If you are in the process of shopping for term life insurance, take a moment to red this article. We are going to go over the 10 best ways to get the lowest possible rates. Having a basic knowledge on how the application process works with make everything easy to understand. There are a number of different tips I am going to go over. These tips are time proven ways to help you lower your premium. With todays technology comparing rates from multiple companies is as simple as falling of a log.
Making sure you get the best life insurance rates is not complicated. You just need a little background on what you need to do when shopping for individual life insurance. We will go over everything you will need to know to be successful in securing the lowest rates.
Carefully consider the amount of your face amount.
1. Carefully consider what face amount would be appropriate to meet your outstanding financial liabilities. The normal goal with life insurance is to have your dependents be able to move forward with their lives. This would be after your income has came to a stop. Many people believe that after your outstanding debt has been paid off, that is it. Unfortunately, your family members will still have future expenses. Such as food related expenses, multiple insurance premiums to pay, education costs, clothing, medical expenses and so forth.
The object is to apply for enough coverage in the form of a face amount to supply your dependents with enough money to get the job done. Too high of a face amount will cause you to have a higher premium than you need to be paying.
This takes careful consideration to produce the most applicable number. Feel free to use our face amount calculator to help you.
Choose the most beneficial plan design for your specific needs.
2. What plan design to purchase is also going to be a very important decision. You don’t want to make any mistakes here because it can come back to haunt your dependents later. Term life insurance is a temporary policy design that terminates at a specific point in time. Universal life is a permanent plan that will never end. Whole Life has become an obsolete form of life insurance because of its very high cost. I would definitely not recommend Whole Life Insurance. The most important event you want to eliminate is outliving the term period on a Term life policy. Then having no life insurance at all when you still need it. Your health could change and you might not be able to purchase replacement life insurance.
You can purchase Term life insurance for the most financially volatile years. You will then have a higher face amount along with the low cost of Term life insurance. The addition of a smaller Universal life policy to carry you through the rest of your life. This is a great option to give you a well-rounded life insurance package at the lowest cost. You can use our quote engine to display immediate life insurance quotes. Comparing Term life insurance quotes online is quick and easy.
Learn how to use life insurance rate bands to save you money.
3. Use life insurance rate bands to your best advantage. Most consumers never heard of life insurance rate bands. Rate bands are discounts in the premium for various levels of face amounts. Such as $100,000 – $249,000, $250,000 to $499, $500,000 – $999,000 and so forth. The larger the face amount the more of a discounted rate you can receive if you work the rate bands properly.
For example, if you wanted a $200,000 face amount it could be cheaper to purchase $250,000 instead. This is because you would be taking advantage of the next rate band discount. Many people have purchased a $200,000 face amount policy where they could have purchased an additional $50,000 for less money.
Laddering your policies can drastically lower your annual premiums.
4. Consider laddering your life insurance policies. Here is another term I am sure you never heard of before. Laddering is a technique used to create a life insurance portfolio out of more than one life insurance policy. This can reduce your premiums year by year. Here is a simple example so this does not get confusing.
Joe Brown is 25 years old needs life insurance to cover him for a 30-year period of time. He wants to be able to cover his $400,000 20-year mortgage and also his two son’s college tuitions. He will have to pay the tuition in about 18 years plus a few other assorted smaller debts. Joe purchases a 20-year Term life insurance policy with a face amount of $750,000. He also purchases a 30-year Term life insurance policy for $250,000. After Joe pays off the bulk of his debt in 20 years which would include the mortgage. He will have a smaller $250,000 Term life insurance policy that will carry on for another 10 years.
This will cover the financial responsibility of his son’s college tuition. Along with some other debt from car loans, funeral costs and so on. This will cost less than just having a $1,000,0000 Term life policy for 30-years. Especially when he will not need a full $1,000,000 face amount after the first initial 20-years.
Connect with an experienced independent agent to help you.
5. Connect with an experienced independent life insurance agent to help you every step of the way. Hold everything, I made a mistake. I should have had step 5 first on the list, it is that important! Without the help of a professional, you could become more and more confused by the minute. Your life insurance professional can direct you to the best plan design in a very short time. He can see to it that you are going to receive the lowest premiums you could possibly receive. I would also recommend an agent that specializes in life insurance. Working with life insurance on a daily basis gives you the knowledge to find the best life insurance rates.
Life insurance plan designs change on a regular basis and so do the quoting rates. A professional can keep up with the changing market to know what product would be the best choice for you. There is no cost or obligation to have an independent agent help you.
Choosing the most applicable life insurance company is critical.
6. Choose the best life insurance companies for your specific age, health status and lifestyle. Choosing the correct life insurance company is critical when shopping the life insurance market. Life insurance is definitely not a one size fits all type product. Always remember that all life insurance companies underwrite their applications differently.
