Life Insurance Beneficiary

Today we will let you know of a reason why you should update your life insurance beneficiary if you have life changes such as a divorce.  Recently we had a life insurance broker from California in our office who has a voluntary group term life insurance product with Cigna.

He was telling us how one of the individuals enrolled in his group plan purchased a $150,000 life insurance policy.  He and his wife ended up getting a divorce and he never remembered to go back and update his life insurance beneficiary.

Well a few years go by and the man ends up getting remarried.  He and his wife were very happily married and then one day he ended up dying from an accident that left his new wife alone with their children.  When his wife was trying to get everything setup for the funeral she took the death certificate to the insurance agent who wrote the policy.

Life Insurance Beneficiary

The insurance agent sent in the death certificate to the insurance company only to find out that the life insurance beneficiary had not been updated and the ex-wife was going to receive $150,000 from her ex-husband.   Needless to say the current wife was already emotional but this sent her over the edge.  The ex-wife was quoted as saying, “That is the only thing that jerk ever did good for me.”

This is a perfect example of why you should review your insurance policies and financial beneficiaries because things change over the course of our life and sometimes changes need to be made.  Life events or life changes are great times to sit back and evaluate what needs to be done.

If you are interested in getting life insurance quotes please visit our website which can help you get quotes with over 30 companies in a matter of minutes.  Term Life Insurance and Lifetime term quotes are available online, everything else would need a call to 1-877-936-2991.

65 and Older Life Insurance

If you are looking to purchase 65 and older life insurance there are a few things to know before purchasing a life insurance policy.  First thing to understand is that most insurance agents assume that if you are 65 or better and  looking for life insurance that you are wanting a final expense policy.

Second, thing to know is that you should disclose health information to your insurance agent.  Hiding information from the agent is only going to slow down the process and sometimes will take three times as long.  As an insurance agent if I have all the information I can better advise my client on which plan will work better.

Health Insurance example – Disclose Information to your insurance agent

Here is an example for the health insurance side.  If I have a client with diabetes and high blood pressure I know most insurance companies will not accept this individual if they are outside of their Medigap Open Enrollment Period.  There are a few insurance companies like AARP’s United Healthcare Product and the BAI Guaranteed Issue Retiree Plan that will offer coverage to this individual.  However, if the client never tells me when I ask them about health conditions we may waste a month or more applying with different insurance companies that will never consider this individual.  The same type of example can apply to 65 and older life insurance or any insurance policy for that matter.

65 and Older Life Insurance

When you are 65 or better looking for a life insurance policy, know up front that rates are going to be higher than quotes that you saw at 60 years of age.  65 and older life insurance policies tend to have higher premiums and some insurance companies choose not to write insurance policies for this age market.  However, many carriers like TransAmerica, Prudential, Lincoln and other carriers tend to write a good bit of business in that age range.

Final Expense policies are the most common policies for 65 and older life insurance.  These policies cover final expenses such as medical bills, funeral costs, other minor outstanding debts and other things that the insured may have to their name.  Senior Insurance Plans such as this one usually range in benefits from $5,000 – $50,000 and ask very few health questions.  Some of these plans are even guaranteed issue which means you can’t be declined – expect higher premiums with these plans.

For more information on 65 and older life insurance please contact Medicare Insurance Finders at 1-877-936-2991 for rates and other information.

65 and older life insurance

Medicare Insurance Finders helping you with your insurance needs.

Insurance Quotes

There are websites all over the internet that say they offer “Free Insurance Quotes“.  However, if you have tried to do any comparison you will discover that usually they will provide you an insurance quote but 10 agents will be calling you for over a month trying to sell you one of their plans.

Websites that provide insurance quotes

There are three websites that provide actual insurance rates online without having to speak to anyone:

  1. Medicare Insurance Finders – offers Medicare Supplement Insurance Rates.  These quotes are available in 47 states and provide updated rates every month for individuals 65 or older.
  2. Life Insurance Rates – this website will allow you to compare life insurance rates with over 25 big name insurance companies.  Term life insurance rate are pretty easy to compare against other plans because a 20 year term is pretty basic – it covers you for 20 years.
  3. Dental for Everyone - is a company that offers a lot of dental plans.  They promote dental insurance plans in every state with the largest dental insurance companies like Delta Dental, Standard Life, Madison Dental and other carriers that are well known.  Continue reading

Dying with Debt – Who takes care of it?

How is debt handled when someone passes away?  Are the children stuck with the unsecured and secured debt?  Dying with debt is not a simple subject since most states handle this differently, but a general rule is that an children, cousins or other family outside a marriage will not be liable for this debt.  In most states, the spouse will not be liable for their partner’s un-secured debt, but there are some community property states that see the husband and wife as one.

Dying with Debt

When we die an entity arises which is known as our “Estate”.  This estate represents our net worth or our “assets and liabilities”.   When we die a process called probate begins which is where the court steps in and tries to manage our debts and assets.  Most of the time this includes laying out the pecking order of who gets paid first once assets are sold.

While some think that they should receive the inheritance of their family before they begin paying off the debt, this is not how it works.  It is interesting how during the probate process good and bad spending habits are brought forth.  Most of the time the probate process will pay debts like funeral expenses, medical bills, and taxes first before paying off unsecured debt (credit cards, credit lines).

Purpose of Life Insurance

One of the best features of life insurance is that if you have a policy in place, you can cover the expenses of one dying with debt.  So if you know that your secured and unsecured debt is roughly $150,000.  You should have a life insurance policy of at least $150,000 so that your debt will be covered and loved ones will not have to deal with the probate process for your lack of planning.

Monitor Life Insurance offers a final expense policy that was built to cover final expenses up to $35,000.  These final expense insurance policies handle burial costs, medical expenses or other expenses that need to be paid.  These insurance policies pay very quickly and will alleviate financial stress that the family may be dealing with at the time of death.

For more information on Monitor Life Insurance Company’s final expense policies please contact 1-800-800-1397 option 6.

Dying with Debt

MWG Senior Services and Medicare Insurance Finders
                                      helping you with your Life Insurance needs.

This article was brought to you by Medicare Insurance Finders.

 

Compare Life Insurance Online

Life insurance is usually not reviewed on a regular basis; however, an annual review is more important than most people realize.  Some of the reasons why it is important to compare life insurance are:

  1. Life Insurance Rates Typically Drop Overtime
  2. Life Insurance Needs Change
  3. Comparing Life Insurance can save you thousands

Continue reading

Term Life Insurance – Things to Know

Many families consider purchasing term life insurance as protection for their families.  The main income earners of the family usually want to ensure that if anything happens, that those dependent upon their income will not be left in a sinking ship.  The main purpose of a life insurance policy is to cover any unfunded liabilities. Continue reading