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

The end of 2007 is a good time to evaluate your life insurance needs. Maybe you started a family in 2007; or got married, divorced, or retired? As your life changes, so do your life insurance needs. Evaluating your life insurance needs can help you find the coverage that is right for you. Another good reason to evaluate your life insurance needs is that life insurance rates are expected to drop in 2008.

Rate Predictions for 2008
The Insurance Information Institute (I.I.I.) estimates the annual premium for a 40-year-old male non-smoker buying a $500,000 20-year level term life insurance policy in 2008 will be about $725 if he qualifies as a “standard” risk and $350 if he meets the more stringent requirements of a “preferred” risk.

Rates for women and younger people would be lower. For example, the comparable rate for a 40-year-old female non-smoker would be about $600 for a standard risk, and $300 for a preferred risk.

Why Life Insurance Rates are Decreasing
Life insurance rates have been dropping the last couple of years as the life expectancy rate has continued to increase. The Center for Disease Control reports that the average life expectancy is up to 77.8 years. As Americans are living longer, life insurance providers are rewarding their consumers with lower rates. The I.I.I. also reports that life insurance companies are running more efficiently, lowering their expenses in their offices and field offices.

Buy Life Insurance When You’re Young
Many people may feel they don't need life insurance when they are young. While your financial needs may be lower at a younger age, the rates are also substantially less expensive when you're young. Remember, the goal is to cover your primary assets so should something 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 is good and the price is right.

Buy Only the Life Insurance Coverage You Need
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.
Review your policy often

Once you have a life insurance policy, you should review it at least once 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 your coverages won't overlap or lapse.

Posted by InsZo at 9:35 AM | Permalink

Many people are under the assumption that nothing bad will ever happen to them. However, oftentimes this turns out to be just wishful thinking. The truth is nobody can be certain of what the future holds in store for them. That’s why it’s important to mitigate risks against potential perils whenever possible. As a homeowner, it’s imperative that you not only have homeowners insurance, but the right amount of coverage that best suits your needs.

Disasters are Never Planned
Devastating wildfires ripped through Southern California in late October and burned into November. The fires scorched over 800 square miles, charring 2,768 buildings, including over 2,100 homes. In addition to the loss of homes and businesses, another 430 some buildings were damaged by the flames. In all, over 14,000 buildings were threatened by the fires, which caused an estimated $1.6 billion in damages.

Holiday Season and Home Fire Prevention
With Halloween behind us, many of us have begun decorating our homes for the upcoming holiday season. As we begin preheating our ovens to cook our Thanksgiving turkeys and decking the halls with boughs of holly, we’re also unwittingly increasing the likelihood of becoming victim to a home fire. Cooking fires are more likely to happen on Thanksgiving than any other day of the year. In 2005, cooking fires were involved in roughly 1,300 reported home structure fires on Thanksgiving – that’s almost three times the daily average. And the threat of home fires doesn’t end on Thanksgiving. Holiday lights (or other decorative lighting with live voltage) were involved in 16% of the home Christmas tree structure fires. (NFPA)

What’s Covered in a Homeowners Insurance Policy
The typical homeowners policy has two primary sections: Section I covers your property, and Section II provides personal liability coverage to help protect you from lawsuits arising from incidents that occur on your property. Almost anyone who owns or leases property should have this type of insurance. Often, homeowners insurance is required by lenders as a requirement to obtain a mortgage. Simply put, Section I covers damages that happen to your home (and property), while Section II covers injuries that happen to your guests while in your home or on your property (Insurance Information Institute).

Typical Disasters That are Covered with Homeowners Insurance
Typical hazards and perils covered in most homeowners insurance policies include fire, smoke, lightning, windstorm (excluded in certain areas of the country), hail, vandalism/theft, falling objects (such as a tree), water damage from bursting or frozen pipes, weight of snow or ice, a vehicle causing damage to the home, building collapse and structural damage from an electrical surge (not from electronics, such as your stereo, inside your home).

Nobody ever thinks that a fire will burn down their home or apartment. The Southern California wildfires serve as a tragic reminder that anybody can become a disaster victim. As you prepare for the holidays, consider the peace of mind a homeowners policy can provide.

Posted by InsZo at 9:29 AM | Permalink

Renters insurance is considerably less expensive than homeowners insurance. Yet a 2006 Insurance Research Council survey revealed that while 96% of people who own their own homes have a homeowners insurance policy, only 43% of those who live in rented homes have a renters insurance policy. Like home owners, renters have personal property worth protecting, and with the average renters insurance policy only costing $16.26 a month*, renters insurance is one of the greatest values on the insurance market today. And yet there are still ways to make a renters insurance policy more affordable.

Compare Renters Insurance Quotes
Comparing quotes and coverage is the best way to find a renters insurance policy that you can afford. You can spend a few minutes online and get free, no-obligation quotes to help you determine the policy that provides the best value for your needs.

