It’s Time for Change

It’s Time for Change

by | June 11, 2020 | Financial Education | 0 comments

Life Happens stands against all forms of racism and injustice and in solidarity with the Black community. Over the past couple of weeks, we’ve taken the time to reflect on our organization, our mission as an educational nonprofit and our role in the broader industry we serve. We believe that Black lives matter and we know we have a voice and a responsibility to be part of the solution.

Our nonprofit organization aims to provide equal access to important financial information and educational resources, because we know financial empowerment and education are essential for equality. But we acknowledge that access to that information is not always equal, and we can do a better job of Black financial empowerment. It’s time for change. We can and need to do better to listen, learn and act for a long-term change that prioritizes equality and inclusivity, both within our own walls and as an industry.

Here are our commitments to start driving change. We recognize that this is just the beginning. and we will continue to evolve this list:

  • Expand the focus of our Life Lessons Scholarship Program to further support Black young adults who have lost their parents with little to no life insurance by awarding them scholarships to ensure that they receive the education they deserve. Our first step is awarding Mya Mercer a Life Lessons Scholarship so that she can pursue her dream of a college education. Watch her story.
  • Establish a diverse advisory group that is inclusive of Black insurance and financial professionals to seek out their perspectives to advance the resources and information we provide on critical protection products and financial advice. If you are interested in participating in this advisory group, please email mleyes (at) lifehappens.org.
  • Amplify the voices of Black financial leaders and Black-owned financial and insurance companies to make sure their knowledge and expertise reach a greater audience. This year, Life Happens will coordinate speaking panels dedicated to advancing the conversation within the industry on financial inclusion and driving equality for the Black community.
  • Commit to increasing the Black representation we have at Life Happens on our staff and on our Board of Directors.

It’s time for change. It’s time to do better.

4 Steps You Can Take to Feel More in Control Now

4 Steps You Can Take to Feel More in Control Now

by | May 14, 2020 | Disability Insurance, Financial Planning, Life Insurance | 0 comments

COVID-19 has upended life as we know it for millions of people around the world. Many of us—including the young and healthy—are seriously contemplating our mortality for the first time.

As the parent of a toddler, with a baby on the way, I’m definitely in this camp. It’s deeply unsettling to ponder how this virus has cut short so many lives in the span of just a few months.

I can’t escape the reality that I’m not invincible and never really have been. Whether it’s an accident, a terminal illness or an infectious disease, untimely deaths happen and none of us are assured a long, healthy life.

That thought paralyzed me before I decided to take a proactive approach to things. The good news is that there are concrete actions you can take today to protect the ones you love and get some peace of mind during these challenging times. Here are four definitely worth doing.

1. Prepare your will. Not even half of Americans have a will, which is a legal document that spells out your wishes for where your assets go and who cares for any minor children in the event you pass away. If you die without a will, your individual state’s laws will decide where your money and belongings go and who takes care of your kids. As if that isn’t bad enough, dying without a will generally delays the process of resolving your estate and can subject it to additional taxes.

Spare your loved ones from this experience with a will. Many people use a lawyer to draw up a will, especially if they have large or complicated estates. These days, many lawyers can help you via email, phone and teleconference, so don’t let social distancing stop you from getting a will.

Another option is to create a will online. This is a fast and inexpensive option for anyone on a budget or with uncomplicated needs. A few popular resources include LegalZoom, Quicken WillMaker & Trust and Do Your Own Will. (The final option is free!)

2. Create an advanced directive. An advanced directive is another legal document you’ll want to lock down. It explains what kind of medical care you’d want in the event you can’t speak for yourself.

The most common types of advanced directives are the living will and the durable power of attorney. A living will spells out your health care wishes in the event you’re terminally ill and unable to express your wishes or permanently unconscious. Meanwhile, a durable power of attorney is a document in which you name a trusted person to make health care decisions for you in the event you’re unable to do so.

An attorney can help you create an advanced directive or you can create one for free online using a form from your state. (Check your state’s website for its individual form.) If you go the latter route, make sure to check your state’s laws about advanced directives. Some require you to sign them in the presence of a witness, while others require them to be notarized. (And yes, you can now get documents notarized online through services like notarize.com.)

