What is the best term life policy for Crohn’s Disease?
Finding the best term life policy for Crohn’s disease might seem difficult at first.
But, if you use an agent who specializes in representing the companies that underwrite Crohn’s disease and ileitis the best, you will save a lot of time and money.
Term life insurance offers you the lowest cost option of protection for your family or business. But knowing which plan is the best term life policy for your family can sometimes be hard to determine. Following we will discuss the different types of term life plans available and how each may fit into your situation.
Different types of Term life coverage
- One Year Term- A one year term life policy is very uncommon. Although this product is available in the marketplace, most people need coverage longer than one year. Therefore, purchasing a term policy that only guarantees the rates for one year in most cases makes no sense. If a policy is needed for perhaps a year to guarantee a loan then maybe this would make sense, otherwise I would definitely not consider this one of the best term life policies you could buy.
- Five Year Guaranteed Level Term- Much like the name implies, a five year term life policy would lock in your rates of coverage for 5 years. Typically after 5 years your rates would begin to increase on an annual basis.The five year term policy in today’s insurance marketplace is not very competitive. Oftentimes, you can purchase a 10 year guaranteed level term plan for less than the 5 year. It has its place, but probably not high up on the list of best term life plans.
- Ten Year Guaranteed Level Term– Ten year guaranteed level term plans are very popular and their are numerous companies to choose from that offer them. Again, much like the 5 year term plans, rates are guaranteed to remain level for 10 years.
At the end of 10 years the rates will adjust higher and sometimes substantially higher.
It is important to know what your policy is protected in order to determine if a 10 Year plan is right. A good example might be that you just want to make sure your mortgage is paid off if you unexpectedly pass away.
And if your mortgage has 10 years or less remaining, then a 10 year term plan is a good choice. But, be careful. Make sure you buy your coverage for as long as you think you need it.
- Fifteen Year Guaranteed Level Term- Another popular plan of protection. The 15 year guaranteed level premium plan can fit many people’s needs. If you have kids that are pre-teens, and your biggest goal is to provide protection until they get out of the house and on their own then a 15 year term can be the best term life plan for that situation. Or going back to the mortgage protection, if you have 15 years or less on your mortgage then a 15 year term would work as well.
- Twenty Year Guaranteed Level Term- Probably the most popular term life policy sold is the twenty year level term. The 20 year term locks in guaranteed rates for 20 years. This oftentimes fits the situation of many families. This will cover while the kids are at home, until the mortgage gets paid off and allow for time to build up a savings fund.
- Twenty Five Year Guaranteed Level Term- The twenty-five year guaranteed level term has become more popular in recent years. But, fewer carriers offer the policy. And even fewer carriers that underwrite Crohn’s disease the best offer the policy. This can be a good option for those in their late 30’s to early 40’s and want coverage locked in until age 65 or retirement.
- Thirty Year Level Guaranteed Term- This product is very popular because it allows you to lock in guaranteed level rates for 30 years. This covers most people’s needs. Its kind of a buy it and forget it policy. The rate is locked in and can’t change. Very good policy especially for those age 20-35.
- Return of Premium Term- Most of the level term options mentioned above also come with a full return of premium option. This option allows you to pay more in premium, but be guaranteed at the end of the term if no claim has been made, your full premium will be returned to you. Many people like this option. Yes, it’s a bit of a forced savings account, but the return of premium option typically looks very attractive in many situations.
- Laddering Your Term- Although not a policy in and of itself, a concept called laddering can help you build a term protection plan for your family. As an example, let’s say you need coverage for 15 years until your kids get out of college and you need 20 years until your mortgage is paid off. Instead of buying one policy, you can buy two. Simply purchase a plan that fits your time frame. In this case a 15 year term and a 20 year term.
Best Term Life with conversion option
One of the most overlooked options when buying term life insurance is the conversion option. Not all term policies offer a conversion option. This option allows the owner to convert their term life policy to a permanent plan of protection with no evidence of insurability.
This means if you have had a change of health during the “term of the policy” and you wish to continue your policy longer than the original term that you chose, you can do it without proving any health history or taking of medical exams.
This is a super important option. In fact, I personally don’t sell any term policy without the conversion option available. It is also very important to know all the conversion option works for each policy you are considering.
Some term policies only offer the conversion option for a limited number of years. Some offer the option to age 65 or 70.
It is also important to understand and know what the conversion option policies are that will be available. If someone wants to convert their term policy to a permanent policy like a whole life or universal life policy you want to make sure the carrier has a decent policy option available.
Now, many people think I would never convert my policy to a permanent policy. I just want old vanilla term. But, I am here to tell you that in my over 30 years in this business, things change.
Someone that just wanted a term life policy for 10 years suddenly has a health situation that makes them uninsurable and the last thing they want to do is let their coverage end after 10 years or 15 years. The conversion option has saved many people’s coverage from ending.
It’s important so make sure you know what you have.
Underwriting a policy with Crohn’s disease
Okay, so now that we know the best term life policies that are available, how do we make sure we get the best one. Underwriting plays the biggest role.
Let’s face it, it is easy to underwrite and get rates on someone that has had absolutely no medical history.
But, someone with a history of Crohn’s disease will need specialized underwriting. And they will need a carrier that specializes in underwriting this risk.
Fortunately, their are several carriers that not only have some of the best term life policies, but also specialize in underwriting Crohn’s disease.
Here are a few of the carriers that offer both:
- Prudential
- Banner Life
- Lincoln National Life
- United Of Omaha Life
- Cincinnati Life
- North American Company for Life and Health
- John Hancock
Your agent will be your biggest advocate. A special risk life insurance agent will be able to negotiate and get you the absolute best term life insurance policy available at the best price. How much coverage do you need? Here is a free tool that can help you determine your needs.
Conclusion-
If you are in the market for term life insurance protection and you have a history of Crohn’s disease, please give us a call at 1-888-393-9003 or email mike@specialriskterm.com We will provide a free analysis of your situation.
