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Life Insurance 101

School Shootings

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The latest school shooting occurred last week in Santa Fe, Texas, in which 8 students and 2 teachers were killed. A host of others were injured.

It’s appalling to think that going to school this year in 2018 has been more dangerous than going to battle (credits here). The Onion, an online comedic newspaper, publishes the same article every time there is a school shooting in the United States. The article is entitled ‘No Way To Prevent This,’ Says Only Nation Where This Regularly Happens. You can find this viral article here. These are just two tidbits of information I found on the first page of Google after entering the search words “School Shootings”.

As a member of Generation X (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984), when I think of school shootings, I think of Columbine. This school shooting occurred two weeks before I graduated from high school. I remember talking about it intensely at school for a week with faculty, with fellow students, and with my parents at home. The Columbine massacre was and is a horrible tragedy. However, we all had the feeling that Columbine was isolated—that it was something that would never happen again, at least on that scale. We were all wrong.

In this article, I will:

  • Give a brief overview of school shootings in the United States, and statistically show how school shootings have escalated in recent years,
  • Synopsize different methods for preventing subsequent school shootings, and
  • ridicule life insurance agents who use the hysteria associated with school shootings to sell more life insurance policies.

If you came here to get quotes for term life insurance and do not wish to read anymore about school shootings, go here to generate your own life insurance quotes from up to 20 A-rated companies. Generating the quotes should take you less than five minutes of your time.

So, what is the history of school shootings in the United States?

My Generation—Generation X—typically thinks of Columbine, which occurred in 1999 as the first real school shooting, but school shootings in the United States occurred way before Columbine.

Here is a linear breakdown of landmark school shootings in the United States to present:

  • 1966—“Charles Joseph Whitman, a former U.S. Marine, shot and killed 16 people from a university tower at the University of Texas in Austin before being shot by police.
  • 1999—“Students Eric Harris, 18, and Dylan Klebold, 17, opened fire at Columbine High School in Littleton, Colo. They killed 12 students and one teacher and wounded more than 20 others before killing themselves in the school’s library.
  • 2006—Milk truck driver Charles C. Roberts, 32, enters a one-room Amish schoolhouse in Nickel Mines, Pa., and isolates the female students in the classroom before methodically executing them. He kills five girls and wounds several more. Roberts then commits suicide.
  • 2007—Seung Hui Cho, a 23-year-old student, went on a shooting spree at Virginia Tech in Blacksburg, Va., killing 32 people, before killing himself. It was the deadliest school shooting in U.S. history.
  • 2012—Adam Lanza, 20, gunned down 20 children and six adults at Sandy Hook Elementary School in Newtown, Conn., before killing himself.” (credits here)
  • February 2018—Nikolas Cruz killed 17 students and staff at Marjory Stoneman Douglas School on Valentines Day.
  • May 2018—Dimitrios Pagourtzis killed 10 people—eight students and two faculty—with a pistol and a shotgun. This is the latest mass school shooting that occurred last week.

This list only comprises the mass school shootings that have headlined the news; it doesn’t go into detail on the plethora of smaller school shootings that are not extensively covered by mainstream news outlets.

According to this source, “More people have died or been injured in mass school shootings in the US in the past 18 years than in the entire 20th century.”

Sadly, mass school shootings are on the rise. Which brings me to my next point:

How do we prevent mass school shootings from happening?

Here are some of the solutions posed to stopping mass school shootings:

  • TEACHERS WITH GUNS—One of the solutions proposed is to arm teachers with guns so that teachers will be the first line of defense against school shooters. At first thought, this makes sense. But then the image of my kindergarten teacher who literally could neither hurt a fly nor have the coordination to wield a gun against an armed gunman comes to mind. I don’t believe this is a very good solution to the problem.
  • GREATER GUN CONTROL—The gun control debate has multiple facets. Here are two: a) raising the age to purchase a gun. This would definitely decrease mass school shootings by limiting the number of students in schools who can legally purchase weapons, and b) limiting the types of weapons that can be purchased by civilians. Assault rifles seem to be the weapon of choice for many school shooters so making it illegal for people to purchase assault rifles would lower casualties in that regard. However, it must be noted, school school shooter Dimitrios Pagourtzis gunned down ten people in the latest school shooting with a shotgun and a pistol.
  • LONGER PRISON SENTENCES FOR SCHOOL SHOOTERS—Longer prison sentences for school shooters—or being sentenced to death—has been proposed. While this may have some deterrent effect, most school shooters either commit suicide at the scene of the crime or are gunned by police.
  • VIOLENT COMPUTER GAMES AND HARDCORE MUSIC—Regulating the violence of computer games and censoring the lyrics of hardcore music has been proposed as a solution to curbing mass school shootings. I remember this was a big topic in the aftermath of Columbine with musician Marilyn Manson.
  • BANNING RITALIN—Oliver North, the NRA’S incoming President, has recently tied the increase in school shootings to the proliferation of Ritalin, a medication designed to reduce ADHD symptoms. An article on it is here. Ritalin calms people who have ADHD—it doesn’t speed them up and convince them to buy a gun to kill people. Ritalin does the opposite of what Oliver North is suggesting. Dumb argument.
  • LISTENING—We don’t listen to people anymore. We may hear them—but we don’t listen. We’re too fixated on portraying a perfect image of ourselves on social media then actually connecting with another human, outside of our immediate close friends and family members. If someone appears down, sad, depressed, etc. ask that person how their doing. Let them vent. Don’t shame them. Don’t moralize them. Most of the teens who commit these atrocities are not the “face of evil” that the news portrays them—that’s just worn-out yellow journalism that doesn’t help to solve the problem. Mass school shooters are primarily kids who no one talks to, who are loners, and who get bullied. Let’s get things clear—I’m not justifying their actions. Their actions are reprehensible. What I am saying is that by the very act of truly listening to someone who feels like they have no where else to turn can truly save lives by either a) helping that person get on a better path or b) alerting authorities.
  • ETC.

What about life insurance agents who use school shootings to sell more life insurance policies?

