Personal Life Insurance Policies

Peace of Mind, Protecting The Ones You Love

The following are a few consumer-savvy things to keep in mind as you decide on a personal life insurance policy

Only buy a whole life policy if it makes sense for you personally, not simply because agents recommend it

Some insurance agents you talk to may try to sell you on whole life insurance policies. They will tell you that you can gain cash back interest in the policy, pay your premiums faster, and you'll be protected for life. The last part is true - you will be protected for life, and that is a nice benefit. But what the agents will not tell you about are the very high fees associated with whole life insurance policies, including withdrawal fees, transfer fees, and a number of other "fine print" stipulations woven into the contract.

Whole life insurance does make sense for a lot of who need personal life insurance, and it makes no sense at all for others. Use your own judgement and make the decision that is best for you, not your insurer.

Be honest when you request a quote

There is no good reason to lie or stretch the truth in order to make yourself sound healthier than you are. Be honest with your insurer and they will treat you well. If your exaggerations and/or lies ever come up in a claim that you or someone else makes, your insurer has every right to cancel your policy and/or refuse payment. It's not worth lying for short-term benefit at the risk of your long-term detriment so be honest.

Buy personal life insurance when you are healthy

It is cheaper and you can lock in excellent rates on personal life insurance if you do it when you are in good health - particularly now with rates at all-time lows. Don't wait until something serious comes up with your health. Personal life insurance rates are calculated using mortality tables, which are based purely on statistics and probability. If you are healthy, you are statistically less likely to die in the near future, so you are cheaper to insure. Give or take, it is that simple.

Don't settle for just one or two quotes

You can get insurers to budge, so do it. Get several quotes and call each insurer with your quotes in hand. Tell them that you have a competing quote with similar coverage for 10% less. Ask them to meet or beat the quote. Call another one and tell them the same thing. Don't be afraid to haggle prices. You may get no where but there is a good chance you will at least get a little something for your effort, and that something can save you thousands in the long run.