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Life Insurance: Can it Be Extended?

September 8th, 2010 by Iris | No Comments | Filed in advice and how-tos, insurance facts, life insurance

Most life insurance agents will tell you that the question their existing customers most often ask if their term policies can be extended. Sadly, there is only one answer to this question: NO. Why? Because the term of a life insurance policy is set at the time of issuance, and there are no extensions after that term.

When you’re shopping for term life insurance, then, be sure to talk with your agent or financial advisor about what term length is best for you. In most cases, unless you are taking out a life insurance policy that needs to have a short term for a reason (ten years to cover a short-term loan, for example), the longest term available (generally 30 years) is the best plan.

When you do a close comparison of different types of term insurance, you might find that even though a shorter-term policy seems less expensive in the moment, the rates tend to be higher if something happens to cause your health to deteriorate, while a longer-term policy will ultimately cost you less money in premiums.

Bottom line: if you’re buying term life insurance, purchase a policy with the longest available term for your age.

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Friday Filmstrip: Car insurance rates for women

August 20th, 2010 by Iris | Comments Off | Filed in advice and how-tos, auto insurance, friday filmstrips

Do women really get special rates on car insurance? Actually, no. For this week’s Friday Filmstrip, here’s a video from Ehow and YouTube explaining which factors really go into rate determination.

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Friday Filmstrips: How to Buy Homeowners Insurance

July 30th, 2010 by Iris | Comments Off | Filed in advice and how-tos, friday filmstrips, homeowners insurance

We can all use a refresher on how to save money when buying homeowners insurance. The editors from Kiplinger and the nice people at YouTube have enabled us to share the following video, that offers some key tips.

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Self Improvement Can Save Money on Life Insurance

July 29th, 2010 by Iris | Comments Off | Filed in advice and how-tos, insurance facts, life insurance

Okay, we all know that insurance underwrites use actuarial tables to asses risk factors and set premiums for each applicant. When it comes to life insurance, the higher your risk of dying early in life, the more expensive your insurance will be. There are two risk factors that you can control, and doing so will not only improve your quality of life, but also help you save money on life insurance.

Lose Weight
If you’re overweight, and want to improve your health, lower your risk factors, and save on life insurance premiums, shedding pounds will help do all of those things. Please understand, we believe people are beautiful whatever their sizes, and we understand that one’s weight is not a measure of his or her self-worth, but losing weight can also help reduce high blood pressure, improve cholesterol levels, and take you out of risk categories for heart disease and some kinds of diabetes.

Quit Smoking
The other act of self improvement that can lower your life insurance rates is quitting smoking. Again, we understand that smoking is an addiction, and we’re not judging anyone, but if you run any kind of search for life insurance as a smoker, and then again as a non-smoker, you’ll notice that those folks who are nicotine-free get lower premiums. Kick the habit, save some money.

Now, no one is saying that serious weight loss or ending decades-old smoking habit is easy, but many health insurance plans actually include coverage that can help you with guidance and/or treatment for both factors, and the hard work you’ll have to do may have positive effects beyond those you’ll see in your life insurance payments.

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No Dental Insurance? Consider a Dental School Clinic

February 3rd, 2010 by admin | 1 Comment | Filed in advice and how-tos, alternative health plans, dental insurance

Whether or not health insurance reform is ever actually passed, the reality is that there are some kinds of coverage that often fall through the cracks. Smaller businesses may offer health insurance, but not vision or dental coverage, and some communities don’t have a low cost dental insurance option. What do you do, then, if you have a dental emergency, or are trying to avoid one?

According to an article that ran in the New York Times last autumn, one solution may be to visit your local community college, college, or university – any one that has a dental school – because almost every dental school in the country offers affordable care provided by students, and supervised by experienced, qualified teachers. The quality of care is excellent, and the cost may be as little as a third of what your actual dentist would charge.

As an example, a young mother in Portland, Maine, took two children to a pediatric dentist for checkups. After receiving a bill for $375, she realized there had to be another choice. She ended up going to the University of New England’s dental college clinic, where the bill for her children’s next round of checkups totaled only $100.

Low prices aside, there are some downsides to going to a dental clinic.

They include:

  • Time. A procedure that takes 45 minutes in a normal dentist’s office could take up to three hours at a college clinic.
  • Scope of Care. Because the practioners are students, some states don’t allow them to actually diagnose problems, or treat anything that requires anesthetic. Instead, they’ll provide you with a report listing any “suspicious areas.”

Knowing that, are dental college clinics still worth it? If you typically have clean checkups, and merely want to be sure nothings wrong, or if you just want a cleaning, college clinics are an excellent option.

If you have trouble finding a dental clinic in your area, you can seek help from Oral Health America (oralhealthamerica.org or 312-836-9900).

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Planning for Retirement? Pay Attention to Health Care

February 2nd, 2010 by admin | Comments Off | Filed in advice and how-tos, health insurance, medicare

If you’re planning for retirement pay close attention to your health care options. Why? Because according to financial journal MarketWatch, this is likely to be one of the biggest costs you’ll have to absorb once you leave the workplace, even with the federal Medicare program providing your basic coverage.

