But my life insurance agent told me it was guaranteed forever!

If you just bought a car, a new super hybrid of some kind, and the salesman told you that it would never run out of fuel, would you just drive on down the highway and trust that guarantee? Would you get a second opinion? Maybe do some research? You might find out that the “guarantee” that it would never run out of fuel was only valid as long as certain assumptions panned out.

Let’s suppose you trusted that salesman and went on down the road. The worst thing that could happen is that he kind of misrepresented the facts and you run out and have to do some hitchhiking.

 Your whole life or universal life insurance have guarantees and they also have assumptions. I can tell you that, in my experience, most of those life insurance policies are sold based on the assumptions because the car that doesn’t run out of gas may cost a little more. If one of those assumptions doesn’t work as hoped, your life insurance policy will run out of gas. It will lapse or you will find out that it will take an exhorbitant amount of money to keep it in force.

Your life insurance and the benefits that it could provide to your family are far more important than a car. My guess is that you would never leave the car salesman’s claim unchecked. Are you going to drive on down the road and not check out your life insurance policy?

Call an independent life insurance agent today and find out if your universal life or whole life policy is really good to go forever.

Another one bites the dust!!

Would everyone who has a whole life or universal life policy please stand up and raise your hand so I can see you! There is not a day that goes by that a case doesn’t cross my desk where someone believes they have a permanent life insurance policy (defined as you can’t outlive it) and when we dig into the guts of their policy we find out if they continue paying as they are, it collapses within a short period of time. When I say collapses what I mean is that they no longer have insurance unless they agree to pay substantially more than what they were led to believe would be their level premium for life.

Today I spoke with a doctor whose parents had carried a whole life policy on him from childhood. They gave the policy to him several years ago and he just let it sit until a captive agent from the company called him up and suggested the do a conversion to another type of policy. So, the doctor tells me that this life insurance agent showed him rows and rows of numbers and assured him this was a policy guaranteed for life. He said he was so overwhelmed by all the numbers that he finally just caved in and told the guy to sign him up.

The doctor was 55 at the time. Today we looked at the guarantees in his policy, and it collapses at age 71. We worked the numbers and found him a new policy that will be paid in full in 15 years and will be GUARANTEED not to lapse before his death. The  life insurance quotes are almost identical to what he is paying now for a life insurance policy that will likely be gone at his age 71. His supposed “permanent” policy isn’t guaranteed as long as his term life policies.

Life insurance agents that don’t have the moral and ethical values to sell guaranteed policies should be asked to leave the business. If you have purchased a whole life or universal life insurance policy in the last 20 years, find an independent agent and have it analyzed. As they used to say in the Navy, “this is not a drill, this is the real thing. The cost of waiting is much higher than you can even imagine.

Again, please raise your hands!

Why you should use an independent life insurance agent!

Let’s start with an analogy. Suppose you have just made a decision that it is time to buy a car and that, like me, you live in a thriving metropolis of 6000 people. There are two car dealerships, neither of whom have anything close to a large selection, and because we are in the boonies, neither offer what could be called competitive prices. Two hours away is a city of 600,000 with 20 or 30 car dealerships, fiercely competitive, and with every conceivable choice in stock.

Now I am a home town supportive kind of guy, but when it comes to a purchase as big and important as a car, I shop it. I find out the best thing available to me here at home and then I drive two hours and compare. Large inventory and better prices wins every time.

An independent life insurance agent is all about large inventory, more choices and better prices. Their opposite, the captive agent, writes for one company. Companies that have captive agents are historically overpriced and the agent knows that, but can’t steer you to a better price or they’ll starve. If they try to help you out by writing a policy that is better for you through another company, the may lose their job.

We’ve talked about all the different criteria that companies use to underwrite policies, like build, cholesterol level, hypertension, asthma, diabetes, and family history for example. With a captive agent you are stuck with one set of criteria. With an independent life insurance agent you may be working with as much as 40-50 different sets of criteria. In a previous blog I showed how the difference in underwriting between one company and another can easily mean a difference of 60%-70% in price.

A captive agent is generally licensed in one state. If you do business with them and move to another state, you become what’s known in the industry as an orphan. Sometimes you will be called by a new agent in your new state that is also a captive agent. Sometimes you never hear from anyone again. Most independent agents are licensed at least in multiple states. More and more you will find agents that are licensed in all states, so they can literally service your policy wherever you live.

