Are you planning for a secure retirement and eventual transfer of your estate to beneficiaries? You do not have to be very wealthy to plan for this. Let us look at one product that is becoming more noticed these days with advisors and people who are doing estate planning. It can help turn one amount of money into a larger estate to leave behind. This product  is called single premium whole life (SPLI).

Why Is SPLI Different?

The most obvious difference is that you make one large cash payment when your coverage begins. You are probably used to having a monthly bill! That one lump sum funds your coverage, and so you do not have any more payments to make.

So you see that you have given the insurer a certain amount of money. In return, they issue you a policy for a sum that is probably a few multiples of the original amount. Many people are using this product to fund their estate.

An Example To Explain Single Premium Life

Look at the example of a healthy 70 year old who retired from the public school system. Her savings and teachers pension enable her to live well. But she also has another $50,000 she inherited from her own parents. She could take this cash and fund an SPLI for, let us say, $200,000. This way she sets up a nice estate to pass on to her kids and grand kids.

The paragraph above is only meant to illustrate how this works. The amount of cash you would have, and the death benefit you could buy, depend upon different things. As with any other life insurance, your premium and coverage amount will depend upon age, health, etc.

Who Benefits from Single Premium Whole Life?

Would SPLI be something for you to think abuot? If you have some money, and would like to be sure you can leave more money to survivors, it may be something to think about. It works best if you are sure that you do not need that money to live on, especially in the next few years.

If you do have to cash out your policy early, you could lose some of the value to surrender charges and fees. There is usually some sort of term for these, and policies are different.

One other single premium life insurance advantage is the fact that this large payment will allow your policy to grow value fast. Have you seen normal policies where it may take 5 – 10 years to have a cash value? Once your policy has a cash value, you can use it to borrow against. You can also cash it out. So in addition to having coverage, you also have set up an emergecy fund for future use.

Another feature is the fact that many policies allow you to accelerate the death benefit in case of a terminal illness. This way, a person could use the money if they need it. Some also have provisions for withdrawing part of the cash value in case of nursing home confinement.

These policies are not for everybody. If you do not have a lump sum of money, you may be better off with a regular life insurance policy and monthly payments. You should also understand that SPLI may be treated differently by the IRS. And finally, if you think you may need to withdraw your money in a short time, it will probably not benefit you. Fees or surrender charges could reduce your actual cash quite a bit in the short term.

Are you interested? Look here to get Single Premium Life Insurance Explained.

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Some of you may know that I also run the Over 50 Website. A frequent topic of conversation over there is the possibility of obtaining life insurance over age 50. The first thing that people want to know is why older people need life insurance.

Some Life Insurance Needs at 50 Plus!

• Funerals are expensive. Prepare financially for final expenses.
• Estate Transfers. This may be particularly important if a business or home is involved, and other heirs must be compensated besides the one who will retain the asset.
• Settle debts
• Leave an inheritance or legacy.
• Provide for a spouse or others.

Can Older People Find Life Insurance?

I have some good news. Because Americans are, on average, living longer and more productive lives, many insurers hare happy to extend benefits to older people, and to offer those policies at lower rates!

You can find out which plans are best for you with over 50s life insurance quotes here. Since insurers vary policies and premiums by local areas, it is important to find out which companies are competitive in your town or city. Also, the type of plans that are available for a person like you will certainly vary by your age and health. But minor health issues or advanced years should not deter you from doing some competitive shopping.

Term LIfe For Age 50 – 75

Some companies offer term life for older people, even up to 75. If you are middle aged to a senior citizen, find term policies for 50 to 75 here. You may not find a cheap 30 year term policy at this time, but you can very well find an affordable 10 year policy (maybe even 20 years) if you are in reasonable health.

Whole Life Options

And as we get older, the advantages of whole life get clearer. As long as the policy is kept in force, the policy will cover us. Of course, whole life costs more than term life, but it is because it will cover us in our old age, and not just when we are younger. And many whole life policies will pay us the entire death benefit if we survive to 100. So that is a win-win situation.

Sometimes smaller face value whole life policies that are designed for older people are called final expense policies. They are not for everybody, but are very popular these days. Most seniors can qualify. Learn more about final expense insurance rates.

Are You Too Old For LIfe Insurance?

Many of us got older, but did not outgrow our need for coverage. We could still have a spouse or kids to help, a mortgage payment to make, or just want to make sure that there is plenty of cash to pay for a funeral and settle debts.

It hardly takes any time to fill out an online quote form, and since the service is free and without obligation, there is very little reason to do some competitive shopping if you are curious about finding 50+ life insurance. You maydo it for yourself, or do it for a parent who may need some help planning.

