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Life Insurance Policy Purchases At Highest Level Since 1983

Couple reviewing life insurance quotes
Getty

The global pandemic has Americans thinking about and buying life insurance.

Sales of U.S. life insurance policies increased 8% in the first six months of 2021, marking the largest year-over-year increase since 1983, according to LIMRA, an industry-funded research group.

“Following the record life insurance sales in the first quarter, most companies are reporting significant growth in premium and policy sales in the second quarter. Eight in 10 carriers reported positive premium growth including each of the top 10 carriers,” David Levenson, president and CEO of LIMRA, said in a statement.

Life Insurance Is On People’s Minds

Life insurance policies are at the top of consumers’ minds, with 36% of Americans saying they plan to buy life insurance this year, according to LIMRA.

“Covid-19 has raised consumers’ awareness about the importance of having life insurance,” Levenson said. “Nearly a third of consumers (31%) said they were more likely to purchase coverage due to the pandemic. This is so important because too many Americans live with a life insurance coverage gap, leaving their loved ones’ financial security at risk.”

Too many American families are not ready for an unexpected death, according to a survey of military members and civilians by USAA Life Insurance Co. In fact, Americans may be overconfident when it comes to financial preparedness.

Most survey respondents believe their family would be financially secure after they die. But when asked how long their family could afford basic living expenses if the primary breadwinner died, 40% say their family would not be able to meet financial obligations for more than a year.

“USAA recommends having enough life insurance to pay off all your debt and replace income for at least five years,” Brandon Carter, president of USAA Life Insurance Co., said in a statement.

Nearly half of Americans (47%) believe money is the most important thing to leave your family when you die. And 31% of Americans believe life insurance is the best way to pass down wealth in a family, according to USAA’s survey.

Less than half (46%) of Americans have no life insurance, according to USAA. And there may be a couple of reasons for this. Thirty percent of those surveyed said they believe it costs too much.

This is a tragic situation because life insurance is surprisingly affordable. The obvious solution to this misconception is to take a look at actual rates. Luckily, many websites , like QualityTermLife provide life insurance rate comparisons online.

Tips for Buying Life Insurance

Interested in buying a life insurance policy in 2021? Here are a few tips:

  • Buy your life insurance policy when you are healthy and young and can lock in a lower rate.
  • Having life insurance through your employer is almost always inadequate. Supplement it with an individual life insurance policy. This way you also maintain coverage when you switch jobs.
  • Determine the amount you need by using an easy-to-use needs calculator.
  • Comparison shopping can save hundreds of dollars each year on you life insurance. For example, you can compare rates from nearly 50 A-rated insurance companies getting free, online quotes at QualityTermLife’s website.

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More Americans Going Without Life Insurance, Especially Those Under 45

Consumers think it’s too expensive and too complicated to buy – but it actually isn’t.

Young family
Young family at a prime age for inexpensive life insurance coverage.

The percentage of Americans who have a life insurance policy is declining, according to a new study by J.D. Power. Its 2020 U.S. Life Insurance New Business Study found that the decline is largely driven by consumers under the age of 45, many of whom consider life insurance unnecessary, too expensive, or too complicated to purchase.1

KEY TAKEAWAYS

  • The percentage of Americans with a life insurance policy is declining, according to a new J.D. Power study.
  • The decline is largely driven by people under age 45.
  • Many consumers consider life insurance unnecessary, too expensive, or too complicated.

Life Insurance Remains a Mystery to Many

Depending on the type of policy, life insurance can be expensive and complicated, as study respondents said. However, term insurance, which is generally the best option for most consumers, is cheap and relatively simple. 

Unfortunately, the study found that the workings and benefits of life insurance policies still remain mysterious to consumers, which decreases the chances of them buying one. That can leave individuals and families financially devastated if a loved one passes away.

Life insurance professionals, including agents, advisors, and carriers, can help dispel some of the myths of life insurance and highlight the benefits, according to the study.

Specifically, J.D. Power recommends that insurance professionals make sure that prospects understand coverages and costs, and keep them up to date on the status of their application for insurance once it’s been submitted. 

