Discounts available in auto insurance

Are there discounts available in auto insurance? Can I get cheap car insurance? What is the cheapest car insurance option? - Some of the common questions asked by people who want to buy car insurance.

We are living in a world where people are always seeking to pay less than what they are supposed to pay – they are always looking for bargains. This is what makes marketers use discounts, both quantity and cash discounts, to drive sales of their goods and services. By definition, a discount is a deduction from the price of a good or service given to encourage advance payment, prompt payment or to a special group of customers.

Players in the insurance industry are also offering auto insurance discounts in a bid to increase subscriptions to their different insurance policies. Below is a list of the discounts available in auto insurance (we are trying to compare car insurance discounts available):

NB: Although the types of discounts offered across the United States are identical, the rates vary from one insurance company to another. Even within an insurance company, the discount rates of a particular discount offered could vary from customer to customer. The rates given in this article are industry averages and not industry standards.

1. Good student discount


Usually, teen car insurance rates are high. During their first years of driving, teens fall under the high-risk class of drivers. Taking advantage of the good student discount goes a long way towards reducing the cost of teen insurance.

With the good student discount, a young policyholder saves up to 25 percent if he or she attains good grades in college. It usually applies when your teen is a full time college or high school student and maintains an average grade of B or above. The auto insurance discount lasts even after graduation from college; it is usually until the policyholder gets to 25 years.

As a parent, you need to furnish the insurance company with an academic achievement proof. The proof could take the form of a form signed by college authorities or a grade card. For home-schooled students, one may use grades from a standardized test like ACT, SAT or PSAT.

2. Multiple automobile discount


Here, you save up to 20% when you have 2 or more motor vehicles in the same household insured by individuals who are related. General, the discount is for individuals who insure more than one automobile with a particular insurance company.

3. Multi-policy discount


The discount is also known as multiple line discount. With the discount, you save up to 17% when you insure both your automobile and home with an insurance company. You save by bundling you auto, and home insurance.

4. Good driving discount


With this discount, you save up to 10 percent if you have gone for at least 3 years with no at-fault auto accidents and with no moving violations. As the name implies, the discount applies to “good drivers” only. Individual insurance companies have different criteria for deciding who a good driver is and who is not. In some companies, the auto discount is referred to as safe drivers discount or accident free discount.

Safe driving could sound simple and obvious but it is not. Safe driving involves caring for your car, driving smoothly in different conditions, and reducing distractions. This is worth the effort since you can save up to 10% in form of discounts.

5. Steer clear safe driver discount


This discount is open to under 25-years who have completed steer clear courses offered by an insurance company and have up to 3 years of no moving violations and no-fault accidents. With the discount, you save up to 15 percent.

6. Defensive driving discount


You save up to 10 percent upon completion of an approved driver safety course. In most states, you may have to be 55 years and above to participate. A good number of states offer defensive driving or accident prevention classes. The courses are certified by the state’s DMV. The good thing is that these courses are highly accessible – you can take the course at a local driving school, or online.

The courses include a review of environmental hazards, traffic laws, basic auto maintenance, defensive driving tactics, and alcohol and drug education. To earn the discount, you must pass the certified courses with a set passing grade.

7. Anti theft auto insurance discount


According to the Federal Bureau of Investigations, every 42 seconds, a person loses a car to theft in the United States. In the year 2010, the U.S lost about 750,000 cars (worth $4.5 billion) to theft. To reduce cases of theft, you need to take some anti theft steps like having an anti-theft gadget installed in your car. To encourage this, insurance companies offer their customers with an anti-theft discount, which allows the policyholder to save up to 5 percent.

When it comes to anti theft discounts, different insurance companies have different requirements. Some require that you have a factory installed anti-theft device while others allow you to have one installed after the car purchase. The discount rate varies with the type of device installed.

8. Nationwide schemes discounts


In this scheme – only offered by some insurance companies – people living with you could become entitled to benefits and discounts you are entitled to. You are allowed to share your discounts with your children, parents, cousins, aunts and anyone else living under your roof. The commonly shared discounts are the multi-policy and the multi-car discounts.

