Get the Lowest Insurance Premium Possible
Posted by Lenny Robbins on Wed, Dec 07, 2011 @ 03:50 AM
Have you delayed getting life insurance because you want the lowest insurance premium cost? Most of us want to make sure we get the best deal on our purchases, but we all know that sometimes a good "deal" can be a bad bargain if it doesn't meet your needs.
What is an Insurance Premium?
An insurance premium is the amount you pay to the insurance company for life insurance. Premiums are not the same for everyone. Each insurance company has specific guidelines which they use to determine your premium. An insurance underwriter determines your premium by using the information you provide, your medical exam, lab tests, doctor records and more. Following the guidelines of the particular insurance company, the underwriter will determine your rating (assuming you are approved) and make an offer of insurance with a specific premium for your life insurance coverage.
Why Can't I Rely on an Online Calculator?
You can't really use an online calculator because it doesn't provide an accurate quote. Online calculators are really just sales tools which are aimed to get your name, phone number and email address. They give you a starting point but aren't able to take all of your information into consideration. It's a great starting point, but if you have medical history or other factors that the calculator doesn't consider, it is not a realistic quote. The insurance premium calculator doesn't know what else to ask you, and if they did, the form would be so long that no one would ever fill it out!
Why Cheap Isn't Always the Best when it comes to Life Insurance
In reality, no online resources can really offer you an insurance policy, and no one company is the best for everyone. Most importantly, the cheapest insurance premium may not be a price you can qualify for. What you want is the best price for a rating you can qualify for, with a strong company (a rating of "A" or better). Here is where an independent life insurance agent can really help you, as they will know which company will look most favorably on your specific situation.
Should I Ask Friends for Insurance Company Recommendations?
When you hire a plumber or an electrician, it helps to ask for recommendations from friends or neighbors who have used that business. However, that doesn't work with life insurance. A life insurance premium is calculated based on age, medical history, family medical history, a paramedic exam and lab tests, etc. The calculations also include lifestyle factors like smoking, dangerous hobbies, or hazards you've encountered at work.
All of those factors mean that your insurance premium calculations will be very different from your neighbor's or even your best friend. If you go by recommendations, there is no guarantee that your friend's company will be able to give you the best possible insurance for your particular situation.
How can You Get the Right Information on an Insurance Premium?
That said, you can certainly ask friends for an independent agent referral. If they have worked with an agent and are happy with the service and insurance premium they received, then you most likely will be too. You need to work with an agent you are comfortable with. Check out their website and look at the state insurance department to make sure they don't have numerous complaints. A little due diligence goes a long way.
Only an independent insurance agent who has experience insuring people over fifty can shop around for the best deal for your particular needs and situation. Independent insurance agents are not tied to a particular company, charged with just promoting that company's products. An experienced independent insurance agent is able to look at all the available companies to determine which one offers the best policy and underwriting to meet your needs.
Independent insurance agents do the shopping for you. They already know all the different policies available at different insurance companies and they know how to read the fine print in the policies that you might miss. If you want the best possible insurance at the best possible premium, contact an independent agent.
Photo Credit: Dino Olivieri