Family Protection

Best Term Life Insurance in 2025

Choosing the best term life insurance policy in 2025 involves evaluating your individual needs, such as age, health, budget, and financial goals. This guide breaks down key factors to consider and highlights top providers to help you make an informed decision.

Key Factors to Evaluate

  • Coverage Amount & Term Length
    Choose a policy that covers your family’s financial needs, such as mortgage, education, and living expenses. Common terms are 10, 20, or 30 years.

  • Premium Costs
    Ensure the premiums fit your budget, as you’ll need to pay them consistently.

  • Financial Strength of the Insurer
    Opt for companies with high ratings from agencies like AM Best, Moody’s, or Standard & Poor’s to ensure they can pay claims.

  • Riders & Additional Benefits
    Consider policies offering flexibility through riders like critical illness coverage, waiver of premium, or accidental death benefits.

  • Underwriting Process
    Decide if you prefer a policy that requires a medical exam or one that doesn’t (no-exam policies may have higher premiums).

How to Choose Term Life Insurance?

  • Compare Quotes: Use comparison independent websites like InsureInMinutes.com or SinglePremiumPlans.com.

  • Work with an Independent Agent: They can shop around for you.

  • Review Reviews & Ratings: Look at customer experiences and insurer reliability.

A few of the Top Term Life Insurance Providers in 2025

1. AIG (American International Group)

  • Why It’s Top:
    • Competitive rates, especially for higher coverage amounts.
    • Offers flexible term lengths (10 to 35 years).
    • Includes living benefits through their Quality of Life Insurance.
    • Financially stable with an A rating from AM Best.

2. Penn Mutual

  • Why It’s Top:
    • Focuses on customer satisfaction with personalized policies.
    • Highly flexible term life options with convertible features.
    • Strong financial ratings (A+ from AM Best) ensure long-term stability.
    • Offers accelerated underwriting for quicker approvals.

3. Pacific Life

  • Why It’s Top:
    • Known for high-net-worth policies and financial strength (A+ by AM Best).
    • Flexible term lengths and excellent term-to-permanent conversion options.
    • Offers robust riders, including child life insurance and accidental death benefits.

4. Banner Life (Legal & General)

  • Why It’s Top:
    • Offers some of the lowest term life insurance premiums in the market.
    • Flexible term lengths up to 40 years.
    • Generous underwriting policies, particularly for applicants with certain health conditions.
    • Financially strong with an A+ rating from AM Best.

5. Prudential

  • Why It’s Top:
    • Offers a wide range of riders, including living benefits for terminal illness.
    • Ideal for high coverage needs or applicants with unique situations, such as smokers.
    • Financially solid with an A+ rating from AM Best.
    • Flexible policy options and customizable coverage.

Conclusion

Selecting the best term life insurance in 2025 requires careful evaluation of your financial needs, policy options, and insurer reliability. AIG, Penn Mutual, Pacific Life, Banner Life, and Prudential stand out as top providers, offering flexible terms, robust coverage, and competitive premiums. Use comparison tools, consult independent agents, and review customer feedback to find a policy tailored to your goals.

For expert guidance or real-time quotes, contact us at 866.526.7264 today and secure your family’s financial future with confidence.

Share:
Reading time: 2 min

Affordability Matters

Term life insurance is perhaps the most sold life insurance plan in America. One of the biggest reasons is that term life offers you the highest death benefit for the lowest premium.

Limitations of Term Life Insurance

It covers you for only a specific period of time at a level premium and works like renting or leasing. Usually, the time spans are 10,15, 20, 25 and 30 years. A couple of companies have also introduced 35 and 40 years term (age and state restrictions apply). AIG offers a term plan which allows a applicant to select any number years between 10 and 35. If you happen to die within that time, your beneficiary will receive the life insurance proceeds federal income tax-free.

But if you live through that period, the premiums you paid for those years are gone.
To counter that disadvantage, a few life insurance companies offer a return of premium term life insurance options. These plans cost you more, but at the end of the term, you get a refund of all the premiums you paid, minus any loans. No matter which type of term life insurance you take, at the end of the term you have no coverage on yourself.

