Term Life Insurance That Pays You For Living: Return Of Premium Policies Explained

In recent years, InsWeb has expanded its Term Life insurance marketplace to include alternate products that each offer their own benefits. One of these unique products is a Return of Premium Term Life insurance policy. Return of Premium (commonly known as ROP) policies, while a bit more costly, offer the benefit of returning your paid premiums if you are still living when the policy term is up. They also provide the same benefits of a term life insurance policy; namely offering you the choice of your term length and policy amount.
Originally, ROP term life insurance was designed only to refund the policyholder at the end of the chosen term (for example, 20 or 30 years) if the policyholder outlived the term. As the product has matured, there are now several variations which allow policyholders to receive partial refunds by canceling the policy several years into the term. For example, if a policyholder chose a 20-year ROP product, they may be able to receive a 50% refund of paid premiums at the end of the 15th policy year. Graduated refunds may be able to be received down to the sixth policy year; no refunds will be returned if the policy is cancelled before the end of the fifth policy year.


ROP term life insurance offers consumers options. Price-wise, it usually falls in the middle of less expensive pure term life insurance products, and more expensive (and often confusing) permanent or whole life insurance products. It offers the same benefits as traditional term life insurance, while offering consumers the added bonus of getting their paid premiums returned to them if they outlive their policies; or receiving partial returns if they find they have a greater need for the money partially through the policy’s term.

InsWeb’s ROP term life insurance offerings are most competitively priced at a 30-year term, where a healthy 35 year old male can get a $500,000 ROP policy from one of our top companies for as low as $68.72 a month (compared to $44.63 a month for a comparable traditional term life insurance policy). The difference between the 2 premiums is only $24.09 a month; however at the end of the 30-year ROP policy the owner could get back up to $24,739.20! And according to industry averages, this rate would still be significantly lower than purchasing a permanent life insurance policy, and again offers the consumers the benefit of choice offered by term life insurance.

Life Insurance for Those Recently Retired or About to Retire

Studies show that over 25% of American households lack any member with life insurance. And the approximately three quarters of us who have life insurance do not have adequate coverage levels for the stage of life we are in. It is important to review your policy as your life changes, to ensure that your coverage is sufficient for your new needs.
Life insurance needs may not be as high as they are at other stages (i.e. having a baby, getting married) in life for those that are newly retired. But, it is also true that most new retirees do need to think about maintaining an adequate level of coverage.


Simply consider your children or spouse you may leave behind. Even though your children may be grown and on their own, and your spouse may be able to live comfortably on his or her retirement savings, there are many special circumstances in which they may find themselves in financial trouble if you were to pass, or vice versa, you if they were to.

If you are very ill before you pass away, you will incur many health costs, many of which may be passed on to your spouse or children if you pass away. Many seniors may have to live with a child if they are on their own and need help, and this may put a financial burden on the affected family members. There are also funeral costs to consider. It is important to ensure that your family members can recoup any financial losses after you pass away.

September Is Life Insurance Awareness Month. Ice Skater Scott Hamilton is 2006 Spokesperson!

According to The Life and Health Insurance Foundation for Education (LIFE), “Life Insurance Awareness Month was created in response to growing concern about the large number of Americans who lack adequate life insurance protection. According to LIMRA, 68 million adult Americans have no life insurance. Those who own life insurance have an average of four times their annual income in coverage, which is considerably less than most experts recommend. Held each September, Life Insurance Awareness Month is an industry-wide effort that is coordinated by the LIFE Foundation.”
According to U.S. Census data, there are nearly 300 million people in the U.S. If 68 million of them lack any form of life insurance, that means that approximately 23% of people in this country are uninsured. And of the approximately 77% of people that do have life insurance, most of them do not have adequate coverage.


This year’s Life Insurance Awareness Month spokesperson is world renowned ice skater Scott Hamilton. Here is part of his moving story from LIFE’s August 28, 2006 Press Release:

Scott was only 19 when he lost his mother to cancer. On a personal level, Scott took the loss very hard but his mother’s death also strained the family’s finances. Without his mother’s income, there wasn’t enough money to continue to pay for Scott’s training. Had it not been for the generosity of an anonymous donor, Scott would have given up the sport he loved right before his skating career was about to take off. As it turned out, the experience strengthened his resolve to achieve skating greatness and he went on to become one of the most successful skaters in the history of the sport, eventually winning gold at the 1984 Winter Olympics in Sarajevo. Thirteen years later, Scott achieved an even more important victory when he successfully completed treatments for testicular cancer.

