Can I Negotiate my Premiums?
Most of us have been trained to never pay the asking price when purchasing something. We’re taught that we should always negotiate or ask if that’s the best price. Many people love the bartering process and are willing to haggle over anything. If the seller will budge just a little bit on the price, it makes us feel like we’re getting a good deal.
As insurance agents, we’ve seen this philosophy carry over to our sales process. Often we are asked by clients, “Can I get this same policy for a cheaper price if I call the insurance company directly?” We’ve also been asked if we could reduce the monthly premium to make the plan more affordable.
Unfortunately, life insurance premiums are fixed by law. This means that when purchasing a specific policy from a specific company, the price cannot vary simply due to where you’re purchasing the policy. The same policy from the same company has to have the same price.
This law does not completely limit your ability to reduce premiums though. There are several ways one can find lower cost policies. Let’s take a look at a few of them.
One of the most popular types of life insurance policies available for seniors is called simplified issue whole life insurance is also known as a burial insurance policy. This type of policy is easy to obtain because it typically does not require a medical exam and does not delve too deeply into a person’s health history.
However, if you’re a healthier person, there are ways you can lower your premium. The deeper you allow an insurance company to investigate your health history, the better rate you can receive for the same policy. For instance, if you’re willing to take a paramedical exam and the results are good, most companies would be willing to offer you the same policy at a much lower rate, because you allowed them to confirm that you’re a lower than the standard health risk.
Another way a person can potentially lower monthly premiums is simply by lowering the requested death benefit. This may seem like common sense, but a lot of people don’t understand that a smaller policy will have a smaller monthly premium.
Since the average senior life insurance policy size is around $10,000, most people don’t realize that they can obtain a policy as low as $3,000. While this may not be the person’s desired death benefit, it’s worth considering if it makes the policy affordable. We generally say the best life insurance policy to purchase is the one you’re comfortable paying for.
The final way a person potentially can save on monthly premiums is to talk to an insurance professional. Many people want to avoid this option. However, connecting with the right agent can save you substantially in the long run. Since most agents are not tied to one specific company, they have the ability to shop multiple companies for the plan that interests you and find you the best rate. Keep in mind that not all agents are the same. So it might be worth talking to a few different agents to find one you’re comfortable with.
When considering plans for seniors, you potentially can save money if you’re healthy if you’re willing to reduce the requested death benefit, and/or you’re willing to talk to a licensed insurance professional. If you would like to consider senior life coverage, you can speak to one of our agents directly. Our goal is to educate people on their options and provide a no-pressure environment, allowing people to make the best decision for their situation. We are licensed in most states and would be glad to assist in any way that we can.