It’s unfortunate but true. Although life insurance is vital to your family’s stability, you can be declined for a life insurance policy.

Every company evaluates a life insurance application differently. It comes down to how much risk you pose to the insurance company. But life insurance declined isn’t necessarily life insurance denied full stop.

Insurance companies use underwriting to assess risk. During the underwriting process, an insurance professional looks over your application and details regarding your health and lifestyle. It uses actuarial tables to assess your mortality risk. It then assigns a risk classification to determine your premium.

If your application for life insurance is declined, below are possible reasons.

Reasons Why a Life Insurance Application Is Declined

• The information you provided was incorrect or not updated
• A serious medical condition that could pose a mortality risk
• Age (Some life insurance companies will not provide coverage for people over a certain age.)
• Unhealthy habits such as smoking
• A risky hobby
• A dangerous job
• Illegal drug use
• Financial issues such as unpaid debt or a bankruptcy
• A problematic driving record
• A criminal record
• Lying on your application

What to Do If You Have Been Denied Life Insurance

• Contact your life insurance agent to review your application. Perhaps the information you provided is incorrect.
• Look for a policy through another life insurance company that offers more flexible underwriting.
• Go over your lab results with your doctor. While the medical exam data belong to the insurance company, your lab results are yours. If your doctor finds discrepancies they may be able to provide you with an APS (Attending Physician Statement)
• Retake the medical exam.
• Appeal the decision. Arm yourself with medical records from your doctor, your updated credit report, or your driving record according to the reason(s) you were declined. Your insurance agent can help you with the appeal.
• Don’t give up! Work on improving your health, resolving bad habits, and cleaning up a negative driving or credit history.

At the very least a life insurance denial will give you an idea of what you can do to increase your chances of obtaining the right policy for you, such as eating better, exercising, or quitting smoking.

For those who want to bypass the time and hassle it takes to submit to the lab tests and exam for life insurance most life insurance companies require, a policy with no exam required may be the way to go.

What Is No-Exam Life Insurance?

Put simply, no-exam life insurance is life insurance that requires no medical exam, including blood and urine samples. And some may cover a pre-existing condition if you are otherwise in good health.

Best of all, you can apply online to access affordable no-exam life insurance quotes.

No-exam policies differ in their requirements. Some, like Simplified Issue, require no exam and ask little to no health questions. However, the policy will cost more and provide less coverage because the company collects less data and therefore assumes more risk. Others, like Accelerated Underwriting, ask for a bit more health information but cost less and provide more coverage. Neither requires a medical exam or lab tests.

That said, here are three outstanding life insurance companies offering some of the best life insurance plans with no medical exam required. If you’ve been shopping around for a no-exam policy, these no-exam life insurance options may surprise you.

1. Ameritas. Ameritas no-exam insurance covers people 60 years old and younger and offers coverage for up to $2 million with term lengths of 10, 15, 20, or 30 years. The wait time is one week and you must be in decent health.
2. Lincoln Financial Group. Lincoln offers coverage for up to $1 million for people in excellent health between the ages of 18 and 60.
3. Transamerica. Transamerica offers two no-exam policies. They cover 18- to 80-year-olds, offering 10, 15, 20, 25 and 30-year terms. They pay out up to $2 million for qualifying applicants with an option to convert to a different policy later on.

As good as these deals are, no-exam-required life insurance isn’t for everyone. If you are young and in good health, you may want to look into a term life policy that offers even more affordable premiums with better coverage.

How to Prepare for Your Life Insurance Lab Tests & Medical Exam

You’ve got your life insurance policy quote, now it’s time for the required blood and urine tests and medical exam.

How it works: Insurance companies work with third-party medical professionals to perform and evaluate lab tests. After you’ve received your life insurance policy quote, someone from a medical facility will call to schedule your appointment. It’s usually up to you as to where you’ll take the test—at home, at work or at an offsite facility.

You spend no money and invest no longer than 30 minutes to complete both the labs and the exam.

