Ed Hinerman On Life Insurance

Fat March Nears The End! Weight And Rates Fall.

As the Fat March participants near the end of their 570 mile quest for weight loss, pounds continue to disappear and once again we will analyze the weight loss in the context of what impact it would have on life insurance rates.

A couple of notes on participants that won’t be continuing. Matt, a former professional wrestler, was forced to quit due to the excruciating pain from a knee problem. They showed x rays of his knee and the joint was literally rubbing bone against bone as he walked. He had lost 55 pounds up to the end of the last episode and had lowered his insurance rates for $250,000 or 20 year term insurance from a beginning $613 annual down to $478, a 22% decrease.

Anthony was voted off. He had dropped an impressive 80#’s, from 433#’s to 353#’s. His life insurance rates went from $560 annually, to $441, a 21% decrease.

Even though Will was voted off the show last week, he has been kind of enough to stay in touch. His weight as of last Friday was down to 384#’s from his starting weight of 480#’s. You may remember that at the beginning, Will and Shane were the only two who were uninsurable due to their weight. Will’s current rate would be $500 a year and he is literally just a few pounds from the next lower rate class and also his personal goal of having lost 100#’s.

So, the remaining contestants as of the end of episode 4. Remember, the rates are based on $250,000 of 20 year term insurance. There are no health issues figured in and the rates are based on weight remaining off for more than 12 months.

1. Michael started at 319 and is now 252. Start $735, 4th $420, now $375.

2. Chantal started at 250 and is now 213. Start $535, 4th $421, still $421.

3. Sam started at 382 and is now 314. Start $686, 4th $553, still at $486.4. Jami Lynn started at 236 and is now 198. Start $430, 4th $356, still at $165.

5. Loralie started at 241 and is now 197. Start $381, 4th $225, still at $225.

6. Shea started at 289 and is now 244. Start $475, 4th $310, now at $225.

Bottom line. Dramatic weight loss. Dramatic changes in insurability and insurance rates. Life insurance underwriters know that with the decrease in weight comes a decrease in other risk factors associated to weight such as diabetes, heart disease and some forms of cancer.

Add comment September 4th, 2007

Single Women and Life Insurance!

The carefree life of the young and single! Been there and done that, and I don’t believe I was the odd person out when I failed to plan for the future. My assumption was that if things changed I would deal with it as it came up. That included any thoughts about life insurance. Why buy life insurance when for all I cared, if I passed away, someone could just put me out with the trash on Wednesday?

For the single woman I suspect this is easier to wrap your mind around than it is for a single man. It’s been my take on the situation that woman actually develop brains at a much younger age than men. So, why life insurance?

Although it may seem like an unneeded expense right now, it would be very odd indeed that you will make it out of your 30’s without having a genuine need for life insurance. To purchase it before there is a need is actually a prudent move, as the younger you purchase life insurance, the more you can get and the longer you can lock it in for, at costs that you will never see again simply due to age.

In my last several posts I have covered a number of areas where women need life insurance. In each of those instances there would have been a benefit to planning ahead and owning that insurance at the lowest possible price.

I won’t try to interject rocket science into this idea. My recommendation would be to take out some reasonable amount of insurance based on your current situation, where you think you might be headed, and of course, your budget. Remember, this only works if it stays in force, so budget is critical. I would recommend a 30 year return of premium term. This provides the most options down the road.

Bottom line. Buying life insurance when you are young, single and healthy is a prudent thing to do. Buying young offers you the most options at the best prices. Buying while you are single is a wise planning move. Buying while you are in good health speaks for itself.

2 comments September 4th, 2007