3. Look into life insurance. If anyone depends on your earnings or unpaid labor (I’m looking at you, stay-at-home parents and caregivers), it’s absolutely essential to have at least some life insurance in place. From funeral costs to the mortgage to everyday living expenses, life insurance steps in to smooth things over financially if you aren’t in the picture.

I know the last thing many of us want right now is an added expense. But this is one well worth having—and it’s probably a lot less than you think. A healthy 30-year-old can get a $250,000 20-year level term policy for just $13 a month.

Any amount of life insurance is better than none at all, so contact an agent today to get a policy that works for your life and budget. (Like lawyers and notaries, many of them can work with you over phone, email and teleconferencing tools!)

4. Consider disability insurance. Illnesses and injuries curtail many people’s careers and lifetime earnings unexpectedly every year. With respect to the current crisis, those hospitalized for COVID-19 often have long roads to recovery as well as lifelong complications. Whether the health challenge leads to short-term or permanent consequences, it’s hard to stay on top of bills when your paycheck stops.

This is where disability insurance can be a lifesaver. This “insurance for your paycheck” protects your income until you’re able to return to work. Like life insurance, there are policies for every situation and budget. Learn about the three main ways to get disability coverage.

I’m the first to admit that contemplating these realities isn’t a fun way to pass the time. But something far worse is knowing that the people I love the most would be in a bind if the unthinkable happened. Plus, tackling these to-do’s gave me a much-needed sense of control during these unpredictable times—I hope it does the same for you, too.

Life (Insurance) in the Time of COVID-19

Life (Insurance) in the Time of COVID-19

by | April 13, 2020 | Life Insurance | 0 comments

As the COVID-19 pandemic has spread, we’ve been bombarded with reminders of our own mortality. It has reinforced the idea that illness and death can come at any time, and that has some people thinking seriously about life insurance.

If you’re wondering if you have enough life insurance, you may also be wondering what you can do about it. With physical distancing protocols in place for much of the nation, you may think your insurance agent’s office is closed, and you may be asking yourself if you can even get life insurance during the worst pandemic the U.S. has seen in at least a century. Read on for the answer to that question and more.

With my agent’s office closed, can I still get life insurance?

“The world keeps on turning,” says Mike Letorney, a Boston-based insurance agent with more than 35 years of experience in the life insurance industry. Letorney’s staff members have all been working remotely, but you wouldn’t know it by calling his office, as Letorney’s phone system forwards callers to the right team expert instantly.

So insurance agencies are still functioning. But can I get life insurance in this environment?

“Yes, you can still get coverage,” says Derek Hensley, a Springfield, Ill., insurance agent. “We are trying to minimize physical contact, but we have an application you can start over the phone and complete via email.”

Can I just apply online?

You can start the process online, says Henley. “But we recommend actually speaking with an agent so you can have a conversation about your options, budget and coverage.” Another Springfield agent, Joe Ludtke, has embraced technology in his approach. “We’ve had Zoom and FaceTime conferences in addition to talking on the phone,” he says. Ludtke, who’s been an agent for 20 years, uses the initial meeting to address a household’s needs, then sends a quote and an application via email.

Will I have to get a physical exam?

In many cases, no. Most insurance companies set a coverage amount – anywhere from $100,000 to $500,000 – that can be applied for without a physical exam. “For the most part, we have a streamlined underwriting process,” says Hensley. “If you’re younger than age 50 and in reasonably good health, you may only have to do a phone interview to answer questions about your medical history.”

However, if you apply for an amount of coverage higher than an insurance company’s predetermined limit, or something comes up in your interview that requires closer inspection, the company could require a simple medical exam that can either be completed in your home or in a testing facility. “Of course, they are taking every precaution to make sure people won’t be exposed to the virus (COVID-19),” Hensley adds.

I’m not sick, but could COVID-19 affect whether I can get life insurance?

While neither the application process nor the underwriting criteria has changed substantially during the pandemic, some companies have added another step. “We ask applicants to sign a statement of health, which basically attests that they do not have COVID-19,” Ludtke says.

