80/53 Rule: What Do Others Know That You Don’t
Follow Drew Gurley
This article is for those of you that DO NOT currently have life insurance outside of what you might have elected from your employer (if they even offer it).
First, you need to understand what the heck the 80/53 rule is…
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What is the 80/53 Rule?
Well it’s not really a rule, but more of an eye opener that highlights that your peers clearly know something big that you don’t. And, in the context of the income disparity (you aren’t going to make as much money as you may think or wish) in the United States, if you’re seeking a life of luxury or comfort, you shouldn’t be missing out on these facts.
Are you one of the 80 million Americans who say they either:
- Need more life insurance, or
- Do not currently own life insurance and need to purchase at some point.
For you non-owners of life insurance in that 80 million, 53 percent say they are likely to purchase life insurance in the next year according to the most recent Insurance Barometer study by LIMRA.
Why is This Important?
Because it can make the difference between you staying with the herd (average income earners) or breaking away and changing your position in the income percentage bracket. Did you know that there is a sizeable difference in life insurance ownership based on household income?
According to the Insurance Barometer Study…
- 31% of households making less than $50,000 in household income own life insurance.
- 52% of households making between $50,000 and $100,000 in household income own life insurance. That’s 67% more ownership than those making less that $50,000!
- 63% households making more than $100,000 in household income own life insurance. This represents 103% ownership and 21% more ownership than the respective household income listed.
Those numbers are staggering differences and it’s worth challenging what higher income earners may know that you don’t.
So what do they know that you don’t?
What You think
If you are part of the 53% these are the top 4 reasons people don’t buy life insurance.
What They Know
Here are a few of the things the others know about buying life insurance.
So Now What?
Like most things in life, you can use data as a guide to making a decision, and the data here tells us that more than half of your peers have learned about how life insurance is used as a financial tool.
The more you learn, the more you can earn. Life insurance is a critical part of risk management and the younger and healthier you are, the cheaper it will be to put that piece of the puzzle together.
Apply Now and Save!
What are the different types of life insurance?
You may hear life insurance called by many different names but the different types of life insurance are generally categorized into two categories; Term Life Insurance and Permanent Life Insurance.
Term Life Insurance received its name because you are buying a death benefit for a specific number of years and typically your premium and death benefit is guaranteed to be the same throughout that specific timeframe. For example, the common term lengths you will see are 10-year term, 15-year term, 20-year term, 25-year term, and 30-year term. Term Life Insurance is the most affordable coverage option and is a good solution when you have a known timeframe of need that you will likely not need coverage beyond that point. You can click here to run a term life insurance quote.
Whole Life Insurance is often referred to as a “Permanent Policy”. This is because a Whole Life Insurance Policy is designed to stay in force through your life expectancy (often to age 121). The typical Whole Life contract will guarantee that your policy will endow (cash value in the policy will equal death benefit) at age 100 or 121 or more depending on the company. This type of contract also has guaranteed cash growth, and non-guaranteed dividend-based cash growth. Whole Life is often more expensive than Term, Universal Life, or Indexed Universal life due to the contractual guarantees. Whole Life is attractive for its guarantees and can provide predictable cash value and death benefits.
Universal Life Insurance is another type of policy also referred to as a “Permanent Policy”. This is because the typical Universal Life contract will accumulate cash value at a fixed interest rate and as long as there have not been loans against the policy or withdrawals taken out of the policy, it is designed to stay active past typical life expectancy. Through product innovation and design, there are now Universal Life contracts that can guarantee your that your death benefit last as far as age 120. Universal Life is more expensive than Term Life Insurance, but often less expensive compared to Whole Life Insurance or Indexed Universal Life Insurance. Universal Life is attractive for its flexibility and can provide competitive cash value accumulation.
