Insurance Blog, Home Insurance Blog, Life Insurance, InsWeb Insurance Blog

Kirstie Alley’s well publicized weight loss culminated with a public appearance in a two-piece swimsuit on the Oprah Winfrey show. As people with the same disposition as Kirstie took measures to look and feel better in preparation for this year’s swimsuit season, they also took steps to improve their overall health. Body weight is one of the primary underwriting factors for life insurance premiums; therefore, if you’ve recently had weight loss success — even one belt-size — you may be missing out on savings.

When determining life insurance policy costs, carriers use a simple formula: “The more a person weighs, the more they pay.” Specifically, the formula begins with an individual’s proportion of body weight to their height, known also as their “physical build”. It’s no secret that the more a person weighs in relation to their height, the greater their risk for long-term health complications and a shortened lifespan.

Carriers use different health ratios to determine rates; therefore, shopping around may uncover potential savings and better coverage. At any time, you may request a medical examination to expedite the process. Your rates are locked in for the term of the policy, so the carrier cannot penalize you for any gained weight. If in fact, the medical examination determines that your health has improved, you should pursue lower rates.

To be considered for preferred life insurance rates, it is important to keep your height to weight ratio at or near the ideal range for your body type. If you already have a term life insurance policy, and you have recently lost weight and kept it off, be sure to notify your carrier. If your carrier fails to reward you with lower rates, it may be time for you to shop around for a policy that will.

The life insurance industry is rightfully concerned about the country’s growing waistline, as the longevity and health impacts of extra weight affect the cost of insuring consumers. Wishing for all consumers to have long and healthy lives, life insurance carriers are rewarding weight loss through lower policy premiums. Fortunately, a significant amount of the overweight population is on the threshold of earning those lower premiums and saving hundreds of dollars — if they simply make minor lifestyle adjustments.

Obesity is a serious problem for Americans, with causes that range from genetic predisposition and metabolism, to modern cultural and social pressures. The effects of obesity are more than just not feeling good in your bathing suit, but the possible serious health risks that come with it. Fortunately, many have the ability to overcome the challenge through simple dietary adjustments and lifestyle changes; others may require the direction of medical and nutritional experts for more serious health issues. At the finish line of a person’s weight loss goal, term life insurance carriers may reward you with substantially lower premiums.

Posted by InsZo at 12:32 PM | Permalink | TrackBacks (0)

We hear and read about it in the news every day: rising interest rates are punishing homeowners that participated in the adjustable-rate home loan phenomenon over the past half-decade. Adustable-rate home loans account for almost 25%, or roughly 10 million of all mortgages, according to a 2006 USAToday Study. Attracting consumers with low down payments, and interest-only payment options, risky adjustable-rate loans gave millions of people the means to purchase a home that was otherwise out of their financial reach. In fact, RealtyTrac.com reported that there were 164,644 foreclosure notices filed in June 2007, up 87% from June of last year.

In the struggle to escape foreclosure, some homeowners will make simple adjustments in their daily lives by conserving energy and vacationing closer to home to save some money. Others, however, will be forced to drastically scale back their expenditures on not only frivolous items, but on necessities as well. Unbeknownst to many homeowners, comparing homeowners insurance quotes is an effective way to find savings that can alleviate the financial stresses of owning a home.

Homeowners Insurance and Mortgages
As far as many new home buyers have been concerned, their homeowners insurance policies are bundled into their mortgage payment. Satisfying the lender's prerequisite that the premium be paid for the first year at closing, shopping around for the best rate may not have been a reasonable option at the time. Given the current state of rising interest rates though, the need for shopping for a new homeowners insurance policy has never been more justifiable. It's easier than shopping for a mortgage and there are numerous ways for homeowners to save, easing the pinch created by skyrocketing mortgages.

Consider Raising Your Deductible
Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000, you may to save nearly 25% on your premium.

Look for Multi-Policy Insurance
Most insurance companies that sell insurance products other than homeowners insurance will offer consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Only Buy the Homeowners Coverage You Need
Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventory, and reevaluate policy limits for possible savings. Further, homeowners shouldn't spend money for coverage they don't need. For example, if you don't live in a flood-prone area, you may not need costly flood insurance.

