By on | Posted in: Buying a Policy

October Is Breast Cancer Awareness Month picture

As we welcome the month of October in, we are also reminded that October is Breast Cancer Awareness Month as well. Thanks to technological improvements with treatments and screening, if you are a breast cancer survivor (woohoo!), you have a very good chance at qualifying for coverage. You might even have a great chance of qualifying for coverage immediately after your treatment as opposed to the wait of a few years or so.

Changes Have Been Made

So what exactly has changed within the life insurance industry? The improvement of technology in the screening process and earlier detection of breast cancer has better ways of predicting where the cancer was found and how their treatment will go – if it is more likely to be successful or not. These advances in the medical field have given life insurance companies a way to measure risk in a broad way for different types of scenarios. This has ultimately given them a way to show more rating categories, shorter waiting periods and lower premiums in numerous cases.

What Do The Guidelines For Breast Cancer Look Like?

The guidelines for when a life insurance company encounters a breast cancer survivor is:
(1) What type of breast cancer was it?
(2) What was the stage and the grade of the cancer?
(3) When was the cancer diagnosed and when did the treatment end?
(4) How was the cancer treated?
(5) Was there any metastasis or any lymph node involvement?
(6) What was the size of the tumor?

The lower the stage, grade and the longer the amount of time since the treatment has ended will definitely give you a better chance at qualifying for coverage at lower rates! Preferred rates are harder to come by, but with appropriate treatment and successful completion of treatment, you could definitely be looking at standard rates.

SHOP THE MARKET!

If you have been attempting to get coverage through one company and have been turned down before, don’t give up! The underwriting guidelines differ with each life insurance company. You always want to shop the market before you decide to pick one. This is why it’s extremely important to go with a company who you can trust will shop the market for you. At 1st Option Insurance, your agent will be diligent and will find the best rate for you and we shop over 50 life insurance companies. You don’t have to do this alone. You have nothing to worry about with us by your side. CLICK HERE to start shopping

By on | Posted in: Buying a Policy

Things That Could Affect Your Life Insurance Rate tight rope picture

Most people would know that your overall health and how old you are play a massive role in life insurance. It determines how much you pay or if you even qualify for the coverage you want. There are many reasons why you don’t get approved for your life insurance policy. Many of them sound pretty unusual but these are things to take into consideration when applying for life insurance.

  1. Your Occupation

If you have a desk job, you don’t need to fret yourself over this one! But, if you have what’s considered a “risky” job, you’ll be looking at a higher premium with life insurance. If you’re a pilot, commercial underwater diver, or prison guard you are placed among those who, depending on which carrier you go with, could end up paying more for coverage than a bank teller or administrative assistant would. Police Officers, Firefighters, Military personal (not deployed) most life insurance companies will give you the best rate available based on your health.

  1. A Recent Bankruptcy

Credit history generally stays out of life insurance premiums, unlike with home and auto insurance. But having a recent chapter 7 bankruptcy in your credit report could make it tougher to qualify. According to several different life insurance companies underwriting guidelines, take AIG for example, they will not even consider offering term life coverage until your bankruptcy has been discharged for a minimum of two years. Now, if you have filed for bankruptcy more than once before, you will not be considered for any coverage until the most recent bankruptcy has been discharged for five years minimum. If you filed chapter 13 recently you will be ok with some companies as long as you are in a court approved payment plan.

  1. Driving Record

If you have a not so clean driving record, you might be looking at higher premiums. You might not even qualify if you have a recent conviction for a serious violation, like a DUI for instance. But this all really depends on the insurance company and the amount of coverage you get through them. Mutual of Omaha, for example, checks motor vehicle records for people ages 18 to 45 who apply for $100k+ of life insurance, and for people who are 46 to 70 who have applied for more than $1 million. But, again, this is just one insurance company from many others who all have very different guidelines.

  1. “Dangerous” Hobbies

Do you like to scuba dive, hang glide, skydive, or rock climb? These are all hobbies that life insurance companies have deemed as pretty risky activities. Shouldn’t come as a surprised when the life insurance company you decide to go with will want to know specifics about your hobby! They is why it is smart to find an agency that shops every company and finds you the lowest rate!

  1. Your Gender

Statistics show that many consumers don’t know that gender affects life insurance rates! For example, a 30 year old male who does not smoke would pay $250/year or more for a $500k, 20 year term life policy whereas a 20 year old female who doesn’t smoke could end up paying as little as $215/year for the same policy. But don’t get upset! Women live longer than men and it’s just the way life works!

