Replacing Whole Life Insurance For Veterans
A 1035 exchange is a provision in the tax code which allows you, as a policyholder, to transfer funds from a life insurance, endowment or annuity to a new policy without having to pay taxes. When working with clients who already have an old-fashioned whole life insurance policy, we take a three-pronged approach.
First, we set up the bulk of the death benefit as a convertible term insurance policy with the opportunity to convert growing amounts of that money into investment-grade permanent placement insurance as more funds became available. Setting up the bulk of the death benefit in a term policy allows you to have a larger death benefit while keeping your costs low.
We then do a 1035 exchange to move equity from your old-fashioned whole life policy into the modern insurance policy with a relatively low death benefit, which we can comfortably do because the bulk of the death benefit is being covered by the convertible term plan. We do this because the smaller the death benefit initially, the lower the cost to fund the plan. In this way, we can take the type of product that would normally take 10 to 15 years just to break even and bring that timeline down to three to five years, if not immediately.
Rapid Decision Senior Life Term
- Rapid Decision Senior Life is a term life product
- No medical exam required up to age 70
- Coverage ranges from $10,000 to $150,000
- 10, 20 & 30 year terms for ages 50-55
- Ages 50-55 $10,000 $150,000
Between policy years 1-3: If death should occur from natural causes or a non-accident, premiums paid plus 5% interest will be returned. If death occurs from an accident, the full death benefit will be paid.
Once the 4 year of the policy is reached and beyond: 100% of your death benefit will be paid no matter the reason of death.
Take Advantage Of The Va Life Insurance Benefit
Many of the life insurance programs the VA offers can provide tremendous financial security and peace of mind for each U.S. service member, veteran, and their dependents and loved ones. Make sure to carefully review the information presented here to determine which program is right for you and your family. Its worth the effort to ensure that your loved ones can be financially secure for the future.
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Life Insurance For Disabled Veterans
The Department of Veterans Affairs provides life insurance benefits to some American veterans with disabilities through a benefit known as S-DVI . This financial protection is similar to the benefits provided to all military members while they serve, known as Servicemembers Group Life Insurance .
S-DVI is a type of government-sponsored life insurance not available through private insurance companies or brokers like Policygenius.
When Should I Not Get Life Insurance
There are some situations where you dont need life insurance over age 60. These include having no dependents and no debt.
In addition, if you are confident about your ability to support your medical expenses at the end of your life and have enough to support your funeral expenses, you should skip getting life insurance.
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Veterans Life Insurance Riders
If you become totally disabled or terminally ill and have VA coverage, you may qualify for additional benefit options with your veterans life insurance. Your spouse could also qualify if they have a terminal illness.
Waiver of premium rider: If you become totally disabled, a waiver of premium rider means you will no longer have to pay your life insurance premiums. Typically, premium payments can only be waived up to one year before filing a claim.
To qualify, applicants must meet all of the following requirements:
- You have Service-Disabled Veterans Life Insurance coverage
- Your disability prevents you from working
- You became totally disabled before age 65
- Your total disability lasts longer than six months.
There can be exceptions to these eligibility rules.
Accelerated death benefit: For terminally ill policyholders, an accelerated death benefit may be available. With an accelerated death benefit, you can receive up to 50% of your veterans life insurance coverage paid in $5,000 increments before death.
To qualify, you must meet all of the following requirements:
- You must have a VGLI insurance policy
- You or your spouse must have a written letter from your doctors stating you have less than nine months to live
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Transamerica Trendsetter Lb 10
For more, see our United Home Life insurance company review
IMPORTANT!As a smart life insurance shopper, you need to know that there are over a 100 companies and policies to choose from. The above life insurance providers maybe just what you are looking for or they might not be. Make sure you work with an independent agent to make sure you dont apply with the wrong company.
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How Much Does Life Insurance For Veterans Cost
The cost of life insurance for veterans varies from company to company. Premium payments will typically depend on your age, medical history, coverage goals, and history of smoking. If you choose to go with a private company, the rates also vary between term and whole life insurance plans. The best plan for you may depend on what coverage you need and how much youre willing to pay in premiums.
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Modified Life At Age 65
- Available on all programs except “K”
- Can only be purchased before the insured attains insurance age 61
- Affords a permanent plan of insurance at a premium that is lower than the Ordinary Life Plan premium
- Provides an automatic reduction by ? of the face amount of the insurance on the day before the policyholder’s 65th birthday.