Just like the false contractors who went to New Orleans after Katrina to rebuild homes only to defraud people from their money and never rebuild the houses, bottom-feeder life insurance “agents” come out of the woodwork to capitalize on the hysteria created from school shootings by selling polices to the vulnerable. I hate these people—these “agents”. Life insurance is benevolently designed to help families overcome the loss of a loved one; life insurance is not designed to fraudulently manipulate and pull on the incredibly tender heart strings of the family members of a shooting victim. These bottom-feeders give my profession, and the whole life insurance industry a black eye. To reiterate, I hate these “agents”.

I hope this has been an informative article on the history of school shootings in the United States, methods proposed to eliminate school shootings, and my opinion on the life insurance “agents” who use school shooting to sell policies.

If you need quotes for term life insurance, you can generate your own life insurance quotes here.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

 

How to Use Life Insurance while you’re still Alive for Generation X

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(Young Generation X Family)

Most Gen Xers (people born between 1965 and 1984) think about life insurance like I do—you buy a term life insurance for your family, you pass away, and your family gets the financial proceeds from your life insurance policy. To me and to many Gen Xers, the purpose of life insurance is simply to provide money for your family when you die so that the mortgage can be paid, credit card bills paid, car loan paid, student loan paid, kids’ tuition paid, etc. That’s why I offer term life insurance exclusively because it’s easy to understand, straightforward, and the cheapest kind of life insurance.

But term life insurance is not the only type of life insurance available to Generation X. There is also permanent life insurance which is broken down into two types, whole and universal life insurance. Permanent Life insurance is a lot more expensive than term life insurance, and more difficult to explain. In addition to a death benefit, permanent life insurance offers “cash value” which is a savings component that the life insurance holder has access to. Basically, part of the premium payments you make are put into a separate account which you can take from after typically 3 years of making premium payments. Gen Xers, I’m giving you an introduction to permanent life insurance (even though I don’t offer it) because it’s one of the primary ways you can make money from your life insurance policy while you’re still alive.

(If you are ready to generate your own term life insurance quotes from at least 20 different companies, GO HERE).

Here’s how to make Money from your Life Insurance policy while you’re still alive:

  • GET “CASH VALUE” MONEY FROM YOUR PERMANENT LIFE INSURANCE POLICY—if you have a permanent life insurance policy (i.e. whole or universal life policy), you have a built-in savings and investment component to the policy. You have “cash value”. You can get money from the cash value of your permanent life insurance policy three ways: a) loans—you can take a loan from the cash value of your permanent life insurance policy. It’s a loan so, of course, you are going to have to repay the life insurance company for the money you took out, b) cancel/surrender policy—when you surrender your permanent life insurance policy, you are cancelling the policy; therefore, the life insurance company will send you a check for how much cash value your former life insurance policy accumulated while you were making premium payments, c) withdrawals–the policy owner can make withdrawals from the cash value of the permanent life insurance policy. These are three ways you can get money from the cash value of your permanent life insurance policy
  • SELL YOUR LIFE INSURANCE POLICY TO A LIFE SETTLEMENT COMPANY—There are a ton of companies that will buy your life insurance policy from you. They are called life settlement companies. If you sell your policy to a life settlement company, the new owner/company will take over your life insurance payments and also will be the beneficiary of the policy. If this is an option, do your homework and contact the Better Business Bureau to make sure the life settlement company you are contracting with is reputable.

I hope this has been a helpful article on two common ways to make money on your life insurance policy while you’re still alive for members of the Generation X population (people in their mid to late 30’s, 40’s, and early 50’s).

Since I only provide term life insurance to my Gen X clients, I don’t deal in “cash value” in permanent life insurance policies, and I rarely come across a client wanting to sell his or her life insurance policy to a life insurance settlement company. To find out why I only offer Term Life Insurance and why I focus on the Generation X population, please visit the “About Me” page on my website HERE. It’s a breakdown of my beliefs on life insurance.

If you are a member of Gen X and you would like quotes for term life insurance from a lot of different companies, you can generate your own quotes from at least 20 different companies on the life insurance quoter on my website HERE . Or, if you prefer, call me at (615) 525-6165, email me at Robert@weigelinsurance.com, or contact me on linkedin.com to discuss your term life insurance needs.

 

Until next time,

 

Robert Weigel

Term Life Insurance Agent for Generation X

(615) 525-6165

Robert@weigelinsurance.com

www.weigelinsurance.com

What is Key Person Life Insurance and How can it Help your Business

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Gen Xers like me (people born between 1965 and 1985 in their mid to late 30’s, 40’s, and early 50’s) start their own businesses more than any other age demographic.

Here’s how it typically unfolds for Gen Xers starting their own businesses: you work for a company in your chosen field for a few years to learn the ropes, you amass all the knowledge you can from working in that company, you realize you can provide the same service as your current company without all the expenses, so, after much deliberation, you go out and start your own business in the same industry. Typically, by year 3 in most businesses, the business is profitable. By year 5, most businesses, if they survive the difficult start-up phase, will procure certain business amenities. One of those business amenities is Key Person Life Insurance (also known as Key Man life insurance).

If you came to my website to get quotes for term life insurance and have no desire to read anything else about Key Person Life Insurance, go here. Just enter your height, your weight, and how much life insurance you want quotes for, and you’ll be able to generate your own life insurance quotes from 20 A-rated life insurance companies in about 5 minutes of your time.

So, what is Key Person Life Insurance, and how does it work?

Key Person Life Insurance is when a business buys life insurance on one of its key employees. The concept is straightforward and easy to understand.

Here’s how it works—in a Key Person life insurance policy, the company buys the policy on a key employee, pays for the life insurance, and makes the company itself the beneficiary of the key person life insurance policy.

When the key person—the employee—dies, the company, as beneficiary, receives the life insurance proceeds.

The purpose of key person life insurance is to ensure the sustainability of a business if the key employee dies. Many businesses can not sustain the death of a key employee and go bankrupt if a key employee should pass away; key person life insurance prevents a company from going defunct in such terrible situations.

