2020 – Life Happens

What to Know About Life Insurance for Diabetics

by Amanda Austin | December 7, 2020 | Life Insurance | 0 comments

Many people falsely believe that life insurance for diabetics doesn’t exist. In reality, there are quite a few life insurance options for the 34.2 million Americans who have diabetes.

While diabetes remains a health challenge for many, it is still very possible to secure good life insurance as a diabetic. Here are some key things to know about getting life insurance if you have diabetes.

Insurance companies consider many factors.

In addition to knowing whether you have diabetes, a life insurer may also want to know:

Whether you have Type 1 or Type 2 diabetes
The age you were diagnosed with diabetes
What medications you’re taking
Your height and weight
How well you’re controlling your diabetes
Your glucose levels
If you have other health conditions like heart disease and/or high blood pressure
If you smoke
Your overall medical history
Your family history

Some life insurers offer something known as “clinical underwriting.” (Underwriting is when an insurance company evaluates you for coverage.) This type of underwriting takes a more holistic view of your health instead of zeroing in on certain risk factors. An insurance professional will know more about companies that offer clinical underwriting.

Life insurance for diabetics underwriting varies by insurer.

One person who knows a lot about life insurance for diabetics is Jake Irving. He’s is a licensed insurance agent and owner of Willamette Life Insurance in Beaverton, Oregon. Irving specializes in helping people with diabetes get life insurance. He says that every insurer has different underwriting guidelines when it comes to life insurance for diabetics.

Even still, Irving says that most insurers care about your age at the diagnosis. “Being diagnosed earlier in life means there’s more time for related complications to develop,” he explains. That may make it harder to get coverage.

Most insurers will also care about any severe diabetic complications. “Having a diabetic coma, an amputation, or a hospitalization are the big three they care about,” says Irving. “But having any one doesn’t mean you can’t get coverage.”

Finally, people with Type 2 diabetes typically have an easier time securing life insurance than people with Type 1 diabetes.

Life insurance for diabetics is often (but not always!) more expensive.

People in good health who don’t smoke generally get better life insurance rates than people with health conditions and smokers. That said, Jake says he’s had diabetics qualify for preferred insurance rates. Preferred is the best rate category available for life insurance.

Nontraditional plans are an option.

One nontraditional option is graded life insurance. With this option, your beneficiaries only receive a percentage of the full life insurance payout if you pass away before a set waiting period. A typical waiting period is two years.

Another option is guaranteed issue life insurance. With this option, you get a limited amount of coverage on the spot. You are not required to have a medical exam or even answer any medical questions. Just know that you may only get a limited amount of coverage and that the rate may be high. There’s also often a waiting period as well.

Controlling your diabetes can help you get better coverage.

Life insurers look more favorably on diabetics who are working on managing their condition. This could mean regularly visiting your doctor, taking your prescribed medication, maintaining a healthy weight, and having lower A1C and glucose levels.

Jake says that it may even be possible to secure a better rate once you control your diabetes. This is especially true if a good amount of time has passed since a hospitalization from diabetes. (Just know that the incident may remain on your health record and affect your rate.)

Working with a licensed insurance agent is your best bet.

Ideally, you want an independent agent who has relationships with many different life insurance companies. This means they can shop around for the best possible coverage for you. It also means they can turn to other carriers if your application is rejected.

You might even consider an agent like Jake who works with high-risk applicants. These kinds of agents are especially knowledgeable about which carriers are most likely to offer you the best policy.

Start the process by learning how to choose a qualified insurance agent. An easy way to find a qualified insurance professional in your area is to use our Agent Locator.

10 Advantages of Hybrid Life Insurance with Long-Term Care

by Amanda Austin | November 17, 2020 | Financial Education, Life Insurance, Long-Term Care Insurance | 0 comments

You probably know about hybrid cars. But do you know about about hybrid life insurance?

This coverage combines long-term care and life insurance into one policy. Like hybrid cars, these hybrid policies are increasingly popular. That’s because they have some unique benefits.

How It Works

Most people bought long-term care insurance as a standalone policy in years past. Today, it’s becoming more common to buy the coverage as a policy that also includes life insurance.

The long-term care portion of the policy pays for care if you develop a health condition and need care. Meanwhile, the life insurance portion gives your loved ones financial support if you were to pass away.

You receive the long-term care benefit if you develop a health condition. And your loved ones get the full death benefit if you never use the long-term care benefit.

