3 Best TOP Life Insurance over 40
3 Best TOP Life Insurance over 40
Are you wondering if you should purchase life insurance?
If there is someone who is dependent on you for financial support, it is a beneficial thing to have.
It can ensure that your loved ones are not struggling to pay the bills if you pass away.
It can also help them replace the services that you provide.
Life Insurance over 40 Years Old
There are 3 types of Life insurance
Term Life Insurance
Term life insurance is a low-cost way of providing maximum coverage for your family. Protection is provided for a limited number of years. The insurance expires without value if the insured lives beyond the policy period, usually 5 to 20 years. Other policy life periods are available, including one-year annual renewable term.
Term insurance premiums will not increase during the guaranteed policy time period (term) you select. Term life insurance pays a death benefit only if you die during that term. Term insurance generally provides the largest insurance protection for your premium dollar.
Term life Insurance remains in force for as long as premiums are current, provided there are no misrepresentations on the application. The insurance coverage terminates if you discontinue your premium payments.
Universal Life Insurance
Universal life insurance is characterized by great flexibility. Policyholders can determine the amount and frequency of premium payments (i.e. the more you pay, the less time you will need to pay). Your premiums cover the insurance part also the savings or investment element and the expense part. The stated interest on the investment portion changes along with movement in interest rates; moves in 1/4 % interest steps are typical as banks and other financial institutions make similar moves.
Whole Life Insurance
Whole life insurance provides permanent protection for the whole of life, from the date of policy issue to the date of the insured’s death, provided that premiums are paid. Premiums are set at the time of policy issue and remain level for the policy’s life. Unlike term insurance, whole life combines insurance protection and savings or cash value which builds over time. Cash value build-up may provide a source for living benefits, for example, helping pay off a mortgage, or a child’s education, or cash surrender value if the policy is ever canceled.
Life Insurance over 40 No Medical
Here are the different types of no exam life insurance if you’re looking for one.
Simplified Issue Life Insurance
As its name suggests, this type of insurance is a simplified version of the traditional life insurance policy. It has a very simple and quick underwriting process. It doesn’t require a medical exam. All you need to do is to answer a few questions that pertain to your medical history. Take note that these are very straightforward and specific health-related questions and you can finish them in just a few minutes.
To compensate for the absence of a medical exam, the insurers usually check your medical record in the Medical Information Bureau (MIB), your prescription record in the prescription drug database, and your driving record in the Department of Motor Vehicles (DMV). More or less, they want to have your full medical profile so they can identify your mortality risk. Your life expectancy profile helps them determine if you are eligible for the type of policy that you have applied for.
Now, does this mean that your health condition would be an impediment to your simplified issue life insurance application? Not exactly.
With a simplified issue life insurance, your application can be easily approved even if you’re not in a very good health. The caveat, however, is you’d be paying a higher premium depending on your condition.
The best thing about the simplified issue policy is you can get a coverage right away once your application is approved. No insurance waiting period, either. As long as you’re paying the premium, you can claim for the benefits any time you need to.
In most instances, the approval just takes a few minutes or a just a few hours. In some instances, the insurer might request a physician’s record, but a few days delay caused by this request wouldn’t make a great difference. The simplified issue’s underwriting process would still be faster than the traditional life insurance policy.
Take note that there is no absolute guarantee that everyone who applies for a simplified issue insurance gets approved, but it is safe to say that your chances of getting the coverage is very high.
Being quick and easy, a simplified issue insurance has a few trade-offs. Aside from its limited policy features, the most obvious among these trade-offs are the high premium on the policy and the lower face amount when compared with the traditional insurance. Normally, the coverage amount is capped at $250,000 to $500,000. You would be lucky if you can find a million-dollar coverage, although some insurers also offer this amount.
You should know that the low face amount makes sense because the insurers are taking risks financially when they give you a coverage even if you have a frail health.
Basically, age and health condition is a factor that influences the amount of premium that you’ll have to pay. In other words, if you’re older and have a medical condition, you might be approved for a policy with a higher premium. But if you’re relatively young and in a very good health condition, then you might get a policy with a very small premium.
In terms of the length of the policy, the simplified issue life insurance is usually offered from 10 up to 20 years for a term life insurance coverage. For a permanent insurance policy, you might have to choose whole life insurance or universal life insurance.
Guaranteed Issued Life Insurance over 40
Guaranteed Issue Life insurance
A guaranteed issue life insurance also doesn’t require a medical exam, but unlike the simplified issue policy, it takes the quick underwriting process up a notch—no medical questionnaires. In other words, no questions asked. As long as you can pay the premium, you’re guaranteed to get a coverage.
