So you and your partner decided to get life insurance! It’s a little crazy that I have to say this in the year 2018 but the good news is, unlike some states, most life insurance companies don’t discriminate when it comes to sexual orientation. However, like any couple, there are things gay couples want to take into consideration when shopping for life insurance. Let’s go over your needs, options, and best ways to go about shopping.
Your best option is to let us do all the thinking and shopping for you at no extra cost to you! But if you want to learn more let’s briefly summarize main points and then tackle them in detail.
In summary, here are the few things you will need to consider when getting ready to get coverage.
- Coverage Amount – You will want to determine how much coverage you need.
- Coverage Type – There are different life insurance products out there to fit specific goals that you may have.
Once you determine that you want to start shopping. The process will include these simple steps.
- Compare – Never work with a captive agent as your options will be limited. Make sure to work with an independent agency(us) so that you can compare rates with over 60 A-rated companies (quoter to your right).
- Apply for Coverage – This will normally include an application, a medical exam, and an underwriting period.
That’s the gist of it, but most likely it left you with even more questions. How do I determine what I need? What kind of coverage should I get? What if I have medical conditions? Where do I find an independent agency I can trust?(hint: you’re here). So you’re better off chatting us up down below or giving us a call. But since you are dead set on learning all on your own, let’s dive into all these questions in detail.
How Much?
The simple formula that some agents use is 10 to 20 times your annual income. But life isn’t always that simple is it? You will want to consider all your financial responsibilities into the picture. Do you have kids or are planning to have kids? Most likely you will want them to go to college, so aside from income replacement, you will want to calculate school costs as well. After that you want to include any debts that you have out as well as any assets that you may own. Also remember any funeral expenses and final costs that will accompany a tragedy. The math can get pretty hectic so you can use our handy life insurance needs calculator to do the work for you.
Type of Policy
Many agents out there like to complicate this conversation but it’s really quite simple. There are two types of coverages: term life insurance and permanent life insurance. Let’s break down each in layman’s terms.
Term Life
Term life insurance is a policy that is temporary. So if you buy a 20 year term life insurance policy you will be covered if something happens to you within those 20 years, as long as you pay your premium. After that you would either have to renew the coverage or it expires. While there are different types of term, level term is the most common because it keeps your rate locked in for the term period. This is known as the most affordable type of life insurance coverage because of the smaller risk associated with a death claim. It’s “if” you die, not “when” you die coverage.
Permanent
Speaking of “when” you die coverage , that’s what permanent life insurance is. This can be a whole life policy, which has cash value accumulation investment aspect, and is much more expensive than a term life policy. The other type of permanent product is Universal life. Usually what I recommend for permanent coverage is a Guaranteed Universal life insurance policy, also known as “permanent term.” While its still 2 to 3 times as much as term life insurance, it’s still very affordable compared to most permanent products. This is because it lacks any real investment aspect as most permanent coverages and focuses on pure protection. Any cash value accumulation is used to keep your monthly cost level. It usually provides coverage to age 90 or 121 depending on company and policy type.
No Exam Life Insurance Policies
You can opt for a no exam coverage but make sure you are getting one that fits your needs. There are two types of no exam coverage.
- Simplified Issue – This product is for those seeking speed and convenience. The underwriting guidelines are stricter for these than traditional life insurance so you have to be fairly healthy to qualify. These are usually a little more expensive and cap the coverage at $250,000 to $400,000 depending on the no exam carrier. But if you seek to skip the medical exam, you can compare quotes for that here.
- Guaranteed Issue – This is a different type of no exam and it’s exactly what it sounds like, no questions, no exam, guaranteed issue. This type of coverage is for those who cannot get life insurance any other way due to being a high risk. It usually caps the coverage at $25,000 to $50,000 and is much more expensive per coverage amount. These are usually called “burial policies.”
Which One Do I Need?
The product best for you will depend on your needs. Are your life insurance needs temporary or permanent? For example, if your kid is 10 years of age, he or she probably won’t need to replace your income by the time they’re 25 years of age. For something like this you can get a term life policy. Or if you have a 10 year mortgage you can get a 10 year term life policy to cover the amount.
This is an overly simplified way of looking at it but it gets the point across. I always recommend doing a full needs analysis with a professional to make sure you don’t leave anything out. For anything permanent like replacing your spouses income or funeral costs you would want a permanent policy.
The Buying Process
Alright, so you’ve made it this far and I’m sure you have even more questions now then when you started. One of those questions is how do I actually get the coverage? Well let’s dive into the process. The first step, is to compare.
Compare
When doing your life insurance shopping, make sure you’re doing just that, shopping. If you go directly with a life insurance company or work with captive agent(represent only one company) then you’re limiting your options drastically. Often people overpay for their life insurance coverage because they fail to compare. Some companies will charge twice as much for the same exact product!
This is why you want to work with an experienced independent agency. Especially if you partake in a dangerous job or have health issues, you’ll want to have a pool of companies to work with and an agent that knows which company will favor your situation. So if you’re ready to compare look to your right! And as I mentioned earlier, being gay has zero effect on your rates. The only thing is men do pay more for coverage due to their higher risk of dying than women. So if you’re a lesbian couple, you can enjoy the savings that most couples won’t get.
Apply
Once you do your due diligence with a professional the next step is to apply. Applying will be a 3 step process:
- Application – this will take 10 to 30 minutes of your time and will include basic information, health questions, and beneficiary information amongst other things.
- Medical Exam – if you opt for traditional coverage you will have to do a medical examination. This is done at your convenience at a location of your choosing and is paid for by the life insurance company. You will have to give a urine sample, blood sample, have your weight and blood pressure checked. This can take 20 to 30 minutes of your time. Read our tips to do well on the exam here because this process can be crucial to your rates.
- Underwriting – This is the part that you wont have to do anything for. Underwriting is the portion of the application process where the life insurance company reviews your medical and personal records to determine what rate class you qualify for. This process can take 4 to 8 weeks unless you went the simplified issue route, which can take a few days.
Wrapping Up
Overall gay couples can get life insurance due to the world slowly becoming a better place. Hopefully these tips helped you get an idea of what you need but if not we are always just a call away. We are an independent agency that represents over 60 companies and are experienced with high risk cases. If you have any health conditions or participate in dangerous activities than simply scrolling through the quote engine isn’t your best bet. Call us today at 888-492-1967 so we can answer all your questions or chat us up below if it’s not to late. Welcome to InsureChance, the first online life insurance marketplace that does the shopping for you, and at no extra cost to you!