Blood Test and Urine Test: Plan Ahead

The best thing you can do for both your health and upcoming tests is to do just what the doctor orders:

• Drink plenty of water to clear out toxins and to keep hydrated.
• Eat healthy food – especially cholesterol-friendly ones like nuts and salmon.
• Avoid sweets.
• Limit your caffeine and alcohol intake.
• Go easy on the salt and red meat.

Please set off this paragraph to highlight its message. Although counterintuitive, scaling back your exercise routine will keep the proteins in your bodily fluids and blood pressure low. So go easy in the days leading up to your visit.

What Foods to Avoid Before Your Lab Tests

In addition to avoiding sweets and going easy on the caffeine and alcohol, there are some foods and medicines you also may want to avoid that may cause a skewed lab result, such as:

• Ibuprofen, high-protein snack bars and Vitamin B12 supplements, including those that boost Riboflavin. These can produce false positives for marijuana use.
• Poppy seeds: They may look like opiates on your blood panel.
• Tonic water can falsely reveal cocaine use.
• Sleeping pills can show up as barbiturates.
• Cold meds and nasal decongestants can show up as amphetamines.

Prepare for Your Medical Exam, Too

Doing a bit of homework in preparation for your medical exam can expedite this part of the underwriting process.

• Gather medical histories from your immediate family members.
• Write down the meds you take and their dosages.
• Review your own health history and jot down events such as hospitalizations, long-term or life-threatening illnesses, and debilitating accidents and medical events.

Don’t Lie

Life insurance companies rely on resources like the Medical Information Bureau. Lying can at best deny your application or cancel it after it’s been approved. At worst, it can be construed as fraudulent.

Full transparency works in your favor.

Listen, as much as life insurance vetting is another example of gloomy adulting, a medical evaluation just may detect a problem early enough for you to do something about it. Plus, in a competitive insurance market, your medical results arm you with information you can use to determine which life insurance policy works for you. Not just them.

Blood Tests, Urine Tests & Medical Exams: The Life Insurance Trifecta

Life insurance is necessary to protect your family. Lab tests and medical exams are necessary to evaluate your risk to an insurance company. If you’re between the ages of 18 and 55 and looking for a plan that provides a benefit of less than $2 million, you may be able to obtain a no-exam policy.

After they provide a life insurance policy quote, insurance companies generally ask for blood and urine samples along with a medical exam.

These companies use third-party medical agencies to perform and evaluate the tests, and someone from the agency will call you to schedule your appointment. You can usually choose to have your exam at home, at work or at an offsite facility.

The tests are free and take no longer than 30 minutes.

The Blood Test

So, what are they looking for?

Insurance companies want to know if you are suffering from any disease or conditions which would shorten your lifespan. Blood tests reveal them. And most require fasting for between 8 and 12 hours. Diseases a blood test screens for include:

• Heart disease
• Liver disease
• Diabetes
• Cancer
• Inflammatory conditions
• Sexually transmitted diseases
• HIV or AIDS
• Drug use (prescription as well as recreational)
• Harmful conditions caused by smoking

They also want to confirm the information you provided on your application.

The Urine Test

Some diseases a urine test can reveal overlap with those a blood panel scans for. These include:

• Kidney disease
• Diabetes
• Liver disease
• Drug use (prescription and recreational)
And:
• Metabolic conditions
• Blood clots

The Medical Exam

During your medical exam the health professional will ask about:

• Your general health during the past five years
• Your family members’ medical histories
• Your lifestyle, including what you do for a living, your hobbies, and habits such as smoking, drinking and drug use
• Prescriptions and dosages

They will also measure your height, weight and blood pressure.

The Don’t Lie Policy

Insurance companies don’t just rely on the results their 3rd-party companies provide. They also depend on information obtained from the Medical Insurance Bureau to assess fraudulent behavior. The bureau collects data about your prior health and other insurance policies you’ve applied for.

