Baygroup Insurance

Maryland's premier Long-Term Care insurance agency

Frequently Asked Questions - Life Insurance

Who needs life insurance?
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For life insurance, your level of need will depend on your responsibilities and your age.  If you have people who depend on your income you need life insurance.  The benefit can help your dependents pay ongoing expenses such as: housing and food, outstanding bills, education, or other day-to-day expenses.  

The primary income earner would also benefit from life insurance on the stay-at-home spouse who cares for children.  Life insurance could provide the money to pay for childcare.

How much life insurance do I need?
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The answer to this question is different for everybody.  Ask yourself the following questions:

  • How much of the family income do I contribute?
  • What bills are being paid with my income?
  • What other income sources do I provide? (consider health insurance and other benefits provided by your employer)
  • Who is dependent on me and my income?

A calculator from LIfe Foundation can help you do this.   Contact us, for a discussion about your obligations and dependents with a independent insurance broker who can help you understand your life insurance needs and options.

How much does life insurance cost?
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Your health rating and the type of policy that you choose will affect the premium amount that you pay.  Contact us and we will take some quick information from you then provide you with quotes for life insurance from different carriers.

What factors will affect the health rating I receive for my life insurance policy?
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Your rating will be determined by many factors.  Your height and weight, tobacco use, cholesterol level, health conditions, and lifestyle, as well as family health history will contribute to your health rating.  

Can I still get life insurance if I use tobacco?
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Yes.  You will not receive a preferred health rating if you use tobacco, so the premiums that you pay will be higher than those a nonsmoker would pay.

What are the advantages of permanent life insurance?
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Permanent life insurance provides a death benefit as long as you live if your premiums are paid.  As with all life insurance, the benefits are paid to beneficiaries tax-free.  Periodic review of life insurance policy is recommended.  

Some polices have the option to pay premiums for a shorter periods such as 20 years, or until age 65.  Premiums are higher, since the premium payments are made during a shorter period.  

Cash value life insurance policies may be one of several types: whole life, universal life and variable life.  

  • Whole Life insurance premiums generally do not change, however they will be higher than those paid for term life insurance.  
  • Universal Life Insurance provides for flexible premium payments and changes to death benefit.  The premiums, less expense charges, go into the policy account and earn interest.  Review of policy account is recommended to ensure there is enough in your policy to keep policy in force.  
  • Variable Life Insurance premiums are not necessarily guaranteed, but the applicant may be able to pay extra premium to do so.  Death benefits and cash values depend on the investment performance of one or more separate accounts.  Be sure to review the prospectus carefully.  

For more information see

What are the advantages of term life insurance?
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Term life insurance will give you protection without additional investment or cash-value components.  You will pay level premiums for the “term” of your policy.  Your policy will be effective as long as you pay your premiums on time.  If the policy owner dies during the term of the policy, the benefit is paid to the beneficiary.

Are combination long term care insurance products medically underwritten?
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Yes.  As with traditional long term care insurance (LTCi) products, combination LTCi products are medically underwritten.  This means that your health status will affect your rating for these products.  You will want to apply for a combination product at an age when you are in good health!

What is the cost of a long term care combination insurance product?
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Many long term care combination insurance products require a single premium payment.  This means that you would pay the bulk sum at the beginning of your policy, rather than writing monthly or annual checks.  Combination long term care products can range in prince, anywhere from around $25,000 to over $200,000.

Who is a good candidate for a combination long term care insurance product?
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Many of these combination products require a single premium payment, rather than many monthly payments or annual payments.  Some people purchase these products because there is a one-time payment and no chance of a future rate increase.  If you have a chunk of money that you are able to put toward a single premium payment you might consider a combination product, if you also need life insurance.  It would not be a good idea to purchase a combination product if you already have enough life insurance or if you do not have a need for it.

Why would I want a long term care and life insurance combination policy?
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No matter what happens you will receive money from the policy.  The policy will either pay for long term care expenses, pay your estate or beneficiaries a death benefit, or you can have your premium payment refunded at any time.

Do I ever need to review my policy after I purchase it?
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It is a great idea to review your policy regularly (every couple of years).  As your life changes, you want to make sure that your policy continues to meet your needs.  Some life events that may change your life insurance needs include marriage or divorce, the birth of children or grandchildren, purchasing a new home, starting a business, and retirement.

Why choose Baygroup Insurance?
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Baygroup Insurance has over 40 years of combined experience in the Long-Term Care insurance (LTCi), life, disability, and health insurance markets.  Baygroup Insurance is a brokerage, which means they offer a selection of top insurance carriers to choose from.  They have sold over xxx LTCi policies. Their track record on service and follow-through are second to none.  LINK TO TESTIMONIALS.   Baygroup Insurance makes educating prospective clients a priority so that they can make an informed decision when purchasing insurance products for themselves and their families.  

Within the group, Melissa Barnickel is a CPA as well as having a CLTC (Certified in Long-Term Care) designation.  With her financial background she is able to pick up where many agents leave off.  Her overall accounting knowledge helps clients feel comfortable with their financial decisions.  When prospective clients leave a meeting with Melissa, they have a better understanding of what LTCi is and how it provides the funding for a long-term care plan.  Melissa also educates and assists her clients with their health, disability, and life insurance needs to meet their financial goals. 

Ed Hutman has a CLTC designation.  Ed has a knack that allows people to truly understand the impact of not planning for a long-term care event and the details and options offered with LTCi. Ed has knowledge and experience with groups that have offered LTCi to their employees as a benefit option.  When working with Ed, employers and individuals gain an understanding of how LTCi will benefit them.  Ed also helps employers and individuals gain understanding about health, disability, and life insurance products.

Insurance provides the cash flow to pay for professionals to provide care in a variety of settings. Family members maintain their emotional and physical wellbeing by supervising the care rather than providing the care.  Retirement income can continue to fund the lifestyle planned, as opposed to setting aside funds, "just in case" an extended care event takes place.  Insurance also preserves financial commitments to family members.  

Are there different underwriting requirements due to COVID-19?
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Many carriers do have different underwriting requirements during COVID-19 pandemic.  

Some life insurance applications are eligible to be issued without any lab work.  

Some ages, and health history will require the applicant to wait until after COVID-19.

Even so, education can take place now while you are at home.  We can look at your heath history and what insurance you are considering and then advise when application can take place.