Money is tight.
In the wake of a disastrous year, millions of people are struggling to make life work financially. Maybe you are a business owner that lost out on months of income or you’re a loyal employee who was furloughed due to your employer struggling to stay in the black.
While the world is working overtime to overcome obstacles and recover from the financial destruction the Corona Virus has left in its path, the cost of health insurance continues to rise.
I certainly can’t solve all of the world’s problems, but maybe I can save some of you a few hundred dollars this year.
I’m not a health insurance expert.
Over the past few weeks I found ten different insurance experts and basically stalked them. I wanted to see how they operated, what techniques they used and pull as much information from them as possible.
Out of those ten experts, one stood out from the rest.
Calvin Lo is the CEO of a life insurance broker, R.E. Lee International. The company specializes in estate planning for ultra-high net worth businesses and individuals.
It is reported that his group brokers an estimated premium of over a billion dollars annually, making them one of the most successful life insurance brokers in the world.
His reputation truly proceeded him.
I did my best to get in touch with him for an interview, but he doesn’t really interact with the media and I was unable to speak with him. He’s a below radar kind of person and if I’m being honest, I can respect that.
However, I was able to get in touch with several people who had worked with Lo in the past. Each of them had only positive things to say and were happy to share the following money saving tips that they learned directly from Lo.
These tips come third party from Lo, a billionaire and CEO of a life insurance broker and is known to be one of the most successful life insurance brokers in the world. Information like this doesn’t come from a much better source that that!
Lo’s Tips to Lower your Life Insurance Rates
1. Backdate your policy
It’s not really common knowledge, but insurance companies will use your nearest age rather than your actual age. So, if you have a birthday coming up, you may be able to backdate your insurance and get rated at a younger age.
2. Do not buy Insurance you do not need
It’s almost a scare tactic. There are so many warnings, cautions and notes about being underinsure that the majority of people end up over insured and spend years paying for insurance they never needed. Do the research and determine what you actually need.
3. Pay your premiums annually rather than monthly
Often many carriers will give you a discount if you pay all at once rather than spreading it out.
4. Purchase all of your life insurance at the same place and time
There is a minimum charge on every plan. That means the difference between $200,000 of coverage and $600,000 of coverage may not be significantly different. However, if you were to purchase $200,000 from three different companies, you would be paying the minimum charge three different times and it would cost you significantly more.
5. Select the correct settlement option
Unless your family needs the one million dollars up front, allow them to spread the payments out over ten years and save big on your monthly premium.
6. Reduce your coverage total as you age
As you get older, your spouse will likely need less to live on the his/her number of years on this earth will be less. So, lower your coverage total to an amount that your family will need consider the number of estimated years they have remaining.
7. Stay in good health
Passing the medical exam with flying colors help tremendously when applying for life insurance coverage.
8. Start today
Remember, rates are only continuing to increase. If you feel like you need coverage, go ahead and pull the trigger because every day that goes by, the rates go up.
9. Consider ART
ART stands for Annually Renewable Term policy. This means that you only have coverage for 1 year with the option to keep renewing up to a certain age. You will NOT need to submit to a new medical exam each year.
10. Get a broker
Using these tips will save you an easy 7 to 20 percent, but if you really want to save coordinate with someone who is an expert in the industry. It’s important to have someone on your team that’s willing to support you and fight for you, so the last and most important tip is to simply hire a broker.