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So You Have Life Insurance? Good for You, But ...

Currently, 95 million Americans live without life insurance and only one-third of consumers are covered by individually-owned life insurance policies. So, if you’ve taken any time to think about life insurance and how to best protect your loved ones in the event of your death (which, let’s face it, is inevitable), you’re probably patting yourself on the back, telling your family how lucky they are to have such a responsible person in their lives, and never gave that policy another thought.

Well….  Yes, they are lucky to have you, but the fact is there are times when you should re-evaluate your policy.    One survey found that nearly eight out of 10 people have never changed or even thought about changing their life insurance policies.  The circumstance of your life can change, and your life insurance needs may change with them.

Here are four circumstances when you should take a look at your life insurance policy to ensure that you have the right coverage:

The size of your family changes.
If you get married, have children, get a divorce, or watch a grown child leave the nest, you may want to change the amount of life insurance coverage on your policy.  If your spouse relies on your income to maintain his or her current lifestyle, you may want to increase your coverage to pay off certain debt in the event of your death. 

If your family grows with the addition of children, you may want to make sure there’s enough money to pay for expenses such as a college education or a wedding in the event of your death.  When (hopefully not if) your children grow up, get their own place, and become financially independent, you may want to reduce the amount of your policy.

Plus, you may want to change the beneficiaries on your policy.  Imagine having a life insurance policy with your ex-wife or a deceased parent as the beneficiary.  You may also want to add your children as backup beneficiaries in the event that something happens to both you and your spouse at the same time.

The amount of your debt changes.
In the event of your death, your debt can become your family’s burden.  If you’ve taken on any significant debt, such as a mortgage or student loan, since purchasing your life insurance policy, you may want to increase your coverage.  Then again, if you pay off a mortgage or student loan, you may be able to reduce the amount of coverage or even cancel certain life insurance policies.  Look at your entire financial picture to see if there are other needs for life insurance.  If not, cancel the policy or reduce the benefit amount and enjoy the savings on your premiums. 

Your child becomes disabled.
You may have purchased a term life insurance policy with the assumption that your children will eventually become self-sufficient and no longer need your financial support.  If one of your children becomes disabled, they may need your financial support for a longer period of time.  In this case, you may want to consider taking out a permanent policy that will provide for the child no matter when you pass away.  

You purchased your life insurance policy prior to 2009.
This may seem odd, but 2009 is the year that insurance companies were required to switch to the 2001 mortality tables (the previous table was from 1980), which shows that people are living longer, paying into their insurance premiums longer, and delaying when the policy is paid out.

As a result, your monthly premiums may be lower.  Although you can’t renegotiate your existing policy, you can ask your independent insurance agent to shop around for a lower quote on the same policy.  You may end up with a lower premium. 

If you’ve experienced any of these changes, since you purchased your original life insurance policy, contact the independent insurance agents at American Insuring Group at (800) 947-1270 or (610) 775-3848.  

We offer coverage from competing insurance carriers, so we can find the best deal in terms of quality and coverage, so go ahead and take the challenge. We can take a look at your policy to make sure you have the right coverage for your current circumstances, and then you can pat yourself on the back again!

Ideally, when you retire you are financially stable enough that your death will not leave your spouse or a loved one struggling to make ends meet.  So, the question becomes, “Do I really need to keep paying on my life insurance policy after I retire?”  Life insurance is not really intended to insure your life; nothing can truly replace your life.  Life insurance is intended protect your surviving loved ones from financial loss upon your death.   

It’s interesting to note that some people have a hard time letting go of their life insurance policy.  They think, “I’ve paid on this life insurance policy since I was 25.  I can’t just cancel it.  I didn’t get anything out of it.”  Those same people rarely say that about other types of insurance.  For example: Let’s say you have insurance on a motorcycle you own, and you decide to sell the bike.  Would you continue paying the insurance premiums for that bike?  No, of-course not, and you’d probably be glad you never needed to make a claim and relieved not to have to pay the premiums anymore. 

Financially, the “I haven’t gotten anything out of it yet” scenario isn’t a good reason to continue paying on a life insurance policy; however, there are a few scenarios in which keeping an insurance policy after retirement may make sense.

