Posted on Wed, Nov 28, 2012
Life insurance is one of the most valuable products that you can buy to protect your family, loved ones, and business. An insurance policy will help ensure that those closest to you will be provided for if you are no longer around to provide for them. A life insurance death benefit will help replace the income that is lost due to your passing.
Life insurance is important for every person, but there are some specific reasons that men should consider purchasing a policy.
Men Have Shorter Life Expectancies
On average, men do not live as long as women. According to some of the most recent data, women outlive men by an average of almost five years. If you’re a married man, this means that you are likely to die before your wife. A life insurance policy will help provide money for your wife to live off of in retirement or to help pay off debts from the funeral or a mortgage. If you have children, life insurance can help them seek higher education or help set them up financially as adults.
Consider Life Insurance If You Have a Stay-At-Home Wife
Your loss will be particularly hard on your wife if yours is the only income. She will be forced to find a job to provide an income for herself and any children. The death benefit from a life insurance policy would help make this transition easier. It would allow your wife to pay off a mortgage or other major debt. It would also allow her to more easily find childcare and pay for food and other essentials until she can find employment. You took a vow to help support your wife. Life insurance is a way to continue this support no matter what happens to you.
Even Single Men Need Life Insurance
Even if you are single with no children, you should at least take the time to consider life insurance. A carefully selected policy can do more than protect a spouse and children. When you die, all of your debts must be accounted for. This often falls to close relatives, such as parents or siblings. Many of these people are already dealing with debts and financial obligations of their own. They may not be able to safely absorb yours as well. A life insurance policy will help ensure that your debt will not burden anyone else.
If you own a business, a life insurance policy will help keep it viable after you are gone. This can include protecting the jobs of your employees and the livelihood of any partners. You work hard to start and run a business. Buy a life insurance policy to make sure that it will be an ongoing part of your legacy.
If you are a man who doesn’t have life insurance, now is a great time to shop and compare life insurance rates online.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, Nov 26, 2012
As we’ve stressed repeatedly in this space, term life insurance is an excellent way to protect your family. It usually offers the most coverage at the most reasonable rates.
However, by its very nature, term life insurance will expire. This usually occurs after a term of between 10 and 30 years. When a term policy expires, the policy holder is faced with a few options of how to proceed. Below you will find a guide to how to respond when your policy reaches the end of your term.
Evaluate Your Needs
It is time to take a close look at your situation and carefully consider your needs. By the time their term policy expires, many people have paid off most or all of their major debt and are nearing retirement. Their children are adults or at least nearing adulthood. If they have saved wisely, they have enough money to make it through retirement and they no longer need the income replacement that life insurance provides. In these situations, it is not uncommon for people to allow their coverage to lapse since it is no longer deemed necessary.
For those who find themselves still in need of insurance coverage, there are options.
Shop for New Term Life Insurance
If you are in good health, you may decide to apply a new term policy. To do this, you will need to regain approval. This usually includes passing another medical exam. The price for a term policy later in life is usually higher, but many people find this cost offset because they do not need as large of a policy.
You do not have to buy from the same company that you had your first policy with. So, don’t miss the opportunity to compare term life insurance rates and policies.
Convert to Permanent Life Insurance
You may have the option of converting your term policy to a permanent one at the end of your term. These permanent policies have the advantage of usually being offered without a medical exam. However, they are often much more expensive than term options. Many term policies will only allow you to convert to permanent during a certain time period. Be aware of this period when you purchase your initial insurance.
If your term policy ends and you find yourself not in good enough health to shop for another traditional term policy or you are past your window to convert to a permanent policy, there is still hope. You may apply for a term policy without a medical exam. These still require a medical questionnaire and will cost more if you are approved.