A guaranteed issue life insurance is ideal for people who are 50 years old and above who have very poor health and can’t find any other options to get insured. That’s why this is called the insurance of “last resort.” This type of insurance provides benefits to cover debts, medical bills, and burial costs. This is also the reason why it is also referred to as the “burial insurance.”
Depending on the insurer, the face amount of this policy usually ranges from $5,000-$30,000. It is a small benefits amount when compared with other types of policy, but it is nonetheless a good option if you cannot be eligible for any other insurance. The little drawback with this policy is the very high premium. This is intended to protect the insurers because they are practically taking risks in giving out a coverage even if the clients have medical conditions and can claim benefits at any given time.
A guaranteed issue life insurance is usually enforced with a graded death benefit. It’s a type of limitation for claiming the benefits. This means that the death benefits can’t be claimed in full if the insured died before a prescribed amount of time, which is normally two years. If the insured died before or within that two-year period, the beneficiaries will only get a refund of the premium that was already paid plus a 10% interest. In other words, no full death benefit payout. This would not be the case if the insured died of accidental death or murder. In this case, the beneficiaries will get the full face amount of the policy.
Whole Life Insurance for 40 years old Female
Whole Life Insurance Basics
Whole life vs Term Life
Whole life lasts your entire life vs term life which lasts for a specific period of time.
Life insurance sites often show the comparison between whole life vs term life rates, as term is less expensive initially.
However, unlike term, whole life offers cash value growth which is a huge benefit to anyone who is looking for a tax favored savings vehicle.
Whole Life vs Universal Life
Another comparison would be whole life vs universal life.
The primary benefit of whole vs universal life is that whole life offers guarantees, specifically guaranteed premiums for the life of the policy.
As you age, the cost of insurance of a UL policy may become more expensive resulting in higher universal life premiums in your golden years.
Whole life is cash value life insurance. You pay premiums into the policy in order to secure certain guarantees.
The first three guarantees are exclusive to whole life:
- Guaranteed Death Benefit
- Guaranteed Cash Value Growth
- Guaranteed Level Premium
- Guaranteed Access to Your Money
A guaranteed death benefit provides a payout to your beneficiary no matter when you die, as long as you make your required premium payments. The life insurance payout is not taxable to your beneficiary.
Guaranteed tax deferred cash value growth provides that your policy’s cash value account will continue to grow year after year.
Guaranteed level premium means that your premium payment will remain level, or fixed, for the duration of the whole life policy. Unlike many other types of life insurance, your premium will not change.
Guaranteed access to your money means that you have a contract with the insurance carrier and the cash value is yours to withdraw or borrow whenever you need it for whatever you need it for. And life insurance loans are tax free, so you can access your money without having to worry about creating a taxable event.
In addition to these guarantees, whole life insurance dividends are available from participating whole life insurance companies.
Although the dividends are not guaranteed, most of the participating whole life companies that pay dividends have not missed paying participating policyholders dividends in over 100 years, even during the Great Depression.
Dividends are valuable and can be used to pay premiums, keep with the insurance company to earn interest, cashed out to use however you want, or used to purchase paid-up additions.
Paid-up additions occur when you use your dividend payment to buy additional paid up life insurance. Every year you receive a dividend from the insurance company you can elect to buy additional life insurance with the proceeds.
Paid-up additions benefits are twofold.
- Your death benefit grows. As you add additional paid-up life insurance coverage to your policy your death benefit grows. That way, the older you get, the more life insurance death benefit payout you leave behind.
- Your cash value grows. As you add paid-up coverage into your policy, your cash value grows as well. And the more cash value you have, the greater your dividend payment. So you increase your annual dividend payment amount year after year, providing true compound growth, not depleted by taxes.
Best Life Insurance in your 40s
There is no best life insurance because there is simply is no one size fits all policy out there. The best policy for you may not be the best for your spouse, friend or colleague.
Although your life insurance rates will still be lower when you’re closer to 30 than 50, your life goals can be very similar in your 30s and 40s. At this points, you’re already established in your career, have children, and making mortgage payments for that family-friendly house you thought you would never buy as a recent college graduate.
At this stage in life, you have more financial obligations than you did as a recent college graduate with a small student loan balance and no family to feed. You need to consider getting a life insurance policy to cover the following expenses:
- Your home mortgage
- Education costs for your children
- Any other loans you currently owe like car loans or credit cards
- Replacement income for at least one year
Many financial planners use the recommendation of getting a life insurance policy that’s 10 times your current income.
You might decide to get a smaller policy if you’re in better financial shape or don’t want a larger monthly premium. After all, you’re still young and should outlive your policy. Because term life insurance doesn’t accumulate cash value, you still want to get the most coverage at the lowest price.
For most 30 and 40-somethings, your most affordable option will still be a 20-year term policy. Having a 20-year policy will get you through your key employment years so you can focus on raising your family and saving for retirement.
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