6 Reasons Why Life Insurance after Retirement May be Right for You

Inadequate pension:

If your family relies on a spouse’s monthly pension payment, and that spouse chooses the higher payments of a plan that is based solely on his/her life expectancy, rather than the lower payments of a “joint and survivor” benefit option or if only a low percentage of the pension is paid to the surviving spouse, you may want to consider keeping your life insurance policy to avoid a financial hardship for the surviving spouse or family members.

Non-adult children:

Many couples are choosing to have children later in life.  If you retire and still have children who rely on you for their financial security, a life insurance policy can help.

Inheritance:

For some parents, it’s important to leave their children (even financially-secure, grown children) an inheritance.  A life insurance policy can provide your children extra financial security for years to come.

Legacy:

Naming your favorite non-profit organization as your primary beneficiary is a great way to pay a little each month and leave a substantial amount to a charitable cause.

Estate Taxes:

If you’re leaving behind a large, illiquid estate, the taxes your beneficiaries will need to pay can be significant.  A life insurance policy can help maintain your estate without affecting their personal assets.

Business Owners:

If you are a business owner or partner of a company with illiquid assets, you may want to consider keeping your life insurance policy.  Illiquid assets are subject to both taxation and market flux.  A life insurance policy can ensure that your business won’t have to liquidate corporate assets.

Temporary or Permanent Life Isurance Policy?

If you decide that you still need a life insurance policy after retirement, you probably don’t need as much or as long of a term, which is good since your rates will increase as you age.  Rather than renewing a term (or temporary) policy, it may be wise to take out a permanent policy (such as a universal or whole life plan). Although permanent policies are generally more expensive, they usually provide higher benefits and you’re guaranteed to “get something out of them.”

Learn More About Life Insurance - Contact Us!

Life insurance can be a difficult topic to discuss. There is no one-size-fits-all approach to retirement or to life insurance. At Amerian Insuring Group we can help you determine your best course of action regarding life insurance after retirement; please contact us at (800) 947-1270 or (610) 775-3848.

Life Insurance and Murder Mysteries

A 25-year-old wife falls to her death while hiking with her husband.  The woman’s mother, convinced that her son-in-law pushed her daughter over the edge, goes on a relentless hunt to prove his guilt.  The authorities, dismissing the accusations as the rantings of a grief-stricken mother, ignore her claims.  That is until they discover that the husband secretly took out a million dollar life insurance policy on his wife just days before her death.

Is this just a plot for a classic film noir masterpiece or could it really happen?  Could someone buy a secret life insurance policy on someone else – maybe even you?

You can rest easy; this life insurance collection plot is extremely unlikely.  Here’s Why:

• Most life insurance policies require a medical exam of the person being insured.

• Most policies require you to sign an acknowledgement letter that will allow the insurer to access your medical information.

• Even policies that don’t require a medical exam will require the signature of the insured.

• It has become standard practice for most insurers to make a follow-up phone call to the person being insured to verify the information on the application.

• Insurance companies make sure that the person buying the policy has an "insurable interest" in the insured, based on marriage, blood, or business relationships.

What About Secret Employer-Based Life Insurance Policies?

Up until 2007, employers could purchase life insurance policies on their employees without their employees’ knowledge or consent.  In the event of an employee’s death, the employer would receive the benefits of that policy. These were known as “dead peasant” policies (lovely, right?).

The bottom line on secret life insurance policies

If you want to go hiking with your spouse, go ahead.  The chances that he or she has taken out a “secret” life insurance policy on you are slim to none. 

To learn more about obtaining the best life insurance protection, contact us at (800) 947-1270 or (610) 775-3848.

As independent Trusted Choice insurance agents, we offer life insurance policies from competing carriers, so unlike single-brand agencies, we are equipped to find you the best deal that truly meets your insurance needs. Call today.

Most people don’t want to think about life insurance; it’s something they pay for and hope they never use. But, let’s face it - you just never know when life is going to throw you a curveball.  It’s what makes life so incredibly exciting sometimes and so very scary at other times. 

Insurance can help you and your family field many of life’s curveballs, but too many people don’t think about insurance until it’s too late.   Here are three curveballs that the right insurance can help you and your family handle.

