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In This Article I’m Going To Talk About The Different Types Of Life Insurance Plans Available That Offer $200,000 In Coverage
Most likely you are reading this article today because you’re considering $200,000 in life insurance coverage. Whether you are starting out with a brand new policy or adding supplemental coverage on top of what you already have, you have decided $200,000 in coverage will meet your goals.
However you probably want to learn as much as you can about the options available to you before you purchase $200,000 in coverage. If this described your circumstance, you’ve come to the right article. My goal is to give you as much information as I can to empower you to know which $200,000 life insurance plan is best suited for your goals while also giving you strategies to get the best priced package.
NOTE: Would you prefer me to present this information to you in video format? Watch the video below for the complete presentation on $200,000 Life Insurance Review. Enjoy!
Specifically We’re Going To Talk About:
- The Kind Of Person Who Purchases $200,000 In Life Insurance Coverage
- Top 5 FAQ For People Buying $200,000 In Life Insurance
- Case Studies
- Reasons For Purchasing $200,000 In Life Insurance
- Stories From The Field
- The Types Of Life Insurance Programs Available
- Strategies To Get The Best $200,000 Package To Optimize Your Coverage
- Factors That Affect Your Elegibility For A $200,000 Life Insurance Plan
- Exam Or No Exam
Who purchases a $200,000 life insurance plan?
There are many people across different age ranges and life events that purchase $200,000 in life insurance coverage. At Buy Life Insurance for Burial we encounter all sorts of people in all walks of life. I think it’s important in this section to explore the reasons and life events that cause people to decide to purchase a $200,000 life insurance plan.
The reason I think this is important to convey is that you need to see yourself in these particular circumstances and know many people fit the same mold. This will give you confidence in knowing purchasing a $200,000 life insurance plan is the right decision for you.
Single, never married; single, divorced with kids
One reason that people purchased $200,000 in life insurance is because they are currently single but may face a future in which they will need the $200,000 in coverage. Let me give you a couple of examples. Perhaps you are a young man or woman who is currently single, but one day you hope to get married and have a family.
Under these circumstances it may be a good idea to purchase life insurance for $200,000 of coverage. Here’s why.
Getting life insurance while you’re young typically costs much less than if you wait until you are older and at a later point in life.
If you lock in a lower rate today you take care of getting coverage, which you’ll probably end up doing anyway once you do marry and have children.
If you’re divorced and have children, $200,000 is a great way to provide some kind of life insurance benefit for your loved ones and give them the protection they deserve if something happens to you.
This is especially true if you pay child support. If you pass away, your children will no longer receive that benefit. Also, if you remarry and eventually have more kids, purchasing life insurance at $200,000 gives you plenty of coverage to ensure your family is provided for.
Many people buy $200,000 in coverage when they are in the midst of building their career.
If you are experiencing promotions at work that advance your income, your lifestyle and standard of living tend to increase as well, as does your obligations.
Many times people who experience an income increase may also increase their debt obligations, especially when it comes to purchasing a new house or having a larger mortgage.
If you are in this situation, purchasing a $200,000 life insurance plan would make perfect sense, especially if you’ve already got existing coverage and need the additional life insurance coverage in place to cover against these types of financial obligations.
I encountered many people that purchased $200,000 in life insurance that are in their late fifties to sixties, who may be retired or close to retired, but still have some sort of financial obligations. Most commonly people at this stage of life are looking for mortgage protection programs or pension replacement plans.
Buy Life Insurance for Burial is dedicated to helping clients meet their life insurance goals with affordable, first day coverage that provides peace of mind to you and your loved ones.
Let us get you started with a free quote. Simply call 888 626-0439. It takes 10 minutes or less and you are under no obligation to purchase anything from us.
You can also get in touch by sending us a message using the box to the left and bottom of the screen. Tell us the best way to contact you and we will be in touch in 24 business hours with a quote.
Top 5 FAQ For People Buying $200,000 In Life Insurance
1.Can I qualify for $200,000 in coverage?
