Age Discrimination and Life Insurance

By | Discrimination | No Comments

“Age is just a number” is a common saying for people when they reach a certain age milestone. Life insurance companies agree.

In this article, I will discuss the following:

  • how age effects life insurance using a recent example of an elderly man who called me for a life insurance quote.
  • make the argument that life insurance companies don’t discriminate because of age—life insurance companies only assess risk based on age and assign a dollar figure to that assessment.
  • implore Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984) to buy life insurance for their families now to avoid the “age trap” of life insurance.

If you would prefer to get life insurance quotes now instead of reading the rest of this article on “life insurance and age discrimination”, you can generate your own life insurance quotes from 20 A-rated life insurance companies (including Prudential, Banner Life, John Hancock and more), right here. Just enter how much life insurance you want quotes for, your height, your weight, etc. and you’ll be able to generate your own life insurance quotes within five minutes of your time.

(from baby boy to elderly man—the stages of a male aging)

I have specific memories of when I was six years old hopping around in my kindergarten class in treasure chest play jeans that were way too big me. My partner-in-cime, also clad in treasure chest play jeans, was my best friend at the time, Johnny. We would jump around all over the class—I assume it was recess time—into other classmates’ toys, legos, building blocks, etc. and knock them over. We thought it was hilarious—our kindergarten teacher didn’t think so. Our classmates tears at the end of one particular destructive turn put us into different classes the rest of our elementary school years. Looking back on it, our actions were mean, but then again, we were just six years old. Although fuzzy around the edges, those long ago memories that we all have—like mine in the example above—stand still in our minds, and we can access them at a moment’s directive when we choose to. Memories give us permission to time travel. Unfortunately, the physical world we live in does not warp time like the internal world of our minds—our lifetime is linear. We are born, we grow up, and we die. It’s unfair. We start getting better at the business of living when we are too old to reap the greatest rewards from the wisdom we’ve accrued. Life Insurance is just another reminder of wisdom-earned-late-in-life.

To illustrate what I’m talking about here, I’ll use an example. The other day I got a call from an elderly man who is 65 years old wanting quotes for life insurance. He wanted $500,000 life insurance quotes for his spouse. I did a life insurance needs analysis on him, I qualified his health, and I ran accurate quotes for him with the forty A-rated companies I work with. His life insurance rate came back in the neighborhood of $400 month to $600 month from the forty companies I work with. The overall rate from all the companies was all in the same ball park of one another. The man was irate after I told him his life insurance rates.

“That’s crazy,” he said “life insurance is a rip off.” And he hung up on me.

I’m sympathetic to the elderly gentleman’s plight, but why didn’t he think of getting life insurance for his family twenty years earlier when his rate for the same amount of life insurance would have been around $100 month? Did he think he was immortal? Who knows. I never got the chance to hear his grievance. He wouldn’t allow me to.

Well he isn’t immortal, neither am I, and neither are you. We are all going to die one day. It’s a part of life. Which brings me to my point:

Life Insurance companies don’t discriminate against people because of their age—life insurance companies assess people based on their age and assign a dollar figure based on that assessment. Life insurance companies access people based on their health and other factors as well, but the focal point of this article is age. All in all, one of the biggest factors that determines your life insurance rate is your age—the younger you are, the cheaper your life insurance rate; the older you are, the more expensive your life insurance rate. It’s that straightforward.

Life insurance companies are in the business of accessing risk; statistically-speaking, when you are older, you are closer to death. Therefore, the life insurance rate of the 65 year old man in the above example will be higher than a young man or middle aged-man applying for the same level of coverage.

It’s numbers, it’s statistics, it’s not age discrimination.

So, how do you avoid the “Age Trap” in life insurance?

What I mean by the “age trap” of life insurance is this: the older you get (when you are statistically closer to death) the more expensive your life insurance will be. Large life insurance policies for people in their 60’s and 70’s, like in the example above, are very expensive because of this reason. It seems unfair because that’s the time in life when life insurance for your family is needed the most, and the time when it’s going to be the most expensive. I agree. Which brings me to my appeal to members of Generation X:

  • Don’t wait until you are in your mid 60’s or 70’s, like the man in the example above, to procure life insurance for your family when starting a large life insurance policy at that age can be very expensive. Get life insurance for your family when it’s affordable and lock that life insurance rate in over a 20 or 30 year period of time through a term life insurance policy. And yes, life insurance is affordable for Gen Xers in their 30’s, 40’s, and 50’s. Getting life insurance is not something that Gen Xers should put off until it’s too late. Develop this foresight now. It will save you a whole lot of money, and it will guarantee your spouse and kids’ financial security.

