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

Smokers are often under the impression that they can’t find affordable life insurance coverage. With 21% of the US population smoking, or about 45 million adult smokers in 2005, there is a need for life insurance companies to provide affordable rates to smokers.

Although smokers indeed pay more for term life insurance, there is generally a unique policy for almost every budget, every lifestyle, and every stage of life. The need for comparison shopping for the best policy is critical; as underwriting criteria and rates for smokers can differ drastically from company to company.

Who is Considered A Smoker? Insurance companies classify smokers differently based on their tobacco consumption. Some companies differentiate between moderate and heavy usage, and charge moderate users less.

Other companies use the classification of “standard” or “preferred” tobacco users, where smokers will generally fall into the preferred category if they smoke but are otherwise healthy with regard to their weight, blood pressure, and cholesterol.

Your Life Insurance Rates if You Quit Smoking
Those who recently quit smoking may qualify for non-smoker rates, depending on the insurer’s guidelines for how long a consumer must be tobacco-free. There are policies that offer graduated scales, with rates that drop the longer a person remains tobacco-free — sometimes reaching non-smoking rates in the course of a year.

Applying for Term Life Insurance
The process of applying for a term life insurance policy generally requires a medical examination that verifies the information provided by the applicant (height, weight, blood pressure, etc.). In order to identify tobacco users, most insurance companies administer a test that measures their body’s level of cotidine, a byproduct of nicotine, in their urine or saliva.

Nearly everyone can find affordable term life insurance rates when paired up with the right company — even smokers. Nearly a quarter of the US adult population smokes, creating a significant market for life insurance companies to offer competitive term life insurance products.

5 Ways to Save on Life Insurance

1. Buy When You're Young
Secure as much protection at a young age. Buying life insurance coverage while you’re young and your health is still good could help you save money on life insurance.

2. 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.

3. Check For Price Breaks
Companies often offer “price breaks” at certain coverage amounts, e.g., $250,000 vs. $225,000. The truth is that many people can actually pay less money for more coverage. Check how little your prices increase when you increase coverage to $250,000, $500,000, or $1,000,000.

4. Buy The Right Amount Of Coverage
Many agents may try to sell you more coverage than you need. Independent financial planners recommend purchasing an amount of coverage equal to 6-10 times your annual gross income.

5. Review Your Policy Often
Conduct a review of your life insurance policy at least every three years, if not more often. Rates may be lower, and your circumstances may have changed, necessitating more or less protection.

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Posted by InsZo at 9:45 AM | Permalink

When most people shop for homeowners or renters insurance, they erroneously guess a value for all their possessions and focus solely on controlling the cost of what seems like just another bill. Can you accurately list from memory everything in your house? How many necklaces and rings do you have, DVDs in your movie library, and exactly what type of digital camera is it? Most people struggle to answer such questions, let alone in a situation of post-traumatic anguish. This is why the need for creating a home inventory is so prominent.

A Basic Home Inventory
If you haven't created a home inventory, thinking of starting one can seem like a monumental task, especially if you’ve been living in your home for a long time. While the best time to start your list is when you’re just starting out in your first home or apartment, or have just moved to a new home, it can still be an achievable task in that home you’ve lived in for several years. Just go through your house or apartment one room at a time.

Try to get serial numbers for the big ticket items, and write down when, where, and for what price you purchased each item. Make sure you remember to go into closets, cupboards, and storage areas and write down the items in these as well. While some items you own have depreciated in replacement price (televisions, electronics, furniture, etc.), some items may have increased in value (such as art, jewelry, and collectibles). You may need to insure these items separately; check with your insurance agent and find out if your current policy adequately covers these valuables.

Take Pictures or a Video of Your Belongings
It is a good idea to take pictures or make a video of the items in your home. If you take pictures, write the details of the items on the pack of the picture. If you make a video, narrate as you walk from room to room (what items are in the room, when and where you bought them and for how much). Photographing or videotaping your home’s inventory can be especially helpful if items are hard to describe on paper, or for items you do not have receipts for.

Store Your List in a Safe Spot
Make sure you store your list, pictures, and/or DVD or video tape in a safe spot. While it’s a good idea to have a copy at home, make sure you have at least one additional copy outside your home. If you only have one copy inside your home (or on your home computer) and your home burns down, that list won’t do you any good. If your inventory is on your computer, make a disk or CD and store it elsewhere, and/or send your list to yourself at work or to your web-based email account so you can access it in places other than your home.

Keep Those Receipts!
Many of us are not great at keeping our receipts for the purchases we make. Now that you’ve read this article, make sure you keep receipts from now on, especially for those big ticket items. These receipts will help you settle your homeowners or renters insurance claim as quickly as possible. And remember; keep receipts (or copies of them) in a place besides your home, along with a copy of your home inventory.

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Posted by InsZo at 9:35 AM | Permalink

Safety features are obviously an important aspect you think about when purchasing a car. Some safety features, such as anti-lock breaks and airbags can save you up to 15% on your car insurance premium. Other safety features such as security systems, automatic seat belts, and etching your Vehicle Identification Number (VIN) on your windows can also lead to savings on your car insurance premium.

Airbags: Saving Lives and Money
In 2005, 2,741 lives were saved due to airbags. While auto insurance discounts vary from state to state, some states require that car insurance providers give discounts for people who own a car with airbags. In September 2006, a directive by the NHTSA made having an advanced frontal airbag system a Federal regulation. This includes passenger side airbags and newer, safer, frontal airbags. Passenger side airbags are activated only when there is a person sitting in the seat. If the sensor in the seat doesn’t detect the weight of a person, then the airbag will not deploy in the event of an accident.

Anti-Lock Brakes
States such as Florida, New Jersey and New York, insurers are required to give discounts to drivers who have vehicles with anti-lock brakes. According to the Insurance Institute for Highway Safety, anti-lock brakes are on about 63% of all new cars sold and 90% of light trucks. Anti-lock brakes are designed to keep your wheels from locking if you slam on your brakes. Anti-lock brakes help you keep more control during a violent stop and reduce your stopping distance.

Automatic Seatbelts
In 2005, 55% of those killed in passenger vehicles were not wearing seat belts. Wearing a seatbelt is not only the law in most states; it is also the best way to protect yourself. Having automatic seatbelts in your vehicle—seatbelts that are attached to a rail above your door and moves into place when the door closes—ensuring that you will be wearing a seatbelt at all times.

Car Alarms
Having a noisemaker car alarm on your vehicle should scare away thieves as well as save you money on your car insurance. Car alarms can be purchased and installed on older vehicles. Most new cars come equipped with safety features like audible alarms or keyless entries. If you do install an audible alarm on your vehicle, make sure you notify your car insurance provider. With car alarms, the louder the alarm doesn’t mean more savings. Just having a car alarm on your vehicle will do the trick.

Window Etching
Window etching is when you get your VIN etched onto the windows of your car. It serves as a visual deterrent to would-be thieves much in the way a “Beware of Dog” sign would on a fence. VIN etching also makes the parts useless for re-selling; making your car less likely to be stolen.

Shopping around and comparing quotes is still the number one way to save on auto insurance. If your car is equipped with some of the safety features mentioned in this article, make sure you notify your insurance provider. Not only can these safety features save lives and help prevent accidents and theft, they can also save you money on your car insurance.

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Posted by InsZo at 9:21 AM | Permalink