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If you are shopping for additional life insurance to supplement
your existing life insurance policy, you should consider
re-financing your old policy first.
Here's why.
With the intense competition between insurance companies and the increase in age expectancies, the rate can be half as much as your old policy.
Here's an example: The premiums on your policy that you purchased 20 years ago are $800 per year. With the falling prices in life insurance, you may be able to get that same policy today for $400 per year.
Therefore, by refinancing your old or existing policy at today’s prices, you may be able to double your coverage and not spend an additional cent. Pretty good wouldn't you say?
It works the same as when one refinancing their home when the rates drop. Believe me. This is the one bit of information insurance companies do not want you to know. Their perfectly happy with you paying twice as much for your policy as you have to.
If you are not in perfect health, it is even more important for you to get as many quotes as you have time for. This is because insurance companies have an allowance as to how many policies they will issue at a certain rate and for a certain health problem. Once they get to that amount, any new policy purchaser will pay more for their monthly premiums.
Here's an example: Lets say that Company X will allow 1000 policies to be sold to people with diabetes at a premium rate of $500 per year. Once a company reaches this 1000 policy mark, any new policy purchasers with diabetes may pay much more for their premiums. The reason being is that people with diabetes have a shorter life expectancy. The insurance company does not want to put too much of their assets at risk.
Now let’s say that Company Y also allows 1000 policies to be sold at the going rate but, company Y only has 300 policies sold to people with diabetes. Company Y will be putting less of their assets at risk with the low number of diabetes policies. Thus, the chances of getting a cheaper premium are much greater.
This works the same way with any health problem an individual may be dealing with.
As I said before, getting multiple quotes from multiple insurance companies it a big key to saving you money on your life insurance.
Although good premium rates and good benefits are very important to your decision in choosing a policy, one must also keep an eye on how each individual insurance company treats you during your requests.
If they are going to be slow in their responses with you before you even buy a policy from them, image how they may treat you after they have your money.
This is very important. You should keep every single receipt from your premiums that you have paid in. When it comes time for the insurance company to pay out the benefits that you are expecting, all could depend on one little receipt.
What if the insurance company claims that you missed a payment? They could claim that your policy is null and void. It happens! Insurance companies have millions of bits of information to keep track of. It is easy for them to loose a few of these 'bits' here and there.
Always keep track of all payments and dates. You may never need them but, if you do, it could be the difference between them paying you that $500,000 they owe you or not paying you!
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