BOOYA! Buy-Sell Review Kit

How many of your existing prospects or clients are business owners? Are you talking to them about life insurance strategies to help protect their business - teaching them to expect the unexpected? Many times, these clients have one or more business partners and only have a verbal plan or agreement in place with regard to what should be done in the event of unforeseen circumstances.

The obvious concern is - what happens if one of them were to pass away prematurely? However, there are other life events they may not have considered at all. For instance, is there a plan in place should one partner go through a divorce? What if one of them is disabled for an extended period of time?

The best solution is to have a written Buy-Sell agreement that addresses these and other concerns. Some of your clients may already have a written agreement, but they may be outdated or even worse, unfunded.

By using a Buy-Sell Review Kit, you can help clients lay out a new plan or update an existing one.
 

Click here to download the Buy-Sell Review Kit

Best of luck this week!

 

Life Insurance For Moms: Non-Negotiable?

One of the most memorable days of your life as a mother will probably be the day you became one. Having your first child, and the subsequent children as well, will probably be forever enshrined in your memory, and there’s a good chance you will always be able to recapture the moment in your mind’s eye.

Going home with baby, having your first nights as a family at home, and not getting a minute of sleep are probably also pretty high on the list. The enjoyment of getting to bring home baby to his new crib, his newly painted room, and putting him on display to awaiting family and friends are all cherished moments.

If you’re like most Americans, however, life insurance is probably something which slipped through the cracks.

Life Insurance For Moms

With the insane amount of preparation in and around the house before baby’s arrival, buying insurance was probably not too high atop the list of to-dos. Keeping baby happy, fed, and hopefully peacefully sleeping are much more a priority in the beginning.

But as you settle in, and you finally get to the point of at least a few hours of sleep per day, reality will begin to creep back as you realize you will have to continue your daily activities. You’ll quickly find you have much more to do than you ever did with the addition of feeding, diapers, and constantly entertaining.

With this increase in responsibility, you obviously have a new financial responsibility as well; not just today, but as your child(ren) age. Much like when you bought your home or your car, you suddenly needed insurance to cover them. Homeowner’s insurance and car insurance are a little different than life insurance though, because they’re actually mandatory.

Interestingly enough, homeowner’s and car insurance are both insurance which cover things that are replaceable. Should something happen to either your house or car, you can buy another (although its contents might be irreplaceable). Yet if your new child loses you, you’re not replaceable. Are you financially prepared for this?

Baby now depends on you for everything in life. From the most basic necessities to the hours of entertainment value you bring. But there is a financial burden now on your shoulders to provide these things. Food is not cheap, especially if you’re like most moms and doing your best to offer an organic meal until your child reaches a certain age. Clothing is definitely not cheap because your newborn will sprout out of every piece of clothing until they’re practically out of high school.

Dads, you are hardly exempt from this conversation. In fact, statistically, you’re probably an even bigger concern. Only until recently, men have been the main breadwinner in a household by a wide margin. While the gap is thinning, you actually hold the responsibility two-fold: financial burden, and gender burden.

Because men still hold the primary income, it only means you have a greater responsibility to your family should something happen to you. Your human capital is more, so more insurance would be required to replace you financially in the future. Less dads are caretakers of children than women, and should the primary caregiver die, life insurance is non-negotiable and a must to sustain your loved ones.

The simple fact you are a male is also another reason to consider life insurance sooner than later. Women live longer than men. It’s a fact. Whatever the reason, there’s a greater chance you’ll pass away before your wife.

Life Insurance For New Parents

As new parents, both of you collectively now have mounting responsibilities both in daily activity and short- and long-term financial aspects. Chances are, you’re operating under a dual income household, and you are already stressed about your finances. Most households are. You might already be wondering about how you could even take on another bill, and what you might have to give up in order to do so.

Well, consider this: imagine you didn’t have any life insurance in place and you lost your spouse. Now what?

You think you had a financial problem as a dual income family? How in the world do you think you’re going to be able to maintain your lifestyle as a single income family, and even worse, a single parent family?

Life insurance for new parents is a crucial, crucial part of your financial plan going forward. Let’s face it. You’re probably not socking away mountains of cash to invest or just simply save without first thinking what baby needs and wants. He’s truly your first thought every waking moment (probably because he is your waking moment). His needs and wants are now your first priority, and you’ll find yourself giving up a lot to have more time with him and your newly grown family.

Possibly giving up nights out on the town, nice quiet meals out (or even just a quiet meal), and even dropping things you thought were important before, but realize are no longer relevant.