Renewable Term Life Insurance

Now, most term life insurance plans are annually renewable at the end of the term. However, it is financially impossible for most people to maintain a term life policy after the term ends. The rates are exorbitantly high. For example, a 40 years old male can pay as little as $105.75 per month or $1,269 annually for a 30-year term insurance for a $1000,000 coverage. At the end of 30 years, if he wants to renew his policy, his premium jumps from $1,269 to $44,264 per year. Also, the premium keeps increasing every year thereafter. So renewability of a term insurance policy is really a joke. Refer to this image below for details.

Term Life Insurance Illustration

For some people, this product works like a charm. It protects the family’s ability to keep on paying the mortgage on the house or any other loan in case of sudden death of the income provider. It also provides much needed financial protection to the family when children are growing up. Basically, term life insurance works well when you want to cover temporary financial obligations.

For those who are looking for a longer term of coverage guaranteed universal life insurance is the best option.

LIFE INSURANCE QUOTES

Financial Heaven or Hell

I recently met someone who purchased a $1M, 20-year term life insurance with a thought that after twenty years he will not need any kind of life insurance because he will by that time make it financially. The guy is a 42-year old realtor and is not my client. I really hope and wish that everything works out for him the way he has planned his finances. BUT…what in case they don’t!

He has a mortgage, a young 11-year old daughter, and a non-working wife.

What if his wife outlives him by 10 years much later in life when he has no life insurance on him? If his financial gains are strong and the income is going to continue even after when he is gone, the spouse will do just fine. Otherwise, she will have to go through a financial hell that the realtor has not anticipated.

In the last 20 years, I have talked to a number of people who bought term life when they were young and later in life wanted permanent coverage that could last until the end of life. The only reason they bought term life insurance was because it was the least expensive option.

By the time, they come to this realization; many of them cannot afford to buy a permanent life insurance plan (coverage beyond age 100) or end up paying very high premiums. Your premium at this stage is based on your current age and health. The older you are, the higher you pay, even if you are in good health.

Options to Convert Term Life Insurance

Most term life insurance plans come with an option to convert the entire or partial amount of death benefit to a permanent life insurance plan (coverage beyond age 100). The time period within which you can convert depends on what the carrier offers.

The biggest advantage of conversion is that the insured doesn’t have to go through a medical exam to qualify. You may have any number of illnesses or diseases but you cannot be clinically disabled. Just agree to pay your new premium and you are set. Also, you can mostly convert the entire term policy or part of the policy into a permanent plan.
The biggest disadvantage is that the longer you wait to convert, the higher you pay.

I always suggest my clients to layer their life insurance plans, depending on what they can afford and what their needs are today and also their anticipated needs in the future.

It is important to mention that one can have multiple life insurance policies to take care of various kinds of needs in life.

Share:
Reading time: 4 min

Single-premium guaranteed universal life (SPGUL) insurance is a type of life insurance where you make one large payment upfront, and the insurance guarantees a death benefit for your entire life, regardless of how the cash value in the policy performs. It can be considered a financial legacy life insurance plan.

Here’s how it works:

  • One-Time Payment: You make a single lump-sum payment, and in return, you’re covered for life without needing to make any more payments.
  • Guaranteed Death Benefit: The insurance company guarantees that your beneficiaries will receive a set amount (the death benefit) when you pass away, no matter what happens to the policy’s cash value.
  • Limited Cash Value Growth: Unlike other policies, the cash value in SPGUL usually doesn’t grow much. The focus is more on the guaranteed death benefit, so the cash value isn’t as important here.

Example of Single Premium Life Insurance

Let’s say you’re 55 years old and decide to buy a single-premium guaranteed universal life insurance policy. You pay $100,000 upfront. The policy guarantees that, no matter what happens, when you pass away, your family will receive a death benefit of $300,000. Even if the policy’s cash value doesn’t grow or decline over time, the $300,000 death benefit is still guaranteed.

If you want to get an instant quote for a single premium guaranteed universal life insurance plan, click here. If you’re going to discuss it with a licensed professional, call us at 866.526.7264. We will be glad to hear from you.

This type of policy is great for people who want the certainty of a fixed death benefit with no future payments, but it’s not ideal if you’re looking to build significant cash value.