"Losing my mother and fighting my own battle with cancer taught me that unexpected events can rock your family at any time," said Scott Hamilton. "When my mom died, the emotional challenges that my family and I faced were compounded by financial struggles because she didn't have any life insurance. Because of that experience, I've owned life insurance since I was a young adult. Now that I'm married and have a son who’s almost three, I value the financial security life insurance provides more than ever."

Scott’s story illustrates why it is so important to have life insurance to protect your loved ones. Many people that do not own life insurance may not realize how affordable it can be, especially inexpensive term life insurance, which you can tailor to your personal needs.

Current rates on InsWeb for a 40 year old male of average build with good health are as low as $34.56/month for a 20-year, $500,000 policy (a comparable female’s rates are even lower; as low as $26.69/month). Policy lengths can be as short as ten years, and coverage amounts as low as $100,000, although a good rule of thumb is to take your annual gross income and multiply it by a factor of 10, 15 or even 20 (depending on your age) to make sure your family could continue in their current lifestyle.

Also, according to the Insurance Information Institute (III): “Premium rates for individual life insurance – both term life and “permanent” insurance – are expected to drop by 3% in 2006, driven largely by significant mortality improvements and increased competition.” The time to shop for life insurance couldn’t be better! And since rates vary widely from company to company, you should compare multiple rates before purchasing a policy.

How Smokers Can Get Affordable Term Life Insurance

Often times smokers underestimate their potential for obtaining term life insurance at affordable prices, let alone adequate coverage levels. 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. For smokers though, the need for comparison shopping for the best policy is everything, as underwriting criteria and rates for smokers can differ drastically from company to company.
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. Those who recently quit 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.


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 (byproduct of nicotine) in their urine or saliva.

The bottom line is that 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.

Expecting To Gain Those Holiday Pounds?

In a matter of days, the holiday season will return, and all those extra calories will once again propagate every corner of our lives, just like the seasonal decorations overtake the crowded malls. If during this time, you become a Jekyll-and-Hyde with uncontrollable snacking — wielding a 6-week license to feast, remember that your holiday pounds can easily tip you into a more expensive term life insurance category. If you are like the millions of Americans that are also on this threshold, you have three options: 1.) secure lower rates before the feast, 2.) maintain a strict holiday diet, or 3.) pay more afterward.
People comfortably accept a certain amount of holiday weight gain; knowing that they can simply use one of their New Year’s resolutions to undo such indulgence. However, the timing of the classic weight loss resolution clashes head-on with the other New Year’s resolution: Getting finances in order — especially as it relates to term life insurance.

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. Therefore, it should be no surprise that carriers use a simple formula to determine term life insurance policy costs: “The more you weigh, the more you pay.”

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 new policy. 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.

High Blood Pressure and Cholesterol Levels and Your Term Life Insurance

Overshadowed by weight loss fads and trends, lowering blood pressure and cholesterol are among the most popular health resolutions that people place on themselves. Both are leading contributors to heart disease as nearly one-in-four Americans have unhealthy cholesterol levels and another one-in-three have high blood pressure. Combined with your age, gender, weight, and lifestyle, these are critical factors that directly affect how much you pay — and overpay — for term life insurance.
Any time you improve your health by losing weight, lowering your cholesterol or blood pressure, you should contact your term life insurance company and request a lower rate. More than likely, you will be subject to a medical examination to confirm your health, however, you have nothing to lose. Your current rates are already locked in and cannot be increased if the results are to the contrary. After the examination, if you are not rewarded with lower rates, it may be in your interest to shop around for a new policy.

If you have a history of high blood pressure and cholesterol and take medications to maintain healthy levels, you may still qualify for preferred rates. Term life insurance companies are more concerned about your actual levels when you apply for coverage than how you manage them. A blood pressure level at or above 140 over 90 is generally considered to be high (hypertension), as is a cholesterol level above 200. Being just over the threshold for each does not independently affect your rates; rather it's in combination with other negative underwriting factors such as obesity and smoking when your rates suffer. An experienced term life insurance agent can help you find the right policy at the best price as different insurance companies assign different rates to the same health risks.

In 2007 as you continue on your road to better health, take notice that your life insurance rates are likely to improve as you lower your blood pressure and cholesterol levels. Savings are only realized though when you compare quotes from multiple companies, or request a review of your current policy. Remember, term life insurance rates are always changing and the cost of the same policy can vary by hundreds of dollars among different companies.

