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1/17/2018 0 Comments

AAA Insurance "Exclusive Members-Only Group Term Life Insurance" Review

If you are a AAA member, chances are you have received this “Exclusive Members Only Group Term Life Insurance” application & information packet in your mailbox— at least once, if not once a month.
 
Perhaps it met with a quick end in your recycling bin.  Or --if shopping for life insurance has been on your “TO DO” list—​ maybe it caught your eye and you kept it around to review later. 
 
As a AAA member myself, I have accumulated several copies of my own.  As an independent life insurance broker, I can offer a unique perspective regarding the offer itself, the eligibility details, and the corresponding policy premiums.

I would be happy to review the details with you over the phone: (888) 681-4952.  You can also ​run personalized life insurance quotes and compare top rated companies here.
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PROs & CONs of AAA's "Exclusive Members Only Group Term Life Insurance"

ADVANTAGES OF BUYING THIS POLICY

  • The application is easy to complete and a postage paid envelope is provided to mail it back.
  • Only have to answer “NO” on 3 health questions & have no red flags on other information you give AAA permission to obtain.
  • No medical exam or lab tests.
  • Quick approval.
  • As long as your surviving spouse is a AAA member when you die,  he or she will receive a free basic/classic lifetime AAA membership for life.

DISADVANTAGES OF BUYING THIS POLICY

  • Premiums increase every 5 years.  Other leading life insurance companies offer policies that will guarantee the premiums not to increase for 10, 15, 20, 25, & 30 years or even for the rest of your life.
  • Premiums are more expensive then a fully underwritten policies from other life insurance companies.  For example, a male age 40, excellent health, can get a fully underwritten, $100,000 10 year term policy from a leading life insurance company for $8.78/month x 12 months x 10 years = $1,053.60 total cost.  The AAA Exclusive Members Only Group Term Life Insurance is $18/month x 12 months x 5 years PLUS $27/month x 12 months x 5 years = $2,700.00 total cost.  The AAA Exclusive Members Only Group Term Life Insurance is $1,646.40 MORE EXPENSIVE in total cost.
  • Limited benefit amounts.  The AAA Exclusive Members Only Group Term Life Insurance only offers $50,000, $100,000, $200.000 or $300,000 of coverage.  There are no other options.  Other leading companies will customize the coverage amount to what ever you want or need and will not limit the amounts you can buy.
  • The AAA Exclusive Members Only Group Term Life Insurance expires at age 80.  This might be when you need it the most.  Other leading life insurance companies offer policies that expire at age 90, 95, 100, or even older!

Benefits of AAA's "Exclusive Members Only Group Term Life Insurance"

​INSURANCE GUARANTEES 
  • Guaranteed Renewal
Only you can discontinue this insurance once you are covered.  As long as the Group Master Policy stays in effect and the premiums are paid when due, you can never be singled out for cancellation no matter what happens to your health.  You can renew this coverage up to age 80, for as long as you choose, even if your health deteriorates.
  • Guaranteed Level Benefit
The benefit amount you choose will never go down, regardless of any change in your health.
  • Guaranteed Payment With A Covered Claim
Your beneficiaries will get the benefit amount you selected for a covered loss with no waiting periods or partial payments.  Once in effect, you are covered.
  • Guaranteed Spouse Eligibility
Your spouse, age 18-74, is guaranteed to be eligible to apply even if you don’t apply and even if they are not a AAA member.  The definition of spouse includes Registered Domestic Partner, Civil Union Partner, or party to a domestic partnership between two adults, as recognized by state law.
 
​"LIVING BENEFIT" 
Your AAA Exclusive Members Only Group Term Life Insurance allows you to collect benefits while you’re alive thru the “Accelerated Death Benefit”.  This means if you’re ever diagnosed with a terminal illness, and death is anticipated within 12 months or less, you can get up to half of your benefits early to help with expenses.
 
​CONVERSION PRIVILEGE 
At any time before you turn 65, you can convert your Exclusive Members Only Group Term Life Insurance coverage to a permanent life insurance policy from AAA.    Conversion is guaranteed regardless of your health at the time.

Cost of AAA's "Exclusive Members Only Group Term Life Insurance"

HOW MUCH ARE THE PREMIUMS? 

