One of the most heart wrenching conversation that a financial professional will have is one with an elderly widow whose husband recently died. The lady will admit that her husband took care of all the financial matters. She does not know what to do now that he is gone. It’s terrible but this is also a reminder that a woman should not rely on somebody else to take care of her finances. She must be in control and needs to make decisions that will affect her life and the lifestyle she wants to have.
Financial planning has many features and stability is a primary objective. Life insurance is part of the financial wellness equation. It is coverage that a woman can use to protect her loved ones from heavy expenses.
It Is Not Just the Estate
Life insurance is ordinarily part of an estate but there are other reasons for taking out a policy. College loan debt is a major issue for many young people. They ask their parents to cosign for a college loan, which Mom and Dad will ordinarily do without question. Tragedy strikes when least expected and the daughter dies in a traffic accident or due to a medical condition. Parents are left with sizable loans that they must pay off because they cosigned for it. The daughter who takes out a term insurance policy equal to the size of the college debt is doing her parents a great service. There are other circumstances where a term life insurance policy can spare parents or other survivors an expense that can take a sizable out of the estate.
A single mother is the sole support for children. Unexpected death leaves those youngsters in a vulnerable financial situation. Term life insurance can pay for education such as college, cover a mortgage, and provide the children with the financial security they had with their mom.
Covering debt and providing for survivors is an important part of any financial planning. Term life insurance is ideal with those types of situations because a woman can buy a sizable amount of term insurance coverage at a low premium.
A woman who is a stay-at-home mom might wonder why even bother with term life insurance. After all, she is not the primary wage earner in the family. Being a housewife, however, does not mean death does not have an impact on the financial wellness of the family.
The loss of a mother can mean that the household must pay for childcare. There are other benefits that are taken for granted, but these all can turn into expenses if the stay-at-home mother passes away. Regardless of what cynics may say, a stay-at-home mother is important.
Life Insurance Is a Bargain
Some women are concerned about buying term life insurance because they are afraid that their gender will equate to higher rates. That is not true at all. In fact, women will pay less in premium the same amount of insurance than men of the same age.
It is all about life expectancy. Life insurance companies will obviously charge less because the insured will be paying premiums for a longer period. Women have longer life expectancies than men in our society. This is not because men are crazy risktakers or exceptionally violent. Men are prone to health conditions such as cardiovascular issues. High blood pressure, hypertension, and diabetes are prevalent particularly in older men. Women do suffer from the same conditions but not at the same rates.
A healthy lifestyle impacts on the premium rates. If you quit smoking six months before you start looking for insurance, you may be pleasantly surprised with the fantastically low rates you will receive because you are now a non-smoker. The same is true if you make changes in your diet and exercise regularly. When a person is doing is reducing the risk for a life insurance company by following a healthy regimen. Life insurance companies reward the healthy.
How Are Premiums Determined?
That is an excellent question. There are several factors that go into determining how much a person is going to pay for coverage. We have already discussed physical health and smoking. There are a few other things that will impact the cost.
- Mental Health. High levels of depression or bipolar disorder can create higher premiums.
- Age. It is always better to buy term life insurance when you are young. Age brings with it health conditions that make a buyer more of a risk.
- High-Risk Hobbies. You might like rock climbing or extreme sports, but life insurance companies hate those things. The chances for a life-threatening accident are high and that means that the premium you are going to pay will be correspondingly high (hobbies like swimming or jogging are nowhere near as risky).
- Pregnancy is not going to cause a rise in premium rates if it is a healthy condition. Complications might result in higher premiums, depending on the insurance company.
Doing the Buying
Insurance companies will use television and social media to promote their policies. The message makes it all seem amazingly easy and convenient, especially if online purchasing is allowed. All you must do is fill out the application or press the submit button on your keyboard and you have coverage, right?
We strongly urge anyone who is shopping for insurance to be careful. The advertising will only discuss the good things of the policy and will not say anything about problems. You can easily rush into the wrong type of coverage.
The underwriting guidelines will dictate coverage and premium of life insurance policy. Many people do not understand underwriting and ignore this important part of an insurance product. The health questionnaire you are required to fill out might disqualify you because of a health condition you may have.
