Huntley Wealth Insurance 4849 Ronson Court, Suite 208 San Diego, CA 92111 877-996-9383 Phone 619-393-0370 Fax
About Us Term Life Insurance Males is owned by Huntley Wealth Insurance, under president Christopher J. Huntley. We have been in business since October of 2004 and are licensed in over 30 states. We specialize in providing affordable life insurance to individuals taking medications or health risks such as diabetes, coronary artery disease, and high blood pressure. Huntley Wealth Insurance has many agents nationwide ready to help with your insurance needs, and our president, Chris Huntley, remains active in assisting our clients with their insurance needs as well. Mr. Huntley is married with two beautiful daughters, and lives in San Diego, CA. For an instant quote, please use our quote form on the right. If you request an application, we will then contact you. However, we are currently receiving over 400 quote requests per month from our websites, so sometimes it may take more than a week to call you. If you wish to speak to us sooner, please call us at 877-996-9383.
What are the Different Types of Life Insurance There are two main types of life insurance policies, which are term and permanent life insurance. Within the two main types, there are subtypes as well. Which is best for you? Here’s a general explanation for each different type of life insurance policy we offer, and who is best suited for each type. Term Life Insurance 90% of our clients purchase term life insurance. Most term life insurance policies provide guaranteed coverage to age 95, with an affordable initial premium for a period of years (the term), such as 10, 20, or 30 years. It is the most affordable type of life insurance because of the low cost premiums during the initial term. Generally speaking, the shorter the term, the lower the premium, so 10 year term is the cheapest and 30 year term costs the most. After the initial term, the policy moves to an “annual renewable rate”, which will be determined by the insuring company at the end of the term. I typically see renewal rates at 4 to 8 times the premium during the initial term, so be sure to lock in as long of a term policy as you can afford, because you DO NOT want to pay those renewal rates. A lot of people never anticipate paying the renewal rates. They may only need coverage for a short period of time, perhaps to cover a loan, a business agreement, or to replace employment income. In this case, term is the perfect solution, since its initial premiums are so low. Why pay whole life
pricing if you only need the coverage for a short duration? For more information about Term Life Insurance, see our articles on 20 Year Term Life Insurance and 30 Year Term Life Insurance. Permanent Types of Coverage – Whole Life and Universal Life Insurance Whole Life Insurance This policy is designed to cover you for your “whole life”. The premiums are higher than in term or universal life, but that’s because it has superior benefits. It actually builds some very nice cash value, and pays dividends, so the benefits are much better. Two important benefits of whole life are: 1. Cash value is available for loan or withdraw 2. Dividends can be paid to you in case, used to reduce your premium, or to buy additional insurance, known as “paid up additions”. Whole life illustrations usually show two columns with for guaranteed cash values and death benefit, as well as “projected” or “assumed” cash value, dividends, and death benefit. The premium is much higher than term or universal life, but you have a lot more benefits with this policy. Take note that not all whole life policies pay dividends. If they do, they will be illustrated in the “non guaranteed assumptions” column as “Projected Dividends”. They are not guaranteed. One benefit of the dividends, if available, is you could take them in cash, thereby reducing your total outlay. Or dividends could be taken as cash in your pocket, or for other purposes as I mentioned above. For more information, see our article on The Cost of Whole Life Insurance.
Universal Life Insurance This type of policy is similar to whole life, as it may provide coverage for life, but the coverage and premiums are much more flexible. Like whole life, there must be sufficient premiums or cash value to pay the policy costs and keep the universal life policy in force. But since the costs of insurance and rate of interest the cash value may earn are both variable, universal life is usually purchased and premiums are determined by “illustrating” these variables to see how the policy will perform. In other words, we guess. Then every year or two, a new illustration with “current” policy costs and interest rates is usually requested to see how the policy is performing. The benefit to universal life is you may be able to pay far lower premiums to keep the policy in force for life than in whole life. For example, if you buy a UL policy in times of high interest rates, your cash values may accelerate rapidly, outperforming your original expectations, and allowing you to pay less in premiums in future years. But it can also work in reverse. If the cash values don’t grow as originally expected, you’ll have to pay higher premiums than initially illustrated to keep your coverage in force. Two popular types of UL’s are Guaranteed UL’s, which I will cover below, and indexed universal life policies. “Guaranteed” Universal Life Insurance This type of policy is built on a universal life base, but acts more like a term policy to age 100 or 120. Most companies offer their UL policies with an optional “No Lapse Guarantee” feature, which essentially cancels out the “adjustable” features of a universal life policy and the need for cash value to sustain the policy. So you may have a no lapse guarantee to age 100 on your policy. In this case, you will pay the minimum premium necessary to keep your
