Life Insurance: Coverage for you and your family

Submitted by zhl203 on Tue, 12/08/2009 - 04:26
When you have family members depending on your income, saving for the future of your loved ones is a good idea. Investing in life insurance will give you enough financial support to take care of the future of your loved ones when you are no longer around. A life insurance plan also makes provision for a cash value where a part of your premium is put into a savings account. Hence, while you invest for a secured future, you can make savings too.

What is life insurance?

Life Insurance means insuring your life to save for the future of your family. If you have family members depending on your income you may invest in life insurance. This is a contract between you and your insurance company where your insurer agrees to pay a certain amount of money to your beneficiary in the event of your death.
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What are the types of life insurance?

  • Term Life Insurance:

    For those who are running on a budget, you can opt for a simple life insurance. Term life insurance allows the beneficiary death benefits for a specific period or 'term'. This term may be 1 or more years and the benefits are paid only in the event of death of the policy holder within the term of the policy.

    There are certain term life insurance that can be renewed for more than one additional term. However, if you do so, your premiums may go higher. You may even sometimes be allowed to trade your term life insurance for a whole life insurance policy.

    Term Insurances are of 5 types:

    1. Annual renewal term insurance: Allows you to renew your term insurance every year till you reach a specific age which often freezes at 65.
    2. Renewable term insurance: With expiry of the term of the policy (generally 5-20 years), you can automatically renew the policy even if your health condition has worsened. It is similar to the annual renewable policy but this one is for a longer period of time.
    3. Level premium term insurance: Ensures that your premiums will not go higher for the term (between 5 and 20 years) of your policy.
    4. Decreasing term insurance: Allows your premiums to stay level throughout while decreasing your cash benefits each year. Such policies are usually used to cover items whose costs decrease with time.
    5. Convertible term insurance: With this policy you may convert your term insurance into any other type of life insurance policy that the company offers.

  • Whole Life Insurance:

    A whole life insurance covers a policy holder for his entire life. There is no date of expiry like in a term life insurance and the death benefits will be received by the beneficiary mentioned in the policy only in the event of the death of the policy holder. If you buy a whole life insurance you will have to pay a higher premium as compared to a term life insurance. The reason for this is that a certain portion of the premium paid for whole life insurance is put away into a savings program.

    When you compare the total premiums paid for whole life insurance and the total premiums paid for term life insurance it is seen that whole life insurance is less expensive. Even if you pay higher premiums for whole life insurance, the fact is that the premiums remain the same throughout the tenure of the insurance. But in the case of term life insurance, you may be paying lesser premiums in the beginning, but as you renew your term policy, premiums will increase. Hence, the total value accrued in term policy is bigger than a whole life insurance.

    Certain clauses in a whole life insurance allow you to pay premiums for a lesser period of time. The greatest advantage in this policy is that the premiums develop cash values that may be claimed or used for purchasing rider policies for more protection. Few of the whole life insurance benefits are:

    • Guaranteed death benefits
    • Guaranteed cash values
    • Fixed annual premiums

    A whole life insurance also known as "straight life" or "ordinary life" insurance, is not just an investment for your future alone, but also for the future of your family.

    To understand the basic difference between term life insurance and whole life insurance click here.

  • Universal Life Insurance:

    Universal life insurance is a flexible policy that provides security for you and your family. To know more please click here.

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How to save money on life insurance policy?

When you shop for life insurance coverage, there are certain ways by which you can save money on your policy. You must look for a policy that meets your needs and the right kind of benefits received. If you think that buying a policy with a low premium will save your money think again. If you buy inadequate insurance, it will be a sheer waste of money. However, you can maximize your life insurance dollars using some of the tips provided here.
  1. Seek financially sound companies: Look for companies that are financially strong so that when your beneficiary(s) make a claim, he may receive the benefits of life insurance without hassle.

  2. Shop around: Get life insurance quotes from more than one insurance provider. You may even ask an insurance agent or an insurance broker to get you few insurance quotes from different carriers. You may then compare the quotations and find a policy that suits your needs as well as pocket.

  3. Seek group insurance: Employer provided group life insurance is often given at subsidized rates so you may find a less expensive policy here. Even if you have to pay premiums out of your own pocket this might be a good idea for the subsidized rate they provide. However, premiums paid by you will probably be through payroll deduction which is convenient. But a comparison of group and individual rates depending on your age, health must be done to assess which is the best policy for you.

