Car Insurance in Oklahoma

Reader’s Question:

I currently have two insurance policies in Oklahoma. Will consolidating coverage result to a cheaper life insurance policy? How will I save money by consolidating?

Gary

Norman, OK

 

Good question Gary.

Yes. When you have two policies in Oklahoma, you are paying two policy fees at the same time. A policy fee is the amount that the insurance company charges on top of you premium. Policy fees range from $25 to $50 on term policies and can be more for whole life policies and universal policies.

Also, there is such thing called rate banding, by which life insurance companies offer a lower rate per thousand for a higher death benefit. Say for example, most insurance companies offer a lower rate per thousand for coverage at $600,000 than at $300,000 which can be similar to quantity discount.

Should you undergo replacement of policy to consolidate? Normally, yes. However, be very cautious when you consider replacement and always be sure of comparative information that your state requires before replacing a policy.