How To Save When Buying Term Life Insurance by Sharon Taylor

Term Life Insurance

Term life insurance has always been known to be a cost effective vehicle to protect your family should you pass away unpredictably. It offers basic, no-nonsense coverage so that your spouse and children could continue living in the same fashion you have accustomed them to while you were alive and working. Even though term life insurance is comparatively inexpensive, it would still be wise to shop out the different carriers as policies vary, as do premiums and provisions. The following are some ideas on how to save even more money when buying term life insurance.

Term Life Insurance Quotes

As noted, it is a good idea to shop out a few carriers to see who would best suit your needs as well as your lifestyle. For example, some companies charge differently for an extreme sport that is a huge part of your lifestyle. If you mountain climb, for instance, one company may charge more for that risk than another carrier. It is wise to either gain multiple term life insurance quotes or have a reputable financial advisor do the footwork for you.

Make sure you ask your financial advisor for carrier price breaks. Some companies offer a break in price if you purchase a certain face value. You could actually end up saving money by choosing a higher face value. If you qualify (policies are also based on current employment) you could end up paying just a couple dollars more for a $500,000.00 policy versus a $250,000.00 policy. Doubling your face value for just a couple of dollars would pay off greatly for your survivors should the unthinkable happen.

After you get your term life insurance quote and choose the best policy, make sure to ask about your payment/billing options. Many life insurance companies offer discounts to individuals who choose to pay their premiums annually, or who pay monthly by electronic funds transfer (EFT).

It is also important to review your term life insurance rates at least ever three years, if not annually. Life changes so often in this fast paced environment that circumstances such as divorce or a birth of a new child will affect your financial needs or your desire to scale back. Term life insurance prices also change annually so depending on the kind of protection you need; you want to give yourself plenty of time to put a new policy in place to avoid overlapping coverage.

Age Makes a Difference

Although many people wait to buy insurance until they are a bit more settled financially and have acquired more assets, term life insurance is less expensive when you buy while you are younger. Term life insurance rates go up as you get older and keep in mind that your "half birthday" may make a difference in the premium that you will pay. Most term life insurance companies will increase the rates on their policies six months before your actual birthday. This is known as "the age nearest" in the insurance industry. While the amount of increase might seem negligible to you, a few dollars perhaps, those few dollars add up over the years especially when purchasing a 20 or 30-year policy. Also, it is best to buy while you are young because presumably you are in better health than the older population. Your chances of getting full approval without restrictions are better when you are in good health and your medical exams come back clean.



Buy Term and Invest the Rest

Truly, by doing a little homework you can save even more on a term life insurance policy. Follow the traditional saying, "Buy Term and Invest the Rest." You will not only have the financial security your family deserves but you can build a healthy nest egg by investing your savings into a higher interest-earning vehicle.
About the Author

Sharon Taylor is a professional writer for eQUOTE Life Insurance. eQUOTE is an excellent online resource providing online quotes for term life insurance to families in 42 states.



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Articles from June 2007
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Critical Claims Statistics for Critical Illness Cover by Ray Prince

Any form of insurance can be seen as a risk.

You pay a monthly or annual premium to an insurance company for a set amount of cover, effectively passing the risk to the insurance company. As long as you pay the premiums you'll continue to be covered, for whatever purpose.

When it comes to protecting YOURSELF in the form of life assurance, critical illness cover, permanent health insurance or private health insurance you really do need to take the time to do your research (or pay someone to do it for you) as this form of cover is not the type that you'll normally be shopping around for on an annual basis.

For example, once you've applied for and been accepted for income protection cover it's unlikely that you'll change the plan or company that you're insured with in the future as the cover is based on your age and health at the time you apply.

One of the factors that you may not have included in your research is the actual claims history of the insurance company that you choose. After all, if you put in a claim you'll want to know what your chances of a payout are going to be.

During the last 2-3 years more insurance companies have been publishing their claims statistics. This is crucial information as it gives you the opportunity to understand which conditions are being claimed for the most (so you can ensure that your plan covers these conditions and the wording of these conditions is competitive when compared to all other providers).

Fortunately, the Association of British Insurers (ABI) publishes a set of definitions for 20 conditions (see below) and registered insurers who cover any of these conditions must comply with, or surpass, the ABI definition.

The 20 conditions:

-Cancer
-Heart attack
-Major organ transplant
-Stroke
-Coronary artery by-pass
-Kidney failure
-Multiple sclerosis
-Aorta graft surgery
-Blindness
-Deafness
-Loss of limbs
-Benign brain tumour
-Coma
-Heart valve replacement or repair
-Loss of speech
-Motor neurone disease
-Paralysis/paraplegia
-Parkinson's disease
-Terminal illness
-Third degree burns

Many companies also cover additional conditions, including bacterial meningitis and pre-senile dementia.

Skandia, one of the leading providers in the critical illness market, have recently released their claims statistics (covers claims up to 1 February 2007).

They have:

-Paid 1920 claims totalling over ?182m
-The average age of claimants is 46
-On average a policy is in force for 4.7 years prior to a claim
The most common claims are for:
-Cancer, 59%
-Heart attack, 15%
-Heart surgery, 8%
-Stroke, 7%
The most common forms of cancer claimed for are:
-Breast cancer, ?23m
-Lower intestine, ?11m
-Malignant melanoma, ?9m
-Prostate, ?7m

They have paid 88% of claims, with the remainder being declined for the claim either not meeting the definition (10%) or where the applicant did not disclose all the information required at the time of application (2%).

