If you're healthy, avoid guaranteed issue policies
Guaranteed issue policies typically do not require a medical exam, which is why they are generally more expensive. A guaranteed issue policy is available to everyone, healthy or not, and this is reflected in higher premiums.
Note: Guaranteed issue policies are great for people who are unable to get any other life insurance. While it may be more expensive then a standard policy, it is still worth having a guaranteed issue policy over having no life insurance coverage at all. |
Compare standard and preferred quotes - but not to each other!
There are two basic life insurance rate groups: standard rates and preferred. Most people qualify for standard life insurance rates, while only about one third of the population is eligible for preferred rates.
Preferred rates are offered to exceptionally healthy people and means that you may pay a smaller premium than most. Usually preferred rates are offered only once the results of the medical information and tests are known.
So how can you qualify for preferred rates?
If you are in excellent health and you apply for amounts of $250,000 or more, based on a number of health and lifestyle factors you may qualify for a preferred rate. A preferred rate is a reduction in rates from the standard or regular rate that rewards good health. When you apply for insurance, the Licensed Insurance Advisor will ask you a series of questions that will indicate whether you could be eligible for a better rate.
So how much could I save?
The following provides examples for a $500,000 10 Year Term Life policy for a 30,40 and 50 year old Male and Female Non-smokers:
| Male | 30 Year Old | 40 Year Old | 50 Year Old | | Standard | $27.00/ month | $38.25/ month | $84.15/ month | | Preferred | $20.25/ month | $27.00/ month | $59.40/ month |
| Female | 30 Year Old | 40 Year Old | 50 Year Old | | Standard | $18.45/ month | $27.72/ month | $58.05/ month | | Preferred | $14.85/ month | $20.70/ month | $40.05/ month |
*All rates were based on CompuOffice Software Inc's LifeGuideŠ Comparison Software on March 10th 2008 and are subject to change without notice. |
