Secret #1: Don’t spend too much time on ตัวแทนประกันชีวิต. Do not be fooled by the low price quotes you get online – they don’t apply to you unless you are extremely healthy. Statistically only 10% of people who apply actually get the lowest priced policy. The premium you end up paying has nothing related to the initial quote you get online or from an agent. It is amazing to me how many times I see people getting duped by an agent who quotes company X at a lower price than another agent.
life insurance policies are identical price irrespective of whom you purchase from! One agent or website quoting a lower premium means nothing. Prices for any given policy is dependant on your age and health. There are some exceptions for this but which is beyond the breadth of this article.
Most life insurance companies have 10-20 different health/price ratings with no agent or website can guarantee you the quote they give you is accurate. You must apply, do a health check, and then proceed through underwriting (meaning you complete a mini-exam using a nurse in your house and therefore the company checks you doctor records and reviews and ‘rates’ your health) to have the real value of the policy. Remember that a health rating also factors inside your family history, driving record, and the sort of occupation you might have. Just use quotes to aid define your options to the very top companies. You may want to think about a no load or low policy. The greater that you save money on commissions the more money builds inside your policy. You can even buy term insurance no load, and save a whole lot on premiums. You simply will not get the assistance of an agent, which might be worth something if they are great.
The most significant factor determining price is matching your unique health history with the company best suited for that niche. For instance company X might be best for smokers, company Y for cancer survivors, Company Z for those who have elevated blood pressure, etc.
Secret #2: Ignore the hype on term versus cash value permanent insurance. You can go crazy reading what everyone has to say on buying term insurance versus a whole or universal life policy. Big name websites give suggest that I do believe borders on fraudulent. To put it simply there is NO simple answer on whether you should buy permanent cash value policies or term insurance.
But I do think there is a simple guideline – buy term for your temporary insurance needs and cash value insurance to your permanent needs. We have read in various journals and run mathematical equations myself which basically reveal that in case you have a need for insurance beyond two decades that you need to consider some amount of permanent insurance. This is a result of the tax benefit from the development from the cash value within in a permanent policy. I am divorced and possess taken care of my children must i die. I probably will no longer need just as much insurance as I now have. I actually have earned a fantastic return on my policies and have paid no taxes. I no longer pay the premiums, since there is so much money in the policies. I allow the policies pay themselves. I might not call most life insurance a great investment. Because I got my policies correctly, and paid very little sales commissions my policies are most likely my best investments. I no longer own them, when I die my beneficiaries can get the money both tax free, and estate tax free.
Since most people have short-term needs such as a mortgage or children at home they need to find some good term. Additionally a lot of people want some life insurance in position for his or her whole life to fund burial, assistance with unpaid medical bills and estate taxes therefore a lasting policy needs to be purchased along with the term policy.
Secret #3: Consider applying with two companies simultaneously. life insurance companies really don’t like this “trick” since it presents them competition and increases their underwriting costs.
Secret #4: Avoid captive life insurance agents. Search for a life insurance agent who represents at least fifty life insurance companies and inquire them for any multi company quote showing the most effective prices side by side. Some people try to cut the agent out and merely apply online. Keep in mind which you don’t save any money like that because the commissions normally earned through the agent are simply kept by the insurer or perhaps the website insurance carrier without having your premium lowered.
As well as a good agent will help you maneuver through a number of the complexities of submitting the application, putting together your beneficiaries, avoiding mistakes on selecting who needs to be the owner, the easiest method to pay your premium, and in addition is going to be there to provide the check and assist your family when the life insurance is ever used.
Secret #5: Consider refinancing old life policies. A lot of companies won’t tell you however the price you have to pay on your own old policies has probably come down dramatically in case you are in good condition. In recent years life insurance companies have updated their predictions regarding how long men and women will live. Since our company is living longer these are reducing their rates rather dramatically. Beware the agent might be accomplishing this to acquire a new commission, so make sure it is sensible.
I seriously am impressed by how often we discover which our client’s old policies are twice as expensive as a replacement. If you need new life insurance consider “refinancing” your old policies and ultizing the savings on the old policies to pay for the newest policy – like that there is not any extra out-of-pocket costs. We like to think of this procedure as “refinancing your daily life insurance” – such as you refinance your mortgage.
Secret #6: Realize life insurance companies have target niches that constantly change. Some day company ‘X’ is giving good rates to individuals who are a bit overweight and also the next month they may be super strict. Company ‘Y’ may be lenient on individuals with diabetes since they don’t have several diabetics on the books – meaning they will likely give good rates to diabetics. Simultaneously company ‘W’ might be very strict on diabetics as they are insuring lots of diabetics and therefore are afraid they may have too large of the risk in that area – meaning they will likely offer a bad rate to new diabetics who apply.
