Secret #1: Don’t spend too much time on ตัวแทนประกันชีวิต AIA. Do not be fooled by the low cost quotes you get online – they don’t apply to you unless you are really healthy. Statistically only 10% of individuals 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 often I see people getting duped by an agent who quotes company X at a lower price than another agent.
life insurance policies are the same price irrespective of who you order from! One agent or website quoting a lesser premium means nothing. Prices for virtually any given policy is dependant on your age and health. There are several exceptions to this but that is certainly beyond 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 provide you is accurate. You need to apply, perform a health check, and after that go through underwriting (meaning you complete a mini-exam with a nurse in your home and therefore the company checks you doctor records and reviews and ‘rates’ your overall health) to obtain the real cost of the policy. Understand that a health rating also factors within your family history, driving record, and the kind of occupation you may have. Only use quotes to assist define your alternatives to the very top companies. You may want to look at a no load or low policy. The greater which you save money on commissions the better money increases inside your policy. You may also 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 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 may be best for smokers, company Y for cancer survivors, Company Z for people who have hypertension, etc.
Secret #2: Disregard the hype on term versus cash value permanent insurance. You can go crazy reading what all of us have to state on buying term insurance versus an entire or universal life policy. Big name websites give advice that I think borders on fraudulent. In other words there is not any simple answer on whether you should get permanent cash value policies or term insurance.
But I do think you will find a simple guideline – buy term for your temporary insurance needs and cash value insurance for your permanent needs. I have read in various journals and run mathematical equations myself which basically show that if you have a need for insurance beyond two decades that you ought to consider some level of permanent insurance. This is due to the tax advantage of 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 no longer need the maximum amount of insurance when i have. I have earned a fantastic return on my own policies and have paid no taxes. I no more pay for the premiums, since there is so much money in the policies. I allow the policies pay themselves. I would personally not call most life insurance a good investment. Because I got my policies correctly, and paid very little sales commissions my policies are probably my best investments. I will no longer own them, so when I die my beneficiaries will receive the cash both tax free, and estate tax free.
Since most people have temporary needs such as a mortgage or kids at home they need to find some good term. Additionally most people want some life insurance in position for his or her whole life to fund burial, assistance with unpaid medical bills and estate taxes and thus a lasting policy should be purchased together 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 gives them competition and increases their underwriting costs.
Secret #4: Avoid captive life insurance agents. Choose a life insurance agent who represents a minimum of fifty life insurance companies and inquire them for any multi company quote showing the best prices side by side. Many people try to cut the agent out and just apply online. Keep in mind that you simply don’t save any cash this way as the commissions normally earned through the agent are only kept by the insurance company or the website insurance company without needing your premium lowered.
Plus a good agent may help you maneuver through a few of the complexities of submitting the applying, putting together your beneficiaries, avoiding mistakes on selecting who should be the owner, the simplest way to pay your premium, as well as will be there to offer the check and assist all your family members in the event the life insurance is ever used.
Secret #5: Consider refinancing old life policies. Many businesses won’t let you know but the price you spend on your old policies has probably come down dramatically if you are in good condition. In the last few years life insurance companies have updated their predictions regarding how long people will live. Since we are living longer these are reducing their rates rather dramatically. Beware the agent could be doing this to have a new commission, so make certain it makes sense.
I seriously am amazed at how many times we find that the client’s old policies are twice as expensive as a new one. If you want new life insurance consider “refinancing” your old policies and using the savings on the old policies to fund the brand new policy – that way there is absolutely no extra out-of-pocket costs. We love to to think of this procedure as “refinancing your life insurance” – exactly like 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 people who are just a little overweight and also the next month these are super strict. Company ‘Y’ may be lenient on people with diabetes because they don’t have many diabetics on the books – meaning they will give good rates to diabetics. At the same time company ‘W’ may be very strict on diabetics because they are insuring lots of diabetics and are afraid they may have too big of a risk in this area – meaning they are going to provide a bad rate to new diabetics who apply.
Unfortunately if you are applying a life insurance carrier will never tell you, “Hey, we merely raised our rates in diabetics.” They are going to just happily take your hard earned money had you been not smart enough to look around. This is actually the number 1 area a smart agent comes in handy. Since a great multi-company agent is consistently applying with multiple companies he or she will have a great handle on who is currently the most lenient on underwriting to suit your needs particular situation. However , this is hard work and lots of agents are generally too busy or not established to efficiently shop around right to different underwriters and find out would you make you the greatest offer. This is a lot harder than simply running you with a quote online.
