Too good to be true life insurance

When shopping for life insurance online and offline buyers should beware.

Many, not all, quote preferred rates which are hard for the best of health to get. We’ve all heard the commercials or seen the ads promising premiums for $10 a month with no underwriting required, but many find that after speaking with an agent, that $10 a month is nowhere in the ballpark, and medical tests are required! It’s called the ol’ bait and switch but here are some dos and don’ts to avoid this…

1. Online quotes are merely a suggestion – look at the health rate and call the service/agent direct to verify.
2. Do not lie – even a white lie can put your family in peril. These companies will withhold the death benefit to your loved ones if they find an existing condition you didn’t disclose.
3. If one company’s rate is extremely low than the others, ask why.
4. Go with a name brand – this probably won’t be the only financial crisis our country will have in our lifetime. Make sure the company has an A+ financial rating – sometimes you pay for what you get.
5. If you get turned down due to health issues don’t give up – find a high risk broker that does only life insurance, go through your medical issues and the agent can call to get the proper rate before you go through all the hoops.
6. Calculate your need first – how much life insurance should you have? Evaluate your need by your liabilities (loans), dependents needs, your earning capacity in the household and cost of living.

Also, here are some health issues that will cause a higher rate or denial:

1. Cardiovascular problems – depending on how recent, your age, weight and severity this could increase your premium approximately 25% to 100% or cause denial.
2. Stroke. Any stroke history can result in a waiting period for 6 months to a 1 year and a surcharge rate for at least 5 yrs if accepted.
3. Diabetes. Depending on the type: type 1 is a much greater concern for life insurance due to possible complications down the road but type 2 may be considered (at a higher rate) if controlled by diet, exercise and medication.
4. Cancer. Under current treatment or just diagnosed is usually unacceptable but some may consider after 2 to 5 yrs. remission.
5. Hepatitis C. May be considered if controlled but at a higher risk premium. Insurance companies will test for HIV and AIDS, which is still generally considered “uninsurable.”

Life insurance is very important to have but don’t go overboard, make sure it’s affordable and most of all it fits your needs.