  4. Change in lifestyle: Maintain a healthy lifestyle. Smoking may rate you as a risk option and you may have to pay higher premiums. Exercise regularly and consider making more lifestyle changes if necessary.
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How to decide on the type of life insurance to choose from?

You may go for term life insurance if:
  • You need to make a short term investment and not a permanent one. With term life insurance benefits you can ensure the education of your children if you can invest in time. If there is a debt that you have to pay off, you may invest in term life insurance. Term life insurance covers you for a term of 5 to 20 years.

  • You need a big amount of life insurance with a premium that suits your pocket. A term insurance usually pays only in the event of death of the policyholder. However, if you are alive at the time the policy ends, term life insurance coverage will stop until you renew it. But here, you will not build a savings like in a whole life insurance.
You may opt for whole life insurance if:
  • You need life insurance stretching for the tenure of your life. A whole life insurance would pay the beneficiary the death benefit no matter when the policyholder dies.

  • You feel the need to accumulate a savings on a tax-deferred basis. A whole life insurance has its own savings program that puts aside a certain portion of the amount you pay as premiums into the savings program.
Click here to know more.
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Can you pay your mortgage with life insurance?

Yes. With mortgage life insurance your mortgage loan can be paid for in the event of your death in a time when the loan is not paid off fully. This insurance is available for 15 and 30 years where for the first 5 years, the amount of insurance is level and then decreases on an annual basis. The premiums for mortgage life insurance can be paid annually, semi-annually, quarterly or monthly.

How should you choose a life insurance company?

When choosing a life insurance company, take the following into consideration:
  • Identity of companies - Make sure to know the full name, office location and affiliation of the insurance company that you plan to buy from.

  • Product sold - Check out what products the company is selling. Most often the companies provide a wide range of policies. Check for what you need and if they have it you may consider buying from them.

  • Financial Security - Select a company that is strong financially and has been in business for long. Your life insurance is an investment to secure your lifetime. Be sure that your insurance company will make life easy for you and not otherwise.

  • Ethics - Check if your company abides by the codes of conducts and principles of the Insurance Marketplace Standards Association. This non-profit organization promotes ethical conduct in life insurance marketing.

  • Agent - An agent is supposed to help you out with your insurance needs on behalf of the company. You must consider taking help from a reliable person only. If there is any discomfort in dealing with the agent, move to another one.

  • Cost of insurance - Based on your age, type of policy and features, and the amount of insurance to be purchased, compare one insurance company with the others. Find out one which offers a better coverage.

  • Claims - A national claims database will give you the complaints (if any) against an insurance company. You may want to check to find if the company you are considering buying from is listed for consumer complaint.
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How does a life insurance company choose you?

Your application for a life insurance policy has to go through the insurance underwriting process before it's approved. The underwriters evaluate the risks associated with your application and forward it to the insurance processing department of the company.

Factors that influence underwriting procedure for Life Insurance
  1. Age of the individual to be insured.
  2. Gender of the person
  3. Pre-existing medical conditions
  4. Medical records of the family
  5. Smoker or non-smoker
  6. Mental health of the person
  7. Occupation
  8. Hobbies or lifestyle habits (activities like race car driving, mountain climbing or bungee jumping might be marked as risky)
  9. Driving records
  10. Credit history
  11. Selection of coverage limits, benefits etc.
  12. Medical reports after thorough health check-up including tests like :
    • > Blood pressure level
      > Blood sugar level
      > Cholesterol level
      > Weight of the individual
      > Urine tests
      > Blood tests
      > EKG/ECG
      > X-Rays
      > Stress tests etc.

Click here to know how the above mentioned factors affect the rates of a life insurance policy.

Your life insurance policy might not come to your assistance in your lifetime. However it'll help securing the future of your loved ones when you won't be there to take care of them. A small amount spent at regular intervals will thus be able to give you the sense of security, as you hand over the risks to your insurer. Top

Related Discussions

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My parent bought whole life insurance that pays dividends many years ago. The sales representative told my parent that she can stop paying premium in approximately 12 years because the it policy would be able to pay for itself at that time. And at the same time the policy will make annual distributions to my parent. What does that mean? Is there such thing?

The reason why I'm asking is because they're into the 13th year now and they are still paying the expensive premium. When I called the representative, they told me that the account has accumulated certain cash value and dividend, but the accumulated dividend can only cover approximately 3 years of premium.