9. Drive Safe & Save™ Discount


Here, you get up to 5 percent saving when your car is safely driven or driven infrequently. To qualify, you must be ready to share certain driving information with the insurance company. Since the discount is based on your car usage, the less your car is driven, the more you save. The rates of this discount vary from state to state and from one insurance company to another.

To get the most out of the auto insurance industry, you need to compare car insurance discounts available. You can combine the insurance discounts by checking on the qualification requirements for each and trying to meet them.

Most insurance companies let you buy car insurance online. These companies also let you check for any auto insurance discounts that you qualify. You get to do this online at the comfort of your living room. Alternatively, you can visit you local insurance agents to check on the discounts you qualify for.

Common Types of Auto Insurance Coverage in the US

What are the common types of auto insurance coverage in the US? Let us compare car insurance options available so that you can end up with the cheapest car insurance.

By definition, auto insurance (also known as car insurance, vehicle insurance or GAP insurance) is insurance cover obtained for trucks, cars, and motorcycles. Auto insurance provides protection against damages and injuries that arise from collisions. Additionally, the insurance covers liabilities arising from such collisions. Having the right insurance cover for your vehicle goes a long way towards ensuring peace of mind in cases of accidents. Knowing which insurance package covers what is very important for every car owner or any individual who intends to acquire a vehicle. You can only know this with the help of a car insurance comparison article like this one.

In the US, each of the 50 states has different regulations for vehicle insurance. For this reason, we are going to look at general information on the types of auto insurance coverage in the US; the descriptions given below do not, in any way, amount to statements of contract.

1. Auto liability coverage


In this type of coverage, the insurance company undertakes to compensate damages if the insured party is legally responsible for accidentally damaging a third party’s vehicle, destroying a third party’s property or injuring a third party in auto accident. Auto liability coverage can be categorized into two groups namely:
  • Bodily injury liability – covering pain & suffering, medical expenses, lost wages and any other special damages.
  • Property damage liability – covering damaged property and any loss of use rendered to the property.

Since auto accident cases involve court battles, this type of insurance coverage covers legal defense and court costs.

Different states in the US dictate the minimum amounts auto liability coverage required. Usually, there is no regulation on the maximum amounts.

2. Personal Injury Protection (PIP)


In the US, PIP is a mandatory cover in most states. In these states, the coverage varies from one state to another in terms of coverage. What is covered in one state may not be covered in another. Generally, this type of insurance coverage covers reasonable and essential medical expenses incurred by the party covered in treatment due to a car accident. The insurance may also cover lost earnings, rehabilitation, funeral expenses, and childcare (if the parent is disabled).

In most states, PIP applies the principle of subrogation, where the company compensates the insured regardless of liability and later claims what it has paid from the third party’s insurance company. This leaves the insured party in a favorable position since he or she will not have to wait until the court battles are over to get their medical bills cleared.

The bad thing is that this coverage is not mandatory in all the 50 states of the US. Even so, you as an individual should get this important cover voluntarily.

3. Medical payments coverage


Medical payments coverage is available in most states of the US and covers medical bills for bodily injury arising from covered accident. The cover has a coverage limit. The insurance company undertakes to pay reasonable and necessary hospital and funeral expenses for the covered party. The expenses should be related to a vehicle accident. The good thing is that the insurance provider undertakes to pay medical bills regardless of who is at fault.

Although the package may vary from one insurance company to another, most insurance companies will provide cover for you and all individuals in the car during the accident. Parties typically covered include Policyholder, Policyholder’s relatives (must be in the same household), authorized drivers of your vehicle (other than yourself), and your passengers. Most medical payment covers insure the policyholder even when he is not traveling in his insured car.

4. Collision coverage


Collision coverage is whereby an insurance company undertakes to compensate the insured party in case his/her car sustains physical damage arising from collision. The insurance company will compensate for damage your car gets when – it hits another car, is hit by another or it rolls/flips over.

