Life Cycle Financial Planners, LLC

Tag: life insurance

  • Wealthy People Own Jumbo Life Insurance Policies – For Good Reason.

    Wealthy People Own Jumbo Life Insurance Policies – For Good Reason.

    Most wealthy people wish to preserve and protect their assets from federal estate taxes when those assets are transferred to their heirs. Perhaps you’re in this situation, and are looking for the best solution?

    High net worth people use large amounts of life insurance to create the lowest possible cost of liquidity for the purpose of minimizing the impact of estate taxes. Without life insurance, federal estate taxes are paid 100% from estate assets.

    Jumbo life insurance coverage, (often financed in a creative way), is a critical element in state-of-the-art succession planning and will help you transfer wealth with ease and much greater certainty.

    High net worth people pay close to 50% in estate tax, on top of paying many other taxes while accumulating their wealth. 

    Minimizing the burden of taxation on transferred wealth is sensible planning.

    For these reasons, properly structured permanent life insurance is a necessary part of sophisticated estate planning strategies. To support and enhance these planning techniques, life insurance guarantees that liquidity is available upon death. This means less pain for your heirs.

    Highly regarded income and estate planning attorneys are leading advocates of life insurance for estate planning purposes because it creates the immediate liquidity that binds their wealth transfer plans. 

    Use your existing assets to secure jumbo life insurance coverage.

    The cost of life insurance is low when structured properly. It is very important to understand how the jumbo life insurance definition affects pricing. 

    The cost of life insurance is a fraction of the return generated from the death benefit. 

    As people become more wealthy, it becomes increasingly more difficult, without insurance, to successfully protect the majority of their assets from estate and gift taxation.

    Once the decision to purchase life insurance coverage is made, the question of how to best pay for the insurance can be considered. These issues are dependent upon many factors and it is why customization is always best. Should the premiums be accelerated? Should the coverage be whole life or indexed universal life?

    Does premium financing make sense?

    Borrow the Premiums to Pay For the Life Insurance Policy.

    Premium Financing:

    • Borrowing the premiums from a bank can be an optimal way to fund permanent life insurance while offering great flexibility in the future.
    • Uses well managed loans to drive down out of pocket costs.
    • Non recourse design requires minimal collateral other than the life insurance policy.
    • Results in fully funded policies with many options to pay off the loan (always dependent on projections).
    • Minimizes out of pocket costs in all years until the anticipated exit strategies pays off the loan.

    Work With Me To Help You Structure The Right Plan.

    For 30+ years, I have been working with individuals, families and businesses facing these very same issues. Typically, my clients work with a team of cutting edge professionals. Whether they are estate planning attorneys, CPAs and wealth managers, my clients are people who appreciate expertise from professionals who bring valuable experience from their respective fields. I have helped my clients acquire more than $1B of permanent life insurance coverage and I have placed individual policies in excess of $50,000,000. I work with my clients to create value in many ways.

    Driving down the commissions in jumbo life insurance policies can have a direct correlation to better policy performance in the early years.

    I will help you get the best underwriting offers possible. It is critical to help the underwriters properly evaluate an applicant’s medical history in order to qualify for the best rate class.

    Testimonial:

    “After spending several years working with top tier estate and tax advisors to put a succession plan in place, our counsel put us in touch with Ted Bernstein for the purpose of getting life insurance. I can’t say it any simpler than by saying, after working with Ted, I became aware that there is a real difference between insurance people. Ted is approachable and good at making insurance relatable.” Jake Garlick, Virginia

    Please contact Ted Bernstein at 561-771-4647 or email him at TB@LifeCyclePlanners.com. He offers a complimentary consultation to discuss anything you wish about premium financing, succession planning and wealth preservation. If you have questions about Private Placement Life Insurance (PPLI), Ted can help make sense of this very complicated vehicle.

  • Best Life Insurance Policy – All Done Online, No Medical Exam, No Blood. One Hour Approval.

    Best Life Insurance Policy – All Done Online, No Medical Exam, No Blood. One Hour Approval.

