Term Insurance Current Rates, News & Information

U.S. Households Without Life Insurance Reaches 50-Year High

Posted in Life Insurance , Term Insurance

August 30th, 2010
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New data from industry-funded research firm Limra has revealed that nearly a third of U.S. households have no life insurance coverage. According to the firm, this is the highest percentage of households going without insurance in five decades.

Millions Are Uninsured

The report found that about 35 million (about 30 percent) U.S. households are without both their own life insurance policies and a policy covered under their employer-sponsored plans. This number is up from 24 million (or 22 percent of households) in 2004.

With only slightly over two-thirds of households having coverage, the percentage is a considerable drop from the over 80 percent of households that held coverage in 1960. It is, in fact, the lowest figure seen by the firm since the same year when the firm began keeping records.

Why So Many Go Without Coverage

Limra determined the high percentage of households without life insurance coverage has a lot to do with the financial pressures resting on the shoulders of the middle class. With the recession having the hardest impact on middle class workers, many who found themselves unemployed could no longer qualify for coverage from employers or simply could not afford coverage on their own.

Of those who responded to the survey, half said that they needed more life insurance but haven’t bought it due to financial difficulties that would be made worse with the extra expense. Are you in this position?

Acquire Affordable Life Insurance

If you find yourself in the position of needing life insurance but are unable to purchase it, it’s good to consider a term life insurance policy. It allows you to pay less because you’ll be covered for a shorter amount of time. This is one of the best low cost life insurance options available for those who need quick coverage at an affordable price.

However, it’s important you don’t go with the first company that’s offering a good deal because there may be an even better one right around the corner. Instead, before committing to anything, shop around for the best deal. This way, you increase your chances of protecting your family without depleting your finances.

Genworth Study: Long-Term Care Costs Increase

Posted in Life Insurance , Term Insurance

April 30th, 2010
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A new report shows that long-term care costs are increased significantly last year. According to Genworth Financial, adult day care and assisted-living costs both grew at a 12 percent clip this year as compared to 2009.

The Median Cost of Private Nursing Increased in 2009

Private nursing is a major aspect of long-term care and is known for being the most expensive. According to the study, the median cost of leaving a loved one in a private nursing home rose to $206 per day so far this year, as opposed to $203 in 2009.

In total, this adds up to a national median of $75,190 per year. However, the costs vary depending on the state. Private rooms in Alaska showed a median of $200,000 while in Louisiana, the median was $51,056.

Is Long Term Care Insurance an Option?

For many, the rising costs of long term care have been encouragement enough to look into long term care insurance. This form of life insurance helps provide relief from nursing home expenses if you ever think you may need it. By adding on riders like joint waiver of premium or the monthly payment option, you could make sure that money is set aside in the event that you or a loved one needs elderly care.

However, it’s good to know that long term care insurance premiums have increased too. So as you’re searching for long term care insurance, be sure to do a lot of comparison shopping. This way, you could get your hands on the best rates and combat the high costs of long term care and insurance.

Insurance Information Institute Says Empty Nesters Still Need Life Insurance

Posted in Life Insurance , Term Insurance

March 30th, 2010
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If youve been thinking about dropping your life insurance coverage because your youngest offspring has flown the coop, youd better think twice. According to the Insurance Information Institute (III), dropping your life insurance when your 18-year-old leaves home could leave your family vulnerable to serious financial problems.

You Should Keep or Renew Your Term Policy

The Insurance Information Institute noted in a new report that many parents feel that they can breathe a sigh of relief after their last child has left home and quickly cancel or allow their term life insurance policy to lapse. The institute stresses that this is not a decision that should be made without first thinking it through because the repercussion could be devastating.

For instance, suppose you decide to drop your term insurance after your last child leaves and soon after, your income-earning spouse dies unexpectedly. Not only are you left with no way to pay the bills for your home, but if your young adult children need support, you cannot help them.