It’s time to transition your mindset to life insurance being something your baby needs, not necessarily something you need. It’s not even for you, really. It’s for those you leave behind. You will never see a reward of life insurance you’ve purchased on yourself. You only see the benefit from someone else having it. But you also are the only one who has to deal with the situation where someone is lost and didn’t have life insurance. Surely, you don’t want to leave the latter type to your precious newborn.

Follow us all month long as we dive deeper into why life insurance for new parents is so critical and the many applications where it might be relevant. We’ll also be showing you ways to utilize resources to find the best policy, and even things you’ll want to avoid when you’re considering your first policy.

Life Insurance Awareness Month: September 2013

September is Life Insurance Awareness Month and we are doing our part to spread the word about life insurance. As our nation’s economy recovers, we are aiming to take back responsibility to the most essential part of our financial plans, life insurance.  Join us, this September, in spreading the word about ‘Life Happens’.

What Is Life Insurance Awareness Month?

Life Insurance Awareness Month is the annual campaign to create awareness for Americans about their responsibility to own life insurance. Unfortunately, not enough families are protected despite the increasing affordability of life insurance.

By taking a step forward each September and focusing on spreading more attention towards life insurance, our industry is making progress in bringing awareness to why you may need life insurance, the importance of owning it, and the best way of getting coverage for yourself and your family.

Coordinated by the LIFE Foundation each year, Life Insurance Awareness Month is a movement to promote not only knowledge, but action to close the gap on life insurance in America. Perhaps it is the perception of life insurance the public has, or the fear of the word insurance, but there are simply too many families who go without life insurance, and have to take on the burden of a lost loved one, both psychologically and financially.

Now is the time to protect your family. Don’t wait. Act now. Get covered for life.

Want to know who else has been a part of national Life Insurance Awareness Month? Go here!

The Celebrity History Of National Life Insurance Awareness Month

Are You Looking For Answers About Term Life Insurance?

Life insurance coverage is extremely easy to buy, but it can be daunting to find the right policy first.

With new life insurance products hitting the market from hundreds of life insurance carriers, who could possibly know which kind of insurance they really need?

Fortunately, we’re here to show you how simple it can really be.

Life insurance is an insurance which pays a lump sum upon your death, and the proceeds are typically 100% tax free.

• Term life insurance coverage lasts only a certain period of time, or “term.”
• Whole life insurance coverage lasts your whole life, so long as you pay your premium.

More About Term Life Insurance

Term life insurance is the best way to get the most bang for your buck. It’s the type of life insurance with the cheapest cost per thousand in comparison to universal or whole life, or anything in between.

You pay a steady monthly premium for a specified duration (or “term”) such as 10 years, 20 years, or 30 years. If you keep your payments up to date at all times, your policy will stay in force. The death benefit amount stays level as well, never going up or down.

There are some simple guarantees in term life insurance:

• The premium will never change throughout the duration you choose. As long as you keep your policy up to date, make your premium payments on time, and don’t make changes to the base policy, you’ll pay one set price as long as you hold the policy, or until you need to make a claim.
• The face amount, or death benefit, will not decrease. If you use the policy in the last month before it expires, or any time previous, the amount of proceeds is a set amount, and guaranteed to never change.
• When the term life insurance policy ends, the insurance company owes you nothing. Even if you pay a policy for 30 years, the company does not owe you anything unless you die. The only way a term life policy will pay you back is upon a valid death claim. There are policies which do offer money back, but they are more advanced than a simple term policy.

What Is The Process To Get Term Life Insurance

Buying term life insurance is no longer a lengthy, hand-on process like it used to be. You can still go about it the conventional way, meeting an agent, going through all of your financials and filling out paper applications. 

But we know some of you are looking to get your coverage in place much faster.

Here are the steps to buying life insurance online:

Get A Quote. There are plenty of places to get a quote for life insurance, but not all quote engines are equal. If you put your information into a website, make sure you’re getting a quote right then and there. Otherwise, you’ll be getting a phone call from many places around the country looking to offer you quotes, you’ll get a barrage of e-mails, and you may even get spam down the road. For example, get a quote from our website and you’ll get your expected premiums right now, no waiting, no hassle.

Fill Out An Online Application. When you find the policy you’re looking for from the company of your choice, go through the process of filling out the online application, or the e-app. The online application will ask you for basic contact information, ask you some related health questions, and then the application will be e-mailed to the address you provided.

E-Sign The Application. Inside the e-mail you receive, your application should be waiting. Verify the contents, make sure the information is correct, then e-sign the application and send it back. E-sign is a one-click process where you are applying your signature to the application online, and the day and time will be attached as well. This eliminates the need to sign paper applications, and also keeps you from having to snail mail or fax the paperwork in.

Telephone Interview. The telephone interview is not necessary for all applications, but may be required by certain carriers to verify you are who you are, and to ask personal questions which may not have been asked online to secure your privacy. This “interview” takes 10-15 minutes, and is pretty painless.

