What is Longevity Insurance?

Jeff Rose — Fri, 24 May 2013 17:06:15 +0000

These days, Americans are living longer than ever.

While this is generally a good thing, it’s real problem for retirement planning.

You’ll need to stretch your savings over a longer period of time which can be very hard to budget.

To make matters worse, very few workers have access to pensions or other plans that offer guaranteed payments for life. To make sure they don’t run out of money, many Americans are turning to longevity insurance.

What is Longevity Insurance?

Longevity insurance makes sure you always have some income during retirement. It’s insurance that protects you against you living too long and running out of money. To buy this insurance, you need to deposit one lump sum payment with an insurance company. Then, once you reach a certain age, you will start receiving monthly payments from your insurance for the rest of your life.

It doesn’t matter how long you live; you’ll keep receiving your monthly payments. If you die before reaching your payout age though, you won’t receive any money (unless you add a life insurance rider, which we’ll cover in a minute.)

One of the important features of longevity insurance is that it delays your payments until the future.

Before this product was launched, insurance companies only sold plans that started payments right away. By delaying payouts, you give more time for your money to grow so you’ll receive more later on.

How does Longevity Insurance Compare to Life Insurance?

While longevity insurance is sold by life insurance companies, it is actually quite a different plan. In fact, it has pretty well the opposite structure. With life insurance, you make a small payment to the insurance company each month. When you die, your heirs receive a large payout. With longevity insurance, you give the insurance company a large, one-time payment.

In exchange, you’ll receive many small payments sometime in the future. This is because longevity insurance isn’t life insurance; it’s a type of annuity, which is a long-term investment contract.

How Do I Set Up a Plan?

To set up longevity insurance, you need to transfer over a lump sum of money. Typically, investors transfer over money from a retirement plan like a 401(k) or IRA. You need to decide how much you want to put away for this long-term investment. To help you decide, the insurance company can give you an estimate of how much you’d receive per month in the future in exchange for your lump sum payment.

When you set up your plan, you’ll also have to decide on when you want to start receiving payments. When these plans first came out, you used to only be allowed to pick age 85 or later. Now, you can pick whatever age you want for payments. However, the earlier you start taking money, the less you’ll receive each month. Once again, your insurance agent will show you the difference.

Other Features

You can also customize your longevity insurance with a few other features. One decision is whether you want inflation protection or not. As time goes value, the purchasing power of the dollar goes down; $100 was worth a lot more 30 years ago than today. Inflation will also eat in to your monthly income from these policies. If you add inflation protection to your insurance, your payments will get bigger over time to match inflation. The trade off is that you’ll receive less per month at the beginning.

If you are worried about dying early and wasting your contribution, you can also add a life insurance rider to your policy. If you died before receiving payments, your heirs would receive a lump sum of money. In exchange, your future income payments will be lower.

What are the Advantages of Longevity Insurance?

The big advantage of longevity insurance is that it guarantees your income for life.

Very few investments do this. If you kept all your money in stocks or in the bank, you could try budgeting but ultimately there’s a chance you would run out of money. With longevity insurance, this wouldn’t happen.

In addition, you don’t have to worry about investing with these products. The insurance company is completely responsible for your rate of return. If the market does badly, the insurance company still needs to come up with your payments.

Longevity insurance also is good for taxes on your investment earnings. As long as your money is in the contract, you don’t pay taxes on your growth. You only need to pay income tax on your gains once you start taking out money.

What are the Disadvantages of Longevity Insurance?

Longevity insurance does have some problems. On average, these investments grow your savings by less per year than stocks or bonds. This is because insurance companies only will invest your money in very safe, guaranteed assets. You’ll potentially receive less money than if you invested yourself. Interest rates are also very low today so by buying into a contract, you’re locking in a low rate.

Another problem with longevity insurance is that you may not get any money. If you don’t live until your payment date, you won’t receive any income. Of course, you could add life insurance to your policy, but then you’d receive less income per month.

Suitability

Adding some longevity insurance to your retirement plan definitely makes sense, especially if you don’t have a pension. This way you know you’ll always have some money coming in no matter how long you live. It’s a good idea to put somewhere around 5 to 15 percent of your savings in one of these plans for long-term savings. Then, you can feel more comfortable investing the rest of your money because you know you’ll always have some guaranteed income in the future.

If you want to learn more about this important retirement product, feel free to ask us for help. Our representatives are experts in longevity insurance and can answer any questions you may have. For more information and free insurance quotes, call or email us today.

This article: What is Longevity Insurance? is written by Jeff Rose CFP on his blog about In order to be eligible for individual life insurance, the burden is on you to prove that you are healthy enough.

This analysis is performed by an insurance agency and is referred to in the industry as “medical underwriting”.

Multiple factors are considered during this process.

The end goal is determine your level of health so that the insurance agency can make an informed decision on whether or not they would like to accept the risk.

Underwriters who review eligibility for life insurance applications are predominantly concerned with life expectancy, as opposed to medical bills that may come in the future. For this reason life insurance can be obtained by people with Hepatitis C. The premium on these policies is obviously higher than on a standard insurance policy.

The name that is given to a policy of someone with Hepatitis C is referred to as a “rated” policy whereas ones labeled “impaired risk” or “standard” are not related to critical diseases. Seeking an agent with these credentials is advisable when trying to obtain insurance other than standard.

