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In This Article I’m Going To Provide A Detailed Analysis Of How To Qualify For $150,000 Worth Of Life Insurance Coverage
I will also review all the necessary details you need to know before purchasing your $150,000 life insurance policy.
Most likely you’re reading this article today because you have decided $150,000 in life insurance coverage is a good buy. It will cover whatever obligation or final expenses you are concerned about. However, you’re not quite sure about the details.
You’d like to see rates, the type of life insurance you can get, and know what steps you can take to give yourself the best overall package.
If this describes your circumstances, then this article will be perfect for you. We’re going to spend time discussing why a $150,000 life insurance plan may be a good purchase for you or your loved one.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation. Enjoy!
Here’s An Overview Of Today’s Topic:
- Who Buys $150,000 In Life Insurance?
- Top 6 FAQs For People Buying $150,000 Of Life Insurance Coverage
- Case Study Examples
- The Kind Of Person That Generally Buys $150,000 In Life Insurance
- The Reasons Why People Buy $150,000 In Life Insurance
- The Types Of Life Insurance Products Available In Addition To Covering The Pros, Drawbacks, And Rates For Each Kind Of Plan Available
- Some Awesome Strategies To Help Give You The Best Overall Package Deal For Your $150,000 Policy
- Stories From The Field
- Factors That Impact Whether Or Not You’ll Be Approved For $150,000 In Life Insurance
Who buys $150,000 in life insurance?
Let’s start off our conversation by describing who specifically should consider applying for a $150,000 life insurance plan. Most likely you’ll fit one of these particular profiles.
The idea behind giving you these profiles is to better clarify what the reasons may be for your purchase so that you can better understand your decision and feel more confident.
Single or young people
Many times single people who are younger will opt to buy $150,000 in life insurance because it accomplishes several goals.
1.$150,000 does a good job of covering final expenses
2. Single people aren’t married, may not have kids, and have minimal obligations
$150,000 is low enough to cover those obligations, but also high enough that if the single person does in fact get married later in life and has children, it allows for the replacement of their income, will pay down any remaining expenses and takes care of that family.
3.Many people purchased $150,000 in life insurance because they’ve got a mortgage or some kind of debt that they don’t want their surviving spouse to cover
Maybe they’ve got some coverage through work that they feel is sufficient to cover their final expenses, but they need a supplementary policy to cover financial obligations like a mortgage.
$150,000 in life insurance does a good job of covering many mortgages and relieving that overall burden of final expenses.
4.Up and coming and mid career professionals
A lot of people who are going up the career ladder and are experiencing economic improvement also accumulate more debt. Perhaps if you’re in this position, you already own life insurance coverage, but now you’re finding that with your increased obligations, it’s more sensible to possibly purchase a secondary policy to cover any additional obligations that you’ve accumulated or to account for an increase in your income and thus the need for more life insurance coverage to replace it.
If you happen to die, $150,000 in life insurance is a good add on type of life insurance policy for a person in this situation and gives them more liquidity if they pass away.
This type of plan would cover financial obligations in addition to replacing income and supplementing the retirement that they otherwise would have paid for.
Retirement age coverage
I’ve talked to many people in their sixties that are nearing or at retirement that still have financial obligations and feel it’s important to have some level of life insurance coverage. Usually they are looking to accomplish one of two things. They either want to cover financial obligations like mortgages or they want to replace the income they receive from their pension. I look at this as a lifestyle replacement life insurance plan.
It’s designed for the surviving spouse to have a lump sum payment to take care of final expenses. Not only final expenses of the deceased spouse, but to also replace what pension income they otherwise would get if the person was still alive.
If you would like to find out more about what your rates might be for quality life insurance, give us a call at (888) 626-0439.
You can also send us your contact details via our message box found on this page and we will be in touch within 24 business hours.
What are the other reasons to buy $150,000 in life insurance?
We talked about the kind of person that buys $150,000 in life insurance coverage. Now, let’s spend some time uncovering reasons why it’s a good idea to get $150,000 in life insurance.
Cover final expenses
One reason people buy $150,000 in life insurance is to cover final expenses. This would include but not be limited to things such as funeral expenses, a medical debt, credit card, bills, taxes, that kind of thing. A small policy of $150,000 is a good way to cover for those expenses and not burden you’re surviving family members or kids with that expense.
As mentioned earlier, many times people purchase $150,000 in life insurance to cover large financial debt such as a mortgage. A mortgage can be burdensome to a surviving family member or spouse. Without your income, many times the house can be lost to foreclosure because of an inability to keep up with payments. An inexpensive $150,000 policy can secure against the possibility of that happening.
