Is Life Insurance Truly Necessary?

There are many people who simply see life insurance as an unnecessary bill that they have to pay each month, or quarterly, depending on how you have it set up. While you may have a whole lot of other bills to pay such as utilities, car payments, rent or a mortgage or more, there are a few different thing that you may want to take into consideration as you are thinking of discounting life insurance.

To begin with, you never know when your life is going to come to an end. While it may seem harsh to think about, death can occur suddenly, without warning, leaving your loved ones to have to pick up the pieces. No matter your age, having life insurance can be the perfect way for your remaining relatives to tie up any loose ends that you may have had in terms of bills and then work on paying off any of the expenses that they will incur for your funeral expenses.

Anyone who is concerned about having to pay a life insurance premium will find that these worries can be put to rest simply by contacting a life insurance agent in your local area (for our research we used Goldsmith Insurance who offers all types of life insurance across the country). Any of the questions that you may have can be answered easily within one simple phone call or consultation. Even if you already have a life insurance policy in place, the insurance agent may be able to work with you to help you get a much lower payment without changing your coverage at all. In addition to that, you may even be able to tweak your coverage so that you can have a life insurance plan that is just right for you and your needs.

You will find most often that the term life insurance policies will be the most affordable overall. While a whole life insurance policy can cost more, they do build up what is called cash value. With any financial investment, it is a good idea to consider all of your options.

Life insurance options for smokers

Life insurance for smokers have been found to be two to four times higher than individuals that don’t smoke. There are some life insurance companies that will not even cover smokers due to their high risk of health problems in the future. However, there are insurance carriers that offer life insurance options for smokers.

If you are planning on quitting smoking in the future, some life insurance companies may provide you the non-smoking rate for up to two years. After the two years, they will test the you to see if there is any nicotine in your system. If nicotine is found, they will increase your rate to a smokers rate. Other companies will require that you are smoke-free for 12 months before they will consider you a non-smoker.

life insurance options for a smokerA smoker could be someone that smokes all day long. They may smoke any where from a half of pack to one pack of cigarettes a day. Individuals that smoke occasionally are considered smokers as well.

The best way to try to find a great rate as a smoker is to shop around with different life insurance companies. Each company is going to have their own rates. When you shop around, you may be able to find a company to work with you if you plan on quitting smoking. Even if you don’t plan on quitting, you may be able to find a reasonable rate that you can afford in your monthly budget.

Couples that have one individual that smokes and the other one does not smoke are going to find that their rates will vary. The individual that does not smoke is going to be able to receive a cheap rate, but they will have to pay more on their life insurance policy because their spouse smokes.

If you are getting older and are ready to purchase life insurance, be sure to get quotes from several companies. Compare the coverage amounts and what you believe will suite your family best. Look at your budget and see what type of monthly payment you are going to be able to afford. When you have looked at all of these factors, you will be ready to choose a life insurance company to get coverage from.

Purchasing Burial Insurance

Purchasing burial insurance is usually done when people are older and have medical conditions that traditional life insurance might rate up or decline. The policies are for smaller amounts, from between $5,000 to $50,000 in face amount and have higher premiums to make up for the increased mortality risks.

If a potential buyer has fairly serious medical conditions, then the policy may not pay a death benefit for two or three years, depending upon the medical condition that is involved. Most companies will pay back the amount of burial insurance premiums that have been paid into the burial policy, plus a nice interest rate of 8 to 12% on the amount paid in, should the insured die before the 2 or 3 year period has passed.

Reasons to Buy a Burial Insurance Policy

Many people don’t have the wherewithal to provide for their own burial, and they have put off any kind of planning for years, until suddenly they are elderly and cannot purchase life insurance because of their age and health situation. Many consumer groups see these policies as a bad investment, but they are not really an investment, but a life insurance policy based upon underwriting and mortality facts.

burial insurance policyNearly everyone who applies will be accepted in some form or another because no physical exam is required, and the application can be taken and approved in the same day, so the person will know if they were approved for coverage that very same day that the application is made.

Burial insurance, or final expense plans as they are also called serve a purpose of insuring people who have put off taking care of one of life’s last business transactions, that of preparing for the costs of one’s own demise.

This is simply human nature, as no one wants to think about their own death, but whoever is in charge of your burial and disbursement of any belongings or assets, will be the one who has to come up with the money, if you don’t.

