Insiders’ Tips for Buying Life Insurance – All You Need To Know

Trying to find the best deal for life insurance can be particularly tricky and because of this many people are buying cover that is not necessarily the best deal they could get.  As this is a concern to us, we want to help you find the best cover possible with the best deal, especially if you are looking for life insurance over 80 with health problems

By following the insider tips in this post, you could save a considerable amount of money on the next life insurance policy you want.  As life insurance is a long-term investment, get the most for it.


See Your General Practitioner Or Family Doctor Before Applying

Regardless of whether you are applying for a Permanent life policy or a low-cost term life policy – all life insurance policy applications require you to undergo a medical examination.

We specifically suggest that you see your doctor before you start the application process to ensure that any unresolved issues on your medical records are sorted and that they include the most up to date information.

Many life insurance providers will request current and up-to-date medical records from your GP or family doctor.  If you have made significant changes to your health or lifestyle since the last time you were examined, it is crucial that these are highlighted in your records.

It may be that you were previously were overweight or a smoker and suffered from high cholesterol or high blood pressure.  You want to avoid being penalized unnecessarily by policy providers, particularly if you have stopped smoking or are in the process of quitting, have started a healthier living regime or simply improved your diet.

The more positive your health profile appears to life insurers, the better you will be rated.  All policy providers rate customers based on their health and each rating can cost up to 20% more which can mean a saving of as much as 25% of what you will be due to pay, if you have improved your circumstances.


Always Ask Agents For Screenshots Of Quote Results

Why is it important to ask agents for screenshots of quotes they generate?

It is unfortunate, but common that many agents tend to have a certain level of bias towards particular life insurance providers, and it could be that they are trying to pass more business on to a specific company.

Although it is not always that they are simply trying to trick you.  There is often good reasons for not quoting you specific companies.  If you have revealed something about your lifestyle or health that could stop you getting the lowest quote or best deal, for instance, they may not quote the most favourable company. 

Since you will never know for sure, it is wise to ask the agent to take a screenshot and show you it, even if it is via email, so you can see the quotes they got from their search.  If you discover that the quote they gave you is not the lowest, you could ask them politely why they didn’t put forward the best quote to you.


Layering Term Policies To Save Money

How do you go about layering term policies?

Many people sit down and figure out exactly what they need from life insurance and make the decision to buy a big and expensive policy that will cover everything.  However, there is no need to do this if there are aspects of your policy coverage that you no longer require after 5, 10 or even 15 years.

Basically, layering term policies means you are buying several term policies to cover different periods of time and purposes.  That way, when you do not need a cover for a specific reason you can simply cancel the policy.


Choose Annuity Over Lump Sum Payout

Although most of you that know a little something about life insurance will understand that your beneficiaries are entitled to a completely tax-free lump sum when you die, if you die while your policy is still applicable.

Did you know, however, that there is another option open to you in regards to how your beneficiaries receive the payout?

This option is called an annuity payout and it means rather than receiving a lump sum, they will receive benefits over a specific period of years.  Choose carefully as most life insurance companies have varying options for annuity payouts.

Needless to say, opting for the option of annuity payout will lower the premium you have to pay.  Unless interest is included, there could be some tax-related issues.  Always check with an independent financial advisor or life insurance agent before you make the final decision.


Never Give Unnecessary Information Voluntarily

Avoid giving information pertaining to your lifestyle choices, family history or health if the insurer does not ask for them.  That way you will avoid being penalised unnecessarily.

If they don’t ask, there is no reason to volunteer the information. 

For instance, virtually all life insurance providers will penalise you if your parents ever suffered from cancer.  There is one or two life insurers that ask if any immediate relatives have had heart disease on their application forms.  Therefore if your mother died of cancer, you are not hiding anything if you answer the above question about heart disease by saying no.  Don’t make more problems for yourself by adding an additional note to say ‘she died of cancer’.


When You Should Apply For An Exam And When You Shouldn’t

Although life insurance policies that don’t require a medical exam seem more convenient, you should bear in mind that the majority of these policies cost around 3 to 5 times more than the policies that require a medical exam.

If you are a healthy young person, or even a relatively healthy older person, we we would advise you to opt for a medical exam policy if you are looking to save money.

We would usually advise against you buying a no medical exam life insurance policy, unless you suspect something is wrong with your body and want to secure life insurance before you see a doctor.  The only other reason you should consider a no exam policy is if you have a major health problem that will undoubtedly prevent you from securing an approved insurance application.

If you have never been officially diagnosed with any medical condition, you can answer all the questions honestly when applying for a no exam policy and still qualify.  Even if you have health concerns, you could take the time to discuss these with an independent life insurance agent before buying a policy.

That particular health issue might not actually be as bad as you initially thought and you could get better rates with a no medical exam policy. 

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