Secret #1: Don’t spend a lot of time on ตัวแทนประกัน 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 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 similar price no matter whom you buy from! One agent or website quoting a lower premium means nothing. Prices for just about any given policy is based on how old you are and health. There are several exceptions to this but that is past the breadth of this article.
Most life insurance companies have 10-20 different health/price ratings without any agent or website can assure you the quote they offer you is accurate. You must apply, conduct a health check, then proceed through underwriting (meaning you complete a mini-exam with a nurse in your house and then the company checks you doctor records and reviews and ‘rates’ your overall health) to have the real cost of the plan. Understand that a health rating also factors within your family history, driving record, and the type of occupation you have. Just use quotes to help limit your alternatives to the peak companies. You might want to look at a no load or low policy. The better that you spend less on commissions the better money builds up 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 might be worth something should they be great.
The most crucial factor determining cost is matching your specific health history using the company most suitable for the niche. For instance company X might be ideal for smokers, company Y for cancer survivors, Company Z for people with hypertension, etc.
Secret #2: Disregard the hype on term versus cash value permanent insurance. It is possible to go crazy reading what everyone has to say on buying term insurance versus an entire or universal life policy. Big name websites give advice that I do believe borders on fraudulent. In other words there is NO simple answer on whether you should purchase permanent cash value policies or term insurance.
But I do think there is a simple rule of thumb – buy term for the temporary insurance needs and cash value insurance to your permanent needs. We have read in various journals and run mathematical equations myself which basically demonstrate that if you have a need for insurance beyond two decades that you need to consider some quantity of permanent insurance. This is because of the tax benefit of the expansion of the cash value within in a permanent policy. I am just divorced and have looked after my children should I die. I probably will no longer need just as much insurance when i will have. I have earned an excellent return on my own policies and possess paid no taxes. I no more pay the premiums, because there is a great deal cash in the policies. I allow the policies pay themselves. I would personally not call most life insurance a wise investment. Because I purchased my policies correctly, and paid almost no sales commissions my policies are most likely my best investments. I will no longer own them, when I die my beneficiaries can get the money both tax free, and estate tax free.
Since most people short term needs like a mortgage or children at home they need to find some good term. Additionally many people want some life insurance in position for their entire life to fund burial, help with unpaid medical bills and estate taxes therefore a lasting policy needs to be purchased combined with the term policy.
Secret #3: Consider applying with two companies at once. life insurance companies really don’t similar to this “trick” as it presents them competition and increases their underwriting costs.
Secret #4: Avoid captive life insurance agents. Search for a life insurance agent who represents a minimum of fifty life insurance companies and ask them for a multi company quote showing the best prices next to each other. Many people make an effort to cut the agent out and simply apply online. Just remember that you don’t save any money that way because the commissions normally earned by the agent are only kept by the insurer or even the website insurance provider with out your premium lowered.
Plus a good agent will help you maneuver through some of the complexities of filling out the application form, putting together your beneficiaries, avoiding mistakes on selecting who needs to be the owner, the best way to pay your premium, as well as will likely be there to offer the check and assist your family if the life insurance is ever used.
Secret #5: Consider refinancing old life policies. Most companies won’t let you know but the price you have to pay on your own old policies has probably fall dramatically if you are in good condition. In the last few years life insurance companies have updated their predictions on how long people will live. Since we are living longer they may be reducing their rates rather dramatically. Beware the agent could be carrying this out to obtain a new commission, so ensure it is sensible.
I seriously am amazed at how frequently we discover that the client’s old policies are two times as expensive as a replacement. If you want new life insurance consider “refinancing” your old policies and using the savings on the old policies to fund the new policy – that way there is not any extra out-of-pocket costs. We love to to think of this procedure 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 those who are a little overweight and also the next month they may be super strict. Company ‘Y’ may be lenient on people who have diabetes simply because they don’t have numerous diabetics on the books – meaning they are going to give good rates to diabetics. Simultaneously company ‘W’ could be very strict on diabetics because they are insuring plenty of diabetics and therefore are afraid they have too large of any risk in that area – meaning they will offer a bad rate to new diabetics who apply.
Unfortunately when you find yourself applying a life insurance carrier will never tell you, “Hey, we just raised our rates in diabetics.” They are going to just happily take your money had you been not smart enough to shop around. This is the primary area a smart agent can come in handy. Since a good multi-company agent is continually applying with multiple companies he or she will have a great handle on who is typically the most lenient on underwriting for you particular situation. However , this can be work and many agents may be too busy or not set up to efficiently shop around straight to different underwriters and discover who would make you the greatest offer. It is a lot harder than merely running you with a quote online.
