I get this situation a lot (my numbers are not exact):

1. 50 something year old client
2. $50 / month budget
3. Option 1 $100,000 for a 15 term
4. Option 2 $50,000 for a 25 year term.

My clients are always asking which should they do in this situation. My answer most of the time is this, "How good are you with money?" If you are a person that is investing and smart with your money, you should opt for the shorter term. Hopefully when you grow into retirement years you have a healthy nest egg of money and valuable assets, like a home, to leave behind to your family. However, if your situation is like most Americans and you do not have a solid retirement plan, then shoot for the longer term. If you are this person, chances are that you will always have debt and it is better to make sure that you have affordable coverage for a longer period of time.

The other situation you want to MAKE SURE you have a longer term is if you are a smoker. Smokers rates increase far more than non smoker rates, especially over the age of 50. So if you are a smoker and do not plan to quit get the longest term policy possible for your age or consider some type of permanent insurance.

Most of the time when I run a quote for a client using your insurance software I get over 200 results of different insurance plans for 1 simple search. Not only that, some of the plans I know are out there and I know could be good solutions are not even on the quote for one reason or the other. Not only that but insurance companies are changing plans, rates, underwriting requirement on a daily basis. So how is a single independent broker expected to keep up with all the products and changes. The answer is simple one agent working alone CANNOT keep up. Fortunately at our agency Easy Quote Direct we have team of licensed insurance agents. I consider myself very knowledgeable when it comes to insurance products these days, however, on a daily basis I am asking one of my colleagues for advise. A perfect situation would be that every client was 20-40 years old in perfect health and did not smoke. Unfortunately, about 1 in 10 clients are in this situation.

Last night I was quoting a client that was 55 years old, smoker, and a diabetic for 6 years. Talk about a complicated situation. One company wanted to increase the price by 125% from a standard rate, another wanted to increase by 100%, but this client was a homeowner. This left us with the option of a Mortgage Protection Plan which has more leniency than regular life insurance. Some insurance companies with mortgage protection plans are accept or reject only, while others will do a bit more investigation to see if the client qualifies. Bottom line, I spoke with 2 other agents at Easy Quote and 4 underwriters to finally come up with a plan for my clients. Simply put, I would not have given my best service if I did not have the experience and knowledge that I have here at Easy Quote Direct.

Are you considering disability insurance?? Well don't consider it, make disability insurance a priority. Let me give you a few reasons why.

1. You are worth more alive than dead! So many people think that since they have a $250,000 life insurance policy, that their spouse would be better of if they died. Well it is not to difficult to see that if you becomce disabled this myth is not true. If you are making $50K per year and becomce disabled at 40 years old, you are losing at minimum 25 years of income. That is a minumum of $1,250,000 of lost wages. Do you think Social Security benefits will make up for that?? Don't think so.
2. Disabilities are on the rise. Think about all the life saving techniques that our wonderful doctors have developed in modern history. They all are wonderful discoveries. However, these procedures that can save your life cannot save your working life. So more people are being saved, but there is also a rise on the people that are permenantly disabled.
3. Social Security takes a minimum of 2 years to recieve. If you are only relying on the Government to pay your disability benefits, you could be waiting a very, very long time. To qualify, you must be disabled for 2 years in most cases. Even if you have been disabled for 2 years, over 50% of all disability claims are denied.

This is just a short list. If you are not convinced, I will have more later.

So my wife and I recently made a trip down to Biloxi, Mississippi while the edge of Tropical Storm Faye was entering the Mississippi Gulf Coast. The weather wasn't bad enough to cancel the flight, but it sure was a scary landing. We happened to be in the very back of the plan with no windows to see what was happening. All we could hear was the roaring, then slowing of the engines over and over. Felt like the pilot was fighting the wind every second, then comes the landing that included a nice little first bounce that got a little scream from about 5 of the more concerned passengers on the plane. Moments like this always make you think about what could happen and if my 3 children at home are going to be taken care of if something happens to my wife and I at the same time. Being in the life insurance business, my family will be well taken care of, can you say the same?? Let me remind you that the amount of money you leave behind is very important, however, WHO you leave the money too is just as important. Everyone has heard the same story of life insurance money being squandered away in a short amount of time on ridiculous items like cars, clothes, entertainment, and risky investments. Do not make that mistake with financial gift you leave your family. Make sure the beneficiary is a responsible frugal individual who has a clear understanding of how the money should be spent. If there is no such person in your life, consider starting a trust. Secondary beneficiaries are also very important. If my wife and I pass at the same time, I have a friend who I trust enough to handle the life insurance money. The last thing I want is for my children to receive the money as young adults or the court deciding which family member will receive the money if I did not list a secondary beneficiary on my policy. If you haven't seen a family fight over money before, watch a family decide who gets what during the after math of a family member passing.

