1. Don’t wait till you REALLY NEED the coverage! By that time you’ll be
that much older, you’ll be sick or you will have encountered a health issue
that will cause your premiums to be significantly more than you anticipated.
That is of course if you can even qualify for the coverage!
2. The highest financial rating doesn’t necessarily mean better coverage.
The important thing is to at least be looking at an “A” rated company. There is
little, if any difference between one company's term policy and another, so
basing a decision solely on ratings won’t always get you best deal. The highest
rated companies tend to be more conservative in their underwriting and
attaining the “best available” with them will be a bit more difficult.
3. Shop online first before you meet individually with an agent! Many
online life insurance brokerage companies can be a useful source of information
and can save you up to 75% on your premiums. The reason is of course because
they are impartial and are not driven to sell you only one company’s product.
4. Pay annually if you can afford it. Paying annually can save you up to
20% with some companies versus monthly, quarterly or semi-annually.
5. Don’t smoke. If you are trying to save money then being a smoker won’t
help your cause. However, if you do smoke, most companies will let you re-apply
for nonsmoker rates if it has been at least 1 full year from your last usage.
6. If you have cholesterol or blood pressure issues get it controlled
with medication. Insurance companies don’t like to see health issues go
unattended. If you are doing something to control it they will likely look at
that favorably and give you the benefit of the doubt when it comes to approval
time.
7. If you are considering buying $90,000 of coverage, buy $100,000
instead. Many times it will cost less, the same or just a tad more for
additional coverage. Insurance companies may give breakpoints at $100,000,
$250,000, $500,000, $750,000 and $1,000,000.
8. Read the “Prepare for the Medical Exam” section before completing your
exam. Eating a few Twinkies or calling your stockbroker a half hour before your
exam will surely turn your lab results sour and cost you big time!
9. Obtaining coverage through your company’s plan may be a good
alternative…in the short-run. Many employer’s plans however are not portable
and won’t let you continue your coverage if you leave. If you need coverage
then, you’ll have to apply for an individual policy anyway. Don’t leave it to
your employer to take care of you!
10. If you’re 30 ½ years old, you’re as old as 31 in the eyes of the
insurance company. Most insurance companies round up when determining your age
and because premiums increase with age that can make a big difference. So, if
you’re approaching 30 ½ and you have thoughts of applying, don’t wait!