Other Findings of the J.D. Power Study

Among the study’s other findings:

  • Just 44% of consumers shop around and compare life insurance quotes from multiple insurers.
  • Roughly three-fourths of consumers who purchased a policy said they picked it because it had the lowest price.

Reference: Investopedia

QualityTermLife Has You Covered

Life insurance is a critical financial tool. Amazing that a primary reason consumers say they don’t purchase more life insurance is because it’s too expensive! It is one of the most reasonable and worthwhile investments you can make.

The obvious solution to this misconception is to make life check out actual rates. In fact, many websites provide life insurance rate comparisons online.

You can find instant, term life quotes from dozens of A-rated life insurance carriers at QualityTermLife.com.

Check it out now to see for yourself how inexpensive life insurance can be.

Reference: Investopedia

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Questions About Life Insurance and COVID-19

As the COVID-19 pandemic has spread, we’ve been reminded that illness and death can come at any time, and that has some people thinking seriously about life insurance.

If you’re wondering if you have enough life insurance, you may be asking yourself if you can even get life insurance during the pandemic. Read on for the answer to that question and more.

I’m not sick, but could COVID-19 affect whether I can get life insurance?

While neither the application process nor the underwriting criteria has changed substantially during the pandemic, some companies have added another step, asking applicants if have COVID-19.

With many agents offices closed, can I just apply online?

Yes. You can start the process online. QualityTermLife offers online quotes from dozens of A-rated insurance companies. You can always call to have a conversation about your options, budget and coverage.” Once you are submitted, all paperwork is completed online and on the phone with the insurance company.

But will I have to get a physical exam?

In many cases, no. Most insurance companies set a coverage amount – anywhere from $100,000 to $500,000 – that can be applied for without a physical exam. Most insurers have a streamlined underwriting process. If you are younger than age 50 and in reasonably good health, you may only have to do a phone interview to answer questions about your medical history.”

However, if something comes up in your interview that requires closer inspection, the company could require a simple medical exam that can either be completed in your home or in a testing facility. Of course, they are taking every precaution to make sure people won’t be exposed to the virus (COVID-19).

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Roses Are Red, Violets Are Blue, Life Insurance Is The Right Thing To Do

Young families are generally not buying life insurance, new data indicates.

Courtesy of LIMRA

Valentine’s Day brings thoughts of roses and chocolate, but have your clients thought about giving peace of mind? According to LIMRA research, 9 in 10 life insurance owners say that is what they get from purchasing life insurance.

LIMRA is joining Life Happens with its “Insure Your Love” campaign, which highlights the importance of protecting the ones you love through the purchase of life insurance.

More than half of American adults (57%) own some type of life insurance. Three in 10 consumers have life insurance coverage at work, while 4 in 10 have individual insurance.

The majority of Americans believe that most people need life insurance, and identify several reasons for owning it such as paying for final expenses (91%), replacing lost wages (66%), and leaving an inheritance (63%).

So, what prevents consumers from owning life insurance (or purchasing more)? The top three reasons: it is too expensive (63%), they have other financial priorities (61%), or they already have enough coverage (52%).

When it comes to cost, consumers generally overestimate the cost of owning life insurance. The Millennial generation, much more than Baby Boomers or Gen X, is likely to overestimate the price tag for term insurance.

In fact, in a recent LIMRA survey, only about a 1 in 4 consumers have a good idea of what a $250,000 term life policy would cost for a healthy, non-smoking 30-year-old (see chart). The actual cost for the policy is roughly $160 per year.

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Life Insurance: Myths and Misconceptions

by Nicole Rubin, Guest Blogger

Life insurance is one of those things many of us don’t like to think about. Instead of looking into all the ways that life insurance could benefit us, we buy into the myths and misconceptions that tell us life insurance is too expensive, too complicated, or simply unnecessary.

The truth is, life insurance is none of those things — but it is really important. If you’ve been avoiding life insurance because of these myths, it’s time to learn the truth.

