Cheap Life Insurance
I hope by now you realize you need to buy term life insurance.
If you have any intentions of taking care of your family and their best interests, then it should be a non-issue.
Now that we have that settled, let’s talk about how to get the cheapest term life insurance policy possible. We are going to share some ways you can secure better insurance rates from the company and get the protection that your family needs.
Do a Background Check – On Yourself!
On any life insurance application that you complete – other than on a guaranteed issue policy – you will be asked a large number of questions about your health, and just about everything else in your life. It’s important to answer these questions honestly, because the company will investigate all of your answers.
For example, it will do little good to not disclose a certain health condition in hopes of getting a lower premium. Once the condition is discovered, your premium rate will be adjusted accordingly.
So before applying for life insurance, be ready to give factual answers for the following categories:
Your family history – You should be prepared to provide serious health conditions of the members of your direct family line. That can include parents, siblings, and even children, as all can indicate the presence of genetic issues. If your parents died young from health conditions then you may be in for higher rates.
Your occupation. Some occupations are considered to be hazardous by the insurance industry. Insurance companies will charge a higher premium as a result. This is something that you will want to discuss with your insurance broker, so you can decide the best companies to apply to.
Health conditions. Think carefully that any health conditions that you have, even if you don’t think they are serious. This can include high blood pressure, high cholesterol, or a previous bout with cancer. It’s always better to disclose these conditions, than to ignore them and hope that the insurance company won’t find out.
Your weight. They’re going to weigh you so there’s no point in giving an optimistic number on the application.
What you do for fun. If you have any potentially hazardous extracurricular activities, you’ll have to disclose these as well. Insurance companies do have an issue with people who are into skydiving, deep-sea diving, or flying a private plane. If you don’t disclose it, and the insurance company finds out about it later, they could void your policy.
Bad habits. This includes smoking, excessive alcohol consumption, and drug use. What you think of as only an occasional habit, can classify you as a higher risk. If you have any these habits, it may be best to drop them before applying for life insurance, if getting the lowest possible rate is your overriding concern. Otherwise, disclose them to your broker so he can find the best companies to apply to.
Your driving record. A history of traffic accidents, police citations, and especially DWI/DUI episodes will matter for insurance purposes. Information is readily available through databases, and the insurance company will check.
Your Credit History – I know it seems crazy to think that your credit is a factor in an insurance decision, but statistics do not lie. Life insurance companies have determined that people who have better credit not only pay their premiums on time but also take fewer risks and are less likely to need to make a claim on their life insurance.
Each of these will have an effect on the premium that you will be charged for your insurance policy. Be honest up front, that way we can direct you to the insurance companies that will take the most favorable view your specific situation.
Because just about every insurance policy requires a medical exam (minus a no-exam policy) the agent will your pre-existing conditions. Not only will lying just cause more problems and slow the whole insurance process down, but there could be some serious consequences of lying on your life insurance application.
If you are dishonest about any health conditions that you have and you’re accepted for coverage without disclosing that information, there is a chance that the insurance company could refuse to pay out on the policy. Hiding the truth could cost your family thousands of dollars and leave them without the resources they thought they were going to have. If you feel your health will cause you to not pass the traditional medically underwritten life insurance policy, there are other options out there such as a guaranteed acceptance life insurance plan.
Additional Ways To Save Money on Your Term Life Insurance Policy
Here are some additional tips to keep you from paying too much:
Buy while you’re healthy. Life insurance is one of those things that we often tell ourselves that we’ll buy “later”. But later can bring about the onset of health conditions that will make your policy more expensive. If you’re healthy now, then now is the time to get your life insurance.
Avoid up-sells. There are a host of policy riders that can be added on just about any life insurance policy. They have benefits, but they will raise the cost of your insurance. For that reason, you’ll want to keep them to a minimum.
Bundle – IF it will save you money. You can sometimes save money on your insurance policies by bundling them together. Just make sure that you aren’t paying too much for one type of coverage so that you can save on another. If the company that you have your auto insurance and homeowner’s insurance through also offers life insurance, you could save a huge chunk by buying it through the same company.
Make sure the insurance company is reputable. You should make sure that the company is rated “A” or better through a ratings agency such as A.M. Best. It will do you little good to have the cheapest life insurance policy, if the company won’t stick around long enough to pay a claim.
How much Life Insurance do you need?
Before you can buy life insurance, you need to know how much coverage you need. Not knowing your life insurance needs is like going on a road trip with no destination in mind. We can help you decide how much life insurance you need.
The first and most obvious impact is how much you’re going to pay in monthly premiums. The larger the policy, the more that you pay every month. You have to find the balance of having enough coverage for your family, but not paying for more coverage than you need.
The next thing you need to consider is your debt. You want to make sure that your family has enough money to pay off all of the debt that you would leave behind. Before you purchase a policy, sit down and calculate all of your debt. Add up your mortgage, car payments, student loans, and other debts.
Additionally, you need to consider your salary. One of the other common uses for a life insurance policy is to replace your income if you passed away. Make sure your family will have the money to replace your monthly paycheck.
Just imagine what would happen if you didn’t add up your life insurance needs. It would leave them with leftover expenses and bills that are going to make the situation a lot worse.