As the name suggests, collision coverage covers damage arising from actual collisions. The coverage does not cover vandalism to or theft of your vehicle. If another driver was at fault and his or her insurance company compensates you, collision coverage will not reimburse you. This is simply applying the principle of indemnity.

The level of coverage by the insurance company will highly depend on your policy’s terms and conditions. Different policies will have different terms thus different levels of coverage. Depending on the level of damages your car sustains from the collision, the insurance may help you repair the car or help you acquire a new one. Before any compensation, you must pay your deductible.

5. Compressive Coverage


This is a type of insurance coverage compensates for damage to or loss of an insured car. The damage should not be arising from vehicle rollover or damage. As the name implies, comprehensive coverage is all-inclusive. It covers a wide range of losses and damages. Some of these include wind, fire, hail, flood, vandalism, hitting an animal or theft.

In some states of the US, comprehensive coverage is optional. Although optional, the coverage is necessary.

6. Uninsured motorist coverage


In uninsured motorist coverage, the insured party is covered against injuries sustained in a car accident caused by a driver who has not taken out limited liability cover. The main aim is to protect you from drivers with no insurance cover in case of an accident.

The coverage varies from one state to state and highly depends on policy provisions. In some states, the insurance cover may compensate property damage. Mostly, the insurance covers body injury to you or your passengers, and auto repair expenses.

7. Underinsured motorist coverage as a type of auto insurance coverage


In underinsured motorist coverage, the insured party is covered against injuries sustained in an auto accident caused by a driver with insufficient liability insurance. The main aim is to cover you from drivers with insurance, which is not enough to compensate for your losses.

Like uninsured motorist coverage, under-insured motorist coverage varies from one state to another and depends on policy provisions.

8. Rental reimbursement coverage


In case of an auto accident rendering your car unusable, the insurance company covers expenses incurred in renting/hiring a car. There are daily limits and allowances applicable, which vary from one state to another.

9. Emergency road service coverage


In this type of coverage, the insurance reimburses all the expenses incurred in towing your auto due to a breakdown. Towing limits and allowances vary by policy provisions and by state.


NB: The information contained above is a general description of types of auto insurance coverage in the US and should not be taken as statements of contracts. the main aim of the article is to compare car insurance so that you can end up with cheap car insurance.

Term Vs Whole Life Insurance: which is the cheapest life insurance option?

Term vs. whole life insurance: which is the cheapest life insurance option? To answer the question, discover the pros and cons of each.

Basically, life insurance is divided into two: term life (or temporary) insurance and whole life (or permanent) insurance.

With term life insurance, the insured makes premium payments for a specified period (20 or 30 years). If he or she dies within the specified term, the insurance company pays all the policy benefits to the dependents.

With whole life insurance, the policy remains in force until the policyholder’s death (provided he or she is paying premiums). In the event of the insured’s death, the beneficiaries receive all the policy benefits. In addition to the life cover, part of the money paid as premiums accumulates as cash value. You can use the cash value as collateral for loans or use it as a retirement saving plan.

To compare life insurance policies exhaustively, let us look at the pros and cons of each.

Pros of Whole Life Insurance

1. Lifetime coverage at a set premium

As the name implies, a whole life insurance policy offers you protection for your whole life. The good thing is that premiums in this form of insurance are set /fixed.

With fixed premiums throughout your life, planning becomes easy. You are assured of the amount of premiums you are supposed to pay per year.

2. Cash values

Besides the life cover, the policy helps you build up a cash value. The amounts paid in excess of premiums are credited to a cash value account. With time, the cash value builds up and can be used by the insured during his/her lifetime. The cash value can also be used as collateral when taking out a loan or mortgage.

Even if you stop contributing premiums towards the policy, the accumulated cash value is yours to keep.

3. Guaranteed growth on cash value

The most attractive feature in whole life insurance is the cash value. The cash value grows every year; you are assured of this growth.

4. Loan provision

With whole life insurance, the policyholder has an option of borrowing from the accumulated cash value. The interests charged are relatively lower than those charged by banks are.