    Are the premiums higher if you buy life insurance without going through medical underwriting such as bloodwork or a medical examination? The answer is no. You can obtain the best life insurance policy online without a visit from a medical professional. That means the best rates and the best policies are available online. Accelerated underwriting does not mean expensive, guaranteed issue. The insurance company still underwrites each individual policy but in a completely new way. Some life insurance companies are leading the way by using information and data they believe is better.

    Although this may be counter-intuitive, you do not pay more. Buying life insurance online is not “buying direct” from the insurance company either. Life insurance companies do not sell policies direct to consumers. They sell only through licensed insurance agents, without exception. Some insurance companies tried going direct, without success. Life insurance is sold, not bought.

    Behind every online site selling life insurance, there is a licensed life insurance agent. For every sale, the insurance company pays a commission to the licensed agent named in your application. You may not realize a life insurance agent is writing the policy, but in fact, it is required by law. Some of these online agencies are hoping consumers believe there is an advantage in going “direct” and cutting out agents. It helps to know that online sites are no different than any other insurance agents or agencies.

    Why It Matters.

    Now that you know there is an agent getting paid a reasonable, non-negotiable commission, you want to always use the help and guidance built into the pricing of the policy. The insurance companies want educated consumers. Some life insurance buyers may incorrectly assume that buying online is “going direct”.

    State of the Art.

    In conclusion, you can now purchase the best life insurance policy online and get it done WITHOUT A MEDICAL EXAM, without lab tests (non blood or urine) or face-to-face visits, if that is what you prefer. The maximum is $5,000,000 per person and we have companies that write up to age 65 without medical evidence. The whole process can be done within an hour. 

    Contact us for a quote to apply and buy. Reach Ted Bernstein at 561-771-4647 or by email. We are close. People often search for “life insurance near me” or “life insurance agent near me” and we are one of the results. Online, we’re all close for business purposes. It truly is one of the great benefits of the Internet. Check out our 5 Star rating on Google or on our testimonial page.

  • Accelerated Benefits Turn Life Insurance Into Emergency Health Fund.

    Accelerated Benefits Turn Life Insurance Into Emergency Health Fund.

    After A Critical or Chronic Health Event, Advances Are Made Against The Face Value, Not The Cash Value:

    We don’t often use a term like “groundbreaking” when talking about life insurance. But in the case of living benefits, the policyowner now has the ability to take a no cost advance against the policy’s face amount, after a critical or chronic health event. This feature is now available on all types of life insurance policies. Since 2012, we have been helping life insurance buyers learn about and enhance their coverage by adding this option. The ability to take an advance for which there is no additional cost could prove to be invaluable. Also referred to as Living Benefits, accelerated benefits are revolutionizing life insurance policies. Life insurance has traditionally benefited survivors only. The addition of living benefits transforms life insurance into an asset that also benefits owners of life insurance during their lifetime.

    Does your current policy allow you to take an advance against the face amount? Most likely, it does not. But now, you can get a better policy with accelerated benefits. Both term and permanent coverage are available with this option, from several top rated carriers. The question to ask yourself is ‘why keep an outdated policy that doesn’t have living benefits’?

    What is most important to know about living benefits? The advance is unrelated to whether or not there is cash value in the policy. This point is best illustrated through an example. Assume a 40 year old has a $2,000,000 TERM INSURANCE policy with an annual premium of $1500 per year. This policy will never have cash value but it is always eligible for getting an advance against the face value. Let’s further assume that the policyowner has a qualifying event in the 3rd year, entitling him/her to take an advance of $250,000. Of course, this term policy has no cash value and only $4500 in total premiums were paid to this point. The policy still qualifies for a $250,000 (or more) benefit, AGAINST THE FACE VALUE.

    Life insurance needs to be more relatable”, says Deborah Bernstein, owner of Life Cycle Planners. With accelerated benefits, people might think of this option the same way we thought about seat belts when they first appeared in cars. Would anyone accept a car without seat belts once they became available? The accelerated benefits add no cost to the policy but they dramatically increase its value”, she stresses.

