What are your Life Insurance Options?
Confused by all of the types of life insurance options available? Then read on…!
Starting with the facts on Death in the USA
100% of all Americans will die.
Average life expectancy of an American male is 79-81 years old.
Average life expectancy of an American female is 81-84 years old.
Less than 5% of Americans live past age 90.
Less than 3% of Americans live past age 95.
Less than 1% of Americans live past age 100.
“Almost half the women over 65 years of age in the United States are widows. About 7 in 10 of these women live alone.”
“According to the U.S. Census Bureau 800,000 people are widowed each year in the United States. “Nearly 700,000 women lose their husbands each year and will be widows for an average of 14 years.”
Traditional term policies in America pay out less than 3% of the time, they traditionally end before age 80 and we out-live them.
A policy covering you to age 90 has a 95% chance of payout.
A policy covering you to age 95 has a 97% chance of payout.
A policy covering you to age 100 has a 99% chance of payout.
Three most common types of life insurance are
Accidental Death – The least expensive type, coverage ends normally at age 75 or age 80.
Good for ages 0-21 as a rider on an adult’s policy, ages 18-70 on own policies. Great family and spousal policies available as well.
Term Product – Covers any type of death, has an end date built into it, usually 10, 15, 20, 25 & 30 years. All Term by law is annually renewable to age 95, but the premiums SKYROCKET yearly to an unaffordable cost. Some term products offer a Refund of Premium rider!
Good for ages 18-80.
Perm Product – Covers any type of death, this product is usually most expensive and usually has cash growth built in. This product is priced to age 121 normally. However there could be economic conditions that cause cash growth products to possibly increase in cost or have coverage end before the insured’s death. There are Perm products available without cash growth manipulation and the ability to manually put your own end date (Example end at age 93). Basically creating a very LONG term, this is at a significantly lower cost. Some Perm products are built just for Final Expense and older clients with health concerns are eligible.
Good for ages 0 to 85.
Two ways to get life insurance that covers any type of death
The best way to get life insurance is with an agent who is interested in PROTECTING your insurability. These agents do not require you to see a nurse, give blood samples or urine samples. These agents do not ask you to stand on a scale or to do a mouth swab. These agents are interested ONLY in your past medical history that you are aware of and desire to get you the protection you requested. This is the type of program I LOVE to help my clients with!
The second way to get life insurance is by giving up your blood and uring, seeing a nurse and stepping on a scale. The insurance companies these agents represent are trying to find something to disqualify you for their product. They only want to cover the healthy so they remain wealthy, so to speak. Once they do find something and decline you, they report their findings to the MIB (Medical Information Bureau) for ALL other insurance companies to see, essentially ruining your insurability.
I only use the second way to get someone insured if they already have coverage and I am trying to get them a better rate! If it does not work out, they still have coverage.