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In Today’s Article, We’ll Address How To Qualify For A $300,000 Life Insurance Program
We will also answer the most common questions that people have when they search for the right type of this policy to match their goals.
You are most likely reading this because you have determined that $300,000 in life insurance will help accomplish your particular life insurance goals. Some examples could be:
- Covering final expenses
- Replacing income
- Paying off debts if you pass away earlier than expected
Of course, you may have some preexisting questions coming into this article. You want to make sure that whatever choice you or your loved ones ultimately make is the best choice for your life insurance needs.
If any of these describe the circumstances you’re in, then this article will do a great job helping you choose the best $300,000 life insurance product suited to your needs. Your available options will be determined by different elements, such as your health and your age.
The Topics We’ll Discuss Are As Follows:
- What type of person gets a $300,000 life insurance program?
- What reasons do people have to buy a $300,000 life insurance program?
- What types of programs are available?
- What strategies exist to get the best package deal?
- What factors affect insurability for those qualifying for a $300,000 life insurance program?
This article aims to help you figure out the best overall deal regarding $300,000 life insurance programs and how to go about accomplishing your goals.
Who gets a $300,000 life insurance program?
There are different life events and circumstances that determine why individuals decide to purchase a $300,000 life insurance program. You may find many similarities in your own life. Despite people’s unique situations and identities, people generally share the same or kindred circumstances that motivate them to ultimately decide they need a life insurance policy worth $300,000.
If you’re currently unmarried and without children, you’ve maybe considered buying a life insurance product because you not only need life insurance right now, but also in the future for when you do have a family.
A $300,000 life insurance product will definitely help cover final expenses and pay off any extra debts that you have. You can also then leave a lump sum benefit to the goodwill of your family to help them out in times of need.
If you are single but have children, this is even more reason to own life insurance today. $300,000 can help take care of your kids’ college expenses and replace income, especially when a beneficiary is a child. If you pay child support, you can replace that if you were to pass away. All this benefits your children and future family members.
Most people who are single are younger by default. Thus, prices for $300,000 in life insurance are lower than if you waited until a later age. They are usually easier to qualify for because younger people generally have fewer health issues.
If you are married, congratulations! As I’m sure you understand, it’s important that you and your spouse rely on each other to live, and the unfortunate reality is that no married couple wants to face life without the other.
You may face a situation in which either yourself or your spouse passes away. The thought is devastating, and you may be at risk of being in a financial situation that could adversely affect you forever. But it doesn’t necessarily need to be this way. This is where a $300,000 life insurance program comes in.
Most married people purchase life insurance because they want to replace their incomes in a way that protects their spouse, pay off their mortgage, and take care of other expenses.
Consider buying a $300,000 life insurance plan if you’re recently married, especially if you have children too. That $300,000 plan will go along way.
If you are an up-and-coming professional, congratulations as well! If you are advancing, earning promotions, and increasing your income, chances are you’re going to need to consider buying additional life insurance to offset any changes in lifestyle and take care of any new obligations.
Higher salaries often lead to more spending and potentially more expensive obligations. New needs and wants have to be met and maintained, and life insurance can help cover the difference.
Many people who are mid-career need supplementary life insurance, and they smartly purchase it earlier in life. If you are considering a program, we recommend 10x your annual income as a starting point. This will cover many of the potential obligations you will experience when you pass away at or near retirement.
Now more than ever are people working closer to the typical retirement age, while also carrying obligations such as mortgages, pensions, and transfer concerns with their spouse that they otherwise wouldn’t have had years earlier.
Knowing this, life insurance may be a good purchase at this point in your life. $300,000 in coverage can cover many of these obligations and additional concerns that are pertinent to older age.
What are the reasons to buy this particular program?
When researching these plans, you need to be firm in your convictions, making sure that the amount of coverage you ultimately decide upon accurately accomplishes the goals that you set.
Here are 6 reasons why people decide to purchase $300,000 in life insurance:
1. Ensure your future income
This by far is the most important reason. You can somewhat predict what your future will hold as far as income. Earning opportunities generally improve as you get older, and you can measure how to manage your life with your particular salary.
