Ed Hinerman On Life Insurance

How Do You Compare With Other Americans When It Comes To Life Insurance??

The following facts were taken from a study done by LIMRA, (Life Insurance and Market Research Association). In reading these results I am struck by the fact that as insurance professionals we are faced with an underserved market. Customers know they need it, they like it and they want it. They just can’t seem to connect with someone to help them.

Fact: Nearly three out of four Americans agree that life insurance is the best way to protect against premature death of a primary wage earner.

Fact: Twnety four million households have NO life insurance protection at all. Almost one third of adults have NO life insurance protection.

Fact: Forty four percent of all US households (48 million) either don’t own life insurance and believe they should, or own life insurance and believe they need more. Among those that already own some life insurance, 40% believe they don’t have enough.

Fact: One fourth of primary wage earners feel they do not have a plan in place to provide a decent standard of living for their family if they died tomorrow. Twelve percent of families would immediately have trouble meeting everyday living expenses and another fifteen percent would have difficulty keeping up after several months.

Fact: Americans would like to discuss life insurance with a financial professional. Consumers feel buying life insurance is an important and complex financial decision. Half of them find it difficult to decide how much to buy and 43 percent worry about making the wrong decision.

Bottom line. The reason people know they need it and don’t pursue it is they don’t know how to find someone they can trust . They want professional guidance, not a salesperson.

1 comment August 1st, 2007

Prudential Stands Out In Fair Underwriting For Seniors!!

At least one life insurance company out there has come to grips with and made a positive allowance for the fact that as we get older, most of us tend to weigh a little more than we did in our 40’s and 50’s. This is certainly not to say that Prudential has taken a strong stance in favor of obesity, but rather they have taken a reasonable stance (a rare occurrence with insurance companies) on a fairly normal life/age change.

In most cases if you are 65 or older Prudential’s build guidelines can make a one to two rate class difference over other companies. This means that the rate you pay could potentially be 30% or more lower because of their allowance for higher weights.

Just to put some numbers to what this means, let’s assume a 66 year old is applying for $100,000 of 15 year term insurance. He doesn’t have any health problems and has a great family history. His height is 6′ and his weight 225#.

With Prudential he would qualify for their best rate at $989 annually.  The next best rate would be with Banner Life at $1367.00. This is huge, especially for someone who may have been penalyzed due to build prior to age 65. It could open the door to locking in lower rates when you most need them, at retirement. This could fit in perfectly with people that are looking at a life insurance supplement to maximize their retirement options.

Bottom line. If you are 65 or older and not getting the best rates due to build, call an independent agent and find out if The Rock might provide your best option.

Add comment August 1st, 2007