It is important to talk with our families about end of life plans. Here are some questions to help.
Why do I need mortgage term life insurance?
Buying a house is a major investment. Learn how life insurance can be a great tool for your family.
Why can life insurance take so long to get?
Why can life insurance take so long to get?
One of the great things happening in life insurance is the ability to get approved fast, at least for some people. However, for many people, this is simply not going to be experienced.
Here are 4 reasons your life insurance is taking forever to be accepted?
- Health issues – Depending on how you answer a question in the application. That can cause the application to go to underwriting. This means an extended waiting time before the issuing.
- Doctors – Sometimes, the underwriter will follow up with your doctor because of current or previous health issues. This does not mean you will get denied. However, now you are waiting on the doctor. They are not known for speed in this area.
- You failed to answer one of the questions or filled it out wrong. It is a simple mistake as you answer a lot of questions.
- Not setting up payment – If you failed to set up the payment during the application, this will slow down the acceptance and start of the life insurance policy
For some yes, a policy can be issued within an hour. For others a policy can take anywhere from 3-4 weeks to 2 months, depending on the situation. I suspect as insurance companies adapt technology, you will see an increase in speed for the underwriting.
What type of life insurance are you looking for?
Life Insurance Product: Foresters and CPP
This week’s Wednesday product review is Foresters and CPP.
These two companies who are leaders in the insurance industry, have come together to form a larger one.
They share they have a focus on overall wellness and not just life insurance. As a result, for those who have contracts with these companies. You receive these member’s benefit.
Members Benefits
These are tools and resources they offer to their client.
- Lawassure – legal document creation service (create a will, make a power of attorney, prepare a healthcare directive).
- Grants and Scholarships
- Emergency Assistance program
- Orphan Scholarship
- Up to 6,000 annually available to help fund post-secondary school.
- Orphan OBenefit
- $900 a month per child to the legal guardian for the children under 18 upon the parent’s death.
- Volunteer Leadership development and community volunteering opportunity.
- Everyday money toll-free financial helpline
- Transportation benefit
- Life-long learning – a range of courses to for personal development and growth skillsets.
- Charity benefit – Will donate 1% of the death benefit to a charity.
Type of Insurance they offer
- Permanent Life Insurance Plans (As of January 2021 were some of the lowest-priced protection. This can change and most likely well as time goes on.)
- Term Life Insurance Plans(no medial and Simplified)
- Critical Illness Insurance Plans
This is one of many great products we can access for you. It all starts with a free financial analysis to assess what you need.
What question do you have?
Extra:
How much life insurance do I need?
How much life insurance do I need?
A simple way to start to figure out how much life insurance you need is a Dime calculator.
Debt and final expenses – Add up your debts outside of your mortgage and estimate your funeral expenses.
Income – Take what you earn and multiply it by the number of years you need to support your family. For example, if you are 40 and you have 20 years of working left.
Mortgage – What is the amount you need to still pay off on your mortgage.
Education – Do you plan on helping your kids to college, what will that cost? How much do you want to help with?
I would recommend that instead of just planning for life insurance, consider an overall financial plan.
There are other things to consider, as well regarding retirement and current and future investments.
Getting an understanding of this was important as I looked to provide for my family.
A great place to start is getting your budget in order.
Try this free budget tool to help track and plan your budget.