I did some research, I understand that the cash value is like equity, but is it truly equity like we really own the money? if yes, when can we cash out the equity? if we cash out, the policy terminates? I understand that when the insured dies, the beneficiary would get paid the face amount, but what happen to the cash value? who gets it? Also, what happen if the insured dies of old age (not due to accident), is it still covered by the policy? what happen to the cash value?

Thanks in advance for your help.

Posted: 28 Dec 2012 06:29 Post Subject: policy bond lost.

What should I do if I can’t find a family member’s life insurance policy?

Posted: 28 Dec 2012 12:56 Post Subject: lost policy

Use the MIB's 'Policy Locator Service' to track down insurance applications for over the last 12 years against a service charge.

Posted: 22 Mar 2013 05:58 Post Subject: Paid up at 65

I turn 65 in October and my insurance policy is paid up at that time. Will the face value, cash value, and dividends be there at the time of my burial

Posted: 22 Mar 2013 09:10 Post Subject:

Will the face value, cash value, and dividends be there at the time of my burial

When are you planning to be buried? You may have some misunderstandings about your insurance.

Face value = the maximum amount payable as the death benefit
Cash value = the amount you would receive (minus any surrender penalties) if you cancel your insurance or borrow against the death benefit
Dividends = refund of excess premiums paid (you have several options as to how to receive dividends including: cash, extra "paid up" insurance, use to pay future premiums, pay loans/loan interest, possibly add to cash value)

A policy "paid up at age 65" simply means no future premiums will be necessary to keep your policy in force to age 100. But at age 65, the cash value is probably not more than about 60%-70% of the face amount (the death benefit).

At the time of your death, the beneficiary receives the larger of (1) the face amount of insurance or (2) the cash value . . . either of which is paid minus any outstanding policy debt (loan principal and unpaid interest). Paid up additional insurance increases the total paid to your beneficiary. In whole life, the beneficiary never receives the face amount PLUS the cash value.

Not unless you have any form of Universal Life policy with Death Benefit Option B (or Option II), known as "increasing death benefit". In that case, your beneficiary receives both the face amount of insurance and the cash accumulation, if any.

Dividends are generally only paid at the policy anniversary, so unless you die on or immediately after the policy anniversary, your beneficiary will not see the next dividend payment based on last year's insurance company results.

Posted: 15 Apr 2013 03:38 Post Subject: beneficaries

i was the beneficiary of a life policy the beneficary was changed in 2012...person died 2013 and met life states that it paid the previous beneficary i have in writtin that it was changed now the person is dead and met life wants me to appeal.....its not my mistake....

Posted: 15 Apr 2013 09:15 Post Subject:

Unless the change of beneficiary was made properly and in writing to MetLife prior to the death of the insured, what you have in hand means nothing, unless it is a copy of the letter from MetLife to the insured indicating the change of beneficiary was made.

now the person is dead

Are you talking about the beneficiary being dead or the insured? In either case, really, your only claim is against the person who received the money or their estate, not the insurance company if it believed it paid the right person. State insurance laws protect the insurance company in most such situations.

The only reason for an "appeal" with the insurance company is if the money has not already been paid to someone.

Posted: 16 Apr 2013 01:40 Post Subject:

If Metlife screwed up, you can go directly against MetLife. That may be why they are asking you to appeal so that they have something in writing.

Posted: 27 Apr 2013 07:11 Post Subject: life insurance

i've always found life insurance to be too introverted a pursuit, call me spammer call me what you will, seems a waste of time

:!:

Posted: 29 Apr 2013 05:22 Post Subject:

Well! Am not going to call you a spammer...;)

Posted: 07 May 2013 05:43 Post Subject: Are people still here?

All of the posts I see are old.

Thanks!

Posted: 07 May 2013 05:45 Post Subject:

Are people still on this forum?

Thanks!

Posted: 07 May 2013 04:04 Post Subject: Are there any Life agents here?

If so, please let me know what you think about this opportunity. I have more information about it bit this is an overview.
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Thanks!

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Posted: 16 May 2013 07:11 Post Subject:

What opportunity?

Posted: 05 Sep 2013 04:36 Post Subject:

Can I get life insurance for my 88 year old Mother

Posted: 05 Sep 2013 06:42 Post Subject:

Yeah, you can! But (depending on her health) that would burn your pocket. A better idea is keeping the money in a savings account. It'd help for the medical expenses, any debts, and the last rituals.

Posted: 05 Sep 2013 02:46 Post Subject:

(depending on her health) that would burn your pocket.