Cover business loans
One reason business people often purchase $150,000 in life insurance is because the bank requires their loan to be indemnified. What this means is that if the business owner passes away, the bank wants to make sure that they’re compensated for the loanee’s income and that they are in the clear financially.
Many times a bank will require that you buy a small term life insurance plan, maybe 5 or 10 years in length, to indemnify the bank and make them happy so that you can secure your loan and you can expand your business.
There’s two particular reasons why $150,000 in life insurance may be a good purchase decision for a business.
1. To keep the business going
To give your business the opportunity to continue without you or your partner’s contributions, you can buy what’s called a business continuity plan or a buy sell arrangement.
This insures if you or your partner were to pass away, the life insurance death benefit is paid to the family who has lost their loved one in exchange for the shares of the business sold to your partner, and vice versa. The benefit of this is that it removes the survivors from the ownership of the business and thus the decision making power that they have.
Many times if this isn’t done and no succession plans are made, it can ruin a successful business. A life insurance plan guarantees that there is a marketplace to sell that business.
2. To cover the key person’s role
If a partner dies and is the key person in the business, the bank may not be so inclined to work with the other partner. On a related note, you may not have partners, but have important people in your business that make it run effectively. What happens if they were to pass away? Would that have an effect on your vendor relationships or your customer relationships?
Would your business struggle for a while to compensate for the loss of a key individual? If this is the case, then a key person policy would be smart. The key person is covered, the company pays it, and the companies paid a death benefit upon their passing. What this allows you to do is to ensure that you can recover financially from their loss and take the time needed to find a replacement and train them.
A legacy of love
Simply put, life insurance comes down to loving your family. It’s tough to buy something that you’ll never actually see or put to use, which is really the definition of life insurance. You have to put faith and hope into a product that will perform without you being there to see it through.
A$150,000 life insurance plan would be a great way to leave a legacy behind for your children. Maybe you want them to start life off on the right foot. Maybe leave it to a grandchild to help them start their business, or pay the first down payment on a home. This can be a great benefit to a surviving family member to help them out in a number of ways.
Replace your future income
One reason people buy $150,000 in life insurance is that they recognize if they die earlier than expected, that their family will suffer financially for many years to come. A $150,000 life insurance plan can make the financial burden of your demise that much easier. While an insurance plan won’t replace you, it will replace your income for a period of time and that will give much relief to the people you love.
Protect your retirement plan
Many people save diligently every month in the hope that in many years to come they will eventually retire and can live on their savings. But what happens if you die before your retirement plan is taken care of and you’re able to realize that magical benefit of compound interest? A life insurance plan can essentially fulfill your retirement goals and ensure that your spouse or loved one will have the money set aside to take care of them in their retirement years.
Supplemental Life Insurance retirement plan
Sometimes people purchase life insurance, not for the death benefit but for the benefits of being alive. There are plans called whole life insurance or index universal life plans that are designed over time to develop income or cash value while not in use.
Over the long term, these particular plans can supplement a retirement strategy where you have conservative money that has tax advantages and can be borrowed upon in retirement without taxation issues. But at the same time these plans can be tied to a death benefit and be payable to your loved ones.
If you’ve found what you have read so far useful and are curious about what kind of insurance might be right for you, get in touch. You can send us a message via our contact box or call us to speak to a representative. Our number is (888) 626-0439.
Top 6 FAQS for people buying $150,000 of life insurance coverage
1.Can I qualify for $150,000 in life insurance?
In short, the answer is dependant on your age and any health conditions you might have. In most circumstances, you will qualify at better rates when you are younger and in good health. However, if you are just looking for enough to take care of final expenses, such as a burial insurance plan, you will find that this rule doesn’t necessarily apply and you’ll have more flexibility for smaller amounts of coverage as opposed to larger amounts of coverage.
2.Why is $150,000 dollars in coverage a good amount?
The answer to that question again depends on your particular situation. We deal with people that come from all different kinds of situations, with different kinds of health conditions. We ask about your goals because they are important to figuring out what kind of life insurance is best for your particular circumstances. Coverage amount will also be determined by your goals.
3.What if I need more coverage?
Usually, people ask this question because they want more but can’t necessarily afford more. There is nothing wrong with starting out with a small amount of coverage and adding to it later when you are more financially capable to do so.
4.What type of life insurance is best?