For many people, the end of their term policy is a great opportunity to live without insurance or to renew. If you are nearing the end of your term, Efinancial can help you understand your options.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sat, Nov 24, 2012
Consider what would happen to your business if you were not there to run it. If you are the sole owner of your business, there is a good chance that the business would dissolve without you. Everything that you have worked your entire life to achieve will most likely disappear. All of the employees that rely on you to make a living will be left without employment.
If you have partners, are they prepared to financially to run the entirety of the business without you? Will your family be forced to sell your share of the business to help make ends meet?
You may already recognize the importance of life insurance to protect your family and loved ones. What many people do not realize is that life insurance is absolutely essential if you own or run a small business. Life insurance will protect your business and help ensure that this important part of your legacy will survive after you are gone.
Types of Life Insurance for Small Business Owners
Individual Life Insurance
An individual life insurance policy is primarily designed to protect your family, but it can also help your business continue. If you intend on leaving your business in the family, it can provide the finances necessary to help the business run smoothly during the transition period. Also, without life insurance many families are forced to dissolve businesses simply to make ends meet.
Key Person Insurance
This is insurance that you can take out on a key employee or partner. Imagine if one of your top producing salespeople died. You might lose all of his or her clients. This could cost you thousands of dollars even before you factor in the cost of hiring and training a replacement. A key person insurance policy helps alleviate some of this financial stress on your business.
Buy-Sell Agreement
A buy-sell agreement can be purchased with your life insurance policy. It protects a business from falling into the hands of family members that have no desire or ability to run it. A buy-sell agreement is a contract that stipulates that if a business owner dies, his or her portion of the business can be sold to a partner or another willing party at a predetermined price.
Buying life insurance for a small business owner can be complicated. There is more than just your family to think about and several available options. If you need guidance through the insurance buying process, talk to an insurance agent you can trust.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, Nov 22, 2012
Most life insurance customers are educated about the usual options for making the most out of their shopping choices, such as capitalizing on the savings costs of a Term Life policy, buying the right amount of coverage, shopping online, buying at a young age, considering different payment options, and leveraging riders. The use of riders, for instance, can really help when making a simple change to your policy. It's not always possible and depends on the change, but adding a rider(s) to an existing policy is always cheaper than purchasing a new policy.
Here are five options for taking full advantage or your policy, including a few particularly-useful riders.
1. Cash Value
If you go for Permanent Life Insurance, it might be possible to use part of the cash value to bail you out when you need it the most, depending on the details of the policy. You can sometimes borrow against the accrued cash value at anytime without income verification or collateral. So, not only is there a death benefit but it can provide a very important safety net when times are tough.
2. Conversion
In some cases, the possibility exists to convert your Term Life policy into a Permanent Life Policy, and you can sometimes make the conversion without a medical exam. This can prove a considerable life line, especially if you are diagnosed with a serious medical condition and want to keep coverage beyond the length of the current Term Life policy.
3. Living Benefits
If you, your spouse, or a family member are diagnosed with a terminal illness, you might be able to leverage the policy to pay for the cost of care. This is what is known as Living Benefits or Accelerated Death Benefits. You will need to check with your agent to see if your policy has such a provision.
4. Long-Term Care
Long-term care, such as skilled nursing care, can be quite costly and exhaust retirement funds or other assets in no time. In some cases, your policy can be used to pay for this long term care. If you have the right rider on your insurance policy, part of its value may be used to pay for long term care. The death benefit will be reduced by the amount you use.
5. Premium Waivers
In some situations, your policy can pay for itself when you’re unable. This can be accomplished with a "waiver of premium" rider on your policy. If you have this rider and then become disabled, lose your job, or incur some other serious loss of income, your premiums will be waived and your policy will remain in effect for a limited time, usually around six months.
Want to find out new ways to take advantage of different life insurance options? Talk with a professional today to discuss the possibilities.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, Nov 22, 2012
After all of the preparation and time it takes to make the best choice possible when considering Life Insurance policies, there's still a little more work to be done maintaining your policy. Don’t worry – it’s nothing too in-depth. But it's a good idea to take a look at your policy every 18 to 24 months and make sure it's the most up to date possible.