However, if you die earlier than expected, your family, spouse, and/or children may need income to help with their living expenses. If you pass away or are in a position where you don’t have the ability to afford or maintain that lifestyle, this can negatively affect your loved ones.
This is why it is crucial to purchase the $300,000 life insurance to protect your level of income. It will maintain yours and your family’s lifestyle, and it will make the transitionary period from your death to a life without you somewhat easier. Buying $300,000 life insurance can help cover and replace income that you otherwise would earn/would have earned.
2. Cover a mortgage
Often when people purchase a new home, they get a mortgage. If you were to die before paying off the mortgage, your family may lose the home or have to sell for a discount to get out from under the debt. This can have disastrous effects on your widow/widower and/or your children.
A $300,000 plan can cover many mortgages. You may need more coverage, you may need less, but a great strategy is to buy one of these plans and leave it to beneficiaries such as your spouse. And from there, they can decide how they want to pay the mortgage and protect against losing the home you both worked so hard to build.
Perhaps you want to buy a plan to leave a legacy to the people you love. Maybe you want to leave money behind to help others get started on their lives. Or perhaps you want to leave money to your church or favorite charity.
Life insurance can easily help accomplish this. You simply name the beneficiary of your choice.
4. Supplemental Life Insurance Retirement Plan
Some life insurance plans can also be designed to structure a portion of your retirement funds to generate tax advantaged income later in life. These are what we call supplemental life insurance retirement plans.
They usually work using a whole life product or an index universal life product to generate cash value amounts over a longer period of time that can supplement your retirement income.
With tax advantaged cash payouts, $300,000 life insurance can also cover final expenses. You can provide a significant amount of death benefit to cover obligations for replacing your income. This provides your surviving retired spouse additional income.
It makes a great way to take care of the uncertain expenses that may otherwise cause difficulties later in life.
$300,000 in life insurance can provide great financial coverage to take care of concerns many business owners have. Most common are the loss of a partner, key player, or insurance against a loan that is taken out.
If you’re a small business owner, entrepreneur, or work with buy/sell agreements, it’s important that if you have a partner or partners that you have legal documentation. This will stipulate the shares of ownership, and will serve as a guide in the case of a loss of a key partner in your business.
We recommend funding that legal arrangement with a life insurance product instead of bank financing or arrangements via the corporation, which may be impossible to do at future circumstances.
There’s a right way to create a market to sell a partner’s portion of the business in case they pass away.
You simply take out a life insurance product on each of the partners associated with you. The corporation pays the bill, the insured is each partner, and the beneficiary is the partners’ heirs.
The agreed upon shares are disseminated to the surviving owner or owners.
We recommend permanent life insurance for this situation because if you purchase a term life insurance, it only covers for these concerns on a temporary basis. With reality of business, it will be an ongoing concern potentially stretching beyond a set period of time.
It’s important to have life insurance in place that will be permanent and always provide the finances necessary to buy out shares in case the business goes under or a partner dies.
Key player coverage is where you may be in a business where you do not have partners, but you do have important people that play a pivotal role in success of your organization.
Imagine life in your business without those people. How would it affect your business? Most likely negatively, and the key player may experience financial losses.
This money is used to offset the loss of that key person as well as to help you get financial assistance while hiring a replacement.
There are also low loan indemnifications. If you’re considering an expansion in your business and want to borrow money from a bank, they may require or request that you pick up life insurance to cover the difference if you happen to die earlier than the payout is made.
At the end of the day, life insurance is an act of love. People buy it to protect people they love and businesses that they’ve worked so hard to keep. Life insurance takes care of them and relieves the burden that they may experience without that life insurance being in place.
What types of life insurance are available for $300,000 in coverage?
There are four different types of life insurance products that are available to you. You, the consumer, have different goals and obligations, and some products will do a better job of matching and covering them than others.
We hope to help you better understand the types of life insurance coverage available so you can identify which type is best for you.
What are your particular financial and insurance concerns?
