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Did you recently get married?  Have you started thinking about having children?  Are you already pregnant?  Congratulations!  This is a very exciting time in your life! 

Next question…Have you thought about life insurance?  Your life insurance needs will probably change significantly once your baby is born.  The task of regular feedings and diaper changes will probably have you struggling to sneak in some shut-eye, and I can pretty much guarantee that preparing for the "what-ifs" in life will move to the bottom of your to-do list.  

Whether you become a stay-at-home mom or work outside the home, it’s important that you plan for the “what if” something were to happen to you.  Life insurance helps ensure that your child can be properly cared for and that your family doesn’t face financial hardship.

Can Pregnancy Affect Life Insurance?

Sounds like a crazy question, right?  Pregnancy isn’t a disease; it’s the way children have been brought into the world since the beginning of time. 

In the vast majority of cases, pregnancy has no effect what-so-ever on life insurance rates.  If it’s early in your pregnancy and there are no medical complications, your life insurance should be unaffected. 

However, on rare occasions, pregnancy can affect your policy rate and/or your ability to obtain life insurance.  If you’re farther along and there are medical issues, some insurance companies may force you to wait until after your child is born to purchase life insurance. 

Life Insurance Risk Factors During Pregnancy

The most common medical issue for pregnant women is gestational diabetes.  Between 3 and 10 % of all pregnant women experience gestational diabetes at some point during their pregnancy.  While this issue usually disappears upon the birth of the baby, there are instances when it can lead to other forms of diabetes, such as type I or type II diabetes. 

Another risk is if the mother gains excessive weight during her pregnancy.  This can cause preeclampsia, which can affect the liver, kidney, and even brain function.  If she is unable to lose the excessive weight after childbirth, she can develop other conditions, such as high blood pressure, that can also affect insurance premiums. 

In some cases it makes sense to wait to apply for life insurance until well after the delivery so the new mom has time to deal with the after effects of pregnancy.  The lower premium rates will allow her to save money and/or enable her to buy a larger amount of life insurance.

This is fine if you already have a life insurance policy in place.  If not, you could have inadequate coverage, leaving your family vulnerable to financial hardship.  Therefore, we recommend that you look at your life insurance needs prior to planning for a family. 

Term vs Permanent Life Insurance

Term life insurance costs less than permanent, making it more affordable for young families who may not have a lot of disposable income, but if you live beyond the period of the policy, you and your beneficiaries receive nothing.  Permanent insurance (often referred to as whole life insurance) is more expensive initially, but it will provide lifelong coverage and a cash accumulation feature, which can help supplement your retirement plan.  

Sometimes, the best solution is a combination of both term and permanent life insurance.  The term policy can give you extra coverage during the years when the children are at home and the permanent policy can provide life-long coverage.

How Much Life Insurance Should I Purchase?

Both working and stay-at-home moms need life insurance.  While a stay-at-home mom may not contribute an income, it would be expensive to replace all the things she does if something were to happen to her.  If the income that a working mother contributes is important to the family financially, she needs to replace that income if something were to happen to her.

Don’t be tricked into thinking the group insurance you have through your employer is adequate coverage.  Usually, that coverage is given in a lump sum of money – maybe $50,000.  That may sound like a lot, but think about how long that money would actually last.   Plus, if you leave that employer, the policy is normally terminated.

Estimating Your Life Insurance Needs 

For an estimate of your life insurance needs, check out this life insurance calculator.

Then contact American Insuring Group at (800) 947-1270 or (610) 775-3848. We're independent life insurance agents offering a variety of life insurance plans from many competing companies, so we're free to find you the best deal on the right life insurance protection to meet your specific needs. Contact us today.

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.

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.