FREQUENTLY ASKED QUESTIONS (FAQ)

If you want both a guaranteed death benefit and cash value growth, you might want to consider a regular single-premium universal life (SPUL), or a participating single-premium whole life (SPWL) insurance policy instead of the single-premium guaranteed universal life (SPGUL) policy. Here’s why:

  • Single-Premium Universal Life (SPUL) and Single-Premium Whole Life (SPWL): These policies provide a death benefit, but it also allows your cash value to grow over time. The growth is based on the interest rates set by the insurance company or linked to certain investments, or dividends. You can borrow against or withdraw from this cash value if you need money in the future.

  • Cash Value Growth: With SPUL or SPWL, your policy builds up a cash value, which can grow over time. While  in SPUL, the death benefit is not always guaranteed at the same level (because it may depend on the performance of the cash value), this policy gives you more flexibility if you want to access that money during your lifetime. In SPWL, the death benefit not only stays guaranteed but may also increase over the years.

Single-premium guaranteed universal life (SPGUL) insurance has its advantages, such as lifelong coverage with no need for ongoing payments, but it also comes with several disadvantages. Here are the key drawbacks:

1. High Initial Cost

  • Disadvantage: You have to make one large, upfront payment. This can be a significant burden for those without substantial liquid assets.
  • Example: If the premium is $100,000, you must have that amount available immediately, which could limit your financial flexibility.

2. Limited or No Cash Value Growth

  • Disadvantage: SPGUL policies typically do not focus on building cash value. While you get a guaranteed death benefit, there’s little to no accumulation of cash value that you can borrow or withdraw from during your life.
  • Example: Unlike other types of life insurance where you can tap into the cash value, SPGUL policies usually don’t provide significant funds for emergencies or other needs.

3. Lack of Flexibility

  • Disadvantage: Once the premium is paid, you can’t modify the policy or reduce the death benefit to lower costs. It’s a “set it and forget it” type of policy.
  • Example: If your financial situation changes and you need cash, or if you no longer need as much life insurance, you can’t adjust the policy or recoup part of the premium.

4. No Potential for Policy Growth

  • Disadvantage: SPGUL policies are designed to provide a guaranteed death benefit, but they don’t benefit from market growth or higher interest rates like some other policies.
  • Example: In a regular universal life policy, the cash value could grow with the market. With SPGUL, there’s no opportunity for the policy’s value to increase beyond the guaranteed death benefit.

5. Modified Endowment Contract (MEC) Risks

  • Disadvantage: SPGUL policies are often classified as Modified Endowment Contracts (MECs), which can change how withdrawals and loans from the policy are taxed. Any withdrawals or loans could be subject to regular income tax and a 10% penalty if taken before age 59 ½.
  • Example: If you withdraw funds from the policy’s limited cash value, you might face tax penalties, unlike other life insurance policies that allow for more tax-favored withdrawals.

6. Missed Investment Opportunities

  • Disadvantage: Because SPGUL policies don’t accumulate much cash value, the large sum you pay upfront could be better invested elsewhere. By locking the money into an insurance policy, you miss the potential for higher returns through other investment vehicles.
  • Example: Instead of paying $50,000 into an SPGUL policy, you might be able to invest in the stock market or real estate, which could potentially yield higher returns over time.

7. Limited Death Benefit for Large Premiums

  • Disadvantage: Compared to other types of life insurance, the death benefit you receive for the premium you pay may be lower. SPGUL focuses on guaranteeing a death benefit but may not provide as much coverage as other types of policies where payments are spread over time.
  • Example: A $100,000 single premium might only provide a $250,000 death benefit, while a different type of policy could offer a higher death benefit for a similar total premium paid over several years.

8. Loss of Liquidity

  • Disadvantage: Once you make the single payment, you lose access to that lump sum. If an emergency arises or you need access to those funds for another purpose, the money is tied up in the policy, and there’s no easy way to retrieve it without canceling the policy.
  • Example: If you face a medical emergency and need immediate cash, the large sum you put into the SPGUL policy won’t be accessible for such needs.

9. Penalties for Policy Surrender

  • Disadvantage: If you decide to surrender the policy early, you might not get back the full amount you paid. The insurance company may charge surrender fees, especially in the first several years.
  • Example: If you pay $100,000 upfront and decide to cancel after five years, you may only receive a portion of your original payment due to surrender charges.

