monday, June 16, 2008, a young man contacted me. Another company had declined him for Term Life Insurance because of old driving records. He was anxious to get a policy.

SelectQuote represents a number of different Life Insurance companies that specialize in people with different risks. So I was able to recommend a company I believed would insure the gentleman. An added benefit was this company offered a “Rapid Issue” policy.

On Tuesday, June 17th the young man applied online for a policy. A representative of the Insurance company I had recommended contacted him that afternoon to confirm the information on the application.

On Friday, June 20th at 3:02 pm he was approved at the rate I had quoted him. He was greatly relieved.

One more thing: In addition to the incredibly fast service, the applicant did not have to take a physical exam!

The secret to saving time and money when buying Life Insurance is simple. It’s making sure you choose the right company for you. And that’s the essence of what we do at SelectQuote.

Ed Shapiro
SelectQuote Account Manager
1-800-304-3356 direct phone

How to Extend Term Life Insurance even if you become uninsurable.

I’m Ed Shapiro, a SelectQuote licensed agent. A client, 74 years old, had a Term Life Insurance policy whose term was about to end. Over the years since he bought his policy, he had developed hepatitis and possible cancer.

Knowing he had become medically uninsurable, he asked me if there was any way he could still get Life Insurance.

I was delighted to explain that almost all of the Term Life policies SelectQuote offers have a “conversion and automatically renewable feature” that allows the policy holder to extend coverage — regardless of his or her health.

Our client was extremely relieved he could still provide protection for his family.

I received a call from the client’s wife. She told me that just three months after obtaining his new conversion policy, her husband died. She wanted to express how grateful she was that we were able to extend her husband’s Life Insurance.

Her settlement check arrived just two weeks after she advised us of her loss. And the money was invaluable in paying mortuary costs and setting up a Trust Fund for her.

Ed Shapiro
SelectQuote Account Manager
1-800-304-3356 direct phone

Agent gets Term Life Application approved in 4 days for Iraq bound Soldier.

I’m Trudy Lum, a SelectQuote licensed agent. A soldier recently called me and asked if there was any way we could get him through the application process and approved for a Term Life Insurance policy before he was to be deployed to Iraq in two weeks.

I knew most Life Insurance companies would be reluctant to provide coverage for a soldier about to be stationed in Iraq for a year or more.

But through my extensive experience dealing with the underwriters at the Term Life Insurance companies that SelectQuote represents, I thought one company might write the policy — and at a competitive price. However, the short time frame could make it impossible.

I contacted the Life Insurance underwriter immediately and got an OK to streamline the process.

I started the application on January 17, 2008 and ordered the medical exam for January 21, 2008. The application and exam were completed on the 21st and forwarded to the Life Insurance Company.

On January 21st, the soldier’s application for a $600,000 30 year policy, best rate class, was approved as applied! The next day he received it and it went inforce.

While this is a very unique circumstance and might not happen again, it indicates the compassion SelectQuote and a very special Life Insurance company have to “go to bat” for our clients.

Trudy Lum
Account Manager
1-800-670-1468 direct phone

How to save time & frustration buying Life Insurance

We’re all in a hurry. But the old adage, “haste makes waste” really applies to buying Life Insurance.

For example, many people go to an online service to buy Life Insurance and balk at answering detailed questions about their age, gender, health, family health history and lifestyle. They want a quote now.

So they find a source that only asks a few questions, get some quick quotes, choose a Life Insurance company and sit back expecting everything to be fine.

Several weeks later, however, they often discover that the price they were quoted isn’t the price they’ll have to pay. Remember, quotes are simply estimates. And quotes based on very little information, are frequently wrong.

By spending 15 or minutes with your Life Insurance agent upfront to provide all the information he or she needs to give you an accurate quote, you can save weeks of time and frustration pursuing a price you won’t qualify for.

The pioneer in impartial, accurate quoting for Term Life Insurance —and by far the largest independent sales group— is SelectQuote Insurance Services. SelectQuote has nearly 100 experienced, licensed agents and will match you with your best prices from a wide range of highly rated Term Life Insurance companies. There is no cost or obligation for this service.


SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

How to save money buying Life Insurance

The best way to save money on Life Insurance is to buy Term Life Insurance and shop around.

Term Life Insurance, compared with Permanent Life Insurance, is much cheaper. Most financial advisors recommend it because it offers the greatest protection to your family for the lowest cost.