Okay by now you have probably heard of Return of Premium or Refund of Premium life insurance. You pay your premiums for the length of term you specify and at the end, if you are still living, you get a refund of all the money you put into the policy. This is accomplished by the insurance company charging you more money for return of premium policies than a straight term policy. The insurance company figures they can invest the extra premium and make enough money to be profitable and be able to pay you back.

There is another key element for the insurance companies in this equation. A large majority of 30 year term policies do not last the full 30 years. This is true for traditional term and return of premium policies. Return of premium policies that are cancelled early do not return 100% of the premiums paid. In other words you will be penalized if you cancel early. I advise you to only purchase return of premium life insurance if you keep the policy for the full term.

Okay here is the part that I really like about return of premium life insurance. Specifically with the company AIG. Lets take a 36 year old male, preferred non-tobacco, $750,000 30 year Return of Premium. The cost is $124 / month X 360 months, so the return at the end of the term is $45,000. Now here comes the good part. You can except the $45,000 tax free or AIG will offer you a permanent policy that you NEVER have to pay another penny for. Your permanent policy will be for $97,401 in this case.

Now lets compare with a whole life policy of $100,000. We will assume average life expectancy of a male to be 75 years old

Return of Premium with AIG:
Face Amount 30 years = $750,000
Face Amount after 30 years = $97,000
Monthly Premium = $124
Total Investment til death at 75 = $45,000

Typical Whole Life Policy:
Face Amount first 30 years = $100,000
Face Amount after 30 years = $100,000
Monthly Premium = $115
Total investment til death at 75 = $53,820

So with your AIG Return of Premium policy you have $750,000 of coverage for the first 30 years and basically the same coverage after 30 years. Yet you spent $8,820 less until death at age 75. Not all return of premium policies offer you a reduced paid up coverage at the end of you term. You will not be able to see what your options will be on a simple quote engine. To recieve a custom illustration contact me at 1-888-259-5979 or jay@easyquotedirect.com.

Unfortunately I had to attend a funeral this weekend and it always reminds that what I do is so very important. So many times when I am talking to clients they are just so concerned with the final price. Affordability is important, don't get me wrong, but most people could afford life and health insurance if they put insurance as a priority above things like the cell phone plan with all the bells and whistles, a cable bill with all the premium channels, fancy coffee from Starbucks, or a pack of cigarettes every day.

Now I believe that 99% of individuals deep down care very much about how their family and friends will remember them once they depart from this world. So if you are one of these people let me put you into a scenario. You are a part of a loving and caring family and you have children, parents, brothers and sisters, or employees who financially depend on you. You are a good hard working person that cares for the people around you. A sudden or unexpected sickness invades your body and suddenly you have weeks to live. You have put off buying that life insurance policy because you just couldn't stomach spending $65 per month on something that you probably won't ever use. Well your time has come and now insurance coverage is not an option.

So now you have some explaining to do. Not only will you have to tell your loved ones you will not longer be with them soon, you will also have to tell them you will be leaving with them debt and no insurance money. At first no one will care too much about the money, they are concerned too much about YOU. Don't you wish that you would have been just as concerned about them?? I mean sure you love your family with all your heart, but you have taken for granted how fragile life can be. Now the rest of your days you will be regretting one of the most important yet simple decisions of your life. How could you have been so foolish!

Now you have passed and your beloved family and friends are left in this world to reconstruct their lives with out you. You have left plenty of wonderful memories with them, but you have also left debt and your income gone. I believe with every great story of you that will be told, with ever laugh that is remembered, your loved ones will always have those memories tainted by the financial burden you left behind. They will think, "Why would this wonderful person that everyone loved not think enough of his or her family to leave behind something to help us financially. We don't expect to have a huge pile of money sitting in front of us, just something to take care of the credit cards and house. What would it have cost them?? Maybe $65 a month. I just can't understand."

This is what I think about when clients decline coverage. I pride myself in finding the most affordable coverage available. In the end though, what price would you pay if this situation happened to you?? I bet a whole lot more than $65 per month.