Life is not static. You change, and so do your Life Insurance needs.
You might have added another child to the family since your initial policy, for instance. Or perhaps you've reached midlife and a child has left the home to start his/her own life.
A mortgage is another big, yet common, life change. Did you recently pay one off? Or have you moved into another home? Even lesser changes than those previously mentioned present a good idea to review and revise.
Here's an alphabetical list of some things to look for when it comes to making any potential changes.
Beneficiaries:
Make sure any new members to the family are covered on your policy. Have you remarried or divorced? You will need to update and make changes to reflect your new wishes.
Coverage Limits:
Is it possible that your needs have changed since your last renewal? Do you need to add coverage? An amount that seemed like a good idea a few years ago might not be nearly enough now.
Coverage Minimums:
Do you have the right amount of coverage? There are different requirements for each state. This one could especially come into play if you have recently moved to a new state.
Master List:
How much of a chore would it be to track down your insurance documents in the case of your death? A good idea is to make a master list. A one-stop place for all-important documents. Make sure your spouse or the estate administrator knows where it to find it.
Potential Amendments:
Make a list. Perhaps your health has changed for the better or worse. Maybe you would like to compare a Term Life policy against a permanent Life Insurance policy. There could be a time when you want to learn more about exercising a potential conversion option that isn’t available on your existing term life insurance policy.
Life Insurance Premiums:
It probably wouldn't hurt to check and see if your premium payment is competitive with those currently on the market.
Make it a habit to review whenever a big life change occurs that feels noteworthy. It can't hurt and it could help in many ways.
Learn more about life insurance tips and trends at Efinancial's E-Learning Center.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
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Posted on Tue, Nov 20, 2012
Want to know a fail-safe way to find the best rate possible on a Term Life or other type of Life Insurance? Drop the excess pounds. If you are already at a healthy height-weight ratio and within the standard BMI (body mass index), stay that way. If not, get into the exercise habit now. Not only will it make you feel great, it will work wonders in other areas of your life too and can save you money on your premiums while minimizing health expenses over a lifetime.
It’s no big secret that many Americans carry more weight than recommended by health professionals. Over 125 million adults in the United States carry some extra weight, around 60 million are obese, and about 15% of them are severely obese. The issue of weight is a big concern in our country – so much so that Life Insurance companies offer considerably lower rates to policyholders who make a concerted effort to slim down.
In terms of life span and impact on health, excess weight is a critical contributor to the rising cost of providing life insurance. For this reason, it is in the best interest of the policyholder and the life insurance companies for the insured to be in the best shape possible.
And not only does that mean a longer life but a healthier and happier one.
The biggest, most immediate incentive to drop the pounds is extra money in the policyholder’s pocket. Look at the good news: the majority of people who carry excess weight are really not that far off from being able to earn lower premiums. A few pounds here and a few pounds there can be music to a policyholder's wallet.
Here are five simple ideas to help lose weight. As always, check with your physician before trying any weight loss regimen, especially if you’ve got a considerable amount to drop. Also, if you feel you have more than a few pounds to get to where you want to be, consult medical and nutritional experts on the road to success and eventual premium savings – they’ll help you get there the right way.
1. Switch out your regular drinks, especially soda and other sugar-laden beverages, for water for an entire week. It will be tough, but keeping a plastic refillable water bottle with you at all times can curb temptation.
2. Eat five to seven smaller, healthful meals each day rather than three big ones. Keep healthful snacks on hand to help resist the urge to eat larger meals. This will rev up your metabolism and burn calories.
3. Add 30 minutes of aerobic exercise to your exercise routine. Don't have an exercise routine? A brisk 30-minute, daily walk is a good way to start one.
4. Eat a small piece of fruit, such as an apple or pear, before each meal to calm hunger pangs and slow down your eating. Stop eating when you feel full. The combination of water and the piece of fruit will help you feel full faster.
