Best life insurance agent Archives - Spencer Insurance Agency, Inc

Factors That Impact Life Insurance

Life insurance is a simple concept to understand. You pay the premium; your loved ones get the benefit when you die. Like all types of insurance, life insurance premiums are calculated based on the risk that you will die prematurely. This is why young people pay less than someone in their 30s or 40s. The risk is small and their premium reflects that. But besides age, what else affects your premiums? That question is bit more complicated to answer.

At the most basic level, there are two types of risk factors that will determine your premium (Note: this is for term life insurance rates only). The two are “personal risk factors” and “size, term, & type of policy.” Personal risk factors tend to be things like age and gender. The other is self-explanatory – it depends on the size and term of the policy.

Let’s focus on personal risk factors. Personal risk factors usually break down into nine categories, all of which can affect the price you pay for insurance. Those nine factors are age, gender, smoker/non-smoker, personal health conditions, personal health history, family health history, occupation, hobbies & travel, and lifestyle. Some of these may affect you, most of them may not. Some states don’t use gender to determine rates, some do. It’s important to know which ones affect you before worrying about whether or not they will. Let’s break these down in groups of three.

First three up are age, gender, and smoker/non-smoker. The younger you are, the longer your potential life will be. The biggest difference between a 20-year-old and a 50-year-old is that one of those people is going make it another 40 years and it’s probably going to be the former. This is the reason that people urge young people to buy life insurance plans: you will save tons of money in the long run. The second factor, gender, plays a significant role in premium calculations and, in many cases, works in tandem with age. Women tend to live longer than men. That’s a fact. This matters because so long as you are alive, you are paying premiums. More premiums are a good thing for the insurance company. Women live longer and can pay premiums for a longer period of time. This means they get charged less. This makes a difference when you recognize that most men live to around 75, while most women live to around 80. That means a 25-year-old man and a 30-year-old woman will have about 50 years in them before they die. That’s a big deal when it comes to insurance rates. Finally, smoking status. This is, by far, one of the biggest risk factors and the one that is most in your control. A smoker will pay two to three times more than a non-smoker when it comes to premiums.  Also, quitting does not automatically put you into the non-smoker category. You have to be tobacco-free for a couple of years to be considered a lower risk factor.

The next group is health conditions, personal health history, and family health history. Health conditions refer to current health problems you are dealing with. Examples include high cholesterol, diabetes, obesity, or hypertension. Getting yourself into good health can help you avoid the costs that are incurred. Personal health history refers to problems you have had, but no longer deal with. This could be cancer, stroke, heart disease, or depression. These conditions tend to resurface, so the chance that they may return puts you at greater risk of dying sooner. The last one is family history. If one of your parents died of a health condition before the age of 60, you can expect to see your rate increase because of the chance that you may also develop the same condition.

The final group is occupation, hobbies & travel, and lifestyle. Occupation usually will not be a concern for most people. However, the occupational hazard difference between a logger and a blogger is significant. If you work a particularly dangerous job, your premiums will be higher. Up next is hobbies & travel. In most case, your hobbies will not affect you. If your hobbies include things that tend to result in accidental death, then you’re asking for someone to see you as a risk. The same goes for travel. Traveling to Italy to indulge in fine food and drink is a lot different than going to the Middle East to be a translator for the Army.

When it comes to the size and term of the policy, the larger or longer it is, the more you will pay. That’s pretty simple. The longer the policy is around, the greater chance the company will have to pay you out. That could cost them a lot of money depending on how long the policy lasts. In any case, all these factors should be taken into consideration when shopping for a policy. If you’re looking for an affordable policy from someone who can guide you through the process, look no further than Spencer Insurance Agency for all your life insurance needs.  You can give us a call at (215) 885-2200 or visit us online at https://spencerinsurance.com/ and we will be happy to assist you. Go here to get an immediate term insurance quote.

 

Getting Your Life in Order

Many people believe that estate planning is only for the wealthy. Wealthy people have a lot of money, lots of land, and lots to divvy up to their heirs, so it makes sense that they need to plan out how and where their things will end up. However, everyone with any net worth needs to do basic estate planning to make sure that their possessions, no matter how large or small, are distributed according to their wishes. If you need a resolution for 2020, make it working on your estate to-do list.

