Life insurance considerations for empty nesters Osceola Sentinel Tribune
29.04.10
Once your children have left the nest, a lot of things will change. You will find your grocery list looks a lot shorter, your electric bill a lot brighter and your water bill requires fewer liquid assets to pay it each month. But what does that mean for your life insurance?
Should your life insurance coverage look different when you no longer have kids in the roost? The answer is: it depends.
When you initially purchased your life insurance policy, you determined the death benefit that best fit your needs at that time in your life. Your death benefit may have included enough funds to pay off your mortgage, pay your children's tuition costs, pay off credit card and personal debts, and generally provide for your family when you no longer could. But how much of that death benefit is still necessary now that the kids are out of the house and on their own? The answer to this question depends on several factors.
1. What is your current debt? If your debt is the
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What is Simplified Issue Life Insurance?
A simplified issue life insurance policy is a life insurance policy that does not require a medical exam. It can be simplified issue for term life or whole life. You obtain coverage by completing an application, which typically consists of a set of yes or no health questions. Once you submit your application, it is reviewed by underwriters who check your medical records as well as your prescription history. If approved, your coverage starts immediately. In some cases, you can print your policy off from the privacy of your home without ever seeing or speaking to an agent.
What is the benefit of a simplified issue life insurance policy? The biggest benefit is that there is no medical exam, so these types of policies are usually approved faster. Depending on your age and health, you can get up to $500,000 of term life insurance without an exam or $100,000 worth of whole life insurance. For those who want coverage quickly without having to endure a physical, a simplified issue policy is a good choice.
What are some disadvantages of a simplified issue policy? If you opt for a policy without a medical exam, then be prepared to pay more for your coverage. Because the life insurance carrier is not fully checking your health with a medical exam, they are taking a higher risk when extending coverage to you. Because of this, the premiums are higher. A simplified issue life insurance policy also has a smaller face value than you could get if you went through a complete medical exam. Another disadvantage is that you have to be generally healthy to qualify for a simplified issue policy. If you have some serious health problems or preexisting conditions, then you are better off going through a medical exam.
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