5. Brush your teeth after eating. The minty-fresh feeling calms the desire to eat more. On the go? Try chewing some sugarless gum.
Learn more about the ins and outs of lower premiums based on healthy life choices by talking with a professional now!
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sun, Nov 18, 2012
In recent decades, providing for the grandchildren has led to many older Americans using their life insurance for financial protection even later in life. With the rise in single motherhood, for instance, many grandparents are now the part-time or, in some cases, full-time caregivers to young children.
Just look at the statistics. A full 53-percent of babies born to women under 30 are born to single mothers, and as many as 40-percent of that number are being born into poverty. Add in the rising cost of childcare, and it's not just a luxury for grandparents to play a greater role in caring for young children; it is often a necessity.
As older Americans take a more active role in parenting than they have in previous generations, the financial pressures have risen. Many older Americans expected to spend their post-60 years retired and relaxing. The reality is their lives are entirely different than the golden years of previous generations, as is the process of purchasing or updating life insurance policies from many years ago.
What to Look for When Buying Life Insurance
Talk with a broker about your needs and try to hold onto the policy for at least a decade. There are numerous unique types of life insurance out there, and a little research before talking to a reputable broker will go a long way.
Before counting on anything, get everything in writing. These are life decisions that will affect you and your family. Review the material. Take your time; don't feel pressured, and never sign anything you don't completely comprehend without asking for clarification.
If the language is too complicated seek out someone you trust who does and can aid your decision. And lastly, always obtain full disclosure of any new products or any changes you make to an existing policy.
To speak with an insurance professional who can deliver the solutions you need, get in touch with Efinancial today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Fri, Nov 16, 2012
Looking for a surefire way of NOT qualifying for the preferred rate on a life insurance policy? Potential policyholders who engage in dangerous pastimes are naturally a greater risk when it comes to life insurance. While it's possible to participate in these risky activities with proper care and caution, there is still a high risk of anything from bruises and broken bones to serious bodily injury or death.
There are risks in everyday life, no matter what it is you do with your time, of course. A person might easily be injured walking through their home and that same person might go skydiving 1,000 times without suffering so much as a scratch.
Statistically, however, the latter has proven, over time, to be riskier scenario.
Here's a list, in no particular order, of activities or hobbies that may place you in a somewhat higher rate class - even if you are in perfect health. If a potential policyholder wants to get the cheapest rates possible, these 10 (in alphabetical order) probably should be avoided.
1. Boat racing
2. Bungee jumping
3. Cave exploring
4. Diving
5. Flying (Pilot)
6. Hang Gliding
7. Hot air ballooning
8. Motor Racing/Sports
9. Mountain climbing
10. Parachuting
Of course, there are other avocations that could be considered for the list, including boxing, riding bulls, wrestling, cave exploration, and even widely participated-in hobbies like skiing and surfing.
Dozens more, on a varying scale, would also fall under the heading of hazardous avocations that can affect premiums but on a lesser level. For instance, snorkeling and scuba diving are not in the same “danger range” as ice-diving or deep sea diving but if done often enough will certainly have an impact. The occasional weekend surfer is not the same as a big wave surfer. Flying in a commercial aircraft is not the same as solo piloting a small plane. A day hike on a cleared trail to the top of a tall mountain is not the same as scaling the face of Half Dome in Yosemite National Park.
When applying for a life insurance policy, it is paramount to disclose information about any hazardous hobbies or activities. Withholding gives the insurer the right to cancel your policy and deny claims when relevant.
While there is no way to eliminate the risk of dangerous avocations completely, short of ceasing the activity under scrutiny, potential policyholders who participate in higher risk activities do sometimes have options for mitigating risk and getting a slightly lower premium. One option is to enroll in and complete professional training or certificate courses in the particular sport or activity. Buying and using high-quality gear and protective equipment can also help.
