Top 10 Things To Avoid When Buying Life Or Health Insurance

Medical and life insurance both cost money, but not having either costs more. You can still have insurance and save money. If a small accident can wipe out your savings account, what would a major illness do to your account? Or worse…

Below Are 10 Things To Avoid When Purchasing Health or Life Insurance

1. Tell the truth: On the application for insurance, you will be asked a series of questions. Some people think that they can get by with little “white ones” on the application to get lower rates. No need! You can rest assured, insurance companies aren’t about to take a loss. They investigate. If a large claim is made, you’re just about guaranteed they will investigate before paying.


2. Educate Your Agent: Michael Fry, @michaelfry cautions his readers on life insurance web sites that simply sell your personal information to insurance agents. He educates us that the insurance agent who purchases your contact information is very likely, from the questionairre you filled out, to be unaware of all of the factors involved in determining the best life insurance policy and premium for you. If this is the case, and it is more often than not, you could be the one “paying for this” through your premium.

3. Don’t automatically buy term life insurance because it’s the least expensive. Term life insurance is absolutely appropriate for many people and it is without a doubt the most affordable. However there is a large amount of other insurance types and one may be more appropriate for your current situation. A Top 10 USA Licensed agent will be able to show you all of your options.

4. Consider the financial implications of owning life insurance. The cash value of a life insurance policy is considered an asset. You may need to consult with a financial adviser to understand how the policy can change your life.

5. Robert Slayton @rcslayton encourages you to seek out your Insurance agent’s assistance. He informs us that the price we pay for insurance through an agent is exactly what we’ll pay if we go directly to the insurance company itself. However, we get no benefits for going direct to the Insurance Company. The difference, he says, is your Agent knows the marketplace (or should). Your agent can also let you know which insurance company would work best with your individual circumstances. Because your Agent will earn a commission if they help write a policy for you, they have a vested interest in helping you with questions, problems, or adjustments to your policy.

6. Make Sure The Agent Is Licensed. All insurance agents must have a state license and all agents with variable products must be registered with FINRA. Look for an agent with professional accreditation's. Ask if they are a member of the National Association of Insurance and Financial Advisers, the Society of Financial Service Professionals, or a similar body. All Top 10 USA Agents have the appropriate licensing.

7. Stop smoking and lose weight if you need to. You’ll get better rates. To be considered a non-smoker, you must have been tobacco-free for 12 to 24 months. There can be as much as a 30-50% savings between smoker and non-smoker rates. Stop smoking now and, depending when your policy renews, you could be eligible for much lower rates!

8. Don’t think you’re too young. You are never too young for life insurance. If you you purchase a life insurance policy at a young age, you can pay a very small sum every month. At age 40, that policy can be converted to a permanent policy.

9. Don’t think you have to pay full price. Did you know if you purchase insurance for people in your family you could get a discount? Jason Pollington @jasonpollington tells us that the more people in the family who purchase from the same company can qualify for better discounts.

10. Watch out for “know-it-all” agents. This really goes for any professional service. Nine times out of 10, if someone wanting to do business with you has a know it all mentality, they probably know very little. You will see this a lot in sales and marketing. Avoid the know it all, Insurance policies are complicated, and even the best agents or advisers don’t know every product fully. There is nothing wrong with that. The best agents, know where to look for the answer.

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