Early Death

Benjamin Franklin said, “In this world nothing can be said to be certain, except death and taxes.” We are all going to die; fortunately, the odds of dying at a young age are pretty slim.  In fact, the odds of a 25-year-old American dying is about 1 in 3,000; for a 33-year-old, it’s 1 in 1,500; and for a 42-year-old, it’s 1 in 750.  Comforting, right?

What if you have the misfortune of being one of the “1 in”?  If you haven’t planned for this curveball, the financial consequences can be devastating to those you leave behind.  Younger individuals often have additional debt, such as student loans and mortgages.  Many have young children who still have a lifetime of expenses ahead of them.  Life insurance can financially protect your loved ones. 

Long Life

On the flip side of an early death, is living well into your 90’s or 100’s.  Medical advances are allowing people to live longer, healthier lives.  According to data compiled by the Social Security Administration:

• A man reaching age 65 today can expect to live, on average, until age 84.
• A woman turning age 65 today can expect to live, on average, until age 86.

And those are just averages. About one out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95. Traditionally, most people expected about 15 years of retirement.  Today, it can be 20, 30, or even longer.   This is awesome, right? 

Absolutely - if you’ve prepared for this particular curveball.   A permanent life insurance policy can provide much-needed funds to help supplement your retirement income.  You can also get a long-term care rider on permanent life insurance that can help cover long-term care costs.

Becoming Disabled

Your chances of becoming disabled are probably higher than you think.  According to the Council for Disability awareness:

• Just over 1 in 4 of today's 20 year-olds will become disabled before they retire.
• One in eight workers will be disabled for five years or more during their working careers.

Are you prepared this curveball? Probably not.

•       The average group long-term disability claim lasts 34.6 months.

•       5% of working Americans say they could not cover normal living expenses even for a year if their employment income was lost; 38% could not pay their bills for more than 3 months.

The Case for Disability Insurance

Disability insurance is important to help you make ends meet until you’re able to go back to work.  Plus, many life insurance policies allow you to add a disability waiver to cover certain expenses if you become disabled, and some permanent life insurance policies have a premium waiver in the event you become disabled.

Insurance Protection for Those Curveballs!

American Insuring Group can help protect you and your family from life’s unexpected curveballs.  Contact us by email or give us a call at (800) 947-1270 or (610) 775-3848.

Have you ever wondered what factors determine your life insurance rates?  Is it just your age…the state of your current health? Is there anything you can do to make your life insurance more affordable?

Insurance companies look at several factors to determine the likelihood that A) you’ll live a very long life, or B) you’ll die very soon. As depressing as that may sound, it’s a fact, and it’s what determines your life insurance premium. 

What Do Life Insurance Companies Consider When Setting Your Premium?

While every insurance company has its own underwriting criteria to determine your premium, you may be surprised by some of the factors they look at.  What isn’t surprising is that many of the factors that determine your life insurance premiums can also affect the quality and/or length of your life. Some you can change and some you can’t.  

Here are eight factors many insurance companies use to determine your life insurance premiums, and some tips on how to get a better rating and save on your life insurance policy.

1. Driving violations

If you’ve had two moving violations in the past year or a DUI in the past 5 years, you may be considered a reckless driver, which could put your life in danger and pose more risk for the insurance company.  There isn’t much you can do about existing violations, but you can SLOW DOWN and not drink and drive.

2. Your workplace colleagues

If you have group life insurance from your workplace, the premiums are based on the average age and health of everyone, not just you.  So if you work with a group of individuals who are older and less healthy than you, it may raise your premium.  On the other hand, if you work with a group of individuals who are younger and healthier than you, it may lower your premium.  Make sure you compare the price of an individual health insurance policy before jumping into a group plan. 

3. Credit history

Individuals who have filed for bankruptcy are considered a high-risk proposition and many insurance companies won’t even issue a policy until their credit report has been cleared. Make sure you consider all the alternatives and consequences before filing for bankruptcy. 

4. Lifestyle

Are you a daredevil?  Do you prefer skydiving to reading…car racing to gardening? Certain hobbies can disqualify you from getting the best rate on life insurance.  Even travel outside of the country can increase your premiums.  So, consider the increased cost of life insurance when weighing the pros and cons of your career choices.

