Learning how to apply for life insurance and receiving the lowest rates is not very complicated. You just need a few tips
Shopping for life insurance is a breeze with our modern technology. Nowadays you have the luxury of having online quoting systems, simple telephone applications and the assistance of brokers that represent all the top companies to choose from. You now have all the advantages at your fingertips so you can easily make all the best choices quickly and easily.
Let’s start at the very beginning and go over everything you are going to need to know to get the best policy at the lowest rates possible. You really don’t have to learn how to apply for life insurance because your agent will do 90% of the work for you. All you need to know is the basics of learning how to apply for life insurance and you will be ready to save money.
Connect with an experienced independent agent as soon as possible
This is where it all begins, don’t even bother running quotes on multiple websites because you really won’t know what your actually looking at. If you have any health conditions, this will complicate the process and this is where the agents expertise comes into play. All you will accomplish is getting yourself good and confused. Consulting with a captive agent such as State Farm or Allstate will never land you the lowest rates. They only have one life insurance companies quotes to show you. An independent agent on the other hand will allow you to compare quotes from virtually all the best carriers.
Always be honest and up front with your agent
Your agents job is to help you secure the best policy for the best rates. The more you help him the more he can help you become successful finding the best life insurance plan. If you have any health concerns or are involved in any dangerous sports let him know right up front. There are many elements can can have an effect on your premiums and your agent needs to be aware of them. Many people don’t realize it, but even a hazardous occupation can have an impact on your new rates. This is a time where choosing the most appropriate company will make all the difference in the world. All life insurance companies process their applications differently.
For example, if an applicant smokes cigarettes, they will be issued a smoker rate also know as a tobacco rate. This could easily triple the rates over what a non-smoker would receive. All the companies are going to be more or less sensitive with applicants that use tobacco products. This means the premiums can vary quite a bit between one carrier to another.
What type of life insurance will be my best choice?
Here are your three main types of life insurance products to consider:
- Term life insurance
- Universal life insurance
- Whole life insurance
These are the three main plan designs available. The most common plan design is term life insurance and its cost is much lower than than the other two. Low cost term life insurance will normally be your best choice by far. Permanent life insurance such as universal life is a very good choice too. But, the premiums for universal life will be much higher. The last plan design choice will be whole life which on todays standards is pretty much obsolete. This is to the point where many companies have dropped it from their product line due to the high cost.
What is a medical pre-screen?
The process known as medical pre-screening is very simple and quick. You or your agent simply complete a medical questionnaire form. Your agent then contacts multiple companies to see what carrier will be the best fit for you using the answers to the medical questions. The last mistake you want to make is applying with the wrong company and receiving a poor underwriting decision. This is very common with people that are overweight or obese. Many companies charge a much higher premium for overweight people where another may be much more liberal.
Did you know that life insurance rates are regulated by law?
If you shop around with multiple agents you could very easily be wasting your time and the other agents time also. Nobody can sell the same companies product for more or less than another. This is due to the fact that all life insurance rates are regulated by law. In fact, all insurance rates period are regulated by law also. This includes auto insurance, homeowners, medical insurance, dental insurance and every other kind including commercial business insurance. Many people believe that life insurance rates vary from agent to agent and nothing could be farther from the truth.
Get to know and understand the application process!
Take a few minutes to read our blog post titled understanding the application process. You will learn a lot and feel more comfortable knowing what to expect when you decide to apply. Even though the modern system is simple, it still helps to understand what is going to take place step by step.
Which life insurance companies will have the lowest rates?
We work with over 40 A+ rated companies which all do a great job. One of our favorite companies is the Banner life insurance company. Banner life usually comes through with the lowest rates the majority of the time. There are other good companies such as AIG American General, Lincoln National and Protective Life that are also extremely competitive.
Return of Premium life insurance
Return of premium life insurance is another product to consider. This is a term plan design that pays back 100% of the premium dollars that you paid into the policy. Naturally you have to outlive the term period to be able to collect the money. For example, if a 30 year old man purchases a 20 year return of premium life policy and pays $12,000.00 in premiums across the 20 year period.
The policy terminates upon year 20 and the individual would receive a check back for the full $12,000.00 plain and simple. The Cincinnati insurance company is one of the best companies for return of premium life insurance policies. The premiums are definitely higher for these products but you will get every dime back instead of just giving it to the insurance company.
What are life insurance rate bands?
Just about all consumers never heard of a rate band. Knowing how to use them to your advantage can really help. Using life insurance rates bands to your advantage is a great way to help save money by reducing your premiums. This is a principal of purchasing higher face amounts (death benefits) in order to get discounts. In other words, when you buy in bulk you can get better rates which spells lower premiums.
Purchasing your life insurance online
Let’s not forget about all the money saving advantages of purchasing your life insurance online. The internet is a wealth of information where you can learn about all the different plan designs. This will help you to better decide what plan would fit your needs and budget. You can read about all the companies and get up to date quotes to see who has the best life insurance rates.
Our final word
After reading this post you should have a much better understanding how to apply for life insurance and receive the best rates possible. We understand that life insurance can be a little confusing when you don’t have exposure to it everyday. This is where connecting with an experienced independent agent that specializes in life insurance (like us) comes into play. Jot down all your questions and give us a call 7 days a week and we will be happy to answer all your questions with no cost or obligation.
All the best,