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 really healthy. Statistically only 10% of people that apply actually have the lowest priced policy. The premium you end up paying has nothing to do with 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 lesser premium means nothing. Prices for any given policy is founded on your actual age and health. There are a few exceptions for this but which is past the breadth of this article.
Most life insurance companies have 10-20 different health/price ratings with no agent or website can assure you the quote they give you is accurate. You need to apply, do a health check, and then proceed through underwriting (meaning you finish a mini-exam having a nurse in your house and so the company checks you doctor records and reviews and ‘rates’ your wellbeing) to obtain the real price of the insurance policy. Keep in mind that a health rating also factors in your family history, driving record, and the kind of occupation you may have. Just use quotes to help narrow down your choices to the top companies. You may want to consider a no load or low policy. The better that you save on commissions the more money builds up within your policy. You can also buy term insurance no load, and save a great deal on premiums. You simply will not get the aid of an agent, which may be worth something if they are great.
The most significant factor determining prices are matching your particular health history using the company most suitable for the niche. As an example company X could be perfect for smokers, company Y for cancer survivors, Company Z for those who have high blood pressure, etc.
Secret #2: Ignore the hype on term versus cash value permanent insurance. You are able to go crazy reading what everyone has to state on buying term insurance versus a complete or universal life policy. Big name websites give advice that I believe borders on fraudulent. Simply put 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 guideline – buy term to your temporary insurance needs and cash value insurance for the permanent needs. I have read in various journals and run mathematical equations myself which basically reveal that if you have a requirement for insurance beyond two decades that you should consider some level of permanent insurance. This is because of the tax benefit of the growth from the cash value within in a permanent policy. I am divorced and have taken care of my children do i need to die. I probably no longer need just as much insurance because i will have. We have earned a great return on my policies and also have paid no taxes. I no more spend the money for premiums, as there is a lot cash in the policies. I allow the policies pay themselves. I would not call most life insurance a wise investment. Because I purchased my policies correctly, and paid hardly any sales commissions my policies are most likely my best investments. I no more own them, so when I die my beneficiaries will receive the cash both tax free, and estate tax free.
Since most people have short term needs such as a mortgage or children at home they need to get some good term. Additionally a lot of people want some life insurance set up for their whole life to fund burial, assistance with unpaid medical bills and estate taxes therefore a lasting policy should be purchased along with the term policy.
Secret #3: Consider applying with two companies at the same time. life insurance companies really don’t like this “trick” because 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 get them to get a multi company quote showing the best prices side by side. Some individuals make an effort to cut the agent out and simply apply online. Just remember which you don’t save money this way because the commissions normally earned from the agent are only kept by the insurance company or the website insurance carrier without needing your premium lowered.
Along with a good agent may help you maneuver through some of the complexities of filling out the applying, establishing your beneficiaries, avoiding mistakes on selecting who should be the owner, the easiest method to pay your premium, as well as is going to be there to offer the check and assist your loved ones if the life insurance is ever used.
Secret #5: Consider refinancing old life policies. A lot of companies won’t tell you however the price you spend on the old policies has probably come down dramatically if you are in good health. In recent years life insurance companies have updated their predictions on how long individuals will live. Since our company is living longer they may be reducing their rates rather dramatically. Beware the agent might be doing this to acquire a new commission, so ensure it truly is practical.
I really am surprised about how often we discover that our client’s old policies are two times as expensive as a completely new one. Should you need new life insurance consider “refinancing” your old policies and making use of the savings on the old policies to cover the new policy – like that there is not any extra out-of-pocket costs. We like 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 a little overweight and also the the following month these are super strict. Company ‘Y’ might be lenient on people with diabetes because they don’t have several diabetics on the books – meaning they will likely give good rates to diabetics. Simultaneously company ‘W’ could be very strict on diabetics because they are insuring lots of diabetics and they are afraid they have got too big of a risk in that area – meaning they are going to offer a bad rate to new diabetics who apply.
Unfortunately when you find yourself applying a life insurance provider will never inform you, “Hey, we merely raised our rates in diabetics.” They will just happily take your cash if you were not smart enough to shop around. This is the number one area a smart agent comes in handy. Since a good multi-company agent is constantly applying with multiple companies he or she will have a good handle on who is currently the most lenient on underwriting to suit your needs particular situation. However , this is work and several agents may be too busy or otherwise established to efficiently shop around right to different underwriters and find out who will make you the best offer. This is a lot harder than simply running you a quote online.