Schedule Your Free Medical. After your application has been processed, a third party medical company will call to schedule your medical appointment. A traveling nurse will come to visit you, usually at a time and place you specify. She’ll gather additional health information from you, such as height, weight, or ask additional health related questions. She may also require a urinalysis or blood profile, depending on the amount of insurance you chose.

Wait. While some life insurance policies only take 24 hours to issue, normally most underwritten policies take 4-6 weeks. This gives the insurance company time to evaluate the information you provided on your online application, review your driving record and previous medical records, and to also request further information from your doctor, should they require it.

That’s It! You’ll receive your policies in the mail after they have been issued, or if you deal with a local agent, they’ll deliver it to your door if you choose. The overall process if you buy life insurance online should take a total of 45 minutes of your time, and you won’t need to leave the comfort of your home.

When You Shop Your Life Insurance Rates, Keep In Mind…

There are a few things you’ll want to keep a sharp eye on throughout the process.

Be sure you are using a reputable site, and don’t ever offer up information such as your social security number just to receive a quote. While you may need to enter your name and e-mail address or other basic contact information, do not give your private information to anyone unless you are on a secure site, and are filling out the paperwork for an actual application.

Ask questions if you have any! Don’t be afraid to ask questions about your purchase, even before you buy. While most products look identical on the surface, they may have some differences. You’ll want to know exactly what you’re buying before you make your purchase, as you may own the policy for 30 years or more. You would ask your real estate agent lots of questions before you bought a house, right?

Last, keep record of your purchase. Print out things like your application, and e-mails you may receive from the insurance company, and keep your life insurance policy in a safe place one you get it in the mail. It may not be a bad idea to tell some close family members or friends you have life insurance also, in the event a claim needs to be made. If nobody knows you bought a policy, how will they know to file a claim?

The Free Look Period

Even if you’ve gone through the entire process, and have already received your policy in the mail, you still have what is called a Free Look Period to modify or cancel your policy.

Usually, you have 10 days after you’ve signed the acceptance of your policy to change your mind. Whether it’s buyer’s remorse, incorrect information, or you’ve chosen to change the policy in any way, you have a time period where you can return your policy without obligation. In some instances, you may have up to 30 days, but always be sure to let the insurance company know in some way before the time period is up. A written letter with your signature will usually be required to supplement a phone call or e-mail, just to make it official.

If there is basic information which needs changed, such as a misspelling of a beneficiary’s name, for example, it won’t require you to get a whole new application. You’ll just need to contact the carrier and let them know what needs to be changed. They’ll update it where necessary and get you a new application in the mail.

Annual Review

Now that you have your life insurance coverage in place, keep an eye on the policy and review it annually. Pull out the policy, blow the dust off of it, and go over its contents.

Look to make sure your basic contact information hasn’t changed, such as address, e-mail, phone number, or name change. Review the beneficiary information to make sure it is correct as well. Last, review the coverage amount and the time remaining on your policy to make sure it still suits your current needs.

If you have any other questions on how to buy life insurance online, we’d be happy to help. In the meantime, check out our website for other things to consider when buying life insurance.

Why Your Age Makes A Difference When Buying Life Insurance

Life Insurance premiums are based on two major factors: your age and health.

All other factors being equal, the younger you are, the cheaper your life insurance policy will be.

Therefore, if you don’t already have life insurance, the most affordable time to buy it is right now! Every day you age, you’re drawing closer and closer to higher premiums. Ironically, the youngest adults seem to think they don’t need it until far down the road, while older buyers wish they would have locked in their rates a long time ago.

Insurance Age: What Is It?

If you are going to shop for life insurance, you should know what your insurance age is to make sure you are comparing apples to apples.

For example, if you are currently 40 years old, but you turn 41 next week, you may be thinking you have one week left until your rates go up. Unfortunately, there’s a good chance you are too late.

Your insurance age, when discussing life insurance, is typically whichever age you are closest to! So if you are 40 years and 6 months old, you’re actually now closer to your 41st birthday, so the insurance company is going to view you as 41. (Not all companies do this, but most.)

This is because the law of large numbers insurance companies use to draft their premium tables involves grouping each person into a single age group. For their statistics to be most accurate, they have to categorize you into the age you are closest to.

The Younger You Are, The Better Your Rate

As we mentioned, your life insurance is largely based on your age when calculating your cost to own the policy.

Term life insurance is especially age sensitive when determining rates. This is because it is covering you over a very specific time period; the closer your life insurance period expires to your life expectancy, the more it will cost you.

• If you’re a young adult, the increase in premiums is small each year.
• If you’re middle aged, the increase in premiums starts moving faster.
• If you are a senior citizen, expect your rates to go up very fast every year you age.

