Life Insurance Phoenix Arizona AZ
Reader’s question:
I am a banker from Phoenix Arizona and I currently have 2 life insurance policies. Should I consolidate my coverage by replacing my existing smaller policy?
Jill
Phoenix, AZ
Very practical question, Jill.
If you’d ask me, I’d rather let you think things over first before you decide. But before anything else, it is very important that you never cancel an existing insurance until you have replacement insurance.
Regarding existing smaller policy you have, I’d like you to verify the length of time since you had it. The older the policy gets, there is a higher possibility that it has higher premiums too than when it was newer. So in your case, check your policy’s age. If the old policy has premium increase in a few years, it might be better to replace it now and look for a better replacement from a reputable life insurance policy in Phoenix.
Another consideration would be your health condition. You need to check whether you health has changed since the time you bought the old policy. Chances are, if your health has deteriorated, you will probably be either uninsurable or might be charged with higher premiums, depending on your medical condition.
Are you a smoker when you purchased the old policy? Then, you need to check whether you have completely stopped smoking since you purchased your old policy. If you did not, you will surely not get a preferred rate and you might be charged even higher than the current premiums you are paying. Smoking can deteriorate you health and can trigger risk factors to other chronic illnesses.
You can sit down and discuss this with you Arizona insurance agent in Phoenix. Carefully compare all the aspects of the proposed change. Once again, each state provides a comparison disclosure for anyone replacing an existing life insurance policy.
It is still best if you shop around the internet for more information on insurance replacement. Try to search for details and specific disclaimer for Arizona.
Cheap Smoker Life Insurance Arizona AZ
Reader’s Question:
I currently have a life insurance policy for a smoker in Arizona. I know that I can have a cheaper life insurance premium if I’d get the non-smoker insurance. Will I still qualify for a non-smoker if I quit smoking?
Stacey
Chandler, AZ
Good that you asked, Stacey.
Certainly, you will be able to get the cheaper life insurance if you quit smoking in Arizona. Most life insurance companies will give you 12 to 24 months to quit before you will be considered for non-smoker insurance rates. Since non-smoker rates are cheaper by 30-50%, you will be able to save much. If you have satisfactorily provided medical evidence that you are nicotine free, most companies may consider a reduction rate after a specified time period. You can verify from your insurance company for their specific guidelines and requirements which normally subject to change.
Be aware though that some companies in Arizona also have special rates for occasional cigarette smokers. If you happen to be in good health but us tobacco, you may also qualify for preferred smoker rates. These are usually cheaper life insurance rates than the special tobacco policies.
But I guess the best suggestion you can hear from me is to quit smoking permanently. You not only get cheaper life insurance rates, but get to reduce the risks of ailments caused by smoking.
Try to compare rates over the internet by finding the zip code space on this page and entering you zip code for free quotes in your area.
I hope you’ll enjoy shopping online!
Group Life Insurance Arizona AZ
Reader’s Question:
I am a 27-year old banker in Arizona. I am still single and have no dependents. I already have a life insurance policy which I purchased on my own. An insurance company is offering a group life insurance to my current employer. The company I am working requires its employees to participate in the premiums at minimal fee, though getting the insurance benefit is optional. Should I purchase extra?
Aubrey
Glendale, AZ
I have a nephew in Arizona who did purchase multiple insurance at a young age and he ended overspending for life insurances. I don’t think you like to be in the same situation.
Most insurance experts do not recommend young people in excellent health to purchase extra life insurance from their employers. It can be more expensive than by getting their own, unless there is a group discount being offered.
Some companies shoulder the premiums on their account. In your case, since your employer requires you to participate in the premiums, it is better to settle you’re your active life insurance policy to minimize withdrawals for premiums. By limiting your insurance policies, you minimize your annual withdrawal from your income.
Remember that experts say that your goal should be to withdraw 5% or less annually for premiums to make sure that you are getting more from your portfolio returns.
Divorce Life Insurance Arizona AZ
Reader’s Question:
I am from Arizona. When my husband died this week, I learned that he changed the beneficiary of his life insurance to a female friend of his. My divorce decree ordered him to continue to name me as his insurance beneficiary. Will the insurance company honor the divorce decree in Arizona?
Meg
Chandler, AZ
If this “female friend” is NOT his spouse and if you know the insurance company’s name, then you have to consult with either a civil law attorney or business law attorney in Arizona who has experience in filing interplead actions with insurance companies. Such action will put the life insurance company on notice that you object to the designated payee. The life insurance will then let the court decide on who rightfully gets the money.
Your hired attorney can look at the law in Arizona to determine whether there is a stipulation on this case. Remember that some life insurance companies operate on their ruled which might not agreeable with state law.
Also, you need to check whether your divorce decree specified any penalties in the event that your late husband did not keep the life insurance policy in force. Determine the payout value of his policy. Verify if he left a last will and testament that is being probated. Your prayer in court will be that you will be placed as an irrevocable beneficiary.
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