How to Refinance Your Life Insurance
November 26, 2009 |
Featured
If you happen to have a life insurance policy for term insurance, then there is a good chance that you are paying too much for your premiums. Over the last decade, rates for term life have been consistently falling. Many experts say that the premiums for term life have hit their historic lows. Although American homeowners tend to refinance their mortgages every four years or so, refinancing their life insurance policy is something that most people don’t even think about doing. This is an expensive oversight considering that the rates available right now are at their historic lows. In this article we will discuss how you can take advantage of these low premiums through refinancing an existing insurance policy.
These signs can be an indication that you are over paying on your life insurance premiums:
* You purchased your insurance policy a while ago. Because the rates are so low these days you can’t just automatically assume because you are older that your life insurance policy will be more expensive. Increased competition among insurance companies as well as lower mortality rates are making it possible to pay less now at the age of 40 than ten years age at the age of 30.
* You purchased your life insurance policy via an employer. There can be some cost savings using employer-subsidized insurance coverage, however it doesn’t always offer you the best deal. Particularly for individuals who are healthy and young, you could end up paying more by purchasing life insurance through an employer. The reason for this is because of the fact that your premiums will be helping to pay for sicker and older employees.
* You do not qualify for your insurer’s best rates. You might want to consider looking for alternatives if you only qualify for your insurance company’s regular or standard rates. With other insurance companies you might qualify for their preferred rates.
The next step is to know what your risk factors are. In order to refinance a life insurance policy, you will need to determine how different insurance companies employ different risk factors in order to figure out which insurance company will off the best rates to you. These are some of the more common risk factors which can affect your insurance premiums:
* High cholesterol or high blood pressure. If you have either of these conditions, there are some insurance companies which will kick you out of their preferred rate class. Other insurers may overlook these conditions if they are being treated and the current levels are ok.
* Weight. Different insurance companies have their own definitions of what being overweight is. If you happen to be on the borderline with one insurance company, you can check to see if there is another insurer who has higher limits.
* Smoking. A majority of insurance companies have a zero tolerance policy on smoking. However, there could be insurers who won’t raise your rate for an occasional cigar.
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