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Preparing for the future usually involves saving for your children’s education or for retirement. You may not have considered life insurance due to misconceptions regarding cost or other issues. Instead of letting false information influence buying this essential life-planning tool, take a moment to get the facts.

Life Insurance and You – What Are the Facts?

Life insurance is put in place to provide financial support to the people you love should you suddenly pass away. Some policies build up value over time and as the years pass, and can be borrowed against, covering a policyholder for a lifetime. Life insurance policies vary in how they work, how much they cost, how the benefits they pay out, and when benefits are paid. Check out the common misconceptions you may have heard about life insurance, so you make an informed decision.

Misconception: Life insurance only pays out at death.

People have a longer life expectancy than in the past. Living well into your 80s and 90s is now a genuine possibility. Life insurance can make it possible to lead a financially independent life. Your life insurance policy is a valuable asset you can borrow against to help support you in your golden years. Some policies allow the policyholder to be covered if disabled. A life insurance policy can be customized with a “rider” that provides for an “accelerated death benefit” to help pay for the cost of care for a chronic or terminal illness.

Misconception: You do not need life insurance if you are single, young, and healthy.

Life insurance may sound like an unnecessary expense when you are single, young, and healthy. In fact, the best time to purchase life insurance is when you are young and healthy, as the premiums are lower, and you can lock in a reasonable rate. A younger person can also invest in a whole life policy, which covers you for a lifetime, and builds equity you can borrow against in the future – it’s a win-win.

Misconception: Life insurance is pricey.

Life insurance can be very affordable. Term life policies have lower premiums, providing coverage for a set number of years, generally up to 30, and with time, as your income increases, can often be converted to a whole life policy that builds equity. The cost depends on numerous factors and can be adjusted according to your spending power. Generally, the younger you are when you purchase a policy, the lower the monthly premiums.

Misconception: You do not need life insurance if you are covered through your employer.

Many employers offer life insurance to employees. Keep in mind that you are only covered as long as you are with the company. Even if you remain with one employer for many years, your policy will end at your retirement or when you find employment elsewhere. Instead of relying solely on your company’s policy, you should find additional coverage for guaranteed protection.

Misconception: Policies must be in the name of the purchaser.

Life insurance could be purchased by anyone who is not a minor and has a regular income source. That means you can buy life insurance policies to cover you, your spouse, or your children. In addition, business owners can purchase life insurance policies for key employees, owners, or partners, with the business named as the beneficiary.

Our Local Agents Are Here to Help.

Life insurance is among the best investments for your business or family. The death benefit is not subject to taxes and provides the beneficiaries with the support they need to pay a home mortgage, regular bills, and the cost of educating children. For assistance in choosing the right policy to suit your budget, our local agents are here to help.

Your credit score carries a lot of weight in many life activities, including renting or purchasing a home, being approved for a credit card or personal loan, and will affect the interest rate you are offered when buying or leasing a car or other item.

While your credit rating does not have a direct impact on your life insurance rate, the data on your credit report, such as past or current bankruptcies, can affect the interest rate or cost or premiums, or being approved by an insurance provider. It is not uncommon for insurance providers to make a soft inquiry into your credit report during the underwriting process.

What Insurers Look for in Your Credit Report

When underwriting a life insurance policy, the insurance company will review a range of available information, including some information found on your credit report.

• Bankruptcy: Financial obstacles and missteps can happen due to unforeseen circumstances, with the best option available being filing for a fresh financial start. For a life insurance company, however, bankruptcy is a red flag and may lead to higher premium costs. An older bankruptcy on credit report is far less likely to be considered a risk. After a bankruptcy debt discharge, waiting 12 to 24 months can allow you to become eligible for more affordable premiums.
• Payment history: During the soft inquiry into your credit history, insurance providers often review your payment history. If you missed too many loan payments or credit card payments, this may suggest that you may be unable to cover the cost of your monthly insurance premiums.
• Collections: Insurers may also look for any bill payments that went to collections.
• Credit card balances: An insurance company may consider you a financial risk if you carry large credit card balances.

There are other types of credit history, such as recently opened lines of credit and how long you have had credit, which could also play a minor role in your life insurance rates. Additionally, insurers may also look at your driving record to see if you have had many tickets or accidents, which could indicate that insuring you may come with higher risks. Whatever your situation, our local agent has access to many top-rated life insurance providers, and can help you, no matter what issues get in the way, including credit problems. We always search for the best coverage at the lowest rates and have access to the best options on the market.