I’ll get off my soapbox now.

I hope this been a helpful article disproving the misconception that life insurance companies discriminate against people because of their age. They gauge people’s life expectancy based on their age (and other factors) and assign a dollar amount to the risk based on these factors.

Furthermore, I hope I have convinced anyone reading this article in their 30’s, 40’s, and 50’s to get life insurance now—instead of putting it off—to avoid the “age trap” of life insurance.

If you are a Gen Xer who needs life insurance for your family, you can generate your own life insurance quotes from 20 A-rated life insurance companies here. Just enter your height, your weight, and how much life insurance you want quotes for, and you’ll be generate your own life insurance quotes within about five minutes of your time.

Moreover, if you would prefer to discuss your life insurance needs with me directly, email me at robert@weigelinsurance.com, message me on linkedin, or contact me here so we can set up a good time to talk.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

 

Rock n Roll and Life Insurance

By | Music | No Comments

What in the world does Rock n Roll have to do with Life Insurance?

Everything of course.

For many Gen Xers like me (people in their mid to late 30’s, 40’s, and early 50’s born between 1965 and 1984), rock n roll was the escape from the boredom and mind-numbing routine of our daily lives during our adolescence. Our youth schedule looked something akin to the following: up at seven a.m. at the latest, off to school by seven thirty a.m. at the latest, class from eight to noon, then lunch, then more class until three, then sports until six, then come home, scarf down dinner, and homework, only to repeat the cycle the very next day—every Monday through Friday—ad infinitum.

Now that we’re adults, we repeat the same daily ritual with work, family, and kids—it’s just that we’re more used to it now. The straight arrow path has become us. But we need that straight arrow path to wobble a bit sometime—we need a healthy release—we need rock n roll, even for you naysayers reading this article, shaking your heads.

In this article, I will give you a brief overview of what rock n roll is, my favorite rockers of the Gen X generation, and I will make the argument that rock n roll reduces life insurance rates, whether you agree with me or not.

If you believe in rock n roll and if you think that music can save your mortal soul then proceed to getting life insurance quotes here. You rock!

What is Rock n Roll?

As defined by Wikipedia here, “Rock and roll (often written as rock & roll or rock ‘n’ roll) is a genre of popular music that originated and evolved in the United States during the late 1940s and early 1950s from African American musical styles such as gospel, jump blues, jazz, boogie boogie, and rhythm and blues, along with country music. While elements of what was to become rock and roll can be heard in blues records from the 1920s and in country records of the 1930s, the genre did not acquire its name until 1954.” Sound like a bland definition of rock n roll devoid of heart? Maybe, but it also fits the bill of how rock n roll originated as a new musical art form brought to life from a combination of previous and separate musical genres.

Some of the pioneers or fathers of Rock & Roll include the following musicians: Chuck Berry, Elvis, Buddy Holly, Little Richard, Bill Haley, Jerry Lee Lewis, Roy Orbison, Bo Diddley, Robert Johnson, and Johnny Cash (credits here).

Who is my favorite Rock Band of the Gen X generation?

One of the most difficult questions I’ve ever felt the burden to answer. For me, being a Gen Xer in my late 30’s, the following Rockers come to mind:

  • Nine Inch Nails
  • Rage Against the Machine
  • Sublime
  • Pearl Jam
  • Metallica
  • Guns n Roses
  • Green Day

As you can tell, this list is composed of rock n rollers that started gaining prominence in the late 80’s and early 90’s when I was becoming a teenager. I was starting to to get “it” and starting to understand what “rock n roll was all about.” However, my favorite rock n roll band as a Gen Xer is:

  • Nirvana

I know it’s cliche, and I know that Nirvana is classified as alternative rock or grunge, and I don’t care. Nirvana rocks. For all of you reading this living on the other side of Mars, I’m not going to summarize Nirvana. I just want you to take a watch of Nirvana’s music video for “Smells like Teen Spirit” here. This music video was on MTV back in the day when MTV played music. Hopefully, this video will inspire you to seek out further Nirvana musical carnage elsewhere.

