term insurance 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.

 

Open Enrollment is coming soon. What you need to know . . .

Q: Should I purchase the supplemental Life Insurance offered by my employer?

A: Many employers offer Group Life Insurance coverage. Some of this coverage is provided free as an employee benefit. Many times you can purchase supplemental coverage and the cost will be deducted from your paycheck.

Should I buy this additional coverage? There are pros and cons.

Here are the pros:

  • Very convenient as the premium is deducted from your paycheck
  • Few medical questions are asked so it is easier to apply
  • No blood tests or other lab work is required
  • Many times the rates are blended with non-smoker rates making them lower for smokers.
  • Many times the rates are unisex which will make male rates less expensive

Here are the cons:

  • Group life rates are banded based on rates and typically increase every 5 years.
  • Group life rates are blended so if you are a healthy non-smoker you could get the same rate as a chain smoking unhealthy person.
  • The amount of life insurance you can purchase is limited and may not be sufficient for your needs.
  • May lose the coverage if you leave the employer
  • Rates can increase immediately if the employer chooses a new life insurance company.

LIfe Insurance and Disability Insurance. Get protected

What should I do?

Contact us today at 215-885-2200 to review your life insurance needs and the cost of your employer’s life insurance coverage before your next open enrollment. Most open enrollments happen in the fall so this is a great time to review that coverage.

Consider purchasing life insurance on your own for the following reasons.

  • You can lock into a rate for up to 30 years. The cost of your employer group coverage changes based on age bands every 5 years. Your coverage may look inexpensive now but what will you be paying in 10 years?
  • You won’t lose your life insurance coverage if you get laid off or change jobs.
  • If you are a healthy non-smoker you may find less expensive rates.
  • You will be able to purchase the amount you need.

Go to our website www.spencerinsurance.com and click on the Life Insurance Tab for more information and a free report “What you need to know about Life Insurance and How to Make sure the People You Intended to get your Life Insurance Benefits Actually Get the Benefits!”

Check it out before it is too late!

 

Rachel’s Story

life-single-mom

 

My name is Rachel and I would really love to share my story with you in hopes that you will see the importance of Life Insurance, even at a time when you still think you are invincible.

I was 28 years old and got married in September of 1999. While on our honeymoon n St. Thomas my wisdom teeth became abscessed and I had just switched jobs so I was in between health insurance. You know I was 28, who cares about the 3 month waiting period. I didn’t need COBRA. So I bought some time with over the counter aids and then in October I woke up and my neck felt stiff, so I rubbed it and found a lump on the right side just below the ear. I went to my family doctor who said that it was a swollen lymph node to fight the inflamed wisdom teeth, but he sent me for a CAT scan just to be safe.

The CAT scan came back negative and as soon as January hit I had my teeth pulled and my doctor said it would take about 30 days for the lymph node to go back to normal. After 30 days it was still swollen. My doctor sent me to an Ears, nose and throat specialist who treated me for two months on antibiotics and when it had still not gone away and another lump showed up on the left side, he decided it was time to remove the “dead lymph node.”

So into surgery I went. The next day the doctor called and told me I had Stage 3 cancer. Long and short, I survived, but in the mean time my husband and I had bought a house and then after I got better decided to start a family. After 3 years we decided to adopt and that is when I found out at the age of 33 that I was going to have difficulty getting life insurance because of my past medical condition.

I filled out the paper work and told the truth when the questions about cancer came up and thank God the paper work I presented when we applied was all that was needed to proceed with the adoption because my daughter was born the next month. About a month after she was born I was denied life insurance after the company had received my medical history from my primary doctor. Thankfully for us, all the papers were filed with the courts so it did not affect our adoption of my daughter, Faith.

I tell you this story as detailed as I felt necessary because you can see that the time in between getting married and the time of my diagnoses, I could have applied and gotten life insurance. Then I would have had the life insurance I needed for an actual event, other than death, the adoption of my daughter. The adoption required that I have life insurance to be a Mother. I too was young and invincible, but now I am a 38 year old cancer survivor, waiting out the time limit of 10 years so I can get life insurance at an affordable rate, and at the amount that would actually benefit my family and not be turned down because I was High Risk.

So please, don’t view Life Insurance as morbid conversation at a young age. Realize that you have no idea what life has in store for you. Hopefully you will survive all that is thrown at you and come out with such a great reward as I did, my Life and my Daughter (my Angel). But for whatever the outcome may be: BE PREPARED!!!!!!

Thank you for listening to my story, God Bless you in your new life, and may you have nothing but happiness and health, and a piece of paper in your filing cabinet to take care of all you acquire and create!

Thank you Rachel for sharing your story with me.  For more information about Life insurance go to our website!  Call us at 215-885-2200 for a review of your life insurance needs.  Don’t wait until it is too late and you do not qualify for life insurance or cannot get life insurance.  Spread the word to your friends.

