Individual Life Insurance | Root Financial

MetLife Life Insurance Gets Aggressive

Jeff Root — Thu, 19 Jan 2012 23:23:44 +0000

MetLife is a very well known name in the life insurance industry. I mean, who isn't familiar with their Snoopy advertisements?

If you compared MetLife to the rest of the life insurance industry, they will rarely compete based on rates. They are considerably more expensive in most situations...that is until recently!

MetLife hasn't slashed rates, but they've revamped their underwriting guidelines and we've been seeing more favorable life insurance offers which makes them a HUGE competitor now.

Keep in mind, you won't see MetLife offered from SelectQuote, Matrix Direct, AIG Direct, Zander Insurance, Accuquote or any of the other big call centers. This is because their agent compensation is VERY low compared to the rest of the industry. You have to seek out a truly independent agent to get access to MetLife.

Here are some examples where MetLife is knocking the ball out of the park:

Blood Pressure Treatment

Consumers age 55 or older are eligible for Preferred Best with medications and no readings over 140/85. Many companies will go Preferred, but Met is going Preferred Plus!

Diabetes

Consumers who have diabetes and have build or slightly elevated a1c readings may qualify for Med Edge test which is a table shave on their term life insurance products. Table A, B, or C can be moved to Standard on a case to case basis. Credits and overall health all play a part at the Med Edge Program. Huge score for diabetes underwriting!

Family History

Consumers age 65 or older family history is not considered.

Anxiety

If you're taking 1 medication for mild anxiety or depression, Preferred Best is available.

Epilepsy

We are seeing very aggressive offers up to Standard with controlled epilepsy.

Prostate Cancer

Preferred Plus through Select (Select is more realistic)Consumer has to be age 55 or older
Gleason score has to be 7 or below
Consumers ages 55-69- Surgery needs to be 10 years ago for Preferred Best
Consumers ages 70 or older- 5 years since surgery for Preferred Best
Current PSA non-detectable
No Recurrences

Most life insurance companies are keeping their stance on these health issues. It's refreshing to see a company like MetLife who for a while hasn't been a contender for a while, become aggressive with certain risks.

Rest assured that Root Financial is on top of the underwriting game. We receive underwriting updates from over 60 life insurance companies to make sure we are finding the company who will give you the lowest rate.

AIG Direct Review

Jeff Root — Fri, 13 Jan 2012 20:54:09 +0000

Before I get into my AIG Direct review, let me clarify that I'm independent life insurance agent who is very familiar with their call center operation.

AIG Direct seems to be everywhere on TV and is quickly becoming a household name. In this article, I'll cover:

1. Who they are.
2. Where they fall short.
3. Why you can do better.

Who is AIG Direct?
Lets start with who they are because that isn't obvious on any of their advertisements. AIG Direct is a marketing arm of Matrix Direct who is owned by American General whose parent company is AIG. Did I confuse you? It confuses everyone I speak with. In a nutshell, you are contacting American General for life insurance rates.

American General is a great life insurance company. They have a strong financial rating and are in SOME cases the best option. However, life insurance isn't one size fits all. Every life insurance company will look at you differently and the key in finding the best rate is finding a life insurance company that will look most favorably at your situation.

AIG Direct DOES NOT search the market for the best rate.

Where does AIG Direct fall short?

Selection of life insurance companies. AIG Direct doesn't take the time to find the best option on the market. American General IS their best option. You're better off finding an independent agency who isn't married to a specific company. We replace AIG Direct policies all the time because we can significantly reduce their premiums.
Incompetent for health impairments. Many of our clients come to us because they were declined by AIG Direct and American General. In most cases, we're able to find them affordable coverage. We're impaired risk specialists and will take the time to do the research and call our underwriters on your behalf BEFORE we proceed with an application. It's not the consumers fault when they get declined - your agent just used the wrong company for your risk.
AIG Direct is a high volume call center. Think of your AIG Direct "agent" as someone in a cubicle, reading from a script and under pressure to meet their sales quota. I visited their operation in San Diego years ago and met some of their call center agents. Trust me when I say you're merely a number to them. You won't ever hear from your agent again.