If something on my application limits how much insurance I can get, or if I can’t afford the policy I really need, am I just out of luck?

“Having something is better than nothing!” says Hensley. “So getting a simple policy now, like a term policy, might be a good idea, because it gives you affordable coverage right away – which is awesome, because many peoples’ paychecks have been affected.” He adds many term policies can be converted to a more permanent, complete solution once conditions improve.

Contact your local insurance agent to learn more about your life insurance options. If you don’t have one, you can use the Life Happens online Agent Locator. Plus, here is information about finding the right agent. Getting life insurance now could give you one less thing to worry about at a time you have more than enough on your plate.

A Financial Lifeline You May Have Forgotten About

A Financial Lifeline You May Have Forgotten About

by | March 24, 2020 | Life Insurance | 0 comments

So much has happened in the last few days and weeks that I feel like months have passed. Social distancing is now on everyone’s lips. And the goal is noble: flatten “the curve” and prevent more people from getting sick from the Coronavirus.

The impact, though, is being felt in so many ways by so many people: Schools are closed and parents need to stay home to take care of their children and can’t work. Restaurants, bars and local retail shops are shuttered, and all the people who own those businesses or work there or supply them are in financial peril as well. Many, many people are not only worried about getting sick, but worried about whether they will have a job to return to and if they can pay their bills in the meantime.

But I want to shine a light on a financial lifeline—a solution—you may have forgotten about. Permanent life insurance. Many people buy it for its lifetime protection. It’s often a “set it and forget it” solution. But the beauty of this financial tool is what it does while you aren’t paying attention to it: It accumulates cash value. Money—money that you can tap now to help tide you through this financial uncertainty.*

Mike Jaap owns a successful recycling business. When the last major financial crisis hit, he thought his business was doomed. Fortunately, his financial advisor had helped him put a permanent life insurance policy in place, which he was able to tap to see him through that tough financial time and keep his staff employed. In essence, his life insurance saved his business. You can watch his story here.

If you currently have a permanent life insurance policy (not a term policy—click here to understand the difference), contact your insurance agent or financial advisor and talk through how you can tap into that money. You can often access it in days. Or you can contact your insurance company directly as well.

You may not remember the conversation you had with your insurance agent or advisor when they talked you through the benefits purchasing permanent life insurance. But I can tell you with 100% certainty that one of the reasons they wanted you to have this coverage is so that right now, in a time like this, you could access that money—that cash value—to be OK financially. They did their job well then, and you can enjoy the benefit of your good financial decision now.

*Keep in mind that if you withdraw or borrowing funds from your policy, it will reduce its cash value and death benefit if not repaid.

Join Our Special “Love Insurance” Twitter Chat During #InsureYourLove

Join Our Special “Love Insurance” Twitter Chat During #InsureYourLove

by | March 24, 2020 | Life Insurance | 0 comments

Join us as we moderate a Twitter Chat during Insure Your Love Month along with NAIFA. We’ll discuss new data that shows Americans are delaying traditional life milestones and following alternative paths in favor of financial security.

We hope the chat helps promote how important financial security, including having adequate life insurance, is for couples.

Date: Thursday, Feb. 13 from 1:00 p.m. EDT to 2:00 p.m. EDT
Hashtag: use and follow #InsureYourLoveChat during the above timeframe

Life Happens will moderate the discussion and drive the conversation using the questions and statistics below. Remember, you’ll have to use the #InsureYourLoveChat hashtag in each tweet.

All statistics below come from the study “The New American Milestones,” Life Happens 2020.

Q1: 61% agree that traditional milestones are no longer important and following alternative paths in favor of financial security. Why has financial security become a top priority? #InsureYourLoveChat

Q2: We found a whopping 72% of Americans say financial security is an important act of love — with men more likely to agree that financial security is a genuine act of love compared with women. Why do you think there’s a gender difference? #InsureYourLoveChat

Q3: The #1 delayed life milestone is saving for retirement. How do we combat this? #InsureYourLoveChat

Q4: Life happens! How can people better prepare themselves financially for unexpected life changes? #InsureYourLoveChat

Q5: The majority of Americans report being more financially stable as a result of not following a traditional path. Why do you think this is? #InsureYourLoveChat

Q6: 28% of Americans worry about putting off long-term financial planning. That seems low. How do you help people with long-term financial planning? #InsureYourLoveChat

Help us spread financial awareness during Insure Your Love Month by participating in the #InsureYourLove Twitter chat.

