Top 5 Tips to Save Money on Your Insurance Premiums
Editor's note: This is a guest post from Kristy Ramirez
We all want our dollar to go further, and so we look for ways to cut back on bills and expenses. However, something you don’t want to risk cutting back on just to save a little money is your insurance coverage. Luckily there are a few simple things you can do to make your insurance premiums more affordable:
1 – Look after yourself
The easiest savings strategies are ones which fit in with what you’re already doing. Therefore, since we ‘d all like to have more energy, eat better and lose a bit of weight, look after yourself to save on your insurance premiums too.
You can find your insurance premiums go down when you look after areas of your health such as:
• Your weight. If you are overweight, even if you only have a little bulge around the middle, then your insurance company will look at all of the health problems associated with weight. Therefore, find out what your optimal weight should be for your height, age and background and work towards that goal weight.
• What you put in your body. This includes things like sweets and fast food, as well as alcohol because your diet and drinking habits will all affect how your body functions, and prolonged abuse through consumption can put you at risk of a variety of health problems, making you risky to insure.
• Smoking. No one needs to be told that smoking is bad for their health, but it is also very bad for your insurance premiums. Smoking not only leads to a variety of cancers but also puts you at risk of everything from stroke to gangrene. So quit now and save your life, your pocket and your premiums.
• Lifestyle. Just as your mother would always call out ‘be careful’ after you each time you left the house, your insurance company wants the same thing for you so that they can list you as a less risky client and provide you with lower premiums. However, if you have a dare devil lifestyle or even if you have a risky job, then in the eyes of your insurance company – and probably your mother too – you’re not looking after yourself, you’re putting yourself at risk of making a claim.
2 – Pay your premiums less often
While having your account debited each month to pay your insurance premiums is convenient, to could be costing you more. Often insurers will apply a surcharge to allow you to pay your premiums by the month, because they have to organize ore transfers and more paperwork throughout the year. Therefore, ask your insurer whether you could save on your premiums by paying annually or even six monthly, which might seem like a bigger dent in the budget at the time, but will save you in the long run – which is what insurance is all about.
3 – Look after your budget
Insurance premiums can seem so expensive because there are just so many bills to pay each month, that your premium can often feel like the straw threatening to break the camel’s back. However, if you examine your budget and re-prioritize your spending to include essentials such as life insurance right up there with your mortgage and car repayments, then your cover can seem more affordable.
At the same time you may need to reassess your other spending, and consider whether the lifestyle you are living is in line with the income you are earning, and what you are really jeopardizing by justifying those new shoes or extended holiday, in lieu of an insurance payment.
4 – Term life insurance cover
If your insurance premiums are getting too much to handle, look at switching to term life insurance cover. A term policy will give you comprehensive cover for a minimal premium amount because you are covered only for the term of the policy, not for your whole life.
A whole of life insurance policy will usually cover you for up to 99 years and is one of the most expensive types of insurance. However, if you switch to a term life insurance policy you only need to pay premiums to cover a shorter period of time, and since the term is limited and doesn’t cover you until death, there is less chance of you making a claim – for example if you are 30 years old and take out a 10 year term insurance policy, there is less chance of you dying before you’re 40 than if you were covered under a whole of life policy.
5 – Negotiations and bulk buying
If you’re not happy with the amount you are paying for your life insurance then talk to your insurer about it. You’ll never know if they’re willing to give you a better deal unless you ask, and if you are an existing and long term customer, you have an even better chance to negotiate a discount.
Plus, if you feel like you’re getting a raw deal from your insurer because of your circumstances, discuss it with them. There is an example of a couple who sought an insurance quote, and who were very healthy people. Being honest, the gentleman admitted that he smoked a cigar every now and then on special occasions. Unfortunately the insurance company then classed him as a smoker, but the couple weren’t happy with that. They wrote a letter to the head of the insurance company explaining the situation, and after three weeks of negotiation, the gentleman was declared a non smoker on his policy, and the quote for his insurance premiums halved.
Also don’t be afraid to negotiate the amount of coverage, because you can find that the more you buy, the better value it is. For example if you bought $240,000 worth of insurance you would pay $278 per year in premiums, but if you went up to $250,000 of cover you would pay just $260 per year. Each insurer has their own tiered system, so take the time to discuss your options and your situation.
Additionally, its now very quick and easy to compare life insurance premiums online with financial comparison websites such as Life Insurance Finder. Don’t waste a whole afternoon ringing around when you can easily compare prices online with the click of your mouse.
Kristy Ramirez writes for Life Insurance Finder where she helps people to compare life insurance quotes and select the best policy to meet their needs at the best possible price.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
Editor's note: This is a guest post from Kristy Ramirez
We all want our dollar to go further, and so we look for ways to cut back on bills and expenses. However, something you don’t want to risk cutting back on just to save a little money is your insurance coverage. Luckily there are a few simple things you can do to make your insurance premiums more affordable:
1 – Look after yourself
The easiest savings strategies are ones which fit in with what you’re already doing. Therefore, since we ‘d all like to have more energy, eat better and lose a bit of weight, look after yourself to save on your insurance premiums too.
You can find your insurance premiums go down when you look after areas of your health such as:
• Your weight. If you are overweight, even if you only have a little bulge around the middle, then your insurance company will look at all of the health problems associated with weight. Therefore, find out what your optimal weight should be for your height, age and background and work towards that goal weight.
• What you put in your body. This includes things like sweets and fast food, as well as alcohol because your diet and drinking habits will all affect how your body functions, and prolonged abuse through consumption can put you at risk of a variety of health problems, making you risky to insure.