I invite you to tell me your story!  Share it here, thank you.

Don’t forget to protect your family while you enjoy your summer activities!

life-family

One of our responsibilities at Spencer Insurance Agency is to make sure you have the proper protection so you can go out and enjoy what you like to do.

For example, many of our clients like to waterski, snorkel, scuba dive, Jet Ski, rock climb and ride motorcycles and ATV. You work hard so you should go out and enjoy yourself.

Some of these activities have special risks associated with them.  Make sure you protect your families so you can enjoy these activities.  These activities present a higher risk when purchasing life and disability insurance.  Let us help you make sure you are properly protected with life and disability insurance.

You should be thinking about reviewing your life insurance when you have a life changing event such as buying a home, getting married, having a baby, separating, downsizing, and retiring.  Our website has a section that gives you some tips on what you need to do when you have these life changing events.  Check it out!

Unfortunately, many of us wait until it is too late to purchase life and disability insurance.  A friend, Rachel was kind enough to share her story with us.  Check out Rachel’s Story.

Call us today at 215-885-2200 to review your life and disability insurance.  It could be critical to your family’s financial future.

 

Tax Deadline – Did you get a “Wake up Call?”

 

Tax return

Now that the tax deadline is here, all of us have either paid or extended our tax deadline.  Even if we extended the deadline we still paid what we estimated will be our tax.  So, I ask you, was doing your tax return a “Wake up Call?”

What do I mean by Wakeup call?  As you did your tax return you had an opportunity to review:

  • How much money you earned
  • How much money you spent
  • How much money you invested last year
  • How much money you have invested

So what does all this tell you?  Here are a couple questions to ask NOW:

  • What would happen to my family if I died and they did not have the income I earned this year?
  • What would happen to my family if I was disabled and could not work and I did not have my current income?
  • Am I on target to retire when I want to retire?
  • Would I bankrupt my retirement assets if I had long term care expenses?

So have I added to your stress?  I hope not.  A solution to financial stress is to take action:

  • Meet with a financial planner and discuss your retirement goals and evaluate where you are in reference to those goals
  • Meet with your insurance agent and review your life, disability, long term care, auto and home insurance
  • Meet with an attorney and draw up a will, power of attorney and medical directives
  • Review your budget to see where you can save money
  • Start tracking what you spend so you know where your money is going
  • Now that your accountant has some time to breathe, discuss your tax situation and see if any tax planning for this year would help you save on taxes

We are here to help you!  Take some action today.  Email us at info@spencerinsurance.com or call us at 215-885-2200 to get some answers to the questions above.  Taking some action now will help reduce your stress and put you back on the path to reach your goals.

Have you put off buying life insurance? Check out Rachel’s Story.

 

life-family

Life Insurance Awareness Month is coming to a close.

Before it does I wanted to share again with you a powerful story. If you have been procrastinating when it comes to the purchase of life insurance then you need to read “Rachel’s Story”.

This is not fiction, it is real!  I met Rachel through a networking group and she shared her story while we were discussing our businesses.  I asked her if she would put it in writing for me so I could share it.  I could never tell the story as well as her.  She shares the story so you won’t make the same mistake.

Please pass this story to someone you love who needs to purchase life insurance. With term life insurance rates being so low there is no excuse to not own life insurance.  Contact us now before you can’t buy it.  Remember, insurance is something you need to have before something happens!  Thank you Rachel for sharing your story.

Rachel’s Story:

My name is Rachel and I would really love to share my story with you in hopes that you will see the

importance of Life Insurance, even at a time when you still think you are invincible.

I was 28 years old and got married in September of 1999. While on our honeymoon n St. Thomas my

wisdom teeth became abscessed and I had just switched jobs so I was in between health insurance. You

know I was 28, who cares about the 3 month waiting period. I didn’t need COBRA. So I bought some

time with over the counter aids and then in October I woke up and my neck felt stiff, so I rubbed it and

found a lump on the right side just below the ear. I went to my family doctor who said that it was a

swollen lymph node to fight the inflamed wisdom teeth, but he sent me for a CAT scan just to be safe.

The CAT scan came back negative and as soon as January hit I had my teeth pulled and my doctor said it

would take about 30 days for the lymph node to go back to normal. After 30 days it was still swollen.

My doctor sent me to an Ears, nose and throat specialist who treated me for two months on antibiotics and

when it had still not gone away and another lump showed up on the left side, he decided it was time to

remove the “dead lymph node.”

So into surgery I went. The next day the doctor called and told me I had Stage 3 cancer. Long and short,

I survived, but in the mean time my husband and I had bought a house and then after I got better decided

to start a family. After 3 years we decided to adopt and that is when I found out at the age of 33 that I was

going to have difficulty getting life insurance because of my past medical condition.

