Monday, May 25, 2020

How to Lower Your Life Insurance Premiums

In the world today when human health and life are extremely precarious, getting a health insurance becomes mandatory for every individual. Health insurance can be of immense benefit in the hours of need. It brings requisite money at your doorstep when you are impotent to earn and meet your medical and other expenses. On the same hand it is also a great help to the person’s family.

But despite of being aware of the value of an individual’s life on and also of the countless advantages fetched by a health insurance policy, people hesitate in taking it. According to surveys the primary reason behind it is the cost of the policy. However, if a person is little vigilant he can always gain the pleasure of a health insurance policy at affordable rates.

The cost of a health insurance policy varies greatly with the region in which an individual is located. All the health insurance plans are not available everywhere. For instance citizens of places like Washington State and Kentucky do not have many options to explore. People residing in the rural areas such as Texas and the like do not get to save enough on HMO policies due to lack of people that make it economical. Similarly some states do not have the option for an association health plan. However these things should not obstruct you from buying a health insurance policy. For there are quite a few ways in which you can acquire a reasonably priced life insurance policy.

In order to have an affordable policy, the foremost thing to be done is to opt for a health insurance broker who is well acquainted with the insurance market and business. Internet is the perfect means to hunt for an agent. A broker will not just present different market rates to you but will also negotiate with the company for the rates. Moreover he will also tell you what are the different ways in which you can lower your premiums like by joining a group etc.

Another good way to procure an affordable policy is to obtain online quotes. There are quite a few sites that will assist you with the requisite details after you give them some general information about yourself.

You should also visit to your state insurance department’s website. Here you will see the complete list of companies that sell individual coverage as well as those that sell without brokers in your state.

You can also look up the state’s insurance pool. At many places such as Texas, those individuals who do not get coverage anywhere else are covered under the high-risk pool.

For those who have debilitating physical conditions, COBRA legislation is good option.

You can also form your own small group. For small groups the employer group policies are quite often subject to different rules. These are offered at relatively low prices and turn out to be more spirited.

Finally you can even become a part of an association or group that has group coverage.

How To Make Huge Savings On Your Life Insurance

Having life insurance is essential especially if you have children and a family who are dependant on you. While it would be hard enough for them to come to terms with the death of their loved one, they would also have the added worry about how to cope financially.

A recent survey has however shown that a staggering third of all people who pay out for life insurance pay far too much for their premium. There are however many ways that you can save money on your life insurance premiums and one of the best ways to start making savings is to use a specialist broker.

While going online yourself and doing a little research you are able to make comparisons with many insurance providers, you will get a good idea of the sort of cover you want. You can then let the broker take it from there. This will lead you to getting the lowest premium and the best deal possible.

Another factor you should take into account if you have a partner or family is to check out if it might be possible for you to save money by covering all family members under one policy. This can sometimes work out much cheaper than buying separate cover for all of them.

While life insurance can be confusing, when you start looking around online for information it suddenly becomes much easier to understand.

Should you wish to find the insurance yourself, then there are some things that you should take into account when looking around online for the cheapest deal. For instance, if you have a pre-existing medical condition then it is essential that you be totally honest about this.

If you do have an existing condition and have already got life insurance then you could still save money on your premiums by switching, especially if the condition has improved since you last took out insurance.

The price you pay for the premium can also depend on your lifestyle, such things as giving up smoking and drinking can save you a lot on your premium, and it also helps that if you are overweight, you lose a few pounds.

If you currently have life insurance and are switching it then you will also have some things to consider before making the switch. You should always make sure that you don’t cancel the policy you have now until you make sure that the new one is in place fully, so that don’t leave yourself without any insurance.

Always make sure that you check what a policy covers you for, there are many exclusions within a policy and if you do have any existing medical conditions this might leave your loved ones unable to make a claim should it come to it.

How to Save Money by Investing on Life Insurance

A well-known adage says: “Money saved is money earned”. Saving money by investing on life insurance has become a rage these days amongst all sections of the society. According to a recent media poll, most senior citizens like investing on life insurance in order to save money form being wasted. In this age of information technology consumer has really emerged as the uncrowned king of every business activity.

With a little bit of precision and proper market survey the best deal will invariably land in your lap. This new consumerist economy forced the life insurance corporations to emerge in its new avatar. Form being just life insurance corporations it has now become to money saving forums catering to the needs of its aggressive consumers.