So, why do I harp on the need to use an independent life insurance agent. Life insurance is an important purchase. We are talking about benefits that could affect your family’s future in a huge way. An independent agent can offer life insurance quotes that exactly meet your needs, at prices that cannot be met by captive agents. An independent agent can offer a wider variety of products, whether you are looking for term insurance, universal life or whole life,  with better guarantees and benefits.

The question should really be why “wouldn’t” you use an independent life insurance agent.

Diagnosed with diabetes on a life insurance exam??

I don’t think I would be overstating the subject at all if I said that at least once a week I have a client who, for the first time, discovers they have a health issue because the life insurance exam lab results bring it to light. Some of the most frequent revelations that come from those lab results are high cholesterol often coupled with low HDL (good cholesterol), elevated liver functions, elevated PSA (prostate specific antigen) and very often elevated glucose accompanied by an elevated A1C, a measure of long term glucose averages.

While life insurance agents shouldn’t practice medicine, the next step should be to encourage their clients to see a doctor and get a professional opinion. After they’ve done that, a good independent agent can give them guidance as to the steps that are necessary to get them back on the path toward competitive life insurance quotes.

There is especially good news for a person whose labs indicate undiagnosed borderline diabetes. That is to say that they have an A1C of 6.5 or less. If all other risk factors are favorable, an independent agent has access to rates for that person that are as good as Superman can get, provided Superman’s labs are normal also.

For those that have already been diagnosed with diabetes, there is more good news. Provided they have good control, an A1C of 7.0 or less with all other risk factors being favorable, better than standard rates are very attainable. It is not unrealistic for a type 1 diabetic that does all the right things and whose labs show well controlled glucose levels, and no collateral health issues, to be able to get preferred rates. It is completely reasonable to expect a type 2 diabetic who is prudently taking care of their overall health to get preferred or standard plus rates. These are good rates folks. There are plenty of us who are happy to get those rates without the challenge of diabetes.

In summary, the way to life insurance rates for either a type 1 or type 2 diabetic is control. An A1C (and please, if you don’t know yours, call your doctor) of 7.0 or less is good, 6.5 or less is great. Between 7 and 8 is still in the running for good rates as long as the other risk factors are in control. I’ve mentioned the other risk factors a few times. What underwriters want to see is, if there is hypertension (high blood pressure) that it is well controlled. If you are overweight and your medical records show that you are doing something about it, that is a real plus. They want to see compliance with your physician. Stated another way, do everything and exactly what the doctor says religiously. They want to see people who are consistent about self monitoring and about doctor followups.

Checking your glucose occasionally and going to the doctor once a year is not the way to good health or good life insurance rates.

Life insurance for diabetics!

Because of all of the health risks associated with poorly controlled type 1 diabetes and type 2 diabetes, life insurance underwriters take a cautious approach. What the underwriters are looking for can be summed up in three words. Control! Control! Control!

While the risks are huge when a diabetic has poor control, the mortality risk drops dramatically when diabetes and associated health issues such as build (weight) and hypertension are watched carefully and controlled and monitored prudently.

If you are diabetic and looking for the best possible life nsurance quote, just a few guidelines. First, use an independent life insurance agent. Armed with your specific information they can shop for you across a wide range of companies. Since companies change underwriting guidelines, often without any warning or even any notice to life insurance agents, shopping your case allows an agent to find the best rate and lock it in.

Second, know your lab results and your medications. Life insurance underwriters really don’t care if your last glucose reading was 104. Every time you see the doctor they will test your A1C or hbA1C. This gives a long term (3 month) look at your glucose averages. I won’t pretend to know how it works, but it will tell your doctor and the underwriter if that 104 is normal or if you just caught a good reading. For instance, an A1C reading of 7.0 would mean your glucose average is around 130. That means for every time your glucose was around 100, it spent an equal amount of time around 160. Not bad control, but certainly not as good as if your average glucose was 104, which would equate to an A1C of around 5.9.

Know your average blood pressure. The more information an agent and an underwriter have, the better the job they can do for you. And this may seem silly, but know your weight. Don’t guess at it. For those of us who have weighed more than we should have at some point, we have a tendency to estimate. Being off by 10, 15 or 20 pounds can make a big difference in the overall picture and the immediate accuracy of your life insurance quote.

