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How to Hack Life Insurance

How to Hack Life Insurance

It seems like everywhere you go online, people are trying to hack something. Hack your cell phone, hack your computer, hack your bank account or even hack your Facebook account. Hacking is a form of theft, whether it is to steal your money or your identity, the word has become popular. Now it seems the term hack is used to find a secret about certain products and services. I thought I would make it easy on the hackers when it comes to trying to hack life insurance by just teaching some basics.

First, there are hundreds of insurance companies that sell thousands of plan types. Unless they really have a good knowledge of the industry, I highly recommend using an experienced broker that can professionally shop for the best product at the best price for your unique situation. This is a good hack idea. Also, find a broker that will educate you, the consumer, as to why a particular type of policy over another is best for your situation. That being said, here are some simple scenarios to the different types of life insurance. The main types are term life insurance, whole life insurance and universal life insurance. I recommend reading Life Insurance 101 for more in depth details.

Next you need to learn how to calculate how much life insurance you need to cover your debts, income replacement, children’s college, business expenses, etc. You may need a combination of term, whole and universal life policies to cover your needs at the most affordable rates. I recommend reading How to Do Life Insurance Mathematics for more details in calculating your needed coverage.

Next you need to understand about life insurance underwriting. Each life insurance policy sold has 14 different levels of rates. They can range from “Best Preferred” which is for super healthy clients, to Standard rates which includes over 65% of buyers, to “Table Rating” which can increase multiple times over. Most online life insurance quotes give the preferred rating knowing less than 8% of buyers qualify for that rate. When the policy is finished in underwriting, the rate comes back standard which is double the quoted rate. You just overpaid because you decided not to use a life insurance agent or you are not up to speed on life insurance rating. I recommend reading Don’t Use a Life Insurance Agent for more details.

Last, once you receive your policy from the life insurance carrier there are certain things written in the policy you need to know. Don’t just file it away and never look at it again. Know the important clauses like period of contestability, know when the term ends or when the policy will endow. For more details I recommend reading How to Read a Life Insurance Policy to be sure what pages these important details are located.

If you are planning on purchasing life insurance in the near future, understand the hack before you get started. First your best results use an experienced independent life insurance broker that already knows how to hack life insurance and save a lot of time and money. Happy shopping now that you have hacked us!

“Hackers are breaking the systems for profit. Before, it was about intellectual curiosity and pursuit of knowledge and thrill, and now hacking is big business”. –Kevin Mitnick

Image by Stuart Miles images at www.freedigitalphotos.net

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Tim Wilhoit is owner/principal of Your Friend 4 Life Insurance Agency in Nashville, TN. He is a family man, father of 3, grandfather of 2, entrepreneur, insurance agent, life insurance broker, employee benefit specialist, salesman, sales trainer, recruiter, public speaker, blogger, author and team leader with over 30 years of experience in sales and marketing in the insurance and beverage industries.

12 Responses to How to Hack Life Insurance

  • This is great, thank you!

  • Brilliant article!

  • Kenneth and Ron, I appreciate your kind words.

  • Hi there,I check your new stuff named “How to Hack Life Insurance——-Your Friend 4 Life” on a regular basis.Your writing style is witty, keep doing what you’re doing!

  • Loved this article Tim. It is very good information for the comsumer.

  • Hacking is associated with “bad stuff”, but this article is putting a positive spin on hacking. A few years ago I went out and bought a life insurance policy and violated all the rules the author of this article has discussed. My mistake was a combination of ignorance, lack of education and trusting the agent I was working with without asking the right questions. I did not even know what questions to ask. Fast forward a few years later I got interested in financial education and the starting point for me was getting licensed as an independent life insurance broker and it has opened my eyes.

  • Tim, thank for this excellent and well-written piece. Why do people who seek for expert advice suddenly become experts themselves when it comes to acquiring life insurance? The cost of making a mistake is huge and your words of wisdom are timely. Let those who have ears hear!

  • Eric, thank you for sharing your powerful story. I am grateful you found my article helpful.

  • Great Info

  • “Here is great article for those of you with questions regarding Life Insurance or about Hacks…either way, great read!!”

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