Why is health care so expensive for seniors? There are several reasons, including:

  • You must often pay substantial out-of-pocket fees and costs
  • Medicare doesn’t cover long-term care, beyond a brief transition period
  • There are multiple parts to the Medicare plan that cover different aspects of care (hospital stays, regular doctor visits, prescription drugs)
  • Even above the three main parts to Medicare, you’ll have to make many, many choices about which benefits to choose and when they should begin, which is especially difficult if you have continuing health coverage from your union or employment when you enter retirement.

So what should you do to help keep your financial future easy to navigate? Charles Ellis, co-author of The Elements of Investing advises that simplicity is the key.

While keeping it simple may be wise, the advice is a bit vague. Here’s some that isn’t: you should know that you have the option of choosing to buy Medigap or a Medicare Advantage plan – both are supplemental policies that extend your health coverage. As well, you can choose to purchase private long-term-care insurance, in case you ever need ongoing nursing home care, or home health care, later on in life.

But how do you know what’s essential to saving money on health care in retirement, and how do you know what you can live without, and what must be purchased immediately? For that matter, how do you even know when the window for Medicare eligibility even begins?

One invaluable source is the Medicare Rights Center, they’re a non-profit consumer advocacy group with a mission to help senior citizens and those nearing retirement age in understanding how Medicare works, how to apply, and what changes may be occurring as health care reform moves closer to actuality.

Health care may be one of the biggest expenses of retirement, but it doesn’t have to be the most confusing. Get informed now, so you can be confident in your coverage later.

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Faith Based Insurance? Be Careful

January 27th, 2010 by admin | Comments Off | Filed in advice and how-tos, alternative health plans

At a time when many eyes and ears are focused on Washington, D.C. and a final (at least for now) verdict on health care reform, hundreds of thousands of evangelical Christians are choosing another alternative. It’s called a faith-based health plan and while it can save you money on major medical expenses, there are a few things you should know.

As reported by ABC News last September, if you belong to a Christian health plan, members cover each other’s major medical bills via monthly donations to the plan, and they must donate even if they never set foot in a doctor’s office in a given month.

To join, you must be an evangelical Christian who goes to church, and you must promise not to smoke, drink heavily, or have sex outside of marriage, and you must be approved by your minister or pastor.

The catch is that there are no guarantees that your medical bills will be paid, because these plans are not regulated by the government, and technically, they’re also not insurance. ABC’s reporters discovered that some of these plan advisors have spent members’ money on cars, houses, and travel, while others, since they are operated on a cash-flow basis, can only pay out based on whatever cash is on hand.

Finally, there are the other caveats: faith based health plans generally don’t cover contraceptives, do not cover abortion (even if it’s medically necessary) and often won’t cover AIDS treatment, even though AIDS can be, and often is, contracted by heterosexual patients.

The bottom line? Join all the prayer circles you want, find another way to donate to your church and be involved in your faith community, and if you think you’re likely to have major medical expenses, stick with conventional insurance.

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In an Accident? What Should You Do?

January 22nd, 2010 by admin | Comments Off | Filed in advice and how-tos, auto insurance

According to a survey done by the British auto insurance firm Swinton, up to 45% of commercial van drivers don’t exchange the required information when they’re in an accident, whether it’s serious or not.

Here in the United States, the statistics may not be quite so scary, but a significant number of drivers have found themselves sitting behind the wheel after a minor bump, wondering, should I report this fender bender?

The answer, probably unsurprisingly is “yes.” Why? Because if you don’t you leave yourself open to a lawsuit, or other financial repercussions.

If you are in an accident, even if it’s minor, what should you do?

  1. Call the police, if you’re required to do so in your state.
  2. If your cars are driveable, move them out of the roadway.
  3. Exchange your information with the other driver. This should include your insurance company information and phone number, as well as your name, address, and phone number. Make sure you get the same information in return. Also, take note of the license plate number of the other car.
  4. If there are any witnesses, get their information, too.
  5. If you have a camera on your phone, or have an actual camera in your car, take pictures of the scene, and any damage.
  6. Be sure to call your insurance company.
  7. If the police are called, cooperate fully with them.

Whatever you do, remain calm. If the accident is just a fender-bender, yelling at the other driver is only going to make things worse; if it’s really more serious, you’ll need to remain as rational as possible. Finally, it’s important that you never claim to be at-fault, even if you think you are. Instead, let the police and insurance companies work out the details.

- Get evidence – Use your camera phone to take photos

- Ensure you notify the police and your own insurance company

Phil Moss, Commercial Vehicle Manager at Swinton van insurance said: “Sub-zero temperatures across the UK are resulting in icy driving conditions which always increase the risk of an accident. Vehicle collisions can be very traumatic and the stress of the situation means people fail to take down the required information. It’s important that you take down all the details of the other driver, especially both their mobile and home telephone numbers as well as their insurance company details.