Secret #7: Don’t forget customer care. Many people looking for insurance focus on companies using the lowest price and the best financial rating. Unfortunately I am aware of some A rated companies with reduced rates who I would not touch with a ten foot pole simply because it’s simpler to give birth to your porcupine backwards then it is to have customer service from their store.
Before I understood this I used an existence insurance carrier that gave a client a fantastic rate but 2 years later the client called me and said, “I actually have mailed in most my payments on time but got a notice saying my policy lapsed.” It been found the organization was making lots of back-office mistakes and had lost the premium payment!
We were able to remedy it because we caught the issue so early. But if the client happened to get died through the short period the insurance policy had lapsed, his family could have had difficulty proving that this premium was paid on time and they also might not exactly have obtained the lifestyle insurance money – a lack of hundreds of thousands of dollars in that case.
Secret #8: Apply 3-6 months ahead of the time you need the insurance policy when possible. Don’t be in a hurry to acquire a policy if you currently have some coverage in force. But go ahead and apply immediately knowing which you may need months to look around in the event the first company fails to provide you with a good rate. Even though the life insurance industry is becoming more automated your application will still regularly be held up for weeks or months while the insurer waits on your doctor’s office to mail them a duplicate of yourself medical records.
If you are in a hurry and purchase a quickie ‘no-underwriting’ policy without dealing with the full health checks and underwriting that the mainstream life insurance company requires, you will end up paying 20%-50% more because the insurer will automatically charge higher rates simply because they don’t know if you are healthy or about to die the next day.
Secret #9: Avoid buying extra life insurance through work should you be healthy. I am certain there are exceptions to this particular “trick” however i have rarely found one. Go ahead and keep the free life insurance your employer provides. But if you are healthy and you are spending money on supplemental life insurance through payroll deduction you might be almost certainly paying excessive. What is happening that the ‘overpayments’ winds up subsidizing the unhealthy folks your business who definitely are buying life insurance through payroll deduction.
Normally the life insurance company has cut an arrangement along with your employer and definately will waive the desired health exam for all employees – instead they simply average the cost for the employees and provide 1 or 2 rates for guys or females at any age. life insurance companies know they are going to pick-up a lot of unhealthy clients in this way therefore they jack up the price on everyone so that the healthy people find yourself overpaying so the unhealthy employees obtain a cheaper policy. Also, unlike the guaranteed term policies which we recommend, most life insurance you buy through work will receive higher priced as you get older.
Also group life insurance is normally not portable whenever you retire or change jobs which means that when you retire or change jobs you might have to apply all over again even if you will be older and probably less healthy and risk being rejected to get a policy. In the event the group plan does allow portability they generally limit your conversion choices and force you to get into expensive cash value plans.
I remember helping someone evaluate his supplemental life insurance. He was sure it absolutely was a much better deal than any policy I could find him. Little did he realize that the price of his group plan would go up each and every year? By the time he retired his premium could have risen to over $10,000/year. I discovered him a policy for approximately $1000/year that would 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: Perform a trial application on the COD payment basis. Only send money with the applying if you want the life span insurance coverage right away. Sending a talk with the applying is actually a traditional practice agents employed to do – I think mostly because it got them their commissions faster. If you send money using an application you typically get temporary coverage immediately but when you have plenty of coverage and are just trying to get better rates ask your agent to perform a trial application on the COD basis which means you just pay when the policy is approved. Should you not send money, and you die before spending money on the policy there is absolutely no coverage.
Secret #11: Wear your shoes once the nurse measures your height. If the ตัวแทนประกัน AIA sends out the nurse to do your health check try to be as tall as is possible in case you are overweight? Generally in most states you can wear shoes and should you be a little overweight your taller height/weight ratio will appear just a little preferable to the underwriter who may be rfzqsse your wellbeing rating and policy price. Also do your exam early each morning with no food within you – this makes your cholesterol count as well as other health ratios look the very best.
Secret #12: Be cautious with extra perks and riders. Most policies include 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 which riders are generally profitable because they either cover something which rarely happens or they may be so stringent that the benefit never gets paid out. Keep things easy and focus mainly on acquiring a life policy to protect your life without many strings attached. Again a great agent will help you weigh the benefits of the excess riders. But be wary of your agent who tries to tack on every possible extra rider.