But eventually minimizing involvement or stopping participation altogether is the surest way to take a bite out of premiums. Keep your insurer abreast of any changes in participation.
For the daredevil who can't live without the constant adrenaline highs, there is also the option of seeking out a potential insurance carrier who specializes in policies made for that very purpose, though they often come at a substantial price.
To discuss the added risk of a particular activity or the options available for you, get in touch with an Efinancial representative today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Wed, Nov 14, 2012
One of the most difficult questions when shopping for a term life insurance policy is the question of how much insurance you need, or how long your term should be.
There is no set answer to how much term life insurance you need, but like many things having to do with insurance, the answer depends on numerous variables in a particular person’s life. Chief among them is how long you want the insured to be covered.
What are their ages? Do you want to cover a spouse? How old is the potential policyholder? How old is the spouse?
Another question to ask yourself is how long a period of time your family or beneficiaries will be dependent on you? Let's use an example of a family man in his mid-30s with children that are very young – four and seven years old.
With them, you'd like at least a 20-year policy that covers them to ages 24 and 27, as they could realistically expect to be starting their own careers at that period of time.
Perhaps this policyholder would like to make sure a spouse is covered as well - at least until both reach the age of retirement. If she were also in her mid-30s, a 30-year term would be the best fit and would take them to at least the age of 65.
Term Life is easily the most cut and dry form of protection and you can generally pay premiums by the month or all at once year and your beneficiaries are protected for the length of time you select. With so many options available, there is almost always a way to find a policy that will fit a specific time frame, needs and budget considerations.
Should something happen to you, Term Life can help provide against a loss of income, provide additional insurance while children are growing or provide even long term protection to potentially pay off a mortgage or provide funds for college tuition, room and board.
A good rule of thumb that many experts recommend is for your Term Life policy to cover 10 times your annual income for a minimum of seven years. Push that to 10 times for 10 years if you have children. Also stress, the earlier one starts a policy the lower the premiums.
To learn more about life insurance, visit our E-Learning Center.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
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Posted on Mon, Nov 12, 2012
Those with pre-existing health conditions often think a Life Insurance policy is beyond their reach. Many with self-reported pre-existing conditions have even given up on trying to secure a policy simply because of what they’ve been told; studies show that anywhere from 39% to 54% of people between 18-64 in the U.S. with a pre-existing condition don't hold a policy.
While it's true that obtaining a policy in this type of situation can be a challenge, it is not impossible by any means. Just prepare to put in the time, do your homework, and conduct a lot of research before attempting to apply. It can be done.
How to Research Before Purchasing Life Insurance
Start by gathering all documentation that explains your pre-existing medical condition(s), listing all physicians and the treatments you have received for the last decade. Or simply, know this information will likely be requested from your physician.
This can take some time, of course, but it’s important to have this information and to go back for at least that length of time to provide the clearest picture possible. You'll also need to list all medications you currently take, include dosages, and fully disclose any diseases or disorders you may have.
Next, highlight positive aspects of your health. If your pre-existing condition is in good control that bodes well for you and is important when applying for life insurance.
If you have an exercise routine or health regimen, share this information with the insurance company.
If you don't drink or smoke, emphasize this as well. Even if you used to partake in these lifestyle choices, list how long it's been since you've stopped.
After this information has been gone over, seek out a carrier that specializes in impaired-risk policies. Since you are a higher risk for insurers than those without pre-existing conditions, a professional who has navigated the terrain is your best bet and will provide plenty of room to state your case in the most advantageous way so you can apply for a policy that makes sense. Often a broker can provide you with knowledge on the carriers that specialize in certain conditions.
Aside from document-gathering, you will still need to get a medical exam from one of the potential insurer’s approved list of doctors. A simple way to get your best results during the exam is to schedule it first thing in the morning
Stay away from caffeine and sugar for at least the night before and the morning of your exam and get a good night’s rest the night before
In any case, if you are looking for coverage it's best to start now. There could be a waiting period before your policy takes effect, so the quicker you begin the process the better off you likely are.