Unfortunately if you are applying an existence insurance carrier will not inform you, “Hey, we just raised our rates in diabetics.” They are going to just happily take your money should you be not smart enough to look around. This is actually the number 1 area a smart agent comes in handy. Since an excellent multi-company agent is consistently applying with multiple companies she or he will have a very good handle on that is currently the most lenient on underwriting for you particular situation. However , this can be effort and several agents are generally too busy or otherwise not established to efficiently check around right to different underwriters and discover who would make the finest offer. It is a lot harder than simply running you a quote online.
Secret #7: Don’t forget customer care. A lot of people shopping for insurance give attention to companies using the lowest price and also the best financial rating. Unfortunately I know of some A rated companies with rates that are low who I would personally not touch using a ten foot pole mainly because it’s easier to give birth to some porcupine backwards then it is to obtain customer care from them.
Before I understood this I used a life insurance company that gave a customer a fantastic rate but 2 years later the customer called me and said, “We have mailed in most my payments on time but got a notice saying my policy lapsed.” It turned out the organization had been making plenty of back-office mistakes and had lost the premium payment!
We had the ability to correct it because we caught the issue so early. However, if the client happened to possess died throughout the short period the policy had lapsed, his family may have had difficulty proving that the premium had been paid on time plus they might not exactly have received the lifestyle insurance money – a loss of thousands and thousands of dollars if so.
Secret #8: Apply 3-6 months in front of the time you require the insurance if possible. Don’t be in a hurry to get a policy if you currently have some coverage in force. But go ahead and apply right away knowing which you may need months to purchase around when the first company will not provide you with a good rate. Even though the life insurance sector is getting more automated your application will still often be held up for weeks or months while the insurer waits on your own doctor’s office to mail them a copy of you medical records.
In case you are in a hurry and get a quickie ‘no-underwriting’ policy without going through the entire health checks and underwriting that the mainstream life insurance company requires, you will end up paying 20%-50% more because the insurance company will automatically charge higher rates because they don’t know if you are healthy or going to die the very next day.
Secret #9: Avoid buying extra life insurance through work should you be healthy. I am certain you will find exceptions to this “trick” however i have rarely found one. By all means keep your free life insurance your employer provides. But if you are healthy and also you are spending money on supplemental life insurance through payroll deduction you are almost certainly paying too much. What is happening is that your ‘overpayments’ winds up subsidizing the unhealthy people in your business who definitely are buying life insurance through payroll deduction.
Usually the life insurance company has cut an agreement together with your employer and can waive the desired health exam for those employees – instead they only average the price for the employees and provide a couple of rates for males or females at any age. life insurance companies know they are going to pick-up plenty of unhealthy clients this way so they jack up the price on everyone so that the healthy people end up overpaying so the unhealthy employees obtain a cheaper policy. Also, unlike the guaranteed term policies which we recommend, most life insurance you purchase through work will receive more costly as you grow older.
Also group life insurance is generally not portable once you retire or change jobs which means when you retire or change jobs you could have to use over again even when you will be older and possibly not as healthy and risk being turned down for any policy. In the event the group plan does allow portability they generally limit your conversion choices and make you get into expensive cash value plans.
I remember helping someone evaluate his supplemental life insurance. He was sure it had been a much better deal than any policy I was able to find him. Little did he realize that the cost of his group plan would rise each and every year? Once he retired his premium might have risen to over $10,000/year. I found him an insurance policy for about $1000/year that will never increase. Also, unlike his old group life policy, he might take the person policy with him when he changed jobs or retired.
Secret #10: Do a trial application on a COD payment basis. Only send cash with the application if you want the lifestyle insurance policy straight away. Sending a consult with the applying is really a traditional practice agents used to do – I do believe mostly as it got them their commissions faster. Should you send money with a software you typically get temporary coverage immediately but if you currently have plenty of coverage and are just looking to get better rates ask your agent to do a trial application over a COD basis so you pay only once the policy is approved. If you do not send money, and you die before paying for the policy there is no coverage.
Secret #11: Wear your shoes if the nurse measures your height. Once the ตัวแทนประกัน AIA sends out your nurse to accomplish your wellbeing check be as tall as is possible if you are overweight? In many states you can wear shoes and if you are a little overweight your taller height/weight ratio will look a little safer to the underwriter who may be rfzqsse your health rating and policy price. Also do your exam early in the morning without food inside you – this may cause your cholesterol count and various health ratios look the best.
Secret #12: Be careful with extra perks and riders. Most policies have options like accidental death benefit, child riders, disability riders, return of premium etc. If you do the math on most of these “extras” they generally don’t make smart financial sense. life insurance companies are out to earn money and these riders are usually profitable because they either cover a thing that rarely happens or they are so stringent that this benefit never gets paid out. Keep things easy and focus mainly on acquiring a life policy to cover your lifestyle without many strings attached. Again a good agent will help you weigh some great benefits of the additional riders. But be suspicious of an agent who tries to tack on every possible extra rider.