5. Occupation

Higher-risk occupations, such as airline pilots and high-rise construction engineers, can create a higher risk for premature death, thereby causing higher life insurance premiums.  Solution – choose your occupation wisely.

6. Smoking Habits

We all know smoking can raise your risk of stroke, lung disease and many other life-threatening medical conditions; therefore insurers often charge smokers a higher premium.   One more reason to kick the habit. 

7. Your weight

There are a number of diseases related to being overweight that can shorten your lifespan.  Most insurers look at height, weight, and body mass index (BMI) to determine your premium.   Plus, many insurers want to see you keep that weight off for at least one year before they will offer you a better rate.   So if you were looking for that final push to get you started on an exercise and diet plan, think about all the money you can save on your life insurance premiums.

8. Family health history

Your family’s medical history shows what diseases you may be prone to. You can choose your friends, but not your family; however, you can choose to protect your family with the right level of life insurance, and you can ask your doctor for advide on how you may be able to reduce your health risks through proper diet, exercise, and other factors in light of your family medical history.

Ready to Talk Life Insurance?

Contact American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about your life insurance options, or for a free quote on life insurance.

A new year is a great time for reflection and fresh starts.  It’s the perfect time to put the past behind you and look toward the future.  Compared to losing those extra 20 pounds, protecting your family in the event of a death is a surprisingly easy New Year’s resolution. 

Although most people don’t want to think about their own death or the death of a loved one, preparing for the event is one of the most selfless acts you can do for your family. 

Life Insurance for the Primary Breadwinner

The first thing you want to do, if you haven’t already, is ensure that the primary breadwinner in the family is covered.  Nothing can replace a spouse or a parent, but the financial consequences of that loss are another matter.  Life insurance can protect the surviving family members from the loss of future income and the expenses that occur as a result of a death.  Most people understand the importance of life insurance for the primary breadwinner, but there are other considerations as well.

Life Insurance for your Spouse

Very few families today can survive on one income, so even if a spouse makes less than the primary breadwinner, you should take a look at what the loss of that income would mean to your family.  Could you survive financially if you lost that second income?  Or, let’s say that spouse doesn’t produce a monetary income, but he or she is the primary caregiver of children or aging parents.  What would it take, financially, to replace that care?  No, life insurance can never replace the love of that caregiver, but it can give the survivors some peace of mind that their essential needs will be taken care of.

Life Insurance for your Children

Finally, the death of a child is probably the worst thing that can happen to anyone, and it’s every parent’s worst nightmare.  It’s something no parent wants to even consider, but in the event that something should happen, life insurance can at least alleviate the financial burden of a child’s death.  Many people believe that purchasing life insurance for children is a giant waste of money.  Your children probably aren’t bringing home a paycheck that you rely on to pay the bills, but there are other factors to consider.  

• The average cost of a traditional funeral is almost $6,600, according to the National Funeral Directors Association. Cemetery services, including the gravesite and vault or liner, can cost an additional $3,000.  A life insurance policy on your child allows parents to grieve without the burden of worrying about how they will pay for the funeral.
   
• Medical bills left from a prolonged sickness and/or emergency room visits can accumulate and become a burden to a family mourning the loss of a child.  A National Institute of Health (NIH)-funded study found the average cost for an ER visit was more than $2,000. In 2012, 11 of the 12 FDA-approved drugs for cancer were priced above $100,000 for a year of treatment.
   
• Your child may develop a condition later in life that will preclude them from purchasing life insurance in the future.  Protecting your child early in life can ensure they have protection in the future.

Protect Your Family with the Right Life Insurance

Looking to the future by protecting your family with life insurance is one of the easiest and most selfless resolutions you can make.  Make it a goal to protect your family with the right life insurance.  Contact us at American Insuring Group at (800) 947-1270 or (610) 775-3848 to learn more about affordable life insurance policies available for your entire family. 

Business Insurance that Attracts & Retains Employees

Great employees can be the fuel to move your business ahead of the competition. Dedicated employees add more and more value over time as they gain increased knowledge and experience. While everyone likes a company that offers great benefits, the best employees and job candidates are likely to view the quality of the benefits you offer as a compelling reason to join, remain at, or leave your firm.

