Secret #1: Don’t spend too much time on ตัวแทนประกันชีวิต AIA. 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 that apply actually obtain the lowest priced policy. The premium you end up paying has nothing concerning the initial quote you get online or from an agent. It is amazing to me how frequently I see people getting duped by an agent who quotes company X at a lower price than another agent.
life insurance policies are similar price irrespective of whom you purchase from! One agent or website quoting a reduced premium means nothing. Prices for just about any given policy is dependant on your actual age and health. There are a few exceptions to this but which is past the breadth of the article.
Most life insurance companies have 10-20 different health/price ratings and no agent or website can guarantee the quote they give you is accurate. You have to apply, do a health check, then proceed through underwriting (meaning you finish a mini-exam having a nurse at home and so the company checks you doctor records and reviews and ‘rates’ your overall health) to have the real value of the insurance policy. Keep in mind that any adverse health rating also factors inside your family history, driving history, and the kind of occupation you might have. Just use quotes to aid limit your choices to the peak companies. You may want to consider a no load or low policy. The more that you simply save money on commissions the more money builds inside your policy. You may also buy term insurance no load, and save a lot on premiums. You simply will not get the help of a real estate agent, which may be worth something should they be excellent.
The most significant factor determining prices are matching your particular health history with the company best suited for that niche. For instance company X might be ideal for smokers, company Y for cancer survivors, Company Z for those who have hypertension, etc.
Secret #2: Disregard the hype on term versus cash value permanent insurance. You are able to go crazy reading what all of us have to say on buying term insurance versus an entire or universal life policy. Big name websites give suggest that I think borders on fraudulent. To put it simply there is absolutely no simple answer on whether you should purchase permanent cash value policies or term insurance.
But I do think there is a simple principle – buy term for the temporary insurance needs and cash value insurance to your permanent needs. I have read in a variety of journals and run mathematical equations myself which basically show that in case you have a requirement for insurance beyond twenty years that you need to consider some level of permanent insurance. This is due to the tax benefit from the growth of the cash value within in a permanent policy. I am just divorced and also have cared for my children should I die. I probably will no longer need as much insurance because i will have. I actually have earned a fantastic return on my policies and have paid no taxes. I no longer spend the money for premiums, since there is a great deal money in the policies. I enable the policies pay themselves. I would not call most life insurance a wise investment. Because I bought my policies correctly, and paid almost no sales commissions my policies are most likely my best investments. I no longer own them, so when I die my beneficiaries will get the amount of money both tax free, and estate tax free.
Since most people have short term needs such as a mortgage or children at home they should find some good term. Additionally many people want some life insurance in place for his or her entire life to pay for burial, assist with unpaid medical bills and estate taxes and thus a lasting policy ought to be purchased together with the term policy.
Secret #3: Consider applying with two companies at once. life insurance companies really don’t like this “trick” because it provides 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 get them for any multi company quote showing the best prices alongside. Some people try to cut the agent out and just apply online. Just remember that you don’t save any cash this way because the commissions normally earned through the agent are simply kept by the insurer or even the website insurance carrier without having your premium lowered.
Plus a good agent may help you maneuver through a few of the complexities of completing the application form, putting together your beneficiaries, avoiding mistakes on selecting who should be the owner, the easiest method to pay your premium, and also will be there to deliver the check and assist your loved ones if the life insurance is ever used.
Secret #5: Consider refinancing old life policies. Many businesses won’t let you know however the price you spend on the old policies has probably fall dramatically should you be in good condition. In the last few years life insurance companies have updated their predictions on how long individuals will live. Since we are living longer these are reducing their rates rather dramatically. Beware the agent could be carrying this out to acquire a new commission, so ensure it really is sensible.
I truly am impressed by how many times we find which our client’s old policies are doubly expensive as a new one. Should you need new life insurance consider “refinancing” your old policies and using the savings on the old policies to cover the newest policy – that way there is no extra out-of-pocket costs. We love to consider this method as “refinancing your life insurance” – just like you refinance your mortgage.
Secret #6: Realize life insurance companies have target niches that constantly change. 1 day company ‘X’ is giving good rates to people who are a little overweight as well as the the following month they may be super strict. Company ‘Y’ may be lenient on individuals with diabetes simply because they don’t have several diabetics on the books – meaning they will likely give good rates to diabetics. Simultaneously company ‘W’ may be very strict on diabetics because they are insuring lots of diabetics and therefore are afraid they may have too large of a risk in this area – meaning they will provide a bad rate to new diabetics who apply.
