As an insurance agent in Dallas, I often meet people that get discouraged while  shopping for life insurance.  People are discouraged because they find it difficult to understand or it was too expensive.  Understanding life insurance is really simple if you equip yourself with a little knowledge and avoid the myths.  So, I’ve come up with 4 mistakes to avoid when you’re shopping for life insurance.

Mistake #1 – Trying to lose weight before you purchase life insurance

I labelled this one as #1 because it is the easiest one to tackle.  All insurance companies are different and have different guidelines.  Besides life insurance underwriting is more about looking at the  entire picture.  If you’re overweight and have hypertension combined with a recent heart attack, you’re a higher risk than someone who is just a large frame person. 

Takeaway:  Have your agent look all types of policies and companies to make sure you get the best rate for your relative health.  From there, replace the policy when lose weight.

Mistake #2 – Thinking life insurance is too expensive

I like this one because just about everyone  that can read this blog can afford a life insurance policy.  It is true that life insurance gets more expensive as you get older.  On the other hand, term insurance policies have decreased consistently over the past 20 years.  Thanks to advancements in modern medicine, we are living longer lives as a whole.  In that case, the cost of life insurance comes down to 4 things: age, policy type, amount, and health.  Remember , term insurance is the most affordable form of life insurance.  A policy option is available for all budgets.

Takeaway:  Term insurance provides pure life insurance protection at a lower cost.  Also, rates increase as you get older.

Mistake #3 – I’m still young, I can get life insurance later

If you are currently uninsured, you’re leaving your family at risk of severe financial loss in case of your untimely death.  According to the national funeral directors association, the average cost of an adult funeral in 1960 was $708.  As of 2009, that number has inflated to a whopping $6560.  Imagine adding this cost to your family’s budget.  If married, this could be catastrophic to a surviving spouse.  Not to mention, your early passing has also removed money from the family budget as well.  Purchasing term insurance can be done very easily with new technology.  In fact, some insurance companies will issue policies online wthin 24 hours.

Takeaway:  Accidents happen.  Term insurance can be purchased and issued within 24 hours with some companies.

Mistake #4 – I won’t qualify for life insurance due to a pre-existing health condition

Thinking that you will not qualify because your neighbor or friend told you that they had problem is irrational.  Generally when an insurance company rejects a person’s life insurance application, it is due to additional information found  from the health background or medical exam.  I you think you will have difficulty getting approved for a life insurance policy, discuss this with your agent.  By carefully explaining a case to the insurance company, many times agents can get the most difficult cases closed.  In fact, I’ve personally had policy issed for people who have had cancer, heart attacks, and even kidney dialysis.

Takeaway:  If you have a medical condition and you need life insurance, explain all the facts to your agent.  That way, the insurance agent can call his or her underwriting contact and pre-screen your case

As you can see, life insurance can be easier to obtain.  If you need more information, feel free to contact us at 214-717-4326.