Frequently Asked Questions about Life Insurance

How much life insurance do I need?

To determine how much life insurance you need, we will conduct a thorough life insurance needs analysis to examine your current and ongoing expenses, including any future expenses like funeral or education expenses. In addition, to help to reduce the size of the policy required, we also take into consideration your current assets that can offset those expenses, including savings and investments.

Why should I purchase life insurance if I am still young?

The main advantage to purchasing a life insurance policy when you are young and healthy is that you will be able to lock in a good rate for the duration of the policy. By securing a lower rate and guaranteeing your “insurability” now, you won’t have to worry about higher rates as you age or if you experience declining health.

The older and less healthy you are when you purchase a policy, the higher the price. Here is an example of a non-smoker, classified as “Regular” health.

Average Annual Premiums for Term Life death benefit of $250,000

Gender and term length

Age 30

Age 40

Age 50

Age 60

Female, 10-year term

$225

$307

$576

$1,190

Female, 20-year term

$316

$480

$961

$2,324

Female, 30-year term

$432

$698

$1,544

$7,300*

Male, 10-year term

$264

$359

$738

$1,723

Male, 20-year term

$370

$567

$1,232

$3,149

Male, 30-year term

$530

$878

$2,032

$7,300*

*Limited quotes available. Data source: Compulife Quotation System as of November 2020.

For example, a 30-year-old woman seeking a 30-year term life policy would pay on average $432 annually, compared to $1,544 annually for a 50-year-old woman. This is one reason to get a life policy while you're still young and healthy. 

Can I get life insurance with no health exam?

There are a few options for those who want a life insurance policy without a health exam. 

Group policies generally don't require medical exams, unless you have to prove your “insurability” in order to buy a large group life amount. Most group life insurance enrollments are held annually through your employer.

Simplified issue policies require that you answer some medical history questions but don't require an exam.

Guaranteed issue policies require no medical exam or medical questions. You pay more in premiums than you would with an underwritten policy. These policies can be an easy way to get coverage to pay for your funeral, and is an option for the people with health problems.

What do insurance companies look for in a health exam?

The medical exam generally collects your height, weight, blood pressure, urine sample and blood sample. These results, along with your age, gender, family health history and answers to health questions, will determine what rate class you fit in.

If you don’t qualify for the preferred rate today, you might be able to improve your rate category if certain health factors improve.

For example, a 35-year old woman buys a life insurance policy. She is 50 pounds overweight, has high blood pressure and is trying to quit smoking. Two years later, her policy is still in force and she has lost 50 pounds, her blood pressure is normal and she has been nicotine-free for a year. She could ask her agent about getting a re-evaluation of her rates.

If you have questions about life insurance, please give Mary Kay a call at 902.883.1550. She will be more than happy to assist you.

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