5. Death benefits

Regardless of when you die, the beneficiary in a whole life policy receives the face value of the policy. For instance, if you die a few years after you have taken out a life insurance for over 50, your dependents will get the face amount of the policy even though you had not contributed for long.

6. Tax benefits

Unlike other sources of income, proceeds from a whole life policy are paid out on a tax-free basis; your beneficiaries do not pay any form of taxes on the insurance income received.

7. Cash value is protected from creditors

In the event of lawsuits from your creditors, money in whole life policies can’t be touched. The creditors may sell all the assets you own but the cash value in policies is completely protected from them.

8. The policy pays a dividend

A major advantage of a whole life policy is that you, the policyholder, can enjoy the fruits of the accumulated cash value while you are alive. The insurer pays a dividend to policyholders in whole life policies. The amount of divided will vary with the amount of accumulated cash value and prevailing economic conditions.

If you buy life insurance for over-50 today, you will enjoy your dividends until death. You can enjoy the dividends for over 50 years depending on how long you live.

Cons of Whole Life Insurance

1. The insurance is expensive

Generally, premiums in a whole life policy are expensive. Compared to term insurance, the fees and commission in a whole life insurance are excessively high. Most policyholders do not recognize the fees since they are charged from their return on investments.

The high fees are what forces most young people to walk around under-insured or completely uninsured. However, insurance over 50s is common. Americans who are 50 years and beyond value life insurance more than their younger counterparts do.

2. Inflexibility

Your financial status and that of your dependents change with time and thus the amount of your insurance needs. Unfortunately, whole life insurance cannot be amended accordingly. You stick with the coverage you bought on the onset.

3. Complexity

Compared to term life policies, whole life policies are more complex. With this complexity, only an insurance expert can tell a good deal from a bad one. In most cases, this complexity favors the insurer.

4. Outstanding loans reduce policy’s death benefits

Two main pros of whole life insurance are based on the ability to use the policy as collateral and ability to take out a loan from the accumulated cash value of the policy. In the event of death when there are outstanding loans attached to the policy, the policy death benefits reduce significantly.

Pros of Term Life Insurance

1. Low prices

Term insurance is arguably the cheapest life insurance option. Provided you are in good health, you can get term insurance worth hundreds of thousands of dollars for as little as a dollar per day.

2. Guaranteed premiums

The premiums are fixed throughout the relevant insurance term. After the expiry of the term, the premiums may go up for continued coverage.

3. Flexibility

You can change your coverage accordingly as your insurance needs change. Additionally, this form of life insurance has an expiry date that allows you to reconsider your insurance needs before taking up another term.

4. Simple

Compared to whole life policy, this form of life insurance is very simple. Anyone can understand the policy.

5. No extra fees

A major disadvantage of whole life insurance is existence of other charges due to the investment feature of the policy. Since term life insurance is very simple, there are no other charges apart from the normal premiums.

Cons of Term Life Insurance

  1. In term life insurance, there is no cash value build up. A saving feature lacks in this form of life insurance.
  2. This is a temporary form of insurance; does not provide permanent protection.
  3. As you get older, term insurance becomes expensive. When you hit 50, consider whole life insurance for over 50.

To land cheap life insurance option, compare life insurance options available in the market.

Online Quotes vs. Local Agent for Life Insurance

Online quotes vs. local agents: which is the cheapest life insurance option? Get to know the pros and cons of the two approaches, now!

After you have done all the research as regards to the form of life insurance that suits you and the amount of coverage you need to carry, it is now time to compare life insurance options. Comparing will let you buy cheap life insurance.

When buying a life insurance policy in the US, you have two options:
  • Buy life insurance online, or
  • Buy from a local insurance agent

Both options are practicable and each has its own pros and cons.

Let us compare the life insurance options. To do this, we shall consider the pros and cons of each.

Pros of Purchasing Life Insurance online

1. Comparison of insurance rates is easy

With the internet, you can easily compare life insurance quotes from different insurers. Within minutes, you can have quotes from over 10 life insurance companies. After comparing the quotes, you can easily choose the cheapest life insurance provider.