Shopping around is important because different Life Insurance companies often have different prices for your Life Insurance “fingerprint.” Your “fingerprint” is made up of your age, gender, health, family health history and your lifestyle.

And your price could vary hundreds of dollars a year from one company to another.
The only problem is over 1,000 companies sell Life Insurance. And shopping even a group of them could eat up a lot of time.

Fortunately, there are independent companies that comparison shop for you. To make sure you get the most accurate quotes when talking to an agent:

· Make sure the agent asks detailed questions about your health, family health history,
occupation and hobbies.
· Ask why the agent recommends a certain company to you. What are your other choices?
· Ask what tools the agent used to arrive at your quotes.

The pioneer in impartial “comparison shopping” for Term Life Insurance — service and by far the largest — is SelectQuote Insurance Services. SelectQuote has nearly 100 experienced, licensed agents and will research a wide range of highly rated Term Life Insurance companies for your best rates at no cost or obligation.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

When is the best time to Buy Life Insurance?

The most glib answer is to buy it right before you die. The next-glib answer is to buy it right before you become uninsurable.

When deciding when to buy, some truisms should be borne in mind:

The older you are when you buy, the more it costs.

You have to be very healthy to get the best deal.

The worse your health, the more expensive the policy.

Once you have it, it cannot be taken away from you.

Medical conditions are scrutinized today more than in the recent past.

Some people with certain health conditions, occupations and hobbies cannot get life insurance.
Some other factors also influence cost.

For example, over the past few years most insurers have changed to a new mortality table in setting their premium rates. Since people are living longer than when the older mortality tables were published, the insurers can now expect to collect premiums for a greater number of years and hold onto the lump-sum death benefit longer before they pay it out to the beneficiary. So, the new table reflects greater longevity, which leads to lower premiums.

Is this a good time to buy term insurance? Term insurance costs have actually dropped by as much as half for a given age since the mid-'90s. In this decade alone, they have gone down about 4 percent per year.

For 2008, pundits are predicting that term rates will drop by only about 1 percent. Those same pundits expect the cost of permanent insurance - that is, whole life and universal life - to stay the same in 2008.

Some consumers believe that life insurance rates become very high if one waits until age 40 or later to buy. In reality, cost, which generally stays level after the policy is purchased, is incrementally higher for each year that one waits to purchase. And the older one is, the greater the increment from one age to the next. But there is no quantum leap.

The most important thing to keep in mind is that you need to get the appropriate insurance policy while you are still insurable. Once you cross that line of uninsurability, all the money in the world will not buy coverage for you.

J. Brendan Ryan is a Walnut Hills insurance agent. E-mail him at jbryanclu@aol.com

Mortgage Insurance vs. Term Life Insurance

The concept of buying Mortgage Insurance is tempting. And the thought of having your mortgage paid off if something happens to you is very comforting.

But all mortgage insurance isn’t the same. There are two kinds, and they offer very different coverage.

The first type is called Private Mortgage Insurance (PMI). If you buy a home with less than 20% down, your lender probably demands you have it. PMI protects the lender, not you. Let’s say you default on your home loan. Your PMI will reimburse the lender if he’s not able to re-sell your home for the amount of our mortgage.

PMI is expensive. So as soon as you have paid down your mortgage to a point where PMI is on longer required (your lender is supposed to advise you when this happens) it is wise to cancel it.
Which leads us to the second kind of Mortgage insurance: Mortgage Life Insurance. Here, in effect you buy an insurance policy that will pay off your mortgage in the event of your death, disability or some incapacitating disease.

Unlike PMI, this insurance is voluntary. And, while it’s better than PMI, most experts don’t recommend it for two big reasons:

1. Mortgage Life Insurance is generally sold by the mortgage company. You don’t get the opportunity to shop competitively for your best rates.
2. Mortgage Life Insurance has a fixed premium (generally expensive) but your benefits decline as you pay off your mortgage.

Most financial experts feel it doesn’t make sense to buy life insurance for narrow reasons. It’s much better to analyze your overall needs — how much would it take for your spouse and children to maintain their standard of living — if something happened to you? Then take out a Life Insurance policy that covers all your financial needs including your home mortgage.

Fortunately, Term Life Insurance rates are extremely reasonable today. An easy way to find out what your needs and costs could be is to contact an independent sales agency like selectquote.com with experienced, impartial licensed agents. They’ll not only help you determine your needs, they’ll “comparison shop” highly rated companies for your best rates.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Life Insurance can increase spendable income.