Rise in U.S. Traffic Deaths Explained by Motorcycle and Pedestrian Fatalities

The Insurance Journal recently reported somber news in regards to a rise in U.S. traffic deaths. Specifically, the announcement stated that traffic deaths in the U.S. reached their highest levels since 1990. Interestingly, the increase in fatalities is attributed to an increase in motorcycle and pedestrian fatalities.

In regards to motorcycles, the National Highway Traffic Safety Administration (NHTSA) reports that fatalities rose for the 8th straight year, increasing 13% since 2004. 4,553 motorcyclists died in 2005, compared with 4,028 in 2004. Sadly, the report sends us a simple reminder with the fact that “Nearly half of the people who died were not wearing helmets.”

According to the same report, 43,443 people were killed on the highways last year, up 1.4 percent from 42,836 in 2004. The fatality rate also grew slightly to 1.47 deaths per 100 million miles traveled, an increase from 1.45 in 2004. It was the first increase in the fatality rate since 1986. Pedestrian deaths increased from 4,675 in 2004 to 4,881 in 2005. NHTSA said it was investigating the increase to try to learn what led to the growth.

Sharing the Road with Motorcyclists: 10 Things People in Cars Should Know About Motorcycles

On busy travel weekends such as this last Labor Day weekend, millions of drivers succumb to the grinding halt of getting in and out of town. An hour or two into the frustrating stop-and-go ordeal, it’s those darn motorcycles that never seem to be affected by the collective cattle run! While you’re effectively going nowhere, you see them moving along in your rearview mirror at a constant 25 mph. “It’s not fair,” I think to myself! But then again, in the process of accepting the consequences of leaving the city at 3:00 pm in the afternoon on a holiday weekend, I recognize that as an American, I too have freedom to purchase a motorcycle (correction: chopper), and move along at a constant 25 mph in grinding traffic. What a country!
I have friends who are avid motorcyclists, and they tell me the craziest stories about how people simply do not understand the consequences of their driving actions on the road — especially as it relates to motorcycles. For example, traffic jams make many drivers block and cut off lanes; and you wouldn’t believe it that people actually do open their doors!
My friend Ken P. recently directed me the Motorcycle Safety Foundation site, where they address a lot of these challenges. However, as I don’t think that people who drive cars actively visit motorcycle safety websites, I thought it would be appropriate to share the site’s list of 10 things that all drivers should know about motorcycles.
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1. There are a lot more cars and trucks than motorcycles on the road, and some drivers don't "recognize" a motorcycle; they ignore it (usually unintentionally). Look for motorcycles, especially when checking traffic at an intersection.
2. Because of its small size, a motorcycle may look farther away than it is. It may also be difficult to judge a motorcycle’s speed. When checking traffic to turn at an intersection or into (or out of) a driveway, predict a motorcycle is closer than it looks.
3. Because of its small size, a motorcycle can be easily hidden in a car’s blind spots (door/roof pillars) or masked by objects or backgrounds outside a car (bushes, fences, bridges, etc). Take an extra moment to thoroughly check traffic, whether you're changing lanes or turning at intersections.
4. Because of its small size a motorcycle may seem to be moving faster than it really is. Don't assume all motorcyclists are speed demons.
5. Motorcyclists often slow by downshifting or merely rolling off the throttle, thus not activating the brake light. Allow more following distance, say 3 or 4 seconds. At intersections, predict a motorcyclist may slow down without visual warning.
6. Turn signals on a motorcycle usually are not self-canceling, thus some riders, (especially beginners) sometimes forget to turn them off after a turn or lane change. Make sure a motorcycle's signal is for real.
7. Motorcyclists often adjust position within a lane to be seen more easily and to minimize the effects of road debris, passing vehicles, and wind. Understand that motorcyclists adjust lane position for a purpose, not to be reckless or show off or to allow you to share the lane with them.
8. Maneuverability is one of a motorcycle's better characteristics, especially at slower speeds and with good road conditions, but don't expect a motorcyclist to always be able to dodge out of the way.
9. Stopping distance for motorcycles is nearly the same as for cars, but slippery pavement makes stopping quickly difficult. Allow more following distance behind a motorcycle because it can't always stop "on a dime."
10. When a motorcycle is in motion, don't think of it as motorcycle; think of it as a person.

