Actionable Tips For Saving On Insurance

While having insurance is mandatory for your home and car, overpaying for insurance is not. You must take every opportunity to save on insurance during your lifetime. Especially when you consider that insurance is money wasted if it is not used. Here are some tips you can follow to save money on your insurance.

Home Insurance

• Shop Around For Best Prices

By comparing prices from several different insurance companies, you'll probably be able to reduce your premiums. While this may seem obvious, research has shown that most people simply just renew their current policy. Many insurance web sites will automatically compare dozens of policies for you, making this one of the easiest ways to reduce your insurance bill for your home.

If you don't want to compare prices online, then use an insurance broker. You could actually save several hundred dollars if you buy your insurance from a different, low-priced insurer. Negotiate a lower price by using an insurance broker who works for you and not as a "sales arm" for just one specific company. 

• Buy Your Policy Online

If you buy your policy online you can often get a discount of up to 20% on normal prices, because there are less administration costs involved and the savings can be passed on to you.

• Pay upfront

Although most insurers let you pay your premium in monthly instalments, many charge interest for this. If you can afford to pay a full year's premium in advance, then this will work out cheaper in the long run.

• Don't claim small losses

Making many small claims against your coverage can increase your insurance costs, as your insurer may see you as a greater risk and increase your premiums. You will also lose any claims discount your policy has. Of course, you are entitled to claim for anything your policy covers, but ask yourself if making this small claim is really worth the hassle and possible future costs of insurance.

• Increase your home security

Beefing up your home security with better door locks, window locks, outdoor lighting, and alarm systems can all result in lower premiums. Ask your insurer what you could do to get an extra discount.

• Reduce your coverage

Many insurance policies feature benefits that you might not need, such as coverage for personal possessions while travelling, or legal advice. Look through your policy and see what parts of it you really need and only pay for those.

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Life Insurance

Types of Life Insurance
There are four types of life insurance plans from which you can choose: Term Life, Whole Life, Universal Life, and Variable Universal Life. There are several companies that will give you free life insurance quotes online. By entering your personal information, the amount of insurance coverage desired, and the policy terms, you will receive your quote. Naturally, you will want to talk to an actual agent at some point, but at least this you will get you a good "ballpark figure" to start with.

Term Life is the most affordable as it lets you lock in a fixed rate for the length of the policy (typically 10 or 20 years), but it does not have any cash value. The only way it pays out is if you die. Essential and basic life insurance coverage for any family. 

Whole Life offers policy holders lifetime coverage as long as you pay the premiums, guaranteed premiums that will never raise, and tax-deferred accumulation of cash value. In other words, you could borrow against the policy if you need cash. Not a great option for most people.

Universal Life offers policy holders lifetime coverage, flexible premiums, death benefits, and tax-deferred accumulation of cash value. Rates are adjustable as you go through life.

Variable Universal Life offers lifetime coverage, flexible premiums, death benefits, tax-deferred accumulation of cash value, and a selection of investment options. Rates are adjustable as you go through life.

Contact an Agent

Once you have determined which type of insurance is best for you and your situation, contact an agent for further guidance. If you receive an acceptable life insurance quote online, follow through with it to allow an agent to contact you personally. This person will go over the policy and discuss with you the various types of companies offering coverage. If you are satisfied with the coverage and want to proceed further, the agent will most likely order a comprehensive medical exam that can be done in the convenience of your home at no charge to you! About four to six weeks later the results will be in and if all goes well, your coverage will begin almost immediately. At no point are you obligated to accept coverage until you sign the contract. 

More Savings

Do you want to save even more money? Pay the premium all at once. Monthly or quarterly payments usually carry a surcharge. By paying the entire premium in advance you can save around 5% on the total price. 

Providing for your family members after your death is one of the most important reasons to include life insurance as part of your financial plan.

*Please Note*
It is my suggestion to pay for just the insurance protection that you need, and not a savings and investment vehicle. For the average person, just buy a term life insurance policy. Not only is this usually the least expensive and best option for people, but it does what insurance is supposed to do. Should you die, it pays out. If nothing catastrophic happens, then you were insured just in case.