Insurance World

We’re not being insensitive, honestly! We’re talking about your last gasp of smoke – have you given up smoking recently?

Did you know that smokers paying up to 60% more for their life insurance cover compared to non-smokers. So, besides the health dividend and the money saved on cigarettes, insurance companies will chip in with lower life insurance premiums. And the insurance savings aren’t to be sneezed at! A typical policyholder could save at least Ј10 or more per month.

With most insurance companies, you qualify for non-smoker premium rates if you haven’t smoked or otherwise used nicotine products, within the last five years. Now five years is a long time to wait for the extra spending money if you’ve only recently given up smoking. However, people in the know have pointed out a way to speed things up.

They point out that some insurers have adopted a more relaxed definition of a non-smoker. Some insurers have shortened the 5 year smoke free period to just twelve months. So if you haven’t smoked for a year, find out how much you can save by moving your life insurance to one of these insurers. But be careful. You must never cancel your existing policy until you’ve received written acceptance from the new insurer.

How do find the right insurer?

First go onto Internet because that’s the best way to find cheap insurance. Then search for a life insurance broker that fulfils three criteria:

The broker must search the whole insurance market for the lowest price – this means that they will find the cheapest insurance company for you.

The broker must be prepared to discount the prices – they achieve this by rebating some of their commission back into your policy. That ensures you get a really cheap quote.

They’ll phone you with the quote and provide further help – this is essential as the chances are that the price they will initially phone you with, will be from an insurer using the a five-year smoking definition. You have to tell them that you need the cheapest quote from a company using the twelve-month smoking definition . That means they’ll have to call you back after doing some digging.

If you use a web site that provides an immediate on-screen quote, you won’t know whether the quote provided comes from an insurance company that uses the 5-year or 12-month smoker definition. Online systems never tell you. That’s why you need to be able to speak to a life insurance adviser on the phone so you can explain what you need. Of course, to be able to be able to make a direct comparison with your existing policy you need to get a quote on an identical policy that terminates in the same year as your existing policy.

Once you’ve got the right quote, you’ll be able to see much you’re likely to save. So if the price looks right, make a full application.

One of the main aspects that will affect your premium is your age. Therefore, if your existing policy was bought some years ago, the savings could be less than the 60% we have indicated. However, life insurance is one of those things that’s become cheaper over recent years - so until you get the figures in front of you, the savings are hard to predict. You’ll just have to get a quotation and find out! As all the brokers we know are only too pleased to provide free quotations without any obligation, you’ve nothing to lose and possibly lots to gain.

After finding a cheap quotation from an insurer with the 12-month smoker definition, you’ll have to complete a full application form. Be sure to read every question carefully and answer all the questions fully and honestly. Far too many people try to ensure they qualify for a low premium by being “economical with the truth”. Don’t be tempted. If there is a claim, the insurer will recheck the information you provide, even if it’s many years later.

Over the last few years insurance companies have become more choosey about whom they accept on standard insurance terms – that’s the first price you were quoted. The company’s selection rules about health and weight have become far tougher resulting in more clients having their premium loaded. That’s why you must not cancel your existing life policy until you’ve got a final acceptance notice at a price that gives you the savings you’re looking for.

Whilst the process to switch a policy may sound a little daunting, it isn’t really too bad. Just think of the money you’ll save! Just reward for the stress of giving up smoking.

Best of luck.

Medical costs are rising by the day. The trend in the United States is towards individual and family health insurance and corporates and employers are unwilling to provide group health insurance to their employees.

There is no doubt as to the importance of a health insurance. An accident or a severe illness may cripple your financial well being as also your physical and emotional well-being. The cost of family health insurance is also on the rise. However if you cannot afford a long-term family health insurance plan you can opt for a short-term family health insurance plan to tide over your financial commitments and at a later date buy a long-term family health insurance plan.

Family health insurance plan is beneficial in many ways. It costs less than individual health insurance plans. If your spouse is provided health insurance cover by her/his employer then you can opt for a group insurance which will come at a very marginal increase in the premium. There are few issues that need to be studied carefully before purchasing a health insurance plan.

There are two types of family health insurance plans.

Indemnity. It provides a broader choice of doctors and hospitals. However you have to pay the bill yourself and later claim from the insurance company. The company cuts the deductible and refunds the rest. The company pays at a set rate called usual, customary and reasonable rate (UCR) for any medical service taken by you.

Managed Care plans. In these plans the insurance companies have tie-ups with doctors and hospitals for providing medical care at a discount rate. So you do not have the flexibility to go for your preferred doctor or hospital. If you opt for going to your doctor or hospital you have to pay the deductible and pay the bill yourself and claim later. However if you use the available service you don’t have to pay. The doctor or hospital will claim money on your behalf.