subject: When The Life Insurance Rates For Your Chosen Policy Is Too High [print this page] If you are prudent and financially smart, you will determine your need first and then try to pick up a policy that covers such needs. It is a fact that, there are different types of life insurance policies, each of which has been created with a particular need in mind. Therefore, for optimum benefit, look through all of them and compare the pros and cons of each before you choose the one that matches your need.Now, the question is how to determine your need. In actual practice, calculating your need, which depends upon diverse factors, is a very complicated task. Basically, the function of a life insurance policy is to replace the income of the deceased and to help the dependents to live a dignified and fruitful life. Therefore, taking into account the financial needs of your dependents after your death should be your first priority. Beside that, you should also consider your age, income, assets, liabilities and investments for the proper calculations of the need. If your need is immediate you can opt for instant term life insurance, which provides coverage without mandatory medical test. Otherwise, go for traditional term life for best protection of your family.Calculate your need first with the help of online estimation tools available with leading life insurance websites. Once that is done, you can start looking for quotes. These too are found online and receiving multiple quotes is not a big deal. By comparing the different quotes, you can actually have a clearer idea about different life insurance policies. Choose the policy, which provides the maximum death benefit at minimum cost. At least, see that the death benefit is large enough to cover all their expenses in case of your premature death.
Experts suggest that you should cover for at least 5 to 10 times your annual income but it would be better to calculate your own amount of coverage with the help of relevant factors. This would help make sure that your policy would be able to fulfill the needs of your dependents. If there are any special needs for your dependents at the outcome of the policy, it is better to take them into account as well while deciding the amount of coverage on your policy. One must keep in mind that your insurance policy offers lower life insurance rates for the right amount of coverage or you may have to reconsider the insurance policy.
What if the life insurance rates for your chosen policy is higher than you would like it to be? The best thing that you can do is to have a thorough look at your own underwriting profile and see that if there is any scope for improvement there. Remember, your life expectancy is a key factor in determining the life insurance rates. Try to improve it to get better rates and at the same time, each insurer has a separate set of underwriting guidelines and so if your underwriting profile does not match with the requirement of one, it will definitely match with some other.
More than anything else, your life expectancy is the key factor in determining your life insurance rates. It mainly depends on your age, health condition, lifestyle and other factors. If you are young and have good health, you will receive huge coverage at reasonable rates. If you want, you can have an idea of your life expectancy with the help of several online tools provided by leading insurance websites. However, the carriers will expect you to undertake a paramedical test, so that they can have a clearer idea. Of course, if you want to avoid the medical test, you can opt for instant term life insurance that exempts you from appearing for one. However, the life insurance rates for life insurance no exam are much higher.
One can also consider buying special insurance options which present a much better opportunity than life insurance no exam option to make an intelligent life insurance investment. These options are offered by specialized insurers to people suffering from a specific health condition based on the assessment of the severity of the condition. Unlike life insurance no exam option, this is not an instant term life insurance option but offers greater benefits which make the investment worth it.
It is also important to manage the policy in an intelligent manner to get the best results possible. You can consider making a reassessment of your insurance needs at regular intervals to optimize your insurance policy for greater benefits. It is also important to know the worth of your insurer before you buy insurance for which you can check out the market ratings of the insurance firm. These ratings are assigned by accreditation agencies based on an evaluation of market performance and capital worth of the insurance company.
When The Life Insurance Rates For Your Chosen Policy Is Too High
By: David Livingston
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