  • You must be a AAA member ages 18-74 to purchase.  The policy can be renewed until it expires at age 80.
  • There are 4 Benefit Amounts to choose from.  $50,000, $100,000, $200,000, & $300,000.
  • There are different monthly premiums for nicotine vs. non-nicotine users.
  • The premiums are banded into age brackets.   Ages 18 to 34 the premium stays the same.  At age 34 the premiums start to increase and will increase every 5 years until the policy expires at age 80.   Although you cannot be singled out for a rate increase, the premiums are NOT guaranteed.   Your premiums may change only if they are changed for all other insureds with the same age, gender, nicotine use, coverage amount, and year of issue.
  • Premiums payments can be made from a checking account or credit card.  A $3 charge will be added to your premium if you wish to receive a monthly bill.
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Applying for AAA's "Exclusive Members Only Group Term Life Insurance"

ONE-PAGE FIVE-STEP APPLICATION PROCESS

Step 1.  Member Information & Spouse Information – if applying.
  • Name
  • Home Address
  • Phone #
  • Email Address
  • Beneficiary Name
  • Beneficiary Relationship
  • Amount of Coverage Desired
  • In the last 12 months, have you used nicotine in any form?  Yes or NO
  • Gender
  • Date of Birth (Must be 18-74 to apply)
  • Height & Weight

​Step 2.  Provide Payment Method
  • Deduct payment from checking account each month.  Will need to provide account & routing number as well as a copy of a voided check.
OR
  • Charge payment to a credit/debit card each month.  Visa, MasterCard Discover and AmEx accepted. Need to provide card number, expiration date, and the name as it appears on the account or card.

​Step 3. Statement of Health
Each of the following questions are answered by checking the box yes or no.
  1. In the past 12 months, have you been admitted to a hospital or had diagnostic testing performed or recommended by a doctor for an diagnosed condition?
  2. In the past three years, have you been treated OR diagnosed by a doctor as having heart trouble, cancer, stroke, lung disease, liver disease, kidney disease, AIDS, lupus, diabetes treated with insulin, ALS, or dementia?
  3. In the past three years, have you been confined to a nursing home, or special treatment facility OR convicted of a felony or driving under the influence?

​Step 4. Other Insurance
Yes or No.  Is there insurance applied for intended to replace, discontinue, or change any existing insurance or annuity?
​
Step 5. Read, Sign, and Date
  • All answers in the application are, to the best of my knowledge and belief, true.  I understand the answers will be used to determine if coverage will be issued, and the application will be part of the Certificate of Insurance.
  • In accordance with its incontestability provision, if I misstate any of the information on this application, the Certificate my be voidable for 24 months from the effective date by AAA Life Insurance Company.
  • I authorize the Company to use the payment method I indicated on this application.  This authorization will remain in effect until I notify the Company in writing to cancel it.
  • Coverage will take effect on the Effective Date shown on the Certificate, provided the first premium has been paid and there has been no change in my health since the date of the application.  If my health changes prior to the Effective Date of the Certificate, I must promptly inform the Company in writing.
  • I authorize any licensed physician, medical  practitioner, hospital, clinic, pharmacy, pharmacy benefit manager or other medical relate facility, consumer reporting agency, insurance company, or other organization that has any records or knowledge of my medical or prescription history, credit attributes, public records, driving record, or social security number, to give any such information to the Company, its re-insurers or any entity retained by the Company to collect and transmit such information.
  • The company will not use or disclose medical information for any purpose other than stated above except as may be required or permitted by law.  Such medical information may be subject to re-disclosure and may no longer be protected by federal privacy regulation.
  • The authorization shall be valid for 24 months from the date signed.  I understand I or my representative have a right to a copy of this authorization.
  • I may revoke this authorization at any time by writing to the Company, and if I do, the Company may decline my application.

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12/19/2017 0 Comments

$500,000 20 Year Term Life Insurance Policy | TOP RATES | SAMPLE QUOTES

advantages

  • Low cost way to provide a $500,000 payout to beneficiaries in case of your untimely death in the next 20 years.
  • You are guaranteed a $500,000 death benefit at the same level premium rates for 20 years.
  • You do not have to worry about your cost increasing over 20 years due age or health issues.
  • Life Insurance payouts are income tax free to your beneficiary.


warning

​If you buy a 20 year term life insurance policy, the policy EXPIRES in 20 years.  The big mistake people make is they do not pay attention to when the policy expires until it’s too late.  If a new policy is needed at that point, they are 20 years older and might not be as healthy.  New life insurance will be a lot more expensive.  This strains the budget.  Even worse, it might not be affordable and you have to go without.

solution

Take the time to GET A QUOTE for a longer duration. You can guarantee your life insurance rates for a 25 Year Term, 30 Year Term, To Age 95, To Age 100, To Age 121.  These longer durations will ensure you never outlive your policy.

Have Questions? do not hesitate to call! (888) 681-4952

ONLY approximately 10% of people who apply for life insurance get approved at #1 health class. your exact cost will depend on 3 variables...