So, what are the Pros of Key Person Life Insurance?

Here are some of the Pros of Key Person Life Insurance:

  • PREVENTS BUSINESS BANKRUPTCY—Key Person life Insurance can help your business by safeguarding your business against losses (especially loss profits) as a result of the death of a key member and income-generator for the company.
  • IMPROVES BUSINESS RELATIONSHIPS—If a company buys a key person policy on you, that company believes wholeheartedly that you’re integral to the success of the company. Having that knowledge should make you feel valued and appreciated at that company which is a rarity in cut-throat 21st century United States businesses.
  • FINANCING—Having a key person life insurance company policy will make it easier for a company to get financing from banks and other lenders to grow the business. Why? Because it proves to banks and other lenders that you are more stable, especially in comparison to other start-ups.
  • TAX FREE BUT NOT TAX DEDUCTIBLE—Key person life insurance premiums are tax free but not tax deductible as a business expense. This is a common misconception by many small business owners looking to purchase a key person life insurance policy on a key employee.
  • CASH VALUE—Permanent key person life insurance policies provide cash value—money you can withdraw against for business purposes. Whole and Universal Key Person life insurance can help grow your business or save it from insolvency during rough times.

So, what are the Cons of Key Person Life Insurance?

Here are some of the Cons of Key Person Life Insurnace:

  • PREMIUMS NOT TAX DEDUCTIBLE AS BUSINESS EXPENSE—As aforementioned, the premiums for key person life insurance are not tax deductible as a business expense. Unfortunately, this is a common misconception for many small business owners looking to procure a key person life insurance policy.
  • PERMANENT KEY PERSON LIFE INSURANCE WINS—Whereas I believe that term life is the best option when purchasing individual life insurance for most people, permanent life insurance (i.e. whole or universal life) is the better option when a company buys a key person life insurance policy. Why? Even though a key person permanent life insurance policy is going to be more expensive than its equivalent key person term life insurance policy, it will allow the company: a) to withdraw money or take a loan from the policy for a rainy day or to grow the business, and b) to be used as a company asset if applying for financing with a lender to sustain or grow the business. Permanent key person life insurance has more meat-and-potatoes substantively than term key person life insurance.

I hope this has been a helpful, overview article on what key person life insurance is, how it works, as well as some pros and cons of purchasing key person life insurance for your business.

If you would like to discuss key person life insurance and how it can help your business, email me at robert@weigelinsurance.com, message me through Linkedin.com, or contact me here.

If you are more interested in getting quotes for an individual life insurance policy for you and your family, you can generate your own life insurance quotes from around 20 A-rated life insurance companies here. Just enter your height, weight, and how much life insurance you want quotes for, and you’ll be able to get the quotes in about 5 minutes of your time.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

 

Calculate how much Life Insurance you Need for Generation X

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For Generation X (people born between 1965 and 1984 in their mid to late 30’s, 40’s, and early 50’s), there might be a discrepancy between how much life insurance you need, and how much life insurance you can afford. The life changes that Gen Xers experiences are some of the biggest—settling down and getting married, buying a house, growing a career, and having children just to name a few—so not all Gen Xers can afford all the life insurance they need. That’s ok! You can always get additional life insurance in the future if need be. Remember: it’s always better to have some life insurance in force (even if it’s not quite enough), then none at all. Don’t succumb to black-and-white thinking when it comes to your family’s life insurance needs.

(If you are a Gen Xer motivated to get life insurance and want to skip this blog article then go to THIS LINK to generate your own life insurance quotes from many different life insurance companies. It should take you about 5 minutes to generate the quotes)

For Gen X (and everybody), Here’s how to calculate how much life insurance you NEED:

  • DEATH/BURIAL/FINAL EXPENSES—typical burial and final expenses cost a person around $8,333 regardless of age or demographic.
  • MORTGAGE–Tally up how much your mortgage is if you own a home.
  • DEBT–Add up how much debt you have in addition to your mortgage. Debt can be from student loans, credit cards, car loans, etc.
  • TUITION–if you have children who are private school and/or who want to go to college, tally up how much it would cost your child/children to go through college. Because of the meteoric rise of college tuition costs, this is a large investment.
  • ANNUAL INCOME–Add up your total annual net income and multiply by either 7, 8, 9, or 10. Known as the income replacement multiplier, I’ve seen all four multipliers used. As a Gen Xer, choose whichever multiplier you feel would suit your family’s needs the most.
  • ANY LIFE INSURANCE IN FORCE–If you have any life insurance currently in force through a work group life insurance policy in force, subtract that amount from the amount calculated above.
  • ANY SAVINGS/401K/IRA/ETC.–if you have any savings, 401k, ira, etc. subtract that amount from the total calculated above.

Here’s what the equation for a life insurance needs analysis looks like broken down:

***Life Insurance Needed = Final Expenses + Mortgage + Debt + Tuition + Annual Income Multiplier – Any Life Insurance in Force – Any Savings/401k/IRA/etc***

If you want additional help in doing a life insurance needs analysis, go to the life insurance needs calculator on the lifehappens.org website (life happens is a non-profit organization designed to help people regarding their life insurance needs) at the following LINK. They do a great job of breaking it all down for you.

If you follow the instructions above, any Gen Xer will be able to calculate how much life insurance they need for their family.

How much life insurance can you AFFORD:

After you figure out how much life insurance you need from doing the life insurance needs analysis as described above, get life insurance QUOTES from a lot of different companies. Life Insurance rates are all over the board depending on the company. I work with around 40 A-rated companies (including some of the biggest names in life insurance like Prudential, Mutual of Omaha, AIG, etc.), and I only do to Term Life Insurance for Gen X. If you are a Gen Xer who needs term life insurance quotes for your family, go to the quoter on the home page of my website at www.weigelinsurance.com to generate your own life insurance quotes from a lot of different companies. It should take you all of 5 minutes to get your quotes.

If, after shopping around and getting life insurance quotes from many different companies, you can’t afford the total amount above that you calculated—that’s no big deal!