In Summary:

While SPGUL policies offer a guaranteed death benefit and the simplicity of one payment, the lack of cash value growth, high upfront costs, and limited flexibility can be significant drawbacks. This type of policy works best for those who want guaranteed life insurance protection and can afford to make a large payment without needing the funds for other purposes or investments.

Single-premium whole life insurance has its benefits, such as lifelong coverage and cash value growth, but it also comes with several disadvantages. Here are the key drawbacks:

1. High Upfront Cost

  • Disadvantage: You have to make one large, lump-sum payment to fund the policy, which can be financially challenging for many people.
  • Example: If you want a significant death benefit, the single premium could be tens or hundreds of thousands of dollars, tying up a large amount of money upfront.

2. Limited Liquidity

  • Disadvantage: While single-premium whole life policies build cash value, it can take several years before the cash value grows significantly enough to access. Early withdrawals or loans may reduce the death benefit.
  • Example: If you pay $100,000 upfront, you might not be able to access a substantial portion of the cash value for years, limiting its use in emergencies.

3. Tax Implications (MEC Status)

  • Disadvantage: Single-premium whole life policies are often classified as Modified Endowment Contracts (MECs), meaning any loans or withdrawals from the cash value are taxed as regular income, and if taken before age 59 ½, they may be subject to an additional 10% tax penalty.
  • Example: If you take out $10,000 from your cash value and are under 59 ½, you could face a tax bill and a 10% penalty, making it costly to access your money.

4. Opportunity Cost

  • Disadvantage: The large upfront payment could be invested elsewhere, potentially yielding higher returns. By locking it into a single-premium whole life policy, you may miss out on other investment opportunities.
  • Example: Instead of putting $100,000 into a life insurance policy, you could invest it in the stock market or real estate, which may offer better long-term growth depending on market conditions.

5. Limited Flexibility

  • Disadvantage: Once the premium is paid, you can’t reduce or increase the death benefit or make changes to the policy without penalties or consequences. If your financial situation changes, you can’t adjust the policy to meet your new needs.
  • Example: If you find yourself needing less life insurance in the future, you can’t reduce the death benefit or reclaim part of the premium.

6. Lower Death Benefit Compared to Traditional Policies

  • Disadvantage: The death benefit for single-premium whole life policies may be lower than that of traditional life insurance policies where you make regular payments over time.
  • Example: A single premium of $50,000 might give you a death benefit of $150,000, while paying premiums over time for the same amount could potentially provide a higher death benefit.

7. Policy Lapses If Loans Aren’t Repaid

  • Disadvantage: If you borrow from the cash value and don’t repay the loan, the policy’s death benefit could be reduced or even cause the policy to lapse.
  • Example: If you borrow $20,000 from the cash value but don’t repay it, the death benefit may be reduced by the loan amount plus interest, potentially leaving less for your beneficiaries.

8. Surrender Charges

  • Disadvantage: If you decide to surrender the policy within the first several years, there may be surrender charges that reduce the amount of money you get back.
  • Example: If you pay $100,000 and surrender the policy after 5 years, you might only get back $90,000 due to surrender charges.

9. Slow Cash Value Growth

  • Disadvantage: While single-premium whole life policies do build cash value, the growth is often slower in the early years compared to other investment options, especially if interest rates are low.
  • Example: It may take 10 or more years before the cash value grows significantly beyond your initial premium payment.

10. Inflation Risk

  • Disadvantage: The fixed death benefit does not account for inflation. Over time, the purchasing power of the death benefit could decrease, which means the payout may not provide the same level of financial support to your beneficiaries in the future.
  • Example: A $200,000 death benefit might be sufficient today but may not cover the same expenses in 20 or 30 years due to inflation.

In Summary:

The primary disadvantages of single-premium whole life insurance include the high initial cost, limited liquidity, and tax implications of accessing the cash value. Additionally, you may miss out on other investment opportunities, and the death benefit might be lower than what you’d get with regular premium policies. For those who prioritize cash value growth and flexibility, this policy might not be the best fit.

Share:
Reading time: 9 min
Limited Pay Life Insurance

By now, I must have talked to a few thousand people looking into life insurance to protect their loved ones. I have not met a single person who wants to pay a premium forever. Whether it is a car, a house, or a life insurance policy, as soon as you are done paying the final premium, there is a special kind of relief as if a pall of freedom just dawned over your life.

What is Limited Pay Life Insurance?