Health Insurance Plans – Which Type Is For Me?

A lot has happened in my life the past eight months, which has led me to making some important decisions. For nearly seven years I lived in the Pacific Northwest; receiving my college education and working several different professional jobs. There came a point this past Fall when I realized that I was ready for a change. I was seeking bigger and brighter things in my life, and the dreary Northwest was not providing me the opportunities I was seeking. I left my job, packed my SUV with all of my possessions (yes, amazingly I fit everything in and on top of my car), and said good bye to my friends. It was California or Bust!
Continue reading "Health Insurance Plans – Which Type Is For Me?" »

10 Easiest Ways to Lower Your Car Insurance Bill in 2007

Happy New Year! As you begin 2007 with a renewed determination to improve your finances, take 10 minutes to analyze your auto insurance bill. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies reduced their rates in 2006.
Don’t overspend on car insurance in 2007: Your potential savings are better used for utility bills, cell phone calling plans, or better yet, personal entertainment. In shopping for a new car insurance policy, use InsWeb’s 10 tips for lowering your rates.
1. Shop and Compare Rates Every 6 MonthsIn 2007, if you check your car insurance rates in January, make sure your check them again in June. 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! Tickets or no tickets, you’re a different driver than you were last summer. Get updated quotes and see what your individual savings could be.
2. Select Higher DeductiblesSimply 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 InstallmentsAdditional administrative fees are commonly applied to payments when you split your premium in to 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 DiscountsThe 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 DrivingMost 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 savings discount.
6. Don’t Overpay for TicketsUnfortunately 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 DiscountMany 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 Overpay for Your Unnecessary CoverageYou 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 DiscountStudents 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 LessMany 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.
*National average savings information based on InsWeb 6-month policyholder survey data from 4/27/05 to 7/4/05.

Homeowners Insurance and the Family Dog

Dogs have become an important part of the American family; considering that 63% of all households have at least one dog. Although dogs bring priceless memories and convenient protection, the costs of owning one are certainly no secret: food, veterinary bills, treats and even kennels. Dogs however, have a classic hidden cost to home owners though; they can affect the cost of a homeowners insurance policy.
Just like adding a swimming pool to your homeowner's policy, owning a dog is a policy underwriting factor that insurance companies take very serious. Carriers aren't concerned that Fido will necessarily flood the house by chewing a garden hose or suddenly break every window in the house without cause, but rather that they will inevitably bite somebody. Simply put: dogs are liability risks to homeowners policies.
According to the Centers for Disease Control and Prevention, there were approximately 4.7 million dog bites in 2005 accounting for roughly $317.2 million in insurance claims. Who would know this more than the mail carrier? In 2004, the US Postal Service reported over 3,400 dog-related injuries — that's an average of 11 mail carrier injuries every day!
Homeowners and renters insurance policies typically cover dog bite liability, as long as your dog is disclosed to your insurance company. Insurers may charge more or even deny your application if you own specific types of dogs. These are determined by the frequency of dog bites for the breed, whether they are large dogs that can inflict a lot of damage, and the breed's general reputation. Some of the breeds that raise red flags for insurers are Pit Bulls, Rottweilers, German Shepherds, Siberian Huskies, Malamutes, Doberman Pinschers, Chow Chows, Great Danes, Saint Bernards, and Wolf Hybrids.
Adequately insuring a home with a dog is a common oversight by many homeowners. Some try to save money by omitting the information from the application, and others simply neglect to report the pet since they're already committed to an affordable policy. Don't be foolish, the only decision you can make is to disclose the dog to your homeowners insurance company since any claim will most likely be denied if you don't. Knowingly omitting relevant liabilities to your insurance company constitutes grounds for policy cancellation, which is certainly not in your financial interests.
You may find that adding a dog to your homeowners policy will be negligible to your premium, however, if the opposite is true, it's time to shop around for new coverage. Homeowners insurance rates can vary by hundreds of dollars between carriers, as extra charges for dogs can also differ dramatically from company to company.