  • GET A LIFE INSURANCE POLICY THAT YOU CAN AFFORD–reduce the face amount and reduce the term length to get a life insurance policy you can afford. Most of my clients pay between $50 to $100 month for their term life insurance so this is typically not a huge issue.
  • AND GET ANOTHER LIFE POLICY IN THE FUTURE–there’s nothing stopping you from getting additional life insurance in the future when you can afford it and when your family needs.

Remember: while it’s best to have more than enough life insurance to suit you and your family’s needs, if you can’t afford that much, get some life insurance—it’s better to have some life insurance then none at all.

I hope this has been a helpful article for Gen Xers on how to figure out how much life insurance you needs. I broke it down above how you can do a life insurance needs analysis, and I’ve also linked the life happens.org life insurance needs calculator above in case you need additional help in calculating your life insurance needs.

If you are a Gen Xer, your can generate your own life insurance quotes from many different companies by entering your information in the quoter on the home page of my website at www.weigelinsurance.com. If you would like me to walk you through it, call me at (615) 525-6165, email me at Robert@weigelinsurance.com, or contact me through Linkedin.

Until next time,

Robert Weigel

Term Life Insurance Agent for Generation X

www.weigelinsurance.com

(615) 525-6165

Robert@weigelinsurance.com

“My Life Insurance policy through work is enough for my family” MYTH

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If you work for a large company, chances are your company offers you life insurance (in addition to health insurance, a matching 401k, etc.) as a benefit of you working there. Your life insurance at work is covered under a group life insurance policy that extends to everyone who works there, if they so opt-in for it. If you are self-employed like me, you’ve never known such perks—long ago I traded in the stability and predictability of working in the corporate world for the relative freedom of working for myself and my clients. Both types of employment have their pros and cons.

Many Gen Xers—people my age in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984—have life insurance through a group life insurance policy at work.

Their thoughts on life insurance are typically along these lines: “Yeah, I’ve got it through work so I don’t need any other life insurance for my family.”

Really?

I think it’s fantastic that large and medium-sized companies offer life insurance as a benefit of employment. 40% of American do not have any life insurance at all (it’s an alarming statistic), and the majority of Americans who do have life insurance, have it through a group life insurance policy at work. Group life insurance policies are absolutely crucial to family stability.

However, I always follow-up the objection that “I’ve got life insurance through work” with this question:

“Is it enough?”

And then there’s a pause. I can see the person is pondering the question.

Here’s some typical responses I receive to my question “Is it enough?”:

  • “Well, I don’t know how much life insurance I have through work.” If you have no idea how much life insurance you have through work, then there’s no way you know if it’s enough or not. A $10,000 burial and final expense opt-in policy through your employer is not the same as a $250,000 thirty year term life insurance policy through your employer. Life insurance is not a one-size-fits-all product.
  • “I’ve got a $50,000 life insurance policy through work, and that covers my family.” Really? So, if you died today and your family was to get a $50,000 check from the life insurance company, it would cover your burial,  your mortgage/rent, debt, tuition for kids, and the annual income that you brought in for your family. I doubt it. Undeniably, the $50,000 from the life insurance policy would help your family, but it’s probably insufficient. For a detailed breakdown of how to calculate how much life insurance you need, read this article.
  • “I have a $250,000 life insurance policy through work. I’m 59 years old so taking out an individual life insurance policy now is too expensive.” Well, I disagree that taking out a supplemental life insurance policy for a 59 year-old is too expensive, but that’s debatable. A $250,000 life insurance policy through work is wonderful—your employer should get a standing ovation. However, can you convert your group life insurance policy to an individual life insurance policy when you retire, or God-forbid, you get fired? Typically, you can, but you definitely need to find out ASAP if you’re in this person’s situation.
  • “I have a $50,000 life insurance policy through work. I really could use another $250k life insurance policy for my family, but life insurance is expensive, and I won’t be able to afford it.” Really? How do you know you won’t be able to afford it? It’s a terrible myth that life insurance is so expensive that no one can afford it. It’s a mainstream misconception. To read more about this myth, go here. Do your research. If you know that the amount of life insurance you have through your employer isn’t enough, calculate how much life insurance is enough for your family, and then proceed with getting quotes from many different life insurance companies. You’ll find that life insurance is a lot more affordable than you once thought.
  • “I have life insurance through work. I really just don’t understand life insurance though.” I appreciate the honesty and candor when people tell me this. I really do. Life insurance is like talking about politics and religion at the dinner table—it’s a taboo subject for many people. Why? Because we don’t like talking about our death which we all will experience one day. So, we push the life insurance conversation under the rug until we’re old and feeble or just ignore the topic altogether. I make life insurance very simple and easy to understand because it is. You pass away and your beneficiaries get money from the life insurance company—that’s term life insurance in a nutshell. Term life insurance is all I offer.

(life insurance is not a one-size-fits-all product)

My two cents on group life insurance: it’s crucial to the American family. The majority of life insurance in the United States is sold and offered through group life insurance policies. Group life insurance is one of the biggest benefits—if not the biggest benefit—of working for a large company. I’m self-employed so group life insurance is a benefit I don’t have but can appreciate it.

However, I don’t think group life insurance is enough. When doing the math and a life insurance needs analysis for my clients, the numbers just don’t add up. That’s why individual life insurance policies are so important. That’s why I exclusively sell them.

I hope this has been a helpful article disproving the myth “My life insurance policy through work is enough for my family.”

If you need quotes for term life insurance, go here to generate your own life insurance quotes from around 20 A-rated life insurance companies. It should take you all of five minutes to generate the quotes.

If you would prefer to discuss your life insurance needs with directly, call me at (615) 525-6165, email me at robert@weigelinsurance.com, or contact me here.

 

Until next time and until next life insurance article,

 

Robert Weigel

Term Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

(615) 525-6165

 

What are the Pros and Cons of AD&D Insurance

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There are a lot of bold-faced terms regarding types of life insurance—term life insurance, whole life insurance, universal life insurance, group life insurance, and accidental death and dismemberment life insurance (AD&D life insurance)—so it’s understandable if you get confused about which type of life insurance is right for you.

For Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984), picking the right type of life insurance for your family’s needs is a high priority.

This article will discuss AD&D life insurance and how it compares and contracts with term life insurance.

So, what is Accidental Death and Dismemberment Insurance?

AD&D Life Insurance (Accidental Death and Dismemberment life insurance) is a specific and limited type of life insurance that pays out the life insurance monetary proceeds to a beneficiary if the cause of death is an accident. Think car accident—this is the best example of when an AD&D life insurance policy pays out life insurance money to beneficiaries.

AD&D insurance policies also pay out to the beneficiaries of the insurance policy during the named insured’s lifetime if there is an accident where the named insured loses their eyesight, speech, hearing, or a limb.

AD&D Insurance policies can be seen as a kind of hybrid between a very limited type of life insurance and a living benefit.

So, what are the pros and cons of AD&D Insurance policies?

Here are some of the Pros of accidental death and dismemberment insurance policies:

  • INEXPENSIVE—Accidental Death and Dismemberment policies are cheap. These policies are inexpensive because AD&D claims are not common.
  • GUARANTEED ISSUE—Accidental Death and Dismemberment insurance is typically guaranteed issue or simplified issue. You basically fill out the application form, submit the application, pay your premium, and the policy will be issued in just a couple days. Many traditionally-underwritten life insurance policies will take weeks to months to get issued.
  • OFFER LIVING BENEFITS—As previously mentioned, AD&D insurance will pay out during the course of the named insured’s lifetime if the named insured gets into an accident where they lost their eyesight, hearing, speech, or a limb.
  • IT IS LIFE INSURANCE—Accidental Death and Dismemberment Insurance is life insurance, even though the policy only pays out to beneficiaries in the event of an accident.

Here are some of the Cons of accidental death and dismemberment insurance policies:

  • ONLY PAYS OUT TO BENEFICIARIES IN THE EVENT OF AN “ACCIDENT”—the biggest con to AD&D insurance is that it only pays out to your beneficiaries in the event that you die in an accident, like a car accident for example. So, if you die of a heart attack, cancer, any sort of disease, old age, etc., your AD&D insurance will not pay out to your family. The primary purpose of life insurance to me is for your family to get money when you pass away—AD&D insurance negates this purpose. Big con.
  • TOO MANY EXCLUSIONS—Not only does AD&D Insurance only pay out in the event of an accident, but it limits the type of accident—most AD&D insurance policies will not pay out in the event of a hang gliding death, for example, whereas a traditional term life insurance policy like the ones I offer will pay out regardless of cause of death.
  • BURDEN TO PROVE “ACCIDENT”—Not only does AD&D insurance pay out life insurance only in the event of an accident, but also it puts the burden of proof on the beneficiaries to prove that it was an accident in the first place. This further limits the number of times beneficiaries will receive the life insurance money from an AD&D insurance policy.

So, what do I think of AD&D insurance?

I occasionally will write an AD&D insurance policy for a client who has been recently declined for a regular life insurance policy because that client wants life insurance for their family ASAP.

To me, AD&D is only gap life insurance—something the client should have until he or she qualifies for a regular life insurance policy. The AD&D policies I write typically only last a year, and then I’ll work with the client to submit an application for a regular life insurance policy again.

Yes, it’s great that AD&D insurance is cheap, that AD&D policies are issued in a couple days, and that AD&D insurance offers a very basic living benefit.

The Bottom Line on AD&D as Life Insurance:

AD&D insurance defeats the primary purpose of life insurance which is to provide money for your family when you die. AD&D insurance policies limit the cause of death to accidents, then restrict that to certain types of accidents, and then additionally put the burden of proof on beneficiaries to prove that the named insured/family member died of an accident in the first place. As life insurance, AD&D insurance policies just don’t pay out to your family very often. Regular life insurance—term, whole, universal, etc.—pay out the life insurance money to your beneficiaries/family regardless of the cause of your death.

Statistically, most people do not die from accidents but from illnesses and health conditions.

All in all, AD&D insurance should only be used as gap life insurance until you can qualify for a regular life insurance policy.

I hope this has been a helpful article on AD&D Insurance.

As you can tell, I’m not a big fan of AD&D insurance, but I do see it’s value as life insurance in very limited circumstances.

If you need life term life insurance quotes, go here to generate your own term life insurance quotes from 20 A-rated life insurance companies. Just enter in your height, weight, and how much life insurance you want quotes for, and you’ll be able to self-generate your own life insurance quotes in about 5 minutes of your time.

If you prefer to discuss your life insurance needs with me directly, email me at robert@weigelinsurance.com,  contact me here, or message me through Linkedin.com

 

Until next time and until next life insurance article,

 

Robert Weigel

Term Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

(615) 525-6165

 

Letting your Life Insurance Lapse and Getting It Back Again

By | Life Insurance 101 | No Comments

You have to have auto insurance in order to legally drive your car on the road—liability coverage auto insurance is a state law in all fifty states of the Union.

You have to have homeowner’s insurance if you have a mortgage—mortgage companies require you to have homeowner’s insurance in order to protect their investment (i.e. your house).

But do you have to have Life Insurance?

Unless life insurance is required in a divorce decree, the short answer is no. Life Insurance is not required by either state or federal law.

Gen Xers like me (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984) buy term life insurance solely to provide for their families in the event that they die.

People buy term life insurance almost exclusively because of altruism—people buy whole and universal life insurance for a host of reasons.

For a detailed breakdown of why I believe people buy life insurance, read this article.

So why do Gen Xers let their life insurance policies lapse?

Gen Xers are at the peak of their earning capacity while, at the same time, at the peak of their liabilities. A house, a spouse, kids, cars, etc. are all expensive, individually and collectively.