Most of these plans are either universal life or whole life insurance plans. Both are custom-designed to suit what the client wants. You can choose to pay a single premium for your life insurance policy or spread the payments over the years.

A couple of years back, a 34 years old female in good health came to me through a referral. She had a guaranteed universal life insurance plan that covered her until the age of 121. She was paying about $90 per month to keep that policy. She was glad about the fact that unlike a 30 years term insurance, her policy will keep her covered for entire life. So I asked her, “Are you comfortable with the fact that you will pay your premium until age 100.” “I wish I don’t have to,” was her answer. Very logical and reasonable.

Long story short, since she purchased that policy only in the last one year, I managed to find her the best class premium from an A+ rated carrier and she agreed to pay a premium of $125 monthly only until the age of 65. After that, the guaranteed universal life policy would continue until the age of 121. Not a single extra premium had to be paid after age 65. In my experience, most people would like to have something like that if they can afford it. Nobody wants premium on a life insurance policy forever.

Limited Pay Life Insurance

Single Pay Term Life Insurance

A handful of life insurance companies offer their customers to pay a single premium on a term life insurance plan. By choosing this option, you can end up saving up to 33% on the total premium of a 10, 15, 20, or 30 years term policy.

If you want a personalized quote on single premium term plan, give us a call at 1 866 526 7264.

Single Pay Universal Life Insurance

Most of these plans are guaranteed universal life plans with almost to no cash values. Their biggest benefit is:
• that you will never pay another premium, and
• your loved one will have the financial protection from your life insurance policy as long as you live.
(I am assuming that no one lives all the way to 121).

Single Premium Life Insurance

Single Pay Whole Life Insurance

Most of these plans are participating or non-participating plans with cash values. Their biggest benefit is:
• that you will never pay another premium, and
• your loved one will have the financial protection from your life insurance policy as long as you live.
• that if you have a participating whole life plan, your death benefit or face amount of the policy will also increase over time. That works as a kind of inflation protection.
• that you can borrow loans from your own cash values in the policy and pay back with time.
• that this method of self-financing can be successfully used of you start with a whole life plan early in life.

What is Modified Endowment Contract (MEC)?

A simple explanation is that is it an overfunded life insurance policy. The only time MEC makes a difference is when you have large cash values in the policy. Without those MEC is inconsequential.
A modified endowment contract gets the same treatment as a non-qualified annuity contract.
Income tax

How to Avoid a MEC?

• Make limited premiums into the policy for few years ( 7 years and above).
• If you want to get a single premium whole life insurance, make sure that the company offers a premium deposit fund.

“It is an account that allows you to pre-pay policy premiums with one lump sum, without causing the policy to be a Modified Endowment Contract (MEC). This allows your policy to keep the favorable tax treatment provided by life insurance while earning a competitive interest rate.
Each year, the specified annual premium is automatically transferred from this account to your life insurance policy. This is a convenient and systematic way to fund your policy, while providing you with peace of mind.” (source: Penn Mutual)

BOTTOMLINE
It's peace of mind for a lifetime.

Limited pay life insurance plans are simply custom designed plans that allow you to pay your premiums for as long as you want to pay into the policy while making sure that the policy remain active for whatever number of years you choose. Usually, guaranteed universal life and whole life insurance plans offer coverage until the age of 121.

Life insurance carriers 
Single Premium Life Insurance

Share:
Reading time: 4 min

What is Collateral Assignment in Life Insurance?

Collateral assignment of life insurance allows the beneficiary to transfer a part or full death benefit to a lender. This contract  dissolves as soon as the loan is paid in full. 

In the realm of life insurance, collateral assignment emerges as a powerful tool that goes beyond the traditional scope of coverage. Understanding this strategy can unlock new avenues for financial flexibility and security. In this blog post, we delve into the intricacies of collateral assignment in life insurance and its potential benefits.

Defining Collateral Assignment:

Key Features and Components:

It is a strategic financial move that involves using a life insurance policy as collateral for a loan. Essentially, it allows the policyholder to pledge their life insurance benefits as security, enabling them to access funds for various financial needs.

The Process of Collateral Assignment:

  1. Agreement Between Parties:

    • The policyholder and the lender enter into a collateral assignment agreement, outlining the terms and conditions.
  2. Notification to the Insurer:

    • The life insurance company is notified of the collateral assignment, and the lender is recognized as having an interest in the policy.
  3. Execution of Agreement:

    • The collateral assignment agreement is executed, formalizing the arrangement.

