Affordable Life Insurance for 2012
Posted by Lenny Robbins on Thu, Jan 05, 2012 @ 03:44 AM
You probably know that life insurance will help protect your family in a crisis and that it can also help you meet financial goals in your estate planning and pension maximization. Yet, how can you get affordable life insurance?
No Discounts with Life Insurance
Now, everyone loves a sale, however, insurance rates are not priced the same way as things you buy in a store. Instead, life insurance prices are set by insurance companies according to these criteria:
- Policy type, whether it is term (and length of term) or permanent
- Rating class for insured (which considers health, family history, job, dangerous hobbies and medical tests)
- Age of insured
After the company sets the prices, they send them to the state department of insurance, so these prices are fixed and can't be discounted.
Financial Security of Different Insurance Companies
A.M. Best rates insurance companies according to how financially secure they are, from A++(the best), to S (suspended). While you want affordable life insurance, you also want to be sure that the company you buy life insurance from will be there when you need it.
The Truth about Affordable Life Insurance
All life insurance policies from highly rated companies are about the same price for people who are the same age and rating. However, not all of the policies are exactly the same. Some work better for different situations. That is why an independent insurance agent can help you to find the best, most affordable life insurance for you.
How an Independent Agent Helps You
An independent insurance agent does not work for a particular company, so they can talk with you about the advantages and disadvantages of different policies. Here is how an independent agent helps:
- Pre-screens you by asking questions about your health, medications, family history, and risky hobbies or jobs
- Gives you an estimated quote on different types of policies based on the rating they expect you would get
- Helps you understand why you would get that rating
- Advises you about different types of policies
- Matches you with the right company
- Guides you through the application process
The Bottom Line
The most affordable life insurance is the one which best meets your financial needs. An independent agent is your best guide on that path.
P.S. The longer you wait, the older you'll be, and the more expensive your insurance will be!
Photo Credit: Elliott Brown