Low Life Insurance Premiums for Seniors

How To Keep Life Insurance Premiums Low


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If you’re a cost-conscious consumer, you’re probably asking yourself, “How can I save more money?”

A good place for you to start cutting expenses is by re-evaluating your life insurance policy. Why? Because prices are at the lowest level in years, says Byron Udell of AccuQuote, one of the nation’s leading life insurance brokerage firms.

“For the best deal, go for a 20-year or even 30-year guaranteed level-term policy because they’ll offer the longest protection. And year-after-year, the rate remains the same even if your health changes,” says Udell.

Here’s a look at the savings: In 1994, a $500,000, 20-year policy for a 40-year-old male, non-smoker cost $995 annually. Today, the same policy costs $375! That’s a 265 percent drop in rates!

AccuQuote provides these money saving tips to help keep premiums low:

1. Match the length of the policy to the need - If you’ve little ones at home it’s best to buy a policy that will keep you covered until they graduate from college. All too often people leave their families financially exposed. While a 10-year guarantee can be renewed in the 11th year, renewal rates can be outrageously high, and you may not be healthy enough to qualify for a new policy under the same terms. A better choice would be a policy that maintains coverage at a guaranteed rate for 20 or even 30 years.

2. Buy enough coverage - Many experts suggest 10 times your annual net income. This amount varies depending on such factors as your age and number of dependents. To find out the amount of life insurance you need, use a needs calculator, like the one at www.accuquote.com. Only you can really decide what your family should have. Having too much coverage is better than having too little. And, today’s rates are so low that there’s no reason not to have enough coverage.

3. Don’t buy the lowest price, buy the best value - Before selecting the lowest price, consider the financial strength of the company and the product’s features including the length of the guarantee period, convertibility rights and available riders. For company comparisons it’s best to call an independent brokerage firm, like AccuQuote - (888) 436-7878 - that deals only with companies that are rated 'A' or better by A.M. Best, and knows the ins and outs of the underwriting guidelines at various companies. It’s wiser to spend a little more money to buy a policy with better features, more flexibility and from a company with superior financial strength.

4. Fully convertible policies are best - Convertibility allows you to exchange your term policy for a permanent plan without having to qualify medically. This is an important consideration because of the risk that your health will decline increases as you age. Keep in mind that some policies only let you convert during the first years of the term.

5. Buy a policy with a guaranteed premium - Don’t assume all level-premium policies are guaranteed for level for the entire 10, 20 or 30 years. For example, some companies offer 20-year level premiums with only a five-year guarantee. After five years rates can change at the discretion of the insurance company.

6. If you smoke, find a tobacco-friendly company - Whether you smoke two-packs-a-day or have an occasional cigar or chew, most insurance companies are going to offer you rates at as much as triple the price they offer non-tobacco users. It is possible to find deals. The key is finding the right company. Work with a company, like AccuQuote, that makes it its business to know the different rules of multiple insurance companies. Only with this broad pulse on the insurance market is it possible to know which company might offer the most favorable rates to a given person, based on their individual profile.

7. Avoid the lure of “come-on” rates - To qualify for the lowest premiums, also known in the industry as preferred plus or “Superman” rates, you must meet strict health and lifestyle guidelines. Many people can’t. Be realistic about the rate classification you will qualify for.

“The goal is to find the best company, the best product and best price that’s right for your specific health and lifestyle profile. Talk with an experienced professional. Don’t expect to wrap things up with a five-minute Internet search,” says Udell, who is also an attorney, Certified Financial Planner (CFP) and Chartered Life Underwriter (CLU).

For a free quote, call AccuQuote at (888) 436-7878 or visit www.accuquote.com.