Coverage amounts depend on your health, age, and other factors on your application. Generally the younger and healthier you are, the more coverage you will be likely to qualify for. However if you are just looking for just enough coverage to cover burial or cremation costs, you’ll find more flexibility for smaller amounts of coverage.
2.Why is $200,000 dollars in coverage a good amount?
Depending on what your personal goals are, this amount may or may not meet your needs. For final expenses, $25,000 or less is a good place to start. For income replacement we recommend 10 times your annual income to start. Ultimately the amount of coverage you get comes down to your personal goals in combination with your budget.
3. What if I need more coverage?
The most important thing is to get some kind of coverage in place. It might not be exactly what you want it to be in the beginning, but you can always add on to your coverage as time passes.
4.What type of life insurance is best to buy?
Again, your goals will determine what type of insurance you get. If you have temporary obligations, then term insurance might be the best option.
For longer commitments or financial obligations that will not go away, like final expenses, whole or universal life insurance are best.
5.No other options available
If you find yourself up against the wall when it comes to finding life insurance you can qualify for, Guaranteed Acceptance Life Insurance is great when there are no other options available. This type of application does not require an exam and provides a different kind of application than other plans to ensure eligibility for those with chronic or serious health issues.
Do I need to take an exam?
Promotion at Work and a History of Depression
A client of mine got in touch because she had just received a big promotion at work. Along with her increase in income she realized she also needed to increase her life insurance coverage to adequately protect her husband and children if she passed away unexpectedly.
This client opened up to me about her fears of being declined due to a history of mental health problems, specifically depression. She was taking medication to treat her depression and feared this would reflect poorly on her application.
The good news is that she came to us. Because she decided to work with a broker we were able to get her first day full coverage at a competitive price.
While no one can guarantee that you will be eligible for coverage, you have a much better chance of qualifying if you work with a broker like us at Buy Life Insurance for Burial. We are able to look at a number of providers to meet your specific circumstances to ensure you have the best chances of getting coverage in place.
Recently Married with a Weight Concern
A client reached out to me because they had just recently got married. Both he and his wife realized they were now financially responsible for each other and felt life insurance would be a good way to cover to ensure final expenses were taken care of.
The only concern was that this client was overweight. He worried, though he was in good health otherwise, that this would have an impact on him qualifying for $200,000 in coverage.
The good news is that we were able to look at a number of options and offer this client a competitively priced policy to meet his $200,000 coverage goal. He was very pleased with the result and felt relieved that he was able to get quality, first day coverage.
Reasons why people purchase $200,000 in life insurance
Now that you understand the backgrounds of people who are most commonly purchasing $200,000 in life insurance, I want to cover the many reasons why a $200,000 life insurance plan is often chosen over other plans.
Let’s say you’re somebody in your fifties or sixties. You’re concerned about taking care of final expenses as it relates to burial costs, cremation costs, or any sort of remaining debts and obligations. A $200,000 policy may be sufficient not only to cover final expenses, but to also cover debt and have enough left over to leave a legacy behind to somebody you love as well.
Cover your mortgage
You may have just recently purchased a new home and along with that new purchase comes a new mortgage debt obligation. This is a debt that will hang over your head for many years to come. Consider what might happen if you pass away. With the loss of your income, there may be the chance that your surviving spouse and family could lose your home.
A $200,000 life insurance plan can cover many mortgages, partially, if not completely, by providing a cash injection for your family to either pay off the mortgage or provide enough time to make payments on the mortgage as the house is furnished and ready to be sold so that the equity can be saved.
Without this kind of coverage, there’s a high risk that your family could lose your home in a foreclosure or have to sell at a discount, which typically means a fire sale where you may lose a substantial amount of equity to get rid of the home.
Leave money to a charity or charitable cause
Many people purchased a $200,000 life insurance program to leave a substantial sum of money behind to a church they’ve been a member of for many years or to a charity that they’ve been involved with or believe in. It’s easy to set up a life insurance plan that benefits a charitable organization.
