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Although the best scenario would be to purchase life insurance when you are young, there are many that never do or have let their life insurance lapse.  Purchasing a whole life, universal life or no lapse guarantee life policy when your young helps keep costs down and helps those loved ones that are left behind when you are gone.  As you age you may develop health issues which makes getting a standard policy almost impossible.

If you or someone you know feels they cannot get life insurance because of health issues, there may be hope.  There are Final expense policies out there that provide whole life insurance to mature clients age 50-85 that wan a permanent policy.  They provide anywhere from $3000-25,000 in coverage, they have a guaranteed premium and guaranteed cash values.  Even if you cannot qualify for the Final Expense Whole Life policy there is a Graded Death Benefit Whole Life policy.  If the insured should pass in the first two years the beneficiary will receive the premium paid plus interest back.  After the first two years they will receive the face amount of the policy. 

What do you have to do to get one of these policies?  You must be able to answer "No" to several questions. Here is a sample of the questions that must be answered "No".

1. Has proposed insured been diagnosed by a member of the medical profession as having a terminal 
 illness? (Terminal illness is defined as any illness diagnosed that would reasonably be expected to cause 
 death within twenty-four (24) months.) ................................................................................................................................................
2. Is proposed insured currently confined to a hospital, nursing home or medical facility, or receiving 
 home health care? ........................................................................................................................................................................................
3. Has a member of the medical profession ever diagnosed the proposed insured with, or treated or 
 prescribed medication to the proposed insured for: Alzheimer’s / Dementia, Cystic Fibrosis or Sickle Cell 
 Anemia? .............................................................................................................................................................................................................
4. Has the proposed insured ever been diagnosed as having or been treated for AIDS (Acquired Immune 
 Deficiency Syndrome) or ARC (Aids Related Complex) by a member of the medical profession, or tested 
 positive for HIV antibodies as part of a test conducted for the purpose of obtaining insurance? ....................
The questions above must be answered “No” in order to qualify for the Graded Death Benefit Whole Life. 

5. Is proposed insured currently bedridden due to disease OR required to receive personal assistance with 
 activities of daily living such as bathing, dressing, eating, toileting or moving about? ..................................................
6. In the past 5 years, has a member of the medical profession diagnosed the proposed insured with, or 
 treated or prescribed medication to the proposed insured for: Alcohol or Drug abuse, Aneurysm, Angina, 
 Cancer other than basal cell, Cardiomyopathy, Chronic Bronchitis, Chronic Kidney Disease, Chronic 
 Obstructive Pulmonary Disease (COPD), Congestive Heart Failure, Coronary Artery Disease, Diabetes with 
 Vascular Disease / Heart Condition / Kidney Disease, Emphysema, Heart Attack, Liver Disease, Multiple 
 Sclerosis, Parkinson’s Disease, Pulmonary Fibrosis, Stroke or Systemic Lupus? .................................................................
7. In the past 5 years, has proposed insured been diagnosed as requiring OR undergone surgery for: Heart 
 Disease (including heart valve replacement, pacemaker, bypass, angioplasty or stents) or amputation due 
 to disease? ...............................................................................................................................................................................................................
If you can answer "No" to these additional questions you may qualify for the Final Expense Whole Life.

If someone you  know has been putting off getting life insurance, or thought they couldn't get any.  Call me today, I would be happy to help out.  Some life insurance is better than no life insurance!  Here is a great source for additional information about life insurance:  Life Insurance

Your Insurance Adviser,
Kim Gilles
kim.gilles@gillesinsurance.com
740-990-7107

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2 Comments

Philip A. Hendeles said...
If an agent and insurer issue policy proposals at an
age prior to the attained age, and the applicants age 1 year during the underwriting process, should the
applicants be insured at the younger or older ages ?
SATURDAY, NOVEMBER 15 2014 5:55 AM
Kim Gilles said...
Great question Philip,

Many consumers are unaware that most insurance companies use your nearest age rather than actual age to calculate your age and premium on a life insurance policy.

For example. Today is 11/18/2014. Let’s say you are 60 years old, and you turned 60 back in the beginning of April. So your birthday is April 1st, 1956. Your actual age may be 60, but for insurance purposes, you are 61, because you are over 6 months past your birthday, so you are actually closer to 61 than 60. That is how nearest age is calculated. For 6 months after your birthday, your nearest age matches your actual age, but if your birthday was over 6 months ago, your nearest age is one year older for insurance purposes.

Simply put, if you are applying for coverage, every year you wait to purchase life insurance, your premium increases. Take my example from above. If my client is a male, rated Preferred, here is the difference between the 60 and 61 year old rates.

Age 60 10 year term, $500,000 policy from Grange Life $2,115 per year

Age 61 10 year term, $500,000 policy from Grange Life $2,340 per year

As you can see, having a birthday can cost you a lot of money in life insurance premiums. The premium jumps 10% from age 60 to 61. Over the life of the 10 year term policy, a 61 year old policy holder from my example above will pay $2250 more than the 60 year old and the savings would be even more for a longer term.

Fortunately, life insurance companies let you backdate your policy to lock in a premium at a certain age. In the example above, my 60 year old turned 60 on April 1st. That means his insurance birthday would be six months later on October 1st. So if we just request the policy date to be Sept 30, he will still be nearest age 60. Insurance policy backdating is a very common trick used to keep premiums down. The only catch is that if you date the policy Sept 30th, you have to pay premiums from that date. So my client would have to pay for a few weeks of insurance when he wasn’t technically being covered. It is not uncommon to backdate two, three, or even four months to save age. If it means you have to pay a few months of premium up front to put the policy in force, it will still make sense if you are going to save 10% per year thereafter. You will typically break even within two to four years, and will be saving thereafter.

Keep in mind that not all companies use nearest age, some do use current age, but they too will save age if your birthday is during the underwriting process.

Hope this helps answer your question. Please don’t hesitate to contact me if you have additional questions. 740-990-7107

TUESDAY, NOVEMBER 18 2014 8:34 AM

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