policy in force through age 100, and you will probably accumulate little to no cash, but with the “no lapse guarantee”, that’s okay. You don’t need it. The problem with guaranteed universal life is that since you have no cash value to sustain the policy, you’re in trouble if you miss a premium. With regular universal life, no big deal if you skip a premium, but with guaranteed, you must stay on schedule or your “guarantee” could be in jeopardy. Variations of Term Life Insurance Hybrid Policies Term/Universal Life Hybrids – A few companies have come out with a form of guaranteed universal life with options for very short “no lapse guarantee” riders. The “no lapse guarantee” portion of the policy may only last for a duration such as 10, 20, or 30 years. Just like guaranteed universal life policies do to age 100 or 120, these riders mandate that even if the policy has no cash value, the death benefit and premium are still guaranteed to stay fixed during the initial term selected. After the initial term, the policy reverts back to a plain universal life policy where higher premiums and cash value will be needed to sustain the policy. Return of Premium Term Life Insurance These policies charge you an additional premium so that at the end of your term, 100% of all premiums pay (for the base policy as well as the return of premium rider) are paid back to you if death has not occurred. See our article on Return of Premium life insurance. “Odd” Term Durations While almost every company offers 10, 15, 20, and 30 year term, some companies offer other term lengths, but this is not the norm. Some offer 5 year term, but I have yet to
find a 5 year term policy any cheaper than my 10 year term options, so I don’t sell them. American General offers almost any term length you can imagine with their Select-ATerm product line, such as 16 year term, or 24 year term, etc. Prudential (Pruco Life) has a term policy that offer insurance to age 65, regardless of your age, with the intention of providing coverage through your working career. This can lead to odd term durations. For example, if you’re 38 and purchase their Workforce 65 policy, it is essentially a 27 year term policy. What’s the Difference? Which one is right for me? If you only need life insurance for a short period of time such as 10 to 30 years, term is the way to go. If you want coverage in place for the rest of your life at the lowest premium available, you want guaranteed universal life. If you want the flexibility of paying your premiums when you want, and are okay with constantly monitoring your policy values, then a vanilla universal life may be appropriate for you. And if you want coverage for life with guaranteed cash accumulation, then you should consider whole life insurance. For more information, please visit our category about Types of Life Insurance or call us at 877-996-9383.
Can I Purchase Life Insurance on My Parents? In most cases, you can purchase life insurance policies for your parents with their knowledge and approval. But how do you go about doing this, and what is the appropriate amount and type of coverage? We will cover these questions and more in this article. The most popular types of policies for parents are term life insurance, whole life insurance, and second-to-die policies. See below to determine the best type of coverage for your parents. Is Buying Life Insurance on My Parents a Good Deal? Prior to age 85, it seems life insurance can still be purchased for a relatively affordable premium. For example, you would pay $14,560 per year for an 83 year old mother in good health for a $250,000 policy guaranteed for life with North American Co for Life and Health. If we assume she has a life expectany of 10 years, you will have paid $145,600 into the policy after 10 years. If she were to pass away at any point before that, it seems to be a great rate of return on your premium. You certainly wouldn’t be able to match that kind of return in any alternative investment. If your parents are younger than 80 and in good health, life insurance is an incredible leveraging tool, and makes even more sense than in the example above. Honestly, life insurance loses leveraging power after age 85 and is pretty expensive. See the quote form on the right for an instant quote.
Ownership of Policy: One of the first things I ask the child when he/she calls me is who would be the owner and payor of the policy. In some cases, children are simply calling on behalf of their parents who are not internet savvy, and are doing nothing more than helping their parents, who don’t know how to buy life insurance, with the quoting and application process, but that the parents will be paying for the policy.
Your parents will first, need to be aware that the policy is being taken out on them. It’s impossible for them not to know, since they will need to sign the application as the “primary insured” or “primary applicant”. Most policies will also require a medical exam. It’s really not too complicated. You just complete an application, (sometimes the medical exam), and then wait for approval.
In other cases, you have children who will be the owner of the policy, pay the premiums, and also be the beneficiary of the death proceeds. Usually this is okay as long as the child can prove an insurable interest. This is 100% legal, but will require approval by the insurance company.
Term is the most common type of insurance sold today, because it offers the lowest cost for level premiums during the duration of the term. You must consider your parents’ life expectancy, however, if you’re considering term. You don’t want to get a 10 year term if you actually need the coverage for as long as they live.
