Will High Insurance Premiums Hurt Your Retirement Plans?
During our working years, most of us allocate a big percentage of our budgets to insurance bills. The cost might be justified, but it can be a huge part of our monthly budget. High rates can make it hard to get ahead on other bills, and it may even hurt your retirement plans. Are there some things you could rethink about the current way you get insurance?
Is your insurance budget making it hard to reduce debt or save for the future? If so, you will need to analyze your policies and make sure you are getting a good deal for the coverage that you do require! It is pretty easy to get insurance quotes to make sure you have a good deal. It will be harder to decide what kind of coverage you should have!
What Kinds Of Coverage Do Retired Folks Need?
Retired people, those planning for retirement, and the population in general all have very different needs. Life insurance over 65 may be very different than life insurance was at age 40. You will probably want to consider medical, car, home, life, and nursing care. These are probably a lot of the same types of policies that non-retired people buy. Retirement annuities are another life insurance product, and they may fit into your retirement plans as well!
Will You Be Over Insured During Retirement?
If you worry about your insurance budget while you are still working, you will probably be more concerned about it when you retire!
As you get older, your needs will change. The three million dollar life insurance policy may have seemed like a good idea when your kids were young, you had a big home mortgage, and your spouse stopped working outside the home. Your true needs may have changed a lot over the last few years. If your children are on their own, and your home mortgage has been paid down, you may have less need for coverage..
Consider evaluating your true retirement life insurance needs. Life insurance over 65 may be quite different than life insurance for younger adults.
You may find that you would be better off by reducing the coverage. This could also reduce your premium bill! You may be able to cut the coverage on your present policy. If not, you may be able to terminate that policy and get a smaller policy. Premiums may be more expensive for older people. If you can reduce your life coverage, you should be able to lower your premiums too.
Will you need nursing care insurance? We should all make some plans for nursing care. You may want to purchase a nursing care policy, or you may find that an alternative will work just as well. Many life insurance policies have a clause so that the owner can take some of the proceeds from the policy while he or she is still alive in the case of a severe illness. This type of policy rider may be what you need?
Health care needs will be a primary concern too. You may want to pay for a supplemental policy, but you may be fine with an Advantage plan. Many of these new Medicare Advantage plans have no additional premium. They can allow you to save your money for your other needs.
I am certain that you will still find that you will need to pay for some insurance. However, you will probably be wise to figure out what you really need, and then how to get the best price for it. You buy insurance to protect yourself from big risks, but you should not buy so much insurance that you cannot save for other things!
Tags: retirement
Is Your Home Insured Against Floods?
Your Homeowners Insurance Policy May Not Cover Floods!
The Insurance Information Institute (III) says that less than 1/5 of homeowners actually are insured against floods. Yes, these responsible home owners do have a home policy, but floods caused by nature may not be covered! We are entering hurricane season on the gulf coast, but floods are not just a concern for people who live by large bodies of salt water. Melting snow and flooding rivers also cause a substantial amount of flood damage to homes.
In fact, the III says that 4/5 of natural disasters do involve flood damage. While your policy may cover you if your plumbing leaks, it may not cover damage from flood waters that come from a storm or melting snow.
The national flood insurance program provides coverage for:
- The actual structure of your home.
- The contents of your home.
Flood Damage is NOT Typically Covered By Basic Home Policies!
This type of flood insurance is not typically covered by a basic home policy. Your insurer may be able to provide excess flood insurance though, if your needs are greater than the limits of the national program. You may also ask your own agent about this program. You can also get more information here: http://www.floodsmart.gov/floodsmart/
Tags: flood insurance, floods
Safer Teenage Drivers Mean Lower Car Insurance Premiums
Teen Drivers - Safety Equals Cheaper Auto Insurance Rates
Have you had to help your own teenager become a safe and legal driver? I think that this is one of the hardest things we have to do. The process is not always easy though. Think about some of the steps you can take to ease the process!
A major issue is the cost of teenager car insurance today! Car insurers will view teen drivers as high risk drivers. Teen drivers have not been able to build a good driving history. Teens may also be considered more impulsive and less experienced. It can be a big shock to see how much rates rise when a younger driver is added to a family auto policy!
This affects teens. Even younger adults get higher rates. One way to deal with it is to shop and compare. Some companies will set the rates a bit lower to attract business. If you also insure your home and other drivers, you may be able to find better rates.
One easy way to figure out where to get an affordable rate is to compare insurance rates with an Internet quote form that lets you get rates from more than one company!
The steps you can take to make your teen safer may also help you find cheaper rates. Driving classes and auto safety features are some good examples. A few discounts can add up to big savings.