What Life Insurance Underwriter’s are Looking For

Underwriting for people with Hepatitis C comes down to a few key factors. The first consideration to take into account is whether or not the disease is in remission. Next it is important to determine how much damage, if any, has been done to the liver. Remission is the end goal for anyone suffering from Hepatitis, and reaching it goes a long way when trying to obtain insurance.

When a person is medically test for Hepatitis by insurance, the medical examiner is trying to determine at what level the liver is functioning. This however is no easy process and is painstakingly long. Generally, depending on the progression of the hepatitis, the treatment and testing will take two to five years. This is the basis for which most insurance companies even begin to consider extending a policy. On the other hand, if these levels of health are not concluded, insurance will either decline the policy or over them at a premium.

The additional factor that is considered is a liver biopsy. Biopsies are performed in order to get an in depth diagnosis of the condition of the liver. Liver damage is extremely costly to treat and leads to other health problems so it is important for insurance companies to consider. The good news is that if liver damage is minor or nonexistent, a person has a good chance of receiving a standard insurance policy. Most cases are reviewed by a medical director in order to make a case by case decision.

Other Factors of Getting Approved with Hepatitis

In addition to the medical testing, an underwriting considers several other factors. The younger the applicant is with Hepatitis C, the more strictly their records will be reviewed. Younger applicants are more likely to be denied coverage than older ones who have a medical history to review. Lifestyle is also considered in the underwriter’s analysis. Applicants with Hepatitis C who smoke or drink alcohol are almost always denied.

The time since diagnosis is also a factor that is looked at. Having a long history of medical information is what an underwriter needs in order to make a decision on the health of the applicant. If the diagnosis is relatively new, insurance agents will sometimes postpone the review of your file until they have more of a medical history to look at.

An acute case of hepatitis applies to someone who has an extensive history of treatment that would be considered successful to a medical examiner. This person must also be experiencing no symptoms of Hepatitis. These people may be able to acquire insurance on a Table 2 or higher rate. This means that the insurance rate would be 50% higher than the standard rate.

Having the help of an impaired risk specialist will help you in your chances of obtaining insurance at the lowest possible table. That’s where we can help.

Medical Questionnaire with Hepatitis

If you’re seeking life insurance coverage and currently have hepatitis, the following information is what we’ll need to know how to best approach getting you the most affordable term policy.

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1. Please provide date of diagnosis.

2. Has the hepatitis been diagnosed as:

a. Acute viral hepatitis A resolved.
b. Acute viral hepatitis B resolved.
c. Acute viral hepatitis C.
d. Hepatitis A unresolved.
e. Chronic, persistent hepatitis B unresolved.
f. Chronic, active hepatitis B unresolved.
g. Chronic, persistent hepatitis C.
h. Chronic, active hepatitis C.
i. Other hepatitis:

3. What are the most current liver enzyme levels?

4. Which studies have been undertaken to diagnose/treat the condition?

a. Liver ultrasound, CT scan or MRI.
b. Liver biopsy.
c. Other.
d. Studies recommended/pending.

5. Does the proposed insured use any medications such as alpha interferon or Ribavarin? If so, please list name of medication, dates used, quantity taken and frequency taken.

6. Does the proposed insured consume any alcohol? Yes or No.

7. How frequently does the physician monitor liver functions?

a. Quarterly.
b. Semiannually.
c. Annually.
d. Other.

8. If infected with hepatitis C, is the proposed insured vaccinated against hepatitis A or hepatitis B?

9. Please advise on any additional information that may help us provide you with a more accurate preliminary assessment.

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People with chronic Hepatitis C will obviously have a much more difficult time receiving insurance. It is sometimes a flat out denial before any testing is done if this information is known. There are rare cases where coverage will be offered if the applicant can show a history of successful treatment. A biopsy is usually needed if you suffer from chronic Hepatitis.

Getting the Coverage You Need

Regardless of how severe the case of Hepatitis is, it is worth effort and research to explore the options and know what is available to you. An independent agent is the best bet for doing so and will be able to speedily locate insurance that is the best for your particular case. It is advised to seek the help of an agent who is an impaired risk specialist. These people will know the details of your disease and be able to assist you in obtaining the best insurance for your needs.

This article: Life Insurance with Hepatitis is written by Jeff Rose CFP on his blog about Regardless of who you are, if you wish to receive a traditional life insurance policy, you must first get a physical exam.

The series of testing that a candidate can go through may be quite extensive depending on the insurance provider.

Unfortunately, extensive testing can be a drain on your time that is very valuable when it comes to insurance.

Every day that passes, is another day that you are not insured.

One way that all of this can be avoided though is by taking a no physical life insurance policy. These policies are great in that they require no physical exam. If time is of the essence and you need to be insured right away, this may be the best option. Another great benefit to this is if you believe a physical may uncover some new health problem that hasn’t previously been diagnosed.

This allows you to get insurance at a lower rate than if you were known to have a certain health condition. You can get up to $350,000 of life insurance coverage with most companies and sometimes much more without a physical exam. Knowing your options and whether or not a no physical policy is really the right fit for you is important in finding an insurance that meets your personal needs.

