Category: non par whole life

Mail offers for child life insurance are second class

by

July 11, 2011

5:19 PM

Leave a comment on Mail offers for child life insurance are second class

Child Life Insurance, children whole life, level death benefit whole life, level face amount whole life, non par whole life, Simplified issue whole life, Whole Life

I got a offer for child life insurance in the mail today.  Whole Life. Low rates. Cash Value. Coverage for $5,000 to $25,000.  No medical exam.  My advice is to throw these offers away.

Why?  Because they are level benefit whole life coverage.  The death benefit always remains the same.  A $25,000 policy will always be a flat $25,000: 10 years, 20, 30, 70 years from now.  You want whole life coverage with an increasing face amount as a hedge against inflation.  This is called “par” or participating whole life.  It pays dividends. You get to share in the profits of the life insurance company, so it builds more cash value than “non par”, non participating, whole life that are offered by direct mail.

Par whole life is also inexpensive. MassMutual have the best plans.  For example a $25,000  policy for a 1 year old boy is $14.09 a month, for a 10 year old girl it’s $15.09 a month.  Applications are a bit longer to fill out than mail offers, but it’s worth it.  There are no medical exams.

 

Image:  Wikimedia Commons

AARP life insurance poor choices

by

May 11, 2011

11:11 AM

Leave a comment on AARP life insurance poor choices

Graded Benefit whole life, graded benefit whole life, guaranteed acceptance Whole Life, guaranteed issue whole life, In your 60's, In your 70's, In your 80's, non par whole life, Product, Simplified issue whole life, Whole Life

AARP life insurance choices are flawed and will tend to be more expensive.  When you go to AARP’s website for life insurance, all the options say “No Physical Exam”. That’s more expensive coverage. Actually you want to take a “physical”, called a paramedical exam, even if you’re in your 70’s or 80’s.  It’s free, they come to your door, takes about 20 minutes and can save you lots of money.   Here’s the proper order of choices for life insurance as a senior.

#1 option

Fully underwritten life insurance.   Applications require a blood test and short paramedical exam.   Carriers generally request your medical records, all at no charge to you.  This way life underwriters can gage your risk classification and make you an offer for coverage.   This will save you lots money over a no physical exam policy.  Genworth and North American offer lifetime guaranteed permanent coverage, called no lapse universal life, starting at a $25,000 benefit, Penn Mutual starts at $50,000, and multiple carriers, including Lincoln National and Aviva, offer coverage of $100,000 and more for seniors.   Unless you’re in really, really poor health, try this first.  There is no cost to you to apply, and the worst they can do is offer you a higher rate or turn you down.

Continue reading “AARP life insurance poor choices” →