Remember that the life insurance quote is a mere estimate, not the actual cost. If you study these quotes properly, you will be bale to understand how the rates are determined. To understand better, you first receive your own quote; next change just one parameter at a time. You can first increase your age or invent some diseases. You will find that each time you are being supplied a different quote. Therefore, you see that the quotes can show you how you can acquire the coverage at affordable rates. Here are also some other points you can act on:
Shop around for the best quote
Live better and improve your health
Quit smoking
Reduce weight
Try group insurance
Approach the current provider
Improve credit history
Revamp motor vehicle or police records
Try out cheaper policies
Shopping around for suitable rates is one of the most important aspects of policy buying. Each carrier follows a different set of underwriting guideline and this may affect the price structure differently. Always receive quotes from various carriers and compare them for the best price vis-à-vis required coverage. The insurance life rate is actually based on the carriers assumption about your lifespan and so leading a healthy lifestyle is almost a precondition for receiving cheap rates.
Tobacco products always have an adverse effect on your health. Quit the habit for a year at least before you apply for coverage. Higher body mass index can also cause many diseases and so try to bring it down to normal level as well. Another way to garner affordable insurance life rates is to try group insurance. If your employer does not already have such plans, try to convince him into buying such plans. With your employer paying half the premium amount, you get a wide coverage at an affordable rate.
Of course, you can buy group insurance through labor unions or even hobby clubs; but in these cases, you may have to pay at comparatively higher rate. Approaching the current insurance provider may also help. There is something called multiple policy discounts; if you are eligible for it, you may garner cheaper insurance life rates. The more policies you buy from a particular insurer, the larger will be the discount. If you want life insurance no medical, you can try one of these; otherwise, you will have to pay at a very high rate.
Insurance companies will definitely study the credit worthiness of an applicant. The credit worthiness will indicate if the applicant will pay all his premiums on time and without defaulting. So, if you have a poor credit history, try to repair it before applying for life insurance. Those who have a bad driving record, major injury, criminal record or drug abuse history will not be eligible for life insurance. Such people can wait it out, and stop using drugs or drinking, improve driving record etc., before applying for life insurance. Finally, if you find after receiving a quote that the insurance life rates are high, you can opt for some other form of insurance where the rates are more reasonable. The insurance life rates also depend on the policy you buy. Term life policies are the cheapest, but since they are pure life insurance policy, they do not provide anything other than death benefit. If you want the cash value option, you can go in for universal life insurance; they use a part of their premium to accrue cash value. You can cash out the policy after stipulated years or can take loan from it. A term life does not offer any such benefit.
Another difference is that, you can buy a term life at the most for thirty years, but a universal life covers you until your death. Therefore, under universal life, there is no chance of the insured outliving the term even as he is still in need of the coverage. Another advantage of universal life policies is that it induces compulsory savings and so if you are not financially that disciplined; it is a far better option. Term life is cheap, but it requires you to invest separately for capital building and self-insurance.
There are different types of universal life insurance: Indexed life insurance and variable universal life insurance. The former gives interest based on certain financial index and the policyholder will be offered protection even if the index falls below zero. The latter gives the policyholder the option of allowing the insurance company to invest part of the premium at their discretion. The main drawback of universal life insurance is that it is very expensive. So, compare both term and universal life insurance and their costs with the help of a life insurance quote before choosing one.
Shop around for the best quote
Live better and improve your health
Quit smoking
Reduce weight
Try group insurance
Approach the current provider
Improve credit history
Revamp motor vehicle or police records
Try out cheaper policies
Shopping around for suitable rates is one of the most important aspects of policy buying. Each carrier follows a different set of underwriting guideline and this may affect the price structure differently. Always receive quotes from various carriers and compare them for the best price vis-à-vis required coverage. The insurance life rate is actually based on the carriers assumption about your lifespan and so leading a healthy lifestyle is almost a precondition for receiving cheap rates.
Tobacco products always have an adverse effect on your health. Quit the habit for a year at least before you apply for coverage. Higher body mass index can also cause many diseases and so try to bring it down to normal level as well. Another way to garner affordable insurance life rates is to try group insurance. If your employer does not already have such plans, try to convince him into buying such plans. With your employer paying half the premium amount, you get a wide coverage at an affordable rate.
Of course, you can buy group insurance through labor unions or even hobby clubs; but in these cases, you may have to pay at comparatively higher rate. Approaching the current insurance provider may also help. There is something called multiple policy discounts; if you are eligible for it, you may garner cheaper insurance life rates. The more policies you buy from a particular insurer, the larger will be the discount. If you want life insurance no medical, you can try one of these; otherwise, you will have to pay at a very high rate.
Insurance companies will definitely study the credit worthiness of an applicant. The credit worthiness will indicate if the applicant will pay all his premiums on time and without defaulting. So, if you have a poor credit history, try to repair it before applying for life insurance. Those who have a bad driving record, major injury, criminal record or drug abuse history will not be eligible for life insurance. Such people can wait it out, and stop using drugs or drinking, improve driving record etc., before applying for life insurance. Finally, if you find after receiving a quote that the insurance life rates are high, you can opt for some other form of insurance where the rates are more reasonable. The insurance life rates also depend on the policy you buy. Term life policies are the cheapest, but since they are pure life insurance policy, they do not provide anything other than death benefit. If you want the cash value option, you can go in for universal life insurance; they use a part of their premium to accrue cash value. You can cash out the policy after stipulated years or can take loan from it. A term life does not offer any such benefit.
Another difference is that, you can buy a term life at the most for thirty years, but a universal life covers you until your death. Therefore, under universal life, there is no chance of the insured outliving the term even as he is still in need of the coverage. Another advantage of universal life policies is that it induces compulsory savings and so if you are not financially that disciplined; it is a far better option. Term life is cheap, but it requires you to invest separately for capital building and self-insurance.
There are different types of universal life insurance: Indexed life insurance and variable universal life insurance. The former gives interest based on certain financial index and the policyholder will be offered protection even if the index falls below zero. The latter gives the policyholder the option of allowing the insurance company to invest part of the premium at their discretion. The main drawback of universal life insurance is that it is very expensive. So, compare both term and universal life insurance and their costs with the help of a life insurance quote before choosing one.