No Exam Policies Compared to Traditional Term

In most cases the policy is very similar to other term life policies. There is a beneficiary that is issued funds due to the death of an individual. These funds are based on the type of policy and any conditions associated with it. It is usually the case that the insurance will issue funds regardless of the cause of death. This might sound like basic common but some miss this obvious point: you must pass away for your heirs to collect on the policy. There is no cash build up like you would have in a whole life insurance or universal life policy.

Term life insurance allows multiple time periods for insurance. The only real key difference between a policy that requires a medical exam and one that does not is the cost.

With this being said, if you are confident that you can qualify under a traditional insurance plan, this is the best route to take. This is the case because of the fact that traditional premiums are far less costly than alternative insurance policies.

How Fast Do No Exam Policies Issue?

Regardless, there will still be a lag in time where you will not be insured while you are awaiting your physical results. This is the opportune time for a no physical insurance to fill the gap. When your physical does finally come back, you can cancel your no physical insurance. This is at no additional cost to you and ensures you are covered in the event of an accident.

We have several carriers that will issue a no exam policy in 4-5 days. Now that’s fast!

Advantages of No Exam Policies

Despite all of the obvious advantages of receiving coverage without a medical exam, there are always other factors to consider. Some of these factors may not be as important to an individual but it really all comes down to individual circumstances and preferences. The one major difference that has been mentioned is cost. When there is no medical exam to rely on, many factors such as age, length of term selected, etc are weighted more heavily. The guaranteed acceptance is what it all comes down to and ultimately is why the cost is so much higher.

With these types of insurance it is also very difficult to find the exact policy that will fit your needs. The options are more limited when you do not submit to a medical exam so getting full coverage is sometimes difficult. Finding help from an experienced insurance agent will help you navigate your way through the sometimes complicated maze of insurance.

It is usually advised to seek the guidance of an experienced agent who knows the ins and outs of the business. They can assist you in find the best policy for your specific needs without breaking the bank. Life insurance is important so it is never a good idea to take shortcuts or not do your research on different options that are available.

How Cheap is No Exam Insurance?

Here are some sample rates from some of the non-medical carriers that we work with. Are top carriers are Fidelity Life, Assurity, 1-Click and several more.

$250,000 30 Year Term Policy	30 Year Old	40 Year Old	50 Year Old
Fidelity Hybrid
Male	$24.58/mo	$37.19/mo	$92.00/mo
Female	$20.44/mo	$29.58/mo	$66.12/mo
Assurity Non-Med
Male	$34.76/mo	$70.84/mo	$170.06/mo
Female	$28.38/mo	$51.04/mo	$110.44/mo

The important thing to remember is that life insurance is something that provides peace of mind and protects your family in the event that something should happen to you. Keeping this fact in mind is a good motivation to find the very best policy available no matter how much time and effort it may take.

This article: Cheap No Exam Life Insurance is written by Jeff Rose CFP on his blog about If you are one of the many Americans who use a form of smokeless tobacco, whether is be dip, snuff, or anything in between, it is still possible to receive life insurance at affordable rates.

Despite extensive research showing that smokeless tobacco is far less harmful than cigarettes, many life insurance companies treat them as one in the same.

Because of this, many life insurance companies will charge at least double the rates of non-smoker rates because they view the health hazards to be just as serious as smoking.

It is for this reason that is extremely important to know all of your options in life insurance so that you do not end up paying any more than necessary.

Life Insurance Rates for Smokers

Many people would like to quit smoking but need coverage now. It is recommended to go ahead and take out a policy now and then after 12 months, with the help of an insurance agent, take advantage of the lower non-smoker premium. This can be done by either taking out a new policy or applying for a health class reconsideration with an existing insurance policy.

Paying the higher premium for twelve months not only will give you the motivation to quit smoking but it will ensure that you are thoroughly covered. Skimping or putting off insurance is never advisable as it can lead to financial disaster that can rarely ever be recovered from in the event of misfortune.

What are the Best Life Insurance Companies for Tobacco Users?

If you would like to stick with one of the well known insurance companies and use tobacco products, there are still options available. There are 30 year policies available that lock you into lower rates for the term of the policy. Other options are permanent insurance including whole life insurance and universal life insurance. It is important to beware that combining non-smoking insurance with other insurance such as diabetes or heart disease can rule out any benefit or savings that might have come with just being insured under one of these special cases.

Life Insurance for People that Chew Tobacco

This isn’t the case with all life insurance companies though. Some differentiate between the types of tobacco and consider smokeless tobacco to be less detrimental on one’s health than smoking tobacco. Knowing your options and doing your research can save you at least 50% on life insurance premiums if you are a user of smokeless tobacco products. Over the life of your insurance term, this can be substantial money.

In order to qualify for this you do not need to test negative in a nicotine test as is the case in many life insurance policies. As it is always the case with life insurance policies, your premium will be based on your unique situation. If you are searching for life insurance and are a user of chewing tobacco, it is best to operate through an independent life insurance agent who is knowledgeable on policies and different insurance companies.

Why You Need an Independent Agent

Working through an independent insurance agent is advisable as it is the case that everyone’s personal situation is different and there is no “one size fits all” when it comes to insurance. Trying to cheat the system by lying on the application or otherwise committing fraud is never advisable. Even if you end up saving money in the short term, the consequences can be huge. This is especially true since there is a two year period of time following the death of the insured where the insurance company can research the truth about a person’s medical history.