Considerations and Caution:

  1. Impact on Death Benefit:

    • Collateral assignment may reduce the death benefit payable to beneficiaries if the loan is not repaid.
  2. Loan Repayment:

    • It is crucial to adhere to the agreed-upon repayment schedule to avoid complications.
  3. Professional Guidance:

    • Seek advice from financial advisors or insurance professionals to ensure suitability and proper execution.
  1. Policyholder Control:

    • The policyholder retains control over the life insurance policy even after assigning it as collateral.
  2. Lender’s Security:

    • By assigning the policy as collateral, the lender gains assurance that the loan will be repaid, backed by the policy’s cash value or death benefit.
  3. Flexibility in Use:

    • The borrowed funds can be utilized for diverse purposes, including investments, business ventures, education, or any other financial need.

Benefits of Collateral Assignment:

  1. Access to Liquidity:

    • Policyholders can access funds without surrendering the life insurance policy.
  2. Retained Policy Control:

    • Policyholders maintain control over the policy’s beneficiaries and maintain the right to make changes.
  3. Versatility in Use:

    • Borrowed funds can be employed for various financial opportunities, offering flexibility.

Conclusion:

Collateral assignment in life insurance adds a layer of financial strategy that empowers policyholders to leverage the value of their policies for immediate financial needs. By understanding the nuances and seeking professional guidance, individuals can make informed decisions that align with their broader financial objectives.

Share:
Reading time: 2 min
Seniors looking for final expense insurance.

Everything You Need to Know About Final Expense Life Insurance

Are you worried about leaving your loved ones with a financial burden after you pass away? Final expense life insurance with no waiting period could be the solution you’ve been looking for. Depending upon what you qualify for, these plans may or may not have a waiting period.

What is Final Expense Life Insurance?

Final expense life insurance is a type of insurance coverage specifically designed to cover the expenses associated with your death, such as funeral costs, medical bills, and other end-of-life expenses. It provides your loved ones with a lump sum payout that can help alleviate the financial burden during an already difficult time.

Unlike traditional life insurance policies, final expense life insurance is typically more affordable and easier to qualify for. It is also known as burial insurance or funeral insurance, as it is specifically intended to cover the costs associated with your final arrangements.

Understanding the Waiting Period

Black senior citizen

One of the key features of final expense life insurance is the waiting period. It is a time that must pass after you purchase the policy before your coverage becomes fully active. During this waiting period, if you were to pass away, the policy may only provide a partial payout or refund of premiums paid, rather than the full death benefit.

The length of the waiting period varies depending on the insurance company and the specific policy. It can range from a few months to a couple of years. However, with final expense life insurance with no waiting period, your coverage starts immediately after you sign up, ensuring that your loved ones are fully protected from day one.

The reason for a waiting period is usually the severe condition of the insured’s health. 

Monetarily speaking, the insurance company wants to make sure that it has collected a few premiums before it has to pay a high face amount if the insured passes away within the first two or three years.

Final expense insurance | No waiting period

This option offers several benefits that make it an attractive option for individuals looking to protect their loved ones from the financial burden of final expenses.

1. Immediate Protection: With no waiting period, your coverage begins as soon as you sign up for the policy. This means that your loved ones will receive the full death benefit in the event of your passing, providing them with immediate financial support during a challenging time.

2. Affordable Premiums: Final expense life insurance policies with no waiting period often come with affordable premium rates. This makes it accessible for individuals who may have difficulty qualifying for traditional life insurance due to age or health conditions.

3. Flexible Coverage Options: These types of policies typically offer flexible coverage options, allowing you to choose a death benefit amount that suits your needs. You can tailor your coverage to ensure that your funeral expenses, outstanding medical bills, and other end-of-life costs are adequately covered.

4. Tax-Free Payout: The death benefit of final expense life insurance is generally tax-free. This means that your loved ones will receive the full payout without having to pay income taxes on the amount received.