Here’s some reasons I believe Gen Xers let their life insurance policies cancel:

  • “NO MONEY”—First and foremost, Gen Xers will let their life insurance policies cancel because they don’t have the money for it. Not having enough money is also the reason why Gen Xers don’t buy any life insurance in the first place. I can understand this. However, most people can get a term life insurance policy with a sufficient death benefit for less than $100 month. If you really can’t afford spending one hundred dollars a month on life insurance to provide for your family when you pass away, then I agree, you should let your life insurance policy lapse and get a new life insurance policy when you can afford it.
  • “DON’T SEE THE NEED”—Maybe the Gen Xer has inherited some family money or just can’t justify spending money on something for which they aren’t seeing a return on investment. To me, the need for life insurance is obvious—to provide for your family when you die—so I don’t understand not seeing the need as a reason to let your life insurance policy lapse.
  • “TOO EXPENSIVE”—Gen Xers often let life insurance policies lapse because they are too expensive. If the life insurance policy is too expensive, all you have to do is lower the face amount to reduce the life insurance policy rate. For example, if you have a $500k life insurance policy, and you lower it to a $300k life insurance policy, the rate will drop significantly, and you still will have life insurance in force.
  • “CASHING OUT POLICY”—This applies to whole and universal life insurance policies (not term life insurance policies) which accumulate cash value or savings as part of your premium payments. When you surrender (i.e. cancel) a whole or universal life insurance policy, you get the cash value you have earned as a check from the life insurance company. The great thing about whole and universal life insurance policies is that they have a built-in savings component that you can cash-out; the bad thing about whole and universal life insurance policies is that they typically are a lot more expensive than term life insurance policies.

So, what are the dangers you run into if you let your life insurance policy lapse?

  • NO LIFE INSURANCE—if you let your life insurance cancel, you won’t have any life insurance in force so all the payments you’ve made toward the policy will be in vain if you have term life insurance.
  • HIGHER RATES—if you decide to let your life insurance policy cancel, you can pick up another life insurance policy for the same rate in the future. Right? Wrong! Life insurance rate is determined by health and age. The older you get, the closer to death, the more expensive your life insurance gets. If you decide to let your policy lapse, chances are, if you get life insurance again, it will be more expensive.
  • STRICTER UNDERWRITING–One of the primary questions on every life insurance application is something along the lines “Have you ever had any life insurance in force? What happened?” If you answered “yes” to this question and “stopped paying because didn’t see the need” you’re going to get scrutinized more heavily by the life insurance underwriter reviewing your case which will lead to higher rates.

How do you get your life insurance back in force after it has lapsed?

  • 30-DAY GRACE PERIOD—Before a cancellation occurs, policyholders get a 30-day grace period to make a payment to keep the policy in force. So, if you miss a payment, your cancellation won’t be immediate.
  • REINSTATEMENT—After a life insurance policy cancels, life insurance companies will allow policyholders to reinstate the policy for up to 30 days after the cancellation.
  • GET NEW LIFE INSURANCE POLICY—If your life insurance policy has cancelled, and you have passed the reinstatement period, you have to get a new life insurance policy.

I hope this has been a helpful article on why Gen Xers let life insurance policies lapse, the dangers of letting your life insurance policy lapse, and how to get your life insurance policy back if it has been cancelled.

If you need quotes for term life insurance, you can generate your own term life insurance quotes here from around 20 A-rated life insurance companies including Prudential, Mutual of Omaha, SBLI, etc. Just enter in how much life insurance you want quotes for, your weight, your height, etc. and you’ll be able to get the quotes within about 5 minutes.

If you prefer to discuss your life insurance needs with me directly, call me at (615) 525-6165, email me at robert@weigelinsurance.com, or message me through Linkedin.com.

 

Until next time and until next life insurance article,

 

Robert Weigel

Term Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

(615) 525-6165

 

What is Group Life Insurance and Is it Enough

By | Life Insurance 101 | No Comments

When most Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984) think of life insurance, they think of group life insurance.

In fact, the majority of Americans have life insurance primarily because of the group life insurance policy their employer offers them as a benefit of their employment.

This article will discuss what group life insurance is, the pros of group life insurance, the cons of group life insurance, and finish with my two cents on group life insurance.

 

So, what is group life insurance, and how does it work?

Group Life Insurance—as opposed to individual life insurance—is when a single life insurance policy covers an entire group of people. It’s a straightforward and easy to understand concept.

With group life insurance, the owner of the life insurance policy is the employer, and the group life insurance policy covers the employees who can individually decide who they want their beneficiaries to be.

The typical group life insurance policy is a term life insurance policy and ranges in death benefit anywhere from $10,000 to $50,000. However, some employers do offer whole and universal group life insurance policies.

 

So, what are the Pros of having a Group Life Insurance policy?

Here are some of the Pros of having a Group Life Insurance policy if you’re an employee of a business:

  • FREE—Group Life Insurance is typically provided by your employer free of charge or at a nominal rate. This is a big Pro of having life insurance through your employer.
  • GUARANTEED WITH NO MEDICAL EXAM—Another great benefit of group life insurance to the employee is that it’s guaranteed issue. What this means is that you don’t have to take a medical exam to qualify for life insurance coverage. How is this possible? Because the group life insurance rate is based on the group of employees as a whole and not each employee individually.
  • BUYING ADDITIONAL LIFE INSURANCE IS POSSIBLE—Employers who do offer group life insurance offer their basic group life insurance policy at work typically free of charge or at a nominal rate. In addition to that, they may give employees the option of additional life insurance coverage that they can purchase at an additional cost. This option is dependent upon your employer.
  • GOOD RATES—The supplemental life insurance you can purchase in a group life insurance policy typically has very good rates.

 

So, what are the Cons of having a Group Life Insurance policy?

