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It's a pretty straight forward question...are you paying too much for your existing life insurance? The answer is maybe and you can quickly find out by using our instant term life insurance quote engine but there are a few considerations to look at. Let's see what's involved in answering the question, "Are you paying too much?"
Comparing your current whole life policy
If you have a current whole life policy, you are likely paying quite a lot. Whole life can be 10 times what term costs for an equivalent amount of life insurance...especially if it's an older policy. Our theory is simple...take the 90% difference in cost and either invest, buy more term life insurance, or ideally...a combination of both. Check with your whole life policy to see if you can pay premium with cash value (your cash in the form of extra premium by the way) interest/investment gain to free up money for the less expensive term premium. We would be happy to analyze your situation and help you determine if you are paying too much.
Older term life insurance policies
The drop in term life costs has been amazing. We're not saying this as some kind of sales hype. It really has fallen significantly and quickly. The term life market is just extremely competitive and this type of coverage really has become a commodity. Another contributing factor is life expectancy. If you think of the many health conditions and diseases that were once death sentences just 1-2 decades ago...it's obvious that the risk has changed from one of mortality (life insurance) to one of morbidity (health insurance). Have you noticed the direction of health insurance premiums over the past 10 years? There's no downside to comparing the rates for your older policy through instant quoting engine with what's currently on the market.
Original health class
You may be paying more due to an original (and riskier) health class designation. This could be due to health issues at the time of enrollment and/or the fact that a particular carrier was more strict at that time for your given situation. Along with a reduction in premium, over the last few decades, there's been a general loosening and adjustment in term life insurance underwriting eligibility requirements. It definitely makes sense to run a quick term life insurance quote to see if you can take advantage of these two trends. We have seen clients who have been paying significantly more for term life for years only to kick themselves when they re-quote later on. It's never too late to save money so we advise to at least run the quote and see where the market stands.
Make sure to never cancel existing life insurance coverage you until you received written confirmation of approval from the carrier with satisfactory rates and terms. It's best to discuss your situation with a licensed professional life insurance broker like us.
With all of our current medical technology and change toward healthier lifestyles, surviving until your golden years is more common. As you have worked a substantial part of your life building your family’s fortune, it is a good idea to put together an estate for yourself. Estates ensure that the distribution of your assets are properly handled and allocated according to your wishes. Whether your estate is of modest worth or whether it is in the millions, it is always a wise thing to consider putting an estate plan in place. Part of your estate planning should include a term life insurance policy.
While most term life insurance premiums are based on age, companies do sell what is called term life insurance to 100. Typically, you purchase this policy between the ages of 71-80. The premiums for term life insurance to 100 remain constant from the purchase date until you reach the age of 100. The premiums stop at age 100 but your coverage continues until your death, even if you live to be 125! Term life to 100 basically covers you for life.
Why Buy Term Life Insurance to 100?
Usually, people who reach age 70 have outlived the use of a basic term life insurance policy. If you have children, they are old enough to take care of themselves financially and your spouse would presumably have no need for the death benefit as your financial wealth has already been built.
Truly, then, buying term life insurance to 100 at age 70 would be solely to gift your family even further by making sure that any inheritance you leave to your relatives remains intact. The death benefit allots extra monies to help offset any taxes your heirs would have to pay on their inheritance. To learn more about term life insurance visit .
Additionally, death benefits for term life insurance to 100 are paid tax-free. You will not only ensure that capital gains taxes are taken care of but also your funeral expenses and any miscellaneous fees associated with the estate and your death.
Last, should you outlive all of your heirs; term life insurance to 100 is also perfect for leaving a bequest to your favorite charity. You may purchase face value amounts of $10,000.00 to $1,500,000.00. If you choose to donate your death benefit to a charity, make sure to visit the charity to fill out all the appropriate forms. For more information on giving term life insurance as a charitable gift visit .
As always, it is best to seek the advice of a reputable financial advisor to help you choose the best term life insurance company as well as type of term life insurance to 100 policy to suit your needs. Buying coverage for life will allow you the flexibility to gift your heirs or charities in many different ways.