    The living benefits turn a life insurance policy into an asset with a dual purpose. In addition to the traditional life insurance benefits for your beneficiaries, the policy is also an emergency health fund for the owner in case of a chronic or critical health event. Even though most people are still unaware of the accelerated benefits option, more and more of the policies include them, FOR NO EXTRA PREMIUM.

    Am I borrowing the cash value from my policy? NO. The advance is against the face amount, not the cash value. No loan or cost is involved in drawing against the face amount of the policy. In fact, this benefit is available on term policies which never have cash value.

    How Do Accelerated Benefits Work?

    In the case of someone who suffers a stroke, for example, the living benefit option allows the policyowner to make a claim which ultimately reduces the face amount of the policy. Perhaps the policyowner wants that $250,000 to help manage the stroke recovery process. The approved amount will reduce the face amount of the policy and future premiums will be reduced. Other illnesses, such as MS and Parkinson’s, are also covered even though they are chronic illnesses.

    Those of you who are familiar with our content, you know that we stress the importance of always working with an experienced life insurance professional. In the case of accelerated benefits, this is never more important. As insurance professionals, we spend a great deal of time learning about the products of different carriers and we know which product is best suited for each of our clients.

    Jumbo Life Insurance Tips

    Adding the Accelerated Benefits Option to Your Coverage.

    Once the best policy for you has been selected, the underwriting process can be done without medical exams or traditional underwriting. For people needing up to $5,000,000 of coverage, some companies no longer require traditional underwriting, meaning that no medical exam or doctor visit is necessary. In one online session, a policy can be applied for and issued. By applying to the right company or companies, the living benefits option will be automatically included in the coverage. It is worth noting that not all living benefits are the same. Some policies cover critical, chronic and terminal health issues – ALL 3 AT NO ADDITIONAL COST. There is no downside for having this extra layer of protection.

    If you need to make a claim for accelerated benefits, we recommend contacting our office and we will help with the claim process. Or, you can contact the insurance company directly, as this can be a very private matter. Once the claim is approved, there is a permanent adjustment to the face amount and the ongoing premium is lowered. Living benefits are considered not to be taxable but you will want to verify with your CPA, since this is not tax advice.

    To get a quote or start a dialogue, complete the contact form on this page or any page on our site and we’ll contact you immediately. Or, you can contact Ted Bernstein at 561-771-4647, or by email.

    To hear testimonials: https://vimeopro.com/aigmarketing/main/video/303384330 / https://vimeopro.com/aigmarketing/main/video/142685717

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  • Is The Estate Tax Going Up?

    Is The Estate Tax Going Up?

    https://ted-bernstein-insurance.blogspot.com/2019/01/estate-tax-and-life-insurance.html

    Visit my blog for insight and commentary about changes that may affect your planning decisions. The day after this post, Senator Sanders released his proposed bill to increase the federal estate tax.

    The Sanders proposal calls for your estate to pay a 70% tax on assets exceeding $3M per person. For a married couple, assets over $6M – $7M will be taxed. Our recommendation is to plan as if the tax is 50% over $6M of assets.

    Although you may have recently been told that the 40% estate tax would not increase and the tax free credit would never drop from $11,000,000, per person, lawmakers are at it again. To plan properly, it is helpful to use levels that reasonably represent both taxes over the past 50 years. This will provide sufficient liquidity at death to help pay the tax. Otherwise, your estate will shrink by as much as the net tax amount.

    For example, if we assume a $12,000,000 estate and a 50% estate tax for assets over $6,000,000 per couple, the tax calculation would be $6M X 50% = $3,000,000. To pass the full $12,000,000 to your heirs without any dilution, it might be wise to own $3,000,000 of permanent life insurance. The cost is minimal compared to the tax savings.

    If it turns out there is no tax at the time of death, the life insurance always proves to be welcome liquidity for your heirs. This liquidity is an immediate infusion of tax free money with benefits on many levels. The leverage of permanent life insurance for this purpose is undeniable.

    Please contact Ted Bernstein if you are concerned about the estate tax increasing. Let’s discuss your options and the planning strategies to mitigate the hit to your estate.

