Being under-covered or over-covered on your term life insurance policy can be wasteful, costly, and will not address your immediate financial needs. The right term life plan should encompass all your financial concerns.
Preferred rates are insurance premiums which are lower than the standard cost. These rates are typically available to individuals who qualify as being of exceptionally good health. You can save up to 20% or more under some preferred rate policies.
Even if you’re a smoker, some life insurers offer preferred rates exclusive to smokers who demonstrate that they are in a good state of health and are willing to undergo medical tests confirming them as such.
The shorter the term, the cheaper the policy typically is. However a short 10-year term is less effective at protecting your 20 year mortgage than a 20-year term is. Term lengths average out the premiums you would pay each year into a lower standard price. This means that a 20 year term will cost less than two 10 year terms.
If you have a debt that will take longer to pay off, consider insuring yourself for a term that reflects the repayment time. Likewise, insuring yourself for longer than your repayment time may leave you with extra coverage in the future that you may not need. So, please review the benefits of each term length before deciding which one you will need.
We can’t be fully financially literate on every decision we made, but it can be to your benefit to understand all the stipulations, exclusions, costs, and requirements as underlined in your Term Life Insurance policy. If you have any questions regarding any details of your policy, it’s important to make sure your financial advisor can properly explain them to you.
In addition, you should review your life insurance policy annually to make sure that you understand the details of your financial strategy, and make changes where needed.
Every life insurance company offers something unique, and while you might be able to get the best deal on paper, finding the right term life insurance solution means looking at all the details of your policy and comparing them to other products on the market.
A financial advisor is a valuable asset in helping you weigh the various benefits and drawbacks of each policy that are available to you. For a free, no-obligation quote, we encourage you to fill out the form above, and our qualified financial advisors would be happy to help you make the right decision.
Quitting smoking is a clear sign to insurers that you are serious about improving your health and lifestyle choices. Although insurers handle the definition of a non-smoker in different ways, you typically need to have stopped the habit for at least 12 months in order to qualify for non-smoker rates.
When compared to non-smokers, the average smoking rate for an insurance plan can be anywhere from 20%-50% higher depending on the plan type and coverage length. As a smoker trying to quit, don’t lie on your application to try and get better rates, it won't help you in the long run. Instead, purchase a plan to have temporarily as you are quitting the habit and reapply for more affordable coverage once you have gone a year without smoking.
Don't be afraid to ask any questions you may have when purchasing a life insurance policy. Always have some questions prepared and bring them to your next meeting with a professional to help clear up any uncertainties or concerns.
In order get the most out of your plan, you should be asking about additional riders, premium payment structures, and even your death benefit. Never purchase a policy assuming certain aspects of the policy you are buying, always get clarification.
Knowing when to review your life insurance coverage is crucial to ensuring that those who matter most will be taken care of. Certain life events such as getting married and having a child are perfect examples of ideal times to review your insurance policy's beneficiary. You'll want to make sure your plan's benefit will go to the right people to ensure their financial future is secure.
Getting a raise and a promotion should also be a time when you consider reviewing your coverage. The fact that you are making more money means that your life insurance may have to change to accommodate and maintain your family's new lifestyle. In the end, any large change in your life is a time when you should be re-evaluating your policy to ensure you are getting the most out of it.
Waiting to get insurance is one of the biggest and most common mistakes people can make when shopping for a policy. It's always advisable to get insurance when you are young and healthy as it will be much cheaper as opposed to when you are middle aged. Waiting to get insured can be detrimental as you could fall ill or become injured which will make a life insurance policy much more expense and difficult to obtain.