It all depends on what your goals are. If you have long term financial commitments, then a whole life or guaranteed universal life insurance plan would be best. For short term financial commitments, term insurance works well. Term insurance is the most common source of insurance and it is commonly used to cover issues such as a mortgages, financial debts, and the like.
Whole life and guaranteed universal life insurance are great for circumstances where a permanent solution is needed to a permanent problem.
5.No other options available
If you find you have been declined and there are no other plans available to you, guaranteed acceptance life insurance is a great option.
Types of life insurance coverage available
Let’s talk about the most common types of $150,000 life insurance coverage. The reason this is important is that not all life insurance coverage and options are the same. It’s important to know the differences so that you can make a confident decision as to what type of $150,000 life insurance plan will best suit your goals and what you’re looking to accomplish.
We will specifically talk about the pros, cons, and circumstances to in which each particular type of life insurance product would make sense, as well as the example rates for different age ranges.
Term Life Insurance
Term Life Insurance is the most popular form of life insurance protection. It’s designed to be temporary life insurance coverage for temporary obligations. For example, most people purchase term insurance to cover things in which they won’t necessarily need covered for later in life. A perfect examples of this would be mortgage protection. Eventually you’ll pay off your mortgage, so you won’t necessarily need a term life insurance plan later in life.
Other reasons for purchasing term insurance include:
- To replace your income if you die before reaching retirement
- To protect your retirement plan if you die before fully funding your retirement plan
- Affordability. Term insurance has the added advantage of being the least expensive type of life insurance available. Put simply, term insurance gives you the most coverage for the lowest price.
The biggest drawbacks of term life insurance is that it is designed to be temporary. If you have obligations that are permanent in nature, such as final expenses, long term debt, or supplemental income needs, then term insurance may not be right for you.
Most insurance companies grant coverage at this particular price due to the fact that most likely you’ll outlive the coverage that you’re qualifying for. So make sure you choose term insurance when you’ve got temporary obligations, not when you’ve got permanent obligations.
Below you’ll find some sample rates for $150,000 in life insurance for 10 year life insurance plans.
10-Year Term Life Insurance, Best Price On Quoter
Whole Life Insurance
Whole Life Insurance, unlike term insurance, is what I call a permanent life insurance product. It is designed for permanent types of problems that will not go away with time and will ensure coverage as long as you make payments on time.
In many cases the premiums remain level throughout your life or they become paid up at a future date where you get to continue to keep your life insurance coverage without having to make future payments. As stated earlier, the biggest reason why people purchase whole life insurance over other types of life insurance simply is because whole life insurance provides permanent protection without the risk of outliving coverage.
Permanent problems such as final expense coverage, business continuity and estate planning purposes are all good reasons to consider whole insurance.
Whole Life Insurance Rates, Life Pay
Universal Life Insurance plans
The best way to describe universal life insurance policies is that they’re a hybrid between what you find with a permanent type of life insurance plan and a term life insurance plan. Universal life insurance plans are built for customization. You can design the length of time to be permanent or you can design it to be more temporary in nature, whether that would be a 20, 25, 30 year length of time, or all the way up to a permanent basis.
You can get plans that are designed to have flexibility and overpay the premiums in order to get cash value advantages later in life, or you can get a plan that gives you a fixed premium and a guarantee. The plan will stay in place if you need a plan that maximizes your death benefit payout, which is otherwise known as a no lapse universal life insurance plan.
If you are considering a universal plan it’s very important that you designed it carefully because historically we’ve witnessed that agents often designed universal plans in a half hazard way, causing them to lapse coverage well in advance of the time period they’re intended to cover.
Guaranteed universal life insurance plans can also maximize death benefit payout for a retirement or act as a pension replacement plan. In some cases they can also acts as mortgage payment protection plans for older individuals.
Universal Life Rates, UL to 100 (ULA100)
Accidental Life Insurance
Accidental life insurance is exactly what it sounds like. This type of plan only covers if someone passes away by accidental means and only offers coverage if someone passes within the first few initial months of an accident or because of an accident. If someone lives longer, the accidental policy may not pay out.
The benefit of an accidental plan is that they’re incredibly cheap for the amount of coverage you can get. Obviously the disadvantages are they only pay out for accidental reasons and the likelihood is very low that you will actually die within that period of time from an accidental type of death.
So my recommendation is to not get accidental coverage unless you can’t qualify for anything else or if the type of work you do is risky or involves a lot of time on the road, like truck drivers experience.