Back to the point: how does Rock n Roll reduce life insurance rates?

Rock n Roll reduces life insurance rates because of:

  • SEX—as well all know, rock n roll and sex are two peas in a pod. Rock n roll begets sex and sex, conversely, begets rock n roll. According to this source, the benefits of sex are the following: “improved immunity, heart health, lower blood pressure, it’s a form of exercise, pain relief, may help reduce risk of prostate cancer, improve sleep, stress relief, and improved bladder control in women.” All of these will improve your overall health and reduce your life insurance rates.
  • DRUGS—yeah, I can’t make that argument. I thought about it for a bit, but I can’t make that argument.
  • ROCK N ROLL CATHARTIC CONCERTS—if you have ever been to a rock n roll concert where you have really gotten into the music—where you’ve danced, sang, and sweated your butt off—then you’re not alone. It’s a work-out; it’s a release; and it reduces anxiety significantly. A reduction in anxiety will boost your overall health and reduce your life insurance rates. Unfortunately, the buzzing in your ears immediately after a great is a sign of hearing loss and a badge of head-banging honor.

All in all, rock n roll reduces life insurance rates because of sex, drugs, and concerts—no, it doesn’t. In fact, there is no direct causation or correlation that rock n roll has anything to do with life insurance. This is a silly article. Or is it?

I’ll let you decide. 🙂

If you think other Gen X rock n roll bands should be on the list above, please comment below. My list is certainly not exhaustive. There’s not even a band headlined by a woman on the list.

If you are a Rocker (or maybe even a Roller) and would like quotes for term life insurance for your family, you can generate your own life insurance quotes from 20 A-rated companies at the life insurance quoter here. Moreover, if you would like to discuss your life insurance needs with me directly, email me at robert@weigelinsurance.com, contact me here, or message me through linkedin.

 

Until next time and until next life insurance article,

 

Robert Weigel

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

 

Getting Life Insurance after Jail or Prison

By | Prison | No Comments

Getting life insurance after jail or prison can be very difficult.

For many Gen Xers (people in their mid to late 30’s, 40’s, and early 50’s) who have lived a considerable number of years on this planet, there may be a blemish on their otherwise pristine criminal record. We are all human after all. And then there’s the repeat felons who never learn from their past and repeat the same mistakes over….and over….and over again.

This article will discuss the primary differences between jail and prison, how a criminal record can effect life insurance, and how to get life insurance after a stint in jail or prison.

If you have been in jail or prison, don’t bother getting life insurance quotes from the life insurance quoter on my website—most of those companies will deny you. Instead, call me at (615) 525-6165, email me at robert@weigelinsurance, or contact me here , and we will find the right company for your life insurance needs.

What’s the difference between Jail and Prison?

If you have violated the criminal law of the United States, and you have been found guilty, you will be sent to jail or prison. For any attorneys reading this, this is clearly an oversimplification, but for the purposes of this article, it will d0.

But, what is the difference between the two—between jail and prison?

According to this source, “At the most basic level, the fundamental difference between jail and prison is the length of stay for inmates. Think short-term and long-term.”

Jails are short-term, run by local law enforcement, and hold inmates who have committed misdemeanors (not felonies) primarily. The maximum length of stay for an inmate in jail is typically up to one year.

Prisons, on the other hand, are long-term. Prisons are operated by the state government or the federal government. Prisons incarcerate inmates who have committed felonies, and who will be serving more than one year of time in the prison facility.

So, how do you get life insurance after serving a stint in jail or prison?

First off, if you are currently in jail or prison, and you are wanting to get a life insurance policy, forget about it. I don’t know any life insurance company that will issue a life insurance policy for someone currently in jail or prison.