Secret #7: Don’t forget customer service. A lot of people looking for insurance focus on companies with all the lowest price and also the best financial rating. Unfortunately I understand of some A rated companies with low rates who I might not touch having a ten foot pole simply because it’s much easier to give birth to your porcupine backwards then it is to have customer care from them.
Before I understood this I used a life insurance provider that gave a person a fantastic rate but 2 years later your client called me and said, “I actually have mailed in most my payments on time but simply got a notice saying my policy lapsed.” It turned out the business had been making lots of back-office mistakes along with lost the premium payment!
We were able to remedy it because we caught the situation so early. But if the client happened to have died through the short period the plan had lapsed, his family could have had a hard time proving that this premium was paid punctually and they also may not have received the lifestyle insurance money – a loss of tens of thousands of dollars if so.
Secret #8: Apply 3-6 months in front of the time you require the insurance if possible. Don’t be in a hurry to get a policy if you already have some coverage in force. But go on and apply right away knowing that you might need months to shop around if the first company does not offer you a good rate. Even though the life insurance industry is getting more automated your application will still often be held up for weeks or months while the insurer waits on your own doctor’s office to mail them a duplicate of yourself medical records.
If you are in a hurry and get a quickie ‘no-underwriting’ policy without experiencing the full health checks and underwriting that the mainstream life insurance company requires, you will end up paying 20%-50% more because the insurance company will automatically charge you higher rates since they don’t know regardless if 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 sure you will find exceptions for this “trick” however i have rarely found one. Go ahead and maintain the free life insurance your employer provides. But should you be healthy and you also are paying for supplemental life insurance through payroll deduction you are more than likely paying too much. What is happening is your ‘overpayments’ winds up subsidizing the unhealthy people in your organization that are buying life insurance through payroll deduction.
Usually life insurance company has cut an arrangement along with your employer and will waive the desired health exam for those employees – instead they just average the price for all of the employees and present one or two rates for men or females at any age. life insurance companies know they are going to pick-up lots of unhealthy clients this way so that they jack up the price on everyone so that the healthy people find yourself overpaying so that the unhealthy employees get a cheaper policy. Also, unlike the guaranteed term policies which we recommend, most life insurance you purchase through work will get more costly as you become older.
Also group life insurance is usually not portable whenever you retire or change jobs which means whenever you retire or change jobs you might have to utilize all over again even when you will likely be older and in all likelihood much less healthy and risk being unapproved for any policy. When the group plan does allow portability they generally limit your conversion choices and force you to enter into expensive cash value plans.
I recall helping someone evaluate his supplemental life insurance. He was sure it absolutely was an improved deal than any policy I could find him. Little did he understand that the price of his group plan would go up each and every year? By the time he retired his premium would have risen to over $ten thousand/year. I discovered him an insurance policy for approximately $1000/year that will never rise. Also, unlike his old group life policy, he might take the patient policy with him when he changed jobs or retired.
Secret #10: Do a trial application over a COD payment basis. Only send money using the application should you need the lifestyle insurance policy coverage right away. Sending a talk with the application form is a traditional practice agents used to do – I believe mostly as it got them their commissions faster. In the event you send cash with a software you typically get temporary coverage immediately however, if you already have a lot of coverage and they are just hoping to get better rates ask your agent to accomplish a trial application on a COD basis so that you only pay once the policy is approved. Should you not send money, and also you die before spending money on the policy there is not any coverage.
Secret #11: Wear your shoes when the nurse measures your height. When the ตัวแทนประกัน เอไอเอ sends the nurse to perform your health check be as tall as is possible if you are overweight? Generally in most states you can wear shoes and should you be just a little overweight your taller height/weight ratio will look a bit safer to the underwriter who may be rfzqsse your wellbeing rating and policy price. Also do your exam early each day without any food inside you – this may cause your cholesterol count and various health ratios look the most effective.
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. Should you do the math on most of these “extras” they usually don’t make smart financial sense. life insurance companies are out to earn money which riders are often profitable since they either cover a thing that rarely happens or they may be so stringent that this benefit never gets paid out. Keep things simple and focus mainly on obtaining a life policy to cover your life without many strings attached. Again a great agent may help you weigh some great benefits of the extra riders. But be suspicious of an agent who attempts to tack on every possible extra rider.