Before you buy Life Insurance, there are 5 (five) simple  —but somewhat lesser-known— tips you really should know.

At the risk of sounding like one of those TV commercials or Radio ads (that we’ve … ‘poked at’, for being misleading), the truth is; knowing these quick tips —before you buy— could actually help save you time, money… And awholelotta hassle!

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#1

TERM LIFE INSURANCE IS (ALMOST ALWAYS!) THE BEST CHOICE

If you’re looking for financial security for your family, at a great price; term life insurance is your firs/best “GO-TO” choice.

You’ve probably heard a radio commercial that says:

“Joe, who is a 40-year-old non smoker in good health, got a $500,000 policy for just $23 per month”

Well, that’s an advertisement for Term Life Insurance.

There are two major types of life insurance:

• Term Life Insurance (temporary)
  lowest cost option, provides coverage for 10 to 30 years, premiums stay level during the “term”
• Whole or Universal life insurance (permanent)
  costs up to 20x more, has an investment component, designed for lifetime coverage

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Types of Life Insurance, in Perspective

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The Truth?

Very few people need whole or universal life insurance. That’s not to say these products do not have their ‘time and place’… and correct applicant! But, for the most part; only very savy investors —and people with estate planning needs— should buy whole life insurance.  

Our Advice?  

If a salesperson has tried to convince you to buy whole life insurance —if/when all you really need is term— just say “no thanks” and buy term instead.  But, first… make sure you know your options! Life Insurance is a very complex product. And it is definitely NOT a “one-size-fits-all” product. Your individual goals and circumstances may make either Whole or Universal Life Insurance a much better fit.

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#2

WHEN TO USE AN INDEPENDENT LIFE INSURANCE BROKER

Although it may seem impossible (bordering on suspicious!) that we could ever be genuinely “UNBIASED” about this one, the honest answer —really and truly— is… ***ALMOST ALWAYS! ***

Unless you are young and in perfect health, in which case Life Insurance is likely not particularly ‘top of mind’; there are several significant benefits to consulting with an experienced licensed independent broker BEFORE YOU BUY!

For example, If any of the following apply to you:

• You smoke (tobacco or marijuana)
• You have any health condition (from high blood pressure to asthma to diabetes or heart disease)
• History of cancer or heart disease in your family
• You travel outside the US
• You participate in hazardous activities (parachuting, hang gliding, rock climbing, auto racing, etc)
• Over 70 years old
• Or if you’re overweight

… then, in these cases, you are very unlikely to qualify for ANY of the newer “D2C Life Insurance” offerings and, as such; you would benefit greatly from getting competitive quotes AND having a quick —but “frank!”— discussion with an experienced independent broker to make sure you know all your options.

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You see, every company treats all of the issues above differently.  

Some companies might charge you 50% more if your mother had cancer. Other companies may not penalize you at all.

Some companies make you pay smoker’s rates if you smoke cigars or use marijuana.  Some companies will let you pay non-smoker rates.

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#3

CONSIDER STARTING WITH A “NO MEDICAL EXAM” PLAN

Once you’ve chosen the right type of life insurance, you’ll need to decide how quickly you want coverage.  

There are two basic options when you apply for life insurance:

• Take an Exam –
  Usually gives you the best price but requires an abbreviated medical exam in your home (typically includes blood & urine sample)
• No Exam –
  May cost 10% to 20% more, but it’s quick and easy. So, you really have to ask yourself: how much extra are you willing to spend, per month; just to avoid a very simple (and free!!!) in-home health check up?

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#4

GET MORE THAN ONE QUOTE

Think about it this way:
You could be paying monthly premiums for your life insurance coverage for 10, 20, or even 30 years (or more!).  

So, a difference of just 5-10% per month could save you hundreds —if not thousands of dollars— over the lifetime of the policy.

We’ve learned many savings tactics, over the last 3 decades. So, don’t “go it alone”! There is absolutely NO COST for our advice!!!

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#5

CONSIDER LADDERING YOUR POLICIES

A great way to save money, if you need a lot of term life insurance; is to split up your coverage into two policies.

For example, you could save about 20% by getting a 10-year term policy and a 30-year term policy for $500,000 each, instead of a single 30-year term policy for $1 million.

Just note that the first policy, in this case; would EXPIRE after 10 years.

So, of course; this only works if you know “you’ll be oka”y with that first $500k dropping off… after year 10.  

You could use this if:

• you’re paying down mortgage or other debt and won’t need as much coverage in future years
• you’ve got an inheritance coming prior to the first policy expiring
• you expect to pay off a debt or no longer have the obligation after the initial term policy expires

You do not have to *split up your policies* into 10 and 30 year terms, by the way.  You can do any term lengths you like!

It’s all quite overwhleming. We know. But that’s …what we’re here for!

Just call us, if you need help:  888-681-4952

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Agree OR disagree with these 5 Tips? Or… Do you have more to add/suggest? We welcome & appreciate all of your comments. Please chime in!

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