Final expense life insurance with no waiting period

Final expense life insurance with no waiting period is designed to be accessible for individuals who may have difficulty qualifying for traditional life insurance policies. Here are some key factors to consider when determining your eligibility for this type of coverage:

1. Age: Final expense life insurance is typically available for individuals between the ages of 50 and 85. Some insurance companies may offer coverage to individuals outside this age range, so it’s worth exploring your options.

2. Health Condition: Final expense life insurance policies with no waiting period often have simplified underwriting, meaning they do not require a medical exam or extensive health questionnaires. This makes it easier for individuals with pre-existing health conditions to qualify for coverage.

3. Tobacco Use: While tobacco use may affect your premium rates, it does not necessarily disqualify you from obtaining final expense life insurance with no waiting period. Some insurance companies may offer coverage at higher rates for smokers.

4. Coverage Amount: The death benefit amount you choose may impact your eligibility for final expense life insurance with no waiting period. Some insurance companies have maximum coverage limits, so it’s important to consider your desired coverage amount when exploring your options.

Share:
Reading time: 3 min
Index Annuity

Indexed annuities are complex financial products that combine features of both fixed and variable annuities. Several key elements define how indexed annuities work:

  1. Indexing Method:

    • Choice of Index: An indexed annuity allows the annuity holder to link the interest crediting to the performance of a specific financial index, such as the S&P 500 or the Nasdaq. The choice of index can impact the potential interest credited to the annuity.

    • Indexing Method: The method used to calculate the interest based on the index’s performance. Common methods include point-to-point, monthly averaging, and annual reset.

  2. Participation Rate:

    • Participation Rate: This is the percentage of the index’s return that the annuity will be credited. If the index has a gain, the participation rate determines how much of that gain is applied to the annuity’s value.
  3. Caps and Floors:

    • Cap Rate: Some indexed annuities have a cap rate, which sets a maximum limit on the interest that can be credited, even if the linked index performs exceptionally well.

    • Floor Rate: Conversely, there might be a floor rate that ensures a minimum level of interest, even if the index performs poorly.

  4. Spread or Margin:

    • Spread or Margin: Some indexed annuities use a spread or margin to calculate interest. This is a fixed percentage deducted from the index’s return before crediting interest to the annuity.
  5. Crediting Methods:

    • Annual Reset: Interest is credited annually based on the performance of the index from the beginning to the end of the year.

    • Point-to-Point: Interest is credited based on the difference in the index value from a starting point to an ending point.

    • Monthly Averaging: Interest is calculated by averaging the monthly values of the index.

  6. Surrender Period and Charges:

    • Surrender Period: An indexed annuity often comes with a surrender period during which withdrawals may be subject to charges. The surrender period can vary in length, typically ranging from 5 to 10 years.

    • Surrender Charges: Fees imposed if the annuity holder makes withdrawals exceeding the allowed free withdrawal amount during the surrender period.

  7. Guaranteed Minimum Interest Rate:

    • Floor Guarantee: Most indexed annuities guarantee a minimum interest rate, ensuring that the annuity holder will receive at least a specified amount of interest, even if the index performs poorly.
  8. Issue Age and Payout Options:

    • Issue Age: The age at which an individual can purchase an indexed annuity.

    • Payout Options: Upon annuitization (conversion of the annuity into a stream of income), the annuity holder can choose from various payout options, such as a life annuity or period certain annuity.

It’s important for individuals considering indexed annuities to thoroughly understand these elements, as they significantly impact how the annuity performs, the potential returns, and any associated fees or restrictions.

Share:
Reading time: 2 min
Infinite Banking

Infinite Banking, often referred to as the Infinite Banking Concept (IBC), is a financial strategy that uses whole life insurance policies as a tool for personal banking and wealth building. Here’s a simplified explanation:

  1. Whole Life Insurance: Infinite Banking starts with the purchase of a whole life insurance policy. Unlike term life insurance, which covers you for a specified term, whole life insurance provides coverage for your entire life.

  2. Cash Value: Whole life insurance policies accumulate cash value over time. A portion of your premium payments goes into this cash value component. This cash value grows at a guaranteed rate, and it’s tax-deferred, meaning you don’t pay taxes on the growth as long as the money remains within the policy.

  3. Policy Loans: With Infinite Banking, you can borrow money from the cash value of your whole life insurance policy. These are typically referred to as policy loans. Importantly, when you take a policy loan, you’re essentially borrowing from yourself, and the cash value in your policy serves as collateral.