You can do better

An independent agency like Root Financial isn't married to any company. We represent over 60 life insurance carriers and often times replace AIG Direct policies with much less expensive options.

We choose to spend the time researching your best options and answering ALL your questions until you are comfortable applying for coverage. As opposed to AIG Direct's model of mass production and scripted sales.

Since we spend so much time up front, we only work with those serious about purchasing life insurance. If you are serious about protecting your family, please don't hesitate to contact us.

Universal Life with a No Lapse Guarantee – Everything you Need to Know!

Jeff Root — Mon, 12 Dec 2011 23:12:10 +0000

Universal Life Insurance Policies with a "No Lapse Guarantee" are being offered at rates well below the guarantees of the past. We believe they are priced too low right now and that rates will continue to rise.

"Rates will continue RISE"

We’ve had a ton of inquiries and questions regarding these policies, so here is everything you need to know.

First of all, Universal life with a No Lapse Guarantee is also referred to as:

“Guaranteed Universal Life”
“Term for Life”
“No Lapse Universal Life”
“Universal Life with a Secondary Guarantee”

What is a Universal Life Insurance with a no lapse guarantee?
Traditional universal life policies will lapse/expire when the cash account dwindles to the point that there are insufficient funds to cover the policy expenses and cost of insurance. With the “no-lapse” feature, the policies are guaranteed to stay in force for your entire life if the premium is paid regularly and on-time.

What makes no-lapse guarantee universal life different than other permanent policies?
No-lapse policies have little to no cash value compared to cash value rich whole life policies. They are built purely as guaranteed level premium and death benefit (if you’re interested in cash accumulation, this policy isn’t for you).

Life insurance companies issuing a “no-lapse” policy AVOID paying cash surrender values to policy holders who terminate their coverage so they use this extra source of profit to be able to lower the premiums. This is one of the main reasons why these policies are so inexpensive compared to other permanent products.

What are the risks of a universal life policy with a no lapse guarantee?
1. The risk of paying a premium late. The premium must be paid when due or else the no-lapse guarantee can be revoked. This would make the whole policy implode on itself.

2. Loss of upside potential as compared to competitive "non-guaranteed" permanent policies. If the market does well, in non-guaranteed policies you experience some gains. With no-lapse policies, everything is guaranteed no matter what the market does.

Who should buy a universal life insurance policy with a no-lapse guarantee?
Anyone who wants their life insurance premiums and death benefit guaranteed level for the rest of their lives.

Any tips on choosing a company?
YES. Use an independent life insurance agent. In recent cases, we’ve replaced no-lapse guarantee life insurance policies with new ones that were 20% less expensive than what they originally purchased. You want the best rate from an AM Best rated “A” or better rated company. We have access to all of them.

Last thoughts. If a universal life with a no lapse guarantee makes sense for you, I would purchase it sooner rather than later. Without getting too technical, just trust us when we say rates WILL continue to go up over the next months/years. They've already started to rise. These policies are priced way to low at this point in time.

What Does Bankruptcy Have To Do With Life Insurance?

Jeff Root — Sat, 03 Dec 2011 00:26:27 +0000

When we're gathering information to find you the best options, we’ll always ask the question – “within the last 10 years, have you filed for bankruptcy?” Many consumers who have had a bankruptcy respond: “What does BK have to do with life insurance?” Good question.

Logically thinking, it shouldn’t have any effect on an application. I mean, what does this have to do with your health? We don’t check your credit on a life insurance application, so what could a BK possibly do with life insurance?

I don’t have a good answer for this question so I called underwriters regarding why RECENT bankruptcies effect a life insurance application and their answers are all over the place:

Suicide risk is one effect. To me this seems a little backwards. Shouldn’t the suicide risk be BEFORE the bankruptcy? Anyway, this was brought up in a conversation with an underwriter.

Emotional disorders. Those who have bankruptcies sometimes develop emotional disorders, anxiety issues or need to begin medications within a few years of the bankruptcy.

I personally don’t think bankruptcy should effect the ability to purchase life insurance, but these are the best answers I can find.

If you’ve had a bankruptcy, here’s what you can expect:

Chapter 7 bankruptcy: you’ll have to wait for 1 year after the discharge to apply for life insurance.