However, if you have been out of jail or prison for awhile, here’s how life insurance companies will evaluate your life insurance application:

  • WERE YOU IN JAIL OR PRISON?—There’s a clear bias from life insurance companies here. Life insurance companies look at prison much more seriously than jail. If you have been out of prison for awhile, the chances of you getting a traditionally-underwritten life insurance policy is slim to none. On the other hand, getting life insurance after you have been out of jail for awhile is doable. However, you need to be prepared that your rate for life insurance after a jail stint (no matter the jail stint) is going to be higher than your peers who have never been to jail.
  • WHAT WERE YOU IN JAIL FOR?—If you were in jail for a DUI on your 21st birthday (like the hordes of people who apply for life insurance with this life insurance agent and many others) which was many years ago, life insurance companies will factor this in, but your chances of getting life insurance are solid, all other considerations being the same. If you went to jail for misdemeanor theft or misdemeanor assault, on the other hand, your chances of getting a traditionally-underwritten life insurance policy decrease astronomically. In all instances, if you have been in jail and the life insurance company issues your policy, your life insurance rate will be higher because the risk to the insurance company is greater.
  • HOW LONG WERE YOU IN JAIL?—Were you in jail just overnight because of a DUI arrest or were you in jail for 11 months and 29 days because of misdemeanor domestic abuse. Life Insurance underwriters will definitely look into your jail duration when considering your life insurance application. The less time you were in jail, the greater the likelihood of your policy being accepted and issued.
  • HOW LONG AGO WERE YOU IN JAIL?—There’s a big difference between a Gen Xer who is now 50 and who went to jail in their early 20’s, and a Gen Xer who is now 38 and went to jail at 31. The longer the period of time that has elapsed between your stint in jail, the greater the likelihood that the life insurance company will accept you as a life insurance client.
  • MULIPLE JAIL STINTS—If you have been in jail multiple times for different offenses, I don’t know of a single life insurance company on my roster that will issue a life insurance policy for you. It’s possible you may be eligible for a guaranteed issue policy, but I would have to check with the carriers on a case-by-case basis.
  • REHABILITATION—The X-Factor. Are you a changed person now from the person you were when you were in jail? If yes, great! This is where the expertise of a skilled life insurance agent can come into play who can make an argument for your insurability to the life insurance underwriter deciding your case. Never discount the game-changing-ability of a carefully-crafted letter arguing on your behalf to the life insurance powers to be.

All in all, getting life insurance while in jail or prison is not possible—getting life insurance after prison is incredibly difficult—and getting life insurance after jail is doable, but you just have to be prepared for a higher rate and a thorough analysis of your insurability from the life insurance company.

I hope this has been a helpful, overview article on life insurance after prison and jail.

If you have been in prison or jail and need life insurance for your family, email me at robert@weigelinsurance.com, message me through linkedin.com, 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

 

Gen X Men and War

By | War | No Comments

Men go to war. It’s a fact. In fact, the total number of American male soldiers who die in war, percentage-wise, versus their female counterparts is alarming.

Here are some statistics from the Korean War, Vietnam War, and Persian Gulf War:

  • Korea—36,572 U.S. male soldiers killed in combat versus U.S. female soldiers killed in combat.
  • Vietnam—58,217 U.S. male soldiers killed in combat versus U.S. female soldiers killed in combat.
  • Persian Golf War—367 U.S. male soldiers killed in combat versus 15 U.S. female soldiers killed in combat.

The source I am using for this information is the “Congressional Research Service, informing the Legislative Debate since 1914”. Yes, this source compiles numbers for Congress. (credits here)

You won’t see statistics like these discussed at any rally or in any debate on equal rights for men and woman—and the purpose of this article is not to make an argument on gender issues. My articles are geared toward life insurance and how specific issues impact life insurance for both men and women. But, if we’re going to have a discussion on disparity between men and women, shouldn’t we at least mention the fact that men are disproportionately the ones who fight and die in our wars?

And this fact is true as well in the 21st century Afghanistan and Iraqi conflicts. Double standards shouldn’t exist. Period. But I’ll leave that discussion for you to have on your own time, elsewhere.

So, how does War effect Life Insurance?