It sounds crazy but it’s true. Just consider this: if something happened to you, where would the money come from for your family to pay the rent or mortgage? Their food and clothing? The car payment? Gasoline? Health insurance? Schooling? Etc., etc.

Chances are if you tried to carve out of each paycheck enough savings to quickly build up the nest egg required to cover those costs, you’d scarcely have anything left to live on.

That’s the glory of Life Insurance — especially Term Life Insurance. Term Life Insurance provides pure protection. There aren’t a lot of bells and whistles. But it does allow you to give your family hundreds of thousands of dollars in protection for just pennies on the dollar.

Let’s say you and your spouse are in your mid 40’s. You’re in reasonably good health, your family health histories are good and you don’t hold down dangerous jobs. Chances are you could each get at least a $250,000 Term Life policies for as little as a dollar or two each a day. (The wife’s policy will cost less, because statistically women live longer than men.)

That leaves a lot of money left over for piano lessons and camping trips.

An easy, no obligation way to see how affordable Term Life Insurance can be for you is to contact an independent sales agency like selectquote.com with experienced, impartial licensed agents. They’ll not only help you determine your needs, they can “comparison shop” highly rated companies for your best rates.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Has your Life Insurance kept up with your Life?

Just as your cars need a tune up occasionally to keep them at optimum performance, so does your Life Insurance.

During the years since you purchased your policy, you may have increased the size of your family, improved your income, bought a new house — significantly increased your personal and financial responsibilities. This could mean you don’t have the total protection you need. And you need to add to your coverage or get new coverage to protect your family.

By the same token, during the past years your children may have finished school and gone off on their own. You may have downsized your personal and financial needs. And your assets may have grown. These factors could mean you can cut back on your Life Insurance coverage.

It’s a good idea to take a Life Insurance “audit” every few of years and “tune up” your protection if necessary. And it needn’t cost you a penny.

An easy way to determine your Life Insurance needs is contact an independent sales agency like selectquote.com with experienced, impartial licensed agents. They’ll not only help you determine your needs, they can “comparison shop” highly rated companies for your best rates.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

BTID Life Insurance. What does it mean?

It’s a short hand term many financial planners use and it means: Buy Term Life Insurance and invest the difference.

The difference they are referring to is the difference in cost between comparable amounts of Term or Permanent Life Insurance.

Permanent Life Insurance is just that. It can last until you’re 100 in many cases. And it can have components that build cash value.

Term Life Insurance is pure protection for a specified period of time — usually 10, 15, 20 or 30 years. In most cases, Term Life builds up no cash value. However it is much cheaper than Permanent Life Insurance for a comparable amount of coverage.

Because of this cost differential, many financial experts recommend their clients buy Term Life Insurance for the period of time when their family is most vulnerable if something happened to a breadwinner. And invest the savings from buying Term Life Insurance into safe, high yield investments.

Most financial advisors recommend that you do not look upon Life Insurance as an investment. It should be chosen for what it can best do: provide affordable financial protection for your family. Life Insurance and investments require separate financial strategies.

The easiest way to determine the Term Life Insurance company with the best rates for you, is to contact an independent sales agency like SelectQuote with experienced, impartial agents that represent a number of highly rated Life Insurance companies that specialize in different risks.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Use Tobacco? You may qualify for Non-Smoker Life Insurance Rates.

Assuming all other factors are constant, people who smoke pay two to three times more for Life Insurance than people who don’t.

However, several Term Life companies now offer non-smoker rates for people who meet their underwriting guidelines. The challenge is knowing which company offers the best rates for you.

Let’s say you smoke cigars. One highly rated Term Life Insurance company offers non-smoker rates if you puff up to 52 cigars a year. Another allows 48 a year. Still another allows only 12 a year.

When it comes to cigarettes, most Life Insurance companies charge smoker rates if you light up as little as one cigarette during the past year. However, if you have quit smoking for at least a year, there is a good chance you can qualify for non-smoker rates. You may even qualify for a non-tobacco rate with daily use of cigars, pipes or chewing tobacco. Again it’s all about choosing the right company for you.

The same goes for people who use smokeless tobacco or other nicotine products.

