The Clowe Agency
Committed To Helping You And Your Loved Ones
When It Matters Most
Life insurance provides crucial financial security in times of need, ensuring that you and your loved ones are protected and cared for when it matters most.
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Why should you work with The Clowe Agency
Our Trusted Advisors have access to a broad array of insurance companies and products, and can help you with a variety of insurance needs, including Final Expense, Mortgage Protection, Retirement Planning, and more.
Our Trusted Advisors undergo periodic and rigorous Continuing Education training, and are fully recognized by each state as a NIPR™️ Trusted Advisor
Expertise
Our Trusted Advisors are trained professionals who have a deep understanding of the different types of life insurance policies available and can help you choose the one that best meets your needs and goals.
Convenience
Our Trusted Advisors are a more convenient choice than trying to research and compare policies all on your own. We're here to do the legwork for you, comparing quotes from multiple insurance companies and helping you understand the terms and conditions of each policy.
Committed to Service
Our Trusted Advisors provide personalized service and support to help you choose the right policy for your unique situation. We take the time to understand your financial needs and goals, and work with you to find a policy that fits your budget and provides the protection you need.
Services We Offer
Life Insurance
Having your own life insurance policy helps to provide continued coverage for your loved ones in the event of your death...even if you change your employer.
Final Expense Insurance
Final expense insurance is a type of life insurance designed to cover your final expenses, such as funeral, burial, and remaining debts...the way you and your loved ones wish.
Term Life Insurance
A type of life insurance that provides coverage for a specified, or "term" of time. The insurance company pays out the death benefit if the policyholder dies during the term.
Mortgage Protection
Mortgage protection solutions provide peace of mind & flexibility to customize your own policy. Our Trusted Advisors will guide you on how to best protect your home, and your loved ones.
Index Universal Life
A type of permanent life insurance, that grows cash value in addition to a death benefit. An Index Universal Life policy also has the potential for greater cash value return.
Retirement Planning
Retirement planning is a multi-step process that evolves over time. Using our Simple Retirement Solutions Agents™️, we have expertise at your fingertips.
Ready to Plan for Your Family’s Future?
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Unpacking the Costs of Guaranteed Issue Whole Life Insurance - READ THIS FIRST
Guaranteed Issue Whole Life Insurance is a unique type of life insurance that is designed to provide coverage without requiring a medical examination or health questionnaire. While this convenience makes it an attractive option for individuals who may have health issues or difficulties obtaining traditional life insurance, it comes at a notable cost. In this blog, I will explore the factors that contribute to the high expense of Guaranteed Issue Whole Life Insurance.
No Health Screening:
One of the key features of Guaranteed Issue Whole Life Insurance is the absence of a medical examination or health questionnaire. Insurers take on a considerable risk by providing coverage without assessing the policyholder's health status. To compensate for this increased risk, insurers charge higher premiums for guaranteed issue policies.
Guaranteed Acceptance:
Unlike traditional life insurance policies where coverage may be denied based on health conditions, Guaranteed Issue Whole Life Insurance offers acceptance to virtually anyone, regardless of their health status. This guaranteed acceptance feature means that the insurance company is taking on unknown health risks for every policyholder, leading to higher premiums across the board.
Limited Coverage Amounts:
Guaranteed Issue Whole Life Insurance policies often come with relatively low coverage amounts compared to other types of life insurance. Since the insurer is accepting individuals without a thorough health assessment, they limit the potential financial risk by offering smaller coverage amounts. However, this limitation means that policyholders end up paying a higher cost per unit of coverage.
Graded Death Benefits:
Many Guaranteed Issue Whole Life Insurance policies come with graded death benefits, meaning that the full death benefit is not payable during the initial years of the policy (usually the first two years). If the policyholder passes away within the first few years, the beneficiaries may receive only a portion of the death benefit or a return of premiums, rather than the full coverage amount. This graded benefit structure allows insurers to mitigate some of the risks associated with unknown health conditions, but it also contributes to the overall cost of the policy.
Cash Value Considerations:
Guaranteed Issue Whole Life Insurance policies typically include a cash value component, similar to other whole life policies. However, the cash value accumulation in guaranteed issue policies tends to be minimal compared to traditional whole life insurance. The costs associated with managing this cash value component contribute to the overall expense of guaranteed issue policies.
Market Niche and Administrative Costs:
Guaranteed Issue Whole Life Insurance caters to a specific market niche – individuals who may have difficulty obtaining coverage elsewhere due to health issues. The administrative costs associated with underwriting, issuing, and maintaining these policies, along with the inherent risks, contribute to the higher overall cost of guaranteed issue whole life insurance.
Conclusion:
While Guaranteed Issue Whole Life Insurance provides a valuable option for individuals with health challenges, it comes with a higher price tag due to the inherent risks, guaranteed acceptance, limited coverage amounts, graded death benefits, and administrative costs. As consumers consider their life insurance options, it's essential to carefully evaluate the trade-offs and determine whether the convenience of guaranteed issue outweighs the associated costs or if alternative insurance solutions better align with your needs and budget. Allow the Trusted Advisors at The Clowe Agency to determine if Guaranteed Issue Whole Life Insurance is the proper choice for you.
6700 Cantata St. NW Suite 205
Albuquerque, NM 87114
(505) 392-5161