Best advice: Don’t provide more information than required. The insurance company can always ask additional questions if they need to. If you have a condition you think may disqualify you, don’t assume the worst. Speak to an insurance agent and see what your options are. You may be surprised.

5 Movies to Die For: Life Insurance Scams on Film

Insurance fraud isn’t sexy. Or is it? Okay, insurance fraud isn’t funny. Or IS it?

The following five films use life insurance to drive the plot in a couple of dark, steamy, and hilariously creative ways. And we highly recommend you check them out if quarantine has you running dry on new things to stream.

Just don’t get any ideas.

Steamy Scams

Cinematic sex sizzles. So, let’s start there.

Double Indemnity, 1944

If you like Casablanca-esque dialogue then you’ll relish Double Indemnity starring Fred MacMurray, Barbara Stanwyk and Edward G. Robinson – three powerhouse Hollywood stars back in its Golden Age.

Murray plays Walter Neff, an insurance rep who figures he’s got it all figured out when he knocks on the Dietrichson’s door one day in May for a simple renewal inquiry. But it’s not Mr. Dietrichson who answers. It’s his wife, a buxom blonde with an itch to scratch. And it’s not romance she’s after. It’s her husband.

The movie’s steamy scenes are tame compared to today’s but the film noir mood this black-and-white film sets sizzles, nonetheless.

The Postman Always Rings Twice, 1981

Forty years later, people still debate if the iconic kitchen scene Jack Nicholson and Jessica Lange pull off in The Postman Always Rings Twice is real or staged.

If it was real, the movie would never make it to mainstream theater screens, obviously. So perhaps that’s why Mussolini banned a 1943 Italian version titled Ossessione.

Funny Fraud

It takes some strong funny men to make light of a topic as dry as life insurance. But they did so. Brilliantly.

Alias Jessie James, 1959

Few careers in the 20^th century are as iconic as Bob Hope’s. And this Wild West comedy co-starring Rhonda Fleming shows off his comedic timing to a tee.

Milford Farnsworth (played by Hope) unwittingly sells—and then tries to get back—a six-figure life insurance policy from the infamous Jesse James.

The romp that follows is worth the watch for those with a classic sense of humor.

Fletch, 1985

You may know Chevy Chase from the early 2000’s television series Community, but before that, the Saturday Night Live original cast alum appeared in a bunch of movies playing a string of hapless characters with clever panache.

The film Fletch gives Chase plenty of opportunities to perform plethora character sketches as undercover reporter Irwin M. Fletcher. The basic plot is familiar by now—a man offers a fortune to end his woes by asking Fletcher to kill him.

We won’t blow the ending’s cover. Just sit back and enjoy Chase’s brilliant comedy.

Dark & Dastardly

Fraud taken at face value isn’t entertaining. But it is intriguing. So is this movie.

Strange Bargain, 1949

Strange Bargain features two down-on-their-luck men, business owner Malcolm Jarvis Richard Gaines  and his employee Sam Wilson Jeffrey Lynn, and their plan to make Jarvis’s suicide look like a murder so Jarvis’ family can survive off the insurance money. Wilson waffles but is drawn in by circumstances beyond his control.

Fun fact: Lynn also appeared in Double Indemnity.

Contemplating life insurance is heavy. Shopping for life insurance is daunting. But watching other people tangle with fraud is delicious. So, grab a bowl of popcorn and let life insurance be fun for a change.

How Does a Life Insurance Rider Work?

Not every life insurance policy will meet every one of your needs. Cancer, heart attacks and accidents can wipe out your income long before they end your life.

The supplemental coverage a life insurance rider provides guides your base policy closer to what you and your family may need if the unthinkable happens and threatens your financial security. And most come at a nominal fee.

And while you can purchase a stand-alone long-term care or accidental death or dismemberment policy, riders attached to your base life insurance policy are less expensive and provide the same coverage.

So what insurance riders are available to you and how can each protect you and your family against financial disaster in the wake of a disastrous event?