Making Small Homeowners Insurance Claims

Beyond using homeowners insurance as financial protection against disasters, many use it like a checking account to alleviate the small “fix-it” burdens of owning a home. Although you promptly paid your premium, and your claim is completely legitimate, be aware that filing a claim can affect how much you may pay for insurance in the future and can severely limit the selection of companies that will be willing to cover you.
Quality homeowners insurance companies are there when you really need them; however, they don’t like claims—it impacts profits. With much controversy, some carriers are becoming more unwilling to insure homes with any claims, regardless of the extent of the damage. Consequently, it’s not unheard of for the policyholder that made a claim to experience dramatic increases in premiums or to simply receive a heartless non-renewal notice. Unfortunately, given the recent natural disasters, the affordability of homeowners insurance has become a privilege for those who don’t make claims.
Aside from the consequences of making a homeowners claim, understand the fundamental purpose of homeowners insurance: it’s intended to protect you from truly devastating financial disasters that disrupt your quality of life. From a very simplified perspective, homeowners insurance is better suited for a tree through a roof rather than a branch through a window. After accounting for rate increases and the time needed to find a new carrier, small claims can easily exceed the cost of the actual damage. Prepare for the decision of filing a claim or paying out-of-pocket ahead of time by determining the amount you are willing to pay yourself. Deductibles are an easy place to start with this exercise. If you are able to increase your deductible from $500 to $1000, then the decision to make a claim can be as simple as: “Is the damage more expensive than my deductible?” Incidentally, increasing your deductible from $500 to $1000 could save you up to 25% on the price of the premium, so if you are really prudent, you could put those savings away in an account to pay for a small claim in the future.
Just as your driving record shows all of your accidents and tickets over a period of time, your home has a similar record of historic homeowners insurance claims. Known as CLUE (Comprehensive Loss Underwriting Exchange), most insurance carriers subscribe to this database in order to maintain and verify underwriting information. In the same manner that your driving record can affect your desirability to a new employer, insurance claims on your home can travel far beyond just the price of insurance. If you ever decide to sell your home, prospective buyers are likely to review the claims history since they will inherit its “less than perfect” record if they decide to purchase the home.
Although it’s always wonderful to save money, paying out-of-pocket for what seems like a minor claim is not a hard-and-fast rule. When the event that affects your home involves liability for another party, where the smallest possibility of a lawsuit looms, protect yourself by notifying your insurance company immediately. Even if the person injured on your property passively excuses the situation, be aware that you are still subject to the risk of his/her long-term injury and corresponding lawsuit

The Science of a Fender Bender

Oh my goodness, I just hit that car!” “How much is this going to cost me, and what’s going to happen to my insurance?” In the heat of the moment, these are the instinctual thoughts of any driver who’s had the unpleasant experience of a fender bender. Even the smallest and most innocuous auto collision can have lasting financial repercussions — regardless of fault. What’s a driver to do?
There is an abundance of misinformation floating around the Internet that will convince you why you should pay out-of-pocket for small fender benders — especially if you have any previous accidents or moving violations on your driving record. At the scene of a collision, don’t be so quick to financially resolve the accident by writing a check or accepting the other driver’s available cash on hand.

There is a reason that your state requires a certain level of car insurance: car repairs always have unexpected costs and personal injuries sometimes take unforeseen turns towards chronic physical injury. If you choose to not report an accident to your insurance company, you are taking an uncalculated risk that you are probably not prepared for. If the other driver chooses to sue you months later, your failure to report the accident might cause your insurer to refuse to honor the policy. Imagine the financial and legal challenge of taking on an insurance company all by yourself.
Auto accidents are expensive and inconvenient; however, having the lowest possible deductible probably isn’t going to make a difference in the long-term costs of such an event. Instead, you should consider increasing your deductibles to lower the overall cost of your premiums. It’s one of the best ways to save on your car insurance. Yes, a collision will be a little more expensive, but you’re probably not going to experience enough accidents to justify the forgone savings. If you’re a safe and responsible driver, save on your overall premium, not on the out-of-pocket costs in an accident.
As with anything, preparation is the key to successfully navigating the administrative headaches of a fender bender. Always have a pen and paper readily available next to your proof of insurance. You’ll want to collect the names and addresses of all drivers, passengers, witnesses, and law enforcement officials involved; in addition to license plate numbers, the make and model of each car, driver’s license numbers, insurance information, and as much scenario detail as possible. There are two points of wisdom that strongly support any resolution that most people overlook: 1.) Never admit fault, and 2.) Have a disposable camera handy to take undisputable images of the scene. In any type of auto accident, everything happens in a flash and “hindsight is 20-20”.
If a fender bender has bruised your driving record and you are suffering from what seems to be unreasonable premiums, don’t be a prisoner to your insurance company. There are companies that specialize in insuring high risk drivers with reasonable rates. To find them you must shop around and compare multiple quotes from multiple companies. The same policy can vary by hundreds of dollars from company to company.

