Secret #1: Don’t spend too much 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 that apply actually get 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 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 whom you purchase from! One agent or website quoting a reduced premium means nothing. Prices for any given policy is founded on your actual age and health. There are several exceptions to this particular but that is certainly past the breadth of the article.
Most life insurance companies have 10-20 different health/price ratings with no agent or website can guarantee you 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 having a nurse in your home and so the company checks you doctor records and reviews and ‘rates’ your overall health) to obtain the real cost of the insurance policy. Keep in mind that a health rating also factors within your family history, driving history, and the sort of occupation you may have. Only use quotes to assist narrow down your options to the top companies. You may want to look at a no load or low policy. The more that you save money on commissions the greater money increases inside your policy. You can even buy term insurance no load, and save a lot on premiums. You will not get the help of a broker, which might be worth something when they are great.
The most crucial factor determining prices are matching your specific health history with all the company most suitable for your niche. For instance company X might be perfect for smokers, company Y for cancer survivors, Company Z for people with hypertension, etc.
Secret #2: Ignore the hype on term versus cash value permanent insurance. You are able to go crazy reading what everybody has to say on buying term insurance versus a complete or universal life policy. Big name websites give suggest that I think borders on fraudulent. In other words there is absolutely no simple answer on whether you should get permanent cash value policies or term insurance.
However I do think there is a simple principle – buy term for the temporary insurance needs and cash value insurance for the permanent needs. I have read in different journals and run mathematical equations myself which basically reveal that in case you have a requirement for insurance beyond twenty years that you ought to consider some quantity of permanent insurance. This is a result of the tax advantage of the growth in the cash value within in a permanent policy. I am divorced and possess taken care of my children must i die. I probably no longer need just as much insurance when i now have. We have earned an excellent return on my own policies and have paid no taxes. I will no longer pay the premiums, since there is so much cash in the policies. I enable the policies pay themselves. I might not call most life insurance a good investment. Because I got 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 almost everyone has temporary needs just like a mortgage or kids at home they should find some good term. Additionally many people want some life insurance set up for his or her whole life to cover burial, assistance with unpaid medical bills and estate taxes and thus a lasting policy should be purchased combined with the term policy.
Secret #3: Consider applying with two companies simultaneously. life insurance companies really don’t such as 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 get 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. Keep in mind that you don’t save any money that way since the commissions normally earned from the agent are simply kept by the insurer or the website insurance company without having your premium lowered.
Along with a good agent will help you maneuver through a number of the complexities of submitting the applying, setting up your beneficiaries, avoiding mistakes on selecting who needs to be the owner, the best way to pay your premium, and in addition will be there to deliver the check and assist all your family members when the life insurance is ever used.
Secret #5: Consider refinancing old life policies. A lot of companies won’t inform you however the price you pay on the old policies has probably fall dramatically should you be in good health. In the recent years life insurance companies have updated their predictions regarding how long individuals will live. Since we are living longer they may be reducing their rates rather dramatically. Beware the agent could be carrying this out to acquire a new commission, so make sure it really makes sense.
I seriously am amazed at how many times we find which our client’s old policies are doubly expensive as a completely new one. If you want new life insurance consider “refinancing” your old policies and making use of the savings on the old policies to cover the new policy – this way there is no extra out-of-pocket costs. We love to to think of this procedure as “refinancing your daily life insurance” – exactly like you refinance your mortgage.
Secret #6: Realize life insurance companies have target niches that constantly change. One day company ‘X’ is giving good rates to people who are a little overweight and the the following month they may be super strict. Company ‘Y’ could be lenient on individuals with diabetes because they don’t have numerous diabetics on the books – meaning they will likely give good rates to diabetics. Simultaneously company ‘W’ may be very strict on diabetics as they are insuring plenty of diabetics and therefore are afraid they may have too big of a risk in that area – meaning they are going to give a bad rate to new diabetics who apply.
Unfortunately when you find yourself applying an existence insurance provider will never let you know, “Hey, we simply raised our rates in diabetics.” They are going to just happily take your money if you were not smart enough to purchase around. This is the number one area a wise agent comes in handy. Since an excellent multi-company agent is continually applying with multiple companies he or she will have a great handle on who may be typically the most lenient on underwriting for you personally particular situation. The problem is that this is hard work and lots of agents may be too busy or not established to efficiently shop around straight to different underwriters and discover who will make you the best offer. This is a lot harder than simply running a quote online.
