There may be a period in your life when it’s time to purchase term life insurance. When it comes to planning your financial future, life insurance is usually an after thought behind your matching 401k and tax-free Roth IRA. When the pivotal time comes when life insurance becomes a priority, here’s a few tips that will help get you the best term life insurance rates. We all like to save money, might as well save some on our life insurance premiums.
1. Shop Rates When You Are Younger
It might be obvious to say that buying term life insurance when you are younger is a whole lot cheaper. Does that mean that you need to buy life insurance when you’re 18? Probably not. But when family or a loved one become dependent on you, it might be time to start considering it.
Other than my military insurance (SGLI), I didn’t purchase a term life policy until I was married and out of the military at 28. I have then purchased an additional policy as I’ve welcomed each of my sons. As I’ve aged, I’ve seen the term life rates increase a bit, but not as much had I waited say 10 years to buy the new policies.
2. Stick to the basics
In general, when you’re making a purchase, the more bells and whistles you want, the more it’s going to cost you. And that’s true of term life rates as well. The most simple and straightforward type of life insurance is term life insurance. But you can make it little bit more complex and pricier by adding riders like return of premium rider, accidental death benefit rider, waiver of premium rider or a child rider.
3. Compare Term Life Insurance Quotes
If you have a family you will soon learn that life insurance can be a necessary expense. If this is the case in your situation, you want to know for sure that you are getting the best possible rate for your life insurance policy. To do this you will need to compare the available rates that are being offered by several insurance companies since insurance rates can vary widely over the many companies.
You can easily do this by going to a site where term life insurance rates are compared. These sites have a link with hundreds of insurance companies. When you go online you will be asked to fill out a simple questionnaire. After this you will receive quotes from many different insurance companies that fit your needs.
Here are the advantages when you use an insurance comparison site to compare term life insurance rates.
- You are able to quickly receive fast quotes from many different companies, allowing you to choose a policy while having the opportunity of enjoying the coverage of term life insurance sooner.
- This calculator allows you to change your input to get different results, like the amount of insurance.
- There are even sites that allow you to chat online with insurance agents who can answer your questions and help you pick an insurance company.
On top of all that, the service is free and you don’t have to leave your house or office. I test drove an online site before just to see how the process worked. The one hang up in going this method is that you are suddenly put on the map for every local life insurance provider and you’ll get quite a few phone calls.
Dealing with Life Insurance Agents
If you would prefer to deal with a local agent, I would advise getting at least different quotes from more than one agent. Preferably, you would want an independent agent that is able to offer more than one insurance company. If you already have a pre-exisitng relationship with an insurance company with your auto or home insurance, it wouldn’t hurt to inquire to see if you get a discount since you’re already a customer.
4. Prepare for the Medical Exam
When you apply for life insurance, you typically will be asked to have a medical examination performed by a licensed health professional. The insurance company will order the exam on your behalf and you will receive a call to schedule the appointment.
In order to obtain the most favorable results, you should prepare for this exam. The following 10 tips can have a significant impact on the examination results, with the potential to lower your rating and thus lower the cost of your life insurance policy.
- Limit salt and high cholesterol foods 24 hours prior to the exam
- Refrain from drinking alcoholic beverages for at least 24 hours prior to the exam
- Limit caffeine and nicotine 24 hours prior to the exam
- Smokers: Do not smoke 30 minutes prior to the exam
- Fast for 4-8 hours prior to the exam and try to schedule the exam for first thing in the morning
- Drink a glass of water one hour prior to the exam
- Get at least 8 hours of sleep the night before the exam
- Limit strenuous physical activities 24 hours prior to the exam
- Be prepared to provide names and dosages of current medications and a photo ID
- Have names, addresses and phone numbers of any doctors or clinics visited in the last 5 years
These are just some of the tips that you can use to save on your term life rate. Have you purchased term life insurance recently? If so, contact me to let me know what process you used to get the most affordable rate.
Life insurance policies are subject to substantial fees and charges. Death benefit guarantees are subject to the claims-paying ability of the issuing life insurance company. Riders are an additional guarantee options that are available to a life insurance contract holder. While some riders are part of an existing contract, many others may carry additional fees and restrictions, and the policy holder should review their contract carefully before purchasing.