Chapter 11, 12 or 13 bankruptcies: obtaining life insurance coverage is no problem as long as you’re making regular debt payments.

The key is using the right life insurance company if you’ve had a bankruptcy. Each carrier will look at your BK differently (some more favorable than others). An experienced and independent life insurance agent can help you find that carrier.

Give us a call today or fill out the for on the right and we'll go over your options.

Long Term Care Insurance Using A Life Insurance Policy

Jeff Root — Tue, 08 Nov 2011 06:42:00 +0000

If you recognize the need to purchase life insurance to protect your family, but you also feel it’s important to protect your independence and your assets while you’re alive - you should consider linking your life insurance with long term care benefits.

Standalone long term care policies are becoming increasingly unaffordable. Rates continue to rise and we’re seeing a trend of insurers discontinuing their standalone long term care plans.

HOWEVER, some life insurance companies have combined life insurance and long term care into one “linked” product. This makes having long term coverage VERY affordable.

Here are some of the benefits of using one of these linked life insurance and long term care policies:

Protection
Your life insurance death benefit is also available for long term care expenses.

Flexibility
You can use all, some or none of the death benefit for long term care. The benefit not used for long term care expenses, will be paid to your heirs.

You WILL use the benefits
Regardless of what happens in your life, this policy will pay out. When paying for a standalone long term care policy, you run the risk of not using the policy.

There are several carriers on the market who provide these long term care options with their life insurance: John Hancock, Lincoln and Hartford are a few, but one carrier stands out from the rest: Nationwide.

Hands down, Nationwide has the best long term care rider and rates. Comparing all these companies will take a whole other article. We have nothing against the other carriers, in fact we offer all of them - but Nationwide has separated themselves from the pack. Click here for an in depth look at this rider.

For more information about linking your life insurance with long term care, quotes or to request brochures, please don't hesitate to contact us. You'll find that when it comes to educating our clients, we take the time to make sure you understand everything!

Do you have an Old Line Life Insurance Policy?

Jeff Root — Thu, 03 Nov 2011 05:56:00 +0000

Old Line Life Insurance has been around since the early 1900's. In March of 2003 they merged with American General.

We've run into several consumers lately who have term life insurance policies with Old Line Life Insurance that are expiring. Every one of these consumers had no idea who their agent was or who to contact. In fact, one of our clients tried to call American General and explain their situation to a customer service agent who had no idea who Old Line Insurance was. You NEVER want to talk to a call center customer service agent about your life insurance options (but that's a whole other story).

Here's what you should do if you want information or options regarding your Old Line Life Insurance policy:

1. Contact Root Financial so we can review your policy over the phone.

2. Look at conversion options. If it makes sense, we'll have you sign an agent of record letter which will allow us access to your policy information so we can give you ALL the options your policy qualifies for.

3. Review the options American General will offer compared to the options on the open market.

These Old Line Life Insurance policies ARE convertible to a permanent product at the same health class you initially obtained with no evidence of insurability. This is an especially attractive option for those whose health has declined since they initially purchased their Old Line Life Insurance policy.

Please don't hesitate to contact us if you have an Old Line Life Insurance policy and want to know your options.

Life Insurance Rule of Thumb

Jeff Root — Sun, 30 Oct 2011 06:08:00 +0000

Many life insurance agents will tell you that there’s a “rule of thumb” when purchasing life insurance. The common formula many recommend are 7-10 times your annual income. Applying a generic multiple to an income leaves the consumer at risk of overestimating or underestimating how much coverage they need. Quite frankly, your life insurance agent is being lazy and doesn’t want to do a needs analysis.

Old rules of thumb are dead. There are considerable differences in the needs of each consumer. People buy life insurance for different reasons: income replacement, debt repayment, future college costs, pay off the mortgage and cover burial expenses are just some reasons consumers are buying life insurance. Everyone’s situation is different and your life insurance agent should walk you through a needs analysis if you don’t know exactly what you want.

Obtaining the adequate amount of coverage for the lowest price available is something only an experienced and independent life insurance agent can offer. We don’t use any scripts sent down from corporate to sell you 7-10 times your annual income, we can customize it. We don’t have to use a certain life insurance company, we can use any company fits your situation the best.

