We never know when a death might occur. Obtain peace of mind to protect those you love. We are able to provide you with Guaranteed issue life insurance with coverage amounts up to $150,000, with no medical or health questions. Higher individual amounts available. Depending on group or association, typical life insurance provided is term insurance with a five-year band. So, if individual enrolls at the very beginning of the age band, then they would basically have the same rate guarantee for almost five years.
Why Life Insurance?
- Pay Off Debts: A life insurance policy can pay off any debts that you leave behind that would be a burden to your family. Debts such as a a mortgage, credit cards, car loans and even your funeral expenses can have a dramatic impact on your family and their lifestyle.
- Provide for Your Kids: A life insurance policy will ensure that your children can go to college, buy a home and even pay for their wedding if you die unexpectedly.
- Peace of Mind: A term life insurance policy is an inexpensive way to give you and your family members peace of mind, knowing that they will be protected if something happens to you. You will no longer have to worry about their financial future and can rest easy knowing they will be able to continue their current lifestyle.
- Funerals Are Pricey: Even a basic funeral can cost $7,000-$10,000. A small life insurance policy will make sure your final expenses are covered so your family doesn’t have one more worry at an already stressful time.
- Supplement Your Retirement: Permanent life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. These policies often come with fairly high fees, so be sure to compare the costs to those of other investment vehicles.
- Protect Your Business: Regardless of whether you are using a life insurance policy to insure a key employee, fund a buy/sell agreement or simply provide a tax-free cash infusion (borrowing against the cash value of a permanent policy), life insurance can be a major asset to your business.
- Coverage for ages 18 – 69 Guaranteed Issue , 18 – 84 Simplified Issue
Life Insurance Types
For life insurance coverage, an individual may choose Guaranteed Issue Life or Simplified Issue Life.
For the difference in the two options, refer to the chart below:
|Type||Issue Ages||Maximum Benefit Allowed||Maximum Coverage|
No health questions
|Ages 18 - 69||2x Annual Income||$150,000|
Some health questions
|Ages 18-84||5x Annual Income||$250,000|
If you wish to start at a higher death benefit when enrolling, then refer to the Simplified Issue plan to
start out with a higher death benefit.
Death Benefit Stepdown
***Once a covered individual turns 65, 70, and 75, there will be a death benefit reduction. Refer to the following chart:
|When Policy Holder turns||Original Death Benefit Reduced by these Percentages|
At the time of application submission, or when the client turns the above ages, the death benefit will be reduced by the amounts in the table. The premium will also be reduced to reflect the new death benefit at their current age.
For example, if someone purchased a life insurance policy with a $100,000 death benefit before age 65, then turns age 65 the death benefit will be reduced by 35% so the total death benefit will be $65,000. Then when the client turns age 70 that same death benefit will be reduced to $50,000. And finally when the client reaches age 75, the death benefit will be $25,000, if they started with $100,000 death benefit. Ultimately even though the death benefit is reduced, the premium is always adjusted appropriately as well.
NOTE: If someone applies for GI or SI at age 65 or older, the application will go to American National’s underwriting department for review. Then the policy will be reduced down according to the above chart. The TPA, KMG, will be notified of the new lower premium amount and reimburse the individual the difference in the original applied policy and the new reduced policy premiums. The reimbursement should by applied within two to three weeks of the effective date. After the adjustment has been made, the new lower premiums will stay the same until the next age band is achieved.
On a side note, after the term policy has been in place for at least a year, you may convert to a permanent whole life policy which the death benefit and premium never change. Should you want to convert, simply call American National to convert over.
Keep in mind, if you have life insurance with your work, you typically can’t take it with you when you leave. If you should happen to become uninsurable, what will you do? You can take our life insurance with you and the plan cannot be cancelled unless due to non-premium payment.