War impacts life insurance in the following ways:

  • DENIED FOR LIFE INSURANCE—One of the ways war effects life insurance is that the applicant will be denied for a life insurance policy. In the life insurance application, there are questions posed something like “Are you planning to go outside the country in the next two years? If so, where?” If you respond truthfully with “Yes, I’ll be going to Syria on a mission trip” the life insurance company will deny your life insurance application. Why? Because, as we all know, Syria is a war-torn country so the chances of you dying in Syria on your mission trip are significantly greater than the actuaries that calculate the risks on the life insurance policies can calculate. Life insurance companies can not deny you for being in the military because that’s discrimination, but traveling overseas to a bellicose area—which is what most members of the military do at one time or another—is a very effective way for a life insurance company to deny your application.
  • WAR EXCLUSION CLAUSE—The war exclusion clause in a life insurance policy is exactly what it suggests. The life insurance company will not pay your beneficiaries the life insurance money from your policy if your death was a result of some war-related conflict including invasion, insurrection, revolution, military coup, and terrorism. Yes, the war exclusion clause not only applies to soldiers but civilians as well. The war exclusion clause is not in every life insurance policy, but it still is in most of them. I would highly recommend using the services of a skilled life insurance agent to make sure the life insurance policy you are applying for does not have the war exclusion clause within it.
So, how do you get life insurance then if you’re a solider?
  • GOVERNMENT LIFE INSURANCE—For soldiers, getting life insurance is not difficult. The United States government is aware of the unique challenges that soldiers face in war, and how those unique challenges can prevent them from getting life insurance for their families back at home. Therefore, the SGLI was created. According to military.com, the “SGLI is a VA program that provides low cost group life insurance to all military members. Members are automatically insured under Servicemembers’ Group Life Insurance (SGLI) for the maximum amount of $400,000 unless you choose otherwise.” (credits here)
  • LIFE INSURANCE AFTER THE MILITARY—While being on active duty in the military can certainly be a hindrance in getting a life insurance policy outside of the government, getting life insurance after you have retired from the military wouldn’t be any more difficult than any other American civilian. If you have retired from the military and need life insurance for your family, you can generate your own life insurance quotes from around 20 A-rated on the life insurance quoter here. Just enter how much life insurance you want quotes for, your height, your weight, etc., and you’ll be able to get the quotes in less than five minutes of your time.

So, how do you get life insurance if you’re a civilian going to a war-torn or bellicose country?

  • IT’S REALLY HARD TO GET A TRADITIONAL LIFE INSURANCE POLICY if you are going to a war-torn county because one of the application questions will be “are you planning to travel overseas in the next two years?” and you answer “Yes, Syria”, life insurance companies will deny your life insurance application because they know Syria is a war-torn country. Not only is it hard to get a traditional life insurance policy if you are going to war-torn country, but if you have a policy already place and you die in a bellicose country, your beneficiaries will more than likely be denied the life insurance money because of the war exclusion clause. I’ve covered both of these previously in this article.
  • GUARANTEED ISSUE LIFE INSURANCE—Guaranteed issue life insurance is exactly how it sounds—you apply for the policy, you pay the premium, and you get the life insurance. Most guaranteed issue life insurance policies max out at $50,000 so it may not be enough for your family’s life insurance needs but at least it is something.

All in all, war can effect life insurance in devastating and not-so-devestating ways.

I hope this has been a helpful, overview article on how war effects life insurance.

If you need quotes for term life insurance, 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

Life Insurance Agent for Generation X

www.weigelinsurance.com

robert@weigelinsurance.com

 

“Life insurance is too Expensive for Generation X” MYTH

By | Life Insurance MYTHS | No Comments

Image: Young Generation Xer being splashed in colored chalk

 

People in their lates 30’s, 40’s, and early 50’s (i.e. Generation X) tell me all the time that life insurance is too expensive for Gen Xers so they don’t bother getting life insurance for their family. They don’t even bother getting life insurance quotes. It’s absolutely bizarre to me that so many Gen Xers have a bias against life insurance without even doing their due diligence. The belief that life insurance is too expensive for people born between 1965 and 1984 (the Gen X birth years) is not accurate.

Generation Xers are going through the most transitional period of their lives—they are getting married, buying houses, having children, moving up the corporate ladder, and even starting their own businesses. With so many changes taking place, the death of a Gen X breadwinner leaves the family unit incredibly vulnerable and subject to insolvency which makes life insurance that much more important. Yes, I agree, that purchasing life insurance in your early 20’s is ideal because it’s very cheap, but who had that kind of foresight when you you were at that age. I know I didn’t; some people do. Good for them. Now for the rest of us.