How to get life insurance for diabetics

Many people will submit an application for term life insurance for diabetics in 2013. And of those people, some will get affordable rates, some will get very high rates and others will get declined.  Which one will you be?

Well that depends on severage factors. You will first have to understand exactly how life insurance companies handle applicants who have diabetes. What do they look into? How can you be ready? What are the probably outcomes?

Keep reading to find the solutions and get started on your term life insurance for diabetics application.

If you’re a diabetic person and you’re asking whether you can acquire life insurance, the answer is ‘yes’. It doesn’t matter if you have type 1 or even type 2 diabetes, you will be able to get covered IF you have your diabetes under control.

Life insurance companies are increasingly evaluating their underwiting guidelines and looking for favorably at diabetics.  There’s so much data to work with and so many advances in treating diabetes that one can only hope that life insurance continue to fall for diabetics.

What Life Insurance Companies Are Looking For

Life insurance companies are looking for several things:

(1) When you were diagnosed with the diabetes.

(2) How old you are now.

(3) Your a1c levels and/or glucose levels

(4) Medications you’re taking to control the diabetes and if you’re using insulin, how many units you’re taking daily.

(5)  Have you had any diabetic complications?

(6)  Have you shown a history of control of your diabetes?

(7)  Are there any other underlying health issues?

(8) Do you smoke or use any tobacco products?

(9)  Do you exercise and live a healthy lifestyle?

(10) What is your height and weight?

With this information, a life insurance agent can make an informed decision and has the ability to find the best rates on the market.  The more information you can provide, the better your chances are of securing affordable life insurance rates.

A couple other suggestions.  Make sure you prepare for the life insurance medical exam.  This is the most important part of the process and you shouldn’t take this part lightly.  Also, before you apply make sure there aren’t any documented “spikes” in your a1c levels as many companies will give rates based on those levels.

So the key here is giving your agent all the information above and being prepared for the life insurance exam.  That’s all you can do!

Medigap plans

I often get questions from seniors regarding health insurance, most often about Medicare supplemental insurance, also known as Medigap insurance.

Medigap insurance is health insurance that can be purchased from private insurance companies to cover the costs not covered by Medicare. Co-payments, medical care outside the U.S. and deductibles can be covered by Medigap. Some of the exclusions not covered are:

• Long-term care
• Dental or vision care
• Hearing aids
• Eyeglasses
• Prescription drugs
• Private-duty nursesMedigap policies are only available to people who have Medicare Part A and Medicare Part B. They are not available or necessary for people who have Medicare Advantage.Medigap policies are standardized by federal and state laws that are designed to protect the consumer. The policies are identified in most states by letters A through N. Medigap Plan F is the most popular plan because it covers nearly all of the gaps left by Medicare. The policies E, H, I and J are not available to people buying a new policy. All of the policies offer the same basic benefits and some offer additional benefits. Consumers can choose the policy that is most suitable for their needs. In Wisconsin, Minnesota and Massachusetts, Medigap policies have a different standardization.Insurance companies basically decide which policies it will sell, but there may be state laws that affect which ones they can offer. Insurance companies that sell Medigap:

• Need not offer every plan
• Must offer plans A, C or F if they offer any plan

Some important points concerning Medigap Insurance:

• A monthly premium is paid to the private insurance company as well as the monthly payment paid for Part B to Medicare
• Each Medigap policy covers one person. Spouses need to buy two separate policies
• An insurance company must be licensed by the state to sell Medigap
• As long as premiums are paid, the policy is valid and cannot be cancelled. All standardized policies are guaranteed renewable
• In the past, some Medigap policies included prescription drugs. After January 1, 2006 they do not. Consumers need to join a Medicare Prescription Drug Plan, Part D, if they want prescription drugs covered in their policy
• Insurance companies may not sell a Medigap policy to anyone who has a Medicare Medical Savings Account Plan
• The cost of the plan depends on the type of plan, the insurance company, the location and age of the policy holder
• Medigap only covers coinsurance costs after the consumer has paid the deductible unless the policy covers the deductible

People who have a pre-existing medical condition may need to wait up to six months before Medigap coverage begins. The insurance company can refuse to cover costs for the pre-existing condition during that period of time. After six months, the insurance company will cover the medical costs for the pre-existing condition. The insurance company cannot withhold payment for a pre-existing condition if the policy holder buys the policy during their open enrollment period and have had a health insurance policy for the six previous months.