The first (and arguably most important) document to put in order is your will. Wills ensure that your possessions are distributed in accordance with your wishes; therefore, the wording is of utmost importance. When looking over the wording of your will, be sure that all items are consistent with named beneficiaries. For example, if you’ve named your child as a beneficiary on a retirement account, you don’t want that same account on the will named to someone other than your child. This could result in a bitter will contest that will result in a lengthy legal battle.

The second document to draft is a durable power of attorney (POA). A POA is someone who acts on your behalf if you are incapable of doing so. A common example is someone who handles the distribution of assets upon your death. In many cases, spouses set up reciprocal POA’s, but POA can be given to anyone the person chooses.

When it comes to healthcare there is power of attorney for healthcare decisions as well. You can assign someone you trust to make healthcare decisions for you in case you’re incapacitated.

One other document to get started is a life insurance policy. The life insurance policy should be the first item on your to-do list and the one you need to start as soon as possible. Life insurance premiums only go up as you get older, so the sooner you start, the more money you can save. Life insurance policies are bought in an amount and when you die, the money on the policy will pass to your beneficiaries. There are multiple types of policies and different amounts to buy when it comes to life insurance. Use a professional agent to help you decide which amount and type makes sense for you.

There are many other financial documents to go over when estate planning, but hopefully this list gives you a good base to start from. When it comes to estate planning you may also need long-term care insurance, annuities, and many other items. When it comes to life insurance, Spencer Insurance Agency is just the place to get expert advice regarding life insurance policies, amount sot purchase, and what makes sense for you.

Be sure to give us a call at 215-885-2200 if you have any questions about life insurance. Your protection and peace of mind is our only business!

The words I hate to hear. . .

I didn’t know you sold life insurance. Those are words I hate to hear.

Okay, now you know! Spencer Insurance sells life, disability and long term care insurance too.  My specialty at the agency is in these coverages.  I started my insurance career with John Hancock in the late 80s before joining my Dad’s agency.

I have been selling life insurance for over 30 years.  How many life insurance agents can say that? Most of the people I meet do not even know if their life insurance agent is still in business.  They have not heard from the agent since the policy was purchased. As a father, grandfather and small business owner I understand the needs of parents and small business owners to protect their families and businesses in the event of a death or disability.

Another issue I run into often is that clients rely too much on group life and disability policies. These policies are very helpful and important, however you need us to review the group policies to make sure they provide the coverage you think they provide.  Check out my article “Is my employer paid Long Term Disability Plan enough? When is 60% only 30%.”

You can also check out our life insurance “Frequently Asked Questions.”

Contact us for a review so we can discuss:

  • Do you have the right amount of life and disability insurance? You may have too much or too little.
  • How does a business owner protect their small business from the death of an owner or key employee?
  • What is your small business worth? We have a program that will give you the answer!
  • How much will my spouse receive when my business is sold? (Probably less than 50% of its value if you do no planning.)
  • Can my children and spouse stay in our home if I die? Can the children still go to college?
  • How to use life insurance proceeds while living to pay for long term care expenses.

If you don’t have life insurance what are you waiting for?  Contact us now!  If you do have life insurance call us to review the policy and make sure it is still providing the coverage you need and that the coverage is not running out soon. (We see a lot of people who purchased a 20 year term years ago and don’t realize the premium guarantee is running out.

Whether you just need a $15,000 final expense policy or $1,000,000 in term we can help.

Rely on my 30 years of experience.  Contact us today so you can check it off your “to do” list.

            

The Devil is in the details Part 2

Life insurance can be purchased online.  Is that a good idea?

  • What happens when your 20 year term rate guarantee is up and you still need coverage?
  • What happens if you become disabled and can’t afford the life insurance premium?
  • How do you change beneficiaries?
  • Did you know naming minor children as contingent beneficiaries is a bad idea?
  • What should you do with your life insurance if you get separated or divorced?

Yes, the devil is in the details.  Contact Spencer Insurance Agency  for a life insurance quote or review.  Charlie and Steve has over 30 years of experience in life insurance.  Charlie has earned his CLU (Certified Life Underwriter) designation.

Updated Fall Section of our Website now available

Updated Fall Section of our Website now available 

As summer comes to an end and the season of fall begins I wanted to share with you some Fall Safety Tips.  I updated this section with some valuable tips on what you can do today to prevent claims as winter approaches.