Client Example: A 40 year-old male looking to obtain $250,000 of term life insurance at preferred best health. The best non-tobacco policy he can get is $145 a year. If you are a tobacco chewer, you would not qualify for this super cheap rate, but it may be possible to get at $265 per year. Still might seem high but if you compare that to rates for life insurance for smokers at your looking at around $450 a year.

Speaking with a qualified agent is the best bet when purchasing any type of insurance no matter what your current medical status is. Not only will they be able to advise on your specific case, but they can assist in finding you the cheapest possible rate that ensures you will be fully covered in the event of death.

This is more valuable than any insurance policy as it gives you the peace of mind knowing that your family and loved ones will be provided for. The world of insurance is a complicated one, and should not be left to an Internet search in order to determine which is best for you.

This article: Life Insurance for Chewing Tobacco Users is written by Jeff Rose CFP on his blog about Insurance companies are always trying to develop new insurance products to meet their clients’ needs.

One new product they’ve recently developed is indexed universal life insurance.

These policies are interesting because they allow you to use your life insurance funds to invest in the stock market.

Is this policy a good fit for you?

Let’s take a look…..

What is Indexed Universal Life Insurance?

Indexed universal life insurance is a combination of other types of life insurance. First off it is a type of permanent life insurance. This means that it’s a policy that’s meant to last your entire life; it doesn’t eventually expire like term insurance. Indexed universal life also builds up cash value, which is money you can take out and spend while you are alive.

Since indexed universal life insurance is a type of universal policy, the amount you need to pay each month isn’t fixed.

You get to decide how much you can pay each month, usually with a minimum requirement. However, if you don’t pay enough into your policy, it could run eventually run out of money and expire.

How do the Stock Investments Work?

What is unique about indexed universal life insurance is that it invests your cash value in the stock market, using a market index like the S&P 500. This means your cash value growth is based on how well the stock market performs. If the market goes up, you can earn more money with these plans. However, if the market goes down, you won’t earn anything.

The good thing about these policies is that they can’t lose money.

If the stock market crashes, your cash value won’t go down; it just won’t grow that year.

How Does Indexed Universal Life Insurance Compare to Other Policies?

Since indexed universal life insurance is a permanent policy, it is much more expensive than term insurance. You’d likely pay about ten times as much per month for the same death benefit. If you are looking for life insurance at the lowest possible cost and don’t mind that it expires, term is a better choice. If you want to permanent coverage or want to combine your life insurance with an investment plan, indexed universal life insurance could be a better choice.

Compared to whole life and universal life, indexed universal life insurance costs about the same per month. The main difference is how these accounts manage your cash value.

Whole life has a guaranteed, annual return so you know exactly how much this account earns. Universal life earns an interest rate that can change depending on the market interest rate. This goes up and down, but at least you earn something each year.

Indexed universal life has the most variation since your return is based on the stock market. When the market is good, you’ll earn the most money with these policies. When the market is bad though, you won’t earn any money with these policies.

What are the Advantages of Indexed Universal Life Insurance?

Indexed universal life insurance works best as a combination of your retirement plan and life insurance. As a stock investment, these plans can’t lose money which can be very appealing to some investors. This gives you a way to put money in the market without the worry of dealing with market losses.

In addition, indexed universal life policies can offer tax-free growth on your investment gains. As long as you keep your cash value in the life insurance, you don’t need to pay taxes on your stock income. If you take money out as a loan, you also don’t have to pay taxes on your investment gains. This means you can invest with this account and never have to pay taxes on your stocks.

Lastly, these policies give permanent insurance coverage so you never have to worry about your policy expiring; provided you make your monthly premium payments.

What are the Disadvantages of Indexed Universal Life Insurance?

The problem with indexed universal life insurance policies is that they can be a bit expensive. Between paying for the insurance coverage, administration expenses, and insurance agent commissions, it could take off about 2-3% of the return you would have gotten by just investing in the stock market.

Some policies also cap your gains. This is the trade off for not having investment losses. You lose less when the market is bad, but earn less when the market is good.

The other problem with indexed universal life insurance is that to buy a policy, you need to meet an insurance company’s minimum health standards. If your health is poor, your policy will be more expensive and some people can’t qualify at all.

Suitability

These policies work best if you need permanent life insurance and want to invest your cash value in the stock market. These policies don’t tend to earn as much as a regular brokerage account so they aren’t as attractive as a pure investment. However, the fact that you can’t lose money with indexed universal life is attractive for investors that don’t like risk. If you can’t stand losing money and don’t mind a lower total return, these policies could also be appropriate.

Our company specializes in the market for indexed universal life insurance. We help our clients learn more about these products and also find the best companies for their policies. To learn more about this product and get free rate quotes, call us or fill out our online application form.

This article: Indexed Universal Life Insurance, Good or Bad Investment? is written by Jeff Rose CFP on his blog about After a major life event like bypass surgery, it’s understandable that you’d be in a hurry to buy life insurance as soon as possible. This is often a mistake. Life insurance companies will see your past surgery and this could prevent you from receiving a policy.

To qualify for insurance after a bypass, you need to plan right and fill out a good application. To get you ready, here is a review of the insurance guidelines for after bypass surgery as well as some tips to help you with your application.

