Simplified Life Insurance

 In Insurance Advice

Simplified Life Insurance

You would do anything to protect your family and ensure they have a bright future, Right? 

Have you considered how your loved ones would continue on financially if you were no longer here?   

If there is one thing we’ve learned through the pandemic, it’s that life is fragile and it’s important to prepare for the unexpected.  Simplified Life insurance is a simple and affordable way to make sure your loved ones are taken care of.  It allows you to say to your loved ones, “I’ve got you” … and mean it.  

The Need

Recent LIMRA research shows that 42% of households would face financial hardship within six months should a wage earner die unexpectedly — 25% would suffer financially within a month.  There are at least 102 million Americans living with a life insurance coverage gap.  Are you one of those Americans?

Evaluating your life insurance needs should not be a one-time event.  Life is always changing and so are your financial needs.   Life insurance can be an effective and powerful way to transfer wealth and help protect your legacy, helping to ensure that your loved ones are taken care of after you are gone.   With a tax-free death benefit, tax-deferred growth, tax-free distributions, and no IRS income or contribution limits, life insurance can provide diversification in a well-rounded retirement strategy as well as protect should an unexpected death occur. 

The Unknown

There are many misconceptions about life insurance that I don’t want you to fall prey to. 

  • More than half of Americans overestimate the cost of life insurance by as much as threefold.  This is especially true for younger generations.  Younger consumers who do not yet have a spouse/partner or dependents may believe they can put off buying life insurance.  In reality, life insurance is significantly less expensive for the young and healthy.  Roughly 4 in 10 insured consumers wish they had purchased their policies at a younger age.  Buying a policy can protect their financial future and the financial security of their loved ones or future loved ones.  
  • I don’t think I will pass the medical exam.  There are many types of life policies that may not have a lengthy process, keep reading to find out.
  • I already have life insurance at my work.  Do you plan on staying at that job for your entire career?   If you are terminated or quit you may not be able to transfer your life policy to your new job.  It may be a good idea to have multiple policies with different term lengths, depending on your situation.

The Process

Nearly 46% of all Americans say they have put off purchasing the coverage they need.  This could be, in part, because they are intimidated by the process.  The pandemic has accelerated the adoption of simplified life insurance underwriting, making the process easier than ever before.  48% of consumers say they are more likely to buy using simplified life insurance underwriting.  The traditional life insurance underwriting process includes completing a physical medical exam and a lengthy questionnaire. This information would be reviewed to determine how much of a ‘risk’  the person has.  That risk score is used to calculate the cost of that life insurance policy.   

The traditional process would take between 45-60 days to complete.  Simplified life insurance underwriting is issued much quicker, with a short health exam, which calculates a modified risk assessment to base costs from. 

Sounds easy right?  Before you hit GO, there are a few downfalls of a simplified policy to consider.  Since underlying health issues can’t be factored in, the policy cost may be higher and the death benefit may be lower. 

The Solution

In chapter 6 of my book ‘Finding The Courage To Retire‘ I explain the need for life insurance later in life and how that can round out your retirement plan.  With the benefits listed above, no matter what your age, life insurance is an inexpensive tool to protect your family in their most significant time of need.  Life Insurance is the only way to guarantee “I’ve got you”.  

We would love to help you start the process of securing your loved one’s future.  At The Resource Center, we are an independent agent,  we have multiple companies to find the best rate for the highest amount of life insurance to meet your needs.  We can look at the benefits and costs of a simplified life insurance policy and a traditional term or whole life policy.  Feel free to give us a call or fill out the link at the bottom for a quote.

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Source: LIMRA

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and The Resource Center, Inc are not affiliated companies. Life insurance policies are contracts between the client and an insurance company. Life insurance product guarantees rely on the financial strength and claims-paying ability of the issuing insurer

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