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4 Tips To Beat the Life Insurance Company in 2017

by Scott G on February 19, 2017 · 1 comment

4 Tips To Beat the Life Insurance Company to Get the Cheapest Rates

4 Tips To Beat the Life Insurance Company in 2017

Let’s be honest, no one likes buying life insurance or even talking about it for that matter.  Most people have a preconceived notion that insurance companies are this big bad greedy corporate scrooge looking to take advantage of them.  Pssst, want to know something?  Insurance is a business, a very profitable business and insurance companies are looking to make the most revenue they can.  So there is some validity in the notion insurance companies are looking out for their best interest because they are.

When I talk to clients for the first time and explain how insurance works, specifically term life insurance, some quick thinking individuals will have a thought pop into their mind and say something to the effect of “sounds like a casino or a form of gambling.”  And when you look at the concept of insurance it is kind of a form of gambling for both parties.  However, whichever way you look at it, insurance, especially life insurance is a necessity.  There is no other medium where you can pay pennies on the dollar to protect your family for hundreds of thousands or even millions of dollars in the event you suddenly passed away. 

With that being said to make sure you don’t overpay for your life insurance and not let the insurance company “beat” you as far as making the most money they can from you, I put together a list to assist you in not only obtaining the best rate but also to have your policy payout.

Four Must-Follow Life Insurance Tips 2017

1. Shop Around-This is the first tip because it is the most important thing you can do beat the insurance company and it’s what you have the most control over.  Life insurance policies are contracts, and they all payout if you are honest on your application.  With that being said, it’s advisable to shop based on price with life insurance.  Just like any other business, if you want the companies to be honest and offer competitive prices you have to shop the market and choose a company with an excellent rating but also one with the lowest rates.

2. Don’t Let Your Policy Lapse-This is completely in your control and is one of the biggest complaints I see on the internet about life insurance and something I hear from new clients.  People have a grip with the fact they have been paying their premiums on time for 10, 15, 20+ years and they missed one payment (including the grace period) and the insurance company terminated their policy.  If you miss a payment it is up to the insurance company’s discretion if they want to reinstate the policy.  If your health has changed they most likely won’t.  Is it fair?  I don’t know, probably not but that’s the way they it’s done.  Don’t let the insurance company win and drop you after all those years of paying your premiums on time or pay more to reinstate or for a new policy.  Bottom line-don’t let your policy lapse!

3.  Get Favorable Results on Your Health Exam– The paramed or health exam is right up there with age in determining how much you will pay for your policy.  If you have a good health exam that produces favorable results then you will receive a good rate.  If you have a bad exam and you have something come back elevated like your blood pressure or cholesterol your rate will increase and you will pay more money to the insurance company for the next 20 or so years.  You get one shot at the paramed exam.  Make sure you follow these tips here to obtain the best results to prevent you from paying more money to the insurance company.

 4.  Tell Your Family about the Life Insurance Policy-This tip is sounds like common sense but it’s surprising how many people don’t do it.  In fact, many of the top life insurance companies in a few years ago had to pay large settlements because they never contacted the deceased’s beneficiary.  For example MetLife paid out $500 million in settlements, AIG $300 million in settlements, Nationwide and others pay out large sums as well.  It is the duty of your beneficiary to contact the insurance company if you pass away not the other way around.  Tell your family about your policy so they can collect on the policy right away.

4 Tips To Beat the Life Insurance Company  in 2017- Summing It Up

The life insurance industry is a business and a very profitable one.  However, if you follow some basic tips you can secure the lowest rate while still providing your family with a safety net to ensure their future will be protected from anguish and uncertainty.

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    Term Life Online November 30, 2016 at 8:31 am

    Thanks Scott. These are all good tips, but I would add to use a needs calculator when deciding on how much life insurance coverage to buy. That way, you won’t be paying for more life insurance than you really need. And, choose annual premium payment option instead of monthly to save on your overall life insurance premium.

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