Other Reasons to Keep the Policy

According to III, this is not the only reason to hold on to your life insurance after your kids have left home. Here are a few more:

• Help children finish college: If you have a child who is in college and not quite financially independent, you could help pay off expenses with a term life insurance policy, or any other type of coverage you may have.
• Support your other dependents: If you have dependents or disabled adult children who need continued care, dropping the policy could leave them without financial support.
• Cover a Social Security blackout period: If your spouse is the primary income-earning and passes away before you qualify for Social Security benefits, you may find yourself in a jam.
• Offset reduced Social Security survivors benefits: If you receive Social Security survivor benefits earlier than the full-benefit age (usually 66-67), the benefit amount will be permanently reduced. Life insurance could offset this decrease in benefits.
• Offset other lost retirement savings: If your spouse suffers an early death, he or she may not have gotten salary increases to boost employer pension benefits and/or IRA contributions.
• Meet commitments based on two incomes: If you had two incomes and lose one, keeping your term life insurance policy could help you maintain the double-income commitments.
• Manage unplanned expenses due to early death: In the unfortunate circumstance that you or your spouse were to die earlier than expected, you would not want to leave the responsibility of funeral and burial expenses on your children.

It may feel tempting to drop the term life insurance policy after your kids have left home, but as you can see, there are plenty of reasons to hold onto your life insurance. So before you give up this incredible benefit, review the list above to make sure none could apply to you. Start looking for a low life insurance quote today!

FAQ: Why Choose Term Life Insurance?

Posted in Life Insurance , Term Insurance

September 24th, 2009
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Buying life insurance is probably one of the least enjoyable tasks a head of household has to do. The research can be long, the subject matter is depressing and analyzing all the term life insurance choices and be overwhelming. If you are looking for a simple and affordable way to provide for your family in the worst case scenario, choosing a term life insurance policy may be for you.

By choosing a term life insurance policy, you will help ensure a financial cushion will be provided to your family when you’re gone. Term life insurance only pays a benefit upon the death of the policyholder, and only if the policy has not expired. As the name implies, term life insurance only lasts for a period of time.

Reasons to Consider Term Life Insurance

• You are the sole provider of income for your family
• You have young children that will need to be provided for
• Others depend on you for financial support
• You cannot afford permanent insurance
• You prefer handling your investments separately from your insurance
• You prefer the simplicity of term life plans

If you want to continue providing for your family when you pass, insure! By choosing a term life insurance policy you will be able to easily afford a policy that will provide a sizable death benefit to your family. The policy will be straightforward, the commitment can range between 1-30 years, and you will get peace of mind regarding the future of your loved ones.

Term Life Insurance: Maximum Payout?

Posted in Life Insurance , Term Insurance

September 24th, 2009
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Term life insurance is an important level of protection if you are the head of your household. You need it to ensure that your family will be financially protected in case the policyholder dies prematurely. Term life insurance policies are extremely popular as they are straightforward and affordable. However, the larger the maximum payout for your term life insurance policy you choose, the more money you will paying for your family to receive that death benefit.

Increasing Payouts

In 2004, two insurance giants, Prudential Financial and MetLife were experiencing profit declines due to the lowering prices of insurance premiums as more people were opting to choose affordable term life insurance policies over costly permanent life insurance. As a way to generate a larger income stream, they both switched their insurance underwriting procedures to increase the maximum payout amount for term life insurance. The strategy was to encourage consumers to buymore coveragespecifically in the form of term-life policies.

Deciding on Benefit Amounts

The maximum payout for a term life insurance policy is commonly a formula based on your annual salary times a certain period of years. According to the Wall Street Journal,a 30-year old earning $100,000 annually could possibly get a maximum payout amount of $3 million for their term life insurance policy.

Even though you may want to shower your family with cash after you die, you should not do so if affording the higher premium payments will send you to an early grave. Those interested in a term life insurance policy need to calculate what a comfortable maximum life insurance benefit will be for their family to live on, and that can be worked into their budget while the policy holder is living and paying the premiums.