5 Reasons Why Having Life Insurance Is Good for You

5 Reasons Why Having Life Insurance Is Good for You

by | January 8, 2020 | Life Insurance | 0 comments

We get it: No one wants to think about death—for us or the ones we love. And a lot of people equate life insurance with death. And while it IS there if the worst were to happen, it can also do so many other things, and doesn’t have to break your budget while doing it. Check out these great reasons to consider life insurance:

1. It’s part of a sound financial plan.

Insufficient coverage has severe consequences for many families. Our 2019 Insurance Barometer found that four in 10 households without any life insurance would have immediate trouble paying living expenses if their primary wage earner died. Life insurance helps with planning for your loved ones’ long-term health and happiness, providing you with peace of mind that your loved ones are financially protected.

If someone would suffer financially when you die, you need life insurance just like you need a savings or checking account. The money from the policy’s death benefit can help your family meet many important financial needs like funeral costs, daily living expenses and college funding.

2. It’s not as expensive as you think.

Many consumers believe that life insurance is either too complicated or too expensive to consider, creating a barrier to ownership with only 57 percent of people owning life insurance in 2019. In actuality, life insurance is inexpensive and much more accessible that you think. For a healthy 30-year-old, for example, they can get a 20-year term life insurance policy with $250,000 of coverage for about $13 a month. When you break it down life that, it’s easier to budget for and less scary to think about.

3. It can build cash value over time.

Permanent life insurance has a cash value or cash-surrender value, which means it can build cash value over time in addition to providing a death benefit to your beneficiaries. Just like most retirement and tuition savings plans, cash values can accumulate on a tax-deferred basis and be used in the future for any purpose you wish—a down payment on a home, college tuition or even income for your retirement.

This can be a good option as the borrowing rates tend to be relatively low and it’s not dependent on credit checks or other restrictions. Keep in mind, though, you’re ultimately responsible for repaying any loan as set out, to make sure your beneficiary receives the death benefit you had envisioned for them.

4. Life insurance can be more than just life insurance.

Riders to a life insurance contract or a specific kind of policy, can enhance coverage. For example, you could have a life insurance policy, sometimes called a hybrid policy, that includes a long-term care benefit to pay for long-term care services. If this is something you need down the line, you can take advantage of it, otherwise there is a death benefit for your beneficiary. There are a number of different riders available that can help you customize and boost your coverage.

5. It can help maximize your retirement.

If the financial obligations you had when you first purchased a permanent life insurance policy have ended, your policy can take on a new life and benefit your retirement. Structured correctly, your policy can provide supplemental retirement income via policy loans and withdrawals or even options for long-term care benefits.

Life insurance can also maximize a pension by supplementing a surviving spouse’s income, or established into a life insurance trust to allow you to pass on to your heirs outside of your estate (often avoiding both estate and income taxes).

So, what are next-steps? Why not do a quick calculation to see how much life insurance you may need with our online Life Insurance Needs Calculator here. And then plan on talking to an insurance agents about your needs and budget—remember, they will help you free of charge with no obligation.

4 End-of-Life Documents and Why You Need Them?

4 End-of-Life Documents and Why You Need Them?

by | December 10, 2019 | Financial Planning | 0 comments

Most of us aren’t keen to think about the end of life—especially our own. But discussing the need for and understanding end-of-life planning documents is important for all of us. So, what are these documents and why do you need them? Here’s a summary:

1. Durable power of attorney.

This appoints another person to transact business, legal and financial matters for you until you die.

Why do you need it? Lets say you are incapacitated by an accident or illness, it allows the person you’ve chosen to act for you—and quickly. That can help you avoid a lot of problems, including hard-to-get guardianship and conservatorship rights. (If you are unsure of what either of these two terms means, this article makes it clear.)

