Buying Cheaper Life Insurance
Can you give me some tips on buying cheaper life insurance?
John
Baton Rouge, LA
In buying a life insurance, make sure that you are comfortable with the policy you are considering. Most states require insurers to provide a manual that would explain to their policy holders about life insurance terms, benefits and costs. Other than the manual, here are some tips for you to consider when buying life insurance.
Make sure to verify with your insurance department if the company and the agent are licensed in your state. Find an insurer that has earned a good reputation and is financially strong. You can get such information from your agent, business libraries or through the Internet. You may also refer to several rating agencies like A.M. Best Company, Fitch Ratings, Standard and Poor’s Insurance Rating etc., for the financial strength of these insurance companies.
Always answer your life insurance application accurately and truthfully. It may result to a cancellation of your death benefits claim if your insurer finds any false statements or information on your application. Notify your insurer immediately of any errors or missing information regarding your profile.
Most insured are usually given a trial period for their newly bought policies. In this “free- look” period, spend it on reading and reviewing your policy thoroughly. You may also take this as an opportunity for you to compare around for cheaper life insurance rates. If you change your mind and decide not to keep it, your company may cancel your policy and give you a full refund to any payments made.
If you find your existing policy expensive and wants to replace it, always inform your original insurer to cancel it before buying a new, cheaper life insurance policy. However, if your health has declined, you may no longer be insurable for cheaper life insurance rates.
Lastly, don’t fail to review your policy when a major event occurs in your life such as childbirth, marriage or divorce. This will ensure that you are still receiving adequate protection and that you have updated your named beneficiaries in your policy.
...