• Smoking. No one needs to be told that smoking is bad for their health, but it is also very bad for your insurance premiums. Smoking not only leads to a variety of cancers but also puts you at risk of everything from stroke to gangrene. So quit now and save your life, your pocket and your premiums.
• Lifestyle. Just as your mother would always call out ‘be careful’ after you each time you left the house, your insurance company wants the same thing for you so that they can list you as a less risky client and provide you with lower premiums. However, if you have a dare devil lifestyle or even if you have a risky job, then in the eyes of your insurance company – and probably your mother too – you’re not looking after yourself, you’re putting yourself at risk of making a claim.
2 – Pay your premiums less often
While having your account debited each month to pay your insurance premiums is convenient, to could be costing you more. Often insurers will apply a surcharge to allow you to pay your premiums by the month, because they have to organize ore transfers and more paperwork throughout the year. Therefore, ask your insurer whether you could save on your premiums by paying annually or even six monthly, which might seem like a bigger dent in the budget at the time, but will save you in the long run – which is what insurance is all about.
3 – Look after your budget
Insurance premiums can seem so expensive because there are just so many bills to pay each month, that your premium can often feel like the straw threatening to break the camel’s back. However, if you examine your budget and re-prioritize your spending to include essentials such as life insurance right up there with your mortgage and car repayments, then your cover can seem more affordable.
At the same time you may need to reassess your other spending, and consider whether the lifestyle you are living is in line with the income you are earning, and what you are really jeopardizing by justifying those new shoes or extended holiday, in lieu of an insurance payment.
4 – Term life insurance cover
If your insurance premiums are getting too much to handle, look at switching to term life insurance cover. A term policy will give you comprehensive cover for a minimal premium amount because you are covered only for the term of the policy, not for your whole life.
A whole of life insurance policy will usually cover you for up to 99 years and is one of the most expensive types of insurance. However, if you switch to a term life insurance policy you only need to pay premiums to cover a shorter period of time, and since the term is limited and doesn’t cover you until death, there is less chance of you making a claim – for example if you are 30 years old and take out a 10 year term insurance policy, there is less chance of you dying before you’re 40 than if you were covered under a whole of life policy.
5 – Negotiations and bulk buying
If you’re not happy with the amount you are paying for your life insurance then talk to your insurer about it. You’ll never know if they’re willing to give you a better deal unless you ask, and if you are an existing and long term customer, you have an even better chance to negotiate a discount.
Plus, if you feel like you’re getting a raw deal from your insurer because of your circumstances, discuss it with them. There is an example of a couple who sought an insurance quote, and who were very healthy people. Being honest, the gentleman admitted that he smoked a cigar every now and then on special occasions. Unfortunately the insurance company then classed him as a smoker, but the couple weren’t happy with that. They wrote a letter to the head of the insurance company explaining the situation, and after three weeks of negotiation, the gentleman was declared a non smoker on his policy, and the quote for his insurance premiums halved.
Also don’t be afraid to negotiate the amount of coverage, because you can find that the more you buy, the better value it is. For example if you bought $240,000 worth of insurance you would pay $278 per year in premiums, but if you went up to $250,000 of cover you would pay just $260 per year. Each insurer has their own tiered system, so take the time to discuss your options and your situation.
Additionally, its now very quick and easy to compare life insurance premiums online with financial comparison websites such as Life Insurance Finder. Don’t waste a whole afternoon ringing around when you can easily compare prices online with the click of your mouse.
Kristy Ramirez writes for Life Insurance Finder where she helps people to compare life insurance quotes and select the best policy to meet their needs at the best possible price.
Insurance: A Guide
"Remember kids, I have life insurance" - Adam Savage
This is a guest article from Tatyana Levin
These days one must be financially savvy. Money is not easy to come by and should be managed carefully. With the availability of tools that make it easy to keep track of current events, the stock market, and even your own money, it would be almost a crime to not utilize these tools to make the best and most informed financial decisions. Unfortunately, the more there is, the more there is to keep track of. This applies both to tracking tools and money (the small curse within the comfort of having money to keep track of).
The savvier ones of us dabble in investments, and the savviest make their living that way. The key is that they know what to invest in. Not magically, of course; investors do a significant amount of research to learn how to optimize their portfolios, but they have the understanding.
A grossly overlooked investment is insurance. This may be because is not typically referred to as an investment with the exception of whole life insurance that has a specific investment component within it. Webster’s defines the word “invest” as a commitment of money for a return and “insurance” as a guarantee. This makes insurance the safest type of investment, because your returns are guaranteed. But returns are not always financial in the case of insurance. They can be, if there is an unforeseen accident, but the most certain return is the feeling of security.
Now there are many different types of insurance, and what you need depends on your current situation. Obviously you only need auto insurance, found using auto insurance leads if you have a car, and you only need renter’s insurance if you rent and have possessions that you would need insured. Insurance is for those who have something to lose. With an attachment to something, either emotional of physical (or dependence, not like physically being glued to your car), comes the fear that it will be damaged or ruined in some way. For example, if your house caught on fire, you would be devastated. What would add insult to injury is not having a way to recover from this horrible disaster.
These types of examples are not unique to this article. That is the way that insurance is sold. As they say that clichés are clichés for a reason, insurance is promoted this way for a reason. The foundation of the concept of insurance is uncertainty, and it is the same uncertainty that is conjured up when investing.
The main difference between insurance and investment is that not having insurance creates a feeling of uncertainty while investments by nature are uncertain. Therefore, investing in insurance creates security and is the only secure investment that exists (and is legal). Getting insurance should be one of the easier financial tasks if you apply all the resources available with technological advances like smart phones.
About the Author: This article was written by Tatyana Levin, a copywriter for InsuranceFiles.com
No comments:
Post a Comment