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WHAT IF MY HEALTH ISN'T PERFECT?
What if my health isn't perfect you ask? This is when it is vital for you to obtain as many quotes as you can and as time will allow. You see, Insurance companies have an allowance as to how many policies are issued at a certain rate for a certain health problem. Sort of like a quota. Once that 'quota' of policies per year is met, new policy purchasers will pay more for their monthly premiums.
HERE'S AN EXAMPLE:
Insurance company #1 has an allowance of 1000 policies they will issue per year to a person with Diabetes. The rate of the premium is $500 per year. Once company #1 has reached this mark of 1000 policies, a new policy purchaser with, let's say, Diabetes, will pay a much higher rate. Life insurance companies take into consideration that a person with Diabetes has a shorter life expectancy than a person in good health. They would be putting far too much of their assets at risk.
On the other hand, Insurance Company #2 also has an allowance of 1000 policies per year at the going
rate. However, company #2 has only 300 policies available to a person with Diabetes. Because of the much lower number of policies, company #2 is putting far less of their assets at risk. Therefore, a person with Diabetes has a greater chance of getting a policy with lower premium rates. Now this does not solely apply to persons with Diabetes. It works the same whatever your health issue may be.
Let’s say that you are not in the best of health. You should not purchase any supplemental life insurance that may be offered at your place of employment. Why? Because most employers insurance plans are 'group' plans. Not set up for individuals. The Insurance Company calculates the percentage of employees at a business who may have health problems. (Again, persons with health problems are going to pay higher premiums). Once the Insurance Company calculates this percentage, it is averaged out by overall rates. In reality, a person in good health is paying higher premiums for the people averaged in who are in poor health.
Most life insurance plans offered by employers are lost after leaving the company or retiring. Now one is forced to purchase a new policy. Plus, you are now older and your health perhaps not what it used to be. You may find it more difficult and more costly to get a new life insurance policy at this stage in your life. It is far more beneficial for an individual to take the amount that would be deducted from your paycheck every week and put yourself in control of purchasing a new life insurance policy that meets all the needs you want.
This is worth repeating! Multiple quotes from multiple Insurance companies! This is a big key to saving money on your life insurance!
THIS IS VITAL: It is important that you keep ALL receipts for premiums you have paid in! Keep a record of all payments and dates! Insurance companies are overwhelmed with everything they have to keep track of. Some of this information can and sometimes get lost. Let's say that the time has come when you expect the Insurance Company to pay you your benefits. Now let's say that it is 'your' information that got lost. It would be easy for the Insurance Company to claim they have no record of one of your payments. Thus, making your policy 'null & void'. Of course this may never happen. But, you can rest assured that if it did, you would be prepared with all the documentation you need.
Please move on to the conclusion of the article
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