The easiest way to determine the Life Insurance company with the best rates for you, is to contact an independent sales agency like SelectQuote with experienced, impartial agents that represent a number of highly rated Life Insurance companies that specialize in different risks.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Can Diabetics get Life Insurance?

If you have Type 2 (Adult Onset) Diabetes, and you control it well, the answer is frequently, “yes.” What’s more, if you choose the right Life Insurance Company, you can get reasonable rates. Many companies have adjusted their guidelines and prices for people with good control over Type 2.

The ideal candidate is someone with good weight and no complications such as nerve damage, kidney problems or heart disease. Usually, the older you were when the onset took place, the better your rates.

The easiest way to determine what your rates might be is to contact an independent company like SelectQuote, that represents a number of highly rated Life Insurance companies that specialize in different risks.

To get an accurate quote be sure to tell your agent how many days a month your sugar level exceeds 120. And your most recent AIC level, which measures your average blood sugar levels over the past 8 to 12 weeks.

It is more difficult for people with Type 1 Diabetes to get Life Insurance, but it’s worth a call to an independent Life Insurance sales agency to see what might be available.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

What are Life Insurance rates based on?

Life insurance premiums are as individual as your fingerprint. They’re based on your “risk profile” which is measured for the most part by your:

· Age. The younger you are, usually the lower your price.
· Tobacco Use — cigarettes or other nicotine products past or present.
· Health status. Height, weight. Have serious health issues?
· Gender. Women generally get lower rates than men of the same age because statistically, women live longer.
· Family medical history of parents and siblings.
· Lifestyle. Are you a pilot? Sky or scuba dive?

The other important thing you need to know is that each of the 1,000-plus companies that offer Life Insurance sets its own price for each “risk profile”. They have 15 or more categories of risk and different rates for each one. So the trick is finding the company that offers the best price for your “risk profile.”

Unless you’re willing to spend days talking to agent after agent the simplest thing to do is have an independent company shop for you. The oldest and largest company of this kind is SelectQuote.com. Their agents are all licensed and have tremendous expertise. they will ask several questions to determine which risk category you are likely to fall into and then shop the diverse and highly rated companies they represent for your best rates. No salesperson comes to your door.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Can my Life Insurance rate be lowered after I have a policy?

Let’s say you were overweight when you first bought Life Insurance. Or you smoked, but you’ve quit for more than a year.

If you have resolved any health issue that pushed you into a more expensive Life Insurance rating group, chances are you can save money on your Life Insurance — especially Term Life Insurance. That’s because many Term Life Insurance rates have become cheaper than they were several years ago.

You can contact your present Life Insurance company and see if they will lower your rates based on proof of improved health.

But it ultimately might be easier to apply for a new policy. A different company may have lower rates for your current risk profile, so it’s a good idea to shop around.

The quickest, easiest way to do this is contact an independent company that sells Life Insurance over the phone or Internet and represents a range of highly rated Life Insurance Companies that specialize in insuring people with different risks.

At SelectQuote.com there’s no obligation for quotes and no salesperson comes to your door.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

In a hurry for Life Insurance? Hate needles? Good news.

A highly rated Term Life Insurance company now offers up to $300,000 in coverage and, if you qualify, you can have your policy approved in just 24-48 hours without a Medical Exam.

This convenience will probably cost you more than regular Term Life Insurance. Just how much more — and how much Life Insurance you can get — depends on your age, gender and other factors.

According to the Life Insurance company issuing the policy, “The price of this product reflects a very convenient, fast application process. Most applications are approved without a medical exam in 24-48 hours. Getting a policy depends on your answers to a health questionnaire.”

An easy way to see if this policy makes sense for you is to contact selectquote.com, America’s largest independent Term Life Insurance sales agency.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Comparing Permanent and Term Life Insurance.

Life Insurance policies fall into just two basic categories: Term and Permanent. Understanding the differences between these two will help you decide which policy is best for you.

A Permanent Life Insurance policy lasts as long as you pay the premiums — or at least until you’re 100. Whole Life, Universal Life, Variable Life—they're all forms of Permanent Life Insurance.

A distinguishing feature of a Permanent policy is its cash value. Part of the premium you pay covers your Insurance and part goes into a cash fund.

A Term Life Insurance policy provides coverage for a stated period of time—typically 10, 15, 20 or 30 years.

Because the Insurance company's liability is limited and there is no cash value benefit, Term Life Insurance costs significantly less than Permanent Life Insurance.