A Higher Deductible Can Lower Your Renters Insurance Premium
A deductible is the amount you must pay before the insurance provider will make payments on a claim. As a rule, the higher the deductible is (or the more you must pay first), the lower the premium. In determining the deductible that’s right for you, you should weigh the costs of paying a higher premium year after year with the cost of paying a higher deductible should you end-up filing a claim. Renters insurance deductibles usually start at $250 and go up from there.

A Good Credit Rating = Lower Renters Insurance Costs
Good credit has always been one of the easiest and most effective ways to lower insurance costs. A good credit rating shows the insurance company that you pay your bills on time, which means you’re less risky to insure – less risk leads to lower premiums.

Buy Your Renters and Auto Policies from the Same Company
A large number of companies offer multi-line discounts if you combine renters insurance with auto coverage. Having both policies with one company is not only convenient, it can save you money.

Save on Renters Insurance by Installing Safety and Security Devices
Taking initiative to prevent potential losses and damage is another way to save money on renters insurance. The installation of smoke detectors, a fire extinguisher and dead bolt door locks and window locks can lead to savings since your home is less of a security risk.

Stop Smoking and Start Saving on Renters Insurance
Smoking is one of the leading causes of residential fires, damaging more than 23,000 homes every year. Some insurance providers offer reduced premiums to non-smokers.

Look for Senior Discounts on Renters Insurance
Research has shown that retired individuals are less risky to insure. Renters aged 55 and older can look to save up to 10% on their renters insurance.

Save on Renters Insurance with Group Coverage
Find out if your employer or other association (alumni or business) offers affordable group coverage. Group discounts are a great opportunity to save on insurance.

Staying with an Insurer Can Lead to Lower Renters Insurance Premiums
Many insurance companies reward loyalty with lower premiums, as an incentive to keep you happy. Take advantage of these offers by staying with an insurance provider for several years. You may be able to save up to 5% if you stay with the same company for three to five years, with the discount growing to 10% after the six-year mark.

Check Your Renters Insurance Policy Annually
Over the course of a year you may sell items in your possession or acquire new belongings. An annual review of your insurance policy will allow you to adjust your coverage amounts, potentially saving you money.

Even though renters insurance doesn’t cost a bundle, you can still find ways to save. By following the steps outlined in this article, your affordable renters insurance policy may become even less expensive.

* Insurance Information Institute

Posted by InsZo at 9:20 AM | Permalink

“Do you know what your credit score is?” Perhaps you have heard or read phrases like this from a company telling you how important it is to check your credit score. But why is your credit score important? Your credit score affects your ability to rent an apartment, get a loan, buy a car; it even impacts your car insurance rates. Car insurance companies have found a direct correlation between a person’s credit score and the likelihood of filing a claim. Insurance companies use what’s called an “insurance score,” which is a numerical ranking based on a person’s credit history.

Good or Bad—Your Credit Affects Your Auto Insurance
Many people might be unaware about how their insurance score affects their car insurance rates.

Some consumers are disturbed by the fact that, when applying for insurance, one insurer will reject an application based on an applicant’s insurance score, yet another company will find it acceptable. This underscores the importance of shopping around for car insurance.

What is a Good Credit Score?
A good score is typically above 760 and a bad score is below 600. Many people have no idea they are beneficiaries of insurance scoring. Insurers say more than 50% of policyholders have a lower premium because of good credit.

How to Maintain a Good Credit Record
Pay Your Bills on Time: Pay all of your bills on time. Late payments and delinquent accounts can have a major negative impact on credit scores, as well as give creditors the right to increase your interest rates. Your goal should be to build a long history of reliable bill paying behavior.

Only Carry a Few Credit Cards: Limit yourself to a maximum of three or four cards and keep your balances low. Use no more than 30% of your available credit at any given time and try to pay off your balance in full whenever possible. If you decide to crack down on your credit card usage by cutting up a credit card, go ahead and do it. However, don’t close the account as this will raise your balance-to-credit-limit ratio, and can have a negative impact on your credit score.

Check Your Credit Report Annually: Look for errors and correct them as soon as possible. By law, you are entitled to one free credit report from each of the three reporting agencies once a year. You can request your free annual credit report from the only online authorized website, AnnualCreditReport.com or by calling the toll free number 1-877-322-8228. Also, if you apply for credit and are turned down, you have a right to request a free credit report from the agency used by the creditor. If you would like additional information regarding credit scores, or would like to purchase your own FICO® credit score used by most lenders, visit MyFico.com.

Make sure you keep your credit under control. Since car insurance providers use your credit score differently, make sure you compare multiple car insurance quotes when buying your policy.

Source: Insurance Information Institute (III.org)

Posted by InsZo at 9:13 AM | Permalink