Posts Tagged ‘saving’

Life insurance, specifically Term Life, is arguably one of the best values in the entire financial services arena. Where else can you go and get hundreds of thousands of pounds in protection for literally pennies per day? Rates for Term Life insurance remain at all-time lows, and now is the time to lock in the best prices. Here are some ways to help you save money when purchasing life insurance.

Buy when you’re young. Although your financial needs may be lower at a younger age, the rates are also substantially cheaper when you’re young. Remember, the goal is to cover your primary assets (like your salary and house) so that if something were to happen to you, your beneficiaries would be able to persevere financially. The best advice is to lock in as much protection at a young age while your health and prices are still good.

Your “half” birthday could be costly. While some companies raise their prices based on your actual age, most companies increase the price of their policies six months before your birthday. It’s a term called “Age Nearest” in the industry, and that half-year price increase could really add up over a 20-year term policy.

Buy before any major health issues arise. Healthy people have the best mortality risks and thus are much cheaper for companies to insure. This translates into lower rates for the “Super Preferred” customer than someone with higher risk factors such as a heart condition, cancer or diabetes. Conversely, if you were unhealthy when you acquired your policy, and your health has now improved, it might be time to shop for a new policy, as your rates are likely to be lower.

Select the right length of coverage. Everyone has different needs, and not one size fits all when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement.

People who are trying to quit smoking, for example, might be best suited purchasing a shorter term (and then replacing it with a longer term policy when they qualify for non-tobacco prices). Lastly, individuals who have 30-year mortgages might want to consider a 30-year term to ensure that the house is protected throughout the period of the loan.

Check for price breaks. Companies often offer “price breaks” at certain coverage amounts (i.e. £250,000 vs. £225,000). The truth is that many people can actually pay less money for more coverage. Check how much or little your prices increase when you increase coverage to £250,000, £500,000, or £1,000,000.

Buy the right amount of coverage. Many agents may try to sell you more coverage than you need. The purpose of life insurance is to “indemnify” (replace financial loss), and what most people should be looking for is income replacement for their beneficiaries. Independent financial planners recommend the following rule of thumb: purchase an amount of coverage equal to 6-10 times your annual gross income.

The right hobby with the wrong company could cost you. People who participate in high-risk sports or activities (such as hang-gliding, skydiving, mountain climbing, scuba diving, and racing), or even those who like to have an occasional cigar could very well pay more money if they don’t pick the right company.

Every company looks at risk factors differently and some are more liberal in certain areas than others. Make sure you work with an insurance company that has properly matched your personal profile with their underwriting criteria.

Work policies aren’t always the best deal. . Work policies are often based on a composite profile of the employees you work with, many of whom may be less healthy than you, or have other underwriting factors that might drive up rates.

These type of policies also expire if/when you leave the company. Inexpensive term life insurance polices that cover your dependents until they can live comfortably on their own are often a better alternative.

Check out your payment options. Many life insurance companies offer discounts to consumers who pay their premiums annually.

Review your policy often. Do a review of your life insurance policy a minimum of every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating more or less protection. If you are replacing a policy, make sure you allow enough time to get your new policy in place so coverages won’t overlap or lapse.

Don’t overspend on protection. Term life insurance is the most affordable and cost-effective pure protection available, and it is typically much less expensive than a comparable whole life policy. The old axiom still rings true: “Buy Term and invest the difference.”

When it comes to reducing your debt, settlement may be an option.

If you need some extra help taking care of your debt, you may have been considering bankruptcy. Filing bankruptcy is a life changing situation and what you may not know is that there may be a better alternative. Debt settlement provides you with an option to pay back your debt for much lower than what you originally incurred.

Aurora Lillo Editor of the “Best Debt Settlement Companies” website — http://www.BestDebtSettlementCompanies.org — pointed out;

“…When you use a settlement firm you will have experienced debt negotiators on your side. This can help you to get your debt reduced considerably. Once your debt is reduced, it may help you to feel as though this debt is finally manageable. You will then be able to attack this debt and once it is paid off, you can move on with your life…”

You will want to find out how much any settlement agency charges for their services. Many people get really nervous when asking these kinds of questions and it can be very intimidating, but it is extremely important to find out how much you are going to pay for the service and if any other costs are expected to arise. This can save you some disappointment later if you know what is going on, and what to expect.

One of the other ways you can save money using a settlement counselor is that this team will help you eliminate any late fees you may have acquired if you have been unable to pay your debt. This can help eliminate some of the money you have to pay in the end and promote your confidence about paying your debt. Interest rates can also be lowered and this can provide substantial relief to your personal debt.

“…Settlement of your debt is a great alternative and if you find out many things such as cost to you and many other things, you can be one step closer to fulfilling your obligations. Once you settle debt, you will quickly be on your way to financial freedom…” added A. Lillo.

Further Information By Visiting; http://www.BestDebtSettlementCompanies.org