2. Appoint a health-care representative.

As with the first document, this allows someone to act on your behalf to make health-care decisions if you’re unable. It allows them to review health records, authorize admission to or discharge you from a hospital and make decisions about life-sustaining medical procedures.

Why do you need it? You’ll have peace of mind knowing that your wishes will be fulfilled as you intended, especially when it comes to life-sustaining medical procedures. It also helps avoid family arguments about who should have the final say.

3. Advance care directives or living will.

This puts in writing the decisions you have made about your health care—instructions, if you will, for your doctor—so that your wishes are followed if you are unable to articulate them.

Why do you need it? It ensures, for example, that you receive the treatment you’ve decided on beforehand if you are terminally ill or permanently unconscious. It helps make sure that the treatments you receive in a terminal or permanently unconscious situation are in keeping with your wishes and provides guidance to your health-care representative.

4. A will or revocable living trust.

This puts in writing who will inherit your assets when you die, and in what manner. These two documents can help eliminate, avoid or postpose taxes that are payable when you die. An attorney can help you decide which of these documents is better for you.

Why do you need these? If you do not have a will or a revocable living trust, basically the government will be able to decide how and to whom your assets are distributed, and it may not be to those you intended.

These legal documents require the guidance of a qualified legal advisor to insure they meet the requirements of your state of residency, and if you already have these but have moved to a new state, they should be reviewed to insure they comply with the laws of your state.

For Kids, Finances Need to Go Beyond Lemonade … to Marshmallows

For Kids, Finances Need to Go Beyond Lemonade … to Marshmallows

by | November 19, 2019 | Financial Fitness | 0 comments

The summer lemonade stand is a rite of passage for all kids. It is usually the first time a child gets to create their own business. They learn about the hard work it involves but also learn of its rewards, monetary and other. For my two girls, it was a lemonade and Oreo cookie stand so that they could broaden their potential “target audience.” It was quite the learning experience for them. They quickly learned that the 11-year-old was best at drawing in the customers, while the 14-year-old had better serving and counting skills. I watched as my girls learned how to market themselves and the product, how to make their customers happy and then how to manage their earnings.

As a mom to two young girls, I believe that one way we as parents can prepare our kids for a better financial future is to teach them the fundamentals of finance. That is why I love Liz Frazier’s new book “Beyond Piggy Banks and Lemonade Stands.” It takes off from the basics of financial literacy we as parents impart to our kids and goes beyond that summer lemonade stand. What happens after your kids have made that $10 in coins and dollar bills? How do they budget? How much should be spent now, what should be saved for later and what is given to charity?

The Importance of Delayed Gratification

One consistent theme throughout Liz’s book is the idea of delayed gratification. In a time when everything we could want is just a click away, it is something we as parents should be teaching our kids. They are being bombarded with the idea that the newest trendy shoes or that new video game is just a drone’s delivery away. There doesn’t seem to be a reason to postpone buying it NOW. But that mentality is setting our kids up to fail financially.

In her book, Liz mentions a study Stanford University conducted with children. It was called the Marshmallow Test. The kids in the test were offered the choice between one marshmallow now or two marshmallows after waiting 15 minutes. Stanford then followed up with these same kids over the next 40 years and found that those children who were able to delay their gratification for bigger rewards (those two marshmallows), had attained greater success and better lives overall.

4 Tips for Applying for Life Insurance After a Breast Cancer Diagnosis

4 Tips for Applying for Life Insurance After a Breast Cancer Diagnosis

by | October 29, 2019 | Life Insurance | 0 comments

After feeling a lump in her breast earlier this year, my wife, Julie, who’s 35, had a 3-D mammogram. The radiologist reviewed the results with her and scheduled a biopsy for the following week. That’s when we found out that she had high-grade ductal carcinoma in situ with microinvasion. In layman’s terms, she had an aggressive form of cancer in the milk ducts that had just begun to spread. Since it was high-grade, there was a higher risk of it coming back after treatment.

This was difficult for us to hear. We have a young son and have been trying to get pregnant again. Clearly, we needed to step back and rethink our plans for the future. After talking with the surgeon and because there’s a family history of breast cancer, Julie decided to have a double mastectomy. It seemed the safest path forward.