Life Insurance Underwriting after Bypass Surgery

When you apply for life insurance, you’ll need to answer several questions about your bypass surgery for your application. You’ll need to answer:

What did you have your bypass surgery?
Why did you need to have bypass surgery? Was it an elective or emergency procedure?
Have you ever had any other types of heart surgeries like a heart valve replacement?
Where there any complications after the surgery like internal bleeding, cardiac tamponade, or a stroke?
Do you have any other high risk factors for heart disease like smoking, high cholesterol, or high blood pressure?
Do you have a history of heart disease?
What medications are you taking because of the bypass surgery?

Common medications for after a stroke include: Clopidogrel, Beta blockers, Nitrates, ACE inhibitors, and Lipids. All of these medications for a stroke could be insurable depending on your health after the surgery.

Be sure to answer all these questions in detail for your application. For life insurance underwriting, more information is better. If an underwriter felt your application was incomplete, especially after something major like bypass surgery, there’s a good chance you’d get a poor rating or a denial.

Life Insurance Quotes after Bypass Surgery

If you’ve had bypass surgery, it’s very important to delay your life insurance application for some time after your surgery. This is because life insurance companies typically deny applicants that just had bypass surgery; there are too many complications that can come up. It’s best to wait at least 6 months to a year before applying.

When you apply, insurance companies will review the details of your bypass surgery as well as your overall health to make a decision. Your rating would depend on how well the surgery went as well as whether you are taking steps to avoid future heart problems. While each insurance company uses slightly different underwriting standards, here are some general guidelines to help you estimate what rating you’ll get for your life insurance.

Preferred Plus: It’s not possible to get a preferred plus rating after bypass surgery, even if you are healthy and the procedure went well. There is just too high a chance of future heart problems for insurance companies to be willing to give the best rating.
Preferred: Also usually impossible for applicants that have had bypass surgery. In very rare cases, someone that had an elective bypass and was otherwise in perfect health might qualify for a preferred rating, but this is not something you should expect.
Standard: The best possible rating for most applicants after a bypass surgery. Applicants need to have waited at least a year after the surgery and be in perfect health otherwise. The bypass surgery also must have been a minor procedure, like elective surgery to get around a blockage early.
Table Rating (substandard): A table rating is the most likely rating for applicants that have had bypass surgery. Applicants should have waited at least 6 months after their surgery to qualify. Rating will depend on the severity of the bypass surgery, whether there were any complications, whether the applicant had other procedures like a heart valve replacement, and the applicant’s general health and family history.
Declines: Applicants that apply within 6 months of their bypass surgery. Also, applicants that aren’t regularly seeing their doctor, have a history of serious heart problems, and/or have heart risk factors like smoking or high cholesterol could also be denied.

Bypass Surgery Case Studies

If you’ve had bypass surgery, it’s very important that you plan your application right. Here are a couple real life examples that show the difference your application can make.

Case Study: Female, 63 y/o, non-smoker, had bypass surgery for a small blockage at 61, tried applying right away and was denied, otherwise in good health.

This client has a small valve blockage a few years ago that she decided to have removed through elective bypass surgery. Immediately after the procedure, she tried to buy more life insurance. Since she didn’t give anytime between her procedure and her application, the insurance company denied her application. At this point, the client thought she couldn’t get coverage. After contacting us, we recommended she try again. Since she had waited the appropriate amount of time, she qualified for a standard policy this time around.

Case Study #2: Male, 57 y/o, needed bypass surgery at 54, former smoker, recently lost weight and reduced cholesterol levels, taking lipids for cholesterol.

This applicant had an unhealthy lifestyle. He smoked, had a poor diet, and didn’t exercise. This lifestyle eventually forced him to have bypass surgery. After the surgery, this client started living a much healthier life. He also started taking lipids for his cholesterol, as this was a big part of why he had heart problems.

Despite these improvements, this applicant still had trouble getting life insurance. We believed this was because insurance companies were too focused on his past history. We recommended this applicant meet with his doctor and get a note vouching for his improved health. By reapplying with this note, the applicant got a Table Level 2 Policy, a decent rating for someone in his condition.

Getting life insurance after bypass surgery is a challenge, but it’s a challenge many people can overcome. To get the best chance of qualifying, it helps to prepare with a professional. Our company specializes in finding life insurance for people that have had bypass surgery.

We can help you put together your application plus match you with the best companies for your situation. Call today or fill out or online application form for more information and free rate quotes.

This article: Life Insurance After Heart Bypass Surgery is written by Jeff Rose CFP on his blog about If you have Chronic Obstructive Pulmonary Disease, it’s going to be a problem for buying life insurance.

Don’t get discouraged though because many people with COPD are still able to get coverage.

Whether you can qualify and at what price depends on the severity of your condition and your overall health. To give you an idea about what to expect when you apply, we’ve put together an explanation of insurance guidelines for COPD along with some strategies that you can use for your application.

Life Insurance Underwriting for COPD

When you apply for life insurance, your insurance agent will ask you several questions about your COPD for your application. Expect to answer:

When were you diagnosed with COPD?
Did you ever have to go to the hospital for your COPD? If so, what treatment did you receive?
Do you have any other lung issues like asthma or bronchitis?
Have you had any recent diagnostic tests like a chest X-ray or Pulmonary Function Test (PFT) to check the condition of your lungs?
Do you smoke now? Did you smoke in the past?
What medications are you taking for your disease?

