“I’m single! Why do I need life insurance? “ Very good question. A lot of times, I might not recommend you add to your monthly bill pile, but here are 6 reasons you might need life insurance even if you’re single, courtesy of our friends at mastersinhealthcare.com. Can you relate?
Recently, I was fortunate enough to be a guest expert for Nerd Wallet’s personal finance reality show “So You Think You Can Finance.” One of the contestants was concerned about how to support her aging parents once they needed assistance. Below is the link to what I had to say:
Life insurance rates aren’t the same for everyone. The #1 factor that affects what you pay is your health. Just because you have pre-existing medical conditions doesn’t mean that life insurance companies won’t cover you. In fact, a few life insurance providers have loosened up their underwriting guidelines in recent years, and they handle each applicant on a case by case basis. It’s true, no life insurance company wants to take on large amounts of risk, and the healthier you are, the lower your rates will be. That being said, here’s a list of medical conditions that most life insurance companies will automatically decline:
- Angioplasty, Bypass, or Heart Attack within the last 6 months
- Stroke within 1 year
- Alzheimer’s Disease or Dementia
- Current Cancer Treatment
- Cirrhosis of the Liver
- Current Alcohol Treatment
- Severe COPD or Emphysema (on oxygen)
- Juvenile Onset Diabetes
- Kidney Dialysis
- Disabling Multiple Sclerosis
Now if you have one of the conditions listed above, it doesn’t mean there’s no hope. There are guaranteed issue life insurance options which have few, if any, health questions, and no medical exam is required. Typically, $50,000 is the maximum death benefit offered with guaranteed issue policies, and the premiums are higher than fully underwritten life policies. Even though guaranteed issue policies have lower death benefits, my clients would much rather have a check for $50,000 than nothing at all. It’s always smart to get life insurance when you’re young and healthy, but then again we never think we’re going to get old and have health issues. Hindsight is always 20/20, so be sure to act before it’s too late.
If you’re like many people shopping for life insurance, you’re bound and determined to make sure that you get the absolute best deal – the lowest rate available. Hey – I don’t blame you! Why pay more for something if you can find it elsewhere for cheaper?
Good intentions, but not so fast. We’ve all heard the phrase “you get what you pay for”, and with life insurance, it’s no different. To an unsuspecting buyer, you may think that all life insurance is equal. But in reality, it’s not. Here are 3 important things to look for when comparing policies:
1.) Financial Strength
What are the life insurance company’s assets, liabilities, and financial ratings? If you pass away, is the company financially stable enough to pay the claim to your family?
2.) Conversion Options
Let’s say you’re shopping for term life insurance. Some companies offer a conversion option where if you choose to switch your policy to a permanent plan of insurance later on, they won’t require any additional medical tests. You might pay an extra 1 or 2 dollars a month for this feature, but it could prove to be priceless down the road.
3.) Underwriting Guidelines
There are many insurance companies that proclaim they offer the lowest rates, but in reality, hardly anyone gets approved for those rates. I’ve dealt with some of these companies in the past, and it’s extremely frustrating to watch a client who is in good health with no medical history get approved at double the standard rate. You’re better off saving the hassle, and going with a company known for fair underwriters from the start.
So how do you find the perfect company? That’s where we step in. At Envida, we take the guesswork out of buying life insurance. We’ve done the homework for you. We continually price shop, evaluate policy benefits, and research insurance company financials. Based on our recommendations, we always feel confident that you’re getting the best value for life insurance. If you haven’t gotten a quote yet, what are you waiting for? It literally takes 30 seconds!