Term Insurance

• Insurance companies offer better premium rates based on the amount of coverage i.e. coverage levels of $100,000, $250,000, $500,000 and $1,000,000.  Therefore always buy an amount slightly higher than the break point.
• Always shop for a level-premium policy i.e. Term to 100.  Insurance companies bank on the fact that you will not renew your policy for another term once you see the renewal rates. By cancelling your policy, you are allowing the insurance company to walk away from the risk having pocketed your premiums over the years……and earn a nice profit.
• Determine your desired duration of coverage so that you purchase the correct type of policy and keep your premium payments affordable. If you only need insurance for 10 years, then buy 10 Year Term.
• Check out multiple-quality insurance companies for their rates by using Barrons quote system. Rates can vary dramatically by insurer.
• Don't be quick to add-on policy riders.  A very few number of policies ever pay under these riders, so avoid things like the accidental death and waiver of premium riders since all they do is increase your premiums.
• For 24 hours before your medical exam, keep sugar & caffeine out of your system. It's best to schedule your exam early in the morning, and don't consume anything but water for at least eight hours beforehand.
• If your premiums are much too high due to medical reasons or you are denied coverage, check if a group plan is available through your company. These group plans require no medical exam or physical.
• Never buy creditor/mortgage insurance (a form of term insurance) from a lending institution such as a bank. Check out more reason why now
• Purchase a joint policy (on you and your spouse) rather than two individual policies and save one annual policy fee i.e. ranging from $75 to $150 annually.
• If you can afford it, pay the premium annually since insurance companies charge extra if you pay on a monthly basis.
• Where possible, try to “save age” by backdating the policy. You might have to pay a few months coverage but over the term you can easily offset that cost.