Common medications for COPD include: Bronchodilators, inhaled and oral steroids, Theophylline, and antibiotics. All of these medications could be insurable depending on the severity of your COPD.

Make sure to include as much information as possible about your COPD on your application. If life insurance underwriters feel like your application is missing information or doesn’t clearly explain your condition, there’s a good chance your policy will be rejected or receive a bad rating.

Life Insurance Quotes with COPD

When you have COPD, life insurance companies will want to know the severity of your condition. Typically, they do this by giving you a PFT to test your FEV1% (Forced Expiratory Volume per second). A healthy person has a FEV1% between 80 and 120% whereas someone with COPD is below 80%. The further below 80% you are, the more severe your COPD is.

They will also consider your overall health and will be especially concerned about whether you smoke, considering this is a lung disease. While every insurance company has slightly different standards, here are general underwriting guidelines for COPD to give you an idea about what rating to expect.

Preferred Plus: Impossible for someone with COPD. The health impact of this disease plus its risk of future lung problems is just too great.
Preferred: Also generally impossible for someone with COPD. This disease is just too serious, especially since it’s a chronic condition.
Standard: Best possible rating for someone with mild COPD, so an FEV1% very close to 80%. This is someone that only has a mild, chronic cough and only has minor shortages of breath after exercise. Applicant should also not be smoking and have no other health issues.
Table Rating (substandard): Most applicants with COPD. Your table rating depends on the severity of COPD, whether you have any other lung complications, how often you need to use inhalers and other treatments for your COPD, and on whether you have any other health problems.
Declines: Applicants with extremely severe COPD, usually a FEV1% below 40%. In addition, applicants that continue to smoke could also be rejected as this increases the chance of more problems. Lastly, applicants with other serious health problems like heart disease on top of their COPD.

COPD Insurance Case Studies

When you have COPD, your odds of a fair life insurance rate go up significantly with a smart application. Here are a few real life case studies that show the difference your application can make.

Case Study: Male, 57 y/o, diagnosed with COPD at 54, former smoker but quit after diagnosis, using an inhaler occasionally

This applicant used to be a fairly heavy smoker and this caused his COPD. After his diagnosis, the applicant tried to buy life insurance right away and was denied because tobacco still showed up in his blood stream. The applicant decided to quit smoking immediately after

We recommended this applicant take another PFT to see whether quitting smoking made an impact. His COPD appeared less severe than when he first appeared so we recommended he reapply with his new PFT results. Since it had been several years since he last smoked, the applicant did not test positive for smoking this time around. As a result, he received substandard level-2 policy. This was more expensive than a regular policy but not a bad rating for someone with COPD.

Case Study #2: Female, 50 y/o, former smoker, diagnosed with COPD at 47, very mild case, applicant otherwise in perfect health

Besides smoking, this applicant was in perfect health. However, her smoking led to a mild case of COPD which scared her into quitting right away. When she applied for insurance, she would only qualify for rated polices. We thought she could do better.

We recommended she see her doctor for a full checkup and to ask for a letter vouching for her good health. She asked that the doctor also mention that her smoking had not caused any other health problems and she looked in good shape now that she quit. With this extra information, she was able to qualify for a standard rating.

Getting life insurance with COPD can get challenging, but it’s very doable. For the best chance of success, it helps to work with someone that understands this market like our company. We specialize in finding life insurance for people with COPD.

We can help you with your application and match you up with the best insurance companies for your situation. Call or fill out our online application form for more information and free insurance rate quotes.

This article: Life Insurance with COPD (Chronic Obstructive Pulmonary Disease) is written by Jeff Rose CFP on his blog about Life insurance is a more flexible product than most people think. On the market today, there is a variety of insurance policy designs that match up to very different needs. All types of life insurance have the same basic setup; you pay monthly premiums and if you die, your heirs receive a death benefit.

However, they are quite different in terms of how long they last, how much they cost, and whether they provide other benefits on top of the death benefit. Here is a complete comparison of the main types of life insurance so you can choose the best fit for your situation.

Term Life Insurance

Term life insurance is temporary life insurance coverage. When you buy a term policy, it will have a set expiration date sometime in the future. For example, it is common to see policies that last 5, 10, or 20 years. If you die during this time, your heirs receive the policy death benefit. If you outlive your policy’s term, the contract expires and you lose your insurance coverage.

Term policies are typically the least expensive type of life insurance. Since most policies expire without paying a death benefit, insurance companies can sell these at a low price. Term insurance also only offers a death benefit; these policies don’t come with any living benefits like cash value.

Since term coverage eventually expires, these policies are best for short-term needs that won’t last your entire life. For example, a good use of term insurance would be to cover a mortgage. Eventually, you’ll pay off your home so you wouldn’t need insurance anymore.

Whole Life Insurance

As you can guess from the name, whole life insurance is designed to last your entire life. These policies do not have a set expiration date. As long as you pay your monthly insurance premium on time, you’ll keep your coverage.

These policies also commonly offer something called cash value. This is money that builds up in your policy that you can withdraw and spend while you are alive. It’s kind of like combining an investment account with your life insurance. Your monthly insurance payments build up a pool of money that the insurance company will invest and pay interest on. Whole life insurance policies offer a guaranteed rate of return so they are a very safe investment.