You will find home safety tips, car safety tips and teen driver safety tips.  And, since September was Life Insurance Awareness month I included some life insurance tips.

As always contact us if you would like more information or have any questions.

Let me know what you think of this section.

Enjoy the Fall!

 

 

 

September is Life Insurance Awareness month!

We live for life’s wondrous moments whether it’s a baby’s first step, graduation, or retirement.  Life Insurance helps to ensure the life you’ve built for your loved ones won’t come to a halt if something were to happen to you.  It’s never too early or too late to consider all the things life insurance can do for your family.

Spencer Insurance Agency has many resources to help educate you on solutions to your life insurance needs.  Our agency wants to make sure you coordinate your life insurance planning with a financial planner, estate attorney, and us.

Part of our review of your life insurance needs is to make sure you have a will and that the will has been updated recently.  We want to make sure the people you want to receive your life insurance proceeds when you die actually get them.  I wrote a report on this subject called “What you need to know about Life Insurance. . . How to make sure the People You Intended to get your Life Insurance Benefits Actually Get the Benefits.

Many people ask “How Much Life Insurance do I need?  I will help have a discussion with you that includes four factors that will give you an answer to that question.

Another frequent question I hear is “Should I purchase supplemental Life Insurance offered by my employer?  There are pros and cons to purchasing your life insurance in a group plan.  Check out this article for the pros and cons.

Lastly, DO NOT PROCRASTINATE!  A friend of mine, Rachel, told me her story.  Read Rachel Story to see how waiting for the right time to buy life insurance can be devastating.  If you wait too long you may not be able to buy life insurance.

Call us today for a review of your life insurance needs.  Even if you have some life insurance call us at 215-885-2200 to make sure it is still performing the way it was set up to perform.

What is keeping you from getting Life Insurance?

Facts from LIMRA:

  • Three in ten American households are uninsured and half say they need more insurance.
  • More than half of Gen X and Y households need more life insurance.
  • One-third of wives own no life insurance at all – despite the fact that 7 in 10 households are dual-income households and nearly 30 percent of wives earn more than their husbands.

 

Why should I review my life insurance policies?

  • You quit smoking.
  • You heath has improved.
  • You recently married, had a child, bought a house, divorced, downsized or are considering retirement.
  • You have a partner or a key employee in your business.
  • You have coverage through your employer

 

Are you relying on the life insurance that your employer provides?

Note: Open enrollment for most employers is happening soon.  Contact us now as it can take 6 to 8 weeks for your life insurance to be approved.  Compare and apply now before you need to commit to your employer’s plan for another year!

  • If you are having premiums deducted from your paycheck for life insurance provided by an employer give us a call to review the cost of that policy
    • You will find the rates change, usually every 5 years, and can become very expensive as you age.
    • Many times we can provide you the same coverage for less than you are spending now or provide more coverage for the same amount you are spending now.
    • Major problems with employer coverage
      • Price increases as you age
      • Not portable, meaning if you change jobs you may lose your life insurance.  What happens if your health has changed and  can’t get life insurance or purchasing life insurance on your own is now very expensive?

 

Solution: Call us for a review of your life insurance needs. Today’s economy has demonstrated how precarious a family’s finances can be.  Think how tough it will be for your family if they lose your income!  Don’t procrastinate; we all think we are invincible.  Go to our website and read Rachel’s story.  Her story which she was so kind to share with me will demonstrate why you can’t wait.  Check out our website for more information about Life Insurance.

Thank you for voting us #1 Again!!!

5 YEARS IN A ROW!

Thank you for voting Spencer Insurance Agency the “#1 Insurance Agency” and the “#1 Life Insurance Agent” in the 2012 Montgomery Media’s Reader’s Choice Awards.

This is the Fifth year in a row you have voted us the best.  Thank you for the trust you place in our agency.  Our goal is to provide you the coverage you need at a very competitive price.  At Spencer Insurance we know that price is important.  However,  the True Cost of Insurance includes the money you pay out of your pocket because of the coverage you don’t have.

Did you know we have a referral program called the Spencer Referral Reward$ Program?

We reward our clients for their referrals.  Check out how you can win $100 in cash or a 42 “TV.

Click Here  to learn more about the Spencer Referral Reward$ Program.

Thanks again,