Life Insurance Tips You May Not Know

Life insurance is available to all applicants

As long as you are searching for the right policy, life insurance is available to all applicants. There are a number of different classifications of life insurance policies. All applicants are eligible for “guaranteed issue” life insurance, even if you have no medical exams available on record. Shop around, get a list of quotes, and familiarize yourself with what is included in a guaranteed issue life insurance policy before making a decision.

High cost does not mean high quality

The same is true of low cost: low cost does not necessarily mean low quality. Fortunately for the consumer, the life insurance industry is regulated by both the federal and state government. Independent credit rating agencies assess each insurance provider based on their financial strength and security. This rating based on the liquidity of each company, how much cash reserves they keep on hand to pay policy holders. Beyond an insurance provider’s liquidity, you should thoroughly examine all the terms of the policy before signing on.

Rates are often not guaranteed for the full term

Does your insurance policy have an unbelievable rate? It may be too good to be true. Some life insurance policies have rates that are only guaranteed for half the policy term, raising the rates on you once you are half way through the term of your policy. Don’t let this take you by surprise, be sure to read all the details of your policy before signing on.

You can save money by buying through an independent agent

An independent agent has the ability to sell for a number of different companies, meaning that they can choose a company that is the best fit for the customer. Life insurance agents who work for one company cannot tailor the policy offered to you, plus their pay likely includes sales commissions which mean higher premiums for you to pay.

Posted by on Feb 23, 2012 in Blog | 0 comments