Ways to save money when investing on life insurance:

  • Always go for financially sound companies when investing on life insurance-Almost all companies these days sell life insurance. So, it is better to narrow down your search by going for only companies having good reputation in the market. Do not get lured by companies offering low premium rates. They may turn out to be a bad choice in the long run.
  • Determine the right rate class-Once you have decided which companies you want to go for determine the rate class that suits you best. Most of the life insurance companies sell different price classes.
  • Do a small market survey research to decide the standard premium rate- A small market research is crucial in determining the standard premium rates charged by life insurance corporations.
  • Look into group insurance-Employer sponsored life insurance are perhaps the safest bet. It is advisable to go for it even it require you to shell out a few bucks from your own pocket. Employers of reputed corporations generally provide a subsidy on group insurance costs making it less expensive than individual life insurance. Make a comparison on group and individual rates while taking into account certain factors like health status, age etc.
  • Paying premiums at small intervals is not a good money-saving tactic-Paying your premiums at small intervals may cost you much more than paying once every year or once every half-year.
  • Get a good rate for yourself-Finding yourself a good rate may be a daunting task for you as many companies essentially offer different rates for the same policy.
  • It’s advisable to look for renewal guarantees-Always go for renewal guarantees. So, that after the current renewal ends you are able to start a new term and in the process save money.

Getting the right kind of deal and saving money by buying a life insurance may turn out to be a messy affair if you do not take proper precautions before venturing out to find the deal that suits you best. It is a good idea to get some handy tips from an industry insider so that you do not fall in a financial trap.

Saving money is all about making then right moves at the right time. So, throw all your financial worries at bay and invest on life insurance only to gift yourself and your family a life worth living.

Top Tips for Buying Life Insurance Online

More and more people in the UK are buying life insurance online and the numbers seem to be doubling every two years. The reasons are clear. Prices are lower on the Internet and life insurance is fundamentally a simple insurance product.

Despite the underlying simplicity of life insurance, most web sites channel their online clients through a telephone based help and advice service manned by experienced personnel. They represent your safety net so if a little technical knowledge is called for, help is at hand.

But it’s always a good idea to have a few Top Tips in your back pocket when you’re shopping online for life insurance. They’ll help you ask the right questions and find the best policy.

1. Always have your Life Insurance policy “Written in Trust”.

This means that in the event of a claim, the money goes directly and immediately to the person(s) you nominate when you first take the policy out. It also avoids all possibility of your estate having to pay Inheritance Tax on the proceeds of your policy and that could represent a 40% tax saving !
All you have to do is tell the online brokerage organising your policy that you want your policy”Written in Trust” and the names of the people who the life insurance company pay in the event of a claim. They will then sort it all out for you. The extra good news is that this service is invariably free of charge. So it’s a win win situation and there aren’t many of those around these days !

2. In the early years a Reviewable Life Insurance Policy will be cheaper but a Guaranteed Policy will work out a better buy in the longer term.

With a “Guaranteed Policy” the insurance company guarantees never to increase your policy’s premium.

With a “Reviewable Policy” you agree that your insurance company can review the cost of your policy at regular intervals. But don’t be kidded ‘ in our experience a ‘review’ is just another word for a price increase. After all, who’s ever heard of an insurance company passing up a chance to charge you more! The review intervals are usually between 2 to 5 years but this does vary between insurance companies. You will find the details of the review intervals on the documents sent to you before you accept the insurance these are called The Key Features Documents.

So, comparing otherwise like for like policies, in the early years the premiums for a “Reviewable Policy” will undoubtedly be lower than the premiums for a “Guaranteed Policy”. Thereafter, the premiums for a Reviewable Policy increase eventually catching up with and overtaking, the premium for a “Guaranteed Policy”.

In our experience, you can expect the monthly premiums for a Reviewable Policy to exceed those of a Guaranteed policy in about 7 to 10 years and then within the following 10 years, more than double again. If your budget is currently tight then by all means choose a Reviewable Policy – after all your salary may increase in coming years and ease the strain. On the other hand, if the premiums for a Guaranteed Policy are affordable, we think they represent your best buy.

A footnote. Many insurance companies have stopped offering Guaranteed rates for standalone critical illness insurance policies. This because they have experienced much higher claim rates than they initially expected. However, you may still find a Guaranteed life insurance policy that also provides critical illness cover. As we have explained, Guaranteed rates are especially good value and if you can get a quote for a Guaranteed life policy that includes critical illness cover, you may have a real bargain.

3. Thinking about a Joint Life Insurance Policy?

A Joint Life Insurance policy is usually written on a first death basis. This means that the policy will pay out on the death of the first policyholder, subject to the policy being in force at the time. This leaves the second person uninsured and older. Older people can struggle to get life insurance at an affordable premium, so rather than a Joint Policy consider taking out separate policies now. Overall it will work out a little dearer – but you get twice the cover and double the peace of mind.

4. Taking out a Life Insurance Policy? Now would be an ideal time to include Critical Illness cover.
Are you likely to need Critical Illness Insurance in the future? Yes? Then consider adding it now to the life insurance policy you’re arranging. Why? There are three reasons.