Life Insurance Accelerated Death Benefit

Also known as an ADB or living benefit, an accelerated death benefit allows you to use your base policy’s payout to cover the cost of medical care for a terminal or chronic illness while you are still alive. Medical services covered include hospice, nursing home or private home care.

How an accelerated death benefit works:

• Your illness must meet certain criteria to qualify and different states have different eligibility requirements.
• Your insurance company may use your entire death benefit or a percentage of it, depending on the care you require. For example, an insurance company may pay 2% for nursing home care and 1% for a private caretaker.
• Your beneficiaries receive what is left of the benefit after your death.
• Accelerated death benefits are broken down into two specific riders: Chronic Illness and Long-Term Care (LTC).

Chronic illness rider

This life insurance rider covers the cost of medical care for illnesses from which you will not recover. Although similar to a Long-Term Care (LTC) rider, there are differences, as you will see below.

How a Chronic Illness rider works:

• A medical professional must certify that you aren’t able to perform two of six Activities for Daily Living (ADL) such as eating, moving, bathing, dressing, and toileting or continence, and other eligibility requirements.
• Unlike a Long-Term Care rider, this rider only pays expenses for one unrecoverable illness over your entire lifetime.
• Payouts may begin immediately or after a short waiting period.
• Payouts are taken from a capped percentage of your base policy’s death benefit for the remainder of your life.
• There are no restrictions on how you use the benefit.

Long term care (LTC) rider

This life insurance rider provides coverage for medical care for an illness or disability that prevents you from performing daily activities for 90 days or more.

How a Long-Term Care rider works:

• As with a chronic illness rider, a medical professional must certify that you aren’t able to perform two of six Activities for Daily Living (ADL) as eating, moving, bathing, dressing, and toileting or continence, and other eligibility requirements.
• This rider costs more than the chronic illness rider but is less expensive than a standalone LTC insurance policy.
• You can use it for more than one health event lasting more than 90 days during one’s lifetime.
• Unlike a chronic illness rider, this one pays out as a reimbursement or lump sum up to 100% of base your policy’s death benefit.

Waiver of Premium rider

A Waiver of Premium rider frees you from premium payments if you are no longer able to work.

How a Waiver of Premium rider works:

• This rider requires a statement from the Social Security Administration and a doctor to certify disability and you must continue to show proof of your disability every few years.
• It does not cover pre-existing conditions.
• It can take up to six months to pay out but once approved, you’ll be reimbursed for premiums paid during the waiting period.
• Your insurance company may require that you add your Waiver of Premium at the time you purchase your base policy.
• Be sure to ask how your life insurance company defines a disability. Each company defines it differently.

Accidental Death and Dismemberment Insurance (AD&D)

An accidental life insurance rider pays a death benefit if you die or lose a limb or physical function that prevents you from working. Because an accidental life insurance rider is limited to accidents and thus less of a risk to your insurance company, it’s an inexpensive option.

How an AD&D rider works:

• This rider pays the lump sum of your death benefit if you die due to an accident.
• It pays a percentage of your death benefit if you suffer a disability due to an accident, such as losing a limb, your sight, speech or other function as a direct result of the accident.
• Insurance companies have different requirements that must be met for your beneficiaries to receive the payout, such as the type of accident and injuries suffered.
• This rider is limited only to an accident—not a heart attack or a chronic or terminal illness.

Family Income Benefit Rider

A family income rider provides your family a monthly payment equal to your income in the event of your death. This rider payout is in addition to the lump-sum death benefit your base policy provides.

How a Family Income Benefit rider works:

• You set the amount of time your family will receive the monthly payment.
• Your family receives the lump-sum death benefit once this rider period ends, although you can set up a distribution plan customized to your family’s needs.

Child Term Rider

A child term insurance rider provides a death benefit should a child die before an age you determine.

How a Child Term rider works:

• This rider pays out as a lump sum.
• You can convert it to a permanent policy when the child outlives the rider term.