Because your natural life expectancy is so far away, you are considered lower risk when you’re young. As you near it, you are considered a greater risk to the insurance company of having to pay a claim. As your risk goes up, guess what else does? Premiums.

How Your Age Affects The Amount Of Coverage You Need

Your life insurance coverage amount you decide on is somewhat tied to your age as well.

The idea behind life insurance is to replace income after you pass, or to pay off any debts your family might incur or already have to deal with.

If you are 25 years of age, and expecting to work until you are 65 years old, your family would miss out on 40 years of your income if you passed away now. If you are 45 and you expect to work until 65, your family would miss out on 20 years of income.

Your human capital, or the value of your future work, is highest when you are young. As you age, and your remaining work years diminish, the idea is while your human capital is declining; your assets should be increasing. Eventually, the hope is to retire, and your income is coming solely from the assets you’re accumulated, and not from you going to work.

What does this mean for your life insurance coverage amount?

If you are young, and you expect to be working a few decades, you may want to stock up on your life insurance now, especially since the premiums are going to be so low.

If you are already in your 40′s and 50′s, you may need less of a face amount because:

1. Your human capital is declining, lowering your replacement cost
2. Your debts should be declining, dropping your coverage needs
3. Your premiums are increasing with your age, making life insurance less affordable

Other Costs Associated With Life Insurance As You Get Older

There are other costs involved with owning a life insurance policy as you age. One of those things are called riders.

Let’s take the Waiver of Premium rider, for example, which is one of the most common riders to attach to a life insurance policy.

The waiver of premium rider is something you can attach to your policy for a small fee which protects your policy should you become disabled. If you are disabled for 6 months or longer, the rider will kick in and start to pay your premiums for you. In this way, even if you lose your income because you’re not able to work, you’ll still have a life insurance policy which won’t lapse.

Your age, however, also determines the cost of the waiver of premium rider. If you are a young 25 year old, your body is expected to last much longer without any disabling injuries, whereas a 55 year old is much more likely to incur a disability.

Nine of Ten Moms will say NO!!!

Nine out of ten moms will say NO...which is exactly what you want them to say!   With Fall Life and the unofficial start of the Year-End Crunch upon us, Agents and Team Members are scrambling to meet with policyholders and prospects in order to achieve production goals and promote the 'Life Happens' theme. Instead of looking here, there and everywhere, might I suggest you narrow your focus down to moms!   Together with your team, create a list of all the moms you know. Moms you insure. Moms you know but do not insure. Moms from your family. Moms from your neighborhood. Moms of your children's friends. Include them all.    Once you have your list, further qualify your list into three categories of Moms. Category #1 includes "stay-at-home moms." Category # 2 includes "dual-income moms" and category #3 includes "single moms."   Start with category # 1 (stay-at-home moms) and ask them the following question:   "If your husband's last paycheck was in fact his last paycheck (PAUSE), would your children be okay?"   Nine out of ten moms will say NO!   When nine out of ten moms say NO, respond with a one word question....WHY?   Mom will then tell you why Life Insurance (or Disability Income Insurance) would be a good idea for her family! (Note: Mom will probably respond to WHY? by saying "we rely on my husband’s income," or, "I would have to go to work.")   Now work on category # 2 (dual-income moms) and ask them the very same question. Well almost.   "If yours, or your husband's, last paycheck was in fact your (his) last paycheck (PAUSE), would your children be okay?"   Nine out of ten moms will say NO!   When nine out of ten moms say NO, respond with a one word question....WHY?   Mom will then tell you why Life Insurance (or Disability Income Insurance) would be a good idea for her family! (Her answer will include something along the lines of "we rely on both incomes, etc.")   With Category # 3 (single moms) it's the same question (almost) with the same result:   "If your last paycheck was in fact your last paycheck (PAUSE), would your children be okay?   Nine out of ten moms will say NO, followed by your response of...WHY?...followed by the single mom telling you why Life Insurance (or Disability Income Insurance) would be a good idea for her family! (Her answer will include something along the lines of "I don't have anyone to take care of my kids, etc.")   Time is ticking on another year. Fall Life is up and running and year end is right around the corner. Get together as a team today and start creating a list of moms...all of the moms you know and start making calls today!   When you ask moms about their last paycheck being their last paycheck, nine out of ten will say NO their kids will NOT be okay. When you ask them why, they WILL tell you why Life Insurance (or Disability Insurance) is a good idea for their family!   For more ideas on generating Life Insurance applications for your book of business (BOB), schedule a LIFE REVIEW with Doug Myrick, YOUR 2020 COACH, today!   One Degree Is All It Takes