The part about burning a hole is reasonably accurate. As for the health issue, if you can even find a company willing to write new coverage on a person after age 84, it will be a guaranteed issue product with a limit of no more than $25,000, so health is not an issue.

If the primary (or only) concern is coverage for burial expenses, a local mortuary/funeral home may have other "pre-need" options that are less costly.

Posted: 07 Feb 2014 07:04 Post Subject: life insurance

My father had a life insurance policy thru independent forresters which he didn't know about and the executor changed it for her to be sole beneficiary saying I was a witness I know this wasn't done I have original policy what should I do?

Posted: 07 Feb 2014 07:23 Post Subject:

My father had a life insurance policy thru independent forresters which he didn't know about



First things first: I'm assuming your father is no longer with us?

If not, has Foresters already paid a death claim?

At some point, someone took a life insurance policy out on him without his knowledge?

the executor changed it for her to be sole beneficiary



The executor - a female - made changes to the policy? The key word here is Changed . To me, this indicates that at some point, the beneficiary was someone other than the evil executor.

Who named the original beneficiary? It obviously must have been the person who took out the policy without your father's knowledge.

If the policy was a big secret. how did the evil executor know about it - if she wasn't the original beneficiary or policy owner?

I know this wasn't done I have original policy



Was it you that took the policy out on your father without his knowledge? Is that how you ended up with the original policy?

What [exactly] did you supposedly witness?

Posted: 07 Feb 2014 08:12 Post Subject:

The real question that needs to be asked is "WHO IS THE POLICYOWNER?" That's the only person who has the right to make changes to the policy, such as naming the beneficiary.

An EXECUTOR only comes into "power" after a person has died, such as the executor of a will. But once a person has died, no changes may be made to a life insurance contract.

There is too much missing information to be able to address this more specifically at this time.

Posted: 07 Feb 2014 09:23 Post Subject:

Max, you are always so abrupt! LMAO
We would have gotten there ...eventually

Posted: 30 Mar 2014 10:06 Post Subject: agent

fails to change beneficiary per insured person request and insured person passes away what could I possible do about I talk to the agent and she doesn't understand why it isn't in system file also spoke with person at insurance company they told me to get agent and have her find the paper work where changes were made

Posted: 01 Apr 2014 04:17 Post Subject: Mortgage Life Insurance

If a decreasing term policy cost as much as a level term policy, why would any individual opt for mortgage life insurance?

Posted: 02 Apr 2014 09:10 Post Subject:

5-, 10-, 20-, or even 30-year term policies, are merely the industry's way of avoiding the objection people have to the annual increase in the cost of term insurance.

The insurance company adds up the number of term premiums that will be required on the policy in total, divides by the number of years for which a level premium is guaranteed, discounts for the time value of the money using the interest rates available at the time, and charges the resulting level premiums rather than the actual yearly renewable term rate. in this, you can see the evolution toward level premium life insurance. In effect, the insurance companies charge more in the beginning so that they don't have to charge such a high amount at the end.

Yearly renewable term insurance normally is the most efficient way to provide for life insurance needs. When maximum protection is desired with the minimum current outlay of cash, we can level the cost of term insurance through the use of the mortgage term insurance. With mortgage insurance, coverage is taken away (i.e., the amount of life insurance is reduced) and the same amount is charged each year for the smaller amount of life insurance, as the policy owner gets older. Thus, the cost per $1000 of coverage does increase with age, but the premium stays the same because there is less coverage.

Posted: 10 Apr 2014 03:58 Post Subject:

A 30-year decreasing term policy should not cost the same as a 30-year level term policy for the simple reason Mark has stated above, the amount of protection is decreasing each year. If you have been quoted the same price for level and decreasing term from the same company . . . look somewhere else -- FAST!!

Posted: 17 Apr 2014 11:45 Post Subject: inquiry about policy

Hello sil.I'm kogilavani senthil kumaran.my father Mr senthil kumaran buy a policy in AIG insurance Malaysia.4 months ready.but until now we never receive any resit for payment.we would like to know more about this policy.we hope ms will take immediate action in this issue.10q.

Posted: 17 Apr 2014 05:01 Post Subject:

We are not your father's insurance company. He needs to contact the insurance company directly.

Posted: 09 Jul 2014 04:22 Post Subject: Life INsurance

What measures can be taken to get the funeral bill paid if the insurance compay states that no beneficiary was named and ther are two minor children living?

Posted: 10 Jul 2014 02:14 Post Subject:

The principal way of paying a funeral bill is by check or credit card. Life insurance death proceeds is a different matter.