Most of my Generation X clients pay between $50-$100 month for term Life Insurance.  The term life insurance policy face amount for my clients ranges from around $100k to $1,000,000 typically. So, affordable term life insurance for the Generation X population is not a pipe dream.

Here are a few examples of the rates for term Life Insurance that you can anticipate if you are a Generation Xer in better than average health who doesn’t smoke cigarettes:

GENERATION X MAN

(35 to 40 years old) typical term life insurance rates for non-smoker, above average health

  • For a Generation X man between 35 to 40 years old in above average health, a $100k term life insurance policy is typically between $15 to $25 month.
  • For a Generation X man between 35 to 40 years old in above average health, a $250k term life insurance policy is typically between $20 to $35 month.
  • For a Generation X man between 35 to 40 years old in above average health, a $500k term life insurance policy is typically between $30 to $60 month.
  • For a Generation X man between 35 to 40 years old in above average health, a $1,000,000 term life insurance policy is typically between $70 to $90 month.

(40 to 50 years old) typical term life insurance rates for non-smoker, above average health

  • For a Generation X man between 40 to 53 years old in above average health, a $100k term life insurance policy is typically between $25 to $35 month.
  • For a Generation X man between 40 to 53 years old in above average health, a $250k term life insurance policy is typically between $28 to $65 month
  • For a Generation X man between 40 to 53 years old in above average health, a $500k term life insurance policy is typically between $47 to $113 month
  • For a Generation X man between 40 to 53 years old in above average health, a $1,000,000 term life insurance policy is typically between $85 to $127 month

I ran these term life insurance quotes with Minnesota Life, AIG, Prudential, Transamerica, etc. which are just a few of the 50 A rated life insurance companies I work with.

If you have grown weary of me proving to you that “Life Insurance is too expensive for Gen X” is a myth, you can GO HERE to generate your own life insurance quotes from a number of companies. I don’t want to bore you. If you need further proof, read on. First, an image from one of my favorite carriers, SBLI, that offers up to $500k term life insurance with no medical exam.

 

 

Here’s what you can anticipate if you are a Generation X woman in above average health who doesn’t smoke.

GENERATION X WOMAN

(35 to 40 years old) typical rates for non-smoker, above average health

  • For a Generation X woman between 35 to 40 years old in above average health, a $100k term life life insurance policy is typically between $12 to $15 month.
  • For a Generation X woman between 35 to 40 years old in above average health, a $250k term life insurance policy is typically between $18 to $25 month.
  • For a Generation X woman between 35 to 40 years old in above average health, a $500k term life insurance policy is typically between $30 to $45 month.
  • For a Generation X woman between 35 to 40 years old in above average health, a $1,000,000 term life insurance policy is typically between $60 to $75 month.

(40 to 50 years old) typical rates for non-smoker, above average health

  • For a Generation X woman between 40 to 53 years old in above average health, a $100k term life insurance policy is typically between $15 to $27 month.
  • For a Generation X woman between 40 to 53 years old in above average health, a $250k term life insurance policy is typically between $28 to $49 month
  • For a Generation X woman between 40 to 53 years old in above average health, a $500k term life insurance policy is typically between $40 to $91 month
  • For a Generation X woman between 40 to 53 years old in above average health, a $1,000,000 term life insurance policy is typically between $75 to $168 month

Again, I ran quotes with Minnesota Life, AIG, Prudential, Transamerica, etc. which are just a few of 50 A rated life insurance companies I work with. These are ballpark figures but it does go to show you that “Life Insurance is too expensive for Generation Xers” is a MYTH.

I hope that you have gotten something out of this article disproving the commonly held misconception that term Life Insurance in your late 30’s, 40’s, and early 50’s for the Generation X crowd is too expensive. It’s just not true.

Feel free to generate your own term life insurance quotes on the home page of my website at www.weigelinsurance.com or you can contact me to discuss your life insurance needs.

My phone number is (615) 525-6165. My email is Robert@weigelinsurance.com. You can also reach out to me on Linkedin if you prefer.

 

Until next time,

 

Robert Weigel

Term Life Insurance Agent for Generation X

 

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

By | Life Insurance 101 | No Comments

(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

By | Life Insurance 101 | No Comments

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