Simply take out a life insurance plan that fits your goals and name your organization of choice as the beneficiary. There’s no extra paperwork involved nor any additional requirements. When you pass away, that death benefit is paid to the organization you’ve chosen.
Replace your income
Many people purchase a $200,000 life insurance plan because they’re worried that their surviving family members will have their lifestyle economically change for the worse once they are gone. A $200,000 life insurance plan is a suitable option to replace some of that lost income for many years to come.
So if you’re looking to replace lost income that you otherwise would have earned for your family, a $200,000 life insurance plan is the perfect place to start protecting your family from your economic loss.
You probably put aside money every month toward some sort of retirement, whether its a 401k or company sponsored pension plan. If you die, many times pension and retirement plan accrual will be lost. You can insure against that by taking a $200,000 life insurance plan out to act as the fund.
Instead of using a life insurance plan to pay off any final expenses or replaced your income, you can actually purchase life insurance as a vehicle in which to prepare for retirement planning. These plans are what’s called supplemental life insurance retirement plans. They are designed to supplement your otherwise normal retirement plan contributions, but do so in a more conservative way.
Most people purchase what’s called whole life insurance or index universal life insurance, which gives you the opportunity to develop a tax free way of earning a retirement income without the inherent risk of investing in the stock market.
If you own a small business or you are an entrepreneur and you’re in partnership with somebody, its important to consider buying life insurance to buy out their shares of the organization if they pass away. The problem with a partnership is that if a partner dies, the heirs of that partner retain control of the business. All sorts of things can happen in this type of situation that are out of line with the original goals of the business.
What most families want is a cash out opportunity to take what the business is worth in order to survive and continue on in their lives without the headaches involved in trying to manage a business of which they probably don’t understand or want any part of.
Setting up a business continuity arrangement plan is very simple. You simply self-insure both partners, ensure they name their family as the recipient of the life insurance plan and the corporation pays the premiums. In addition, you draft up a legal document that stipulates the buy out provisions stating that upon the death of the partner, the life insurance plan funds the buyout provisions for whatever the company is worth and provides the heir a lump sum payment to satisfy the buyout provision.
This allows the business to continue and retain its value and usually is a much better solution than depending on bank financing because many times banks become worried about loaning money, especially after the immediate loss of the key critical component to the business.
Cover key people in your organization
If you don’t have a partnership, what many business owners do have are key people who are critical to the development and continuity of their business. These people can be sales managers or operation managers, and without their impact on the business, the business can suffer dramatically.
Think about what would happen if you had to replace a key person in your organization. You probably would lose money for a period of time. It would probably take you away from your job and it would cause the potential risk of losing out on income earning opportunities for your business. This is where life insurance is very important.
How it works is simple. You insure the key person you have in mind. The corporation would pay the premium and the corporation would be the beneficiary on the plan if that person were to pass away. The concept of covering a key individual is to provide a lump sum cash payout to the corporation in order to finance the losses that could incur as well as to pay initially for the time missed to find and replace that key person.
At the end of the day, all of these reasons mentioned above are great reasons to purchase a $200,000 life insurance plan, but all of them have the cornerstone of love. What I mean by this is that it’s very hard for us to pay for something of which we don’t see the immediate benefit. We can buy a car and drive it or buy a home and immediately be gratified by the benefit of having it.
Whereas with life insurance, you really don’t see the benefit of it until you die or pass away. In order to buy life insurance, we have to love something substantially such as our family, our spouses, our business and our clients. So a $200,000 life insurance plan, if it’s going to be purchased, should be purchased because you are absolutely passionate about somebody in your life and you do not want them to suffer the consequences of your death by carrying a financial burden once you are gone.
Stories from the Field
Early on in my career I spoke with a couple in their early 60’s. They were both disabled and retired.
The husband had coverage, but up until that point the wife did not have life insurance and the husband realized as they were getting older it was important to get her adequate coverage.
His wife was in fairly good and qualified for first day full coverage with onen of our providers. That was the last I heard from this client until three years later.