To discuss some possible scenarios that might make sense for your particular condition, get in touch with an Efinancial representative today.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sat, Nov 10, 2012
With the recent sputtering economy, younger policyholders or even those that have reached middle age might find it counterintuitive to spend money on something that comes to fruition after they’ve passed away. An event that seems so far in the future that it's almost incomprehensible. The best perspective is found by looking at the financial security or "safety net" that life insurance provides for your family or other beneficiaries.
Not to mention the value of life insurance in more immediate, tangible ways. Some of the more-complex policies can "pay off" even while you remain on this big blue marble we call Earth.
For instance, many Life Insurance policies have a "cash value" component, which can provide real usability in the here and now. Here are 5 ways they can pay you while you’re here – some in cold hard cash, and one that might be even more valuable than all the money in the world.
1. Investments
There are Life Insurance products that have an investment aspect to them. Over time these policies can pay for themselves in accumulated interest.
2. An “Emergency Fund”
Another benefit of some cash value policies is that after a certain period of time you can withdraw accrued interest to tackle crucial life challenges. While this will put a dent in the overall payout after one's demise, this extra "income" can come in handy at a time when it's most needed, such as a sudden job loss, costly home repairs, expensive car repairs, car replacement, or even college education expenses.
3. Policy Loans
Another right here and now benefit: cash value policies can be used as collateral to borrow money in the event of financial disaster. In some cases, these may not need to be repaid and will simply be withdrawn upon payout.
4. Cash Dividends
These policies will also sometimes offer annual cash dividends. It's a set-up similar to what you would enjoy as a company shareholder. Who can’t use extra cash, especially in these tough financial times?
5. Ultimate Peace of Mind
Last, and certainly not least, life insurance buys peace of mind.
Think of those welcome-to-reality moments, like when you are about to step off the sidewalk and look left to see a bus speeding towards you…Or hearing about an old high school buddy who died much to soon, hitting a little too close to home…A young neighbor down the street who is stricken with an incurable disease and given six months to live…A young couple, on their second honeymoon, losing their lives in a tragic car accident.
Whatever the horrific event, it gives pause.
It's those moments that make you take stock. The moments when you are forced to confront your own mortality. To stop and ponder what ifs.
You can sleep easier with the knowledge that your family is protected by simply evaluating these risks and having the foresight to set up a policy that ensures their well-being no matter what happens.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Thu, Nov 08, 2012
Are you in the market to purchase a Life Insurance policy? Unlike shopping for carpet or cabinetry for your home, it's not quite as simple as flipping through a book and picking out what you like. Life insurance professionals are there to make the entire process easier, but having a game plan can go a long way towards streamlining the process and ensuring you get the best life insurance policy possible for your circumstances.
Let’s have a look at some items and information you should have on hand when meeting with a life insurance agent.
1. Any and All Paperwork
If you already have a policy, whether yours or your spouse’s, keep it handy.
Other paperwork you will need: any disability plans you might have, information about IRA accounts you might own, and health insurance plans under your name. If you are married, you should bring your spouse's health insurance paperwork as well, and when applicable, bring in mortgage information.
Finally, collect any paperwork on potential wills and the amount and type of investment properties in your name or your family's.
2. Know Your Stats
Be prepared to answer basic questions, such as height, weight, date of birth, employer, state of residence, lifestyle habits (smoking, drinking, exercise), health-related questions, financial information - including your annual income and net worth, coverage amount wanted, policy you intend to purchase, etc.
3. How Much Do You Need?
A lot can go into figuring the coverage amount, including how much your beneficiaries will need, your age, your dependents’ ages, your spouse's age, your spouse's financial ability, and your combined financial resources.
It pays to think of your need before calling and collecting information as needed.