With today's cost of purchasing individual insurance, employees are likely to view well-designed employer insurance packages as a deciding factor in selecting one company over another. Furthermore, strong benefits packages help retain your best employees, reducing the high cost of employee turnover.

Designing an Attractive Employee Benefits Package

That's why smart business owners create attractive employee benefits packages that not only include health insurance, but often life insurance, extended disability insurance, dental insurance, and generous retirement plans, among other options. Executive compensation packages may also include deferred compensation plans and higher levels of insurance coverage to retain your best talent. It pays to be well informed on the range of insurance options available to your business.  Your independent insurance agent can be a key resource to help you craft an employee benefits package that attracts better employees at a price you can afford.

Commercial Insurance to Protect Your Business in Ways You May Not Have Considered

General liability insurance, property insurance, vehicle insurance, and workers' compensation insurance form the foundation of your business insurance protection. However, there are other types or subcategories of commercial insurance to consider. Among these are key person insurance, individual insurance, and insurance-backed buy-sell agreements.

Key Person Insurance: Thinking Beyond Job Titles Alone

Key person insurance, also known as key man insurance, is designed to reimburse you for the loss of sales or earnings due to losing an executive, business partner, or other key employee due to disability or death. When considering key person insurance, think beyond titles and identify those employees in your organization who, if unavailable, would dramatically impact your sales or the continuity of your business operations.

These may include high-performing sales reps and customer service personnel, as well as employees with deep technical knowledge of your industry or complex internal processes. Such people may be very difficult to replace with someone of similar knowledge or talent, resulting in reduced productivity or lost sales revenues for your firm for years to come. Your independent insurance agent can help you put together a smart key person insurance package to protect your business financially from the impact of losing a key employee. 

Backing Buy-Sell Agreements with Business Insurance Protection

In the excitement of starting a new business with your business partner, business owners often overlook the need to work out all the details of a buy-sell agreement that comes into effect as a result of the loss of the other business partner due to retirement, death, or disability. While an attorney may be invaluable in putting together such agreements, don't neglect the need to obtain the proper life insurance on each partner to carry the remaining partner through the transition period and to keep the business financially healthy. The insurance coverage should be sufficient to buy out the departing partner's share of the business due to any of the circumstances mentioned above.

Life Insurance for Business Owners: Obtaining the Right Amount of Coverage

Business owners should carefully determine the amount of personal life insurance protection needed. Unlike employees, owners often have significant personal assets tied up in the business, such as a second mortgage that may have been used to finance the business. If the surviving family members' income drops significantly due to the death of the business owner, the results can be disastrous not only for the family, but for employees as well, even if significant personal loans and assets have not been invested in the business.

Low levels of life insurance may threaten not only the entire business, but also the careers of all employees by potentially forcing the surviving family members to liquidate or sell the business to pay the personal debts of the deceased business owner, or simply to provide the income needed to keep up with day-to-day financial obligations.

We Can Help with All Your Business Insurance Needs

We can help you make sense of your many business insurance options, from key person insurance, to life insurance, health insurance, disability insurance, dental insurance, and other forms of personal and commercial insurance to protect your business, and to attract and retain employees. We serve businesses in Reading, PA, Philadelphia, Allentown, Harrisburg, Lancaster, Lebanon, State College, Pittsburgh, Erie and points in between and beyond. 

Contact us

(800) 947-1270 or (610) 775-3848 

Take the challenge - get a quote. We offer the best insurance protection at the best price.

Are You Procrastinating Over Life Insurance?

Life insurance. It's one of those decisions that can be so easy to ignore, a can we like to kick down the road, whether that road hails from Philadelphia, Reading, Allentown, Lancaster or beyond. If you've been procrastinating about resolving your life insurance needs, then this article is for you. Let's think this through and get that monkey off your back, shall we?

Life Insurance When Married or Single, With or Without Children

Life insurance is typically purchased to protect our loved ones from the financial hardships they would otherwise face in our absence. With that in mind, let's get real about the nature of those hardships. For those with children, the ante is upped. Yet even for couples with no children, the financial hardships faced by the surviving spouse can be onerous and life changing, to say the least.

