What gets us into trouble is not what we don’t know. It’s what we know for sure that just ain’t soMark Twain
If what you thought was true turned out was actually NOT true when would you like to know? In this article we will go over 8 Life Insurance Secrets and what you need to know to not be taken advantage of.
1. The more information you are willing to share the lower your possible rate
This is vital and goes against everything in the Amazon Prime instant order age; the more willing you are to work with an experienced independent agent, talk about your health history, and even be willing to do a med exam the more likely you will be to have a lower rate. How much lower? Think 50% or even more lower! Do you have to do an exam? No but if willing that may help. Do you have to share your medical records or prescription history? No but if willing to do so that can give you a better rate. The bottom line is this; The Life Insurance Industry may cover you with their eyes closed if you ask them to BUT if you are willing to let them see your medical records, presciption history or maybe even send out for a medical exam that could dramatically lower your final rate and save you big money.
2. The sooner you start the more choices you may have and the lower your rate may be
As you get older the road narrows. Someone in their seventies for instance can not get the life insurance choices that someone in their twenties can get. Likewise the twenty year old pays less than the seventy year old. Ths is because the mortality cost/risk is much higher for the seventy year old than the twenty year old. But once covered the rate remains the same for many life insurance products. So being proactive offers more choices and better potential rates. In fact you could make the argument that being pro-active is the game for ALL insurance and even financially planning really. The key is to get ahead of when you need the coverage.
3. Cheap rate + high coverage = accident only plans (almost always)
So many times people have said something like; I have $250,000 for only $5 or $1 per month. This is either an accident-only plan or a teaser rate that will blow up in later years. Accident only plans will not pay out if you die by nature cause and most of us will pass from natural cause (heart disease, cancer, etc) So the reason your rate may be so so low is because the likelihood of any payout is so so so remote. Bare this in mind if counting on your death benefit to payout; accident only plans almost never payout.
4. Less than 2% of term life insurance plans pay out
Another possible bummer yes. Why? Because term life insurance is designed to pay for premature death. Often when someone has kids, a mortgage, or a business loan they pick up term insurance. It is the lowest priced way to get the most amount of coverage during your likely most financially vulnerable years. BUT term insurance is never intended to last to life expectancy. It is designed to cover the risk of a premature death. So term insurance is also not likely to payout, but if something should happen it serves loved ones when a bread-winner passes prematurely or unexpectedly.
5. There are no free lunches
Oftentimes the myth of free insurance gives false hopes to consumers. Well Social Security does pays $255 when you pass away but that was set over 80 years ago. Maybe $255 could pay to bury part of a foot or cremate a hampster but don’t count on much more. Beyond Social Security there are NO free government plans out there. Often people get “Free” Insurance from their Credit Union or bank, but these are modest accident only plans that are complimentary and do not pay if you die from natural cause. The closest to free insurance would be a group plan paid for by an employer but these also are not really free as you have to work for that employer or be a spouse or dependent of the employee.
6. No one company/agency rules the market
The Life Insurance Industry, like the auto insurance industry is highly competitive. This is to your advantage. This means that different companies specialize in different niches. No one carrier monopolizes the market. It only benefits you to find an honest, experienced, independent agent. But even then know that no agent or agency has every choice available. Some plans can only be purchased direct from a carrier. Beware of anyone that says they can provide you with the lowest possible price every time. This is a common phrase among agencies and it is simply not true that an agency can provide the lowest price every time for every individual. Agencies will however often do better than calling any one carrier.
7. Term Insurance is NOT an estate planning product
Term insurnace is lower cost for a reason; it likely won’t pay out (see #4). It is designed for premature death. That is why those that have term insurance need to know that the coverage they bought is not designed to last until life expectancy (Although it might if there has been a health decline/diagnosis of some kind since the purchase) If you are looking for plan that offers a guaranteed pay-out term is not likely your best choice.
8. Whole Life Insurance is not the only permanent life insurance
If you want permanent life insurance you do not have to choose whole life. This is one of the biggest myths out there; that whole-life insurance is the only-way to get coverage to last your entire life. It maybe to your advantage to explore a universal life plan. The premiums can be lower and you can still get the death benefit guarantees of Whole Life. Don’t let the name intimidate you. Universal Life could be a game-changer if your looking for at least $25,000 of coverage and are in somewhat decent health.
So there you have it; 8 life insurance secrets that you likely have never heard before. What is more is that this is info many do not want you to know! If you now know that the plan you bought is not what you expected, want to compare plans, or see what is available to you we are happy to serve you and we will do so honestly, without any obligation. To do so you can call our number here at; 866-256-8069, book a phone time here, or run rates right off our home page. Please know our homepage quoter, like every quoter can’t run all plans and you may want to talk to us if you want more choices.