24 Quick PiggyBob’s Life Insurance Tips
1. Planning pays: buy a policy as early as possible, select proper coverage length, avoid dangerous jobs and hobbies, and review all billing options and policies.
2. Think ahead: buy a policy when you’re young and healthy to get the best rates; ask about discounts for paying on time or via EFT.
3. Calculate your savings: Most online site offering instant life insurance quotes offer free calculators to help you determine the amount of coverage you need.
4. Weigh options: “Term” insurance offers standard coverage at a lower costs, “whole” includes a savings component, and “return of premium” essentially combines the two.
5. Stay focused: Remember, an insurance agent may have financial incentive to recommend a certain policy type; stay firm and choose the best plan for you.
6. Choose “term”: “Term” policies—covering a specific length of time—are generally the best deals in life insurance; premiums have fallen to historically low levels.
7. Buyer beware: According to a study by the Consumer Federation of America, many sites offering to find you the cheapest term-life rates don’t always deliver.
8. Dig deeper: Don’t settle on the lowest quote; find providers that listen to your needs and give advice to help you make well-informed choices.
9. More for less: Life insurance usually costs less per thousand dollars in higher amounts; you may be able to pay lower premiums while increasing coverage.
10. Young = term: Young families with large financial obligations often choose term life insurance policies; the lower premiums enable them to purchase sufficient coverage.
11. Avoid commissions: No-load or (perhaps more appropriately) low-load life insurance policies have fewer expenses built into them, such as agent commissions and/or marketing fees.
12. No medical exams: If you have a troubled medical history, consider using an insurance broker to find you a guaranteed policy requiring no medical exam.
13. Wisdom of age: To judge an insurance provider’s reputation, try researching how long they’ve been in business; some have histories of over a hundred years.
14. Check with your state: Before choosing an insurance company, check with your state’s insurance department to make sure the company is licensed in your state.
15. Consult third parties: Most Web sites offering life insurance comparisons also sell policies, but it pays to seek out those providing unbiased comparison advice.
16. Yes you can: Life insurance isn’t just for young people; many companies offer coverage without medical exams for seniors up to the age of 80.
17. Pass it on: When you apply for life insurance quotes, be ready for calls; your information will be passed on to a provider’s sales force.
18. How they rate: Five major ratings firms issue ratings for life insurance companies: Standard & Poor’s, Fitch Ratings, A.M. Best, Moody’s Investors Service, and Weiss Ratings.
19. Know your terms: Buying life insurance to protect your pre-teen twins until they’re through college? Get a quote for a policy with a 15-year term.
20. Sign up today: Under state laws, you may have a “free look” period (usually 10 days) during which you can cancel the policy without penalty.
21. You’re the boss: Life insurance salespeople can be very aggressive and competitive; remind them that you’re the customer and make them earn your valuable business.
22. Your worthy: Companies that provide sales leads to insurance companies charge up to $300 per 25 qualified leads; leverage this information when obtaining quotes.
23. Time to cash in? A life insurance settlement is the purchase of the existing life insurance policy by a third party for cash in emergencies.
24. Invest in yourself: The strategy “buy term and invest the rest” is recommended by many financial advisors for individuals comfortable with other retirement planning options.
Article by Nakagava Ltd., creator of PiggyBob™, the first truly user friendly personal finance software and time manager. PiggyBob™ is an extremely convenient tool to help you keep track of your income and expenses, plus a very useful printable calendar to record all important events in your life. All the data you record in PiggyBob™ can be handily visualized in graphs.
