How Much More is Life Insurance for Smokers?

life insurance for smokersWhen I tell people that I used to smoke, they are completely shocked. Being a health nut and Crossfitter, that’s the last thing that people would expect that I would do.

To my defense, it was during a stressful time in my life. While I was deployed to Iraq I smoked a cigarette at least every day. It even got to the point to where I was buying cartons of cigarettes.

My wife wasn’t keen on the idea, but I promised her when I returned I would quit for good. Since I got back home in 2006, I’ve smoked (I think) 3 cigarettes total.

How’s that for going cold turkey?

If you smoke, it’s going to hurt your life insurance rates. Since this habit carries so many health risks, smokers generally need to pay more for their coverage and also could have a more complicated application process.

If you handle your application properly though, you can minimize the extra costs you’ll need to pay. Here is a complete guide to life insurance for smokers to help you get prepared.
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Why I Purchased a 2.5 Million Dollar Term Life Policy

There is nothing more invigorating than sitting around a dinner table with guests and talking about life insurance.

Okay, just kidding.

It might not be invigorating, but it is something that I wish people would talk about more.

Why is that?

Because far too many people still don’t have any life insurance at all, and if they do, they don’t nearly have enough.

buying 2 million life insurance policy

Often times, I see people that have $50,000 to $100,000 of term life insurance either through their employer or that they purchased themselves and they think that is enough.
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How Much Does a Million Dollar Term Life Insurance Policy Cost?

“One million dollars…..baawaahahahahah!”


One million dollars…

I can’t help but chuckle when I think of Dr. Evil saying that in the classic series Austin Powers.

For many people, one million dollars sounds like a lot of money – and it is!

But a common misconception is that one million dollars of term life insurance is very expense.

That couldn’t be further from the truth.

To demonstrate, I attained quotes from the top insurance carriers using my new handy dandy free life insurance quoter.

Yes, I realize you could have entered the info yourself and found it on your own. I thought I would be a nice guy and find out for you. :)
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How Much Term Life Insurance Do You Need to Buy?

how much term life insurance to buyHow much life insurance coverage I need to buy was something that really wasn’t important to me until I got married.

My first policy was a $250,000 30 year term life insurance policy and I thought that was plenty.  It was not until we had our first son that I quickly realized that was not nearly enough.

After his birth, I decided to increase it substantially.   That was over two years ago.  With us in the process of building our first home and a second son on the way, I’m left wondering even with that increase if I really have bought enough life insurance.

Update: We now have our third son and I have increased the amount of life insurance I have on myself.  Check the end of the post to find what I’ve increased my term life insurance to and my rationale.

I know many struggle with this same decision so I wanted to shed some light how much life insurance is enough.

First things first, life insurance is for one purpose: income replacement.  While there are times where life insurance can aid in more complex estate planning strategies, a majority of the time it’s purchased to take care of your family once you’re gone.

My reasoning for purchasing life insurance is that I want to leave my wife and kids without any debt and the ability for my wife to not worry about finances in the event of my unexpected passing.

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Is Whole Life Insurance a Good Investment?

Most Americans have some form of life insurance. Knowing that ones loved ones will be take care of should sudden tragedy strike, or natural death occur, gives peace of mind to individuals.

Others want to know they have money saved should they need it for an emergency in later years, regardless of the payout to beneficiaries. Many people get confused when trying to decide what type of life insurance to purchase.

But is whole life insurance really a good investment?
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Is Life Insurance Really a Good Investment?

Most people want to know their families will have a secure financial future.

When you start planning for how you’ll care for your family years from now, it’s likely that you will consider a variety of options.

Life insurance should be among the possibilities you study.
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How to Disaster Proof Your Portfolio

Recently I was asked to be on our local news channel to give my monthly “money talk”. The country had been recently been bombarded with one horrible storm after another. So I thought it was only fitting to tie that in to our financial life. Here’s what I came up in disaster proofing your investment portfolio.

Insurance Strategies for Small Business Owners

All small business owners need to make sure they carry enough insurance to help protect their families, employees, and assets. With the right strategic plan in place, the small business owner can help protect his or her business against financial loss due to illness, disability, death, and other calamities. There are many different types of insurance small business owners need to consider.
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Social Benefits for Minors – The Social Security Death Benefit

For anyone with children there comes a new fear. What you would do to provide for them if something happened to you? Naturally, that is why many people get life insurance; that’s why I did.

Others start planning their burial arrangements or they take other measure to ensure their final expenses are covered and they have something to give their children, too. Personally, I haven’t done the pre-funeral arrangements yet; just a bit too morbid for me since I’m still only in my 30’s.

Of course, there is one social benefit for minors that is often overlooked by concerned parents and one that I forget. It is the Social Security Death Benefit. This benefit is actually a type of fund that can set up to automatically garnish your wages for a certain amount. This money is then turned into credits that are deposited in a Social Security-operated fund. If something were to happen to you or your spouse, your dependents, including children, would be eligible to collect the funds so they can meet their basic living needs.
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How Much Are Premiums on Term Life Insurance If You Use Tobacco?

How Much Are Premiums on Term Life Insurance If You Use Tobacco?I always assumed that life insurance for tobacco users was more expensive than those that don’t use it, but I never realized how much more.

A younger client of mine in their 30’s was interested in purchasing term life insurance and what I didn’t know is that he used chewing tobacco.

Once I found that out, I warned him that the potential cost could be more – which ended up being WAY much more.

In his case, his premium more than doubled.  I was astonished.

That prompted  me to do a little experiment the other day. I wanted to see how using tobacco affects your coverage premiums for life insurance – for males and females.

In some ways, I wasn’t surprised at what I discovered, based on what I discovered with my previous client.  What I was astonished was the percentage increase. [Read more…]

Tips To Prepare For Your Next Medical Exam For Life Insurance

Life Insurance Medical Exam

Tips For Medical Exam

When you apply for life insurance, you typically will be asked to have a medical examination performed by a licensed health professional.  The insurance company will order the exam on your behalf and you will receive a call to schedule the appointment.

When I got my term life insurance policy, I had a traveling nurse come to my home and do my blood work and the rest of the tests.  Since you’re not supposed to eat before the exam, I had scheduled for her to come early in the morning.  There was no way that I can go too long without eating.
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How To Prepare Financially for Your First Child

I thought this post was fitting since a pretty close friend of mine just recently found that they are having their first child.

You can never prepare for being a first time parent.

Diapers, crib, strollers… it can be overwhelming.

Here’s another guest post from Joe Plemon of Plemon Financial Coaching, offering some basic tips on preparing financially for your first child.

How to prepare financially for your first child

Q: We are going to have our first baby in a few months.  What things should we be thinking about that will help us be wise with our finances?

A: The following ideas should help:

Have a budget

I realize that everyone needs a budget, but if you don’t have one in place, now is the time to get it working.  The good news is that babies don’t cost as much as society tells you.  The not so good news is that, as money grows tighter with a little one in the house, not having a written cash flow plan in place can get you in trouble.  Turn the TV off and plan an evening with your spouse to prepare a budget.  You will be glad that you controlled your life instead of letting it control you.  Here’s a good budget read at Free From Broke.

Have proper life and disability insurance in place.

Ask yourself this question:  “If something happens to my spouse or me,  how will the remaining spouse be able to care for our child and continue to pay the bills?”   You probably spend more eating out in a month than life insurance and disability insurance premiums would cost, so you absolutely can’t afford to not have them. Here’s some other personal finance essentials from Patrick @ Cash Money Life. [Read more…]