Lastly, if you have been diabetic for a while and have become bored with the details, now is the time to get back in touch. Find out what your last 3 A1C readings were. On your last urinalysis was there any protein in the urine. Find out if there has been any significant changes in your blood pressure readings in the past few years. Know what your cholesterol, hdl and ldl readings are. And get on an accurate scale and know what your weight is. The knowledge you gain will help your independent life insurance agent do the best job for you. They will also benefit you in monitoring your health.

Life insurance for diabetics can be very affordable if you follow the right steps and are taking care of yourself.

The key to good life insurance prices – well controlled health issues!

Unless your worst affliction in life was a sneezing fit 5 years ago, you may have discovered that life insurance often comes at a higher rate due to certain health issues. While you may not get the same rates as superman if you happen to be a type 2 diabetic, good, reasonable rates are still available if you take care of yourself and have your diabetes, whether type 1 or type 2, under good control.

Just to give you a heads up what the underwriters are looking for when they review your labs and your file, control for a diabetic comes under the label of A1C or hbA1C. Your doctor may have talked to you about the test they do that gives them a 3 month overview of your average glucose readings. That is the A1C. The reason underwriters use this measure is that a fasting glucose reading gives them a snapshot of your condition when you are minding your manners. The A1C averages all of those good snapshots with all of the bad ones. It tells them overall if you have good or poor control.

In general an A1C of 6.5 or lower is considered very good control, 6.5 to 7.0 is good control, 7.0-8.0 is moderate control, 8.0 to 9.0 is poorly controlled and over 9.0 is likely to be uninsurable.

Hypertension in combination with type 2 diabetes is considered a problem. If you have that combination, both need to be under good control if you want reasonable insurance rates. Build, height and weight, is also an issue that needs to be considered.

Bottom line. Get with a good independent insurance agent who understands how and where to find the best life insurance quotes for diabetics. Before you even contact them, if you don’t already know, call your doctor and find out what your last A1C was. The more you know about your type1 diabetes or your type 2 diabetes, the better the chances are that your term insurance or universal life insurance will be at a price that agrees with your budget.

Warning! Warning!

I’ve often wished my blogs would be read by everyone. I’m pretty sure that doesn’t happen, but for this one I am lowering my wish expectations. I am only hoping that everyone who has life insurance or is considering buying a life insurance policy will listen up.

If you have a term insurance policy, or for that matter, universal life or whole life, pull it out (if you can find it), dust it off, and read it. The following stats aren’t based on any kind of scientific survey. I wouldn’t even know how to do one,  but based on what I hear from my new customers, most don’t remember what they have for life insurance. That is to say that only about half even remember the amount of insurance and substantially more than that can’t remember how long the life insurance policy is guaranteed to have level premiums. And, while not a large percentage, many can’t remember where their policy is. That makes it kind of unlikely that their family will know where the policy is, or even if one existed, should they pass away unexpectedly.

The number one reason that these problems exist, is the lack of a good, preferably independent life insurance agent that worked with you from the time you got your life insurance quote to now. A good agent is going to educate their client on what they have at the time of sale. A good agent will make sure the client understands all of the guarantees in a policy from the level premium, the conversion options and the accelerated death benefit provision. A good agent is going to instruct a client on what to do with the policy and who to inform about the life insurance, so that in the event of a death, the family knows what you have and who to call. A good agent is going to stay in touch and keep reminding their client about the benefits they purchased and keep them informed of any changes that might be prudent.

Test yourself. Without looking, write down the amounts and term lengths of any insurance policies you have. Write down your best guess as to how many years are left before the life insurance rates go up. Write down the beneficary designations just as you remember them. Ask your spouse, family, or business partner if they know what you have and who to call if you were to die.  Now check it against reality, provided you can find the policies.

When you read your policies, if there is anything you don’t understand, call the agent who sold it to you (if they are still in business) and insist on education and clarification. If they happen to not be in business anymore, go onliine or look through your phone book and find an independent agent who can help you understand what you have. Whover said “ignorance is bliss” obviously wasn’t dependent on life insurance benefits.

Test yourself today. Waiting is an option that could severely damage your family’s future.

Life insurance! Is it real?