  • Why Do Some People Own Permanent Life Insurance?

    Why Do Some People Own Permanent Life Insurance?

    Permanent life insurance offers the best value possible. In the world of life insurance, the lowest net cost means the best value. People who can afford higher premiums in the early years demand the best value and they will be infinitely better off, in terms of the net cost, with a permanent form of life insurance.

    Term life insurance has low entry premiums but it is only temporary insurance and it is priced accordingly.

    Because it has low entry premiums, term insurance is easy to sell. The Term-ites (term only salespeople) attempt to commoditize this product so it can be easily sold online without a professional’s help. They can be somewhat cultish about why they believe term is better, all the time, for everyone. Some life insurance companies have carved out a niche as term only carriers because term insurance certainly has its place in the market. It is often the right choice for buy-sell agreement funding, short term loans and young families with limited financial resources.

    Permanent life insurance is often referred to as whole life insurance and it offers much better value for life insurance buyers who want lifetime coverage and can afford higher premiums in the early years. Comparing the net cost of permanent life insurance to to the net cost of term insurance is the right way to measure its superior value. Using the simple definition of net cost to be the total premiums paid minus total cash value, the goal of switching from term insurance to permanent insurance is an important step to take in optimal life insurance planning.

    What is the difference between term insurance and permanent life insurance?

    Permanent life insurance is better value for anyone considering coverage for life. Term insurance is the ideal name for temporary insurance. Term premiums increase when we are forced to renew. When the temporary insurance expires, people often find themselves without coverage when it is needed most.

    People buy permanent life insurance once its superior value is understood.

    “But Dave Ramsey and Suze Orman don’t like permanent life insurance”. Neither of them are insurance professionals and neither one counsels individuals. Their target audiences are young families unable to buy anything but term coverage and we applaud these families for doing so. Dave Ramsey and Suze Orman’s job is to sell ads and one way to do that is by making indefensible claims about popular products.

    When people move out of the “paycheck to paycheck” lifestyle, they become potential permanent life insurance buyers. Since more than ninety seven percent of ALL term policies do not pay a claim, then 97 percent of ALL term premium are wasted.  High Net Worth (HNW) consumers and high income earners need permanent life insurance for many different reasons:

    Income Replacement:  If your family  or business depends on your income, regardless of your age, life insurance guarantees no family disruption due to loss of income. 

    Immediate Liquidity – Wealth Transference:  High net worth and ultra-high net worth people own life insurance because they want GUARANTEED LIQUIDITY at death and they purchase permanent insurance because it’s guaranteed for life. 

    Some others are:

    • Asset values can fluctuate significantly. 
    • Children working in a family business. Life insurance is the great equalizer for those children who do not work in the business. Without liquidity in these cases, there is great risk to a smooth succession of the business.
    • Many clients own a life insurance policy for each of their grandchildren. The insurance policy is straightforward and inexpensive.
    • Premium Financing. HNW people have the ability to finance life insurance. When it makes sense, it is a very effective tool to create tax free wealth.

    High Net Worth people own life insurance to reinforce their succession plans. In these cases, assets may be real estate, businesses and other non-liquid assets. Life insurance provides immediate, tax free liquidity. It gives the family and their advisors time to properly execute the succession plan. Too many times, without sufficient liquidity, anxiety creeps in and family members get nervous. This can lead to litigation, confusion and disruption.

    Please contact us at 561-771-4647 or email me at TB@LifeCyclePlanners.com about a free review.

    Visit us at www.facebook.com/lifecycleplanners

    https://en.wikipedia.org/wiki/Whole_life_insurance l https://en.wikipedia.org/wiki/Life_insurance#Permanent_life_insurance

    best life insurance. what is term insurance?
  • Permanent Life Insurance, Lower Net Cost Than Term.

    Permanent Life Insurance, Lower Net Cost Than Term.

    Term Insurance or Permanent Insurance?

    Watch out for these term insurance risks .

    Do you want permanent life insurance coverage for your family or business, regardless of how long you live? Then a permanent insurance policy is right for you.