- Policy earns loan and cash values
A Premium That Will Never Increase
While VA-sponsored life insurance for veterans tends to have lower premiums, those premiums can change. As you get older, you become more risky to insure, and your costs will go up. Once you are over 60, the increases can be steep. With a private whole life policy, you can lock in a benefit at a premium that will never increase. It may cost you more per month now, but it could save you money down the road.
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Top 10 Best Life Insurance Companies For Seniors
Here are the Top 10 life insurance companies for senior citizens. (Actually we have 13, but Top 10 sounds better!
Here are, what we believe, are the best life insurance companies for seniors. Lets look a little deeper into these life insurance companies for seniors and why they are in our top 10.
They offer whole life insurance, term life insurance and life insurance riders that will fit your needs. The following life insurance companies are considered the very best of life insurance providers for those who are age 65 plus.
How Do You Get Life Insurance For Veterans
Unlike standard life insurance, veterans can get life insurance through the government or private sector. According to the U.S. Department of Veteran Affairs, there are several government options for active and retired service members. Heres a list of those programs.
- Servicemembers Group Life Insurance
- Family Servicemembers Group Life Insurance
- Traumatic Injury Protection
- Veterans Group Life Insurance
- Service-Disabled Veterans Insurance
- Veterans Mortgage Life Insurance
Veterans are allowed to sign up for government life insurance programs through the VA. Because of the COVID-19 pandemic, VGLI application deadlines have been extended.
These programs help veterans who may have financial challenges or veterans who have difficulty getting personal life insurance.
Your life insurance quotes are always free.
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Life Insurance For Retired Military
Retired military life insurance is the most flexible. Military veterans who retire can set up sizable life insurance savings while monitoring their life insurance.
Its a good idea for any military veteran to get a term life insurance or whole life insurance policy while active.
A term life insurance policy would reassure your loved ones during your military service if something happened. A whole life policy generates wealth while youre in the military.
When term life insurance policies expire, you will lose the value of the policy. However, a return of premium rider will refund a portion or all of the premiums you paid on the term life policy.
How Much Life Insurance Do Veterans Get
In addition to pricing considerations, you should consider how much coverage you need. The maximum amount of life insurance for vets through VGLI is $400,000. Be aware that your veterans’ life insurance policy is initially limited to the same amount of SGLI coverage you had while in the service. Once in place, you can increase your coverage by $25,000 every five years, but only up to the $400,000 limit.
Or, get a quote from Ethos for an online life insurance policy to replace it entirely.
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Best For Financial Stability: Massmutual
MassMutual
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Doesn’t allow online credit card payments
MassMutual pairs solid financials with satisfied customers. It received an A++ financial strength rating from AM Best and had very few customer complaints over the past three years, according to the NAIC. Plus, it scored above average in J.D. Power’s 2021 U.S. Individual Life Insurance Study.
The company has been in business since 1851 and offers a wide selection of life insurance, including term, whole life, universal life , and variable life policies. It also pays dividends to eligible policyholders and provides access to living benefits with riders.
MassMutual does not offer military program quotes online, but you can get help from a financial advisor regarding the conversion of SGLI, VGLI, or FSGLI. MassMutual offers term quotes online.
Servicemembers Group Life Insurance
The Servicemembers Group Life Insurance program offers term life insurance at an affordable cost for eligible members of the U.S. military. Coverage is available up to 400,000 in 50,000 increments. You may be eligible for SGLI if at least one of the following conditions is true:
- Youre an active duty member of the U.S. military, including Army, Navy, Air Force, Marines, and Coast Guard
- Youre a commissioned member of the National Oceanic and Atmospheric Administration or the U.S. Public Health Service
- Youre a midshipman or cadet enrolled in a U.S. military academy
- Youre a cadet, midshipman, or member of a Reserve Officers Training Corps that is currently engaged in authorized training
- Youre a member of the National Guard or Ready Reserve, youre assigned to a specific unit and your unit is scheduled for at least 12 periods of inactive training per year
- Youre a volunteer in an Individual Ready Reserve mobilization category
- Youre in non-pay status with either the National Guard or Ready Reserve
If you qualify for SGLI, you will automatically be signed up within your service branch, and you can connect with your branchs HR team for further details. You can then make changes to your account through the SGLI online enrollment system, and your premiums will be deducted from your base pay every month.
