Secret # 1: Do not spend too much time on life insurance quotes.
Do not be fooled by the low price offer to get online – they do not apply to you unless you are very healthy. Statistically, only 10% of people who apply actually get the lowest price policy. The premium you end up paying nothing to do with the first quote that you get online or agent. It is amazing to me how often I see people getting duped agent citing company X at a lower price than the agent.
Life insurance policies are the same price, no matter who you buy from! One agent or website quoted a lower premium means nothing. Rates for any given policy is based on age and health. There are some exceptions to this, but it is outside the width of this article.
Most life insurance companies have 10-20 different rated health / price agent or website can assure you quote they give you is right. You need to download, make checks, and then go through underwriting (which means that you complete a mini-examination with the nurse at your home and the company controls doctor records and reviews and ‘perfect’ to your health) to get the real price of policy. Remember that health rating factors also your family history, driving record, and the type of job you have. only use quotes to help narrow down your choice of top companies. You may want to consider a no-load or low strategy. The more you save on commissions the more money builds up in your strategy. You can even buy Term insurance, no load, and save a lot of contributions. You will not get help agent, which might be worth something if they are very good.
The most important factor determining the price is match your specific health at the company best for that niche. For example, company X might be best for smokers, company Y for cancer survivors, Company Z for people with high blood pressure, etc.
Secret # 2: Ignoring promote the concept against the cash value of permanent insurance.
You can go crazy reading what everyone has to say about buying term insurance versus whole or universal life policy. Big name websites give advice which I think borders on fraudulent. Simply put there is no simple answer to whether you should buy a permanent policy cash value or term insurance.
But I think there is a simple rule of thumb – buy time for temporary needs insurance and cash value insurance for permanent needs. I have read in various magazines and drive equations me that basically shows that if you have a need for insurance in excess of 20 years, you should consider some amount of permanent insurance. This is because the tax advantage of growth in cash value in a permanent policy. I divorced and have taken care of my children I should die. I probably no longer need as much insurance I have now. I’ve done a lot of return on my policy and pay no taxes. I no longer pay premiums, because there is so much money in the policy. I’ll strategy to pay off. I would not call the most life insurance a good investment. Because I bought my policy right, and paid almost no sales commissions policies are probably my best investments me. I no longer them, so when I die my beneficiaries will receive money both tax and estate tax free.
Since most people have short-term needs such as a mortgage or children at home they should get some time. In addition, most want some life insurance in place for their whole life to pay for burial, help with unpaid medical bills and estate taxes and permanent policy should be bought with the concept of strategy.
Secret # 3: Consider applying with two companies at once.
Life insurance companies really do not like this “trick” because it gives them competition and increases feed costs.
Secret # 4: Avoid capture drug insurance.
Looking for a life insurance agent who represents at least fifty life insurance and ask them multi company quote shows the best prices side by side. Some people try to cut the agent out and just apply online. Just remember that you do not save any money so because dealers usually won by the agent are only held by the insurance company or insurance company website without having your premium down.
Plus a good agent can help you maneuver through some of the complexities of filling out an application, install beneficiaries devices, avoid mistakes in the choice who should be the owner, the best way to pay the premium, and it also must deliver stop and assist loved ones if life insurance is always used.
Secret # 5: Consider refinancing old life policies.
Most companies will not tell you the price that you pay on your old policy has probably come down significantly if you are in good health. In recent years, life insurance has updated its forecast on how long people will live. Because we are living longer they are reducing interest rates further improved. Beware of the agent can do this to get a new commission, so make sure it really makes sense.
I am amazed at how often we find that the old policy of our customers are twice as expensive as new. If you have a new life insurance consider “refinancing” old rules and use the savings to the old policy to pay for a new direction – so there is no extra out-of-pocket costs. We like to think of this process as “refinancing your life insurance” – just as you refinance mortgage.
Secret # 6: Realize life insurance companies have targeted niches that constantly change.
One day the company “X” is to give good price to people who are a little overweight and next month they are super strict. The company “Y” may be less severe in people with diabetes because they do not have many diabetics of books – which means that they will give a good discount on diabetics. The ‘W’ Meanwhile, the company could be very strict on diabetics because they are insuring a lot of diabetics and are afraid that they have too much of a risk in that area – which means that they will give a bad rate for new diabetics who have .