2. Best rates

With online quotes, you are dealing with the insurer directly. You eliminate the expensive brokers that come between insurers and customers when dealing with local agents. Since agent fees are eliminated from the transaction, you get the best rates for your policy.

3. Free online quote (24/7)

With the internet, you can get a free online quote any time of the day. Although some local agents offer free life insurance quotes, they obviously do not offer a 24-hour service.

4. Fast quotes

Online quotes are such a time-saver. From wherever you are in the US, you can easily get a quote at the click of a button. Within minutes, you have your over 50 life insurance quote with you.

Assuming you are over 50 years old and wants to compare life insurance over 50 in the US, the online quotes will be of great help.

5. Convenience

A major pro of an online quote is convenience. With local agents, you have to visit the agent physically to get a quote. With online quotes, you get the quote at the comfort of your living room or office.

6. Variety

With the internet, you get multiple policy quotes within minutes. The multiple quotes offer you a variety to choose from.

7. No pressure from sales people

Under the sales people pressure, most people end up making very poor decisions. With online quotes, you are not dealing with any sales person directly.

8. Efficiency in processing

With online quotes, you fill out online forms that are clear-cut. In case of errors when filling the form, you instantly get a message showing the errors you have made. With local quotes, you do not easily detect errors.

9. Online proposal tracking

The problem of following up with agents and sales person to see at what stage your proposal is at, a common problem with local quotes, has been eliminated with online proposal tracking. You no longer have to call sales people; all you need is an internet-connected computer and you are good to go.

10. Substantial information

Information is power. With information available on reference websites and on the sites of online dealers, you can easily clarify the options that suits your life insurance needs.

Cons of Purchasing Life Insurance online

1. Susceptibility to internet cons

With the increase in popularity of the internet, we have seen an increase in internet scammers. The cons can trick you into contracts that don’t exist. You get involved with companies that do not exist.

2. Exposure of your credit card information

When getting online quotes you risk revealing your credit card information to scammers. With this information, the cons can drain your account within seconds.

3. Lack of personal touch

With online quotes, specific concerns and queries are not addressed. Most of the information available on the insurer’s website is general. This makes online quotes completely lose a personal touch.

4. One must be conversant with the internet

Although almost everyone in the US is computer-literate, not everyone is completely up to date with the internet. For the elderly, getting an over 50 life insurance quote online becomes a challenge.

5. Little to no support

After entering into an insurance contract through online dealers, you receive little to no support. Most dealers aim at only getting the initial commission they receive from the policy provider. To be on the safe side, get the policy from the insurer’s official website.

Pros of Purchasing Life Insurance from a Local Agent

1. Personal touch

Although nagging, local sales person breathe life into life insurance. By talking to real people, you get convinced that you need that cover.

2. Working relationship

You develop a working relationship with the local agents. In case of any problem, you can comfortably consult them.

3. Personalized solutions

Specific requirements, queries, and concern are addressed in a more personalized manner.

4. Access to benefits and discounts

Most life insurance companies do not disclose discounts available; they wait until you enquire. With local agents, you can easily ask for any discounts available.

5. Instant clarifications

In case of unclear issues in the policy, the local agent will offer you instant clarifications. You do not have to send emails and wait for days to get a reply (as it happens with some online dealers).

6. Customized package

Since you are dealing with the local agent face to face, you have a chance to bargain for a customized life insurance package.

Cons of Purchasing Life Insurance from a Local Agent

1. Inconveniences

Getting a quotation from a local agent is the most inconveniencing activity ever. You have to physically visit the agent (remember to do this within working hours). If you find other customers waiting, you will have to wait on the queue until your turn comes.

2. Appointments required

When dealing with local agents, you need to set an appointment. Unlike online quotes, you do not get a quote any minute you feel like getting one.

3. Limited variety

When purchasing life insurance locally, you do not have the time to walk from agent-to-agent comparing quotes. This is only possible with online quotes.

