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           Protect your family and business....                        Get the Life Insurance coverage you need right here Now!

You want to provide life insurance for your family. But how do you decide how much life insurance you need? And how long will you need insurance coverage?

Things to consider......How much $$$ would my family need to complete plans for the future without me?

  • Look at your age
  • Are you married?
  • Do you have children? How many?  What ages?
  • How long will you be responsible for their care?
  • Do you have a mortgage on your home? How Long?
  • What is your net worth?

Some planners suggest a life insurance policy to cover 3 to 5 times your annual salary.

The Buy and Buy Again Problem

Some insurance agents will tell you not to worry. Just buy the cheaper 10 year term product and buy another 10 year term product when the first one runs out. Some companies even offer this strategy as a policy option they call "re-entry". What this life insurance agent in St. Louis MO at wequote.com will tell you is the problem with this re-entry logic is that you face all the medical and insurability issues over again. If your health changes you may not get a new 10 year policy for the price you think.

And how much would you save anyway? Is it really worth taking a chance? Using the same health status as we did for the 35 year old, a 45 year old can buy a 10 year policy for $400 and a 55 year old can buy a 10 year policy for $985. Let's compare that with the 20 and 30 year premiums:  

Age 10 + 10 + 10 20 Year 30 year
35 $165 $345 $529
45 $400 $345 $529
55 $985   $529


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         Yours for Life,

     Louis Hammond

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What would happen if you developed a more serious problem than weight gain? What if you became diabetic? The standard premiums could be increased with medical extras. Suddenly you could be looking at premiums that are double standard health.

Is this really a risk worth taking? Remember, if our 35 year old buys the 30 year premium today, the preferred premium of $529 is locked in for a period of 30 years. It cannot be changed by the company. Is $45 per month too much to pay for $500,000 of life insurance?

I remember when grandpa used to say, "when I was your age...". While I hate sounding like grandpa I remember the first 10 year level term policy that I ever purchased. I was 25 years old and the policy was for $100,000. The non-smoking premium was $205 per year guaranteed for 10 years. Compared to the decreasing term that I had been buying before, $205 was a bargain.

Compare that to our 35 year old non-smoker. For $529 per year he can buy $500,000 of 30 year guaranteed coverage. I have to tell you, in the strongest language possible, that it makes absolutely no sense trying to save money buying a 10 year policy. The added risk just isn't worth it. And if our 35 year old buys that 30 year term policy they can throw the policy in the top drawer and forget about it because the coverage and the premium are guaranteed for 30 years.
But let's take another look.

To see the benefits of insurance, let's assume that during the first 10 years you gained some weight. We'll assume that you're still insurable but that companies are no longer willing to give you the cheaper preferred rates that were available to you when you were 35. What would a standard health 10 year policy cost at age 45? Instead of a premium of $400 the premium would be $630. And what would a 55 year old pay for a standard health policy? Instead of a premium of $985 the premium would be $1,450. Let's look at the same chart again: 

Age 10 + 10 + 10 20 Year 30 year
35 $165 $345 $529
45 $630 $345 $529
55 $1,450   $529



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