An insurable interest means that the child would be somehow financially affected by the death of his or her parents. So if your parents have a big mortgage on their home, and you don’t want to inherit their debt, life insurance may be in order. Or if you are responsible for your parents’ funeral and burial arrangements, life insurance may be used for this. How Much Life Insurance Can I Purchase on My Parents? The trick is to apply for a reasonable amount of coverage to protect you from financial hardship. The idea is to be indemnified, or made whole… not to get rich off your parents’ death. So if your 81 year old mother is living with you, and lives off social security, and provides no financial benefit to your family, and has no debt, you would not, for example, be approved for a 1 million dollar life insurance policy. In most cases, a $100,000 life insurance policy for parents is approved without hitting any barriers. Beyond this, financial justification will be required. Requirements to Purchase Life Insurance on Your Parents
Types of Life Insurance for Parents:
In the latter case, whole life insurance, or its little sister, universal life insurance (a lower cost policy offering coverage for life), may be more suitable for you. You can get quotes in our quote form on the right to age 100 or 121, which are guaranteed universal life insurance policies. Another popular choice for parents is a second-to-die policy. As the name indicates, this policy only pays out one death benefit, upon death of the second parent. This type of insurance is popular in combination with estate planning and life insurance trusts, but not necessarily. Please note if your mother or father have health issues, please see our post on impaired risk life insurance, for details on how we are able to provide affordable life insurance to our clients with history of stroke, heart disease, cancer, diabetes, etc. For the best term life insurance prices on your parents, or any other type of life insurance, it’s best to speak with a knowledgeable professional, who can discuss your options and pricing with you. You may get a quote using our form on the right or by calling us at 877-996-9383.
Life Insurance Ages 76 to 80 One of the more common questions we get here at Huntley Wealth Insurance is whether or not you can purchase life insurance between the ages of 76 to 80, and if we can help. Yes, you can qualify for coverage at this age, and even all the way up to age 90, and yes, we will help you find the best life insurance for seniors over 75 at the best rates for your needs. How Much Does Life Insurance Cost at Age 76-80? The cost of life insurance at age 76, 77, 78, etc., really depends on your health. Some of our clients have never experienced health issues, who will be candidates to qualify for preferred health ratings, and lower premiums. Sample Term Quotes for $25,000 Coverage Type of Insurance 10 Year Term Male Age 76 $113 (ALL QUOTES PER MONTH) male Age 77 $125 Male Age 78 $143 Male Age 79 $161 Male Age 80 $183
To Age 121 $124 $132 $143 $159 $180
Quotes based on premiums for a male in Preferred Non tobacco health classification as of 11/21/11. Please use our quote form on the right for a quick quote, but please understand that these quotes should be used as a general guideline, and be sure to read the section
below titled “Your health affects your premium” to understand the pricing better. Your Health Affects Your Premium When you think of an individual at age 78 or age 79, it’s pretty rare to find one who does not at least take a couple medications, even if it’s for something as mild as hypertension or osteoporosis. With a minor issue such as these, affordable coverage is not hard to find. If your medical impairment is not too complicated, you may be able to be approved at preferred or standard rates. This means you’ll pay a lower premium for the same amount of coverage than a policyholder who is approved at a substandard health rating. Some very simple medical issues to insure are history of high blood pressure or history of high cholesterol, so if that’ all you’re being treated for, feel free to run an instant life insurance quote with our form on the right and classify yourself as “preferred”. If these are now being treated with medication, and are at controlled levels, most insurance companies will still approve you at their preferred health rates. However, if your health history is more serious, you may be approved at a substandard rating or possibly declined. Some tougher health risks are people with heart disease, history of cancer, and other ailments. How Much Insurance Should I have at 76 to 80 Years Old? This question really depends on who is dependent on you for income, and to what
extent. For example, I recently helped a retired Marine colonel, age 79, purchase $1,000,000 of term life insurance. He needed this much because he was married, and most of his pension and retirement income stopped upon his death, leaving his wife nothing to live on. We determined that $1 Million would be sufficient to provide his wife with $50,000 per year of income, without ever depleting. So income replacement is one calculation you could do to determine how much protection you need to purchase. You might also need life insurance to cover debts upon your death, such as a mortgage or credit cards, and don’t want to leave your family with debts. This is an excellent reason to purchase life insurance. I have one client at age 80 who purchased a 10 year term policy on her life for $125,000 to cover the cost of her mortgage upon her death. Estate Planning and Taxes Another common reason seniors purchase life insurance is to fund a life insurance trust, which may help avoid paying excess estate taxes. Perhaps you are searching for life insurance on your father or mother, age 78, 79, etc. This is very common for a child to help her parents with the life insurance process. In some cases, you may even become the owner, payor, and beneficiary of the policy. In this instance, your mother or father is nothing more than the insured on the policy. If you are age 76, age 77, all the way up to age 80 and need life insurance advice, we would love to help. Call us at 877-996-
9383 to discuss your life insurance goals and needs, and we will help you find the most cost effective life insurance plan for your needs.