Go figure the logic. Virtually every one of us has a story of a friend or relative who has died far too prematurely. Sometimes it’s due to an accident. Sometimes a disease comes from nowhere and ends a life that should have gone on far longer. Yet, the majority of us don’t believe it can or will happen to us. I’ll bet those people that died prematurely didn’t think it would happen to them either.

Life insurance can’t bring back a friend or loved one. That pain is really never fixable. But life insurance can ease the financial burden that is left behind.

 I have clients with stories that really drive home the fact that you just don’t ever know how or when your life will end. I would never tell their stories, but I hope a few will comment on this so that others might think a little harder and maybe do the right thing.

Let’s take life seriously for a moment! Valid in all 50 states and DC!

If you’re an adult with any kind of responsibilities in this world, you should be carrying a life insurance policy. That old saying that “there are two things that are certain in life, death and taxes” has a lot of truth to it. The big difference is that you know when the taxes come due.

So to keep from leaving your responsibilities, whether that is a family, a business, or a debt, not taken care of, follow these instructions. Go online and make it easy on yourself. Do a search for term life insurance. Scroll down past all of the big on line brokerages like Selectquote, Accuquote, Eterm, Reliaquote, etc. I’m not saying that you can’t get life insurance there, but if you pass them up and go down to an independent agency you can a more accurate insurance quotes, get life insurance just as fast, get it at the same price and……..you’ll actually get good service.

Talk to an independent agent and tell them what your responsiblities are and ask them to make recommendations. Ask them to explain the different options such as whole life, universal life (mkae sure you ask them about a no lapse guarantee), term insurance and return of premium life insurance.

Then make a decision. Put something in force. Take responsibility.

OK. I heard someone say whoa! You want to shop around and think about it and compare things and think about it and check the company ratings and financials and think about it and beat it to death. Whoa! There’s that word again. Death!!! Remember, you know when the taxes are coming due. I’ll bet every person you know or stop on the street can tell you of a story of someone who died an “untimely” death.

So, buy the life insurance. Pay for it on a monthly basis and then do all of those things you want to do to make sure you got the best deal with the best company. If you find something better, apply for it. Once it is approved and you know you have a better deal, put it in force and cancel the one you bought. That is the responsible thing to do.

Disclaimer: All of my opinions are valid in all 50 states and DC.

How valuable is your manager??

This is a country made of small businesses and generally speaking, all of those that have employees have managers. As long as I am sailing with generalities, I think it’s safe to say that a good manager is a very valuable asset. Which leads me to another generality. I believe that most business owners would agree that insuring the valuable assets of their business is a prudent idea. And lastly, the loss of a valuable asset can cause a substantial financial loss to the business if it isn’t insured.

I’m not sure an attorney of generalities could have built a better case for a type of business life insurance called key man insurance. The way key man insurance works is that a value is determined that represents the loss to a business if the key person should die. It can be done several ways, but for the sake of this example we will say that the life insurance policy, in this case, a return of premium term insurance policy, is two times the annual premium of the manager. We pay our manager $125,000, so we insure his life for $250,000.

We have determined, in this case, that it would take about two years to hire, train and bring up to speed a new manager. Because our manager is so integral in the success of the business, we anticipate that there would be some turmoil caused by his untimely death. There might be customers lost, production slow downs, employees lost, etc. We might also need to anticipate paying a hiring bonus so we can hire as high up the food chain as possible to minimize the turmoil. Anyway, suffice it to say we can certainly justify the key man policy.

Now to why I decided to buy a return of premium term policy to fund our key man policy. Let’s say that our manager has 15 year to go to retirement when we purchase the policy and, being the good employee that he is, he doesn’t die but keeps on doing a stellar job right up to his retirement day.

During those 15 years we have insured a valuable asset of the business to protect the business. Our manager has made us tons of money and save us hundreds of tons of headaches, because that’s what good managers do. So now it’s time to give him a bonus.

Our return of premium term policy has cost the company $4000 a year for the last 15 years and now, because our manager is still alive and we bought the right kind of life insurance policy, the company gets back all of the premium paid in. Well, that just freed up $60,000 that we can hand to our retiring manager at his going away party. A bonus for a job well done.

If that doesn’t get you all choked up, you could be a manager whose employer bought the wrong kind of term life insurance.