Most financial planners recommend Term Life Insurance over Permanent. Here's why:
Term is economical. For many men and women, it's the only way they can afford the large amounts of coverage they need to protect the financial security of their family.

Term can be tailored to just the years you need it. You may have a long-term need—until a new baby finishes medical school. Or a short term need—just a few more years until the kids are on their own. You pay premiums only for the time you need protection.

Most Term policies always include a conversion right. This provision lets you turn in your Term policy for a Permanent policy. In this way, you can get coverage during your younger years at far lower premiums, and have the option of converting to Permanent Insurance if your health takes a turn for the worse.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

What a difference a few dollars can make buying Term Life Insurance

For pure, no-nonsense financial protection for your family most financial experts agree nothing beats Term Life Insurance.

Unlike almost everything else today, Term Life Insurance rates at many good companies have actually decreased from several years ago. So if you have a policy that’s more than five years old, it would be a good idea to see what that same coverage would go for today.

By the same token, if you’re looking to buy new or additional Term Life Insurance for yourself or a spouse be sure to shop around.

An easy way to do this is to go online and find an independent sales agency that represents several highly rated Life Insurance companies. Make sure you talk with a licensed, experienced agent. And be sure to have him quote your cost for different amounts of coverage (for example, $250,000 and $500,000).

You may be surprised at how much more protection you can buy for your family for simply a few dollars a month more.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

The Steps to getting a Life Insurance Policy

Many people who buy Life Insurance for the first time are surprised at the length of time it takes to get a policy. In most cases the steps are:

1. Get Quotes. Make sure you talk with a sales agent or company that is independent and represents several highly rated companies. Time required: with Term Life Insurance you can probably do this over the phone in 15 or 20 minutes.

2. Select a Life Insurance company and apply. Some Life Insurance companies have more lengthy processes than others. Be sure to ask your agent, for an estimate of how long this will take by the Life Insurance companies you are interested in.

3. Paramedical exam. This should take place in your home or office and is free. An appointment is required. The exam itself takes about 20 to 30 minutes.

4. Underwriting. The Life Insurance company you choose reviews your application and medical exam results. If additional information, like a copy of your medical records is required, this could take a few weeks.

5. Policy delivery. Once you receive the policy contract, review it to see that you agree on all details. Then sign and return it to the Insurance company with any final forms and payment needed. A full refund of any prepayment is available within 20 days if your policy is not satisfactory for any reason.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Life Insurance can maximize Retirement Benefits

With a traditional or defined-benefit pension plan, you have to make a choice at retirement. You can take full benefits for as long as you live. Or take reduced benefits, and they will continue for your spouse as long as he or she lives.

If you’re in decent health at retirement, most financial advisors recommend you take full benefits. Then, buy a Term Life Insurance policy with the spouse as beneficiary that, if you die first, will provide the income the spouse needs.

The difference between what you would receive taking full versus reduced benefits can usually more than cover the premiums for a hefty Term Life policy. Especially today, when Term Life Insurance rates are especially low.

It’s easy to determine if this strategy is right for you. Just ask your benefits counselor at work what your full would be each month vs. reduced benefits.

Then go online and shop an independent Term Life Insurance sales agency that provides free quotes and represents several highly rated Life Insurance companies. Chances are you’ll be way ahead taking full benefits and buying the Term Life Insurance.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Does a spouse need Life Insurance?

If both you and your spouse work, and you depend upon both incomes to keep afloat financially, you both need Life Insurance. Term Life Insurance is the most affordable way to help assure income can be replaced should either of you die.

If you are each in reasonably good health, you can probably buy hundreds of thousands of dollars in Term Life Insurance for just pennies on the dollar. What’s more, because women statistically live longer than men, their premiums are even lower.

What about a spouse who doesn’t work? Well, unless you’re independently wealthy, it’s usually a good idea for a non-working spouse to have Life Insurance as well. Just think what it would cost if you had to hire out childcare, shopping, chauffeuring, cleaning and cooking.

Even if the surviving spouse picked up some of these tasks, he or she would probably have to sacrifice time at work. And this could have a huge economic impact on your income.