The Financial Tips Bottom Line

If you currently have ANY form of personal protection policy, it makes sense to review your plan(s) to ensure the cover you have is competitive and suitable for your circumstances. If you don't yet have cover make sure you do thorough research before you buy a policy.
About the Author

Ray Prince is an Independent Financial Planner with Rutherford Wilkinson plc, and helps UK Resident Doctors and Dentists get the best deals on mortgages, protection and investments, as well as helping them achieve their financial objectives. Just visit http://www.medicaldentalfs.com to get your free retirement planning guide. Rutherford Wilkinson plc is authorised and regulated by the Financial Services Authority.

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10 Tips That Will Help Save On Auto Insurance by Barry Allen

Very often we land up spending more on insurance policies than on ourselves. Many insurance policies like life, health, home, and auto insurance are not just essential but mandatory. Auto insurance alone can set you back by several hundred dollars every year.

How much the premium on auto insurance will cost really depend on many factors like: your age, driving record, where you live, the risk factors, and the make and age of your car. If you are style conscious and choose a powerful car in the latest model then you will certainly have to pay higher insurance. And, as you know having no auto insurance coverage is not an option. And, if you do not have adequate coverage and when good luck is not on your side, you could land in deep financial mess if you were to be involved in an auto accident or theft of the car for no fault of yours.

So stop thinking of cancelling your auto insurance comprehensive coverage and find ways in which you can have the same extensive coverage for lower costs. You can reduce auto insurance premiums by:

1. Making the time to shop around. Do the exercise well before the auto insurance comes up for renewal. Auto insurance premiums vary from company to company and between online payments and payments at offices or by mail. So, comparison shop and find an insurance policy that offers a great bouquet of coverage for less than what you are presently forking out for auto insurance. Shop online and use the tools for getting comparative quotes from different providers.

2. Thinking about increasing your deductible. Paying a higher deductible always lowers the premiums payable on auto insurance. Check your finances to see how much of a larger deductible is possible without pinching your pocket.

3. Maintaining a good credit score and report these always get you a better deal with auto insurance companies. A good credit report means that your risk is lower than others so insurance companies will gladly offer you better rates to cover your vehicle.

4. Being eco-friendly and driving an eco-friendly car then you will be eligible for a great deal from the auto insurance company. Many companies have special discount schemes on auto insurance for clients who care for the environment.

5. Keeping your mileage low if you driver lowers than say 7500 miles a year you will qualify for a low-mileage discount. Qualify for this discount on your auto insurance premium by car pooling, walking instead of driving to close by locations, and using public transport.

6. Not using your personal vehicle for business related travel. Vehicles used for work related driving attract higher auto insurance coverage than vehicles meant for personal use.

7. Considering a policy that covers all the vehicles the family owns. A group auto policy means much lower premiums than covering each car owned by the family separately.

8. Finding out if your organization or memberships to clubs or other professional organizations, makes you eligible for a discount on an auto insurance policy. For example most companies offer discounts on premiums to cover vehicles owned by members of AAA.

9. Maintaining an error free driving record for three years you will become automatically eligible for a discount on premiums payable. No accidents, drunk driving convictions, moving violations, or break downs means great savings on premiums payable on auto insurance. When you have a clean driving record it means your risk is lowered greatly.

10. Considering taking an auto insurance policy from the same provider who has extended life, home, and health policies for your family. When a company knows you well they are more than willing to offer you auto insurance at lower than market rate.

Other ways of reducing payment for auto insurance are: to live away from the city in a community that has less traffic, lower accident rates, and lower crime rates and to buy a low risk car. Sports and other high-performance vehicles are considered high risk by insurance companies and attract higher insurance premiums than a station wagon, sedan, or compact car.

Lower insurance payments on your car by following the recommendations of the road traffic police and insurance companies. For example installation of anti-theft devices, air bags, seat belts, and anti-lock brakes will make you eligible for great discounts on insurance premiums. So, instead of moaning and groaning about high premiums reduce your auto insurance premiums by following the recommendations given above and constantly staying abreast of new developments in the auto insurance sector.
About the Author

Barry Allen is a freelance writer for http://www.1888carinsurance.com , the premier website to find Car Insurance Quotes including auto insurance quote, online auto insurance quote, free car insurance quote, cheap car insurance quote, on line car insurance quote and more. He also freelances for the premier Insurance Quote Site http://www.1888insurancequote.com

Articles from June 2007
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Everything You Need to Know About Life Insurance Companies. by John Glasier

The first step you need to follow, when buying life insurance policy, is to know the company that you want to deal with. The biggest mistake that people make is buying insurance policy from first company they have encountered. It can work to your advantage but you should not forget that there are many companies to choose from. If you purchase insurance without looking at 3-4 other offers on the market, your chances of ending up with a product that may not best suit your interests or even cost you more then it should, will greatly increase.

Shop and Compare multiple Home Insurance quotes for free. One of the best ways to find out more about insurance company is to go online. You can always visit their websites for more detailed information about company and their products. You can also find reviews for almost any insurance company out there from other people who have dealt with them. This will insure that you will have pretty good idea of what other people think about one particular insurance company.

When shopping for life insurance, one should not forget about having all their questions answered. So you should not limit yourself to online information only. Make sure that you contact your agent and have all of your questions answered.

Knowing insurance company you are dealing with is crucial. A lot of people think that all insurance companies are the same way. They could be selling same products but there will be a lot of details that will differ from one company to another. So as you could see, it is very important to learn as much as possible about insurance company you want to buy life insurance policy from is very important.




About the Author

John Glasier

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