Tags: teenagers
Are You Trying To Do Without Medical Insurance?
If you live in the US, and you are without health insurance, it can be a big worry. One trip to the emergency room can end up costing hundreds, or thousands of dollars. Hospitals have to treat people, but they are also likely to bill you. However, there is no reason you cannot look at your alternatives. If you have no medical insurance, it is best to consider your options before you need to use them!
If you do need urgent care, and do not have a health plan, a lot of hospitals have staff that is trained to help you. If you need medical attention, do not hesitate to stop at the emergency room either.
One good resource can be your own US state insurance department. Even many federal programs actually work with the states, and you apply for help at the state level. Others, like risk pools, can vary a lot from state to state.
They may direct you to state/federal programs like CHIPS or Medicaid, the high risk health plan, or other state, county, federal health systems.
Another great place to seek help is the website – PPARX.org – it was developed to help people afford prescription medicine. However, this organization has evolved to be a place where you can find lots of financial and medical help if you cannot afford other health care.
And finally, if your job does not provide group health benefits because you work for a small company, are employed as a contract worker, or are self employed, you can always look for private health insurance. Many insurers provide individual plans for people without group medical plans.
Plan Ahead For Health Care
The right time to figure out how you can afford medical care is before you have a health problem. Look into your alternatives in advance so you can feel secure in the future.
Tags: health insurance
Do You Want To Find Cheap Term Life?
Cheap Term Life Deals Online
We already know that when we just think about life insurance, term policies can give us the most bang for our buck. Since a pure term policy has no savings and asset value, but is just coverage, the cost per dollar amount of coverage is cheaper than whole or universal life policies.
But just because we are discussing the purchase of a pure life policy, does not mean that policies are all alike. You can still compare different insurers to make sure you get the best term life insurance in the US for you and your family. What does that mean? It means that insurers are different in the way they calculate rates for different types of applicants. So you will be well served by comparing different companies to see who will give you the best deal.
The cheap life insurance policy for your brother or your Aunt may not be the one who offers you the best rates!
Compare And Save
Of course, we think that starting with online life insurance quote forms is a smart move. Answering a few simple questions gets you hooked up with insurers who have asked for clients like you. They also give you contact information for local representatives and professional agents who represent these companies.
We find a yearly premium difference of hundreds of dollars by comparing the top 10 largest life insurers in one area for one particular 40 year old man. A few hundred dollar difference adds up to thousands of dollars of savings over the whole length of the policy contract!
Take Advantage Of A Competitive Market To Get Cheaper Life Insurance
It would be a boring world, I guess, if there were simple answers to questions about which company is the best for everybody. In our society, we get to enjoy a lot of competition. You can take advantage of the free market to make sure you get the best deal from one of the top companies.
Tags: cheap
Financial Problems, Damaged Credit, and Auto Insurance
It may seem totally unfair. Just when you are struggling with financial problems, late payments, and maybe a loss of income, your credit score could suffer. This means that you will have to pay more money for lots of things you need to make your life comfortable.
You probably know that you will pay more for any loans you want to get. You may even be declined for loans. Did you also know that you could pay more for auto insurance, and some companies may even decline you for that?
While it may not seem fair, insurers have made a case to state regulators, and many of these states have given them permission to use your credit rating as one way to predict risk. A poor score can raise your insurance rates by 20% or more.
How can you deal with this problem of poor credit and higher insurance costs?
- Of course, you want to try to fix your credit. A better score will make your life easier in multiple ways. However, I understand that this can be a long term goal, and while you can do some things to improve your ratings right away, some things can take months or years.
- Try to shop for insurers who do not weigh your score as much as they do other things like your driving record or discounts you may qualify for. For example, a 20% increase for poor credit could be offset by a 15% discount for having multiple policies with the same company!
- You may consider raising your accident deductible. Just keep in mind that this also means you are raising your out of pocket expenses if you do have an accident. However, if you can find much lower payments, and can use the extra money to save for an emergency, you could be much better off in the long run. Just by adjusting your deductible from $250 to $500, you can save quite a bit. If you can make do with a $1,000 deductible, you can save even more!
- Do you need comprehensive and collision insurance on your older vehicle? If your vehicle is already paid off, and the book value is less than a year’s worth of premiums plus your accident deductible, this may be a good decision. Remember, an insurer can “total” your car if the damage is more than the book value of your vehicle. This is another one of those things that may not seem fair, because you cannot really replace your vehicle, but it is something insurers have the right to do.
- Shop for the best deal for you. This is good advice if you have great credit or poor credit. It used to be tough to call around to get multiple quotes, but today’s Internet quote forms make it really simple to get competitive quotes from your computer.