The downside of whole life insurance is that it is very expensive compared to term insurance. For the same amount of coverage, a whole life policy costs ten times or more per month than a term policy.

Universal Life Insurance

Universal life insurance is a mix between term and whole life insurance. With universal life, you get to choose how much money you want to pay per month for your coverage. Part of the money will go towards paying for your life insurance, basically a term policy, and the rest of the money builds cash value. The insurance company pays monthly interest to grow the cash value.

Unlike whole life, universal policies pay a variable interest rate. This means that the interest rate can change over time and isn’t guaranteed. Some years a universal policy will earn more than a whole life policy, and some years it won’t

The idea behind universal life insurance is that you overpay for your insurance when you are younger to build up a cash reserve. When you get older and insurance becomes more expensive, the cash value will make up the difference for the extra costs.

Done right, a universal life policy gives permanent insurance coverage for less money than a whole life policy. However, you need to be careful with these policies. If you don’t pay enough at the beginning, you might run out of cash value and won’t be able to afford payments later on, causing your coverage to lapse.

Guaranteed Universal Life Insurance

You can buy something called a guaranteed rider on universal life insurance. With this extra feature, the insurance company guarantees your coverage, provided you make at least a minimum monthly payment. If insurance costs go up too quickly or your cash value doesn’t grow as much as expected, it won’t matter for you. You can guarantee your policy to a certain age or for your entire life. The longer the guarantee you want though, the more your policy will cost.

Variable Life Insurance

One last type of life insurance is variable life insurance. This is another type of permanent policy that builds up cash value. The unique feature of variable life is that these policies let you invest your cash value yourself like a regular brokerage account. You’ll be able to choose between a variety of stocks, bonds, mutual funds, and money market funds for your account savings. If your investments do well, a variable policy can earn more cash value than other types of life insurance. However, if your investments don’t do well, your cash value won’t grow by much; you take on the investment risk with these plans.

If you have any more questions or want to learn more about these different products, feel free to contact us. Our staff representatives are experts in the different types of life insurance. Call now for a free consultation and to get life insurance quotes.

This article: Types of Life Insurance Products is written by Jeff Rose CFP on his blog about As you get older, your life insurance situation will change.

The plan that worked when you were in your thirties won’t work now that you are over 50 years old.

To help you get prepared for the future, we’ve put together an extensive guide of the life insurance points that someone over 50 years old should consider.

Life Insurance Needs

Your life has likely changed quite a bit over the past few years. Your life insurance needs to keep up. Younger applicants typically buy life insurance to protect their young children and to provide money to pay off a mortgage. If you are over fifty years old, these concerns are likely less of an issue. If you have children, they are getting closer being self-sufficient and your home is closer to being paid off than it was before.

This means that you might be able to scale back some of your death benefit because you need less coverage. It’s also a good time to consider any other life insurance goals you might have.

Do you want to use life insurance to pay off your final expenses?
Do you want to leave an inheritance?

This is the right time to ask these questions so you can figure out how much coverage you want for the future.

Considering Different Types of Policies

When you are over fifty and want to buy life insurance, you need to closely consider what type of life insurance to buy. The two mains types of life insurance are term and permanent. Term insurance only lasts for a set amount of time. For example, a 20-year policy expires after twenty years. Term insurance is also the least expensive life insurance.

Permanent insurance is designed to last for your entire life. As long as you keep making your insurance payments, these policies never expire. Permanent insurance is also much more expensive than term insurance.

You should use term insurance for short-term needs and permanent insurance for needs that will never go away. For example, if you want to keep your insurance while you’re working but won’t need it in retirement, term is a better choice. If you want a policy to pay for your final expenses or to leave an inheritance to your heirs, go with permanent. Using term insurance for these needs is inappropriate because there’s a chance your coverage will expire meaning you won’t leave anything behind.

Here are a few examples of what a $250,000 term life insurance policy would cost.

$250,000 Term Policy	10 Year Term	20 Year Term	30 Year Term
Male	SBLI $24.36/mo	SBLI $43.28/mo	SBLI $69.17/mo
Female	Protective $21.12/mo	SBLI $32.41/mo	SBLI $50.68/mo

Health Exams

To buy a life insurance policy, you need to meet a life insurance company’s minimum health standards. Life insurance companies will look at your past health records and could ask you to see a doctor and take several health exams. Life insurance health standards tend to get stricter as people get older. An applicant in his 20s might just need to see a nurse while someone over 50 might have to go through a full physical exam plus take a medical test like an EKG.

If you’ve had any health problems in the past, your life insurance agent should closely look into that. Expect to answer a number of additional questions about your past medical condition. Life insurance health standards only get more difficult as you get older so the sooner you can figure out your coverage, the better.

No Medical Life Insurance

If you don’t think you can qualify for a regular life insurance policy, you still have options. Many companies offer no-medical life insurance policies. These are especially popular for applicants over 50 years old as more people in this age group have a history of medical problems. To qualify for these policies, you just need to answer a few health questions. Some policies don’t even require that.

In exchange for not requiring a medical exam, these policies charge more per month than regular life insurance. In addition, these policies also limit what they’ll pay for the first few years. If you don’t survive a minimum number of years after buying one of these policies, your heirs will only receive a fraction of your death benefit. However, if you can’t qualify for any other coverage, no medical policies are the place to look.

