Life insurance is one of the most important investments that you’ll ever make for your family. It’s one of the only ways that you can ensure that your loved ones will be taken care of if you passed away. These policies give them the money that they need to get through the difficult time without having any financial struggles.
When you apply for coverage from an insurance company, there are dozens of different factors that the company is going to look at before they approve your application. One of the most significant resources that the company is going to use is from the Medical Information Bureau. Before you purchase a life insurance policy, it’s vital that you understand all of the different factors and areas that the company is going to use when they are looking at your application, it could mean the difference in getting affordable life insurance or being declined.
What Information Does The MIB Provide?
When you first apply for life insurance, the company is going to ask you a dozen different questions about your health, hobbies, lifestyle, and your family history. Additionally, they will also pull several different records from various organizations to ensure that that are going a complete and accurate picture of your overall health and how much of a risk you are for the company to insure.
The Medical Information Bureau is a member-owned organization that has been around for more than 100 years, and it operates in both the United States and Canada. The MIB’s services are used by hundreds and hundreds of life insurance companies across the United States for a variety of different types of policies like life insurance policies, health insurance plans, and long-term care insurance plans. The goal of the MIB is to help insurance companies offer the best rates to their applicants. They do this through alerting the company if there is any errors or omissions on the insurance application.
According to the MIB’s website, the organization acts as an “information exchange,” which allows the insurance company to give accurate quotes based on the amount of risk the applicant is.
Essentially, the MIB allows its member organizations to contribute to the database and allow to pull from the same database to ensure that they have all the information that they need. If insurance companies don’t have the information that they need or applicants continued to lie about their health or any pre-existing conditions that they have, the companies would be forced to raise premiums and charge more for their insurance policies. The MIB assists in keeping insurance premiums lower. If you are interested in life insurance for pre-existing conditions, we can help.
When applicants learn that the MIB could have several of their personal medical records, some people get nervous about the security of their information, but the MIB has a creative solution. Instead of storing a person’s actual records, they use codes to represent the data inside of the files.
Getting The Most Affordable Life Insurance Policy
Life insurance is one of the biggest purchases that you’ll ever make for the future of your family, but one the common reason that people don’t buy a policy is because of the cost. In fact, life insurance is often much more affordable than most applicants think. There are several ways that you can ensure that you’re getting the lowest premiums available.
The first way is to improve your health through a healthy diet and getting regular exercise. Both of these are going to help you lose weight, lower your blood pressure, and get you much better results from the medical exam, and all of these are going to translate into lower monthly premiums for your coverage. If you want to get the cheapest life insurance, it’s time to start hitting the gym and avoiding the second helping of dessert after every dinner. Though if your health is at a point where you will not pass a traditional medically underwritten life insurance policy, there are other options out there for you such as a no medical exam policy or a guaranteed issue policy.
Another way to improve your health is to eliminate any tobacco that you currently use. Both smoking cigarettes and using chewing tobacco are going to cause your rates to sky-rocket. In fact, smokers are going to pay twice as much versus a non-smoker for the same amount of coverage. It’s time that you quit that bad habit once and for all. If you want to get life insurance before you quit smoking, you can always request a reevaluation after you’ve bought the policy, that way you don’t have to go another year without life insurance coverage.
If you enjoy any dangerous hobbies, like riding a motorcycle or skydiving, you’ll want to find safer ways to pass your time. Any of those dangerous hobbies are going to cause an increase in how much you pay for your life insurance. The companies view those hobbies as things that could drastically shorten your life, which means you’re a much higher risk to the company.
The best way to ensure that you’re getting the most affordable life insurance coverage for you and your family is to work with an independent life insurance agent, like ours. Unlike a traditional insurance agent, independent insurance agents don’t represent one single company. Instead, we represent dozens of insurance companies across the United States. That means that we can bring all of the lowest insurance rates directly to you, without the hassle of having to call all of the companies yourself.
Aside from being able to compare dozens of quotes at once, our agents can help walk you through the application process, and they also have years of experience in the life insurance marketplace, which means they know the companies that are going to give you the best rates for your specific situation.
The Importance of Life Insurance and How Much You Need
One of the obvious factors that is going to be used to calculate how much you pay for life insurance is going to be the size of the policy. The larger the plan, the more that you’re going to spend every month for the life insurance. It’s vital that you get enough coverage for your loved ones. Not having enough insurance could leave them with additional bills and no money to pay them off. Getting the right amount of coverage is a delicate balance between getting enough life insurance, and not paying for more protection than you need. There are several different factors that you need to account for when calculating your insurance needs.
The first thing is your debt. The primary goal of your policy is to pay off any debts or unpaid expenses that your loved ones would be left with if you passed away. Before you purchase your life insurance, make sure that the plan is large enough to pay off all of those debts and any bills that you would leave to your family.
The other factor that you need to add up is your annual salary. The other main goal of your life insurance is to replace your paycheck if anything tragic were to happen to you. If you’re one of the main income earners in your household, they would struggle financially if you passed away unexpectedly. There is no perfect number for how much insurance you should buy, but most insurance professionals suggest getting around seven to ten times your annual income. Call us today to learn more about what final expense life insurance is.
Life Insurance and The MIB – What You Need to Know
Life insurance is the most important safety net that you could ever buy for your loved ones. When you’re applying for coverage, the company is going to look at every aspect of your life. They will use all of these factors to determine if they should accept your application and how much you will be charged for it. The MIB is the most common way that companies are going to verify the information that you listed on the application and make sure that you haven’t falsified any of the answers on the paperwork.
If you have any questions about life insurance or the options available to you, please contact one of our agents today. We would be happy to answer those questions and ensure that you’re getting the best policy to fit your needs at an affordable rate. Our independent agents work to ensure that you have the perfect plan to give your family the protection that they deserve.
You can’t predict the future, which means that you never know what tomorrow is going to bring. Don’t wait any longer to get a life insurance policy for your loved ones. Contact us today to get the process started.