    There are important differences between term life insurance and permanent life insurance such as whole life and universal life. These differences go way beyond price. The proper way to compare life insurance is to compare the net cost of different options. The people pushing term insurance use a marketing gimmick known as “buy term and invest the difference”. The problem is:

    Nobody invests the difference!

    If you want a policy that will protect your family for life, a permanent policy is the only option. If you want a better net cost, again you want to be looking at permanent coverage. The net cost is much lower than term insurance.

    The Risks of Term, Look at the Math: A male 35 will pay $950 annually for $1,000,000 of term (for a female, a little less). The 10-year net cost of this policy is a LOSS OF $9500. Over 30 years, the policy will have a net loss of $28,500. The term policy will lapse at age 65 with no value. If this person is healthy, he has 20 more years to live, using today’s projections. If the person is unhealthy, he will be unable to get life insurance or it will be un-affordable. Millions of people over 60 today cannot afford what is available to them.

    The Advantages of Permanent Life Insurance: On the other hand, the same 35 year old can buy a permanent policy for $9525. Yes, the premium is significantly more than an equivalent term policy and this automatically rules out all the people who currently do not have the cash flow to buy a permanent policy. The $9525 premium is guaranteed to stop at age 65. The 10-year net cost of this policy is projected to be a GAIN OF $2721. The 20-year net cost is a GAIN of $97,816 and the 30 year GAIN is $343,059.

    Over 30 years, the net cost for term is a negative $28,500. The projected gain, using the current dividend scale, is a stunning $343,059. If you would you like to see a simple presentation customized for you, please complete this form and we will be in touch or feel free to call us at 561-771-4647.

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    A permanent policy will remain inforce as long as you need it to without any new medical information. The equity in the policy can be tapped at anytime and today, many permanent policies offer Accelerated Benefits for health emergencies.

    Why doesn’t every life insurance buyer own a permanent policy?

    The number one reason young people select term insurance is affordability. Many young life insurance buyers do not currently have the necessary cash flow to purchase permanent life insurance, and that forces them to purchase term. In too many cases, the term policy that was selected only for its lower cost is not replaced with a better, more appropriate permanent policy, when it is affordable. The right insurance professional should be stressing the importance of replacing the term policy as soon as possible. Term insurance is the right product only if your need for coverage is temporary. Paying premiums into a term policy is throwing away money 97% of the time because 97% of all term policies lapse before paying a claim.

    Most young people underestimate their desire to have life insurance later in life. People over 50 want insurance for life to protect their spouse, children or grandchildren.

    If you have not looked at the net cost advantages of permanent life insurance recently, you might be surprised at its low premiums and low net cost. The entire process, from quotes to underwriting, can be done online and, in many cases, there is no medical exam at all.

    Why Permanent Life Insurance?

    • The net cost of permanent life insurance is superior to term.
    • Does not expire, is there when you need it most, one policy for life.
      • Consult with an experienced insurance professional to get a customized policy.
        • DO YOU WANT YOUR HEIRS TO RECEIVE LIFE INSURANCE PROCEEDS, GUARANTEED FOR LIFE? 
          • Secondary market value. A permanent policy can be sold for cash if you do not need or want the policy after age 70. Typically, you cannot sell a term policy in the secondary market if it can’t be converted.

    The following video speaks to the virtues of permanent life insurance.

    You can visit us at www.facebook.com/lifecycleplanners

    https://en.wikipedia.org/wiki/Whole_life_insurance l https://en.wikipedia.org/wiki/Life_insurance#Permanent_life_insurance

  • A Whole New Look At Life Insurance Advantages.

    A Whole New Look At Life Insurance Advantages.

    https://money.usnews.com/money/personal-finance/family-finance/articles/2017-07-27/3-ways-to-use-life-insurance-while-youre-still-alive?sf74224675=1

    It used to be that life insurance only provided benefits to your beneficiaries. Like everything else, innovation has made life insurance far more valuable than ever before.

    Now you can tap the face amount of your policy if you have a health crisis. Think of it as an unfunded savings account. You could have a one million dollar policy with no value in it. At possibly the worst time in your life, you have guaranteed access to a portion of the million (up to 90%).

