Tricks When Buying Term Life Insurance

Do a trial application on a COD basis.
Only send money with the application if you need the life insurance coverage right away. Sending a check with the application is a traditional practice agents used to do - I think mostly because it got them their commissions faster. If you send money with an application you usually get temporary coverage immediately but if you already have another plan, and want additional coverage, ask for a trial application on a COD basis so you only pay once the policy is approved.

Increase your height when the insurance company rep comes out for your medical exam.
Schedule your appointment for the morning when you are usually taller and wear your thickest shoes. The taller you are, the better the height to weight ratio. And if your exam is early in the morning before you eat, your cholesterol count and blood test will come out better.

Life insurance quotes may be inaccurate.
Low price quotes you get online may only apply to you if you are extremely healthy. Only a small percentage of people who apply actually get the lowest priced policy. The premium you end up paying has nothing to do with the initial quote you get online or from an agent. When buying term life, you must go through an exam in your home where the insurance company rep takes your weight, height, blood & or urine. The company usually checks you doctor records and reviews your application.
Life insurance policies aren't negotiable (without leverage - see below).
Life insurance is the same price no matter who you buy from! Discounts (other than group) are not allowed by the State regulators. Life insurance rates are based on your age and your particular health history.
Buy term for life insurance needs within a 30 year timeframe.
For life insurance needs like a fixed mortgage (30 years or less) or young children at home, buy 15-30 year term.
Buy whole life insurance needs for a longer than 30 year timeframe.
Additionally most people want some life insurance in place for their whole life to pay for burial, help with unpaid medical bills and estate taxes and so a permanent policy should be purchased along with the term policy.
Create leverage by applying with two carriers.
Life insurance companies, like everyone else have large, main competitors. Apply with 2 different life insurance companies. Call the life company you prefer (if they are more expensive) and show them you are approved for less with another company and you would have to go with the cheaper policy. The other carrier may lower their price to match the other companies offer.
Avoid captive life agents.
Look for a life insurance agent who represents many life insurance companies and ask them for a lowest price comparison. You won’t save any money going with a full service life insurance company without an agent, because the commissions normally earned by the agent are just kept by the insurance company without having your premium lowered.
Go with a professional agent (if you can find one).
A competent agent can help you fill out the application, change beneficiaries when you need to, explain ownership of the policy, and premium financing. Just remember that this guy may also deliver the check and *help* your loved ones if you die, so don't pick a jerk!
Apply asap for the life insurance policy.
Apply right away knowing that you might need months to shop around if the first company does not give you a good rate. Your application will still often be held up for weeks or months while the insurance company waits on your doctor’s office for a copy of you medical records.

If you are sick or have medical problems, get a guaranteed issue policy without going through the full medical review. You'll pay 30%-100% more and get a lower face value amount since the insurance company doesn't know how healthy you are.
Don't buy life insurance through your employer if you are healthy.
Always except free life insurance if your employer offers it. But if you are healthy and buying life insurance through payroll deduction, you may be paying too much. As a group life insurance plan participant, you are pooled with the unhealthy people in your company who are also buying life insurance and paying the same price. Also for tax reasons, since you paid for the life insurance before tax, your death benefit may be taxable. Also the price of your group plan life insurance increases as you get older.
Find out particulars if you already have life insurance through your company.
Most life insurance policies you buy through your company will get more expensive as you get older and group life insurance is generally not portable when you retire or change jobs. Find out if the group plan does allow portability, or how the conversion features are handled. Some converting group plans force you to go into expensive cash value plan.
Go direct for a lower price.
You might apply online and cut the agent to get a lower rate with a direct issuer. These type carriers don't use agents to market, lowering theirs and yours) cost.
Ask your life insurer for reconsideration.
The price you pay on an old life insurance policy has probably come down if you are in good health. Life insurance companies have lengthened their life expectancy (how long you will live) tables. Since you will now live longer, insurers are reducing their rates. If you have quite smoking or lost a significant amount of weight, they may also adjust your premiums downward. Remember you are now also older, and closer to paying out your death benefit.
Life insurance companies have specific risk they link to insure.
One day company may give better rates to people who are a little overweight. Another carrier will give good rates to diabetics. Find those companies that prefer your type of risk.
Look for customer service orientated insurers.
Many companies with the lowest price and best financial rating provide no customer service. Low cost insurers also may *right size* to the point that they don't have the personnel to stay organized. Companies have to keep a trained staff to minimize back office mistakes, send you renewal notices and catalog your premium payments!
Watch those riders.
Most policies come with options like accidental death benefit, child riders, disability riders, return of premium etc. Many of these “extras” are something that rarely happens or they are so complex the extra benefit never gets paid out. But careful of a life insurance agent that adds extra riders to your policy to increase the premium / his commission.