Look For Discounts That May Apply to You
There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Insure Your House, Not the Land Under It
Consumers often overpay for homeowners insurance by including the value of the land that their home resides. Remember that you only need to insure the home itself and your possessions, not the land. Should something unfortunate occur, the land will most likely remain. If you do not subtract the value of the land when deciding how much homeowners insurance to buy, you will most likely pay more than you should.

Homeowners insurance premiums can vary by hundreds of dollars from one company to another. Using InsWeb.com's online quote form, you can easily shop for and compare multiple homeowners insurance quotes from the comfort of your home.

Posted by InsZo at 12:22 PM | Permalink

It might be hard to believe, but 2007 is already halfway over! In fact, the holiday shopping season starts in just 145 days. More pressing, you may have noticed a little more strain on your travel budget this summer thanks to soaring gas prices. Need some financial breathing-room? A mid-year review of your auto insurance premiums may be able to offset some of those unavoidable costs.

It's a fact that insurance companies are always changing their rates, whether you know it or not. In fact, in some parts of the country, an industry price war is mounting among carriers, in the same manner that airlines slash prices: to gain consumer market share.

In these times, it's the shopping consumer that benefits from the competition through lower premiums. Accordingly, even if you haven't made any claims in the first half of the year, or received any tickets for that matter, you may be a different driver now than you were at the beginning of the year. It takes a 6-month review of your premiums to identify such savings though.

Don't continue to overspend on your car insurance in 2007 — and don't wait till the end of the year to make adjustments. Your potential savings are better used for the cost of gas, vehicle registration costs, tolls, parking, and the other hidden costs of owning a car.

1. Shop and Compare Rates Every 6 Months
In 2007, if you check your car insurance rates in January, make sure your check them again in the summer. According to an independent study, people who compare rates and switch carriers at InsWeb.com save an average of $301* on a six-month policy. Consider the savings over 12 months!

2. Select Higher Deductibles
Simply put, the higher your deductible, the lower your premium. Indeed the cost of an accident will be that much more expensive; however, if the damage is minor (grey zone in making accident claim), you'll be spending the same out-of-pocket amount regardless.

3. Make a Cheaper Policy Even Cheaper: Don't Pay in Monthly Installments
Additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). Be aware that a monthly fee of even $7 can add up to $84 over 12 months.

4. Look for Multi-Line Insurance Discounts
The most under recognized car insurance discount results from the multi-line insurance policy: buying your auto insurance and your homeowners insurance from the same insurance company. According to the Insurance Information Institute, a multi-line policy can save you up to 15% on both premiums.

5. Collect on Your Good Driving
Most insurance companies reward good driving with lower premiums. In fact, in some states a good driving discount is required by law. If you haven't had any accidents or tickets in the last three to five years, shop at InsWeb.com and see whether you are missing out on this money saving discount.

6. Don't Overpay for Tickets
Unfortunately moving violations are an accurate reflection of your liability to an insurance company, and your rates can skyrocket as a result. Perhaps you deserve a higher rate, but don't let the insurance company unduly punish you. Shop around and see if you can find a more reasonable rate with another company.

7. Look for Safe Vehicle Discounts
Many companies offer discounts for various safety features on your vehicle, including air bags, alarms, factory-installed mechanical seatbelts and antilock brakes. In getting updated insurance quotes, be sure to indicate such safety features to benefit from available discounts.

8. Don't Pay for Unnecessary Coverage
You may be paying for coverage that you don't need. For example, you may be a member of an auto club that provides towing services, yet you're also paying for towing on your auto insurance policy. Look for opportunities to eliminate unnecessary costs.

9. Look for a Good Student Discount or Senior Discount
Students currently enrolled in school often receive a discount on auto insurance for good grades, as many companies feel conscientious students make conscientious drivers. Similarly, insurance companies are known to value the wisdom of an experienced driver, offering discounts to drivers over 50 as a result.

10. Pay Less for Driving Less
Many insurance companies will offer discounts on vehicles that incur low annual mileage. In fact, some companies have a predetermined number of what they consider low mileage. Has your commute changed? If so, it might save you money to get an updated quote.

* Based on average savings information from InsWeb policyholder survey data from 4/27 to 7/4/2005.

Posted by InsZo at 12:11 PM | Permalink