Term Life Insurance That Pays You for Living: Return of Premium

Do you ever really think about the money that people spend each month for life insurance and the irony surrounding it? Think about it, you pay each month into something that will never benefit you personally. If you outlive your term, then you paid all that money "for nothing," and in the event you don't, then you aren't around to collect. Well, if this scenario just doesn't seem to sit well with you, then you may be happy to know of a different kind of life insurance policy called: a Return of Premium Term Life insurance policy.
Return of Premium (commonly known as ROP) policies, while a bit more costly, offer the benefit of returning your paid premiums if you are still living when the policy term is up. They also provide the same benefits of a term life insurance policy; namely offering you the choice of your term length and policy amount.
Originally, ROP term life insurance was designed only to refund the policyholder at the end of the chosen term (for example, 20 or 30 years) if the policyholder outlived the term. As the product has matured, there are now several variations that allow policyholders to receive partial refunds by canceling the policy several years into the term. For example, if a policyholder selects a 20-year ROP product, he/she may be able to receive a 50% refund for paid premiums at the end of the 15th policy year. Graduated refunds may be received down to the sixth policy year; no refunds will be returned if the policy is cancelled before the end of the fifth policy year.
ROP term life insurance offers consumers options. Price-wise, it usually falls in the middle of less expensive pure term life insurance products, and more expensive (and often confusing) permanent or whole life insurance products. It offers the same benefits as traditional term life insurance, while offering consumers the added bonus of getting their paid premiums returned to them if they outlive their policies; or receiving partial returns if they find they have a greater need for the money partially through the policy’s term.
InsWeb’s ROP term life insurance offerings are most competitively priced at a 30-year term, where a healthy 35 year old male can get a $500,000 ROP policy from one of our top companies for as low as $68.72* a month (compared to $44.63 a month for a comparable traditional term life insurance policy). The difference between the 2 premiums is only $24.09 a month; however at the end of the 30-year ROP policy the owner could get back up to $24,739.20! And according to industry averages, this rate would still be significantly lower than purchasing a permanent life insurance policy, and again offers the consumers the benefit of choice offered by term life insurance.
*Quotes based on a composite of participating carriers, which have at least an A- rating by A.M. Best. Rates effective as of 1/31/2006.
InsWeb Life Insurance Learning CenterInsWeb's quick and easy way to find affordable term life insurance

4 Ways Most People Overpay for Car Insurance

Tax-Time: you’re either waiting for your gravy train tax refund, or you’re fearing the event of paying even more to Uncle Sam. Car insurance can take on a similar dichotomy, but the difference is that you don’t get a refund for overpaying for coverage — it just renews and overcharges you until you find a more affordable policy. Most people don’t see this, and miss out on hundreds of dollars in savings that could be used like a big fat tax refund.
Auto Insurance Quotes are Not Final: How to Make Them LowerWhen you shop and compare multiple auto insurance quotes, recognize that even if the quotes are about the same as your current policy, or lower for that matter, they can still be even lower. There may be too much coverage, or extra options tucked into the quote that you really don’t need.

Although higher limits provide you with greater protection against possible losses, you may be carrying limits that are not in line with the value of your total assets and your lifestyle. As you review your quote, consult with an insurance agent before making any final coverage decisions. Additionally, you may be a member of an auto club that provides towing and labor protection, therefore, paying for it in your auto policy could be unnecessary. The same may hold true for car rental coverage: do you really need it?
Trying to Make “Accidents” More AffordableMany drivers make the mistake of carrying the lowest deductibles in order to help offset the costs associated with filing a claim. The fact remains, 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, you could be spending the same out-of-pocket amount regardless. Save on your policy, not the accident; raise your deductibles if you can afford to.
Paying for the Policy in Monthly InstallmentsJust like any bill, it is common to pay for insurance in monthly installments, either by check or automatic bank withdrawal. Be aware that additional administrative fees are commonly applied to payments when you split your premium into installments (i.e. monthly, semi-annual, annual). A monthly fee of even $7 can add up to $84 over 12 months.
Overpaying for Tickets and Moving ViolationsPerhaps you deserve a higher rate for your driving record, but don’t let the insurance company unduly punish you. Although having moving violations on your driving record can limit your selection of insurance companies, don't believe that finding affordable car insurance is as intimidating as appearing in traffic court and paying fines. To the contrary, there are companies that specialize in insuring higher risk drivers at reasonable prices. The only way to identify such companies though, is to compare multiple quotes from multiple companies.
Don’t count on your tax refund to save money! Instead, you may be able to save hundreds by simply taking 10 minutes to analyze your auto insurance policy. Even if last year seemed uneventful, the chances are good that your individual circumstances have changed enough to qualify you for lower car insurance rates. And even if nothing changed on your end, many large insurance companies may have reduced their rates since you last shopped.