Indexed Universal Life is another type of life insurance that is referred to as a “Permanent Policy”. This is because the typical Indexed Universal Life contract will accumulate cash value and as long as there have not been loans against the policy or withdrawals taken out of the policy, it is designed to stay active past typical life expectancy. Indexed Universal Life is all called “Indexed” because cash value accumulates inside the policy based on the growth of an Index, such as the S&P 500. Through product innovation and design, there are now Indexed Universal Life contracts that can guarantee your premiums and your death benefit as far as age 120. Universal Life has gained and maintained popularity due to its upside potential for cash growth and flexibility of the contract as well.
Variable Universal Life is another type of life insurance referred to as a “Permanent Policy”. This is because the typical Variable Universal Life contract will accumulate cash value and as long as there have not been loans against the policy or withdrawals taken out of the policy, it is designed to stay active past typical life expectancy. Variable Universal Life is all called “Variable” because cash accumulates inside the policy based on the growth of Sub-accounts. These sub-accounts, though they may seem like they are mutual funds, they are not. They do however function similarly and are based on the underlying securities or markets for the investment. These Sub-accounts also carry a fee for the investment company managing them. Through product innovation and design, there are now Variable Universal Life contracts that can guarantee your premiums and your death benefit as far as age 120. You need to work with a Registered Representative of a broker-dealer to purchase Variable Universal Life Insurance.
What does Life Insurance cover?
Life Insurance provides peace of mind to your loved ones or business partners. In our education article 37 Uses of Life Insurance we reference may more uses for life insurance, but here are a few popular reasons people like you buy life insurance:
- Mortgage Replacement
- Debt Elimination
- Income Replacement
- Education Funding
- Funeral Expenses
- Estate Planning
- Buy-Sell Agreements
- Key Person Insurance
- Chronic Illness
- Critical Illness
- And more!
How do I Buy Life Insurance?
Thankfully we have made buying life insurance fast and easy, the entire process takes less than 10 minutes for most. Here are 5 easy steps to buy life insurance through Quote Bot:
Step 1: Start a quote. This process takes less than a minute because we need very little information to instantly show you a quote that you can customize. You just need to know your name, date of birth, state, general health, and tobacco status. We always send you a link to this quote for you to refer back to.
Step 2: Continue application. On your quote, we provide a link to continue to the application. This brings your first through a short pre-qualification so you know if you’re expected to qualify. This process can be as fast as two minutes to complete.
Step 3: Complete application. Once you see the pre-qualification results you can complete the application. This process takes between 5-10 minutes depending on your health history and customizations chosen. You will receive another instant verification of your expected eligibility before you sign your application. You will also put your payment information in on this step, but you are not charged until the insurance company has approved your signed application.
Step 4: Sign your application. After you received your approval you will be able to instantly electronically sign your application. Once you finish your signatures, we bring you back to the final decision page and the Insurance Company will let you know within 90 seconds of your approval status. The insurance company will send your policy for electronic delivery after you’ve been approved!
THAT’s IT! It really is that simple and for most, this can be completed from beginning to end in 10 minutes or less.
Which Type of Insurance is right for you?
Everyone has their own needs, wants, and wishes for buying life insurance. Ultimately the best life insurance policy is the one that pays out to your beneficiaries when you need it to. Working with a Quote-Bot will help you find a budget-conscious life insurance plan to make sure your family members or business partners are properly taken care of when you need them to be. Here are two of our most popular term life insurance products.
How much does life insurance cost?
| Age | Gender | $25,000 Coverage Amount |
$100,000 Coverage Amount |
$250,000 Coverage Amount |
$500,000 Coverage Amount |
|
|---|---|---|---|---|---|---|
| 25 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Instant Decision! |
Apply Now! |
| 35 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Instant Decision! |
Apply Now! |
| 45 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Instant Decision! |
Apply Now! |
| 50 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Instant Decision! |
Apply Now! |
| 55 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Automated, Not Instant |
Apply Now! |
| 60 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Automated, Not Instant |
Apply Now! |
| 65 |
Female |
$7.89 Instant Decision! |
$18.57 Instant Decision! |
$32.67 Instant Decision! |
$57.26 Automated, Not Instant |
Apply Now! |
The above rates are run for the Age & Gender shown, in the State of Colorado at Preferred Plus underwriting (best underwriting). These rates are not a valid offer, you will need to complete a quote to view the initial rate for your situation, and the application process will verify your rate.