Accidental Life Insurance Rates
Simplified Issue or Guaranteed Issue Life Insurance
In rare cases, you’ll see certain circumstances where one will purchase a simplified issue life insurance plan, or a guaranteed issue life insurance plan for $150,000 in coverage. The main reason an individual might go this route is that their health is declining and they can’t qualify for any other kinds of life insurance.
Case study examples
Promotion at Work
A couple recently got in touch with us after the husband received a big promotion at work. They were of course ecstatic about the rise in income, but also aware that they would need to get life insurance in place to cover their financial obligations.
The wife was concerned because her husband, despite being in generally good health, suffered from depression. He was taking medication for his condition and she had heard that this could sometimes cause higher life insurance rates.
We shopped a number of options for this client and found a policy both he and his wife were pleased with. We were able to get him first day, full coverage at an affordable rate.
Though we can’t guarantee the same outcome for every client, we do our best to provide affordable coverage for every individual, regardless of their goals and budget.
$150,000 in Total Coverage
A young woman contacted us after making the decision to expand her business. She explained the bank had required that she get a life insurance policy to match her loan amount. She also wanted to get insurance for income replacement, so she was looking to get $150,000 in total coverage.
The only issue she foresaw with her application was that she had a bit of a weight problem. She wasn’t morbidly obese, but her doctor had advised for health reasons she did need to lose about 100 pounds. Though she was concerned this might affect her application with us, she was pleased to find out she could still qualify for premium coverage at an affordable rate.
We can’t promise the same outcome for every individual, but we do have access to a number of providers that open doors for those who, due to health issues, may be harder to cover.
Strategies to get the best $150,000 life insurance deal
What follows below are my favorite strategies to use with my clients to gain the best overall $150,000 life insurance package.
Stories from the field
Early on in my career I met two older ladies in a rural area of Tennessee. The ladies were sisters and were living in a small house with their elderly uncle who they cared for. Their uncle had a number of health concerns, but nothing serious enough to cause him to be declined.
The sisters had reached out to me because they realized as their uncle got older they would need to have the proper funds in place to take care of his funeral and burial when the time came. The sisters only had a small amount of savings and worried about how they would come up with final expense funds without going into debt. They knew life insurance would be a good option to solve this concern.
I’m happy to say I was able to qualify this gentleman for first day full coverage despite some of his health challenges.
It was about 2 years later that I got word that this gentleman had passed away. We were able to pay out a full death benefit to the family within 24 hours to help pay for the funeral expenses.
I got a note about 2 years later that he had passed away from natural causes. I was proud to say that because of the company I worked with at the time we were able to get half of the death benefit to the family within 24 hours to help pay for the funeral.
Having a client pass away is always a sad experience, but it is also an important reminder of what life insurance can do in the lives of those who are left behind.
Work with a broker
This by far has the most leverage on what you will ultimately spend when you buy a $150,000 life insurance plan. This recommendation comes first and foremost on the list for a good reason.
There’s generally two different camps in which life insurance products are sold. The first being those who purchased life insurance from what’s called a captive agent and the second being those that purchase from an independent agent.
Here’s the main difference. A captive agent generally represents only one company. That means they have one option, which means you only have one option if you go with that kind of agent. Coverage is limited. Do you see how this could have a big impact on your coverage? Especially if your health isn’t crystal clear or you have budgetary limitations.
This is a circumstance we see time and time again in the life insurance business. People spend more than they need to for their life insurance coverage, when they could get the same kind of policy elsewhere with a highly rated company at more competitive pricing.
A broker has access to a multitude of life insurance companies. A broker’s job is to figure out what his or her client’s goals are and attempt to get the amount of coverage they require at the best price possible. They will take a profile of their client’s health, then go to the life insurance companies he or she has access to, which usually amounts to more than a dozen companies, to figure out which company is going to be the overall best choice.
A broker often can provide more comprehensive coverage and may be able to build a better package overall. So working with a broker is one the simplest thing you can do to give yourself the best chance of success when looking for $150,000 in coverage.
Clearly define your goals
This is really important to do right up front with your agents and is something we do with each person we meet on the phone here at Buy Life Insurance for Burial. Some questions we may ask include:
- Why do you want to purchase $150,000 in coverage?
- What would you like your $150,000 life insurance policy to do for you?
- Do you have any existing life insurance coverage?
- What do you foresee this $150,000 policy to actually accomplish when you die?
- Why not purchase more or less than $150,000 in coverage?