Above are just a few things that could affect your life insurance rate but don’t worry.

We have you covered at 1st Option Insurance. We have the best agents readily available to help guide you through any of these problems and many more! Having the right agent really makes buying life insurance so much easier. We shop each and every life insurance company that is A Excellent, A+ or A++ rated by AM Best to find the best rate on the market! CLICK HERE to shop now

By on | Posted in: Buying a Policy

Term Insurance pic woman holding baby

Term life insurance pays a death benefit to your loved ones if you die during the policy. What is term life insurance? It’s easy to understand: Pick a policy amount and time period for coverage, and then you’re ready to shop around.
Buyers usually pick policy terms that cover the years in which their families most need financial support — often while their kids are growing up and they’re paying off a mortgage and other debts or until retirement. You can choose terms of 10, 15, 20, 25 or 30 years.
Term life insurance has no investment component or cash value, unlike permanent life insurance, which covers you for your entire life. You can’t borrow money from a term life policy or cancel it and receive cash value. If you stop paying your premiums before the term ends, your policy lapses and you’ll no longer have coverage. Your insurance also expires when the term ends. If you still need term life insurance, you’ll need to buy another policy.
There are a few varieties of term life:
Level-premium term life is the most common type of term life insurance. If you have it, you’ll pay the same premium every year and your beneficiaries will receive the guaranteed death benefit if you pass away. According to the Insurance Information Institute, 20-year policies are the most popular length.
Annual renewable term life is just like the name implies: You can choose to renew every year, but your premium could increase. Your policy will spell out the possible increases. It’s for people who have a very short life insurance need. Typically, you’ll save money by locking in a rate with a level-term policy.
Decreasing term life policies have a death benefit that decreases over time, with level premiums. People may choose this type of policy if they want to cover a specific debt, like a mortgage.
Return of premium term life provides a refund of premiums for people who don’t die within the term. It’s for customers who don’t like the idea of paying for life insurance that could expire without a payout. Because of the refund feature it costs more than a comparable amount of standard term life insurance.

Why term life insurance could be right for you

If other people, such as a spouse or young children, depend on your income, and you don’t have plenty of money socked away, you probably need life insurance.
Term life insurance is intended to cover your risk of dying during those years when your dependents still need your support. Your family could use the death benefit to pay off debts, fund day-to-day expenses and save for your kids’ college educations.
Term life is probably a better fit for you than permanent life insurance if:
⦁ You don’t have any dependents who will need financial support for the rest of your life and beyond, such as a special needs child.
⦁ You don’t plan to use life insurance to leave a legacy for family members or charity.
⦁ You don’t expect to die with an estate that would leave your heirs with an estate tax burden. (In 2015, federal estate taxes apply only to estates worth $5.43 million per person and $10.86 million per married couple. The values change each year depending on the inflation rate.)
For most life insurance shoppers, term life is the best option, says Todd Juliano of 1st Option Insurance in Jacksonville, FL.
“For the overwhelming majority of situations, a 10- to 30-year level-premium term policy is sufficient,” he says. “Term policies give the maximum coverage for the least amount of money.”

The cost of term life insurance

Cost is the biggest advantage of term life over permanent life insurance.
If you’re young and healthy, you should get really low rates. Letting yourself be talked into an expensive whole life policy when what you really need is term life is a big mistake. Because of whole life’s high costs, some customers afford their premiums by buying too little coverage, leaving their families vulnerable.
The cost of term life depends largely on the amount of coverage you buy, your age, your health and whether you smoke.
Looking at rates for a $500,000, 20-year term life policy and found that a healthy 30-year-old man can buy one for less than $250 a year; a healthy 30-year-old woman could buy the same coverage for less than $220 a year. Shopping around pays off. The male could also pay $400, and the female $350, for the same coverage. By contrast, a $500,000 whole life policy can be about $5,000 a year for a man and $4,400 for a woman. Because new policies become more expensive as you age, it’s a good idea to buy life insurance as soon as you need it.

Waiting also increases the risk that you’ll develop a health condition, which would drive rates even higher or make qualifying for coverage difficult. If you lock in rates now, your premiums won’t go up, even if your health suffers later.
Why put off securing financial protection and leave your family at risk? 1st Option Insurance tool can help you find the best rates.

Ena Kalkan is a staff writer at 1st Option Insurance a personal finance website.