Life Insurance to Protect Your Spouse or Partner

For starters, your spouse will need the financial resources to cover all your existing monthly bills without the benefit of your ongoing income. Big ticket items such as your monthly mortage are typically the first thing most people consider when figuring out how much insurance may be needed. However, couples with large credit card balances should also consider the impact of the high interest rates on credit card debt were the surviving spouse forced to make smaller or even minimum monthly payments on that debt. This alone could amount to a life sentence of unending high-interest debt that robs your loved one of the opportunity to save properly for retirement. With the proper life insurance these risks can be mitigated or avoided altogether.

Likewise, consider the amount and nature of all other consumer debt, from your spouse's car, RV, or motorcycle loan on up to truly big-ticket items such as a vacation home. If your spouse were forced to sell these things to help make ends meet, would the proceeds pay off the remaining debt on those items, or would your spouse in effect be "under water"? Consider the emotional impact on your spouse of losing a cherished item such as a vacation home or family car while being saddled for years to come with the remaining debt after the sale. 

Funeral costs are sometimes overlooked by those purchasing life insurance. With average funeral costs exceeding $6,500 before ancillary costs such as flowers, grave markers, and other cemetcry fees, your spouse may be forced to put this expense on a credit card if your life insurance policy is inadequate or if the insurance funds are needed for other purposes.

Life Insurance Protection for Those With Children

In addition to the above, those with children should consider the following financial needs or the surviving children, whether or not you are married or single. First, you will want to protect your children from the additional hardship of being forced to move into a different home. Losing a parent can be traumatic in itself, but the shock can be compounded when financial hardship forces a change of surroundings and a feelings of insecurity that often accompanies a forced change in the place they know as home.

Education is obviously important. However, beyond covering your child's college costs, consider if their current schooling situation will be forced to change. Tuition for private grade school or high school may be the first thing to go if funds are low, resulting in further disruption to a child's life at a most difficult time.

Child care is yet another concern, and for two reasons. First, if the surviving spouse is forced to go into the workforce after having stayed at home to raise children, those children may have to leave the familiarity and comfort of home at a most difficult time. Second, if the spouse had been working and continues to do so, she or he may be forced to find alternate care at a lower cost, and possibly a lower quality, again forcing a lifestyle change for a child at a very difficult time.

Think Through Your Life Insurance Needs

The above scenarios provide just a few examples of how your loved ones' lives can change when insurance planning has been poorly executed, or worse, completely avoided. Don't procrastinate. Instead, take the time to think through the needs of your loved ones should they be forced to cope without your income. Every situation is different, which is why consulting with your independent insurance agent can be key to obtaining the best life insurance situation to suit your unique needs.

In summary, we've covered 7 common-sense reasons to get the proper life insurance protection for your peace of mind and your family's welfare. Are there additional financial needs beyond these that apply to your situation?

1. Protect your family from financial hardship in general
2. Credit card debt
3. Other consumer debt
4. Funeral costs
5. Allow family to stay in current home
6. Cover college and private school tuition (avoid change)
7. Cover child care costs (avoid change)

Contact Us

Don't kick the can down the road when it comes to life insurance. Please click here to contact us today, or call us at (800) 947-1270 or (610) 775-3848 for help in obtaining the right life insurance protection to meet your needs and budget.

Although we'll all die someday, when we do, we don't want to leave our loved ones with huge debts or financial problems. To ensure your family is financially secure in case you should pass away unexpectedly, you need life insurance. Like other financial products, it is important to get an insurance solution that provides the best value for your money.

An affordable policy can help you save money without straining your budget. Here are seven tips to help you pay less for insurance:

1. Determine the amount of life insurance you need

Check your finances and determine how much life insurance you need. Consider the expenses that your spouse and loved ones will have to bear should you pass away unexpectedly. Think about short-term expenses such as funeral expenses, buying food and paying rent, as well as long-term expenses such as college education costs.

Check the amount of savings you have and use life insurance to cover the difference between the savings and the total expected expenses of your loved ones.

2. Decide on the type of life insurance to apply for

You can apply for permanent or term life insurance. Permanent insurance offers protection for your whole life while term life insurance provides protection for a specified term. Term insurance will help you save on your payment cost. The insurance is cheaper than permanent insurance and is the better option in many situations. However, in some cases a whole life policy may work best for you, depending on your investment portfolio and strategy.