We ask these questions to give us a better idea of what ultimately matters to you. We’re not here to judge by asking these questions. We’re here simply to dig deeper, to better understand what you’re trying to accomplish, and in turn help you make the best decision possible for the amount of life insurance coverage you need.
Likewise, we believe here at Buy Life Insurance for Burial that it’s vital for us to understand your needs to make your life insurance a long term success. We want to make sure whatever you purchase is easily affordable. I learned this lesson early on in my life insurance career – no policy is worth an investment that can’t be kept over the length of the policy term or the length of your life.
There’s nothing more disappointing than learning that a client has had to drop coverage because she spent more than she could afford and now she has to start over and may not be able to qualify for coverage because her health has changed adversely.
These are the reasons why you should work with a broker that cares about what you can reasonably afford. At Buy Life Insurance for Burial we want the policies that we sell to work for your budget and meet your ultimate goals.
Factors that impact whether or not you’ll be approved for $150,000 in life insurance
Below are concerns you need to be thinking about when you apply for life insurance. These factors will most likely appear on your application.
Naturally when applying for life insurance by definition we’re insuring your life and your health has a lot to do with the quality of your life. Companies generally look at the past 5 to 10 years of health history, though that will also depend on the type of coverage you are applying for.
Questions will investigate if you have:
- Lung problems
- History of cancer
- Liver or kidney problems
- Heart disease
- Circulatory disease
- Neurological diseases
- Mental disorders
They may also ask:
- Are you taking medications?
- Have you been hospitalized?
- Have you had any recent surgeries?
This is not a complete list, but it is designed to give you an idea of what to expect. Of course, you will want to ensure you answer these questions truthfully, transparently and comprehensively. The more information available to an underwriter, the more confident they will be in issuing a quality quote for you.
If you smoke, you will have to mention that you smoke. There are circumstances where if you smoke cigars, chew tobacco or smoke a pipe, you may be eligible for better rates than if you smoke cigarettes.
Make sure to be fully transparent when informing your life insurance agent of your smoking status in order to receive the most accurate quote.
Believe it or not, what you do in your career may have an impact on your eligibility for life insurance. There are some risky jobs out there and some of those risky jobs can cause a life insurance company to charge extra fees for your coverage. While this is rare, it’s something to bring up and to be aware of when talking with your life insurance agent.
If you’re retired, don’t worry, retirement isn’t risky and we won’t charge you a higher fee because of it.
On some level credit does have an impact on your eligibility, especially with more advanced and fully underwritten products. However, if you’re looking at simplified product or a non-medical application, which we’ll talk more about later, credit does not have any bearing whatsoever.
Age, just like health, has an immediate impact on your eligibility for life insurance. So be prepared to be asked about your age with the understanding that companies rate prices based on age differently. Our goal at Buy Life Insurance for Burial is to find the product that’s going to give you the best price for your age.
Height and weight
Height and weight does have an impact on your eligibility for insurance. Luckily by working with a multitude of life insurance companies, if you think your weight will be a concern, we have access to different companies that have different levels of flexibility to enable us to qualify you for life insurance.
So if you are overweight, don’t throw the baby out with the bathwater. It’s very likely that we’ll still be able to qualify you for some kind of quality life insurance coverage despite a weight problem.
Sometimes hobbies, like professions, can have an impact on your life insurance coverage. If you engage in risky hobby behavior such as skydiving, base jumping, or sometimes certain mixed martial arts for example, you may see what’s called a flat extra surcharge.
This surcharge isn’t common, but it’s important to make sure when you talk to your broker that you identify any risky hobbies or endeavors. This will allow them to make sure that those risks are accounted for.
Exam or no exam
This is one of the biggest factors to consider when approaching an insurance application, though not necessarily something that will determine your eligibility. Whether or not you decide to have an exam will affect the price you pay for insurance. My recommendation is when you’re looking for life insurance coverage to make sure that you take an exam.
If you’re in good shape and you’re qualifying for a substantial amount, typically $500,000 or less, you may find an exam is necessary. This often depends on age. If you are younger and looking for coverage around $150,000 or less, you may not be required to take an exam.
A lot of life insurance companies have moved away from requiring exams at certain ages or amounts of coverage such as $150,000. They rely simply on your established medical history to determine insurability.
However, if an exam is made available, it is in many cases a good idea to take the exam in order to gain an overall better price for the type of coverage you’re applying for.
I hope you have found this article interesting and helpful. If you have any remaining questions or would like to get a personalized quote, its free. Simply call (888) 626-0439 or send us a message and we will be happy to respond to your request within 24 business hours. Thanks for stopping by.