Imagine a 55-year old man who wants the cheapest life insurance for over 50, will he be able to move from agent to agent (physically) to get quotes? I am sure he won’t, but he can easily do this online.

4. Limited freedom of comparison

When you do not have a variety from different dealers, you freedom of choice is interfered with.

Life Insurance Discounts Available

Did you know that you could save on insurance cost by taking advantage of discounts? Learn more about the life insurance discounts available, now!

Like all other buyers, insurance buyers are always looking for ways to save on the cost of insurance. The buyers want cheap life insurance – enough coverage at a relatively low cost. To facilitate this, insurance companies around the world have come up with different types of life insurance discounts. The discounts are aimed at enticing people (young and old) to buy life insurance at a saving.

NB: In the US, discounts are only available where state regulations and laws allow. Even where the law allows the insurance discounts, they are subject to eligibility requirements. The rates of discounts and eligibility requirements vary from state to state and from one insurance company to another. Life insurance companies set their own rates of discounts and eligibility criteria. You should be aware of this when you compare life insurance quotes.

The following are the common discounts in the life insurance industry:

1. Discounts For Non-Smokers

Tobacco smoking is known to have numerous health effects like mortality, cancer, pulmonary damage, cardiovascular implications, renal damage, and influenza among others.

In life insurance, health status is a very important factor. Your health conditions highly affect your mortality. Studies have shown that Tobacco smokers lose an average of 13 to 15 years of life.

Since non-smokers are at a lower risk of dying, life insurance companies give them a non-smokers discount as a token of appreciation.

In addition to the non-smokers discount, there is the competitive smokers’ discount. This is for the infrequent smokers.

2. Combined Cover Discounts

Like with auto insurance, if you combine your over 50 life insurance policy with other policies offered by the same company, you are likely to receive some discount.

For instance, if you take out a term or whole life insurance policy and a life annuity from the same life assurance company, you are likely to get a discount from the company.

Combining policies offered by a life insurance company not only saves you time but also earns you discounts.

Again, this will depend on the insurance company’s policies and eligibility criteria.

3. Discounts On Fortnight Premium Payments

In most life insurance companies, you get a fortnight discount off the fortnightly premium. The main aim is to encourage people to switch to fortnight premium structures.

4. Discounts On Monthly Premium Payments

Although annual premium structures are the most common in over-50 life insurance, insurance companies encourage policyholders to take the monthly structures by offering a discount off the monthly premium.

5. Discounts For Annual Premium Payments

In some life assurance companies, you get a discount for paying your premiums annually. Usually, the discount is included when calculating the annual premium and reflected in the premium quotation.

6. Large Sum Insured Discount

Generally, the larger the sum insured in life insurance, the larger the discount you enjoy. This discount borrows from the quantity discount where consumers are offered discounts when they purchase in large quantities.

The amount of discount will vary from one insurer to another. Life insurance comparison will help you land the best insurance discount.

7. Family Discount

In most life insurance companies, if an immediate relative buy life insurance online, both of you enjoy a discount. The discount is commonly referred to as family discount.

This discount applies to the premium payable.

For instance, if you and your other half each buy life insurance policies of a certain sum, you will enjoy a family discount in addition to other discounts such as the large sum insured discount.

The amount of discount and the eligibility criteria will vary from one insurer to another.

8. Veteran Discounts

Another life insurance discount you will find in the US is the veteran discount. Veteran discounts are benefits veterans are entitled to through special life insurance plans.

To benefit from the veteran discounts, you must verify your record of service. Remember, the discounts are specifically designed for veterans.

The above are only some of the life insurance discounts you will find in the US. Other discounts, unique to particular life insurance companies, exist.

Before you buy life insurance (especially life insurance for over 50), find out the discounts offered by different assurance companies. The discounts are the best way to save on insurance costs.

Some insurance companies do not disclose the available discounts until you ask. Always enquire the available discounts from the insurance broker or agent.

Tip: Always compare life insurance. Before you buy a life insurance policy, always compare the premiums charged and the discounts offered by different life insurance companies. With the internet, life insurance comparison should not take up much of your valuable time. Within a few minutes, you can compare cheap life insurance over 50 options available in the US.