Here are some of the Cons of having a Group Life Insurance policy through work if you’re an employee of a business:

  • ONLY STAYS WITH YOUR JOB—Since your group life insurance policy is provided through your employer, if you decide to quit, if you are fired, and if you retire, you no longer have life insurance for your family. Many group life insurance policies will give you the option of transferring your group life insurance policy to an individual life insurance policy if you leave, but the life insurance rates will be significantly higher. On a different note, if you are fired from an organization, do you really want to keep the group life insurance policy provided under them even if it’s transferred to an individual life policy under the same broker? That might bring up bad memories for you.
  • NOT ENOUGH—My experience in writing individual life insurance policies for clients who have life insurance through work—-the life insurance through work is not enough to meet their family’s needs even when the supplemental life insurance through work is purchased. I found out how much life insurance a client needs by doing a life insurance needs calculation for them. You can do this on your own as well. To calculate how much life insurance you need to provide for your family, go here.
  • LIMITED OPTIONS—Group Life insurance through an employer is a cookie-cutter one-size-fits-all approach to life insurance. Here’s your term life insurance offer—take it or leave it. I believe that life insurance should be customized for the particular person and their family. To understand my approach to life insurance, read about me here.

I hope this has been a helpful article on Group life insurance, and some of the pros and cons of group life insurance.

My two cents on group life insurance: Group Life Insurance is great in that it’s free, and you don’t have to take a medical exam to qualify for it. It’s especially wonderful for employees who could not qualify for an individual life insurance policy on their own—group life insurance definitely fits their need. I suggest to all my life insurance clients to max out the amount of group life insurance that is offered them through work. However, when I do a life insurance needs calculation with clients, I discover that their group life insurance through work (even when the supplemental life insurance is tapped out) is just not enough. Most people need individual life insurance to supplement group life insurance to provide for their families. Furthermore, group life insurance is contingent upon your employment for a particular business. Most people, this day in age, don’t stay at one company their whole lives. All in all, group life insurance is wonderful, but it’s too much of a cookie-cutter approach that does not meet the very specific needs that an individual life insurance policy can offer people.

If you have life insurance through work, but also need an individual life insurance policy to provide for your family, you can get quotes here. Just enter in your height, your weight, and how much life insurance you want quotes for, and you’ll be able to generate life insurance quotes from around 20 A-rated companies in just five minutes of your time. If you prefer to discuss your life insurance needs with me directly, email me at robert@weigelinsurance.com, message me through linkedin, or contact me here.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

 

What are the Key Terms in a Life Insurance Policy

By | Life Insurance 101 | No Comments

It’s important for Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984) to understand the key terms in a life insurance policy, especially if you are in the research process before you decide how much life insurance you need for your family and before you embark on getting life insurance quotes. A life insurance policy is at least a 50-page document so it’s important to understand the basics in a life insurance policy before diving into the legal minutiae.

Without further adieu, here are the key terms in a life insurance policy:

  • LIFE INSURANCE POLICY—A life insurance policy is a contract between you and the life insurance company that promises to pay out a certain amount of money to your beneficiaries when you die. it’s advisable for you to look at your Life Insurance Policy and your Will every year to make sure there are no conflicts in terms of beneficiaries of each legal instrument.
  • NAMED INSURED—The person whose name runs across the top of the policy. This is the person whose life is insured. When the named insured on the life insurance policy dies, the life insurance company is legally-contracted to pay out life insurance proceeds to the beneficiary (or beneficiaries) of the life insurance policy.
  • OWNER OF THE POLICY—The named insured—the person whose life is insured—is typically the owner of the life insurance policy policy but not always. The owner of the policy has the power to change the beneficiaries of the policy, change the terms of the life insurance policy, cancel the policy, etc.
  • BENEFICIARY—The beneficiary is the person or entity who receives the life insurance proceeds once the named insured dies. Most Gen Xers like me (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984) take out life insurance policies with their spouse and children as beneficiaries. There are two types of beneficiaries: a) primary beneficiaries who will receive the life insurance money if they are still alive when the named insured on the policy dies, and b) contingent beneficiaries who will receive the life insurance proceeds if the primary beneficiary is deceased at the time the named insured dies. For more information on who or what can be a beneficiary of a life insurance policy, read this article.
  • PREMIUM—Your life insurance premium is how much you are paying for your life insurance. Most Gen Xers pay their life insurance premium either monthly or annually, but life insurance companies offer quarterly and semi-annually life insurance payments as well.
  • TYPE OF LIFE INSURANCE—There are primarily four types of life insurance : a) term life insurance, b) permanent life insurance (which is whole and universal life insurance), c) key person life insurance, and d) group life insurance (life insurance for employees of a business). I sell term life insurance exclusively to members of Generation X because i) term life is the most affordable and easiest type of life insurance to understand and ii) because I’m a Gen Xer myself so I sell to people going through the same life experiences as me. I sell what I know. To read more about my philosophy on life insurance, go here. Typical terms for a term life insurance policy will be 10 or 20 or 30 years, and the specific term length of your life insurance policy will be explicitly stated in the policy.
  • FACE AMOUNT—Face amount (also known as death benefit) is the amount of money life insurance beneficiaries will receive upon the death of the named insured. For example, if you purchase a $100,000 term life insurance policy, your beneficiaries will receive $100,000 from the life insurance company when you die.
  • GRACE PERIOD—Life insurance companies will allow a life insurance policy to remain in force for 30 days after a payment is due before initiating cancellation of the life insurance policy.
  • RIDERS—Riders are endorsements added to life insurance policies which tailor the coverage for the policy owner. Some riders are built into the life insurance policy themselves—other riders must be purchased additionally and added to the life insurance policy. Some common riders for life insurance policies include waiver of premium, return of premium, etc. To understand more about life insurance riders, read this article.
  • SURRENDER—To surrender your life insurance policy is to cancel your life insurance policy.
  • INCONTESTABLE CLAUSE—This is the clause in a life insurance policy that affirms the rights of the policy owner. Basically, the incontestable clause states that after a certain period of time (3 years or so), the life insurance company no longer has the right to contest statements within the application.
  • FREE LOOK—This is the 30 day period after which the life insurance policy is issued. During this time period, the policy owner can decide to sign the policy and have the policy go into effect, or surrender the policy and have any premium payments paid back to the policy owner.
  • ETC.