Not all insurance companies will prohibit a person was unhealthy from getting coverage, but you can expect the premiums are going to be high. There is insurance that does not require a medical examination and many term insurance policies have a guaranteed acceptance. Again, anticipate that you are going paying a higher than ordinary premium.
Terms are often 30 years or more but not always. There are insurance companies that limit the years of coverage based on the person’s age. For example, term insurance policies ordinarily end when a person reaches 90 years of age but there are products that will become nonexistent when a person celebrates his or her 80th birthday. What happens then is that a person may have to purchase a whole life insurance policy to replace the expired coverage. This is good coverage, but it is expensive and the older you are the higher the premium goes.
There are many insurance companies that offer term life insurance. Some stand out as particularly advantageous to women. AIG is one and State Farm insurance is another (N.B. We are not trying to endorse either insurance company over others. What we have said is based on the reputation both companies have achieved in the industry.). A tip about buying any insurance is the when you bundle a book of business with the insurance company you will be able to get lower premiums.
Bundling is an insurance term that means the insured takes out several policies with the same company. A consumer might have his or her life, home, and auto insurance with the same provider. That company, in turn, will reward such loyalty by lowering premiums. Longevity is another incentive. Anyone who is loyal to insurance company for a span of years can request adjustment to premiums. We cannot guarantee the longevity will apply for life insurance premiums, but it can affect the auto and home insurance. It means that the overall insurance coverage costs less thanks to bundling.
There are other stipulations that might affect coverage or premium, and a smart woman looks for these when exploring the insurance market. It is the underwriting guidelines that will affect coverage and premium, and underwriting will also help determine what life insurance a person may buy. Each insurance company has its own rules to follow. Sometimes the guidelines appear to be similar between companies, but there can be differences. A lady needs to be careful about the words and appreciate the nuances.
Doing the background work is not a simple chore. Regrettably, researching the insurance policies is going to take a lot of time. It is easy to get confused trying to decide which insurance is the best and it is not easy to set up a comparison between several insurance companies. People easily give up and by any policy, permitting some of the best coverage to go unnoticed. It can help if there is an objective third party involved in finding the best term life insurance product.
An insurance agent is either a captive or independent professional. Captive agents are well informed insurance people, but they represent only one company. They gladly tell any interested consumer what the benefits are of that company’s term life insurance. However, they are not going to say anything about what other insurance companies offer. The captive agent must sell the policies of that company whom he or she represents.
Independent agents are different. They, too, are well schooled in the insurance industry and take additional courses to upgrade their skills. These agents can represent several insurance companies and we submit that that is a good thing for anyone looking for a policy.
Comparison-shopping is always regarded as a great way to look for term life insurance. An independent agent can research several company policies based on your stated preferences. The agent is then able to allow you to compare between companies and the types of coverage. Independent agents are ready to report both the good and the bad about the insurance companies they select; they are not going to champion one over another. The final choice is for the buyer to decide. An independent agent answers all questions about the policies objectively.
This is a challenging time to do any kind of shopping. Quarantines are keeping people in their homes, but these restrictions are also limiting business. It is hard to work with buyers when offices are forced to shut down. You should be asking any agent if that person can conduct a reasonable search away from the office. There needs to be some type of protocol that will help you.
We Are at Your Service
We are an independent insurance agency that will rise to the challenge.
We have set up coronavirus protocols and we practice social distancing with all our clients. We can easily work away from the office because we have connection to the right software. If is not possible for you to meet with us, we certainly understand. We can conduct business online remotely and make use of communication technology to work with you in finding the perfect coverage.
We base our search and our efforts on what you need more than anything else. We will ask you questions about your health, but it is only two agents in finding a good insurance company. You should not worry about your health condition preventing you from getting insurance. We will make additional effort to find coverage, regardless of your health condition.
We look carefully at the underwriting guidelines of insurance companies. It often happens that an insurance company overlooked by others as excellent coverage; the kind that you need to protect your financial assets and your family we will bring these companies to your attention.
We can source several options for you. We can communicate those selections to you at your convenience. We do not promote one product over another. You are the one to decide if you are the one who pays the premiums. Any questions you have will be answered objectively. We pride ourselves on our ability to be fair-minded, offering the best selections for our clients.
You might have some questions about our services, and we want to answer them! We encourage you to get a hold of us at your convenience. We will use telephone, email, texting, and other means of communicating with you. You can count on us to do the best for you and your family.