For instance, know how much you would like to make available for paying off credit card debt, personal loans, car loans, and student loans. The amount needed by your family to pay off a mortgage loan or pay rent when you are gone will also be a crucial factor.
What about the amount of income required by your family each year after you die? When your family is used to a certain quality of life, adjustment after a loss of income can take some real time. Also take into account the amount needed to provide for your child’s education.
Finally, consider the cost of covering a funeral and other final financial needs as well as the amount of the investment assets such as 401k, savings accounts, pensions, CD, stocks, bonds, and mutual funds you would want available to your family upon your death.
As you go through the life insurance process, there are many more questions, personal and legal that will be asked. The key is to be truthful and provide all necessary information to make the processing of your application as smooth and quick as possible.
There is also the likely potential, depending on the policy you choose, that you will be asked to submit to a medical exam, which is generally a simple in-home exam where blood pressure, blood and urine samples are taken.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Tue, Nov 06, 2012
There are many obvious health advantages to quitting smoking. Non-smokers are at a much lower risk of stroke and heart disease. Quitting will also lower your current risk of mouth, throat, and lung cancer.
Less obvious may be the many financial advantages to quitting smoking. By quitting, smokers can save an average of $5,000 per year on the cost of cigarettes alone. This number is likely to increase as the prices of and taxes on cigarettes continue to climb from year to year.
Quitting Smoking Can Lower Life Insurance Premiums
There are also other cost benefits to quitting smoking. One of the major benefits is decreased life insurance premiums. Life insurance companies take into account the risk of an insured person dying when they review an application. Smoking is a huge risk factor that pushes up the cost of life insurance drastically if approved.
Depending on the policy, their age, gender, and other factors, smokers that quit often save between 10% and 50% annually on their life insurance premiums. In some cases, the rate charged for tobacco users can be more than 100% greater than the rate for non-users. For this reason, quitting smoking can have a considerable impact on the cost of insurance. This could add up to hundreds of dollars per year and thousands of dollars over the entire term of a life insurance policy.
The bottom line is that you should quit smoking to save money on life insurance. Note that many life insurance carriers require you to be nicotine free for a certain period of time before considering you for non tobacco rates (often one year).
Quitting Smoking
Deciding to quit smoking is a major step for your health and the health of your wallet. It is not easy. Nicotine is an addictive drug. Many people attempt to quit several times before they finally succeed. When you decide to quit, it is essential that you have a plan and stick to it. The American Cancer Society provides many helpful tactics and tips for helping people stop smoking.
Lowering Your Life Insurance Premiums after You Quit Smoking
If you already have life insurance, you will want to inform your provider to reapply or reconsider you for lower rates. Most insurers consider you a non-smoker after one full nicotine-free year. The use of many smoking cessation products is still considered nicotine use.
When you reapply, you will be required to undergo another physical examination. This will include a blood and/or urine test. If any trace of nicotine is discovered in your system, you will not be approved. Don’t try to lie to the insurer. This puts you at greater risk for denial of insurance.
If you are searching for a new policy after quitting, find your most favorable rates by comparing life insurance quotes online. It is important to shop different companies to find the coverage that best fits your needs. This is even true if you are a smoker looking for coverage.
Did you save money on life insurance after quitting smoking? Share your experience in the comments below.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Mon, Nov 05, 2012
Like it or not, there is nothing you can do about two of the three main factors that affect your insurance premium – age and family medical history. These are simply two variables you’re stuck with. The third – lifestyle – on the other hand, is something you absolutely can take control of and in the process lower your life insurance premiums considerably. Let’s go over four dependable ways you can accomplish this.
1. Maintain a weight
A healthy weight can help lower your blood pressure and cholesterol levels. In addition, it puts you at a lower risk of developing diseases. This one step can make you a much better insurance risk.
2. Eliminate or Reduce Alcohol Usage
Drinking less or completely forgoing alcohol altogether is another great way to become less of an insurance risk. Drinking can pose potential long-term health risks and you can bet that Life Insurance companies will check your driving record, medical exam, and overall application to assess the possible impact of your drinking habits.