Secret #7: Don’t forget customer support. A lot of people searching for insurance concentrate on companies with all the lowest price and also the best financial rating. Unfortunately I am aware of some A rated companies with reduced rates who I would personally not touch having a ten foot pole simply because it’s simpler to give birth to some porcupine backwards then it is to obtain customer service from their website.
Before I understood this I used an existence insurance company 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 punctually but simply got a notice saying my policy lapsed.” It proved the company had been making plenty of back-office mistakes and had lost the premium payment!
We were able to correct it because we caught the situation so early. However if the client happened to get died throughout the short period the policy had lapsed, his family could have had a difficult time proving that this premium have been paid punctually and they may not have received the life insurance money – a lack of thousands and thousands of dollars in that case.
Secret #8: Apply 3-6 months ahead of the time you will need the insurance policy when possible. Don’t be in a hurry to obtain a policy if you have some coverage in force. But go on and apply immediately knowing that you might need months to shop around when the first company will not offer you a good rate. Although the life insurance industry is getting more automated the application will still often be held up for weeks or months while the insurance company waits on your own doctor’s office to mail them a duplicate of yourself medical records.
If you are in a hurry and buy a quickie ‘no-underwriting’ policy without going through the entire health checks and underwriting that the mainstream life insurance company requires, you will find yourself paying 20%-50% more because the insurance company will automatically charge you higher rates simply because they don’t know whether you are healthy or about to die the following day.
Secret #9: Avoid buying extra life insurance through work in case you are healthy. I am certain there are exceptions to this “trick” but I have rarely found one. By all means maintain the free life insurance your employer provides. But in case you are healthy and you are paying for supplemental life insurance through payroll deduction you might be almost certainly paying too much. Precisely what is happening is that your ‘overpayments’ winds up subsidizing the unhealthy individuals your organization who definitely are buying life insurance through payroll deduction.
Usually life insurance company has cut a deal together with your employer and will waive the required health exam for many employees – instead they simply average the price for the employees and present one or two rates for men or females at any age. life insurance companies know they will pick-up a lot of unhealthy clients by doing this so that they jack in the price on everyone in order that the healthy people wind up overpaying in order that 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 become older.
Also group life insurance is normally not portable once you retire or change jobs which means whenever you retire or change jobs you could have to utilize once again even though you will be older and probably less healthy and risk being rejected for a policy. When 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 absolutely was a much better deal than any policy I was able to find him. Little did he realize that the buying price of his group plan would go up every year? By the time he retired his premium would have risen to in excess of $10,000/year. I came across him a policy for about $1000/year that will never go up. Also, unlike his old group life policy, he might take the patient policy with him as he changed jobs or retired.
Secret #10: Conduct a trial application over a COD payment basis. Only send money using the application form if you need the life span insurance policy right away. Sending a check with the application is actually a traditional practice agents used to do – I think mostly because it got them their commissions faster. Should you send cash with an application you usually get temporary coverage immediately but when you currently have plenty of coverage and therefore are just looking to get better rates ask your agent to do a trial application over a COD basis so that you pay only after the policy is approved. If you do not send money, and you also die before spending money on the plan there is absolutely no coverage.
Secret #11: Wear your shoes once the nurse measures your height. If the ตัวแทนประกัน AIA sends the nurse to do your health check be as tall as possible in case you are overweight? In many states you are allowed to wear shoes and in case you are just a little overweight your taller height/weight ratio will look just a little safer to the underwriter who is rfzqsse your wellbeing rating and policy price. Also do your exam early in the morning without any food in you – this makes your cholesterol count and 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 do the math on most of these “extras” they generally don’t make smart financial sense. life insurance companies are out to make money and these riders are generally profitable since they either cover something that rarely happens or these are so stringent that this benefit never gets paid out. Keep things simple and focus mainly on obtaining a life policy to protect your lifestyle without many strings attached. Again a good agent can help you weigh the benefits of the excess riders. But be wary of an agent who attempts to tack on every possible extra rider.