This is the most popular form available, generally in increments of 10, 20, and 30 year chunks at time. Term insurance offers the most coverage for the least amount.
The biggest downside is that you may outlive it and still have need for coverage. There is also the possibility where you may not be able to qualify if you reapply. Unfortunately, life insurance companies judge reapplications based on current health at the time of the application.
Also, term insurance does not match permanent obligations. If you need money, no matter what length of time in the future, a term insurance product doesn’t do the best job providing coverage.
However, many people reading this have temporary obligation concerns such as replacing income. This connects to the earlier example of the possibility of dying before retirement and needing to cover a mortgage. For that, term insurance makes sense.
Below, you’ll see rates for term insurance. You’ll see $300,000 plans for males and females, and for smokers and nonsmokers from a highly ranked insurance company. These will be at preferred plus rates for different age ranges.
10-Year Term Life Insurance, Best Price On Quoter
Whole life insurance
This is designed to last your entire life. Premiums remain level if you pay throughout your life until you die. You can also do something that’s called “paid up.” This is when a whole life insurance plan stops at a certain point in the future, but you have paid up the plan and don’t have to pay any more to keep it.
Most commonly, people buy whole life insurance when they have permanent obligations. These include final expenses like burial and cremation, or business continuity coverage.
The downside to whole life insurance is that while there are guarantees in place to always have coverage, the rates to pay for those are five to ten times higher than those of term insurance.
It’s unlikely that you’ll purchase whole life insurance unless you currently need permanent protection and have a specific reason to purchase it.
Whole Life Insurance Rates, Life Pay
Universal life insurance plans
These plans can be described as a hybrid between term life and whole life insurance. They are custom tailored to where you can adjust the length of time from the outset and how you want it to exist in terms of temporary vs. permanent.
You also have some control over the pricing element. It can be adjusted upwards and downwards to allow for flexibility for the insured client.
The downside is that sometimes they’re hastily and ineptly designed, and can be canceled much earlier than expected. Many people in their sixties and seventies have universal plans for a long time that end up breaking and not working because they were inadequately designed from the start.
Universal life plans aren’t usually the top choice, the exception being for people who are looking for an index universal life insurance product. These are designed for safe money retirement strategies, or in some cases, a business continuity plan.
The key is to make sure that they’re designed correctly and funded the right way. They also need to be managed on a regular basis to make sure that they’re being handled properly.
Universal Life Rates, UL to 100
Accidental life insurance
Accidental life insurance is a very affordable way to own life insurance coverage. However, the downsides are significant. You only have one payout. If you die from an accident, you literally have to die within a short period of time from the accident to have the payout.
If it’s outside of the time range in which it is required for you to die, the accidental plan will not pay out. An accidental plan is as good as a supplementary policy to a either a term or universal life plan. It fulfills the need for additional coverage for potential accidents, but by itself, it is not comprehensive coverage.
Below, you’ll see charts for $300,000 accidental life insurance company coverage.
Accidental Life Insurance Rates
What are my available strategies to get the best $300,000 life insurance package?
There are three particular ideas that create the best overall ability to get and qualify for the lowest price point and highest quality $300,000 life insurance program.
1. Define your goals
This is the most vital element of making the decision to purchase $300,000 life insurance: you must undergo deep and thorough analysis to understand what your goals are. And so far, you’ve learned a great deal about life insurance programs themselves, the what, how, and why.
You understand the reasons why people buy $300,000 in life insurance.
You know what $300,000 life insurance is designed to cover, what types of products are available, and the circumstances in which they would be useful to purchase.
You have a good overview of what those situations are and with all that, hopefully, you feel confident in how to understand what your goals are with life insurance. Then, you can select the type of plan that will best match those goals.
Of course, no matter how much research is done, this process may be still confusing to some people, and this is why we at Buy Life Insurance for Burial is dedicated to servicing you and helping you better clarify and solidify what those goals are for your life insurance.
2. Define your budget
This is another element of your job to ultimately clarify your goals. You need to make sure that a $300,000 plan can fit your budget, and see if there are some places where we can alter the kind of coverage and budget to become more affordable.