If there is no named beneficiary, the insurance company must usually pay the money to the Probate Court, which will decide who gets what. If the decedent left unpaid bills along with minor children, the bills are more likely to be paid with the insurance money than the children.

That's what happens sometimes when agents don't follow up with their clients to make sure beneficiary designations are up to date -- whether personal or group insurance is involved.

Posted: 01 Oct 2014 03:41 Post Subject: Insurance for an 86 year old Mom

My Mom is going to be 86 in November 2014. Can she get a Health Insurance?
She is diabetes and BP are the only medical problem. She is active, walking to and attend Church services. Let me know if I can get any Insurance.

Posted: 01 Oct 2014 11:06 Post Subject:

Your 86 year old mother needs to be on Medicare. She is not eligible for individual health insurance thanks to the PPACA. If she is not "fully insured" based on her own work history, or that of your father, then she pays a premium for both Part A and Part B.

The PPACA changed the rules on Medicare, and there is now a 10% premium penalty for each year of non-enrollment in Part A for twice the length of time a person was not enrolled after age 65. At age 86, if she has never enrolled in Medicare, she could be facing a 210% premium surcharge for the next 42 years. If not enrolled in Part B for all that time, then she also has a 210% surcharge for the rest of her life for that.

Posted: 18 Dec 2014 11:14 Post Subject: Life indurance policy

I believe my son had more than one policy due to the jobs he had before joining the Navy. I feel that somehow someone found out and cashed in on them posing as me . I'm his mother and was always told by him that I'm his benafishey on everything. How do I find out if more than one policy paid on him? I feel because of things that has happen since he died it's true but I need to know we're to start please help me

Posted: 24 Dec 2014 10:07 Post Subject:

If your son was employed prior to joining the Navy, he probably lost that "group" life insurance when he left the jobs. If he had Servicemembers' Group Life Insurance, the military probably would have contacted you as his beneficiary, if indeed you were.

You can contact Servicemembers' Group Life Insurance to see if, perhaps, you were the beneficiary of his SGLI policy. Their phone number is (800) 237-1336.

It's possible that he had other life insurance through other companies, but if they are group policies, it would be very difficult to find out which, if any, issued him coverage.

Life insurance companies, for the most part, are now compelled to search for beneficiaries of unclaimed death benefits. Hopefully you are listed in telephone directories or other resources.

Posted: 18 Feb 2015 11:11 Post Subject: Need to find if dad left me some life insurance

Hello my name is Adam Shipley and my father passed away a week ago and I remember him saying he had life and funeral insurance and I am to get a percentage of it and I asked my siblings about it and thay are denying it and are hiding it all from me how do I find out if he actually did leave me any

Posted: 18 Feb 2015 01:07 Post Subject:

You will have to use a service such as the Lost Policy Locator service available through some state insurance departments or MIB Inc. http://www.mib.com/lost_life_insurance.html

[left:2a540500a6]Additional information can be found here [/left:2a540500a6] https://www.acli.com/Consumers/Life%20Insurance/Pages/Missing%20Policy%20Tips.aspx

I have additional resources available, too. You can contact me by clicking on the link below.

Posted: 11 Aug 2015 11:44 Post Subject: LIFE INSURANCE

NEED INSURANCE ON MY GRANDFATHER

Posted: 16 Aug 2015 03:24 Post Subject:

Contact a local insurance agent.

Posted: 26 Aug 2015 10:25 Post Subject: Life Insurance loan info

I have a whole life insurance policy on my ex-husband (provided in divorce decree). I took a loan of 4,000.00 to help with down payment on a house. Policy was purchased in the 80's, and the loan was done in the mid-90's. I recently spoke to the insurance company, was advised that my original 4000 loan has morphed into 10,000, due to compounding interest. I've made premium payments for all these years, and have been making interest payments of approximately 600 per year for the last few years when they began sending a bill. I might add that the original company was changed to another at some point. My question is, what would my options be if I just surrender the policy? Would I be liable to pay the 10,000 anyway-or have to pay income tax even if I never received any money ?

Posted: 28 Aug 2015 08:33 Post Subject:

This is one of the most common mistakes people make with their life insurance -- borrowing money and never paying the interest -- only to discover that they have completely destroyed their life insurance AND have a taxable event as a result.

The $10,000 loan amount will be deducted from your cash value (CASH VALUE minus LOAN AMOUNT equals SURRENDER VALUE), so you won't have to pay anything out of pocket as far as the loan itself is concerned.

