Insurance World

Term life insurance is basically a “no frills” type of life insurance. It is a life insurance for a specified duration limit, or time. You buy a specific amount of coverage for a specific time period by signing a contract. You pay for that coverage period and at the end of the term the policy expires. For example, the term might be until retirement, or until children are grown, or until college is paid for.

Term life insurance is the least expensive available insurance policy and allows you to spend a lot less and use the extra money in a better investment. It does not build up cash value and the premium normally increases as the policy owner gets older. Usually term life insurance covers
a specific term such as term of 1year, term of 20 years or term of 30 years.

If you die while the policy is active, term life insurance provides a stated benefit for it; and your survivors will be paid the agreed upon amount. However, the policy does not provide any returns beyond the stated benefit and once the policy expires, the insurance coverage ceases and the insurance company keeps the money. Some term insurance policies give you the right to renew at the same rate for multiple years, while others do not. The former are generally a bit more expensive.

Term life insurance is most suitable for you, if you are:

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in need of coverage for a limited period of time,
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young and looking for lower premiums,
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buying a home or car, where the financial burden of a loan will disappear in time.

Term life insurance policies must be renewed when each term ends. Before buying a term life insurance policy, you should ask about the renewal provisions for the protection of your future insurability. There are some typical choices:

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Annual Renewable—–the premium go up each year.
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Level Term—–the premium stays the same for specific period like 5, 10, 15, or 20 years, then increases sharply.
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Automatic Renewable—–you’ll have to pay more for this feature.

Some other options on term life insurance policies may include:
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Re-Entry - it requires a lower premium than an automatically renewable policy. You can renew at the same low rate offers to new customer; but you’ll have to pass a physical examination. If you’ve developed any health problems, your premium could go up and cost more than an
automatic-renewable policy.
•
Convertable term - you’ll have the option to convert to a whole life insurance policy in later years.

We all hate doing it, but it’s something that we all must do at one time or another… the wonderful task of shopping for car insurance quotes!

Since there’s no avoiding it, you might as well learn a few ways you can save money in the process. Here is a compilation of the top tips you can use to make sure you never overpay for your car insurance premiums…

1. Search for quotes regularly - Many people inadvertantly pay the same premium for years without ever shopping around. As your vehicle ages, it depreciates in value. You shouldn’t pay the same premium on an older vehicle as you would on a newer one… think about it! It’s generally good practice to do a quote search on a yearly basis, but the more often you do it, the better chances you have of getting lower rates.

2. If you have an older vehicle, consider “liability only” insurance - When making a decision like this, you need to consider the value of your vehicle compared to what you’re paying for your premium. If your vehicles wholesale value is, say $1000, why pay almost that much per year (give or take) when that is all you will get from your insurance agency… if you total your vehicle?

3. Take a defensive driving course - A simple 6 hour defensive driving course can save you up to 10% on your insurance premium. Contact your local department of motor vehicles for information on taking this course. Many times, you can also take this course by mail, by video, or even online!

4. If you have more than one vehicle in your household, insure them with the same agency - Most insurance agencies will knock a huge percentage off of your premium for multiple auto insurance policies.

5. If you also have life, home, fire, boat or any other type of insurance, use the same agency - As with having multiple auto policies, most agencies will knock a huge percentage off of your premium for multiple policies.

6. Increase your deductible - The higher the deductible you choose, the lower your premium will be, so set your deductible at the highest rate possible… just make sure that if you were to need the insurance you would be able to cover this deductible.

7. Maintain good credit - Insurance agencies, just like any other business, like to be paid… and on time. A good credit rating will lower your premium.

8. Think like an insurance agent - Insurance agencies base their rates foremost on one thing… risk. The more at risk you seem to be, the higher the premium will be, and vice versa.

When talking with an agent, give them reasons that you are at a lower risk, ie: you have a safe vehicle, you have a clean driving record, you don’t use your vehicle for work purposes, you don’t travel often, you’re vehicle has anti-theft devices, you park in a garage, etc. A good idea would be to make a list of why you’re at a lower risk before you even speak to an agent. Be creative!