You don’t want to spend too much and be put in a position where you may not be able to keep the life insurance that you need. Don’t risk buying coverage that’s too expensive just to drop it in the next year.
We strongly advise working with a broker. It is the best way to define your goals and budget to optimize the amount of coverage for your $300,000 program. And you get to keep your price and premium as low as possible. A broker gives you the best chances at securing the best package value in the vast majority of circumstances when dealing with a life insurance company.
3. Find the best broker
A broker is somebody who operates with a variety of different life insurance companies to shop their clients’ cases among the most highly rated and competitively priced plans. Their ultimate goal is to get you the overall best package deal.
If you work with a non broker–someone who only represents one company–your options are limited. You may find that the prices are higher than you expected, especially if you compare it to a broker’s options.
This is why we at Buy Life Insurance for Burial do offer life insurance coverage on a broker basis. We want to get our clients the best deal possible and make them feel good about their purchase decision.
What factors affect insurability?
Let’s talk about the application process for a $300,000 life insurance policy and what you can expect to experience. Your first concern is your health. As you can imagine, your health will be at the forefront of your application when you begin working with a company. They will want to know everything about your health.
Here’s a short list that includes the most common conditions that’ll be asked on your life insurance application:
- Lung disease
- Liver disease
- Kidney disease
- Harder circulatory disease
- Neurological diseases
- Mental health diseases
- Recent surgeries
There may be followup questions based on how you answer the above. It’s important that you’re completely transparent in the application process.
Any withholding of information can result in your life insurance policy getting declined, rated up, or possible nonpayment if you happen to die while you are insured. Full transparency is crucial. The more information that life insurance companies have, the better they’ll be able to give you better coverage.
Age also plays a dominant role in the pricing element of eligibility for a $300,000 life insurance plan. The younger you are, the less you’ll pay. The older you are, the more you’ll pay.
But we at Buy Life Insurance for Burial are designed, as a brokerage, to shop your case. We look for companies that will offer the most advantageous prices based on your age, not including smoking.
Smoking has a direct impact on your eligibility for life insurance. It’s rare that smoking alone will cause a decline, but it will add a surcharge to your rate that the insurance company determined. So you may pay 25 to 50 percent higher in some circumstances, depending on your age and smoking.
Your height and weight may also have an impact on your eligibility for life insurance. Most companies are flexible with offering life insurance coverage for those people who have height and weight issues. The rating will depend on the ratio between your height and weight. It’s kind of a moving target and depends on the companies.
We here at Buy Life Insurance for Burial shop all the major companies, and if weight is a concern, we will work with companies that are more flexible on height and weight issues.
Despite what you may think, your profession actually has an impact on your eligibility. If you work in a high risk profession such as coal mining or commercial fishing, you may see what is called a flat rate extra added to your policy. This is designed to tack on a surcharge fee to accommodate the riskiness of your profession.
As your agent, we figure out which life insurance companies will offer the best deals and be more accommodating to your profession. Our goal is to get you the best package, no matter what your profession. This can also include hobbies. High risk activities such as scuba diving, skydiving, and mountaineering can have an impact on your eligibility for life insurance.
Sometimes you may be declined. Other times you may have to pay a higher premium, exam or no exam. Sometimes, the exam is optional for $300,000 life insurance coverage. The younger you are, the less likely it is you’ll have to take an exam to qualify for a decent price for life insurance.
As time progresses, the need for an exam lessens. This has decreased because life insurance companies have been more competitive, especially in the $500,000 or less range. You may find that not taking an exam will yield good rates. Taking an exam may not give you that much of an advantage, and not taking an exam is more convenient.
You get approval faster, and you may find that ultimately it’s a better deal anyway. However, as you get older, especially in your fifties and sixties, the likelihood of taking the exam increases.
Companies want to make sure that before they insure you, you represent a risk that they’re comfortable insuring. Expect to take an exam if you’re approaching your senior years when you apply for $300,000 in life insurance coverage.