10 Advantages of a Hybrid Life Insurance Policy

More complete coverage. A hybrid life insurance with long-term care policy lets you—and your loved ones—benefit from two very important coverages.
Easier to get. The medical underwriting for a hybrid life insurance policy is often more relaxed than for a standalone long-term care insurance policy. In fact, some hybrid policies only have you answer a few health questions.
Flexible payment options. There are two ways to pay for a hybrid life insurance: with a lump sum or with annual payments.
Tax savings. Life insurance payouts to your loved ones aren’t taxed. And premiums paid for long-term term care insurance can sometimes be deducted from your state and federal taxes.
Less time and effort. It’s often easier to research, buy and manage one policy than two separate policies.
Fewer premium hikes. Many people worry about cost. That’s because standalone long-term care policy premiums could increase dramatically. Hybrid policies typically offer more pricing stability.
Possibility of a death benefit. Typically you forfeit the premium dollars you’ve paid for a traditional policy if you never need long-term care. With a hybrid policy, your loved ones receive the full death benefit if you never need long-term care. Some policies even guarantee a small death benefit no matter what.
Option to lock in your premium. Some hybrid life insurance policies let you lock in your premium payments.
Option of a money-back guarantee. Some hybrid policies return the premium paid if you decide you don’t want the policy after a set time.
Ultimate peace of mind. Hybrid life insurance coverage erases worries about potential long-term care costs and helps ensure your family’s financial future. Who doesn’t need that?

Getting Coverage

A licensed insurance professional can help you determine if a hybrid or a standalone policy is the right fit and find one that works with your life and budget⁠. Get started today by learning about the three main ways to get long-term care insurance. Also check out our answers to commonly asked questions about long-term care insurance.

Life Insurance From Your Employer Usually Isn’t Enough

by Amanda Austin | October 29, 2020 | Life Insurance | 0 comments

Life insurance from your employer is a valued benefit for millions of American workers.

Employer life insurance is a form of group life insurance that’s offered to you and your coworkers. It’s typically a set dollar amount at smaller companies and a multiple of your salary at larger companies. The multiple is commonly one to three times your current salary.

The Benefits of Employer Life Insurance

It costs you nothing (or very little). A big upside to life insurance from your employer is that it’s usually free. And if there is a cost, it usually only amounts to a few dollars a month.

You don’t have to take a medical exam. Life insurance from your employer is typically offered to every employee regardless of his or her health status. This can be a big plus if you have any health conditions. A health condition can make it difficult to get a life insurance policy on your own.

It’s convenient. There’s no need to consider multiple quotes, schedule a medical exam, or do any other legwork. You usually only have to fill out a form or two and designate a beneficiary.

The Downsides of Employer Life Insurance

It often falls short of how much coverage you really need. Most people need much more than one, two or even three times their annual salary in coverage to secure their family’s financial future. In fact, insurance professionals recommend having 10 to 15 times your annual income in coverage. This is especially true if you have dependents and/or debt. For this reason, it’s best to assume that life insurance from your employer probably isn’t nearly enough.

Supplemental coverage can be more expensive than buying your own policy. You often have the option to buy additional coverage through your employer-based policy. While this can be a convenient option, it may cost more than if you worked with an insurance advisor or agent to buy your own life insurance policy.

Your options are limited. You usually don’t have the range of policy options you’d have if you worked with an insurance advisor or agent.

Your employer can drop it at any time. You lose your coverage as soon as your company decides to drop it. And that’s more common now that fewer companies are choosing to offer or retain their group life insurance these days.

It’s tied to your employment status. You also automatically lose your coverage if you switch jobs, retire or become laid off. When this happens, you would need to go out and buy your own coverage. That can be more difficult as you get older or if you developed a health condition.

You may not be able to convert your supplemental insurance. Not all employer life insurance policies let you convert your supplemental life policy when you leave the company. If you can convert the policy when you leave, expect to pay a rate increase.

Exploring Options Beyond Employer Life Insurance

The potential downsides of employer life insurance often outweigh the advantages. Out of all the disadvantages, the biggest one is mistakenly believing that life insurance from your employer provides enough coverage for you and your loved ones.

Make sure you have all the coverage you really need by working with an insurance advisor or agent. He or she can calculate how much coverage you really need. (You can also use our Life Insurance Needs Calculator to get a quick estimate.) An easy way to find a qualified insurance professional in your community is to use our Agent Locator.

Once you know how much coverage you need, it’s time to compare costs. Review quotes from your insurance advisor or agent alongside the supplemental insurance quote. Know that it may be worth it to pay more for your own portable, flexible policy that you own and control.

In closing, employer life insurance is a great starting point. But it almost never gives you enough protection. So take the time to figure how much coverage you really need and to consider getting your own policy.

Remembering the Loeras During National Hispanic Heritage Month

by Amanda Austin | October 13, 2020 | Life Insurance | 0 comments

Hispanics are the largest minority group in the United States. And their many contributions to American history and culture are being celebrated between September 15 and October 15 as part of National Hispanic Heritage Month. All of us at Life Happens salute the Hispanics working in the life insurance industry during National Hispanic Heritage Month. We also want to encourage Hispanic-Americans to consider the financial lifeline that life insurance can provide their loved ones. The story below highlights how life insurance greatly helped one Hispanic family.