If your cost basis is less than the unpaid interest, however, if you surrender the policy, the forgiven amount will be taxable to you. Cost basis is, essentially, the amount you have paid in premiums. It's a little more complex than that, but this is a good starting point.

If you have a cost basis of $8000 but your loan amount is $10,000, and your cash value is $11,000 (meaning your surrender value is about $1000) you could have to pay income tax on $1000.

Your situation could be more complex than that, so before you surrender the policy, seek professional tax advice. In the meantime, try paying more than just the interest in order to lower the loan amount.

Posted: 02 Sep 2015 08:55 Post Subject:

This is good, because am not totally aware the different kinds of insurance. I am grateful because I can discuss this to my family later.

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Posted: 10 Apr 2017 04:13 Post Subject: Need insurance

My mom is 86. Need it asap

Posted: 10 Apr 2017 04:17 Post Subject: Need insurance

My mother needs insurance asap!
Please call me. 7869072918.

Posted: 15 Apr 2017 04:23 Post Subject: insurance agent requirements

if I have been convicted of violation of Arkansas hot check law and delivery of a controlled substance with intent to deliver can I become a licensed insurance agent

Posted: 30 Apr 2017 06:53 Post Subject:

Probably not

Posted: 03 Aug 2017 06:16 Post Subject: Meed life insurance for 87 year old male

Need life insurance for 86 yr old male

Posted: 25 Aug 2017 09:20 Post Subject: Mortgage life insurance

How much does it cost in attached premium per 100,000 of mortgage for an 84 yr. old female in good health?

Posted: 30 Aug 2017 04:39 Post Subject: policy

Re; certificate # 010FA64016 Is it still active?

Posted: 10 Oct 2017 05:35 Post Subject: jackson life ins co

I don't have insurance with them and I received a usps pink card letting me know that I have a large envelope at the post office that needs to be signed for, I am a widow and have been for 5 years, I don't know why I would be getting this letter

Posted: 11 Jan 2018 12:29 Post Subject: Questions about simplified issue policies

Hey everyone, I was approached a few months ago about becoming a life insurance agent. The money sounded good so I've been looking into it, got my license, and have been contracted to sell through several carriers.

Since I jumped in quickly, I wasn't fully aware of what I was doing, but now that I have a decent grasp of what's going on, I'd like to address some concerns. Firstly, the company I work for is focusing on selling simplified issue whole life insurance policies. The original strategy I was told was to focus on seniors with health problems who think that they either don't qualify for fully underwritten policies or think they have limited options. I'm coming to realize that this may not always be the case and to not be aware of the general purchasing strategies of other types of customers could be doing people a huge disservice.

Question 1: I'm getting conflicting messages about the underwriting standards for simplified issue term life and simplified issue whole life. The claim from my manager is that simplified issue term life has stricter underwriting so it is easier to place someone in simplified issue whole life. I've heard from other sources that the underwriting for term and whole is generally the same. Does anyone on here actually have the qualifications to clearly claim if underwriting for simplified term versus simplified whole is a real concern(not guaranteed issue, I understand what is happening with guaranteed issue)? It seems as though when I ask this question I generally get biased answers (term agents have their pitches, whole agents have their pitches).

Question 2: As a general rule of thumb, wouldn't it be better service to approach each new client with the mindset that they might qualify for fully underwritten insurance and to make them fully aware that even though they may have some health problems, certain carriers could qualify them with a fully underwritten policy, leading to a better price and coverage? It seems as though to me that if you only focus on simplified coverage you would be tempted to not mention that other fully underwritten policies are available. Not only that, but I just read that sometimes people who are disqualified for simplified policies are then sometimes placed into fully underwritten policies (I assume because then they can get more accurate information about what is going on with the individual's health). So again, why not just start with the fully underwritten possibility in mind?

Question 3: For the average customer, I could see them wanting the price of term insurance but the peace of mind that permanent policies provide. In my research I came across guaranteed universal policies. They are products that can be set to certain ages (85, 90, 95, 100, 121), which could essentially function like a permanent policy, but without the cash value (I believe the cash value is available but you just don't fund it, keeping it at zero, so all your premium can go towards coverage). Is there any difference in the underwriting for these policies and would it be possible to get a simplified issue guaranteed universal policy?

Question 4: If there are any significant differences among underwritings of simplified issue term life, simplified issue whole life, and guaranteed universal (simplified or not), how would I know as an agent where to make the cutoff decisions for putting them in one or the other?

Thanks!

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