12 Secrets and Tricks to Buying Life Insurance

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12 Secrets and Tricks to Buying Life Insurance
12 Secrets and Tricks to Buying Life Insurance

12 Secrets and Tricks to Buying Life Insurance

12 Secrets and Tricks to Buying Life Insurance, Do not be fooled by the low price offers you get online – they do not apply to you unless you are extremely healthy. Statistically, only 10% of the applicants actually get the lowest price. The premium you end up paying has nothing to do with the first offer you get online or from an agent. It’s amazing to me how often I see people being fooled by an agent quoting Company X at a lower price than another agent.

Life insurance has the same price no matter who you buy from! An agent or website that quotes a lower premium means nothing. Prices for any given policy are based on your age and health. There are a few exceptions to this, but it is beyond the breadth of this article. 12 Secrets and Tricks to Buying Life Insurance.

Most life insurance companies have 10-20 different health / price ratings and no agent or website can assure you that the offer they are giving you is accurate. You need to apply, do a health check and then undergo drawing (that means you complete a mini-exam with a nurse in your home, and then the company checks your medical record and assesses and ‘assesses’ your health) to get the right price on the policy. 12 Secrets and Tricks to Buying Life Insurance.

Remember that a health assessment also has an impact on your family history, driving license and the type of profession you have. Use only quotes to narrow down your choices to the best companies. You may want to consider a no-load or low policy. The more you save on commission, the more money is built into your policy. You can even buy time-limited insurance without charge and save a lot on the premiums. You will not get help from an agent who may be worth something if they are very good.

12 Secrets and Tricks to Buying Life Insurance, The most important factor that determines the price is to match your particular health history with the company that is best suited for that niche. For example, Company X may be best for smokers, Company Y for cancer survivors, Company Z for people with high blood pressure, and so on.

Secret # 2: Ignore the hype about permanent insurance in terms of cash value.

You can go crazy reading what everyone has to say about buying time insurance versus a whole or universal life insurance policy. Big name websites provide advice that I think borders on fraudulent. In short, there is NO single answer to whether you should buy permanent cash value insurance or period insurance.

But I think there is a simple rule of thumb – buy term for your temporary insurance needs and cash value insurance for your permanent needs. I myself have read in various journals and run mathematical equations, which basically show that if you need insurance beyond 20 years, you should consider a certain amount of permanent insurance. This is due to the tax advantage of the growth in cash value within a permanent policy. I am divorced and have taken care of my children in case I should die.

I probably no longer need as many insurances as I have now. I have earned a large return on my policies and have not paid taxes. I no longer pay the premiums because there is so much cash in the policies. I let the politicians pay for themselves. 12 Secrets and Tricks to Buying Life Insurance.

Avoid These 6 Common Life Insurance Mistakes

12 Secrets and Tricks to Buying Life Insurance, I would not call most life insurance policies a good investment. Because I bought my policies correctly and paid almost no sales commission, my policies are probably my best investments. I no longer own them, so when I die, my beneficiaries will get the money both tax-free and property-tax-free.

12 Secrets and Tricks to Buying Life Insurance, Since most people have short-term needs like a mortgage or children at home, they should get some term. In addition, most people will have a life insurance policy in place for the rest of their lives to pay for funerals, help with unpaid medical bills and property taxes, and therefore a permanent policy should be purchased along with the term policy.

Secret # 3: Consider applying with two companies at once.

Life insurance companies really do not like this “trick” because it gives them competition and increases their insurance costs. 12 Secrets and Tricks to Buying Life Insurance.

Secret # 4: Avoid Life Insurance Agents.

12 Secrets and Tricks to Buying Life Insurance, Look for a life insurance agent representing at least fifty life insurance companies and ask them for a quote from several companies that show the best rates side by side. Some people try to remove the agent and just apply online. Just remember that you are not saving any money that way because the commissions that the agent usually earns are just kept by the insurance company or the website insurance company without having your premium lowered.

 

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