A specific company may be perfect for Sarah who is 35 years old and has Type 2 Diabetes. Dave age 50, drives a ¼ mile race car who have a better fit with another company. Age, health conditions, smoking status, hazardous sports, hazardous occupations, driving records, height & weight. Are all factors that will be observed by the life insurance companies differently.
The most applicable carrier has to be chosen if you are ever going to receive the lowest rates possible. This also holds true for high risk life insurance as well.
Considering life insurance with no medical exam.
7. Applying for a Non-Med vs. Full-Medical underwriting is also a factor to consider if you have medical conditions. Sometimes not taking a physical exam from a Para-Med nurse might be an advantage. Especially over the full underwriting process when you have pre-existing medical conditions. This decision needs to be made on a case by case basis. Our office would run a simple medical pre-screen to decide what would be your best choice in plan designs. Your identity is never given to any life insurance companies when we run a pre-screen. Pre-screens can definitely put you on track to get the best life insurance rates.
As a simple rule of thumb, going the full underwriting route will produce the best life insurance rates. The underwriting time can be 4-6 weeks but the end result will normally reflect the best life insurance rates. No medical exam life insurance can also at time result in the best life insurance rates with no medical exam. No exam life insurance can be approved within 24-48 hours. One of our favorite companies for these plan designs is the Lincoln National Life insurance company.
Using life insurance companies you never ever heard of before.
8. Life insurance companies without a big reputation can in most times offer the lowest rates. Most people just think of Prudential, MetLife, New York Life, John Hancock and a few others. In fact, many companies that you probably never heard of will offer the lowest rates. They will also be a financially stable highly rated life insurance company. Some of these companies would be Banner Life, SBLI (Savings Bank Life Insurance), Lincoln Financial, Protective Life, Transamerica and others. These companies are in great financial condition, well managed and growing like a weed. Some of the best life insurance companies are the ones you never heard of.
The best part is they will display some of the lowest rates in the life insurance industry. Just because you never heard of them does not mean they are not competitive. Or, they do not have some of the best life insurance rates. We utilize well over 40 of the most competitive life insurance companies. This is to make sure we can thoroughly shop the market for the lowest premiums for our applicants. Check out our Top 12 Companies in America blog post for more information.
If you smoke, stop smoking a soon as possible. You will never get the best life insurance quotes is you smoke.
9. Stop smoking if you currently smoke and then apply for life insurance. This will take at least one year to get non-smoker rates. Life insurance rates can easily be triple or more for smokers. You can also purchase your life insurance now and then quit smoking later. Then after one year you can contact your life insurance company. They can change your rates to a non-smoker rate class. This way your family will have the protection of the life insurance right now.
If for some reason your health changes for the worse you will have your life insurance in force. New health conditions will not raise your rates or prevent you from buying life insurance all together. You can read our life insurance for smokers blog post for more information on the subject. Stopping smoking will not just save you over a 200% increase in your rates, it will allow you to life a better and longer life. The dangers of smoking is the most important reason to quit. Smoking puts you in a high risk life insurance classification which is worse than most health conditions.
If you are overweight, try to lose weight as soon as you possibly can.
10. If you are overweight lose some weight as soon as possible. Being overweight is treated just like a serious health condition. Not only will being overweight cause you to be placed in a higher rate category. It could easily prevent you from purchasing your life insurance all together. Many applicants do not realize how important your height and weight is when applying for life insurance. Read about the many health related dangers to becoming overweight or obese.
As our blog post will show you, being overweight or obese is one of the leading causes of deaths. From either heart attacks or strokes that could especially be fatal. If you apply right now and are approved with an obesity rating which will increase the premium. You can work to lose weight and then contact your life insurance company for reconsideration. You will have to prove with medical records that you lost weight and kept if off for at least one year.
Don’t delay the purchase of your low cost Term life insurance application because your overweight.
The only problem with delaying the purchase of life insurance. Is something could happen to you while you are waiting to apply. Or else your health history could change putting you in an uninsurable market. You can always loose weight and then contact your insurance company for reconsideration.
If you are planning on purchasing life insurance, the best move you can make is lock in your rates asap and do not procrastinate applying for life insurance. Waiting like so many people do will only cause you to pay a higher premium. I see this happen on a daily basis and many people wait until they are over 65 years old. Some want to apply after they just received bad news from their doctor. At this point in time it can usually be a hopeless case.
We can help take the confusion out of purchasing life insurance and ensure you receive the best rates.
Shopping for low cost Term life insurance can sometimes seem a little overwhelming. There are a lot of questions to consider and you want to make sure that you’re always making the correct decision. Contact us today and we will answer all your questions over the phone, we’re here to help you. You can find the best online life insurance quotes on our website.
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