As I write this post, she’s had the surgery, as well as the first of three reconstructive surgeries, and she’s undergoing a six-week course of radiation therapy. She won’t need chemo, thankfully. As challenging as all of this has been, we are very fortunate that we’ve both had life insurance for many years. While we are optimistic about the long-term outcome, we’re also thankful for the peace of mind this protection gives us.

How Breast Cancer Stages Affect Eligibility

Julie and I own a life insurance business, and every day we talk with people who are seeking coverage after receiving a cancer diagnosis. Unfortunately, most are considered “uninsurable,” at least for a few years.

In the case of breast cancer, if you have an early-stage form, you may have to wait anywhere from several months to 10 years after treatment before you can get life insurance. And then, you’ll most likely have to pay more for your coverage for a while. When you’ve been cancer-free for five years or so, you may qualify for a rate reduction.

If you have stage 3 breast cancer, it may be 10 to 15 years before you’re eligible for coverage, and it will cost you more for the duration of the policy. With stage 4 breast cancer, you’re limited to guaranteed issue insurance, which maxes out at $40,000, or final expense insurance.

Applying for Insurance After a Breast Cancer Diagnosis

The following tips can help you navigate getting life insurance coverage after breast cancer.

1. Realize that your case is unique. Not all insurance companies will look at you and your diagnosis the same way. Because breast cancer involves so many factors (e.g., tumor size, location, invasiveness), companies typically handle applications on a case-by-case basis.

2. Don’t go it alone. When you were diagnosed, you talked with experts to help you navigate your journey. Similarly, when it comes to getting life insurance after breast cancer, work with an agent who has experience in this area. It’s their job to find you the best coverage for the best price—one that fits your budget. And know that talking with an insurance agent is always free.

3. Give your pathology report to your agent. Insurance companies offer a range of prices for their policies. With your pathology report, an agent can send your case to several insurance companies at the same time and ask for a “quick quote” to see whether the company will offer insurance and, if so, at what (estimated) price.

4. Get as much coverage as you can afford. If it’s in your budget, get a term life insurance policy for the maximum amount the insurance company will offer you, and get a long-term policy of 20 or 30 years. Although it’s more expensive to get coverage when you’ve had breast cancer, it’ll be worth the investment to protect those you love and to have peace of mind while you’re raising a family.

Remember, if you’ve had breast cancer, talk with an insurance agent to see what your options are. A reputable, experienced agent should be able to help you. Julie and I hope that we’ve been of help as well.

Join Life Happens and NAIFA for a Special Chat During #LIAM19

Join Life Happens and NAIFA for a Special Chat During #LIAM19

by | September 9, 2019 | Life Insurance | 0 comments

Join Life Happens and NAIFA representatives on Thursday, September 26th from 1:00-2:00pm EDT as we moderate a Twitter Chat focused on findings from the 2019 Insurance Barometer Study. There will be plenty of activity from the media, insurance companies, agents and consumers. We hope this chat helps promote life insurance awareness among the public and allows agents and companies to discuss important industry issues, best practices and solutions for ways to improve.

@LifeHappens and @NAIFA representatives will moderate and drive the discussion using the questions belowfrom the 2019 Insurance Barometer Study. Pass your answers through company compliance if needed. Remember, you’ll have to use the #LIAM19Chats hashtag in each tweet.

Q1: We found only 20% of Americans say they’re knowledgeable about life insurance. Do you think that number is low? What do you think can be done to raise it? #LIAM19chats

Q2: According to the 2019 Insurance Barometer Study, affording a comfortable retirement remains people’s top financial concern. How can life insurance help with this concern? #LIAM19chats

Q3: 85 million Americans use social media to learn more about agents and advisors. How do you use social media to build relationships and spread awareness about life insurance? #LIAM19chats

Q4: More than half of Americans have strong misperceptions on the cost of life insurance coverage. Why do you think this is? #LIAM19chats

Q5: #LIAM19 is coming to a close. How did you raise awareness around life insurance this month? Show us if you can! #LIAM19Chats

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