    Another innovation allows you to fund the policy and never lose principal when the market is down. No risk, only potential upside.

    Not impressed yet? If you reach the point where you don’t want or need the policy, you can sell it for a profit like any other asset you own.

    Please contact me at 561-869-4500 or email me about a complementary consultation including guaranteed income ideas and a review of your existing coverage. You can visit us on Facebook.

  • “Not My Family!” Strategies To Avoid Wealth Destruction

    “Not My Family!” Strategies To Avoid Wealth Destruction

    Wealth destruction at inheritance time is showing no signs of slowing down. More and more family members are litigating with one another including attorneys, CPAs, wealth managers, family businesses and other related parties. Why is behind this unfortunate trend?

    Too often, all the planning attention is placed on the family’s financial and real estate assets. There is nothing wrong with this but when there were dysfunctional family dynamics before inheritance, it is likely there will be dysfunctional family dynamics upon death. Neglected during the planning process, this dysfunction can lead to unintended consequences for family and business relationships. Most people passing on wealth do so with an expectation that their generosity will be received in the spirit it was intended. Without a proper amount of focus on family dynamics, succession inheritance can cause further damage to family relationships.

    Avoiding Wealth Destruction

    “If your wealth transfer plan is not done carefully, your wealth will be transferred… just not where you intended. It will end up being transferred, that’s for sure. It will be paid out as legal fees to law firms and other professional firms. In no time, millions of dollars can be wiped out in fees and settlements.

    AVOID WEALTH DESTRUCTION – CLICK HERE

    Contact me at 561-869-4500 or email me at TB@LifeCyclePlanners.com for a complementary consultation. Or, visit us at Facebook

    ted bernstein boca raton florida 
  • Catastrophe Insurance For Critical Health Problems says Ted Bernstein Boca Raton

    Catastrophe Insurance For Critical Health Problems says Ted Bernstein Boca Raton

    Living Benefits Adds Immediate Protection For Critical & Chronic Health Problems says Ted Bernstein, at no extra cost! Does Your Current Policy Allow You to Take an Advance Against the Face Amount at No Cost? Learn How You Can Get Money From Your Life Insurance Policy. Living Benefits Life Insurance  by Ted Bernstein Boca Raton 

    Life Insurance is benefiting from innovations in medicine, prevention and intervention. These innovations lead to lower premiums. Policies from only 5 years ago are obsolete in terms of price and features. For most people, being older does not matter; rates are dropping at a faster pace than we are aging and the coverage is getting better too. Catastrophe Insurance For Critical Health Problems by Ted Bernstein Boca Raton 

    Call us today at 561-869-4500 to upgrade your policy to one with living benefits, either for term or permanent policies.

    The following link answers the most basic questions about the value of adding living benefits to your coverage:Living Benefits Life Insurance  by Ted Bernstein Boca Raton 

    Living Benefits: LIVING BENEFITS OVERVIEW

    Our job is to guide you through the selection process to make sure you get a policy with all the living benefits (critical, chronic, terminal) and the lowest premiums. We offer policies that most other agents can not offer you. Because we have been selling living benefits coverage since 2013, we are market leaders for A+ carriers specializing in living benefits. Living Benefits Life Insurance  by Ted Bernstein Boca Raton 

    Want to learn more? Please contact me at 561-869-4500 or by email. I will clarify and answer any questions on a complementary basis.”

    Ted Bernstein Boca Raton Florida 

     

     

  • 10 Life Insurance Underwriting Tips To Lower Your Costs

    10 Life Insurance Underwriting Tips To Lower Your Costs

    Life Insurance Underwriting – Demystifying The Black Box of Underwriting

    Sex, Drugs and Genetics

    One of the most effective ways of reducing your cost of life insurance is by improving the rate class or making sure to get the best class possible when buying new coverage. Once you decide to purchase a life insurance policy, the process of underwriting begins. Life insurance underwriting is the process allowing an insurance company to determine the appropriate rate class for your policy. It is important because the rate class determines the premium. There are many different rate classifications, usually starting at preferred. Most companies use a system with 16 extra classes – the highest rating being a Table 16.

