Can I Reduce My Life Insurance Amount Without Buying A New Policy?

In most cases the answer is YES! Let’s say that 4 years ago you purchased a $1,500,000 term life insurance policy with a 20 year guaranteed level premium term period. In reviewing your assets and liabilities today, you realize that you no longer need the full $1,500,000 of coverage to meet your original income replacement, education and liability needs.

Life Insurance Medical Exam - Take a few simple steps before the examiner arrives.

No one likes taking a medical exam for life insurance. However, taking a few simple steps before the examiner arrives could make a real difference in your ultimate rate classification and what you’ll pay for your new coverage.

When you schedule your exam, arrange to have the examiner arrive as early as possible in the morning. You’ll get your very best lab results after fasting at least 8 hours, and if possible 12 hours before your exam.

Save Money On Life Insurance With Targeted Funding

We are back on the subject of Targeted or Efficient term life insurance funding based on a recent client’s personal situation. The client is age 50, in excellent health and plans to work until age 62 (12 years).

Based on current income replace needs and short term liabilities, he’s decided he needs to maintain $1,000,000 of term life insurance until age 62, at which time ongoing life insurance coverage will not be needed.

“Human Life Value” - What’s Your Economic Worth?

“Human Life Value” is a phrase used to represent an individuals economic value. More specifically, it represents how much money you’d need today (with interest earnings) to replace your projected income and employer sponsored employee benefits until retirement.

While it is occasionally used as a life insurance needs device, “Human Life Value” analysis is more commonly used is in computing damages (loss) that arise from an individuals premature death.

Life Insurance Costs - Check for Volume Discounts

Given the right set of circumstances, at times you may be able to pay less for term life insurance by purchasing more. That’s because most life insurance companies charge less per $1,000 of coverage as the amount of life insurance increases.

These discounts occur in a couple of ways. First, some term life insurance products are only available at higher minimum amounts of protection. For example, American General’s Select -A- Term product requires a minimum face amount of $250,000. Other competitive term life insurance products may have even higher minimum amounts ranging from $500,000 to $1,000,000.

Efficient Funding of Term Life Insurance Policies

Let’s say you are 43 years old and you have seventeen years until your children are out of college and your mortgage is paid in full. You want to buy $500,000 of term life insurance to cover these expenses and leave some funds for supplemental income.

When you get quotes on-line you quickly discover that you can get either level premiums guaranteed for 15 years or for 20 years. Since 15 years doesn’t go far enough, you decide on a 20 guaranteed policy with the assumption that you will cancel it at the end of 17 years. Your annual cost for coverage at preferred rates will be $605.