Yes, You Can Still Qualify up to Age 85. Sample Quotes Below. Yes, you can still purchase life insurance between the ages of 81 to 85, and in some cases, even to age 90. Before reading too much below, let’s look at some sample cost of insurance rates. I always feel it’s best to discuss life insurance pricing right out of the gate when dealing with my clients over age 80, since sometimes the premiums are prohibitive. The quotes below are for a male age 81, 82, 83, etc in good health, who can qualify for the best health classification, and purchasing a 10 year term policy. Age $100,000 Male Age 81 $395 Male Age 82 $453 Male Age 83 $531 Male Age 84 $620 Male Age 85 $718
$250,000 $903 per month $1049 per month $1245 per month $1468 per month $1719 per month
Note: Life insurance for people over 80 listed above are valid as of 12/2/2011 and subject to change. Not available in all states, and based on Preferred Non Tobacco User. Please keep in mind you can also get quotes for $25,000 or $50,000. You don’t have to buy $100,000 if the premiums are out of your budget. Use our quote form on the right for a quick quote.
You should also be aware that if the cost of life insurance as a senior is prohibitive, you can potentially save thousands per year by purchasing a second-to-die policy, which only pays a death benefit upon the second death. This could be the perfect solution for a estate planning need or to leave an inheritance to your children. How to Purchase Life Insurance at Ages 81 to 85 The key purchasing life insurance at age 82 or 84 years old, or any age for that matter, is your health. If you’re healthy and have had no history of serious medical impairments, such diabetes, COPD, or heart disease, you will pay a lower premium than the policyholder who has had medical problems. Having said that, be sure to speak to an experienced independent agent such as myself, Chris Huntley, about your health history. A good agent will know which company will give the best health classification, and therefore lowest premium. Try to stay away from insurance agents whose primary specialty is selling auto or home insurance, such as through Farmers Insurance or State Farm Insurance. Their life insurance rates are rarely as low as the rates an independent agent can find for you using companies like Transamerica, Banner Life Insurance, or Prudential. Many other large, A rated life insurance companies still offer life insurance beyond age 81 and age 82, such as MetLife, Protective Life Insurance, and Aviva Life Insurance.
Requirements to Purchase When Over 80 Years Old Whether you are 85 years old or less, you’ll need to take a paramed exam (medical exam), which is usually done at your home at the insurance company’s expense. It will usually require blood withdrawal, urinalysis, and sometimes an EKG. For large insurance amounts, other requirements may be ordered. It’s important you realize the quotes above are for a 10 year term policy, which means the premiums will be level guaranteed for the first 10 years, but then will increase thereafter. For guaranteed level premiums for life, the premiums will be higher by about 15% to 20%. For example, a healthy man at age 83 can purchase a guaranteed $100,000 universal life policy to age 121 for $638 per month, a 20 percent increase over the 10 year term policy. Of course the benefit is that after the first 10 years since the policy was issued, if the applicant is now 93 and still living, he’ll still have level premiums he can afford, whereas the 10 year term policy’s premiums may adjust to an astronomical number. Purpose of Getting Cover in Your Eighties In life insurance policies, the policy holder pays a premium (the cost of insurance), either on a regular basis, such as annually or monthly, or as a lump sum. Of course the advantage to the owner is the peace of mind knowing that the insured individual’s death will not lead to financial difficulty for the deceased’s loved ones.
Estate Liquidity Say youâ€™re 85 years old and most of your assets are tied up in real estate holdings or business ownership. Upon your death, your beneficiaries would be able to make better decisions about whether to hold or sell your assets if some liquid cash is available to them by way of life insurance. No one who has spent a lifetime building wealth wishes for those assets to be sold off immediately upon their death due to a need for cash. Suppose your estate is taxable and the trustee needs to raise cash to pay the estate tax bill, which by the way, is due 9 months from the date of death. Life insurance can solve this problem. Which Type of Insurance is Best at Age 81, 82, 83, 84, 85? There are only two types of policies you can buy once you reach age 81 to age 85, which are 10 year term (sorry, 15 year is no longer available at this age), and whole life insurance. With term life insurance you buy a limited, defined term such as 10 years. Whole life, on the other hand, covers you for your whole life until you pass away, or in some cases, until you reach a specified age such as 100. Since in your eighties, permanent or whole life insurance only costs a fraction more than 10 year term, I would recommend a permanent policy if you can afford it. For example, if you have a male at age 82 purchase 10 year term, he might outlive the coverage if he can just live to age 93, which is certainly possible if this 82 year old is in good health.
Can I purchase for my Mother, Father, Parents? Yes. They must be aware of it, but you can be the owner of the policy, pay the premiums, and determine who will be the benefactor of the funds upon death, which could be yourself. Please see our article about purchasing life insurance on your parents for more information. Call us at 877-996-9383 for a no obligation quote for your parent or yourself for term life insurance or whole life.