He called to say his wife had passed away after a long struggle with cancer. Though we typically have to wait for a death certificate to process a claim, the funeral home agreed to go ahead with the burial and wait for the funds to be released.
This allowed my client to have peace of mind in knowing the final expenses were taken care of and he didn’t have to come out of pocket to pay for the service and burial.
What stuck in my memory about this gentleman was him thanking me for my help. “I really appreciate everything that you did,” he told me.
I realized how important his wife’s life insurance policy really was. It gave him the ability to grieve without worrying about where the money to pay the funeral director was going to come from.
And I understood how everyone can enjoy the same benefit, relieving financial burdens from the ones they love. Life insurance is a truly unique product that can make a huge difference in the lives of those you love.
If you liked what you’ve read so far and are curious about what your premium might be, feel free to get in touch. Give us a call at 888 626-0439 or send us a message to receive a no obligation quote.
You’ll speak to a qualified specialist who can assist you with any questions you might have and give you a clearer idea of what you may qualify for.
Four types of life insurance products that offer $200,000 in coverage
In this section, I’m going to specifically talk about the most common types of $200,000 life insurance plans and give you the pros, drawbacks, and sample rates for each. Along with that, I’m going to tie in the reasons why each types of plan would be appropriate so you can better understand which type of product might best suit you and the goals that you have for your life insurance coverage.
Term Life Insurance
Term Life Insurance is the most popular form of life insurance. Simply put, it’s the most economical way to own the most amount of coverage. It often equates to a small fraction of what you can pay for other plans such as whole life or universal life insurance.
Many times people purchase term insurance because by design term insurance is temporary coverage. Term insurance usually lasts anywhere from 5 to 30 years and provides level premiums that never increase during that period of time. Term insurance allows you to cover an obligation that is temporary in nature.
Most people buy term insurance when they want to replace the loss of their income if they die earlier than expected, or to cover obligations such as business loans or mortgages. The reason why term insurance is a good fit for these obligations is because they’re inherently temporary in nature.
The hope is that ultimately one day you won’t have loans anymore or your loans will be paid off. Later in life, when you reach retirement, most likely you’ll have your mortgage paid off and income won’t be a concern because you will have saved long enough to prepare for a retirement that is properly funded. So term insurance does a good job of covering temporary types of concerns.
The drawback of term insurance is its limited coverage periods, especially if you have a permanent problem you are looking to cover. Though it is a cheaper option you run the risk of not having the term insurance there when you need it most. For example, if your goal is to replace your pension plan because if you pass away your pension doesn’t transfer to your surviving spouse, then term insurance is not the best course. Although it may be cheaper, you may outlive the term insurance product.
Consider wisely the type of problem that you’re insuring against and purchase the right type of $200,000 life insurance plan that will satisfy that goal.
See below for samples of different $200,000 term insurance coverage plan rates. These are sample rates only, on a preferred plus basis and require qualification and in some cases an exam.
10-Year Term Life Insurance, Best Price On Quoter
Whole Life Insurance
Unlike term life insurance, whole life insurance is the original permanent life insurance product. Whole life insurance is designed never to cancel due to age or health. The rates usually remained level throughout life, or if you use some sort of paid up type of policy, you can reach a point where payments end.
The advantages of whole life insurance is that it gives you permanent protection to solve permanent product problems. The most common permanent problems that people seek to solve include covering final expenses, covering pension plans that go away when a person passes away or if there’s a necessity to fund a buy, sell agreement.
A permanent plan usually makes perfect sense. The problem with whole life insurance programs is they usually cost five to 10 times as much as the corresponding amount of coverage for a term life insurance product. Often whole insurance premiums are so high that people opt for a different type of plan.
Below, you’ll see $200,000 in life insurance coverage rates for different amounts of premiums at different ages. Again, these are subject to an exam and application and should only be used as an example. You will have to apply to see if you qualify for the same rates.
