Buying Life Insurance in Oklahoma – Important Tips

Reader’s Question:

What are the things I should keep in mind while looking for the best life insurance policy here in Oklahoma?

Darco

Oklahoma City, OK

Choosing the right life insurance policy is no easy task, but if done correctly it can be one of the best assets that you can own. The following are some very good tips to help you shop for the best life insurance coverage and providers today:

Know the Different Types of Life Insurance

Term Life - Coverage for a certain period of time only. This type of insurance offers relatively huge amounts of coverage (Face Value amount) at affordable prices. Term periods last anywhere from 10, 20, or 30 years. Expensive to maintain/renew in the long-run.

Whole Life - Permanent life insurance coverage that accumulates value (Cash Value feature) over the lifetime of the policy. Premiums are expensive initially but can become much cheaper in the long-run.

Universal Life - Allows for faster interest earning by investing the policy’s cash value towards other investment options.

Variable Life - Permanent life insurance that allows policyholders flexibility in premiums and how their policies are invested by the insurers.

Calculate How Much Coverage You’ll Need

Think of your life insurance as an “Emergency fund” to support your family’s/ dependents’ immediate and future needs should you suddenly pass away. It is recommended that you buy coverage equally to up to five times your annual income. Factor in existing debt/ bills such as home mortgage and future needs like college tuition.

Shop and Compare for the Latest Rates

Find the best priced life insurance Oklahoma City rates and policies by running a free quote check online. The many life insurance comparison websites (such as this one) on the Internet can help you find and compare the latest rates, coming from a wide selection of insurers, today.

Oklahoma Smokers Life Insurance – Should You Lie About Being a Smoker?

Reader’s Question:

Can I lie about my smoking habits on my life insurance application? Should I tell them I smoke only about two to three times a week? What will happen if the insurers find out I lied about being a smoker?

Saundra

Midwest City, OK

You’ve raised a good question. Yes you can choose to lie about being a smoker on your life insurance application. In fact, you can probably even pass the urine test (since nicotine in the body tends to drop into very low levels 72 hours after smoking). Here’s the catch though, if you die and it is proven that the cause of death is a smoking-related complication or illness then the life insurance company has the right to refuse to pay out the death benefits to your beneficiaries. So all those years you’ve been paying your premiums will just be thrown out the window.

If, on the other hand, it is found out during the underwriting process that you are in fact a smoker the most that life insurers really do is bump your rate up to that of a smoker. Rarely would an insurer cancel a policy just because of this (and in economic times like these, they really can’t afford to do so).

As far as telling them that you are an occasional smoker, that would probably get you better rates as compared to a heavy smoker (and you wouldn’t have to lie anymore just to save some bucks). An even better idea would be to quit smoking since life insurance smoking rates are three to four times higher compared to that of a non-smoker. You also get the added benefit of avoiding some very nasty smoking-related diseases that can considerably shorten your lifespan, and make you wish you’ve quitted when it was not too late yet.