There are many more terms in a life insurance policy, but these are the key terms, and the one’s I get asked about the most. I didn’t elaborate on terms like “cash value”, “loan value”, “dividend”, etc. because these are keys words specific to universal and whole life insurance, and I am a term life insurance for Gen X specialist, as aforementioned.

I hope this has been a helpful, overview article of the key terms in a life insurance policy.

If you need quotes for term life insurance, go here to generate quotes from 20 A-rated companies. Just enter your height, weight, and how much life insurance you are wanting quotes for, and you’ll be able to self-generate life insurance quotes in about 5 minutes of your time.

if you prefer to discuss your life insurance needs with me directly, email me at robert@weigelinsurance, message me through linkedin.com, or you can contact me here through the website.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

(615) 525-6165

 

What is Mortgage Life Insurance

By | Life Insurance 101 | No Comments

For Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s), paying your mortgage is one of your biggest bills every month. Yeah, it’s no fun.

You pick out your house with your Realtor and dream about the memories you’ll share in your home with your spouse and your children—oh, the memories you’ll have on Christmas morning with the kids opening their Christmas presents under the tree, oh the memories you’ll have eating Thanksgiving dinner with family around the dining room table, oh the memories you’ll have grilling out burgers in the backyard over Super Bowl Sundays with a host of friends. Browsing for houses is akin to following in love for the first time, only the object of your affection this time is bricks-and-mortar, not blood-and-bone.

Once your dopamine-dripped-daydream-real-estate-high fades, the hangover of homeownership grips you—you pay  20% down as a downpayment, and then your hit with a big bill every month from your bank or mortgage company. Yes, you’ll be getting the same bill every month from the bank or the mortgage company for the next 30 years. That’s not to mention the homeowner’s insurance (which always seems to be increasing in rate), and all the millions of little things around the abode that eat your money. Homeownership has been ingrained in Americans since childhood as a civic duty and a rite of passage into adulthood when substantively the only thing that has changed is that you have a new landlord, your lender, your bank, your mortgage company.

But I digress.

(If you are Gen Xer who would like quotes for term life insurance, go here to generate your own life insurance quotes from around 20 A-rated life insurance companies.)

 

 

So, what is Mortgage Life Insurance?

Mortgage Life Insurance (aka mortgage protection life insurance) is exactly how it sounds—it is life insurance designed to pay off the mortgage on your house when you die so your family doesn’t have to.

Here are some basic characteristics of mortgage protection life insurance:

  • LENDER SELLS IT—Your lender (i.e your bank or mortgage company) may try to sell it you at your home closing. You have the option of declining mortgage protections life insurance.
  • LENDER GETS THE LIFE INSURANCE MONEY—Unlike a traditional term life insurance policy where your family will get the life insurance proceeds, with mortgage protection life insurance, your lender will get the life insurance money.
  • DEATH BENEFIT DECREASES—As you pay off your mortgage, the death benefit decreases but your premium stays the same.
  • NO MEDICAL EXAM—With a mortgage protection life insurance policy, there is typically no medical exam. Of course, this depends on the life insurance company selling you the mortgage protection life insurance policy.
  • HIGER RATE—The rate for mortgage protection life insurance is typically a little bit higher than a corresponding term life insurance policy that requires a medical exam. The higher rate may be due to the fact that no medical exam is required—that’s typical with life insurance policies that don’t require a medical exam. You pay a little more for the convenience of not having to take a medical exam and for the speedier processing and policy issuance.

I don’t like mortgage protection life insurance for the following reasons:

  • LENDER SELLS IT—it’s kind of a backhanded way for a lender to make an additional commission by selling a life insurance policy. You are signing a million sheets of paper on closing day. Why not throw in another contract for good measure. I disagree.
  • LENDER GETS THE LIFE INSURANCE MONEY—With the life insurance policies that I write, your family gets the life insurance money; they are the beneficiaries of your life insurance policy, not your mortgage company or bank. Your family decides to do with the life insurance as they wish whether it’s to pay off the mortgage, pay off other debt, pay for your kid’s tuition, pay for a great vacation so they can get away for awhile to grieve your loss. Mortgage life insurance takes the power of life insurance out of your family’s hands and puts all authority directly in the sweaty palms of your lender.
  • DEATH BENEFIT DECREASES—As you pay off your mortgage, your mortgage debt decreases which means the death benefit decreases but your premium on the mortgage protection life insurance policy stays the same. That makes no sense to me. If the death benefit decreases, you should at least expect to pay a smaller life insurance rate.
  • HIGHER RATE—Mortgage protection life insurance policies typically have a higher rate than traditionally underwritten life insurance policies that require a medical exam. This is understandable—you are paying a little more for not having to have to have a medical exam, and for your life insurance policy to be issued quicker. The turn-around time for a life insurance policy that does not require a medical exam is around 30% to 40% faster than a life insurance policy that requires a medical exam. One of my favorite life insurance companies is SBLI—they are an A-rated life insurance company that offers up to $500k life insurance without a medical exam. That’s a rarity in the life insurance industry. To get up to $500k life insurance quotes from SBLI, contact me here.

 

 

Here’s the solution—buy a term life insurance policy where your family is the beneficiary of the life insurance policy so they can decide what do to with the life insurance money, not your bank, not your mortgage company, not your lender. To me, the only good thing about mortgage protection life insurance is that it typically does not require a medical exam.

I hope this has been a helpful overview article on what mortgage protection life insurance is and its pros and cons (mostly cons).

As you can tell, I don’t like mortgage protection life insurance for a number of reasons, but primarily because it takes the life insurance money out of your family’s hands and puts it squarely in the palms of your mortgage company or bank.

If you need term life insurance quotes, go here to generate your own quotes from at least 20 A-rated life insurance companies including Prudential, AIG, United of Omaha, etc. In the quoter, just enter your height, your weight, and how much life insurance you want quotes for, and you’ll be able to generate the life insurance quotes within about five minutes of your time.

 

 

Until next time and until next life insurance article,

 

Robert Weigel

Term Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

(615) 525-6165