Whole Life Insurance Rates, Life Pay
Universal Life Insurance
Universal life insurance is what I would describe as a hybrid plan that draws from both term insurance as well as whole life insurance. With universal life insurance, you can design a plan to be permanent or it can last a certain period of time like term insurance, but perhaps a little bit longer.
Universal life plans also have the ability to have adjustable premiums, which means you can pay more or less if you run into a circumstance where you can’t afford to continually pay the premiums.
The pros of a universal life plans include:
- They allow for a lot of flexibility and a customized design
- They can satisfy some of the same objectives that whole life can satisfy, such as supplemental life insurance, covering for a buy, sell arrangement, and acting as a pension replacement product.
The cons of a universal life plan are:
- In order to effectively use universal life plans, you have to have an agent review the policy on an annual basis to make sure that all the factors involved and the proper pricing and management of the universal life plan are satisfied. Otherwise, you may face the risk and problems that many people in their senior years face, which is an mismanaged universal life plan that eventually collapses or lapses because there wasn’t an adequate premium paid in.
Universal Life Rates, UL to 100
Accidental Life Insurance coverage
The last product we’re gonna look at is accidental life insurance coverage, which by design only pays out if an accidental death occurs.
The pros of these types of plans are:
- They’re super cheap.
- They usually don’t require that you answer a lot of health history questions.
- They are a great benefit for people in more risky situations where the chance of accidental death is higher.
The major drawback to an accidental death plan is that…
- They don’t cover for natural death, which is the most common way in which people of all ages die.
Accidental Life Insurance Rates
Strategies for purchasing the best $200,000 life insurance program
Below you will find three recommendations that I offer to every client I work with at Buy Life Insurance for Burial in order to find the best overall package deal.
Work with a broker
If you’re looking for $200,000 in life insurance coverage it is really important to work with a broker. Unlike a life insurance agent that works with a singular company, a broker has the opportunity and ability to shop around with a variety of different life insurance carriers so that they can help you find the best overall combination of price and value for your $200,000 life insurance plan.
Many companies have limited underwriting as it relates to your health, age, height, and weight and other determining factors. You may find if you apply with only one insurance company that you may not get the best overall deal.
This is certainly true if you do have anything less than pristine health. Plus many insurance companies price your coverage differently at different ages, so this is one more reason to use a broker in your search for the best package deal to clearly define your life insurance goals.
Make sure $200,000 in life insurance is the best overall decision and coverage for your particular situation
The reason I mentioned earlier the different types of people that buy $200,000 in coverage and the different reasons why they decided to make this purchase is because ultimately you want to achieve your goal for insurance. The only way to make that happen is to analyze your situation, talk with a broker, and determine what is most appropriate.
However, you may find that you need less than $200,000, or perhaps more. Either way, you need to do the work necessary in establishing what your needs are and we at Buy Life Insurance for Burial can definitely help you with that.
Clearly define your budget
The other aspect to consider when choosing the best life insurance plan for $200,000 in coverage is to determine what you can afford. If you find that $200,000 in coverage fits your budget, that’s great. You want to go with a plan that is going to give you the best overall package deal and ensure that your purchase decision will stick around for a long time.
However, if you find that $200,000 in life insurance coverage doesn’t fit the goal of the budget that you had in mind, please take my advice. Drop your amount of coverage and try to start with a smaller amount.
Something is better than nothing when it comes to life insurance because walking away and not getting any coverage is not solving your problems. You still have the problem. Many times people have to buy life insurance coverage piece by piece. Most likely over the years, your financial situation will improve. Your debt obligations will be paid down and you’ll be able to afford more coverage.
What factors affect your insureability for $200,000 in life insurance coverage?
In this section we’re going to cover the common reasons and underwriting questions that life insurance companies will have when they consider insuring you for $200,000 of coverage. Let’s break down each of these items so that you can know what to expect when you apply for a $200,000 life insurance plan.