Top 5 Life Insurance Myths

Life insurance is expensive

Are you convinced you can’t afford life insurance? If you think life insurance costs are comparable to health or car insurance rates, you’re in for a pleasant surprise: If you’re a healthy non-smoker in your 30s, you could pay as little as $222 a year for $500,000 in coverage. That’s about $19 a month, or roughly the cost of a restaurant meal.

I can’t get life insurance because of a pre-existing condition

Many people pass on life insurance because they think that their pre-existing medical condition makes them too unhealthy to be accepted by insurers. The truth is that medical progress and the availability of preventative programs now allow many people with chronic conditions to live long and productive lives.

In step with that, life insurance companies will even offer preferred rates to people with health issues such as anxiety, asthma, depression, high cholesterol, hypertension, weight problems, sleep apnea and others.

I don’t need life insurance while young and single

Buying life insurance when you’re young and healthy can land you a better rate, but do you really need life insurance so soon? Even if you’re healthy, and childless, life insurance may still be a good idea. Accidents can happen any time; if they do, you’ll want to leave your family enough money to pay for a funeral and wrap up your affairs. If you have debt that’s cosigned by another person, such as student loans, life insurance is especially important.

Stay-at-home parents don’t need life insurance

There’s no question that life insurance is critical for your family’s breadwinner, especially if you have kids at home. However, even stay-at-home parents should be protected by a life insurance policy. The loss of a stay-at-home parent can be a huge hit to a family’s finances; not only must the surviving parent pay medical and funeral expenses, they also have to pay for childcare now that their spouse is gone. Life insurance covers these expenses so your family doesn’t suffer.

You need 10 times your income in life insurance coverage

10 times your yearly income is a commonly cited rule of thumb when it comes to buying life insurance. But rather than relying on simplistic guidelines, you can accurately estimate your life insurance needs by using a detailed online needs calculator to determine the amount you should get. It will take into account such things as lost income, debt obligations, the cost of college education, and funeral costs to determine how much money your family needs going forward.

While life insurance can seem like an unnecessary expense when you’re just trying to keep up with the monthly bills, buying life insurance is one of the best things you can do for your family’s financial security – just like you do when insuring your car, your home, and your health.

When you’re protected by life insurance, you can rest assured that your family will be cared for no matter what happens.

About the author, Nicole Rubin

I worked in the health insurance industry for years. Every day I fielded questions from people concerning their coverage and medical bills. I learned a lot about how the industry works, the limitations and challenges health insurance companies face, and the limitations and challenges faced by their customers.

Though a lot has changed since I worked in health insurance, I’m still very interested in the industry and the ongoing debate over how medical coverage should be handled in the U.S. I created Insureabilities to provide up-to-date information on the state of health insurance in the U.S. 

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September is Life Insurance Month

How Much Does A Term Life Insurance Policy Cost?

Do You Know The Average Cost Of A Life Insurance Policy?

According to MarketWatch, 40% of Americans do not have a life insurance policy and, for many years now, the majority of those who don’t have life insurance choose not to because they think it’s too expensive. LifeHappens.org has found that people assume that life insurance is up to 3x more expensive than it really is! 

Life Insurance Policy Cost
Term2Go

September is life insurance month, so here is our guide to understanding the true costs of life insurance.

Life Insurance Policy Cost
Term2Go

Actual rate from QualityTermLife.com’s quoting system:

  • A 20-year-old man can get a $250,000, 30-year term life insurance policy for the price of 3 gallons of gas in California (about $13/month).
  • A 40-year-old woman could get $1 million of 20-year term life coverage for the cost of 12 Grande Starbucks lattes (about $45/month).
  • A 55-year-old woman could get $200,000 of 15-year term life coverage for the price of six cocktails (about $32 /month).
cost
Term2Go

Experts quotes for finding the right life insurance policy: 

When choosing a coverage amount, it’s best to start with what you want to accomplish. Think about what needs your family will have if you were to pass away unexpectedly. A 30-year-old with a newborn will have different needs than a 60-year-old who is thinking of retiring soon. Use a detailed online needs calculator to determine the amount you should get.