Chasing the American Dream

Roberto Loera left his life in Mexico to start a new one in the United States. He said goodbye to his wife, Maria, and sons Roberto Jr. and Abel to spend years working in ski resorts during the high season. He’d then travel back to Mexico during the downtime before starting that work schedule all over again. When he got the good news that his family’s visas had been approved, Roberto shared that joy with his insurance professional, Leila Martinez. She knew he worked hard to make this happen and that he was the family’s sole earner. So she helped him put a life insurance policy in place for less than $20 a month to secure his family’s financial future.

A Tragic Turn of Events

Roberto learned that a brain tumor was causing his terrible headaches less than one year after he reunited with his family. The doctors were unable to completely remove the tumor, and it reappeared just nine months later. At this point, the tumor had spread and he was given just months to live. Roberto achieved his dream of becoming a U.S. citizen just two weeks before he died at age 47. His passing dealt a blow to Maria and the boys, who fortunately received much-needed emotional support from their community. Another major help during that difficult time was the life insurance policy Roberto purchased. It gave them critical financial support to pay for Roberto’s funeral, medical bills and daily expenses as Maria looked for work. The family also set aside some of the money for the boys’ college education. “Roberto’s life insurance was such a blessing,” says Maria. “It’s something every family should have.”

Watch the video above to learn more about how life insurance helped the Loera family. (And check out “El Sacrificio y Regalo de un Padre” to view it in Spanish.)

Honoring National Hispanic Heritage Month

Like many people, Hispanic-Americans often lack enough (or even any) life insurance to protect their loved ones. The Loeras’ story shows what a big difference even an inexpensive policy can make when it comes to your family’s financial security. That’s why we’re stressing the importance of life insurance during National Hispanic Heritage Month. An easy way to learn more about life insurance and get a quote is to work with an insurance advisor or agent. Working with a qualified insurance professional is always free. To find one in your community, check out our Agent Locator. Roberto gave his family much-needed peace of mind during a trying time. Talk with an insurance professional today to give the same gift to your family.

3 Reasons to Give Life Insurance a Second Look

by Stafford Thompson, Jr. | September 25, 2020 | Financial Planning, Life Insurance | 0 comments

The COVID-19 pandemic has changed so much of our world, from day-to-day activities to long-range plans. But one thing hasn’t changed: the need for life insurance. If you have put off getting it—or more of it—here are three reasons to take a closer look now.

1. Life insurance offers financial protection.

And it can be your family’s financial bedrock, providing protection against unforeseen events. Unfortunately, many Americans are uninsured or underinsured: Just 50% of Americans own a policy, according to the 2020 Lincoln Financial Group Life Insurance Awareness Month Survey.

The COVID-19 pandemic, however, has put the value of life insurance back into the spotlight. More than a third of those surveyed said they think life insurance is more important to own now due to the pandemic, while a third also said they have or are planning to purchase new or additional life insurance.

Of those surveyed, that intent to buy life insurance was even greater among younger Americans, particularly Millennials. That’s great news, as they are often reaching new milestones in life such as starting a family or buying their first home.

2. There’s more to life insurance than you may think, including living benefits.

The top reasons people cited in the survey for purchasing life insurance were to cover funeral related expenses and to replace lost income to their family.

That make’s perfect sense. In its purest form, as a source of income replacement when someone dies, the tax-free death benefits of life insurance ensures your loved ones are taken care of financially so they can payoff final expenses and debt.

But there are also policies that also provide “living benefits” that can address holistic financial needs such as:

Providing supplemental retirement income
Paying for long-term care expenses
Protecting a business

And these living benefits really appeal to people: 45% of those surveyed said they would be more likely to purchase life insurance if it provided more than just death-benefit protection, and you could use it for future needs or emergencies while you’re alive. The good news is these types of policies already exist!

3. Applying for life insurance may be easier and less expensive than you think.

The top two obstacles people cited for not having life insurance were the cost and competing financial priorities, according to the survey. But in reality, life insurance can be pretty affordable. In fact, if you’re healthy, you may be able to get term life insurance coverage for less than your monthly utility bill or the amount you spend each week on your daily morning coffee. The wide range of options available mean there is a policy to fit different budgets.

Technology innovations are also transforming how we buy life insurance, from a long and cumbersome process to one that’s simpler, faster and friendlier. And 40% of Millennials surveyed said they would be more likely to purchase life insurance if they could do so completely electronically. This is actually already possible! You can receive a quote and apply for a policy online, and then have the policy signed and delivered electronically. Many insurance companies even offer the opportunity for healthy individuals to bypass underwriting labs. Today, policies can potentially be issued in as little as 24 hours.

While the global pandemic has increased awareness around the need for life insurance, life insurance should always be viewed as an important financial planning tool that can help families build, manage, protect and pass on their assets and legacy. I’d encourage you to speak with a financial or insurance professional or your workplace benefits specialist to help you determine where life insurance fits into your financial plan, ensure the coverage you have continues to meet your needs, or explore your options if you need coverage or more of it.

(Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates. Lincoln Financial Group survey conducted by ENGINE INSIGHTS July 17-19, 2020. The views expressed are those of the authors as of the date specified. LCN: 3246616-091720)

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