  4. Interest Payments: When you take a policy loan, you pay interest on the borrowed amount. However, this interest goes back into your policy, not to an external lender. In essence, you’re recapturing the interest rather than paying it to a bank.

  5. Flexibility: The key idea behind Infinite Banking is to become your own banker. You can borrow money from your policy for various purposes such as financing major purchases, investments, or emergencies. Once you repay the loan, the money goes back into your policy, replenishing your cash value.

  6. Wealth Building: Over time, as your cash value grows and you continue to use your policy for financing needs, it can become a source of wealth accumulation and a way to achieve financial independence.

Infinite Banking is often associated with the idea of becoming self-reliant in managing your financial affairs, as opposed to relying on traditional banks or financial institutions for loans. It’s important to understand that while this concept can be a valuable financial strategy for some, it’s not without its complexities, and the specific benefits and risks can vary depending on the individual’s financial situation and the terms of the insurance policy.

Share:
Reading time: 1 min
Black Family

The need for life insurance depends on your individual circumstances, financial situation, and responsibilities. Here are some factors to consider when deciding if you need life insurance:

  1. Dependents: If you have dependents, such as a spouse, children, or aging parents, life insurance can provide financial security for them in the event of your death. It can help replace your income and cover their ongoing expenses, such as housing, education, and daily living costs.

  2. Debts: If you have outstanding debts like a mortgage, car loans, or credit card debt, life insurance can ensure that these debts are paid off if you pass away, preventing the burden from falling on your family.

  3. Financial goals: It can also be a tool for achieving long-term financial goals. It can provide funds for your children’s education, supplement your retirement savings, or leave a financial legacy to your beneficiaries.

  4. Co-signed loans or joint financial responsibilities: If you share financial obligations with someone else, such as a business partner or a co-signer on a loan, life insurance can protect them from shouldering the financial burden in case of your death.

  5. Estate planning: It can facilitate the transfer of assets and wealth to your heirs or beneficiaries, especially in cases where your estate might be subject to estate taxes.

  6. Peace of mind: It can provide peace of mind knowing that your loved ones will be financially secure if something were to happen to you.

On the other hand, if you’re single, have no dependents, no significant debts, and you have enough assets to cover your final expenses, you may not have an immediate need for life insurance. In this case, the decision to purchase life insurance might be driven by other factors like leaving a legacy or using it as an investment or tax planning tool.

Any questions? Call 1-866-526-7264.

Share:
Reading time: 1 min
Family protected with life insurance

The best life insurance policy for you depends on your individual circumstances, financial goals, and needs. There are several types of life insurance policies to consider, and the choice should be based on what you hope to achieve with your life insurance coverage. Here are some common types of life insurance policies:

  1. Term Life Insurance: It provides coverage for a specific term, such as 10, 20, or 30 years. It is typically more affordable than other types of life insurance and pays out a death benefit to your beneficiaries if you pass away during the term. This type of temporary life insurance is a good choice if you need coverage for a specific period, like to protect your family while you have dependents or to cover a mortgage.

  2. Whole Life Insurance: It is a permanent policy that provides coverage for your entire life. It has a cash value component that grows over time and can be borrowed against or withdrawn. Whole life insurance is more expensive than term life but offers lifelong protection and a savings component. It’s suitable for those who want permanent coverage and are willing to pay higher premiums.

  3. Universal Life Insurance: it is another type of permanent life insurance that offers flexibility in premium payments and death benefits. It allows you to adjust the death benefit and premium payments as your needs change. It also has a cash value component that can grow over time. This type life insurance is for individuals who want flexible coverage and investment opportunities.

  4. Variable Life Insurance: Variable life insurance combines life insurance with an investment component. It allows you to invest the cash value in various investment options, such as stocks and bonds. While it offers the potential for higher returns, it also comes with more risk. This life insurance is for those comfortable with managing investments and willing to take on market risk.

  5. Guaranteed Issue Life Insurance: It is a type of whole life insurance that is typically available to individuals with health issues who may not qualify for traditional life insurance. It has higher premiums and lower death benefits, making it an option for those who have limited alternatives due to health issues.

The bottomline is that the best life insurance policy for you depends on factors like your financial goals, family situation, health, and budget.

Share:
Reading time: 1 min
Page 1 of 212