Do not deal with brokers who work with less than 10 insurance companies.
Find an insurance broker who works at least with 15-20 insurers to ensure that he/she compares rates for you across as many providers as possible. For example, we work with over 20 insurers to offer you the best no life insurance quotes
If you apply for a simplified issue policy, choose the one with the longest question list where you can honestly reply “no” to all the questions.
Typically, the longer a questionnaire for a simplified issue policy is, the cheaper are the rates. Each additional question allows insurers to eliminate more risks. Insurers ask questions such as:
- Do you have HIV?
- Have you had a stroke?
- Do you have kidney disease?
- Do you have any cognitive impairments?
- If you master the questionnaire without answering yes (remember, you are not allowed to lie – otherwise a claim may be declined after an investigation) you will be rewarded with lower premiums.
Check if you qualify for a simplified issue policy rather than just going for guaranteed issue.
A guaranteed issue policy is not the only one that comes without a medical exam. There is another, lesser known, policy called simplified issue that is also considered as no medical life insurance. This type of policy comes without a medical exam, but with a few questions that require your honest answer. In many cases, if you do not have a very complicated health issue, you can easily reply to all these questions with “no”. Before you apply for a policy, you should contact an insurance broker who is familiar with different policies to avoid being declined due to the wording of the questionnaire. Remember that each declined application negatively impacts your opportunity to get a policy with another provider.
Choose your coverage limit wisely.
A smart broker will do a needs assessment to make sure you are not buying more life insurance than necessary. Higher coverage means higher rates, so only buy what you need.
Your mental health will also be evaluated.
Mental health conditions are real and deserve recognition. Ironically, underwriters fully recognize mental health and its implications…and give those with depression and other similar conditions higher rates. Taking care of your mental health should be a priority, and not just for lower insurance premiums. Your mental health matters and treatments abound so you don’t have to suffer in silence.
Excessive drinking means higher rates.
Drink more than three or four alcoholic beverages a day? Insurers see this as a risk. Lower alcohol consumption means lower rates (and a happier liver).
A broker is your best bet.
Brokers have access to numerous insurance products in the industry while agents only sell the products of one company. Options mean better rates and more choices. Choose a broker to make sure you are being matched with the best policy for your needs and budget.
Good driving record? Lower rates!
Bad drivers also get higher insurance rates. Drive safely for the benefit of everyone on the road and you’ll be rewarded with lower rates.
Smokers always get higher rates.
Smokers pay double, if not more, than the rates of non-smokers. To get the best rate, stop smoking at least a year before you apply for a policy (but do consider temporary insurance so you are covered in the interim). Don’t forget that cigar smoking is also factored into your premium. More than one cigar a month makes you a smoker in insurer’s eyes. Chances are, you’ve been planning to quit anyways because you know it’s bad for your health, so be inspired by the hope of lower rates and put down those smokes.
Time heals all wounds… well, at least it heals most driving offenses.
Not all bad decisions have to haunt you forever. If you have a policy in place that reflects higher rates due to a bad driving record, but your record has since improved, talk to your broker about renewing your next policy at a lower rate.
Annual reviews are necessary.
Review your policies and coverage every year, since new discounts could apply if your situation has changed. For example:
- You need less coverage when e.g. your kids are older or when you have paid off your mortgage.
- Your driving history has changed: After a few years traffic tickets disappear from your insurance record and even major accidents that impact your premiums can fall off your record over time.
- You became fitter / stopped smoking: If you can demonstrate better health, your premiums may go down.
Math matters! Insurers round your age up or down depending on when you apply.
The younger you are, the cheaper are your rates. Insurers will typically round your age down if you apply prior to six months before your birthday. You can’t stay forever young, but you can save money by remembering this rounding principle.
Some brokers specialize in cancer cases.
There are no hard and fast rules among underwriters for insuring those with cancer. Some do, some don’t, some do but with conditions. A broker knows which insurer will cover you.
Diabetics can get life insurance.
Have diabetes? Getting life insurance is not hopeless. While many insurers say no, some do have coverage for diabetics. Some companies even offer traditional insurance for diabetic patients, meaning that you do not have to go straight for a no medical life insurance policy, and you can benefit from insurance rates close to the rates paid by people without diabetes. If you have diabetes, speak with a broker who knows which underwriters may insure you.
Payment frequency matters.
If you pay your premium annually instead of monthly, you are saving the insurer administration fees. Many insurers are willing to pass those savings on to you.
Most alumni can save on rates.
University and college graduates often qualify for special rates through their institution. Check to see if your alma matter provides access to special insurance rates.
Be careful about your riders.
Some insurance coverage items are less important (since some risks are extremely low). For example, an accidental death rider covers things like death via an accident such as in plane crash. If you want to reduce your premiums, you might decide to drop such riders, but remember to weigh the odds carefully and ask an insurance broker or financial advisor for their opinions as well. If you fly frequently, you may want to include the accidental death rider!
Check out all your options and choose your policy with care.
Some life insurance products are cheaper than others. For example, term insurance (a purely insurance products that covers you for a pre-defined time period such as e.g. 10 or 20 years) is cheaper than whole or universal life insurance (both of which are insurance and wealth accumulation products that protect you and accumulate value over time).
Often, no medical life insurance coverage is limited to $300,000 for a simplified issue policy and $25,000 for a guaranteed issue policy.
The term of your policy affects your rate.
In general, the longer is your coverage term, the more expensive is the policy, because the risk of something happening to you increases with time. To decide how long you need coverage, ask yourself the following questions:
- When will the mortgage be paid off?
- Will my loved ones be responsible for my debts when I pass on?
- When will my kids be financially independent?
Bundle up to save money.
Most insurers offer bundle discounts, so if you need a life insurance policy and critical illness or disability too, you could save money by bundling up.
Your family history is a determining factor.
Serious medical issues in your family history impact your premiums. If, for example, there is a history of breast cancer in your family, it is assumed that you may suffer from it too later on in life. Be aware of how your family’s health history may impact your rates.
The younger you are, the lower your rate.
If you apply for an insurance policy earlier, you will benefit from lower insurance premiums as, typically, risks associated with you are lower. Insurers know that youth is associated with better health.