There are two main reasons to get a life insurance policy as soon as you have the need. First, rates are based mostly on age and increase as you get older. Second, life is unpredictable. Taking pressure of worrying about how loved ones will cover the mortgage or put food on the table without you will help you sleep better at night.

Infographic with more info below

cost
Term2Go
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Term Life Insurance explained in 2 minutes

It’s true. This short, cute video sums it all up very nicely.
One of the most important tips comes at the very end, though. So let me call it out here: Comparison shop!

This so important because over the course of a typical 20 year term policy, saving even a few dollars per month can really add up!

QualityTermLife offers term life insurance quotes from dozens of top insurance companies, ensuring that you will get the best price.

Originally posted on Vimeo.

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Insuring a Special Needs Child

Special insurance considerations come with having a special needs child

Protecting the financial future of children is something concerns all parents. But in the case of a parent with a special needs child, planning for a future when you may no longer be around can extend into your child’s adulthood.

In this case, the typical term life insurance policy – with a cover equal to 8-10 times annual income plus debt obligations – won’t be sufficient. On average, children are dependent on parents financially for up to 25 years. But special children may be financially dependent for many years beyond that – with the very real likelihood that their parents will not be around when they are still dependent.

The amount and term (years) of the life coverage a parent in this situation should have requires that this longer view be taken into consideration. Of course, how much more coverage you need and for how much longer depends on your individual financial circumstances and on how independent your child is likely to be.

Fortunately, today, many special children can live quite independently, some even financially so. As a parent, you work hard to give your special someone as much freedom as possible. With the right life insurance, you can help to continue it long after you are gone.

For help on the details, use our needs calculator and quote engine, and then contact one of our insurance experts consult a Quality Term Life insurance expert who will help you find the most affordable policy.

Live life – with confidence

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“Quote Sites” Want Your Contact Info!

Buyer Beware: online quote forms that require contact information


Most quote forms on “instant life insurance quotes” websites require you to enter your personal contact information (i.e email and phone) before you can see their quotes. The obvious reason is so that the company’s agents can follow-up with a sales call if you don’t follow through with applying for the quote.

But there is another reason, with far worse consequences to you. Half of these sites don’t actually sell life insurance. Instead, they make money purely off collecting your contact information. These sites, known as lead aggregators, collect your personal information as well as the details of your quote and sell it to brokers and agent who will then put you onto their sales target contact lists. Sure, you’ll get your free quote, but it will come packaged in a high-pressure sales pitch – and will likely cost you more because the quote you get will be the one that makes the sales agent the most money!

A real example

If you select 3 firms at random ranked in the top 20 search engine results for “term life insurance quotes” and provide your contact information, here is what you can expect over the course of the next month:

  • 30 emails about buying term life insurance from 11 different sources.
  • Over 40 phone calls from 15 different sources.
  • The calls and emails to never stop.

The alternative: anonymous quotes

Now, in those top 20 search results there was only one that offered anonymous life insurance quotes, where contact information wasn’t required first. Unfortunately, it may take some clicking around to find a site like this – but it is well worth the time.

So to keep your personal contact information safe, follow these steps when looking online for life insurance quotes.

  1. Take a a quick glance at the quote form. If it asks for email and/or phone, make a hasty retreat.
  2. Keep going until you find a website where you can easily find your best deal available on insurance products and prices without ending up a victim to an unending stream of high-pressure sales calls and emails.
  3. Try Quality Term Life where it is easy to search and compare term life insurance quotes, entirely anonymously.

For an accurate quote, you will need to input date of birth, gender and state of rate calculation purposes, but you are never asked to provide your name, phone number, address, or email to just to get your quotes.

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Most Americans Don’t Have Enough Life Insurance

Fascinating infographic on the life insurance gap in the average American’s financial plan.

What stands out is the reason for the lack of insurance: People think it costs to much.

What we really have then is an information gap because, according to the survey, life insurance is not expensive. Most people pay less than $50/month. If you take a look at our Quote Engine, $40/month is going to buy a middle-aged consumer hundreds of thousands of dollars of coverage.

InfographicL Insurance gap

Source: Bankrate.com