Do you have to pay a lot for your car insurance because you have had bad credit? This is an unfortunate situation, but you can manage the situation with a little bit of effort. Your effort can save you hundreds of dollars a year, and that money can be spent repairing your financial life!
Tags: bad credit
Is Long Term Care Insurance Cheap?
Cheaper Deals On Long Term Care Insurance
We are not advocating cheap long term care insurance (LTCi). We are suggesting that you can choose certain options that will lower your real LTCi premiums in several ways.
If you are not familiar with long term care insurance, also called nursing care insurance, these policies are a type of health insurance. However, the cover things that regular health insurance policies, including Medicare, do not. These are, as the name implies, long term skilled nursing care or living assistance. This could be, depending upon coverage, in a nursing home, assisted living facility, home health care, etc.
- Payout Options - You can choose between an indemnity and expense plan. When you purchase LTCi, it will have a daily payout amount. An indemnity plan will pay you the whole amount regardless of how much you actually spend. The actual expense payout will only pay the amount you spend, up to a daily limit. This encourages you to “shop” for services, and will also extend the lifetime maximum benefit if you spend less than the daily maximum.
- Tax Qualified Plans - In the US, some long term care insurance plans are tax qualified. This means that the premiums can be deducted from federal (and sometimes state) taxes. So the actual price of the policy is less than the amount you pay because you enjoy tax savings. There are of course, rules and limits, and they change all the time. You should consult the IRS website or a tax professional.
- Elimination Periods – All LTCi policies will have elimination periods. This is the amount of time you have to receive services before the policy starts paying. The longer the waiting period, the lower the premium. If your existing benefits, like Medicare, already pay for short term stays, you can wait until that ends. So adjust your waiting periods to work with other benefits.
Compare Plans And Policies For The Cheapest Rates
Like any other health insurance, your age, health, and location will also affect your rates. All companies have their own way of assigning rates to applicants. It is best to shop around for the company and type of policy that suits your needs the best.
Keep Grandpa and Grandma Safe!
I have been happy to notice a lot more concern about safe driving for older people lately. Some studies have concluded that many drivers in their seventies are as risky as drivers in their teens. However, there are things we can do to make driving safer for older people.
Newer cars come with some amazing safety features that can help protect the older people, passengers, and other drivers. They may also help an older drive find cheaper car insurance quotes because of safety discounts that insurers offer. If you are in the market for a new car, or even a recent model used car, consider these options to help protect everybody.
Safety sensors are actually equipped with radar. They senses when other vehicles are close to the vehicle, and it also can judge the speed these other vehicles are moving. There may be warning lights or automatic braking. This system has already helped many drivers avoid accidents, and possibly it has already saved lives. This is newer technology that almost seems to come out of science fiction, but it is on the market now for people who can afford to purchase a new car that comes equipped with it.
Backup monitors have cameras that are installed in the rear of the car. Instead of just using the rear view mirror, which has limited vision, a driver can check a monitor to make sure there is nothing behind them. This is especially useful for people who have a hard time twisting around to look behind them to see things that do not show up in the mirrors.
Auto safety technology is fantastic today. But nothing can replace a safe and educated driver. There are new auto safety courses that have been developed with senior citizens in mind. These safety refresher courses may, indeed, teach an old dog some new driving tricks. In addition to making them safer drivers, the courses may also help them get a car insurance discount.
Some seniors should really not be driving. If you, or a person you love, cannot cope with the road any more, it may be time to counsel them about other forms of transportation. If you are lucky, the older person will know when it is time to hand in the car keys. Most of the time, it is just not that easy. You may need to get some help to convince grandpa to give up his beloved car.
Be sure to provide alternative transportation suggestions. Offer rides.yourself, or see what sort of senior transportation exists in your community. Many faith based organziations, foundations, or city bus services have special ride services for the elderly. Some Medicare health plans offer transportation to and from health appointments. This may seem like extra trouble, but it would be well worth it if you can keep other people safer.
Auto insurance rates may be higher for older drivers too. As I mentioned before, some of these safety features and drivers education courses should help because many insurance companies will offer a discount. They want to encourage customers to be safer on the road. The best way to find cheaper car insurance is to compare prices from multiple companies to see what they can offer you. You can start looking for auto insurance discounts right now!
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Tags: older drivers, safety features
Which Cars Will Be Cheaper To Insure In 2011?
If you want to buy a new or used vehicle in 2011, you need to consider more than just the total sticker price or
Not Cheap To Insure - 2011
your monthly loan payments. One large, fixed cost will be the cost of proper vehicle insurance. Of course, the premiums will differ by many factors. Some of these will have more to do with the location, way the car is used, and the driver than the actual make and model of the vehicle that is being covered. However, some cars, or types of vehicles, are cheaper to insure than others.
