How to Get Life Insurance on the Cheap

How to Get Life Insurance on the Cheap

As a parent you may be wondering how to get life insurance?  Life insurance is mandatory for your family’s financial security. However, in today’s financial climate, it’s smart to reduce budget expenditures whenever you can. And since life insurance is something you pay for – but hope you never have to use, it makes sense to consider how much money you’re spending on it.  If you want to reduce the amount of money you spend on life insurance, consider the following points.

 

  1. Avoid purchasing a guaranteed issue life insurance policy. Guaranteed issue life insurance policies tend to be quite pricey and with good reason. Companies who sell such policies guarantee that they will issue anyone a life insurance policy, including people who suffer from physical conditions that would not typically be accepted by other  life insurance companies.  This means that you’re costs could be too high for no good reason.
  • So, if you’re in good health, it’s less expensive to find a regular life insurance policy.
  • However, a guarantee issue life insurance policy might be the wisest choice for you if you’re not in good health.
  • If you smoke, quit. Underwriters raise the price of insurance by 25%-50% for tobacco users. Even occasional smoking counts.
    • When you quit smoking and have gone 12 months without using tobacco, you can request that the insurance company remove the extra rating. Doing so will reduce your premiums.
    • Shop around. Each company underwrites health concerns differently. For example, well-controlled high blood pressure might not even warrant an extra charge with some companies, while other companies will rate up the policy.
    • When comparing rates, ensure you provide the same health information to each company so the estimates will reflect your true health condition and can be more easily compared in terms of price.

    How to Get Life Insurance – It Pays to be Skinny

    • Strive for your ideal weight. When shopping for insurance, it can save you money if you’re at an average weight for your age and sex.
    • Each insurance company will rate additional weight differently. After a certain amount of weight, extra pounds will raise the cost of your insurance.
    • If you’re overweight, ask your agent to show you the rating chart. If you’re close to a border weight between categories, you may be able to reduce your price by losing only a couple of pounds before you’re weighed by the company representative. Even a few pounds lost can pay when you’re considering how to get life insurance.

    How to Get Life Insurance – You Get What You Pay For

    Cost isn’t everything. Lower priced policies can actually become more expensive. Companies with an A.M. Best rating of A+ or better may charge more, but those extra costs pay off over the long haul. Here’s why:

      • If you go with an insurance company because it charges less and it goes out of business, then you have no insurance at all. So, even though you’ve been paying for insurance, you could actually lose your coverage and all the money you paid if you seek coverage from a risky company.  So be sure to stick with a well known company.
      • In the event that a significant amount of time has passed since you’ve purchased a policy from a company that goes out of business, your health may have changed enough to make getting another policy difficult.
      • So, the lesson here is to check out your life insurance company’s ratings in advance of purchasing your policy as one way of protecting your investment

      If you practice good health habits, shop around, and do business with a reputable life insurance company, you can secure a life insurance policy that both saves you money and provides for your family’s needs in the future. When thinking about how to get life insurance, these are some of the most common strategies that can reduce your costs when you purchase insurance.

      How to Lower Your Medical Bills

      Tips to Negotiate Lower Medical Bills

       

      Do you want lower medical bills?  With health care costs spiraling out of control, it’s natural to want to lower your medical spending.  According to Consumer Reports, only 31% of Americans try to negotiate the price of medical bills, but those who do usually succeed in saving big money. These are some methods that will help you lower medical bills:

       

      Understanding Your Medical Bills – Discounts and Charges

      1. Become familiar with routine discounts. Doctors and hospitals typically give discounts of as much as 60% to Medicare, Medicaid, and insurance companies. As an individual, you may have less leverage than the big payers, but you can usually save significant money by negotiating and asking for a discount.
      2. Look for the CPT code. Current Procedural Terminology (CPT) codes are the standard codes maintained by the American Medical Association. They’re what billing departments use to determine the charges for any procedure. Once you know the CPT codes, you can comparison shop. How cool is that?  Of course, we know not all medical care is the same, but it’s good to find out what an average or reasonable rate is.
      3. Get Comfortable with Negotiating your Medical Bills – Many health care providers are getting used to patients taking a more active role in controlling their spending. Millions of people have lost their insurance coverage along with their jobs. Even those who are insured are often paying more in out of pocket charges than ever before. So join the crowd and start wheeling and dealing.

      Selecting Lower-Cost  Treatments

      1. Talk with your doctor. While billing departments are important, it’s your doctor who orders the services so let them know your financial limits. Avoid taking it personally if you encounter any resistance. Physicians may feel uncomfortable discussing money and may assume that your insurance covers more than it really does. It’s ok to push back and ask if the test is really necessary.
      2. Always Opt for generic drugs. Generic drugs are any easy way to save money. Most contain the same ingredients as the brand name formulas but they cost much less. This one step can dramatically lower your medical bills.

      Negotiating Medical Bills and  Payments

      Make up-front payments. Offering to pay by cash or check in advance is usually the best way to get a sizeable discount. Even doctors find cash is king. In exchange for bypassing insurance reimbursements or collections agencies, many providers will cut your bill by 20% or more.

