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Life Insurance FAQs Part I

Life Insurance FAQs Part I

Can I Get Life Insurance After Breast Cancer?

The short answer is yes, you can buy life insurance after cancer. The type, amount and terms depends on the cancer itself and how long you have been cancer free after your last treatment. To get into the standard ratings after breast cancer practically all carriers will want to see you cancer free for 10 years. Anything less than 10 years will be a higher risk policy of either rated premiums or graduated benefits.

Is Life Insurance Essential?

Life insurance is essential in almost every financial plan. The exception may be the very wealthy. Think of it in these terms. When the rich invest money, they “hedge their bets” by investing in vehicles that go in opposite directions. That way if, for example, their stock goes down, their bond goes up. This keeps them from losing all of their money. For hard working folks their best asset to invest is their ability to earn a living. Therefore, if you die to soon and no longer earn,  life insurance “hedges your bet” that your loved ones are still financially cared for. Therefore life insurance is a very essential part of the plan.

Does My Life Insurance Policy Have Cash Value?

There are two types of life insurance fundamentally, term life insurance and permanent life insurance. Term insurance has no cash value with an exception of a return of premium rider at the end of the term. Permanent life insurance comes with different names. the most popular are whole life, universal life, indexed universal life and variable life. These all have a cash value component. Open your policy to the declaration page. This page will tell you the type of policy you have. If you find it is a permanent plan mentioned above, then turn over to the illustrations page. These pages will give you the cash value of at each policy year with the cash value of your plan.

How Much Is Term Life Insurance?

There are a lot of factors that go into determining the cost of term life insurance. First is how much of a face amount are you purchasing? Next, how long of a term are you looking for, 10-20-30-35 years are common term limits? Now you have the underwriting factors that come into play. These premium levels range from best preferred to table 10, so 14 levels of premium just on underwriting alone. Then you have the underwriting factors of age, build, life style, occupation, health issues, etc. lastly you have hundreds of companies that sell term life insurance at rates double to triple some carriers. I suggest finding a good independent broker whose services are free of charge to shop the market for you.

Who Is The Owner Of A Group Life Insurance Policy?

The owner of a group life plan is the business owner or corporation providing coverage to the employees. The owner would hold the master policy and the employees would hold a certificate of coverage. Group life insurance is a nice perk for both employer and employee. For the employer it is a very affordable benefit to help secure employee turnover. For the employee, it is a nice added bonus to their personal financial plan. However, group life should never take the place of individual life insurance. If you change jobs in almost every case you will lose this coverage and run the risk of losing insurability as well.

Be sure and read all of the blogs in this series life insurance FAQs to find your question or contact Tim Wilhoit at Your Friend 4 Life.

Don’t Make Assumptions. Find the courage to ask questions and to express what you really want. Communicate with others as clearly as you can to avoid misunderstandings, sadness and drama. With just this one agreement, you can completely transform your life.”–Miguel Angel Ruiz

 

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Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, entrepreneur, insurance agent, life insurance broker, salesman, sales trainer, recruiter, public speaker, blogger and team leader with over 27 years of experience in sales and marketing in the insurance and beverage industries.

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