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Life Insurance Rates For Retired Military
The average retirement age for active duty enlisted retirees is 42 and the average age that officers retire is 46. To compare the costs of VGLI to those of a private policy, we pulled numbers for a nonsmoking, 40-year-old male in good health with no family history of disease. When you get a term life insurance policy, the rate stays the same for the length of the entire policy . VGLI max coverage is $400,000, so we compared that to a private $400,000, 30-year term policy.
Life Insurance Eligibility For Seniors Over 60
For seniors over the age of 60 looking to buy term life insurance, there are restrictions on the size of the face value and the coverage length you can purchase. Each insurer has its own rules regarding which types of policies are available for purchase.
Typically, if you are trying to purchase term life insurance after the age of 65, you would be restricted to policy lengths of 10, 15 and 20 years.
Guaranteed and simplified whole life insurance products do not have any restrictions for those over 60, since these products are designed for seniors. However, life insurance providers have coverage limits associated with the product face values typically range from $2,000 to $25,000.
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How Expensive Are Premiums Over Age 60
In many cases, seniors pay higher life insurance premiums, especially if they are getting life insurance for the first time in comparison to younger people. Life insurance rates by age vary considerable, especially for seniors. We can help people of all ages and backgrounds to get the best life insurance coverage that works best for them.
There are many available options for many life insurance companies so we will help you find the best life insurance policy that is also very affordable.
Best Children’s Rider: Military Benefit Association
Military Benefit Association
Children are covered for free up to $12,500 with the military Term Insurance to Age 90 Plan. Optional add-ons even allow children to become members in their own right starting at age 25.
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Is underwritten by MetLife Inc.
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Has been in business since the 1950s
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Eligible children may be covered at no additional cost
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Offers coverage for policyholders up to age 90
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No whole life insurance plans are available
Founded in 1957, MBA offers 10- and 20-year term life insurance for veterans as an alternative to or supplement for existing VGLI coverage. The company’s life insurance policies are underwritten by MetLife, Inc., which has received an A+ rating from AM Best. As an added benefit to senior veterans, MBA offers an additional term life insurance plan that provides coverage up to age 90.
Aside from the veteran, family members can obtain policies. Spouses are eligible for $1 million in coverage. All policies come with free coverage for each dependent child for up to $12,500 per dependent. And, as an optional add on, customers can apply for $10,000, $20,000, or $25,000 of additional term coverage for each unmarried child under 21 years old . Beyond that, eligible children can become MBA members starting at age 25.
Instant online quotes are available on the company’s website. Interested customers can also call the company and speak with a sales agent Monday through Thursday, 8 a.m. to 7 p.m. EST, and Friday, 8 a.m. to 4 p.m. EST.
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How To Apply For Life Insurance For Seniors
Many people make the mistake of choosing the first provider that they find. For your own benefit, it is important to carry out extensive research and compare the quotes received by different insurance providers. Without this step, you will risk paying more for the same policy that would have cost less from another insurance provider.
Here is the best process to apply for life insurance.
The easiest way to do this is to work with an independent agent who can compare life insurance rates for seniors over 60 from multiple companies to find the best life insurance coverage for your situation.
Our independent life insurance agents work with the best life insurance companies, and weve helped 1000s of seniors find affordable life insurance. Give us a call, or begin online with our quick quoting tool to compare the best life insurance for seniors over 60 today!
Best Overall: Prudential Veterans’ Group Life Insurance
Prudential
The company offers veterans a guarantee of lifetime coverage with no medical exam requirements. Its also a reputable company with a long industry history.
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Provides coverage for active service members and military veterans
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No medical exam necessary in most cases
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No exclusions for mental health, PTSD, or TBI
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Strict eligibility requirements
Founded in 1875, Prudential has an A+ rating from AM Best. It provides coverage for millions of active service members and hundreds of thousands of military veterans with VGLI, a program established with the Veterans’ Insurance Act of 1974.
Administered by Prudential on behalf of the Department of Veterans Affairs since the launch of the VGLI program, this product guarantees lifetime coverage for the rest of a veteran’s life, no matter what happens to your health or employment status, as long as you pay your premiums. You have one year and 120 days after leaving active military service to enroll. If you apply within 240 days, no medical questions will be asked of you.
The monthly premium for $150,000 of coverage is $19.50 per month for a 35-year-old veteran and $100.50 per month for a 55-year-old veteran.
Online quotes are available on the websites for Prudential and Veterans Affairs. For assistance over the phone, you can call the company directly Monday through Friday between 8 a.m. and 5 p.m. EST.
Read the full Prudential Life Insurance review.
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