      Base your proposed payment on Medicare charges. Medicare payments are a great starting point for calculating your own expenses. Once you know your CPT code, look up the Medicare payments in your geographical area at the American Medical Association website or call around to the billing departments of local medical centers. Paying 25% more than Medicare is reasonable for most procedures.

      Always Review your bills. This goes for all bill types but – Industry experts estimate that up to 85% of medical bills contain one or more errors. Ask for itemized bills and review them carefully. It may be helpful to arrange conference calls with the hospital and your insurance company to conduct a full analysis.

      Ask about interest free payment plans. Obviously, paying by credit cards costs a patient more in the long run if interest accumulates. The provider also has to pay the transaction fees so they may be willing to give you a zero interest payment plan if you’re paying cash.

      Hire a medical advocate. Medical advocates charge a fee for their services but the savings can be worthwhile, especially for large hospital bills. After all, they know the way around medical bills. Typically, you’ll pay a flat fee or 25% to 35% of the amount by which they reduce your total bills. You can find advocates in your area through free online directories at organizations like the National Association of Healthcare Advocacy Consultants.

      Learn how to get discounts on your medical bills so you’ll be in a better position to afford the care that you and your family need. By shopping around and offering up-front payments, you could save thousands of dollars. Saving on your medical bills can really add up – and put a lot more money in your pocket.

      Why You Need Life Insurance

      Why You Need Life Insurance – And How to Find It

      Why you  need life insurance – you need it to protect your family.  Life insurance is that ultimate what if stuff – you don’t need it until you really do.   Even a non working parent needs life insurance – especially if your kids are young.  Why – ’cause if something happens to you, you’ll need someone (like a nanny, housekeeper and cabdriver) to replace all that you do.

      Life insurance helps protect you when you don’t have a lot of other assets. As you get older and hopefully have more savings and wealth built up, you might find your life insurance needs are less.

      Term life insurance is the cheapest and easiest insurance to get – you pay based on your age, health and other factors for a certain amount of coverage.  Assuming you die cleanly (within the limits of the policy) the company will pay your heirs the amount of coverage you paid.  The more coverage you buy, the more expensive your life insurance premium or policy will be each year.

      Most term insurance expires after awhile or the premium goes up – in other words the closer you get to old age, the more expensive the insurance policy is – so if you never use term insurance, you’ve paid for nothing (the same with most insurance.)

      There’s another type called whole insurance which allows you to build up a cash value of your policy – some people consider it an investment, others a scam…

      But the best way to get life insurance is to find a good life insurance agent.   No matter what you do, make sure you pick a good life insurance agent.  Here are some tips on how to find one:

       

      Why You Need Life Insurance – How to Find the Best Agent

      1. Talk to your pals, neighbors and relatives about their agents. Word of mouth is always one of the very best methods for finding a top quality expert. When gathering data about agents from your buddies and loved ones, inquire whether or not they have any concerns relating to their agents’ ability to assist you.

      2. Staff – Consider professionalism of the agents  staff. Whenever you initial call an agent, you’ll probably speak to the agent’s assistant or an office manager.

      • Are you pleased with how the staff member responded to your questions? Did he/she seem knowledgeable and take care of your requests in a timely way?

      • A very good agent will have competent office staff.

      3.  Contact 3 to 5 insurance agents. This way, you’ll be able to do some comparisons among the agents to narrow your down to the agent you feel most comfortable with.   Plus you should also review their work histories and get some references.  You will then find it easier to rule out a particular agent.

      • Pay special attention to each and every agent’s diligence in responding to your questions.

      Why You Need Life Insurance – Does Your Agent Know the Ropes

      4. Determine how much knowledge an insurance agent has. Inquire about how long the agent has been selling insurance. Ask whether or not they’ve worked for other insurance firms.

      • Gather as much information concerning the agent’s history as possible.  You could always ask for a formal resume or use some informal, conversational questions  to get the information you want.

      5. Professional designations  – The insurance industry has professional designations just like the securities industry, so be sure to check out an agent’s credentials. The CLU, Chartered Life Underwriter, designation shows an agent has in-depth training on determining an individual’s life insurance demands. It is a great idea to work  with agents who have this CLU designation, if feasible.

      6. Focus on acquiring an independent insurance agent. This type of agent can sell many different insurance merchandise from quite a few carriers.
      • To clarify, should you call a certain insurance firm and work with one of their agents, then the only sort of policy that agent can sell is 1 of that particular company’s.

      • However, with an independent agent, you’ll be provided a wider choice of insurance products having a far better likelihood of discovering 1 to fit your certain demands.

      7. Trust yourself when it comes to meeting agents. . If an agent says immediately that he has the  “right” policy for you, be leery.

      • A excellent agent will instead listen to your wants and answer your questions. He or she will present the possibilities to you and let you make the final decisions, without insisting you pick one option over the other.

      When looking for life insurance be sure to take your time – do your research and interview multiple agents.  You don’t ever want to find out why you need life insurance, but having it will make you feel a whole lot better.