    A system of credits and debits.

    Overweight by 20 pounds? On high blood pressure medication? Smoke an occasional cigar or occasionally use marijuana?

    Most people feel certain that any one of these will cause their life insurance premiums to be higher. In most cases, not one of them will increase the rate or knock you out of standard rates.

    You should expect to pay the lowest possible premiums and receive the best rate class each company offers, based on your specific information.  It is the responsibility of your agent to get you the best rate by giving the underwriters all the information in the best light possible. Underwriters convert positive information into credits and negative information into debits. More information is better. Still, too many people are not paying the lowest possible premiums.

    The difference between one or two rate classes can lower premiums by 20% or more, annually.

    Life insurance underwriting is a blend of art, skill and experience. The key to getting the lowest rates possible is full disclosure on your part. The improvements in medical sciences are leading to lower premiums.  These improvements lead to more people reaching life expectancy, resulting in decreasing premiums. In other words, the rates you are paying on policies issued several years ago are likely MORE than new policies issued today, even though you are older. If you are in similar or better health, you should be able to reduce your cost of life insurance. 

    The following issues require good life insurance underwriting management. A good underwriter will consider many factors to determine your rate class. The more information you and the agent provide to the carrier, the better your chances will be in creating maximum credits:

    • Extra weight. Most people carrying extra weight miscalculate by a lot how their premiums will be affected.  Typically, unless the extra weight puts you in the obese class or is causing other medical problems, added pounds do not automatically warrant any rate increase. 

    • Cardiovascular issues.  Many life insurance companies excel at underwriting these cases.  If there is good follow up and control, many insurance companies will consider standard rates after a few years.

    •  If you have had cancer in the past, you have a reasonable chance of getting a policy with standard or preferred rates, depending on the history and your current health.  Do not assume the worst; this is a classic mistake made by people and their advisors, including their physicians. I have many clients with cancer history who now have standard rates.

    • People with Type 1 diabetes typically have impaired life expectancy across the board, so your rates will depend on how well controlled your condition is and what you need to control it. If well controlled, Type 2 should lead to a smaller spike in rates. Diabetes is complicated and requires excellent underwriting.

    • Mood Stabilizing Drugs, Depression, Psychotherapy. If you’re taking medication for an ongoing condition  such as anxiety or depression (meaning it’s more than just a temporary state due to, say, a loved one’s death), you will probably see higher rates, but typically not what most people expect. The insurance industry needs to review these issues regularly as the medications are better and untreated anxiety and depression is far worse.

    • Family history.  If immediate family members have had serious or hereditary conditions, that may prevent you from getting preferred rates.  The biggest culprits here are cardiovascular disease (especially if a parent died from it before 60), cancer and diabetes.

    • Cholesterol & High Blood Pressure. Controlled high cholesterol and blood pressure, by themselves, typically do not add extra cost or deny you preferred rates.  With these conditions, it is all about control and stability.

    • Nicotine use. The use of nicotine comes in many delivery systems and life insurance companies are not consistent about this topic.  Using the Installment Payout Option can help smokers reduce their premiums by as much as 40% per year.

    • Driving History. If you have more than two moving violations in the last three years, you likely won’t be able to get the best life insurance rates. Time is your friend here, even for the most serious offenses.

    • Substance abuse. It is impossible to generalize with substance abuse history.  However, with full disclosure and a strong record of non usage, life insurance can be obtained at standard rates. 

    • Lifestyle/Career Issues. Any hazardous, regular activities such as rock climbing, motorized racing, skydiving, ultralight flying, hang gliding, and scuba diving could increase life insurance premiums.  

    While some companies increase rates for firefighters and police officers, many do not.

    Full disclosure and working with an experienced agent is crucial.  Knowing which companies excel in the each area and then not being afraid to challenge underwriters are some of the advantages you will get from an experienced professional.

    Want to learn more? Please contact me at 561-869-4500 or by email. I will clarify and answer any questions on a complementary basis.”

    Ted Bernstein Boca Raton Florida