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A Few Reasons to Review Your Life Insurance & Consider a New Policy

by Guest on June 1, 2011

Are you paying too much for term life insurance?  When was the last time you checked whether you could get a better rate on your term life insurance policy?

Term life insurance rates have been dropping in the last 15 years, and continue to do so, as life expectancies rise and interest rates are currently low. If you have term life insurance, chances are you’d probably find a cheaper life insurance policy or a larger coverage for the same amount of premium if you knew how simple life insurance reviews were!

Term life insurance is the simplest form of life insurance available. It offers financial protection for your family against your unexpected demise. Term life insurance, as the name implies, is active for a specified term period of say, 10, 20 or 30 years. During this time, premiums must be paid regularly or the policy will lapse. There is no cash value or interest component attached to this type of policy and therefore it is one of the cheapest life insurance available.

Here are a few tips for getting better life insurance rates:

• Cash in on your youth while you can. The younger you are, the better your chances are for getting the best life insurance rates. You can choose a term life insurance that locks in those rates (called Guaranteed level term life insurance) for the entire term period! That’s one way to make sure you get cheap life insurance. Because life insurance rates have declined, you might be able to find a great deal with a free rider.

If you are young, avoid purchasing a life insurance policy through your employer. The pricing of group life insurance policies factors in the average age of the entire group. This means your premiums help to cover premiums of those who are older than you. You’ll wind up paying more than you would for an individual term life insurance policy.

• Do you have an existing life insurance policy? Increasing life expectancies and the competitive nature of the life insurance industry is constantly pushing prices down. This is why purchasing a new life insurance policy may work out to be cheaper than keeping an existing policy. Besides, with Internet life insurance quote providers, it’s so easy and convenient to compare life insurance rates and see whether it’s worth pursuing a change in policy.

• You’re paying more than “preferred” rates on an existing policy. Even with pre-existing health conditions, you may be able to find life insurance companies that favor your specific health conditions.

The life insurance industry is competitive and there are some companies who look more closely at the details of your health than others. Say, you’re slightly overweight with not too bad a cholesterol problem. There are life insurance companies who would differentiate you from those whose heart health concerns have more serious implications. Such companies may offer a cutting edge difference on the premiums you need to pay.

• If you have stopped smoking for more than a year. Ask your life insurance carrier to re-assess your policy because you have quit smoking, or look for another carrier. Most life insurance companies offer better life insurance rates to those who have quit smoking for more than a year.

• If you have lost weight or are in better health now, than you were when you purchased your existing policy. You should get your life insurance carrier to re-assess your existing policy and see how that rate compares to the life insurance rates of other companies if you were to purchase a new policy.

Different life insurance carriers use different criteria for their underwriting process. An occasional cigar or being overweight can knock off your chances for getting a good life insurance rate with some companies. But you’ll find others can be more favorable. That’s why the more you shop for life insurance the better your chances are of getting best life insurance that suits your particular situation at the most affordable price.

This is a guest post written by Denise Mancini from AccuQuote.com

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