Firstly, a Life Insurance policy combined with Critical Illness cover will work out significantly cheaper than buying two separate policies. Secondly, as we have already explained in the footnote to Tip 2, you may be able to buy a combined Life and Critical Illness policy with a guaranteed premium. That could be e real bargain. Finally, premiums for critical illness cover increase rapidly as you get older so the sooner you take it out, the cheaper it will be.

5. Don’t confuse Terminal Illness cover with Critical Illness cover.

There’s world of difference between Terminal Illness and Critical Illness cover so it’s important to understand the difference.

Terminal Illness cover pays out the insured lump sum if a Medical Doctor diagnoses you with an illness from which the Doctor expects you to die within 12 months. Most good life policies automatically include Terminal Illness cover at no extra cost. It’s basically an early, and welcome policy payout.

A Critical Illness policy pays out the insured lump sum if you are diagnosed with one of a wide range chronic illness and there is no life expectancy criteria. Indeed, with many of the insured illnesses you could expect to survive for many years. For example: certain cancers, heart disease, stroke, multiple sclerosis, loss of speech, sight or hearing, onset of Parkinsons or Alzheimers disease, third degree burns etc. Say you were an engineer aged 40 and you lost your sight. A Critical Illness policy would pay out immediately and that money could well be vital in helping you and your family through many difficult financial years ahead. If you just had Terminal Illness cover there’d be no chance of a payout.

So as you can see, Critical Illness cover is far more comprehensive than simple Terminal Illness cover and for that reason critical illness cover always costs you extra.

Thursday, May 21, 2020

5 Tips For Cheaper Life Insurance Premiums

1. Consider an income policy instead of a lump sum

Most people know that life cover pays out a lump sum if you die. But far less know that you can buy cover that pays a regular tax free income instead of a lump sum. It's official name is Family Income Benefit and is often cheaper than the more common Level Term lump sum payout option. So why would an income be better than a lump sum?

Many people who take out a life insurance policy simply want to provide an income for their family to replace the earnings lost if they died prematurely. But many policies are bought with a lump sum benefit requiring the surviving family to find a suitable savings or investment vehicle to generate an ongoing income. In addition, the interest generated from a lump sum is taxable whereas the income from a family income benefit policy is paid tax free.

For many people not used to managing large amounts of money, suddenly having to find the right savings account or investment can prove an additional burden at an already distressing time. This is where Family Income Benefit can offer the best of both worlds.

2. Consider a reducing policy for mortgage life cover

One of the most common reasons for needing life insurance is to protect a mortgage loan. The type of mortgage you have will largely dictate what form of life insurance you need but this is often one of two types of term life insurance.

If you have an interest only mortgage then you will need level cover as the mortgage debt will remain constant unless you increase or reduce the mortgage loan. However, those with a capital and interest mortgage can opt for a decreasing term policy where the cover reduces in line with the reducing mortgage loan. As the cover reduces over time so does the risk to the insurance company making this type of life insurance cheaper than the level term option.

So if you have a capital and interest mortgage with a level term life insurance policy and only need to cover the mortgage amount, you could save money by switching to a reducing policy. The downside to this is that you will lose any surplus cover provided by a level policy as the mortgage loan reduces but the level insurance benefit stays the same.

3. Stop smoking

All insurance is based on risk and so to cut the cost you have to cut the risk. With life insurance, the risk is based upon your chances of dieing whilst the policy is in force. Insurers measure the risk by assessing your health and medical history.

Anything that increases your risk of dieing prematurely will increase your premiums. These risk factors can include your current state of health, family history, hazardous occupation or hobbies but most commonly being a smoker has the greatest impact.

Now, I know you're not going to stop smoking to save money on your life insurance but its one more reason in a long list to quit. Not only will you save money on the cigarettes but you can also add a saving of around 40% on your life cover premiums too.

4. Shop around

Life insurance is a very competitive market and prices can vary widely depending upon where you look. The easiest way to compare lots of insurers and policies at once is to use one of the many free online comparison websites. The only caveat to this is to be aware that these sites only compare premiums and not cover, so have a firm idea of what type of cover you need first. This will help you to compare like with like and discover the true bargains.

Alternatively, you can use an insurance broker to do the shopping for you and this route can yield some substantial savings if you use a particular type of insurance broker.

5. Use a discount life insurance broker

If you know which type of cover you need and don't require any advice, a discount online insurance broker can save you hundreds of pounds in lower premiums.

Due to the low costs and large audiences available via the internet, many life insurance brokers have launched websites offering life insurance quotes with major insurers at discounted premium rates. These brokers are able to discount cover from major insurers by rebating much of the commission they receive from these insurers to reduce your premiums.

Savings vary but can mean genuine reductions of between 10% and as much as 40% over the insurance company's standard premiums. Many sites provide instant online quotes comparing multiple policies from leading insurance companies.

A simple Google search for discount life insurance will provide a list of most brokers or use an insurance directory like UK Insurance Index which also features customer reviews.