Term Life Insurance: High Payout?

Posted in Life Insurance , Term Insurance

September 24th, 2009
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Term life insurance is one of the most simple and straight forward types of insurance you can buy. You can purchase a term life insurance policy anywhere from 1-30 years in length, and if during that time you die, your beneficiaries will receive a death benefit. Upon your demise, the heirs to your estate will receive the payout amount of the term life insurance policy in one lump sum, the result of your premium payments into the policy.

Term Life Basics

In general, term life insurance is uncomplicated and easy to afford. Although the amount of the death benefit may be sizable, whether or not it is considered high is determined by both the amount of money you are willing to pay into premiums as well as how much the insurance company is willing to cover you for. Term life insurance for those who are young and healthy is much cheaper than those who are older and not in peak physical condition.

Payouts and Benefits

According to MetLife, most people only have life insurance that is 2.5 times their annual salary. If you are following that rule of thumb, then depending on your annual income, your term life insurance policy may have a high payout. However, insurance professionals highly recommend that policyholders opt for 10 years worth of their annual income to determine their ultimate term life insurance payout amount. However, due to policy changes earlier in the decade, you can opt to have even 20 or 30 years of your annual salary in a payout if you’re willing to pay extremely high premiums for it.

When investigating term life insurance, it is important that you have a true grasp on the financial situation you are in. With a substantial amount of money in the bank, you may choose to get a term life insurance policy with a moderate payout, perhaps to cover the mortgage and college education for your children.

FAQ: Who Benefits from Term Life Insurance?

Posted in Life Insurance , Term Insurance

September 7th, 2009
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If you are the sole income generator of the family, your spouse and children can benefit from you purchasing term life insurance.

Benefits of Term Life Insurance

Term life insurance is a type of insurance policy that only guarantees a death benefit to your heirs if you die during the time the policy is active. As you age the premiums will go up, but initially the premiums are affordable and the policy rules and payouts are simple to understand. If you are on a limited income, your family will benefit most from term life insurance.

Who Buys Term Insurance?

Generally people opt into securing a term life insurance policy if they have young children and other family members solely dependent on them. As your children get older, they will be able to provide for themselves thus making term life insurance a short-term strategy for providing benefits to your love ones.Term life insurance policies are typically purchased from 1 year to 30 years. Those policies that are between 1-5 years are generally renewable.

Unlike other types of insurance, generally known as permanent or whole life life insurance, the only people who will benefit from a term life insurance policy are those who are going to inherit the money. With permanent life insurance, the policyholder can also benefit as that type of policy builds cash value and can also be used as an investment strategy.The only time your beneficiaries will benefit from a term life insurance policy is if you die while you have the coverage.

During the child raising years it is important to have some level of financial security in place so your beneficiaries will not experience the worst case scenario your passing can cause. A term life insurance policy will benefit your loved ones by providing them with some financial protection so they can mourn your loss properly and have time to work out a master financial plan for the future.

Longest Term Limit for Term Life Insurance?

Posted in Life Insurance , Term Insurance

July 28th, 2009
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By and large, all Americans want to be independent while at the same time caring of others, especially our loved ones. That’s why those of us with spouses or partners as well as children get life insurance. We do this so that they can have something to protect themselves with should we pass away unexpectedly. After all, what is the alternative? If you’re the main bread winner in the family, and you die without life insurance, they could be left with no income and owe large amounts of debt. So, to make sure that this unhappy fate does not befall our loved ones, we get life insurance. One popular form of life insurance is called term life insurance, which is life insurance that can be bought in specific increments of time.