Fast Quoting Process
Our quoting process takes about a minute to complete and view your quote. We also instantly update your quote with any changes you would like to see, without having to start all over!
Instant Decision Underwriting
For many, you can go from our quote to a completed purchase in less than 10 minutes! Our Instant Decision process keeps you from having to wait around to see if you qualify.
Solutions That Fit Your Needs
We pride ourselves in providing high-quality and well-planned solutions no matter how big or small your need is. Our solutions will bring you from concept to completed purchase in minutes!
Frequently Asked Questions
Nuestro proceso y nuestras soluciones están diseñados para ayudar a eliminar la necesidad de hablar con un agente. Pero sí, puede hablar con un agente si lo desea. Puede utilizar la función de chat de esta página o llamar y hablar con un agente.
Our process and solutions are designed to help remove the need to talk with an agent. But yes, you can speak with an agent if you like. You can use the chat feature on this page or call and speak with an agent.
El impago de una prima es un asunto importante que hay que tener en cuenta y, afortunadamente, existen programas que le ayudan a recibir una notificación en caso de impago. Normalmente, dispone de un periodo de gracia de unos 30 días para efectuar el pago. La compañía de seguros le enviará un correo electrónico, pero también puede enviarle correo en papel, para informarle del problema de pago y darle instrucciones sobre cómo resolverlo. Si no efectúa ningún pago durante el Periodo de Gracia, tendrá que volver a someterse al proceso de suscripción para mantener su cobertura.
Missing a premium is an important thing to know about and thankfully there are programs in place to help notify you if you do miss a payment. Typically you have around a 30-day grace period to make your payment. The insurance company will email you but may send you paper mail, making you aware of the payment issue and giving you instructions on how to resolve it. If you do not make a payment during the Grace Period, you will have to go through underwriting again to keep your coverage.
Si tiene entre 18 y 50 años y solicita una prestación por defunción de hasta 1.000.000 $, o si tiene entre 51 y 65 años y solicita una prestación por defunción de hasta 500.000 $, es posible que no necesite someterse a un examen. Cuando presenta una solicitud fuera de esas edades o prestaciones por defunción, se le exige un examen médico. No te preocupes, te ayudaremos a organizarlo. Estos exámenes son obligatorios (si son necesarios) para que la compañía de seguros pueda comprobar si cumple los requisitos y el importe de la prima.
If you are age 18-50 and applying for up to $1,000,000 of Death Benefit, or ages 51-65 applying for up to $500,000 of Death Benefit, you may not need an exam! When you apply outside of those death benefits or ages, you are required to have a medical exam. Don’t worry, well will help arrange that for you. These exams are required (if needed) so the insurance company can verify your eligibility and your premium amount.
Decisión instantánea significa que le comunicaremos inmediatamente (posiblemente hasta en 90 segundos) si ha sido aprobado o no, si necesitamos más información, si ha sido rechazado o si necesita un examen. No hace falta esperar mucho para obtener respuestas.
Instant decision means that we will let you know immediately (possibly up to 90 seconds) whether or not you are approved, if we need more information, if you were declined or if you need an exam. No need to wait around very long for answers.
Nuestro proceso de Decisión Instantánea tarda 10 minutos en completarse para la mayoría. Algunos son más rápidos, otros más lentos. La buena noticia es que una vez que haya terminado de rellenar su solicitud, le daremos las respuestas al instante o en un plazo de 90 segundos más o menos. Es rápido.
Our Instant Decision process takes 10 minutes for most to complete. Some are faster, some are slower. The good news is that once your done with your application, we give you answers anywhere from instantly or up to a 90 second wait or so. It’s Fast!
No. Nos esforzamos por ofrecer una solución que le permita ir de principio a fin en cuestión de minutos sin necesidad de hablar con un agente.
No. We strive to provide a solution that allows you to go from beginning to end in minutes without the need for speaking to an agent.
