You might be overpaying for Term Life Insurance if you’re not aware of these tricks.
Saving money on term life insurance seems simple at first.
You go to an independent agent who has access to multiple companies and he should be able to sign you up withthe company that has the most affordable rate.
Simple right? The unfortunate part is that there are many factors that might not get you to qualify for the cheapest rate.
Health Rating, Medical & Lifestyle Conditions are all factors that could affect your rate.
This is where dealing with an expert might save you some aggravation and potentially quite a bit of cash as well.
Our job at Boston Life Group is to simplify this process. We do the work to find you truly the most affordable rate for your specific circumstances.
Not all Health Ratings are created Equal.
Here’s a Hypotehthical situation. Josh is 35 years old looking to get a 20 year term life insurance for $500,000 that will cover him until his youngest daughter is done with college. Josh is 5’7” and 180lb.
He decides to go to his local independent life insurance agent. Here are the results for the top 3 most affordable insurance rates
Carrier A: $21/ Month Preferred Plus rate
Carrier B: $21.50/ Month Preferred Plus rate
Carrier C: $22/ Month Preferred Plus rate.
These are actual rates for a $500k 20 yr term for a 35 yr old male. To remain compliant, the name of the carriers have been removed.
Many independent agents would go with the cheapest carrier knowing that Josh is healthy. However, we can tell you for sure that Josh would not qualify for Preferred rate for Carrier A. Because of his rate he would qualify for their “preferred” rate which is $28/month. That’s a 30% increase. Imagine if the Josh was older, the difference would be even more staggering.
Josh would qualify for Carrier B&C. If Josh has no medical conditions and does not participate in any hazardous activities, he should go with Carrier B since it costs less than C.
Not all Tobacco Rating are created the same.
It’s a well known fact that any potential life insurance client who smokes tobacco will have to pay more.
However most customers and sadly most insurance agents don’t realize that carriers have different carriers describe “tobacco” differently.
Let’s take the example above.
Josh is very healthy but he smokes the occasional cigar once a month or so. Carrier B, would have downgraded Josh to what they call a Preferred Tobacco rating. His insurance premium would jump to $92/month.
Carrier C however would not rate him a smoker for the occasional cigar. They don’t deem his occasional smoking as deserving a Tobacco Rating.
They would issue him a preferred rate at $29/month. That’s a savings of over 60%.
There we see the danger of dealing with insurance agents who are clueless about underwriting.
Unfortunately, most just look at the premium rate and don’t realize that most insurance carriers have certain niches that could help their clients save quite a bit on their life insurance premiums.
Even for healthy people, certain minor health conditions might cause you to overpay on your premium.
Let’s pick on our guy Josh again, He’s very healthy. However, his mother was diagnosed with cancer at the age of 50. Even though she’s alive and well, her medical history would affect Josh’s premium for life insurance.
Many Term Life Insurance carriers charge a different rate for people who have a family history of serious health conditions such as Cancer, and Cardiovascular Diseases. Fortunately for Josh, Carrier C only cares about cardiovascular diseases and not cancer. Josh would be able to move forward with his $29/month life insurance policy. Carrier A would give a Regular or Standard Rating of $43/month.
The Benefit of dealing with Boston Life Group
Boston Life Group started as an agency that helps other insurance agents with their tougher cases. Our first clients include people suffering from depression, crohn’s disease, even prostate and breast cancer survivors.
Even for healthier clients, we are able to achieve a better rating than they would with the typical insurance agent out there. We look at your specific case and search through our company database to see which insurance carrier will look at you more favorably. If you’re in the market for life insurance, fill out the quote form to our left and we’ll reach out to you promptly.