Today’s insurance markets offer a wealth of options. Which health insurance policy is best? Who needs disability insurance? The intimidating number of options demand that Oklahoma residents know a dictionary of industry terms and acronyms to shop responsibly.
Currently, many Americans consider purchasing life insurance for the first time. The following guidelines can help new buyers understand how to get the most value out of their purchase.
Life insurance policy basics
According to studies, only 57% of Americans currently have health insurance. Often seen as prohibitively expensive, many families feel like they cannot afford the expense. Many people claim they have not gotten around to it yet. The following information can help people make those decisions.
Determining cost
Insurance agencies determine policy cost based on seven primary factors:
- Age: Cost goes up exponentially with age. Purchasing while younger saves a lot of money.
- Gender: Life expectancy for men is lower than women, so men pay more for their policy.
- Weight: The higher one’s Body Mass Index (BMI), the more they pay.
- Health: Previous medical history will impact price as well. The more complicated one’s health history, the higher the premiums.
- Cigarette use: A smoking habit can double or triple premiums.
- Type of policy: The longer an insurance policy covers, the more risk an insurance company takes on. Longer-term policies cost more.
- Coverage: Greater coverages equals higher costs.
Those who travel a lot or participate in high-risk activities like skydiving may see increases in their premiums. Those with a complicated health history may find better options by working with an independent life insurance agent to help shop around companies.
Term versus permanent life insurance
Studies show that Americans purchase life insurance to secure income replacement for their family or to cover funeral costs. These needs are best covered by what’s called term life insurance. These policies cover 10-30 years with a fixed premium much lower than permanent life insurance, which can cost up to 20 times more each month.
Legal protections for insurance payouts
Those currently working with their insurance company on a payout have found greater success in hiring a lawyer familiar with insurance law. An attorney will represent the best interests of their client and will fight to secure the coverage they deserve.