3. Shop around for the best rates

Insurance providers charge different rates. To get the best deal in the market, shop around and compare the offers of different providers. Look at both the cost of premiums you will pay and the coverage provided by each insurer. Use online insurance comparison websites to compare rates from different providers, but be sure to speak with a knowledgeable insurance agent before making a final decision. Remember, and independent agent is positioned to save you money because he or she represents many different insurers, and can select the best policy for your specific needs.

4. Check for hidden fees

As you shop around, be sure to understand all hidden fees. Some insurance companies charge fees every month instead of annually. Some policies also come with riders, or add-ons, that may not benefit you at all. Examples of add-ons that you should understand in terms of both cost and benefits before reaching a decision include:

• Accident death benefit
• Waiver of premium rider
• Disability income rider
• Accelerate death benefit

5. Make lifestyle changes

Staying healthy can significantly lower your insurance premiums. People with lifestyle diseases such as obesity and diabetes usually pay higher premiums. Before you apply for insurance, think about getting into shape, quitting smoking, and reducing alcohol consumption. If you already have purchased life insurance, you can renegotiate the payments when you start leading a healthier lifestyle.

6. Round up your payments

Most of the time, you will pay less for coverage that is rounded up into larger multiples. For example, a $500,000 policy may cost less than a $400,000 policy. Check with your insurance provider for the rate per $1000 of coverage, which usually goes down when a certain amount of coverage is achieved. The figure will help you determine the amount of benefits you will receive for the least amount of money.

7. Find an independent life insurance agent and the right insurance company

Some companies offer competitive rates for conditions such as cancer, heart disease and diabetes. These companies have underwriters who analyze the condition of insurance buyers on a case-by-case basis rather than setting a lump sum for buyers with a particular condition in one group. For example, if you have mild diabetes, you are likely to pay less than a person with chronic diabetes. An independent agent can help you compare such options from several companies, resulting in a better match between your needs and your policy.

Need help finding the right life insurance at the right price?

We can help. Contact us at 800-947-1270.

Life Insurance - It's "Booming"!

With the large baby boom generation entering retirement age, retirement planning is getting more and more attention. Interestingly, while marriage is still the leading cause for people to buy life insurance, retirement is also a major motivation. In fact, research from Northwestern Mutual Life, as conducted by Harris Interactive, shows that 25 percent of people buy life insurance products when they enter retirement -- almost as much as the 32 percent of people that buy it after getting married. 

Income and Retirement

On first glance, this may seem a bit counter intuitive. After all, many people buy insurance when they are younger to protect their spouses and family against a loss of income and Northwestern Mutual's research bears this out. As people age, protecting their incomes from work becomes less important as their living expenses drop and income from their retirement portfolio begins to replace wages. 

Retirement today is more complicated than in the past. Today, many retired people still work, although they may work reduced hours or switch careers. This can create a need to secure income. In fact, many of the retired people that purchase life insurance cite a desire for income security as a major motivating factor. 

Making Money on Life Insurance... Without Having to Die

Purchasing a life policy can do much more than protect income. It can also augment existing income. Products that include an annuity feature provide yearly cash payments that provide retired couples with more money and a more fulfilling lifestyle. Whole life and universal life insurance products can be smart savings vehicles, building value and earning very secure returns while also providing a death benefit like other types of life coverage.

Insuring the Life of a Business

Life insurance coverage is especially valuable as an estate tax planning tool for retired people with businesses or large tangible assets but that also have comparatively small pools of cash, securities or other types of liquid assets. When people in this situation die, their heirs inherit their assets but will have to pay an onerous estate tax on the value of assets transferred to them that exceed any exclusion. Without cash, they would have to sell the asset or business to pay the estate tax liability. To mitigate against this eventuality, some retired asset holder purchase additional life insurance. Upon their passing, the insurance pays a tax-free death benefit which their heirs can use to pay the estate tax, leaving them the ability to retain the assets.

With all of these benefits, it is not surprising that 25 percent of retired couples are purchasing and benefiting from life insurance. As more people discover its benefits, it stands to become even more popular.

Do you need better life insurance coverage?

We can help. Contact us at 800-947-1270 to review your options.