Return of Premium Rider

A Return of Premium rider reimburses the premiums paid if you outlive your policy.

How a Return of Premium rider works:

• You can use your refund to purchase a new policy without a medical exam.
• This rider returns only the money you paid for premiums. Not fees or additional riders.

Guaranteed Insurability Rider

This rider allows you to increase your death benefit every three or five years.

How a Guaranteed Insurability rider works:

• Your insurance company determines the time frame for benefit increases.
• This rider does not require a medical exam or health questionnaire.
• There are no rate changes should your health decline.

Accidents and illnesses happen. It’s up to you to decide if a rider is more expensive than the costs you may incur without one. It’s best to speak to an insurance specialist to determine what’s right for you and your family.

Compelling Reasons Why Life Insurance Is Important

You think bad things are never going to happen to you but recent events suggest otherwise. And a lot of people for whom life insurance never crossed their minds or who were stalling buying an insurance policy are adding life insurance to their financial plan in increased numbers.

If that doesn’t convince you, here are three compelling reasons why life insurance is important for you and your loved ones.

1. It protects your family’s well-being. The last thing you want your family to worry about if you should die unexpectedly is money. Life insurance eases stress and maintains your family’s standard of living by paying off debt and covering living expenses. It also can cover burial expenses, which cost on average about $9,000.

   Best of all, most death benefit payouts are tax-free.

   And even if you aren’t the primary breadwinner but the primary caretaker of children and day-to-day household activities, life insurance can help your surviving spouse with childcare and daily household maintenance costs.

   Life insurance can also cover your mortgage and educational expenses.

   Finally, insurance companies pay out faster than estates, which take time—and sometimes money—to process.

2. It provides financial security. Some life insurance policies provide investment opportunities that can enrich your retirement savings and provide cash value for college tuition or home improvements.There are also riders that add extra protection should you suffer a disability or terminal illness.

   A disability rider can be bundled with your life insurance policy for added protection in the event you can no longer work. And an accelerated death benefit covers the costs of medical care for a chronic or terminal illness.

   If you’re a business owner, life insurance can protect your business partner or loan co-signers by paying off debt and covering the costs of daily operations such as payroll, inventory, etc., which is a less expensive option than borrowing from a financial institution.

3. It alleviates taxes. Most policy proceeds are tax-free, but if there is a tax liability, there are policies that can alleviate the tax burden on your heirs such as your children, grandchildren, or a favorite charity.Unlike an estate inheritance, 401K, or IRA, life insurance policy payouts are tax-free for owners whose estates are valued at less than $12 million.

   Additionally, dividends from permanent insurance policies can earn tax-free dividends, which offer a steady stream of tax-free income with its accumulated cash value for use while you’re still alive.

Although life insurance is available at myriad price points even the most modest payouts buy time for those you care about to figure out what to do next in the wake of their loss.

And no matter how much life insurance you choose to purchase, you can’t put a price on the peace of mind it provides.

Uh-Oh…

On July 27, 2022, the fed raised interest rates again, bringing rates to between 2.25% to 2.5%.

Does this mean a recession is coming or are we already in one? Who knows? Every financial pundit has a different opinion. Either way, both inflation and recession create nail-biting fortuity.

What Does a Recession Mean for Me?

If you hold a student loan or home loan, the recession news is less positive than it is for those with enough money in a savings account to keep afloat or who are living off a high-yield savings account.

But whether higher interest rates work for or against you; whether we’re in a recession or not, there are some things you can do to ride out a recession with your financial boat intact.

Financial Advice for Riding Out an Economic Downturn

Take stock of your current financial situation.  Winnie Sun, Managing Partner, Sun Group Wealth Partners  advises to take a look at your retirement assets, savings, and checking accounts to see where your assets lie.

Audit your budget to see where you’re spending and where you’re earning. This will help you determine if you need a budget or not.