I filled out the paper work and told the truth when the questions about cancer came up and thank God the

paper work I presented when we applied was all that was needed to proceed with the adoption because my

daughter was born the next month. About a month after she was born I was denied life insurance after the

company had received my medical history from my primary doctor. Thankfully for us, all the papers

were filed with the courts so it did not affect our adoption of my daughter, Faith.

I tell you this story as detailed as I felt necessary because you can see that the time in between getting

married and the time of my diagnoses, I could have applied and gotten life insurance. Then I would have

had the life insurance I needed for an actual event, other than death, the adoption of my daughter. The

adoption required that I have life insurance to be a Mother. I too was young and invincible, but now I am

a 38 year old cancer survivor, waiting out the time limit of 10 years so I can get life insurance at an

affordable rate, and at the amount that would actually benefit my family and not be turned down because I

was High Risk.

So please, don’t view Life Insurance as morbid conversation at a young age. Realize that you have no

idea what life has in store for you. Hopefully you will survive all that is thrown at you and come out with

such a great reward as I did, my Life and my Daughter (my Angel). But for whatever the outcome may

be:

BE PREPARED!!!!!!

Thank you for listening to my story, God Bless you in your new life, and may you have nothing but

happiness and health, and a piece of paper in your filing cabinet to take care of all you acquire and create!

Rachel

 

For more informaiton go to our website or call us at 215-885-2200.

The 7 Wonders of Life Insurance

life-family

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 and do for your family.

Life Insurance:

  1.  Buys Time – Loved ones can focus on their grief instead of worrying about how to pay for the funeral and other final expenses.
  2. Provides a fresh start – By helping to pay off credit card bills, outstanding loans and even the mortgage, life insurance starts your family members off with a clean slate.
  3. Generate Income – Surviving family members can continue to pay for life’s necessities for years to come
  4. Offers flexibility – Family members may take time off from work or transition to a more adaptable work schedule.
  5. Creates opportunities – Funds may be used to start a business or pay for schooling to train for a new career
  6. Funds for the Future – Loner-range goals, college education for the children or a comfortable retirement for a surviving spouse may be obtained with the insurance proceeds.
  7. Helps leave a legacy – Parents have the chance to leave future generations a legacy of long-term financial security.

Life insurance can be life changing.

Call us today at 215-885-2200 for a life review

Or check out our website

Share with us how life insurance has helped your family or someone you know. . .

Are you ready for Valentine’s Day?

As your preferred insurance agency, we take your protection very seriously. If we could we would shield you from all bad things that might happen to you and your family.  But since we are only mortals, we have to limit ourselves to just warning you about issues that could affect your happiness and safety.

That’s why I’m writing you today.  I just looked at the calendar and saw that Valentine’s Day is on the horizon.  Like birthdays, anniversaries and Christmas these are opportunities to show your loved one just how much they mean to you. But for those who unintentionally miss these major opportunities to express their  love and devotion, they can be dangerous times of the year.

We know you’re busy and that this day might slip up on you without adequate time to prepare, so be warned:

Valentine’s Day is coming soon! 

Plan now to make it the best Valentine’s Day ever for you and your loved one!

And if you buy or receive anything that needs insuring, call 215-885-2200. Don’t forget that ultimate Gift of Love – Life Insurance.  What better way is there to show your family that you love them.  (Warning: You better buy some chocolate too!)

Happy Valentines Day from your friends at Spencer Insurance Agency, Inc.

Ground Hog Day Predictions

groundhogOn Saturday, February 2, 2013 we will officially learn whether spring is near or to expect six more weeks of bad weather.
Come what may, as your preferred insurance agency we will be here to offer our protection.

Bad weather is one of the main reasons you need insurance since it can wreak havoc on everything you own.  Take the time now to make sure you are adequately covered for floods, hurricanes, earthquakes or tornadoes.

Bad weather is not the only thing that can wreak havoc on your family. The death or disability of one of the income producers of the family can devastate your family’s finances. The death of a parent can be emotionally draining for the family.  Don’t let the death of a parent be financially draining too.

Give us a call today at 215-885-2200 so we can review your protection and make any needed adjustments.

Your friends at Spencer Insurance Agency, Inc.

I am preparing for retirement and downsizing. How does that affect my insurance?

 

This is the time of year we start looking ahead and planning for the future.  We make resolutions and set goals.

There are many items you need to evaluate as your prepare for retirement.  You need to review your auto and homeowner’s insurance to make sure you are taking advantage of all discounts and carry the proper coverage.

You need to review your life insurance, will, and Long Term Care needs.  For more detailed information on Downsizing and Preparing for Retirement

There you will find our report on Downsizing/Preparing for Retirement.  Call us to arrange for a review of your insurance.