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You may think that older people have outgrown life insurance. After all, kids should be grown, houses paid off, and savings built up? Those are nice thoughts, but are probably not the reality for many middle aged and retired people in the US. Recent financial problems have probably cut into savings and investments, and they may have even delayed paying off a home! In addition, many grown children are having their own financial problems, and they are even returning to their parent’s home. Sometimes those grown children bring their own kids with them to live with the grandparents. Clearly, older people in the US still have plenty of responsibility!

Life Insurance Choices For People Over 50

If you need to find life insurance over 50, you should not panic. Since we have had the good fortune to enjoy longer and healthier lives in the US, many top life insurance companies are extending affordable policy choices to older people.

No Medical Exam Term LIfe Insurance – You can find term policies for people in their 70s these days. A reasonably healthy 70 year old with good health habits can certainly find 10 year policies that can provide financial security for another decade. An applicant will have to answer some health questions to apply, but many applications are fairly short and simple.

Final Expense – Final expense life insurance rates are designed to be affordable for many seniors. These products are designed to be affordable ways to plan for end of life events like funerals and settling debts. Any cash left over can be used by the beneficiaries in any way they choose.  Final expense policies, are actually small face value whole life insurance policies, and they come in guaranteed or simplified issue, and these are different. Learn more: Final Expense Life Insurance For Seniors.

Most of the time, these plans do not require a medical exam. Simplified issue will ask a few health questions, but most seniors without a terminal disease, and who does not require nursing care, should qualify! Guaranteed issue plans ask no health questions. However, they may have other disadvantages like higher rates and a waiting period before full death benefits can be paid. In my opinion, guaranteed issue plans should be a last resort.

Universal Life Insurance is a little different, but is also a permanent policy that will not expire as long as it is kept in force. For more information on this innovative product see: universal life insurance explained.

Advantages of Permanent Policies for Older People – Term policies do cost less, but a big reason they cost less is because the insurer does not risk lifetime coverage. A whole or universal policy can provide lifetime security, and it will cover an insured person as long as the policy is kept in force. Keeping a policy in force usually means keeping it paid up! Some of these policies can be paid up over a number of years, and so a person can plan to have paid up life insurance coverage for their retirement years.

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There are so many ways to rank US life insurance companies. You could rank the biggest companies that take in the most premium dollars every year. Or your could do a financial ranking to determine which insurers are the most financially secure. Last, but not least, we could consider customer satisfaction. Which life insurance companies get the best customer satisfaction and the least consumer complaints?

Some Ways To Rank Life Insurance Companies

• Size, including revenues and assets.
• Financial stability as analyzed by 3rd parties like AM Best.
• Low consumer complaints and high customer satisfaction.
• A company that is friendly to an applicant like you. For instance some companies may be more willing to underwrite people with health issues while another company may offer you a fantastic discount for good health habits.

Top 10 Life Insurance Companies By Premiums (From the Insurance Information Institute):

Rank        Revenue Assets
1 MetLife $53,150 $558,562
2 Prudential Financial 34,401 485,814
3 New York Life Insurance 29,280 179,621
4 TIAA-CREF 27,526 420,315
5 Massachusetts Mutual Life Insurance 25,268 172,911
6 Northwestern Mutual 22,597 156,547
7 AFLAC 15,393 65,805
8 Genworth Financial 11,443 114,315
9 Principal Financial 10,907 154,520
10 Lincoln National 10,738 191,43

When we look at the amount of premium or policies that insurers write, it certainly says something about the company. But it may say more about their marketing efforts than their actual products since many consumers do not do a lot of research before they buy life insurance.

Top Life Insurance Companies by Satisfaction

The American Customer Satisfactin Index scores companies on several factors. They rated Prudential, Met Life,  Northwestern Mutual, and New York Life as the top 3.  These are some of the most well known companies in the US, and according the the ASCI, customer satisfaction is some indication of financial performance. This seems logical too.

Rates and Plans are Local, and Not National in the US

Besides, life insurance rates and plans are local, and they are really regulated at a state level. It will probably help you more, as you search for the best life insurance company, to find the top insurers in your own local area. And you will certainly want to take more than revenues into account. You will also want to balance financial stability, plans that work for you, and of course, price.

Show Life Insurance By Price and Plans Too

Do not assume all of the top insurers charge the same price either. When we compared the premiums for identical policies, applicants, and face amounts we found a $300 a year premium difference between top insurers in one area! That $300, spread over 20 years, means a $6,000 difference!

Find the Lowest Price Top Ranked Life Insurance Company

In order to find the best premium for a top insurer, you will need to do some price comparisons with your own information. While some insurers may offer a substantial discount for good health habits, another insurer may not be friendly to people over 50!

Compare Top Life Insurance Companies! One safe, fast, and free form can save you hundreds of dollars on life insurance.

Finding the top life insurance company really means that you find the best life insurance for you!

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