Start with the bare bones to get a baseline. First the priorities. What are you spending on housing, food, utilities and medical expenses? After that,  look at what you’re spending on car payments and nice-to-have’s like streaming services.

Consider whatever is left is discretionary income.

Be a Budget Planner. Make budgeting a family affair so everyone agrees on your financial management plan. It’s good for your marriage and provides instructive money role modeling for your kids.

Tip: Use a membership card that offers a percentage-off gas deal. Some rewards programs offer cash-back incentives.

Diversify your investments. Stocks tend to fall during a recession, which can be a good thing or a bad thing.

If you prefer to stay in the stock market, buy from companies you know will come out strong as the recession wanes.

If the stock market’s fluctuations make you nervous, consider buying bonds like government-guaranteed savings bonds or investing in foreign securities and precious metals.

If you have a recession-proof job, take this time to pour as much into your savings as possible.

You can also invest in your family’s financial future with a level term life insurance policy. Term rates are locked in without the fluctuations interest-earning policies suffer. It’s much less expensive and payouts are completely tax-free.

Pay down or pay off credit card debt. And throw away new credit card offers—unless you can transfer current credit card debt to a card with a lower interest rate if you can find one.

Avoid new loans and consider refinancing any variable rate loans to fixed-rate loans. Look into doing the same for your student loans, too.

Invest in yourself. Consider ways you can generate outside income with a part-time job or an online business.

Reach out for help if you need to. Call companies and utilities to whom you owe money and explain your situation. A lot of times, they’ll give you a break.

Look for ways to have fun. Even in a recession, there are still simple ways to have fun and grow stronger bonds with your family. Play the games or do the puzzles you never had time for, go on a day trip to a free museum, or have a picnic. Ask your kids for other ideas.

No doubt economic downturns are white-knuckle events. But as you ride out the storm, take time to breathe and appreciate the little moments that make you smile. And stop doomsday scrolling. It’s going to be fine. This isn’t our first rodeo.

Do I Have to Pay Taxes on My Life insurance Death Benefit?

Life insurance is a lifesaver for loved ones you leave behind. But there can be some scary surprises if you aren’t familiar with the tax codes attached to your policy.

If your life insurance policy is simple, your payout is simple and tax-free. A death benefit is not considered income.

However, if your policy is set up to gain interest, any interest you earn on your policy is considered income and therefore is taxable.

Simple Term Policies: No Tax

A term life insurance policy,  is non-taxable. You buy the policy for say $50,000 and your loved ones will receive $50,000 tax-free.

Keep in mind that you must appoint a beneficiary. Not having one may delay your benefit from getting to your loved ones as it makes its way through probate court.

Also, consider leaving your benefit to more than one beneficiary to ensure that if one dies, the surviving one will receive the payout, not the IRS.

If you want your child to be your beneficiary, set up a trust. This ensures that inheritance is used in a responsible way.

Permanent Policies: Probably Taxed

The federal government and some state governments handle permanent life insurance differently since this type of policy can accrue interest. Beneficiaries may have to pay taxes on that gained interest.

However, the interest is taxable only if it exceeds the amount you paid in premiums. And it’s not retroactive. Your loved ones only pay on the interest earned after your death.

Now if you borrowed against your policy for more than you’ve paid in premiums and the interest it earned, you must pay what you owe before you die or your loved ones will pay taxes on the benefit. They’re also considered taxable income.

Useful Tax Strategies

Strategy #1: Transfer Your Life Insurance Policy

Transferring your policy gets you off the hook for taxes as well as premium payments. And while the person to whom you transfer is responsible for the payments and taxes, you can set aside a part of the benefit as a gift to help them pay those expenses. A gift is tax-free.

Transfers are irrevocable, so choose your transferee carefully. You can transfer your policy to a trust, which is especially helpful if your child is your beneficiary.

Now, the IRS does have some caveats regarding transfers.

And if you sell your policy, while this also frees you from paying your monthly premiums, you are on the hook for any cash or profits you received above the amount you paid in premiums.