To learn more life insurance for people over 50, you can contact one of our representatives. Our representatives work closely with this age group so we can answer all your questions. In addition, we know this market well and help clients find the best life insurance rates for their situation. Call or email us today for more information and to get free rate quotes.

This article: Life Insurance Over 50 Years Old is written by Jeff Rose CFP on his blog about If you have a heart murmur, it’s going to be an issue when you apply for life insurance.

Insurance companies are going to be worried your heart murmur is a sign of more serious health problems. Your insurance outcome really depends on the specifics of your condition.

While you can’t change your health status, you can control how you fill out your application. A well planned application can minimize the impact of your heart murmur on your rating.

In this article, we’re going to examine the underwriting standards for someone with a heart murmur so you’ll know what to expect going forward.

Life Insurance Underwriting with a Heart Murmur

When you meet with your life insurance agent, he should ask you a number of questions about your heart murmur. You should expect to answer:

When were you diagnosed with a heart murmur?
What is the cause of your heart murmur?
Have you had any surgeries in the past to treat your heart murmur?
Do you have any other issues with your heart like coronary artery disease or ventricular hypertrophy?
Have you had any diagnostic tests in the past 6 months to measure the condition of your heart?
General heart health questions like what is your cholesterol level, blood pressure, family history of heart disease, and do you smoke?
Are you taking any medications because of your heart murmur?

Common medications for a heart murmur include: Digoxin, anticoagulants, diuretics, statins, ACE inhibitors, and beta blockers. All of these medications could be insurable depending on the condition of your heart murmur.

As you apply, be sure to include as much information as possible about your heart murmur. An incomplete description of your condition could worry life insurance underwriters and make them more likely to give you a poor insurance rating.

Life Insurance Quotes with a Heart Murmur

When you apply for life insurance with a heart murmur, your rating comes down to the cause of your condition. Functional/innocent heart murmurs like physiologic, cardio-respiratory, and aortic sclerosis heart murmurs won’t hurt your rating too badly provided you don’t have any other heart issues. Organic heart murmurs that came from actual heart problems are a more serious issue.

No matter what is causing your heart murmur, your odds of getting a fair rating go up if you are otherwise in good health, are at a healthy weight, and don’t smoke. While every company has a different underwriting process, here are some general guidelines to give you an idea what rating to expect.

Preferred Plus: Possible in very cases for applicants with functional heart murmurs. Applicant must otherwise be in perfect health and had a recent diagnostic test that showed the heart murmur was not from any health problem.
Preferred: A more likely rating for very healthy applicants with only functional heart murmurs. Life insurance companies are reluctant to give the best possible rating to anyone with a sign of a health problem like a heart murmur.
Standard: Best possible rating for most applicants with a functional heart murmur. Applicants shouldn’t have any heart problems and must be in reasonable health otherwise. Possible in rare cases for applicants with organic heart murmurs, provided their heart condition has been under control for several years.
Table Rating (substandard): Most applicants with organic heart murmurs. The rating depends on the severity of a person’s heart issue that is causing the heart murmur. Underwriters also consider whether the applicant needed surgery, has any other heart problems, the applicant’s general health, and family history of heart disease. Unhealthy applicants with a functional heart murmur could also get a rated policy.
Declines: Applicants with organic heart murmurs caused by serious heart conditions. Also, applicants that applied within a year or two of a heart surgery, have a family history of heart disease, or have other high risk factors like high blood pressure or smoking.

Heart Murmur Life Insurance Case Studies

If you have a heart murmur, you need to plan your application properly. A good application can make a significant difference. Here are a couple real life case studies that demonstrate why your application matters:

Case Study: Male, 42 y/o, non-smoker, functional heart murmur, no other heart issues, in very good health

Besides his health murmur, this applicant was in perfect health. His heart murmur was a physiologic murmur and didn’t have any impact on his overall health. However, when he applied for life insurance, he only received a standard rating; not bad but we thought he could do better. We recommended this applicant go for an EKG as he had not had one in several years. This test showed his heart was in great shape and he submitted this result with a new application. With this extra information, the applicant was able to receive a discounted preferred policy.

Case Study #2: Female, 56 y/o, organic heart murmur due to mild aortic stenosis, taking statins and Ace Inhibitors, lost weight and quit smoking after heart murmur diagnosis

Before discovering her heart murmur, this applicant had poor health habits. She was overweight and smoked. At 50, she discovered she had a heart murmur due to mild aortic stenosis. This scared her into taking measures to improve her health. She quit smoking, lost weight, and started taking medication to reduce her cholesterol and high blood pressure. When she applied for life insurance though, she only received very expensive, rated policies. We thought that insurance companies weren’t giving enough credit to her recent life improvements. We recommended she see her doctor and ask for a note vouching for her improved lifestyle. By reapplying with this letter, the applicant received a substandard level-2 policy, a decent rating for someone with her past health problems.

Don’t let your heart murmur get in the way of insurance coverage.

With a smart application, you have a great chance of finding a policy. To improve your odds, it helps to work with a broker that understands this health condition.

Our company knows this market well and can help you both with your application and with finding the right insurance company for your needs. Call us or fill out our online application form for free information and rate quotes.

This article: Life Insurance with Heart Murmur is written by Jeff Rose CFP on his blog about

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Don’t let your heart murmur get in the way of insurance coverage.