Unfortunately when you find yourself applying a life insurance provider will not let you know, “Hey, we just raised our rates in diabetics.” They will likely just happily take your cash if you were not smart enough to look around. Here is the number 1 area a smart agent are available in handy. Since a good multi-company agent is consistently applying with multiple companies they will have a great handle on who may be typically the most lenient on underwriting for you particular situation. The problem is that this can be effort and several agents are generally too busy or otherwise not established to efficiently shop around directly to different underwriters and see who would make the finest offer. This can be a lot harder than just running you a quote online.
Secret #7: Don’t forget customer care. Most people looking for insurance give attention to companies with all the lowest price and also the best financial rating. Unfortunately I understand of some A rated companies with rates that are low who I would not touch using a ten foot pole mainly because it’s much 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 person a fantastic rate but 24 months later the customer called me and said, “I actually have mailed in all my payments punctually but got a notice saying my policy lapsed.” It proved the business had been making a lot of back office mistakes and had lost the premium payment!
We could actually fix it because we caught the situation so early. But if the client happened to possess died through the short period the policy had lapsed, his family may have had a hard time proving that the premium was paid on time plus they may not have obtained the lifestyle insurance money – a loss in thousands and thousands of dollars if so.
Secret #8: Apply 3-six months in front of the time you require the insurance policy if at all possible. Don’t be in a hurry to obtain a policy if you currently have some coverage in force. But go ahead and apply straight away knowing that you might need months to shop around in the event the first company fails to provide you with a good rate. However the life insurance sector is getting more automated the application will still often be held up for weeks or months while the insurer waits on the doctor’s office to mail them a copy of yourself medical records.
If you are in a hurry and buy a quickie ‘no-underwriting’ policy without experiencing the complete health checks and underwriting that a mainstream life insurance company requires, you are going to end up paying 20%-50% more because the insurer will automatically charge you higher rates because they don’t know regardless if you are healthy or planning to die the following day.
Secret #9: Avoid buying extra life insurance through work if you are healthy. I am sure there are exceptions for this “trick” however i have rarely found one. By all means maintain the free life insurance your employer provides. But in case you are healthy and also you are spending money on supplemental life insurance through payroll deduction you might be almost definitely paying too much. What exactly is happening is that your ‘overpayments’ ends up subsidizing the unhealthy folks your organization who are buying life insurance through payroll deduction.
Usually the life insurance company has cut an agreement along with your employer and will waive the required health exam for all employees – instead they only average the price for all the employees and provide 1 or 2 rates for males or females at any age. life insurance companies know they will pick up lots of unhealthy clients in this way so they jack 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 get through work will receive more expensive as you get older.
Also group life insurance is usually not portable when you retire or change jobs which means once you retire or change jobs you might have to use once again even though you is going to be older and in all likelihood not as healthy and risk being rejected for a policy. When the group plan does allow portability they generally limit your conversion choices and force you to go into expensive cash value plans.
I recall helping someone evaluate his supplemental life insurance. He was sure it absolutely was a better deal than any policy I could find him. Little did he realize that the cost of his group plan would rise each and every year? When he retired his premium would have risen to over $10,000/year. I came across him an insurance plan for approximately $1000/year that could never rise. Also, unlike his old group life policy, he could take the person policy with him when he changed jobs or retired.
Secret #10: Conduct a trial application on the COD payment basis. Only send cash with the application if you want the life span insurance policy coverage immediately. Sending a check with the application is actually a traditional practice agents used to do – I do believe mostly as it got them their commissions faster. If you send cash with an application you normally get temporary coverage immediately however, if you have plenty of coverage and they are just trying to get better rates ask your agent to do a trial application on the COD basis which means you just pay when the policy is approved. If you do not send money, and you also die before spending money on the policy there is no coverage.
Secret #11: Wear your shoes when the nurse measures your height. Once the ตัวแทนประกัน AIA sends the nurse to perform your health check try to be as tall as you can in case you are overweight? Generally in most states you are permitted to wear shoes and in case you are just a little overweight your taller height/weight ratio can look just a little better to the underwriter who may be rfzqsse your health rating and policy price. Also do your exam early in the morning with no food in you – this makes your cholesterol count and various health ratios look the very best.
Secret #12: Be careful with extra perks and riders. Most policies come with options like accidental death benefit, child riders, disability riders, return of premium etc. If you do the math on many of these “extras” they generally don’t make smart financial sense. life insurance companies are out to generate money and those riders are often profitable since they either cover something that rarely happens or they may be so stringent the 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 great agent can help you weigh the benefits of the additional riders. But be suspicious of your agent who attempts to tack on every possible extra rider.