Obtaining life insurance to protect yourself and your family is very important to your loved ones. In California, there are many options available for you regarding term life insurance. If you are thinking about purchasing this type of insurance, or are wondering if you already have enough coverage, the following ten purchasing tips may answer many of the questions you may have.
Buying Term Life Insurance Coverage
1 – You should never wait until you are absolutely in dire need of coverage. By the time you actually need it, you may have much more difficulty qualifying for it. This could also cause your premiums to be much higher than you originally anticipated, which is a problem in and of itself. Buy coverage earlier in life and save yourself the worry later on in life.
2 – High financial ratings do not affect the level of coverage that you receive. This means you should look for “A” rated companies, but compare the rates offered to you as well, because a better rating does not necessarily mean a better premium or even better coverage.
3 – Have you been considering the purchase of $90,000 in this type of coverage, or $200,000 in coverage? Opt for $100,000 in coverage or $250,000 in coverage instead, because it usually does not cost that much more to add this additional coverage. Breakpoints are often offered at $100,000, $250,000, $500,000 and so on.
4 – Consider obtaining coverage directly through your company plan, at least for a short-term basis. However, be aware that most life insurance plans are not portable and therefore are lost if you ever leave the company.
Paying for Coverage
5 – Shop around online before you meet individually with any specific insurance agent. Many online life insurance companies can be an incredibly useful source of information, and you may find yourself saving a lot of money on your term life insurance premiums if you take the time to shop online before any decisions are made.
6 – If you can afford to pay annually instead of on a monthly basis when looking at premiums, opt for that. You can save as much as twenty percent of your premiums if you pay annually rather than monthly. You may still save if you pay quarterly or semi-annually instead, so explore this option with your broker.
Qualifying for California Term Life Insurance
7 – If you do not smoke, do not start. And if you do smoke, now would be a very good time for you to quit. Being a smoker simply is not going to help your cause if you are trying to qualify for insurance. Some companies may allow you to re-apply for a nonsmoker rate if you have not smoked in a year, so quit now and reap the benefits of cheaper rates a year from now.
8 – Control any blood pressure or cholesterol issues with medication, because insurance providers do not want to see any prevalent health issues going unattended. If you are already controlling a problem such as this, your company will more than likely look at it as a favorable thing.
9 – When trying to qualify, prepare yourself beforehand so that your results are favorable.
10 – Your term life insurance company has a unique way of judging your age. If you are closer to 31 than to 32 for example, you will be viewed as 31. If you are closer to the age of 32 than 31, you will be viewed as 32 years old. Premiums can easily increase with age, so if you are looking to purchase and qualify for good insurance, waiting really is not an option!