Secret #7: Don’t forget customer service. A lot of people searching for insurance give attention to companies using 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 personally not touch with a ten foot pole mainly because it’s much easier to give birth to your porcupine backwards then its to have customer support from them.
Before I understood this I used a life insurance provider that gave a person a fantastic rate but 24 months later your client called me and said, “I actually have mailed in most my payments promptly but just got a notice saying my policy lapsed.” It been found the organization have been making plenty of back-office mistakes along with lost the premium payment!
We had the ability to remedy it because we caught the problem so early. However if the client happened to get died through the short period the insurance policy had lapsed, his family may have had a difficult time proving that the premium had been paid on time and they also might not exactly have received the life insurance money – a loss of hundreds of thousands of dollars if so.
Secret #8: Apply 3-6 months ahead of the time you require 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 right away knowing that you might need months to shop around in the event the first company fails to give you a good rate. However the life insurance sector is acquiring 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 you medical records.
If you are in a hurry and purchase a quickie ‘no-underwriting’ policy without experiencing the full health checks and underwriting that the mainstream life insurance company requires, you may wind up paying 20%-50% more because the insurance company will automatically charge you higher rates simply because they don’t know if you are healthy or planning to die the following day.
Secret #9: Avoid buying extra life insurance through work in case you are healthy. I am sure there are exceptions for this “trick” but I have rarely found one. By all means keep your free life insurance your employer provides. But if you are healthy and you are paying for supplemental life insurance through payroll deduction you happen to be more than likely paying a lot of. What is happening is your ‘overpayments’ eventually ends up subsidizing the unhealthy individuals your business who definitely are buying life insurance through payroll deduction.
Usually life insurance company has cut a deal with your employer and can waive the required health exam for many employees – instead they simply average the price for the employees and provide 1 or 2 rates for guys or females at any given age. life insurance companies know they will pick-up a lot 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 get a cheaper policy. Also, unlike the guaranteed term policies which we recommend, most life insurance you get through work will get more costly as you get older.
Also group life insurance is usually not portable once you retire or change jobs which means that once you retire or change jobs you could have to utilize once again even though you will likely be older and probably much less healthy and risk being turned down for a policy. When the group plan does allow portability they generally limit your conversion choices and make you go into expensive cash value plans.
I remember helping someone evaluate his supplemental life insurance. He was sure it was an improved deal than any policy I could find him. Little did he know that the buying price of his group plan would increase each year? By the time he retired his premium would have risen to in excess of $ten thousand/year. I found him a policy for about $1000/year that would never go up. Also, unlike his old group life policy, he could take the patient policy with him as he changed jobs or retired.
Secret #10: Do a trial application over a COD payment basis. Only send money with the application form should you need the life insurance policy coverage right away. Sending a talk with the application form is a traditional practice agents employed to do – I do believe mostly because it got them their commissions faster. If you send money with an application you normally get temporary coverage immediately however, if you currently have a lot of coverage and therefore are just trying to get better rates ask your agent to perform a trial application on the COD basis so you only pay when the policy is approved. Unless you send money, and you die before spending money on the insurance policy there is not any coverage.
Secret #11: Wear your shoes if the nurse measures your height. Once the ตัวแทนประกันชีวิต เอไอเอ sends out your nurse to perform your overall health check try to be as tall as possible in case you are overweight? In many states you are allowed to wear shoes and if you are a bit overweight your taller height/weight ratio will appear a bit safer to the underwriter who is rfzqsse your health rating and policy price. Also do your exam early in the morning without food inside you – this makes your cholesterol count as well as other health ratios look the most effective.
Secret #12: Be mindful with extra perks and riders. Most policies come with options like accidental death benefit, child riders, disability riders, return of premium etc. Should you the math on most of these “extras” they usually don’t make smart financial sense. life insurance companies are out to make money and those riders are usually profitable since they either cover something which rarely happens or they are so stringent the benefit never gets paid out. Keep things basic and focus mainly on getting a life policy to protect your life without many strings attached. Again a great agent can help you weigh the advantages of the extra riders. But be skeptical of your agent who attempts to tack on every possible extra rider.