There’s a quick, hassle-free way to get an idea of how affordable Term Life Insurance can be for you. Just to go the web and find an independent sales company that represents a range of highly rated Term Life Insurance companies. Call them up and ask for a impartial “price comparison” of your best prices.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Why Life Insurance Quotes can be misleading

Chances are you’ve gotten conflicting quotes if you’ve shopped several online companies for Term Life Insurance. The varying estimates you receive are usually a result of how many — or how few — questions you answered to get your quotes. And which Term Life Companies the quoting firm represents.

The following facts can save you time, money, and often, spare you from disappointment:

- No matter what you are quoted, your final price will be determined by the Insurance company you choose. And this is done only after all relevant records and the results of your medical exam have been reviewed.

- Answering a handful of questions rarely leads to accurate quotes. Your price is influenced by dozens of factors including your health, your family health history, your occupation and even your hobbies.

- The more details a Term Life Insurance Agent knows about you up front, the more accurate your quote will be.

- Different Term Life Companies specialize in different “risks.” For example, some companies offer more reasonable rates for smokers or for people who take medication to control cholesterol or blood pressure. You want to make sure your quoting company offers a good choice of Term Life Companies for your particular needs.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Life Insurance for Adult Dependent Children

For most families, the primary value of Life Insurance is to protect a spouse and children until their children have completed their education and are financially independent.

By the same token Life Insurance can provide needed financial security for adult dependent children long after both parents die. All it takes is a Life Insurance policy on one or both parents with enough coverage to provide income to their adult children as long as they are expected to live.

Term Life Insurance is usually your choice for this use, because it is so affordable. A prudent, independent Life Insurance agent who represents a number of highly rated companies can provide invaluable help.
He or she can help you determine how much coverage you need. Then impartially shop for your best rates.

SelectQuote is the oldest and largest Term Life Insurance company of this type.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

The Life Insurance Secret most people don’t know

The proceeds from a Life Insurance policy enjoy a special benefit many people aren’t aware of.

They’re tax free.

And with Term Life Insurance prices at all time lows, there’s no more affordable way to give your family the financial security it needs. A quick, easy way to determine how cheap Term Life Insurance can be for you is to go online or call independent Term Life sales agencies.

Make sure the company you talk to represents a number of highly-rated Life Insurance companies. And that they base their quotes on detailed information you give them regarding you health, family health history and lifestyle.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

5 Top Questions about Life Insurance

1) Do I need a medical exam before getting a Life Insurance policy?
In most cases, yes. It’s free and the Life Insurance company you choose will send a paramedic to your home or office to perform the exam at your convenience. For tips on getting your best results go to; How to get the best results from your medical exam
2) How do I know how much Life Insurance is right for me?
Most people buy Life Insurance to replace income lost if a breadwinner dies. The most economical form of Life Insurance is “Term” Insurance. Many “needs calculators” are available online to give you an idea of what you should need. A licensed, impartial Term Life expert is also invaluable in helping you determine the Life Insurance company that offers the best prices for you.

3) I’m young and healthy. Why buy Life Insurance?
The younger you are and the better your health, the less your Life Insurance will cost. Not only that, you can lock in your low Term Life Insurance rates for up to 30 years. As long as you stay current with your premiums, your price will remain the same — even if your health declines.

4) I have a Life Insurance policy from my employer. Isn’t that enough? It depends on how much coverage you have. Also, if you change jobs, you may not be able to take your Insurance with you. If you change or lose your job, you may not be able to take your group insurance with you. You could have a health problem or risk factor at that time that could make a new Life Insurance policy very expensive. Even worse-you could be uninsurable. Finally, group Life Insurance policies can increase in price every year. Competition between Term Life companies is intense; prices are at all time lows. You may be able to save big money by buying through an independent company that shops for your best prices.

5) Wouldn’t I be better off investing the money I’d otherwise spend on Life Insurance?
Can you afford the risk? Stock prices rise and fall. The coverage provided by a Term Life Insurance policy is guaranteed. And with Term Life Insurance prices so low, you simply can’t find a more affordable way to give your family financial protection.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Questions to ask about Life Insurance from Work

1. Can you take your Life Insurance with you? Many group policies end when you end your employment. And, if you can continue with your group Life Insurance, how much will it cost?

2. How much Life Insurance coverage do you have? Is it enough to replace your income if something happened to you? Here’s a sobering fact, most investments today that guarantee to protect your principal pay less than 5%.

That means if you make $50,000 a year it could take $1,000,000 in Life Insurance proceeds to replace your income. Fortunately, Term Life Insurance rates are pretty cheap these days, so you may be able to afford much more than you think.