1. HOW MUCH COVERAGE YOU NEED
2. WHEN THE will POLICY EXPIRE ​
​3. WHICH HEALTH CLASS YOU'RE APPROVED at


$500,000 20 YEAR TERM LIFE INSURANCE POLICY

​Top 3 Rates – sample quotes

All sample quotes shown assume #1 health class.​​ All life insurance companies have approximately 12 health classes.  Each health class has guidelines for things like height & weight, blood pressure, cholesterol, family history, etc.  For example, some companies will not give you the  #1 health class if your mom, dad, or sibling had cancer before age 60.  Other companies will. ​It is important to know the details of the underwriting guidelines for each quote you are looking at.  In other words, there is no sense looking at health class #1 quotes if you don’t meet the life insurance company’s health class #1 guidelines.

Male 35

500,000 20 Year Term Life Insurance Male Age 35

Female 45

500,000 20 Year Term Life Insurance Female Age 45


Male 45

500,000 20 Year Term Life Insurance Male Age 45

Female 45

500,000 20 Year Term Life Insurance Female Age 45


Male 55

500,000 20 Year Term Life Insurance Male Age 55

Female 55

500,000 20 Year Term Life Insurance Female Age 55


Quotes & Underwriting Guidelines (valid as of June 6th, 2017) are subject to change. 
get your FREE personalized quote for a
$500,000 20 Year Term Life Insurance Policy
SIMPLY LOOKING TO COVER FINAL EXPENSES?
​WE CAN HELP YOU WITH THAT TOO!
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11/14/2017 0 Comments

Pros And Cons Of Whole Life Insurance

As the US tax code has always bestowed favorable status on a whole life insurance policy, many agents are quick to tout the “upside” of  paying expensive whole life insurance premiums vs. what’s required for a 20 or 30 year term or guaranteed universal life.
Whole Life Pros
  • tax deferred growth & possible tax free distributions
  • guaranteed premiums and the “forced savings”

​However, like all financial products, there’s major downsides too which are usually glossed over in the sales presentation.
​
Whole Life Cons
  • very significant penalties for early cancellation
  • low contractually guaranteed returns on premium outlay
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Buyer Beware
Most agents sell off “projected returns” touting historically favorable dividends or interest rates which hark back to the pre “great recession” days when insurers (and consumers) could generate meaningful positive returns on conservative, no risk investments.

Savvy consumers always weigh the pros and cons of any purchase and make decisions that best align with their objectives and circumstances. That said, it’s difficult for many consumers, particularly in the “middle income” market to sort through the clutter and resist the rosy sales presentation. Some agents have perfected their pitch to suggest the recommended whole life policy can simultaneously provide adequate death benefits, adequate emergency funds, adequate retirement income and solve world hunger (okay, maybe that last one is a stretch … but you get the point).  The good news for consumers is trends seem to be changing somewhat.  Some agents are now actually having a “Whole Life Insurance Rebellion” about the pitfalls of whole life insurance.  This is a result of a push back /  lack of consumer confidence in the product.
When Not To Buy Whole Life Insurance
Whole life is a product that should not be purchased unless one is absolutely convinced their insurance need is permanent, regardless of the age they pass on. Even if that’s established, smart consumers will compare /contrast the whole life strategy with another which has a death benefit guaranteed for life – Universal Life programmed at a premium level which provides a “no lapse” guaranteed to age 121, kind of a “term for life” scenario.  Most importantly, whole life should never be purchased unless the premium is comfortably affordable – and this is the biggest problem in the middle income market. Consumers in this market can rarely get the robust death benefits they need to pay off mortgages/provide income replacement/ provide for children’s higher education – all necessary in event of premature death – with a whole life product chassis . Unfortunately, many who buy into the sales pitch realize this within just a few years of policy issue and cancel the policy, suffering a huge surrender charge that consumes most all of the premium outlay. Consumers in this market are far better off purchasing adequate death benefits via term insurance with a “locked” rate for 20 years or ​30 years and investing their discretionary dollars in traditional investments with low fees through discount brokers, no load index mutual funds or “robo advisors”. One can achieve the same “forced savings” element with these investment products too by signing up on a monthly bank draft basis – but can turn off the contributions at any time when /if ”life happens” without incurring any penalties. Fact is, there is a place for whole life insurance but it’s in the upper income or estate planning market. Unfortunately, there’s not enough of the 1, 5 or 10 “per centers” out there to satisfy the sales quotas of insurance agents and the profit targets of US life insurers – so the “misrepresentation” continues.

Incidentally, insurers could solve part of this problem by spreading the commission paid for whole life sales over a longer time period, rather than fronting the vast majority of it out in the first year (hint: why does the surrender charge have to be so high?? ) – but that’s a topic for another article.
Life Insurance Company Price & Underwriting Guideline ComparisonS
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