3. Stop smoking
As a non-smoker, you’re expected to live longer and therefore can generally find lower premium payments than a smoker.. It's really that simple.
4. Become a Better Driver
Multiple tickets, moving violations, DUIs, or reckless driving can pinpoint you as a natural daredevil on the road. Not a good risk for insurance companies. Slow down. Stay at or under the speed limit. Drive safer. Drive smarter.
5. Ask About Payment Discounts
You might be able to earn a discount by paying annually instead of monthly. In some cases, allowing automatic payments to be withdrawn directly from your checking account will afford you a break.
6. Choose the Company That’s Right for You
If you have a medical condition, look for an insurance company that specializes in your type of coverage. Other companies specialize in particular lifestyle choices, like light smokers.
7. Review Your Credit Report
Be aware that insurance companies can look at your credit report when setting your premium. Makes sure all information is accurate, complete and up to date, before you apply for a policy. Get any negative marks cleared up if possible. Pay your bills on time.
8. Review your Medical Information Bureau File
Request a free copy of your file from the MIB website. Review it and make sure to correct any critical errors because they can negatively affect your premium as well. Insurers will share information on an applicant's medical conditions through the MIB.
9. Consider Term Life Insurance
Consider term life over a permanent life policy. Depending on your age and the length of time you expect to need life insurance coverage, a term policy is often a better choice. Want to find out more about saving on life insurance? Contact a representative at Efinancial today!
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com
Posted on Sat, Nov 03, 2012
Just as no two life insurance policies are ever exactly the same, no two policy holders will pay exactly the same premiums. Life insurance premiums, like approvals, are determined on a case-by-case basis. Insurance companies take into account a number of factors when they determine your life insurance premiums. Some may be within your power to change, while others remain beyond your control.
Your Age
Life insurance companies create premiums based on how likely you are to die within the term of your coverage. Obviously, the older you are, the closer you are moving on. Because of this, your age is a major determining factor of your life insurance premiums. This is why you will usually find lower rates if you apply while you are still young.
Your Health
Along with your age, your health has one of the largest impacts on your life insurance premiums. If you have any pre-existing condition, you will find life insurance to be more expensive or even more difficult to obtain. Life insurance companies will also look at your family’s medical history. Hereditary conditions such as high blood pressure and heart disease can also negatively affect your premiums.
You can control much of your health. Eating healthy, exercising, and avoiding tobacco use will all increase the likelihood of approval and help lower premiums. Talk to your doctor for advice on healthy living. It’s not just good for you. It’s also good for your insurance rates.
Your Job
Some jobs are simply more dangerous than others. An accountant, for instance, will not be in harm’s way as much as a Hollywood stuntman. Having a risky career may make getting life insurance harder or, at least, more expensive. High-risk careers include police officers, firefighters, soldiers, loggers, and construction workers.
Your Lifestyle
Do you enjoy extreme sports? Do you like to spend your weekends BASE jumping? While these activities provide a thrill, they certainly will not help your insurance premiums. Risky hobbies will increase rates. Other risky behaviors such as recreational drug use, heavy drinking, and skiing can all affect your life insurance decision and premiums.
The Type of Life Insurance You Have
The type of life insurance policy you purchase will also affect the premiums you pay. For instance, whole life tends to be more expensive than term life insurance. Also, you will pay higher premiums for a longer term and/or a higher death benefit. The riders you choose will also affect your rates.
Understanding the factors that affect life insurance premiums will help you find the best price. While you can’t change your age or your medical history, making some alterations to your lifestyle often can result in paying lower premiums.
All life insurance companies will offer you prices based on your circumstances differently. That is why it is best to compare life insurance premiums online before you buy.
To get a
Term Life Insurance Quote or Research how to
Buy Life Insurance Online visit
Efinancial.com