People who get term limit life insurance may not have the money to buy whole life insurance, which is life insurance that covers a person’s entire life. With term life insurance, you can get life insurance for periods as short as one year. This approach makes sense for younger people, and people who can’t afford to buy whole life insurance. For instance, you may have two little kids under the age of 5. So, you want to be sure you’ve got life insurance for them if something happens to you. You may opt to buy term life insurance for 10 years, so that their most vulnerable years would be covered should something unexpected happen to you. If it’s all you can afford then at least you know your kids will have something to protect them until they’re old enough to stand on their own two feet. The longest term limit to term life insurance is generally 30 years.

To learn more about term life insurance, and the longest term limits for term life insurance, be sure to consult with a financial advisor. He or she can walk you through the pros and cons of life insurance, term life insurance, whole life insurance, and other insurance policies to determine which one is best for you.

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What is the Shortest Limit for Term Life Insurance I Can Buy?

Posted in Life Insurance , Term Insurance

July 21st, 2009
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Having life insurance is a great thing, especially if you are married and have children. Your income goes towards the safe and responsible functioning of your family unit, covering everything from the mortgage or rent down to baby formula, car payments, private school tuition and heating bills in the dead of winter. Should you die, that income will be lost, and your surviving family members could be face hardship. So, in order to make sure that our loved ones are cared for should we die, we get life insurance. One kind of life insurance that many people find to be the right fit for their needs is term life insurance.

Term life insurance is the opposite of whole life insurance. Term life insurance is life insurance bought only for the coverage of specific periods of time, as opposed to your whole life. You may be strapped for cash and find that having life insurance for, say, your child’s early years is all you can afford. If you think about it, it’s much, much better than nothing. You’re paying what you can to cover them during their most vulnerable and needy years. After that, say, ten year period, your term life insurance will expire.

Term life insurance can be purchased in increments as short as one year. Most term life insurance limits, however, are sold in 5-year plans. Buying term limit life insurance may be just the right protection you need to cover your family during a vulnerable period of time.

To learn more about term life insurance, whole life insurance, term life insurance limits, and other aspects of life insurance, be sure to consult with a financial advisor. He or she can discuss the relative pros and cons of whatever life insurance policy you’re considering buying, whether it’s term life insurance, whole life insurance, or any other kind of life insurance.

Be sure to get free life insurance quotes courtesy of Go Insurance Rates if you’re in the process of comparison-shopping rates. The process is easy and secure, and will only take a few minutes. Best of all, it’s absolutely free.

Advantages / Disadvantages of Term Life Insurance

Posted in Life Insurance , Term Insurance , Whole Life Insurance

July 14th, 2009
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One unpleasant fact about this modern life is that money – or the lack thereof, specifically – limits what we can do. The more money we have, the more options. There are those of us with very few options indeed, and those at the other end of the financial spectrum who have nothing but options. The vast majority of us fall somewhere in between. One thing that many of us want to have but that some of us can’t quite afford is life insurance. Life insurance gives us peace of mind knowing that our loved ones will be financially cared for when we pass away. If you’re the parent of two young children, for example, then you know how important life insurance is. What would happen to them if your income suddenly vanished? Or worse, if it vanished but your debts did not? We get life insurance in order to avoid that worst-case scenario. For those of us who can’t afford whole life insurance, there is another option available: term life insurance.

Term life insurance is life insurance bought to cover specific time periods of our lives. You can buy term life insurance to cover yourself for one year or 30. These selected time periods are what separate term life insurance from traditional whole life insurance, which is a lifelong commitment. Of the advantages to term life insurance, the first is going to be price. It’s perfect for those of us on a budget. Secondly, it can also be converted to whole life insurance should you choose to do so. You can also renew it when the time period you’ve chosen expires.

The disadvantages of having term life insurance as opposed to whole or permanent life insurance is that costs tend to get more and more expensive as time goes on. It will soon become a question as to whether it’s financially worthwhile, as opposed to permanent or whole life insurance.

To learn more about term life insurance and the advantages and disadvantages of term life insurance, be sure to consult with a financial advisor.

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