April 25, 2017

People with Diabetes Need Life Insurance

Because I have life insurance and have not needed to purchase more, I do not know a lot about life insurance. I do know that many of us with type 2 diabetes and even many with type 1 diabetes have a very difficult time obtaining life insurance. A good person, Matt L. Schmidt has given me information about life insurance.

While I firmly believe in term life; however, Matt has presented me information that makes me doubt my wisdom. In addition, I had purchased a Non-guaranteed Universal Life policy in the late 1980's that I became very unhappy with and thought to cancel, but then I talked with another agent for the same company and this agent was able to convert the policy to another type of policy.

Matt provided me some information on Guaranteed Universal Life Insurance which I find interesting. So I will quote from the information provided, as I could easily make a mess of the information. “Guaranteed Universal Life is often called “No Lapse” or “Secondary Guarantee Universal Life” in the insurance industry.

Let’s look at the Pros and Cons of this life insurance product:
  1. Premiums can be level for lifetime. You can select the age they want the death benefit guaranteed to, whether it is age 90, 95, 100, 105, 115 or 121….
  2. The length of premium payments can be structured according to your preferences.
  3. Interest rate volatility does not affect premium payments.
  4. This product is inexpensive as a permanent life insurance product compared to other products, as the premium is calculated to maintain a level premium payment until death.
  5. Comparisons of this product among insurance carriers are relatively easy as there are not many components to the plan.

  1. This product may not have any cash value, unlike alternative permanent life insurance products.
  2. Although premiums may be lower than whole life insurance or other permanent insurance products, they will generally be higher than term insurance.
  3. The greatest con of guaranteed universal life is that the timeliness of premium payments is critical to maintain the guaranteed level premium. Other policies that contain cash value can provide a source within the policy to cover the required premium to maintain the death benefit, however, a missed or late premium payment can jeopardize the guaranteed premium feature resulting in a policy without a guaranteed premium. An individual has to maintain timely payments, or the guarantees of the policy could be altered. Unquote

If you are like myself, age 60 or older, you’ve had term life insurance in the past, and it has since expired, or your term policy is getting ready to expire. If this is the situation you are in, you’ve probably received a notice that your rates are about to skyrocket. Your next policy should be your last policy, as it becomes increasingly difficult to re-qualify as you age and your health is not guaranteed to remain insurable

Despite the implication of its name, guaranteed universal life insurance (GUL) is not whole life insurance. But, it is designed to last your entire life. It does not build cash value, allowing you to keep your monthly payments low, and does not carry the expensive management fees of whole life. It is also much better than regular universal life in which the premium continues to rise and can become very expensive.

Term life insurance is the ideal solution for those in good health to secure coverage into their 80s. But, if you are in your late 60s or early 70s and still pondering whether or not to buy a term life policy or another term life policy, you are approaching a cutoff where term life will no longer be viable (or even accessible, for that matter).

Here’s why I'm suggesting a guaranteed universal life over a non-guaranteed universal life:
  • Your cost of insurance will not change, even as you get older or if your health changes.
  • Your coverage isn’t tied to an investment. You pay for the life insurance protection only, just like term life insurance.
  • You aren’t pouring extra money into your policy. Trust the financial experts on this–you’re better off putting your money into a savings, or perhaps paying down your mortgage.
  • You will pay less up front. Guaranteed universal life insurance is a fraction of the cost of non-guaranteed universal life.
  • You don’t run the risk of losing coverage from unfavorable investments or changes in the market.

I don't sell insurance, but if you are looking for life insurance, I suggest reading or looking at this http://www.diabeteslifesolutions.com .

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