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Life Insurance Shopping 101

January 13th, 2010 by admin | Comments Off | Filed in advice and how-tos, life insurance

If you’re like most people, you see those television commercials selling life insurance to people between the ages of fifty and eighty and you pretty much blow them off. If you’re particularly technologically savvy, you might even use your DVR to watch all television, so you never have to see those commercials at all.

While it’s true that you shouldn’t buy insurance – any insurance – because of a television commercial, life insurance actually is a good idea, so here are some tips to help you shop for it:

  1. Time is Money: If you’ve ever wondered, When should I buy life insurance? Your answer is “Now.” Insurance companies round up your age – a 39-year-old will be priced as if she’s 40 – and premiums rise as you grow older, so it’s always the best plan to buy early – ideally in your late 20’s – to lock into the best possible rate.
  2. Research Counts: Before you ever speak with an insurance agent, do some research on the types of policies you’re considering, and on the companies you might want to buy from. Then ask for quotes from more than one company, and compare them closely – making sure you’re getting the coverage amounts you want for a price you’re willing to pay. Don’t let a pushy sales agent talk you into more coverage than you need, and be sure to ask questions if you have them.
  3. Pay Annually: If your finances allow it, try to pay your annual premium in one lump sum instead of making installments. You can save up to 20% by doing so. If this isn’t possible, opt for paying via EFT (electronic funds transfer) as many insurers offer a discount for electronic payments.
  4. Be Honest: No pun intended, but honesty really is the best policy. Yes, you’ll have to pay a higher premium if you haven’t kicked the smoking habit yet, but tell the insurance agent anyway – if you don’t you run the risk of having your policy canceled. If you have other health issues – high blood pressure, for example – be sure to visit a doctor and get it resolved before your medical exam. No-exam insurance is available, but it’s much more expensive.

If you’re really uncertain about whether or not you need life insurance, consider whether or not your family will be placed in financial jeopardy if you were to die. If the answer is yes, start shopping today.

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Renters Insurance

January 11th, 2010 by admin | Comments Off | Filed in advice and how-tos, renters insurance

If you’re living in an apartment, saving pennies so you can buy a house some time, and trying to cut costs where you can, you may find yourself wondering, “Is renters insurance good?” You might find yourself arguing, “After all, the landlord’s insurance will pay to rebuild the apartment if something happens. It’s not my responsibility.”

While it’s true that your landlord’s coverage is designed to replace the apartment building, the contents of your apartment – your clothes, your computer, any art, antiques or jewelry you own – those are all your responsibility, and that makes renters insurance not just “good,” but essential.

Just how essential is it? According to the Georgia Insurance Information Service, renters insurance is crucial for the following reasons:

  • It protects you against losses due to: fire or smoke, lightning, vandalism, theft, explosion, windstorm, and water damage from plumbing issues (but not from flooding, which requires flood insurance even for renters.)
  • Covers you against liability (within your policy limits) is someone slips and falls inside your apartment, or is injured by one of your possessions.
  • Insures your personal property against theft, when you’re away from home (for example, if your laptop is stolen from a hotel room.)
  • Covers your bicycle, if it’s stolen while you’re out on a ride, but other vehicles are not typically covered.
  • Is written not just for standard apartments, but also serves as the template for contents insurance for condos, co-ops and townhomes.

If you’re shopping for renters insurance, the best way to get a competitive rate is to be a savvy shopper. Here’s how:

  1. Inventory Your Belongings: Before you ever commit to a policy, before you even start looking, catalog all of your possessions, including descriptions, serial numbers, estimated values, purchase dates, and receipts (if you have them). Taking pictures of everything, or shooting a video, isn’t a bad idea either. Not only will this help prospective insurance companies generate an accurate quote, but it will also serve as a useful tool later, if you ever have to make a claim. Make a copy of everything and store it outside your home, for backup.
  2. Ask Questions: There are three key things you’ll want to ask about: theft limits (Ask for a list of standard coverages, compare it to your inventory, and then you’ll know if you need to purchase any personal property riders to extend your coverage), cash or replacement value (Coverage can be based on either cash value or replacement value, the first takes the age and condition of your possessions into account, the second bases value on the price of a similar item in today’s market. Replacement value policies tend to be more expensive.), and deductibles (the amount you pay up front if you make a claim. Generally, the lower the deductible, the higher your premium.)
  3. Ask About Discounts: Just as with conventional homeowners insurance, you can save money on a renters policy by bundling your auto insurance with the same company, or by adding security systems, deadbolts, or smoke detectors to your apartment. You might even earn a discount for being a nonsmoker. Discounts vary from company to company – be sure to ask.
  4. Comparison Shop: Always get quotes from more than one insurance company, and compare them closely before signing a contract. Sometimes one company may offer more coverage for less money, but offer less flexibility.

While these tips are excellent advice, don’t let the comparisons bog down making a decision. Renters insurance can’t help you, if you don’t actually have it.

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