Unfortunately, when you are applying for life insurance companies will not tell you, “Hey, we just raised the our in diabetics.” They just want to happily take your money if you were not smart enough to shop around. This is the number one area of smart agent can come in handy. Since good multi-company agent is continuously applied by many companies that he or she will have a good grasp of what is now the most lenient of underwriting for your specific situation. The problem is that this is a hard job and many drugs are either too busy or not set up to efficiently shop around to different insurers directly and see who would make you the best offer. This is much harder than just run you a quote online.
Secret # 7: Do not forget customer service.
Most people shopping for insurance companies with a focus on the lowest price and the best financial rating. Unfortunately, I know of several A + rated companies with low I would not touch with a ten foot pole simply because it is easier to raise Porcupine reverse it is to get customer service from them.
Before I did this I used a life insurance company that gave customers a great rate, but 2 years later called the customer to me and said, “I have sent all payments on my time, but just received notice of to my policy lapsed. “It turned out the company had been making a lot of mistakes back office and had missed premium payment!
We were able to fix it because we had trouble early. But if a customer happened to have died in a short time the policy had lapsed, his family may have had a hard time proving that the premium had been paid on time and they could not have received life insurance money – a loss of hundreds of thousands of dollars in that case.
Secret # 8: Apply 3-6 months ahead of the time you need insurance if possible.
Do not be in a hurry to get a policy if you already have some coverage in force. But go ahead and apply immediately know that you may need months to shop around if the first company does not give you a good rate. Even if the life insurance industry is getting more automated application will still often held up for weeks or months, but the insurance company is waiting at the doctor’s office to mail a copy of you medical records.
If you are in a hurry and buy Quickie ‘no-underwriting’ policy without going through the full control and health underwriting the private life insurance company requires, you end up paying 20% -50% more because the insurance company will automatically charge you a higher price because they do not know whether you are healthy or about to die the next day.
Secret # 9: Avoid buying extra life insurance through work if you are healthy.
I’m sure there are exceptions to this “taste” but I have rarely found one. By all means keep free life insurance your employer provides. But if you are healthy and you have to pay for additional life insurance through payroll deductions you are almost certainly paying too much. What is happening is that your overpay ‘ends pay unhealthy people in your company who are purchasing life insurance through payroll deductions.
Usually assurance cutting contract with your employer and will waive the required health examination for all employees – instead they just average price for all employees and offer one or two rooms for men and women of every age. Life insurance companies know that they will take up a lot of unhealthy clients in this way so that they jack up the price of all that healthy people end up overpaying so unhealthy workers get a cheaper policy. Also, unlike the present term strategy we recommend, most life insurance you buy through work will get more expensive as you get older.
There is a group life insurance usually not portable when you retire or change jobs means that when you retire or change jobs you may need to download all over again, even though you will be older and probably not as healthy as the risk of being turned into policy. If the group’s plan to allow portability they usually limit the conversion choice and force you to go into expensive cash value plans.
I remember helping someone to assess his replacement life insurance. He was sure it was a better deal than what strategy I could find him. Little did he know that the price of his group’s plan would go up every year? By the time he retired premium would have risen above $ 10,000 / year. I found it policy for $ 1,000 around / year that would never go up. Also, unlike the old policy group of his life, he could take an individual policy with him when he changed jobs or retired.
Secret # 10: Do a trial program at COD payment basis.
send money only with the application if you need life insurance coverage immediately. Sending a check with the application’s traditional practice medicine used to do – I think mostly because it got them their commissions faster. If you send money with a program that you usually get temporary coverage right away, but if you are already plenty of discussion and are just trying to get a better price ask your agent to make a trial application on a COD basis so you pay only when policy is approved. If you do not send the money, and you die before paying for the policy there is no coverage.
Secret # 11: Wear shoes when nurse measuring height.
When the insurance company sent a nurse to make a medical phone trying to be as great as possible if you are overweight? In most countries you are allowed to wear shoes if you are a little overweight higher height / weight ratio will look a little better guarantor that ruled the health of your score and price policy. Also do test early in the morning without food for you – this will make your cholesterol count and various ratios health look best.
Secret # 12: Be careful with extra perks and riders.
Most policies come with options such as accidental death benefits, children rider, rider disability, return of premium, etc. If you do the math on most of these “extras” they usually do not make smart financial sense. Life insurance companies are out to make money and these riders are usually profitable because they either achieve something that rarely happens, or they are so strict that the benefits never gets paid out. Keep things simple and foremost focus on getting life policy to cover your life without many strings attached. Again a good agent can help you weigh the benefits of extra riders. But be careful about the agent who tries to tack on every possible extra rider.
Source by L Lance Wallach