Tips to get you most affordable life insurance
Life insurance is an essential part of financial planning, and working with a bias advisor is risky. A captive agent at New York Life Insurance or Prime America (primerica) can only offer life insurance quotes from their companies. Here are a few tips to insure you’re getting reliable, affordable life insurance with a hassle free process:
- Clearly define your needs: Before engaging an agent or broker, it is important that you decide why you need life insurance; as an example for mortgage protection or final expense planning. If you don’t know what you want, then it is going to be hard for a anyone to assist you. Nobody knows your financial situation better than you, so by going in unprepared you leave yourself vulnerable to an agent persuading you to get more coverage then you actually need.
- Use an Independent life insurance broker: Most customers aren’t aware that independent life insurance brokers don’t charge fees, they are free to use. They get paid directly from the insurance companies, so there is no harm in utilizing them to get you free quotes. Also, brokers shop multiple carriers to insure the best rates from over fifty companies. Captive agents like those at Globe Life Insurance will only quote you Globe Life Insurance Rates, they have the best interest of their employer at heart, not yours. Always work with someone independent like the brokers at GIA!
- Know the differences between Term and Whole life insurance quotes: Term life insurance is a policy designed to last a specified number of years ranging from one to thirty. Term policies are comprised solely of a death benefit, which is paid to a specified beneficiary if the policyholder passes during the term. Whole life insurance policies are a combination of term life and a cash accumulation component. The premium that you pay is guaranteed for the entire policy. Whole life insurance policies can be for tax free accumulation and distributions can be taken tax free unlike an IRA. It is important to be aware of the differences between term and whole life policies. Whole life insurance is going to be more expensive because it is guaranteed for life and has a cash accumulation component.
- Compare rates and do your homework: A consumer shopping for the best deal on life insurance should utilize an independent broker. By making one call to an independent broker, you will get multiple quotes from the top life insurance companies to insure you are getting affordable term life insurance quotes. You can learn more about a variety of life insurance topics by visiting GIA’s blog here or contacting us via email or phone. Homework isn’t fun, but the good news is when you speak with an independent representative who works with a lot of companies, they also know who to avoid like Colonial Penn Life Insurance. When looking for an insurance solution, its just as important to know who to avoid as it is who to buy from. As an example:
I have a new client who bought five hundred and fifty thousand dollars of life insurance for a thirty year term from Transamerica. She was rated standard at $205/mn. I felt her offer wasn’t good but wanted to insure her. We placed the policy into force and applied to ING for a better offer. They just approved her best at $160/mn for the same thing… OVER $16,000 in savings over 30 years!! I will always find you the most affordable term life insurance!
- Get in Shape: I know what you’re thinking regarding getting in shape, easier said than done. However, taking steps to improve your health can not only add years on to your life, but also save you tens of thousands of dollars on life insurance. Smokers are almost always charged twice as much as non-smokers when purchasing life insurance. Some steps that can be taken to get you the most affordable life insurance includes: quitting smoking, losing weight, and lowering blood pressure and cholesterol.
- Ask the tough questions: Before you commit to any policy, it is critical that you know what you are getting inside and out! Here are a few questions I tell consumers to ask an agent before committing to a purchase:
1. If researching term life insurance, is the plan level for the specific term period?
2. How many companies did you compare to insure best rates?
3. Any restrictions or limitations, ie.. is the plan graded benefit or level?
4. Is this a fully underwritten application, in other words is pricing based upon the personal risk of the insured or is the plan simple issued?
This is why people do business with us. We work for you. When a company doesn’t do right by one of our clients we let other people know about it (check out this Globe Life review as an example). We look forward to helping you find the best rates for your needs.