Ways To Save On Life Insurance Policies

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Life Insurance Policy
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Ways To Save On Life Insurance Policies
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• Many customers looking to purchase a life
  insurance policy, want a plan that gives adequate
  coverage without overpaying. Policies premiums
  are based on historical data that actuaries
  determine by solving complex algorithms. The base
  premium numbers are determined by risk categories
  which includes the applicants current health,
  medical history, habits, age, hobbies, credit
  score, driving record, etc. Policy premiums will
  still vary with applicants that are placed in the
  same group. Some common ways to save on life
  insurance are as follows
• Don't smoke - When insurance companies determine
  their risks for life insurance applicants, the
  first class they determine is if the applicant
  smoked. Obviously there has been quite a few
  cases where people have smoked a pack a day and
  lived past age 100. That sample size is so small
  that it doesn't effect the entire population that
  actuaries deal with. Underwriters will want to
  know if you smoke or have smoked at some point in
  your life. This one habit alone, can increase or
  decrease the applicants premium by a large number.

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• Purchase a plan that fits your coverage needs -
  Some customers purchase cheap policies, but then
  end up regretting it down the road. Sure, many
  policies are convertible, but may incur fees or
  additional charges if the plan is converted.
  Purchase the correct life insurance policy the
  first time around. This is done by talking to a
  good insurance agent and asking the right
  questions. The agent will determine what is
  needed for your financial situation and help you
  understand what type of life insurance policy
  fits you best. There are many different products
  ranging from term to permanent insurance. Common
  coverage for life policies are recommended to
  5-10 times your annual income.
• Save in the long run by purchasing early - More
  often than not, people wait till later in life to
  purchase life insurance. If you have the funding
  and ability to pay a life insurance premium,
  purchase it when your younger. Locking in rates
  at an early age will save you money in the life
  of your policy.
• Pay premiums annually and automatic bill pay -
  After applying and getting accepted for a life
  insurance policy, there are options on paying for
  your coverage.

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• Payment options vary slightly with each insurance
  company, but most insurance companies will offer
  a discount if installments are paid annually.
  This saves the insurance company money by
  investing the money as the receive it, rather
  than waiting for smaller payments to come in
  monthly. Insurance companies make a healthy
  profit on interest rates and will pass the
  savings on to the consumer if it's paid entirely
  up front. More insurance companies now are
  offering automated bill payment, which may offer
  around a 1 discount.
• Look into coverage "bands" - Every insurance
  company offers different prices for different
  amounts of coverage. "Bands" of insurance are
  policies priced according to coverage. Sometimes,
  an insurance company may offer a lower rate for a
  certain amount of coverage. Depending upon the
  amount of coverage you need, it may be cheaper or
  worthwhile getting more coverage.
• Shop around - Inquiring with multiple insurance
  companies will always give you different prices.
  Each insurance company offer different policies,
  coverage amounts, discounts, etc. As with any
  major purchase in your life, it is wise to search
  for the best life insurance product. Always get
  multiple quotes and make sure you fully
  understand the policy that you need.

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• Stay healthy - Many applicants who end up paying
  higher premiums for life insurance are either
  smokers, chew tobacco, are overweight, have high
  blood pressure, etc. Maintaining a healthy
  lifestyle will lower premium rates. Never lie on
  an application and state that you don't smoke,
  when it isn't the truth. It is illegal to lie on
  a life insurance application, as if you make the
  misrepresentation, the contract will be voided.
  Fix your current state of health before applying
  or if you already have a policy, quit the bad
  habits, get healthy and have the insurance
  company reevaluate you when your health improves.
• Although, Life Insurance Policy can be confusing
  at times to the average consumer, there are many
  steps you can take to save money before and after
  buying a life insurance policy. Staying healthy
  and making good decisions in everyday activities
  will give you a good rate on your premiums. When
  making a major purchase in your life, make sure
  you understand the product that you are agreeing
  to terms with. An insurance agent will be able to
  fully describe the details of what a policy
  entails. Knowledge of major financial decisions
  in life can save you a lot of money throughout
  your life time.

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