Spring Home Improvements: Adjusting Your Homeowners Insurance Accordingly

With the first warm days of the year upon us, spring always brings a renewed motivation for making improvements to one’s home. Whether you’re a “Hardware Store Warrior” building a new deck yourself, or if you’re simply hiring a contractor to add a patio, don’t forget to check what impact such improvements may have on your homeowners insurance policy — before you begin!
Home improvements can quickly add to a home’s value. Accordingly, you should do a quick comparison of the difference in homeowners insurance quotes with the improvements. It is not until a disaster strikes that many homeowners realize they haven’t reevaluated their coverage to include any improvements made to the house.
After undergoing the tragedy of losing your home, you don’t want to also find out that your insurance policy covers only the pre-improvement value of your home. The difference in replacement value can be very significant. Trusted Choice® reports that nearly 40% of homeowners who make improvements to their homes do not update their homeowners policies to reflect these changes.

As the value of your home increases, you may experience a modest increase in your homeowners insurance as a result. There are many discounts available to you that may help offset any such increase. Have you added any new security devices to your home in the last year; perhaps deadbolt locks, window locks, a burglar alarm, or even smoke detectors? Insurance companies highly value the protection afforded by these types of safety devices and are known to reduce premiums by as much as 20% as a result. In the same fashion, you may also experience additional savings on your policy if you upgrade your home’s heating, plumbing, or electrical systems.
There are additional benefits to comparing homeowners quotes before any renovation. If you adjust your policy before the work even begins, you may be covered for any building materials you have in your house during the course of the project. With the increased heavy duty labor, you may be exposed to an increased level of liability and risk of home disasters. Incidentally, it’s a good idea to take “before, during, and after” pictures throughout the renovation. In the event of a claim, you may be required to provide justifiable proof. Likewise, it is also imperative that you make sure any contractors are properly licensed and insured with all corresponding documentation.
Beyond the home improvements at hand, comparing multiple homeowners quotes is an exercise that can uncover new discounts and savings. You should review your homeowners insurance policy at least every 12 months, or more often if your needs change. Significant discounts and savings may have become available since your last policy review. Even if nothing changed on your end, many insurance companies may have reduced homeowners insurance rates since your last review.

Don’t use life insurance to pay estate taxes?

Now there’s an interesting statement coming from an author of a blog on life insurance!
It was just to catch attention but there is an interesting alternative method. Instead of using the life insurance to pay the estate taxes. Have the life insurance go to the children (estate tax free if set up properly by an attorney in in an ILIT - Irrevocable Life Insurance Trust), then have the balance of the estate placed in a Charitable Lead Trust. A Charitable Lead Trust (CLT) is a unique instrument where the interest on the principal is used by the charity for a number of years. At the end of those years, the principal (in this case one’s estate) goes to the children estate and income tax free. If the charity chosen was a family foundation, then the children can direct funds to help social, health, community and/or religious programs.
Thus you create three “inheritances”: 1. At death through ife insurance 2. At the end of 15 to 20 years where the original amount (plus any earnings in excess of the federal rate) go to the heirs estate and income tax free and 3. An inheritance to help society that can be directed by the children through a foundation. In this solution, no estate taxes are paid. One has, in a way, redirected taxes towards one’s favorite charitable causes. You’ve been able to “dial in” a tax free benefit at death, delay a second inheritance which would have been likely planning anyway (and make it tax fee as well) and help your children contribute to society through your legacy.
Compare this to the most common solution (which is still better than no solution). Life insurance is purchased through an ILIT as an estimate of estate taxes. At death, the trust with the insurance proceeds, buys assets from the estate equal to the estate taxes and the estate pays the taxes.
Why not have it all using the “three inheritance” solution. The experts at lifeinsure.com can discuss these alternatives with you in concert with your legal and financial professionals.