Tricks of the Trade: How to Get the Best Term Life Insurance Rate

You have compared products and rates and after all that homework, it is time to buy term life insurance. There are a few basic tips you can follow in order to make sure you are getting the most affordable term life insurance rate. It is true, term life insurance is the cheapest life insurance product, but there are things you can do to ensure you are getting the best rate possible.

Use an expert:

They will not cost you a penny; in fact, they may actually save you a few pennies. Life insurance agents are, first and foremost, experts. They have the ability to determine your needs, find you the most appropriate life insurance solutions, and find you the best term life insurance rates out there.

Agents receive their compensation directly from the insurance carriers they represent. This means they are not trying to sell you a specific product from a specific company and can offer unbiased expertise. Also, rates are locked in by individual companies, so using an agent won’t increase your premium, because they are paid commissions separately by the carrier… and not tacked onto your policy.

So while many think of agents as being unethical, most are not, and it is worth finding one that will work for you. There are some things you can do to ensure your agent is one you can trust: choose an independent agent (you want an agent who can sell from a variety of carriers), your agent gives you a variety of options but allows you make the decisions, and your agent listens to your needs (rather than telling you your needs). Bottom line: make sure you feel comfortable with your agent.

Go into your exam, prepared:

After you apply for your term life insurance policy, the insurance carrier will set up a required medical examination for you. The insurance company covers the bill and the examiner will come to you. This is your chance to prove to the carrier that you are healthy and not a risk. Because of the weight of the exam, it is important that you take good care of yourself prior to the exam. For the few days prior to your exam avoid alcohol, sugar, tobacco, caffeine and avoid foods that are high in fat and cholesterol. Make sure you get enough sleep and get some exercise.

By preparing for your medical exam, your exam will reflect the best results possible, thus providing you with the best rates.

Shop… a lot:

Shop prior to purchasing a life insurance policy, either on your own or with an agent, but once you purchase said policy… you shouldn’t stop  there. While you have the best rate now, that could change. Due to the increasing life expectancy, term life insurance rates will continue to decrease, therefore the best rates will be found in the future.

If you do find a cheaper rate, you can easily switch coverage. There is no need to wait until your policy expires. You can drop your existing policy by not making payments, but make sure you have a new policy in place before you do so. If you found that your agent worked well for you, this would be a good opportunity to use their services again. They can continue shopping around for your and make sure you are aware of any new rates or products you would benefit from.