3. Who pays for your group Life Insurance? Your employer? You? Partly your employer and partly you”? If you participate in the cost, consider how the following applies to you.

Most Life Insurance policies from work don’t require medical exams. Which means the Life Insurance companies that issue them set their prices “in the middle” knowing they’re going to have a mixture of good and bad health risks.

This is good news for folks with health problems. But, healthy people may be better off shopping for Term Life Insurance on their own.

Regular Life Insurance companies determine your price on your personal profile — your health, your family health history, etc. If you’re in pretty good health, and you pay for all or a good part of your Group Life Insurance, you’ll likely save money buying your own.

An easy way to find out is to go online and get free quotes from an independent sales agency that represents a number of highly rated Life Insurance companies. SelectQuote.com is the oldest and most experienced company of this type.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Suze Orman on Life Insurance

The following except is from a Suze Orman column in the Seattle Post Intelligencer,
May 23, 2007.

As for other ways to protect yourself and your loved ones against loss, one
of the easiest is to make sure you have Life Insurance. Although there are many
kinds (such as whole or universal life), the only type you need is Term Insurance, because it's simple and affordable. Other plans include investing components, but you'd do better to buy the cheaper Term policy and invest on your own.

As its name implies, a Term policy is one you buy for a set time period tied to a specific need. For example, if you want to provide for a baby until he or she graduates from college, you might buy a 25-year Term policy. If you die within that period, the guardian would receive a payout to support the child. Make sure the policy is guaranteed renewable and that it has a level premium, meaning your annual payments won't rise for the duration of the policy.

Use the "rule of 20" to determine the death benefit. You want the beneficiary to be able to invest the payout and live off the income, so he or she doesn't have to worry about tapping into the principal. That means the death benefit should be 20 times the annual income you need to replace. If the goal is to replace $50,000 in annual income, you'd want to buy a $1 million policy.

A 40-year-old woman in good health could get that coverage for about $100 a month. That way, the $1 million payoff could be invested in high-quality municipal bonds - which today pay about 5 percent interest - and generate the needed income. You can shop online for Term Life Insurance at Web sites such as accuquote.com and selectquote.com.

Suze Orman is a best-selling author and award-winning broadcaster. She can be contacted through suzeorman.com.

© Suze Orman, a Trustee of the Suze Orman Revocable Trust. All rights reserved.

SelectQuoe has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

Posted by permission of the author.

Good scores on your Life Insurance physical can pay off big

We used a $500,000 policy from Banner Life* with a 20 year term. as an example. A 45-year-old male would pay $1,205 a year for this policy he qualified for the Standard class rate.

But his rate would only be $755 a year if qualified for the Preferred Plus class rate. That’s a savings of over $450 a year.

When you multiply this over the 20 year term of the policy, it adds up to a saving of $9,100!

The thing that has a great influence on your rating is how you do on your Life Insurance medical exam. For tips on how to make the most of your exam, see the SelectQuote blog, "Six ways to Ace your medical exam ."

By the way, Life Insurance lab results are completely confidential, but you have a right to the results. Just let SelectQuote or any company from whom you buy your policy that you want your results.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

*Banner OPTerm 20-Year: OPTerm 10 issue ages 20-80. OPTerm 15 issue ages 20-70. Opterm 20 issue ages 20-65 and 20-62 Oregon only. OPTerm 30 issue ages 20-50 and 20-45 Oregon tobacco classes only. Premium rates vary by coverage amount: $100,000-$249,999, $250,000-$999,999 or $1 million and above. Premiums quoted include $50 annual policy fee. Premiums are guaranteed to stay level for 10, 15, 20, or 30 years, respectively, and increase annually after initial guarantee period. OPTerm policies can be issued in preferred plus non-tobacco (no tobacco use in past 36 months), preferred non-tobacco (no tobacco use in the last 24 months), standard plus non-tobacco or standard non-tobacco (no tobacco use in past 12 months) and standard tobacco classes. OPTerm 10, 15 and 20 substandard policies can be issued through Table 4. OPTerm 30 substandard policies can be issued through Table 12. Coverage can be renewed to age 95. OPTerm policy form #RT-97. Forms and policy provisions vary by state. Not available in all states. Policy descriptions provided here are not a statement of contract. Rates as of 8-14-07. Advertising Compliance #07-082