Strategy #2: Tie Your Policy to an Estate

This is a great strategy if you make less than $12 million as an individual or $24 million as a couple. That’s the current federal threshold. If you make more than that, the estate is taxable. If you earn less than the threshold, the estate is tax-free. But no matter what side of the threshold you’re on, you do have to report the payout to the IRS.

Is your brain spinning yet? This is a lot of information—much of it beyond the scope of one humble post. Taxes, like people, can be complicated.

Make sure you talk to an attorney, tax professional, or accountant before making any tax-related decisions and putting them in writing. Your loved ones will thank you

Is Life Insurance
Affordable?

Is Life Insurance Affordable?

Many variables determine the premium you pay, which means there are affordable options for different types of people at a variety of price points.

But if you have dependents, it’s crucial you have life insurance to provide for your loved ones.

As you go about shopping around for a policy, here are some factors to keep in mind that can affect your premium rate.

Factor #1: The Type of Life Insurance You Choose

Some life insurance policies cost more because they provide more features.

Permanent policies provide coverage for life and some, like whole life insurance, can earn extra dividends you can put toward retirement, college tuition, or reinvest.

Term life policies provide coverage for a set amount of time like 10 years, 20 years, or 30 years. They’re less expensive than permanent policies and can be converted to a permanent policy later.

Factor #2: Your Age and Gender

Obviously, older people pose a bigger risk to insurance companies than younger people, which means they pay more. The younger you are when you buy a policy, the less expensive it is.

And gender is a factor because data shows that males tend to die younger and work riskier jobs.

Factor #3: Your Health & Hobbies

Your health has a profound impact on your ability to obtain a policy and how much you’ll pay for it. Insurance providers will look at your habits and you and your immediate family’s medical histories to get a clearer picture of your health profile.

Although you may not be able to do much about your medical history, you can do something about life-threatening habits. If you smoke or drink excessively, your policy will cost more.

What you may not know is that your hobby may also affect your eligibility and your premium—especially hobbies that involve diving, flying, and climbing.

Factor #4: Your Income

It stands to reason that the more you make, the more insurance you can afford. However, what you spend your money on affects how much money you have to spend on it.

On average, people with families tend to earn higher incomes, but have more expenses. They’re also the ones who may benefit from life insurance the most. Term life insurance  is the most affordable comprehensive option available.

That is not to say single people can bypass life insurance altogether. You don’t want to saddle your loved ones with burial expenses or outstanding debt.

Factor #5: Your Occupation

It seems unfair to penalize those who make our lives safer and easier, but life insurance providers consider dangerous jobs like firefighters, police officers, construction workers, and pilots as high risk.

If you think your occupation may incur higher premiums, an insurance agent will be able to steer you toward an affordable life policy.

Factor #6: Catastrophic Events

Things like inflation, pandemics, dangerous environments, and mortality rates can affect your premium, making them higher or lower depending on what’s going on in the world. The higher the risk, the more you pay.

Factor #7: Your Financial History

Life insurance companies don’t look at your credit card history, but they do look at bankruptcies and periods of employment to assess your ability to pay your premiums.

How Can I Lower My Life Insurance Rate?

While a few of the factors above are things beyond your control, there are some things you can do to lower your premiums:

• Lose weight
• Quit smoking
• Decrease your alcohol consumption
• Schedule and attend regular medical appointments
• Decrease engagements in risky hobbies; instead of monthly dives, go on annual dive trips
• Buy a policy while you’re young and healthy to lock in lower rates.

How Much Life Insurance Do I Need and How Much Will It Cost?

The amount you need to adequately protect your family depends on how much you think they’ll need if they lose your income. Consider things like your mortgage, college costs, retirement, and funeral costs.

It may look like life insurance companies charge arbitrary rates, but that’s not true. They rely on scientific data to provide the best rates possible. They need coverage to protect you and their other clients every bit as you do to protect those important to you.

Life insurance is an investment that benefits everyone