For Each Vehicle, Car Insurance Companies Consider:
- Costs of Repairs. Common cars, with convenient and more affordable average repairs, will usually cost less to cover.
- Claims History. Some vehicles are just more likely to be targets for theft or more likely to be involved in expensive accidents.
- Safety Features and Overall Safety Design. Many people think that large and bulky vehicles will be safer. Actually, the design of the car matters more than how many tons of steel went into the construction.
- Typical Driver Behavior. This one is tricky. Note that many of the large insurers have hybrid vehicle discounts. This is not because hybrid cars are safer than traditional cars. It is because the behavior of typical hybrid vehicle owners suggest they are more likely to avoid accidents and claims.
2011 Winners!
The vehicles tend to top the winner’s list as the cheapest vehicles to insure. If you consider the important factors that were listed above, it should not surprise you that much. Minvans took the top spots! These tend to be family vehicles, and are probably operated by low risk drivers who may be parents who are concerned about the safety of children. In addition, the manufacturers want to appeal to people who are concerned about family safety.
- Chrysler Town & Country
- Toyota Sienna
- Toyota Sienna LE
- Honda Odessy LX
- Nissan Muano SL
Which Cars Are Expensive To Insure in 2011?
Just in case you were planning on buying a high horsepower sports car, be aware that they usually tend to come with higher insurance bills.
A Mercedes SL65 AMG will probably provide a lot of driving excitement. It can move from 0 to 60 in a little over 4 seconds and have you breaking all sorts of laws by getting to one hundred and twenty miles per hour in under thirteen seconds!
But insurers will consider that risky, and will be likely to charge you about three times as much to cover it as they would a highly rated, sedate mini-van like the Chrysler Town & Country.
Related : What Makes A Car Cheap To Insure?
Tags: 2011, cheap to insure, expensive to insure
Should You Buy Term Life?
If you are shopping for a new life insurance policy, one of the first things you have to decide is which type of life insurance you want to purchase. Term policies get pushed a lot because they are generally much cheaper than whole or universal life. If a temporary policy suits your needs, and you only want coverage for a specified amount of time, then choosing term can be a frugal decision.
But I urge insurance shoppers to think about their long range plans and the reasons they want to purchase life insurance before making a decision.
What Is Term Life?
Is Term Better? Go Figure!
This policy is temporary, even though the contract could last for decades. Some common lengths of coverage are 10, 20, or 30 years. Once the contract ends, a straight term life policy will be used up. If you are lucky enough to survive the policy, there will be no cash value left. You have spent your money for pure insurance coverage so your beneficiaries could collect a death benefit if you pass away.
What About Whole Or Universal Life?
These are considered permanent policies. They will remain in force as long as they are paid for or paid up. Part of the reason they cost more is that the insurer is taking a bigger risk that they will actually have to pay a death benefit. They can also grow a cash value. These policies may be borrowed against, cashed in, or used in a life settlement. Beyond providing pure insurance, they can also be used as an asset.
Is Term Life Insurance Better?
You have to find the policy that is better for you. There is not one right answer that will apply to everybody.
- Term premiums will be cheaper for the same amount of coverage. This means you can afford to purchase a higher death benefit.
- Because the cost is lower, people may purchase term to cover larger amounts that have an expected end date. Purchasing a 20 year term policy while a young family is paying off a 20 year mortgage is one common example. Others may also buy a 30 year policy when kids are young. They figure that by the time the policy ends, the kids will be on their own, and they will also have built up savings.
So there is no doubt that term is better for some people.
Term Life Disadvantages
The disadvantage is that the policy will end, and then the insured person must either go without life insurance or seek a new policy. Since time has passed, and the policy owner is older, the insured person may have to pay a lot more for coverage or risk getting declined.
How To Choose The Right Life Insurance Policy
- First, think about the reasons you want to buy a life policy in the first place. When you write down these reasons, it will make it a lot easier to decide which type of policy will help you the most.
- Decide how much coverage you really need to help protect your family. If you want to cover your $250,000 home mortgage and finance the education of your kids, term premiums will be much more affordable.
- Sometimes the right answer is to mix more than kind of policy. You may want to buy a larger term policy to cover your needs now, but also purchase a smaller permanent policy so you will be covered in the future.
A cheap life insurance policy may give you the protection you need. It will also allow you to afford more coverage. Then compare quotes. Some insurers cost less for different types of applicants. After you figure out which type of policy to buy, how much coverage you want, and how much it will cost, you may have to adjust your purchase to fit your budget.
Tags: compare quotes, term life
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