Your credit report is only one of several factors that providers will review to determine your eligibility and rates when you apply for life insurance. As a consumer, even if your credit report has some blemishes, other positive sources of data in other areas, your options may be more affordable. Every insurance company and policy offers various options. With the help of one of our local agents, you can have the personal guidance you need to make the best decision and find a life insurance policy that works best for you and your budget.

If you live with a chronic illness and are considering the prospect of purchasing life insurance, you may be wondering if your condition will get in the way of your eligibility. However, many people with chronic health conditions are still able to qualify for average life insurance rates. Of course, every person’s situation is different, and your rates will also reflect the specific type of chronic illness, and the treatments needed to address your symptoms.

Some chronic illnesses that often impact life insurance eligibility and rates include cancer, diabetes, high blood pressure, HIV, asthma, arthritis, and high cholesterol. Keep reading to learn more about chronic illnesses and life insurance eligibility.

Qualifying for Life Insurance While Living with a Chronic Illness

There are a few different types of life insurance available – term life insurance, permanent life insurance, and final expense life insurance. The type of chronic illness you have will determine which is best for you.

• Term life insurance: The most popular option is term life insurance. Many people choose this because it is affordable and does not have many limitations or tax restrictions. If you have a chronic illness that is relatively well-managed, you may be eligible for term life insurance.
• Permanent life insurance: Generally, permanent life insurance is most appropriate for those with a higher net worth. Given its cash value savings component, it is more expensive than term life insurance. Although having a chronic illness will not prevent you from applying for this type of insurance, it will have an impact on your premium, which might render it impractical.
• Final expense life insurance: For older adults who wish to help their loved ones cover funeral costs or final medical expenses, final expense life insurance may be a good option. It is also great for those who have chronic conditions that might make other types of life insurance impossible to get.

Life insurance riders are another option for you to consider. They can supplement your life insurance policy and cover you if you are diagnosed with a terminal illness or require emergency care. For example, a chronic illness rider can provide benefits for those who cannot perform certain daily activities, such as bathing, eating, dressing, using the bathroom, or safely moving within their home.

Reach Out to Our Team to Talk About Obtaining Life Insurance Today!

With life insurance in place, you can feel confident that your beneficiaries will have what they need in the aftermath of your death. Even with a chronic illness, you can qualify for life insurance. However, your rates will depend on the condition you have, so it is essential to work with an experienced insurance agent who will take the time to understand your needs, condition, and the options that are best suited for you and your loved ones. Let our team help you find the best coverage.

Reach out to our team today to learn more about life insurance and discuss the options that are available to you.

Joint life insurance comes with several appealing benefits. Rather than covering one spouse, the insurance covers both spouses – but only pays one death benefit – when one partner dies. This type of insurance can be more affordable than buying two separate life insurance policies.

How does Joint Life Insurance Work?

Joint life insurance comes in two different types, called “first-to-die” and “second-to-die.” With first-to-die, the insurance company pays a death benefit to the remaining individual, who once paid, is no longer covered. In a second-to-die policy, the policy pays when the second person passes away, so neither of the policy holders will receive the death benefit. This type of policy may be purchased by couples who want the death benefit to go to another party, such as a relative or charity. In estate planning, these policies could be purchased to assist children of the family to pay estate taxes.

Joint Life Insurance, the Pros and Cons

Joint life insurance may be a great option for certain couples, and comes with several benefits:

• It is more affordable than buying two policies.
• Can pay off estate taxes, funeral expenses, or other liabilities when both parents pass away.
• Can be purchased by spouses, domestic partners, or business partners.
• Couples who have a special needs child will want to ensure the child has the financial resources to cover the costs of care with a second-to-die life insurance policy.

The drawbacks of this type of insurance include:

• The premiums cost more than a life insurance policy covering a single individual.
• Health issues of one partner will affect the premiums and ability to get coverage.
• Joint life insurance owned by married couples is almost impossible to split in property division after a divorce.

Should You Buy Joint Life Insurance?

Several life situations make joint life insurance a strategy that makes sense. If you have a larger estate that will be subject to estate taxes, when you pass away, the property you intended your children to inherit may need to be sold to cover those taxes. Many people put such a policy in place to protect their children, ensure the continuity of a family legacy, or to pay a death benefit to a son, daughter, or grandchildren.

Choosing the Right Policy

If you are considering purchasing joint life insurance, you need professional guidance to make the best decision. Depending on what you are hoping to achieve, our local agent can help you understand the types of policies available, including first-to-die and second-to-die, the cost of premiums, and the insurance company that offers the best benefits at the lowest rate. They understand the legalese in these contracts and can explain how they work, and advise you about all the matters of concern, including the cost of premiums and the value of the death benefit. Several insurance companies offer these policies, and our agent can help you choose the right policy to suit your situation.