Wherever you are at in life… young and in your “peak”, healthy as a horse, living with a medical condition, overweight, a skydiver, male or female, buying term life or permanent life (universal or whole life insurance), there are some important tips I can provide in this simple guide to getting a good life insurance policy.
First and foremost, know exactly why you need to obtain coverage.
If you decide to speak to our office, you can expect to be asked why you are looking into purchasing life insurance. This may sound obvious, but you’d be surprised how many people aren’t convinced they need the coverage before they call us. We want to make sure this is something in your best interest in the long run.
There no point in getting a good life insurance policy if your not sure you are going to keep it long term. Life insurance companies make lots of money off people who were not convinced they needed it in the first place. They keep it a 6 months to a year and they drop it. You must value the protection it provides. It is an intangible product. Is the feeling of financial security worth it to you and those you care about?
Not everyone needs a policy. For their financial situation, getting life insurance may not make any sense.
Second, decide how long you need your coverage for.
A certain number of years or permanent? Is it for the family or a business? Is it for pension maximization or estate planning? Will your needs for protection increase as you age, stay the same or decrease? Sometimes it is cheaper to purchase multiple smaller policies to coverage your needs. For example: typically a smaller 30 year term combined with a 10 or even 20 year term policy will be less than one larger 30 year policy of equal face amount (total amount of death payout). The idea works well to save money if you will not need as much life insurance later on. Maybe your kids will be out of college and the house paid off or even retired and no longer as reliant on the paycheck once provided. These are decisions you should make prior to applying for life insurance. While it is better to be “over insured” than “under insured” proper financial analysis should be performed to access your needs.
It is always best to apply for life insurance when you are younger.
Don’t delay it a few months, a year, then two. Life insurance gets more expensive each year as do the chances of a significant change in health issues. Just gaining weight can put you in a high rate class. Your best rates will typically be achieved at younger ages. One could say… life insurance is “on sale.”
Quit smoking or using any tobacco products.
Tobacco use does drive your rates up consideraly A 40 year old smoker can pay double or even triple the cost of a non-smoker in some cases. Imagine paying this for 20 or 30 years…even longer paying all the add cost for the same policy! Kick the habit. Your body will thank you and so will your wallet. You will have to be free of smoking for at least a year to be considered a non smoker on some whole life insurance applications. Some carriers will look back up to five years. Term life insurance is 5 years, typically. Just depends on the life insurance company’s underwriting. If you can do this, nothing will cut your premium more than doing away with an expensive habit.
If you are not in ideal health…
Get a physical. Have your blood pressure and cholesterol checked out. If these are not so good, medications that help get it under control is important as is starting a regular exercise program and healthier and stricter diet.
Check and lose a few pounds if you are overweight. Insurance companies will want to see you ideally in a “healthy” weight range. If you are unable to lose a few, you will want to discuss the matter with a high risk agent that can help you sort out the best company for you.
While some companies may argue you can compare these online…
usually these cases do not turn out the way the applicant expects. That is why it is best you speak with an authority on high risk life insurance. The guidance is free and they have the experience and resources to sort out the best companies for you. The best carrier for someone else may be a poor choice for your overall situation. A good, professional advocate can save you a heck of a lot of money. You don’t have anything to lose by talking with a seasoned, independent agent/broker. You can still make your purchase online without having to go anywhere, but have the added benefit of knowing it is a good move for you first.
If you have gotten a few speeding tickets…
Due to a “lead foot” you might want to consider waiting until your record clears before applying. Multiple speeding tickets would put you in a higher rate class due to the additional risk to the insurer. Sorry to say, your driving record poses substantially higher risk to the insurers. Don’t take it personally even if you have never been in an accident.
Wrapping up…
Don’t give up on getting an affordable life insurance policy even if you have a high risk condition. We handle difficult to insure cases on a regular basis. If you have health problem, you might read this article to see what you can do to receive the best offer.
Regardless, getting a good life insurance policy requires a little due diligence and a good independent life insurance agent. An independent is working for you, not an insurance company. He are she is not selling State Farm, Allstate or Farmers Insurance for a living. These are all captive, one trick ponies that lead to being overcharged or declined for coverage. Not good. Property and casualty is their meat and potatoes, not life insurance.
Just do all you can to get all your cylinders firing as best as possible before applying for any coverage. If you do, you will find yourself saving a lot of money on life insurance. Hope this helps. Let us know if you have any questions. 269-230-3464