Bottom line. Don’t get caught up in the “rule of thumb” income multiplier for life insurance. Ask yourself why you’re purchasing this coverage and work the numbers out from there. If you need some guidance, give us a call. We can send you a worksheet or work out what you're trying to accomplish over the phone.

Life Insurance Is Not a Transaction, But a Journey

Jeff Root — Fri, 28 Oct 2011 23:14:00 +0000

Those who have purchased life insurance and bought “some”coverage, in reality, may not have the peace of mind they initially sought out. These policy holders should always be checking if they have “enough” coverage.

We understand that the cost of life insurance can prohibit consumers in getting the ideal amount of coverage. That’s why you need to consider life insurance a journey.

The goal should be from getting “some coverage” to “enough coverage” over time. It may not be possible for a year, 5 years or 10 years, but having enough coverage should not be ignored. That’s where the role of your life insurance agent should come in. Reviewing your life insurance on an annual basis is something every policy holder should do.

In some cases, we are shedding some coverage and lowering premiums. For example, your kids graduate college and are no longer financially dependent on you, you retire, you pay off your mortgage etc. These are reasons to potentially shed some life insurance coverage.

Just having life insurance does not protect your family. It’s great that you took the step to purchase coverage, but the goal should be to have enough coverage and to have it last as long as someone will be financially dependent on you. This can take some time, so make sure you work with an experienced agent who will be there for you to help you get to the point of have ENOUGH coverage.

When Should I Buy Life Insurance?

Jeff Root — Tue, 25 Oct 2011 17:11:00 +0000

Most consumers put off buying life insurance until there is a triggering effect. The most common triggers are:

New job
Loss of a loved one
Purchase of a home
Marriage
Birth of a child

So when should YOU buy life insurance? My answer always is NOW. If you’re asking yourself this question and reading this article, something has got you thinking about life insurance. It may be one of these common triggers or it may be someone you love being financially dependent on you. Whatever the reason is, the worst thing you can do is wait. Here’s why:

The younger you are the cheaper life insurance will be. Every year that goes by, the cost of life insurance goes up due to your age. Also, with the current market volatility, life insurers are required to keep higher reserves and therefore life insurance rates keep rising. With both of these factors it’s safe to say, the longer you wait, the more you’ll pay.

Tomorrow’s health is guaranteed to no one. You need to qualify medically for a life insurance policy. Don’t wait until your health declines and it becomes unaffordable or worst – unobtainable. We specialize in helping those with health issues find affordable coverage and all of them wish they would have taken care of their life insurance BEFORE they developed these health issues. Remember, even Superman has his Kryptonite.

Timing is everything in life, and in life insurance. Do your research, keep an open mind and speak with an independent and EXPERIENCED life insurance agent. Tomorrow is promised to no one – make sure your loved ones are protected today.

Get Term Life Insurance

Jeff Root — Tue, 25 Oct 2011 02:18:00 +0000

There are several ways to get term life insurance. The easiest and most cost efficient way is to contact an independent life insurance agency. An independent life insurance agency can offer virtually any life insurance company on the market. We don’t work for any specific company – we work on finding you the best rate, no matter which company will offer it.

There are a couple of things to understand before purchasing term life insurance:

Term life insurance rates are the same no matter where you purchase. Every agent uses the same published rates. Save yourself the time of calling different companies and just use an independent life insurance agency. We’ll run side by side comparisons based on your health and recommend the best rates available for you.
Life insurance applications must be assisted by a licensed life insurance agent. You will have to speak with someone so make sure you find an EXPERIENCED independent life insurance agent.

I can’t stress finding an experienced life insurance agent enough. Every week we help consumers find much better rates than what they currently have only because their agent used the wrong company. We clean up rookie agent mistakes all the time.

Each life insurance company will look at you differently, so the key in finding the best rate is using the company that will look at you most favorably. Only an experienced agent will truly be able to find you the best rate.

Root Financial has access to over 60 life insurance carriers and has been helping consumers purchase individual life insurance since 2005. We are a small, family owned life insurance agency with a focus on finding the best company for each of our clients. If you’re looking to get term life insurance, give us a call or fill out the form on the right. Our family looks forward to helping yours.