Health is the biggest factor in determining your eligibility for life insurance coverage. The most common questions asked on an application regarding health include the following:
Do you have a history of…
- Lung disease such as emphysema
- Diabetes (type one or two?), are you insulin dependent, diabetic complications
- Liver problems such as hepatitis or cirrhosis
- Kidney problems such as kidney insufficiency or kidney dialysis
- Heart problems such as heart attack, stroke, stents, bypass, pacemakers, congestive heart failure
- Neurological problems such as Lupus, multiple sclerosis, Parkinson’s, Lou Gehrig’s disease
- Mental health issues such as depression, bipolar disorder, schizophrenia, Alzheimers, dementia
They will also want to know if you have…
- Recently been hospitalized
- Regularly take prescription medication
- As well as any other health related factors
These are the most common health factors that will be asked on your application, so be prepared to answer in depth, typically in relation to the entirety of your life, as to any of these questions that may pertain directly to you.
A life insurance application will always ask if you are a smoker. If you do smoke, generally, you’ll pay a surcharge to accommodate the difference. However, if it’s been a year or two or longer since you stopped smoking, you may find that you’re eligible for better prices.
And if you smoke cigars, cigarillos, a pipe, and in some cases chew tobacco you may also qualify for better prices than a cigarette smoker would encounter.
Type of work you do
Believe it or not, the type of work that you do may have an impact on your level of insurability. If you work in what is considered a fairly safe job, such as an administrative assistant in an office or a manager at a retail store, then you don’t have to worry about this factor. If, however, you work a high risk job such as commercial fishing, piloting, or anything like that, the inherent riskiness of your profession may lead to a higher price for your $200,000 life insurance coverage.
Sometimes the solution to this surcharge is to work with a broker and shop the carriers that may be more willing to provide you a better price without paying the extra surcharge.
Yes, your credit history does matter here to some extent on certain types of coverage. In some respects, we can get around this by using simplified issue life insurance products that don’t look at your credit, so don’t dismay if you have a less than stellar credit history. We have options at Buy Life Insurance for Burial to get you past that barrier.
Your age, much like your health, will have implications on your application process. The younger you are, the less you are likely to pay. The older, the more you will probably pay. You can ensure people up to the age of 90.
Height and weight
The ratio between your height and your weight may have an impact on your insureability. Many times people who do have weight problems will easily qualify for life insurance. However, as obesity and morbidity increases, qualifications to qualify for life insurance have also increased.
Keep in mind we do have access to life insurance carriers that are more flexible with weight and height issues, so even if you have doubts as to whether or not you will qualify, reach out to us at Buy Life Insurance for Burial and let us do your underwriting. You may be surprised to see what you are eligible for.
If you participate in high risk hobbies such as mixed martial arts, base jumping, scuba diving, recreational piloting, and other types of hobbies you may see the same outcome as you would with high risk professions.
This could add a surcharge to your life insurance premiums.
Exam or no exam
If you are an otherwise healthy person who’s looking for $200,000 life insurance coverage, my recommendation would be to have an exam, especially if you find after comparing prices that there is a substantial price difference between having the exam and not having it.
The reason it’s important to have an exam is because the up-to-date information collected from those exams will garner you much better prices than those who opt not to have the exam and take out coverage through what’s called a non-medical life insurance policy, which only looks at historical information and not current information.
I can tell you from personal experience when I purchased my life insurance plan, I saved over a thousand dollars a year on what I would otherwise get if I didn’t opt for the exam. So for me it was well worth the investment.
For the exam they will draw blood, take your vitals, and ask some basic health questions.
I certainly hope you enjoyed reading this article and found it helpful in your search for information. Most importantly I hope you take the next step to get life insurance in place.
To find out more about what your premium might look like, feel free to get in touch. You can call us direct at 888 626-0439 to talk to a friendly life insurance experts who can provide more information about what you might qualify for.
It takes less than 10 minutes and you are under no obligation.
You can also send us a message using the message option on the left-hand side or at the bottom of the screen. Let us know what you are looking for as well as the best way to contact you and we will follow up within the next 24 business hours.
Thanks for reading and we hope to speak with you about your insurance options.