There are four little-known ways for you to save more money on your term life insurance.
If you’re looking for a potential life insurance policy, it’s hard not to be drawn to life insurance with a term due to its low cost and benefits.
If you’re on a tight budget, you may be wondering whether there are more options to cut down on the expense of securing the future of your loved ones.
Then, Get in touch with Ottawa Life Insurance on (613) 454-1424 or email us at info@ottawa-lifeinsurance.ca.
It’s good to know that there are four not widely known ways to save more money on your term life insurance.
Consider getting life insurance medical when applying for term life insurance.
Most insurance companies require those applying for life insurance to undergo a medical examination to assess their health. The insured person’s health is among the primary factors that determine what premiums you’re required to pay.
Be wary of “no health questions asked” whole life insurance plans as it means an insurance provider has allowed for many “unhealthy” people into their approved list. It is the reason they will charge more to cover the additional risk.
Reduce the term life insurance rates
However, if you can demonstrate with your insurance medical, you’re in good health, and your broker can suggest a product with higher health classes, which ultimately will reduce the cost of your term life insurance.
Make sure you’re prepared for the life insurance medical exam.
So you’ve decided to book a medical check for submission for the Insurance Company in the hopes of lowering the cost of long-term life insurance. What are the best tips and techniques to help prepare for the exam and increase the odds of getting the best medical result?
Test your blood for fasting.
If you can, avoid eating (no foods) during the 12 hours before the test. A fast blood draw can help provide better blood test results (for example, higher read on cholesterol), which could result in lower rates on life insurance.
Avoid caffeine
One of the ailments that insurance companies monitor to detect is high blood pressure. Do not consume foods or drinks that increase your patients’ blood pressure. Beware of caffeine (coffee tea, cold soda remedies, certain pain medications) for a period of 6-8 hours before your medical appointment, and avoid eating excessive amounts of salt for approximately one day before. Caffeine can increase blood pressure and pulse rate. It may even trigger an irregular heart rhythm (arrhythmia).
No alcohol
Beware of drinking alcohol for at least 24 hours before your exam. Alcohol consumption may raise your patients’ blood pressure and negatively impact certain parts of your blood tests.
Weights and cardio should be avoided.
Exercise that is strenuous or stressful must be avoided on the days before your medical appointment, as it could increase your blood pressure a notch or two. Exercise, particularly aerobic exercise, can result in incorrect elevations of cholesterol levels.
Postpone if you’re sick
Don’t get the medical if you’re exhausted or sick. It’s ok to delay the test if you’re feeling sick, but the results might not be the best.
Review your Term Life Insurance periodically.
It is vital to examine the terms of your time-based life insurance every time. The reason you should is that your term life insurance might have been renewed recently at higher rates. Life insurance for the term is cheap. Canada rates are typically double or quadruple when renewed (usually after the initial 10- or 20-year period). You may be paying more for your previous term insurance than you are.
Life insurance for groups or associations
Another kind of life insurance that increases in cost periodically is the association or group-term plans. These plans generally are priced according to 5-year age bands (age 36-40, 41-45), and rates increase around 40%-60 per 5-year band.
The plan you have been using for a while could be more expensive than when you purchased it. Check your rates to be sure they’re still affordable.
Are you aware that your term life insurance requirements need to be modified?
Furthermore, situations can alter over time, which means that the requirements you had when you purchased the time-based life insurance could differ now that time has gone.
Request your broker to compose a favorable cover letter on your behalf
It is a secret treasure as it’s not so common and has been a massive help to my clients in obtaining lower rates.
Sometimes the information about your lifestyle and health included in your application may not provide the most accurate and convincing case for your specific situation.
Maybe you are following a low-fat diet and a low-salt diet. Perhaps you are an avid exerciser who goes to the gym 3-4 times per week. Maybe you had grandparents who lived to the age of the ’80s or the mid-’90s. These factors and more must be addressed to the Underwriters to make sure you qualify for the most favorable program and pay only the necessary amount.
Check that your application for term life insurance has an official cover letter.
Your broker can help you fill the gaps by detailing your positive health lifestyle, professional, and aspects in a professionally written cover letter that will ensure that the Underwriter will provide you with additional points (translated into the lower cost) for your Life insurance term.
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