Over 50's Life Insurance Coverage Options In the US

Life insurance is a necessity for people above 50 years; compare life insurance over 50 options available.

Are you looking for the cheap life insurance? Compare life insurance options available. To start you off, I have some over-50 life insurance advice and comparison.

Life insurance (commonly referred to as life assurance in commonwealth nations) is an agreement between two parties (the insured and the insurer), where the insurer undertakes to pay a specified sum of money (benefits) to a designated beneficiary in the event of the policyholder’s death. Depending on the insurance agreement, other events like critical illness or terminal illness may trigger the payment of benefits. In an insurance contract, the policyholder pays regular premiums or a lump sum of money.

Generally, life insurance helps provide your family members a grip in the event of your death. Although one can take out a life insurance policy at any age, it becomes a necessity when you hit 50 years. At 50 and beyond, you have dependants who are likely to experience financial difficulties in the event of your death.

In the US, several life insurance coverage options for over 50s life exist. Let us compare life insurance over-50 coverage options available.

1. Term Life Insurance Policies

Term life insurance (a form of temporary insurance) provides cover at fixed premiums for a limited period (the relevant term). After expiry of the relevant term, you have to either obtain further coverage with different conditions & payments or forgo coverage. In the event of the insured party’s death during the term, the beneficiary receives all the benefits.

A term life insurance policy is the cheapest life insurance for over 50. The coverage option comes with the following benefits:
  • Most insurance companies give you the possibility of converting to a permanent policy in future (regardless of health and age).
  • In most life assurance companies, you have a choice of 10-year, 20-year, or 30-year fixed-premium coverage options. This provides flexibility.
  • In case of your death, proceeds from a life insurance policy can help make rent and mortgage payments, pay funeral expenses, pay outstanding loans, cover childcare and more.
  • The premiums are fixed throughout the relevant term. The fixed premiums let you plan appropriately.
  • Some life insurance companies will offer ways to customize your policy. You can customize a policy with add-ons popularly known as riders.

2. Whole Life Insurance Policies

Whole life insurance is a type of permanent life insurance that covers the insured’s whole life and in most cases requires annual premiums into the policy.

At the age of 50 and beyond, life insurance companies classify you as a high-risk client. It is at this age and beyond when age-related diseases start creeping in. For cheap life insurance over 50, consider whole insurance because it carries the following benefits:
  • In the process of the long-term protection, you build up cash value. It is a saving plan that benefits you while you are living or your beneficiaries in the event of your death.
  • The 10-year, 20-year, or 30-year coverage options offered by most life insurance companies make the coverage simple and flexible.
  • Although the premiums are paid annually, they are fixed throughout the life of the insured. The premiums never increase thus making planning an easy task. The premiums will never increase in spite of changes in age & health.
  • Life insurance policies are customizable. To enhance your policy, most life insurance companies will offer you several supplemental covers.
  • Some life insurance companies pay dividends to whole life policyholders. The dividends increase the policy value or increase death benefits for the beneficiary.
  • In whole life insurance, death benefits are guaranteed.
  • You get tax savings in terms of deferred tax.

3. Universal Life Insurance Policies

Universal life insurance is a type of permanent life insurance common in the US. Under the policy, excess premium payments are credited to the cash value of the policy. The excess cash is credited to the cash value with interest every month, while a cost of insurance charge and other insurance charges and fees debit the policy.

Although there is a minimum contractual interest, the interest credited to the cash value is determined by the insurance company.

A Universal life insurance policy becomes the cheapest life insurance for over 50 owing to the following benefits:
  • The insurance policy features a long-term coverage option.
  • The policy guarantees a minimum interest rate, usually coming from the excess premium paid.
  • Flexibility – You have an option to change the premiums and thus the coverage amount. To increase the policy’s value, you can increase the premiums.
  • The policy can be supplemented with other policies (riders) to enhance it.

4. Variable Universal Life Insurance

Variable universal life insurance (VUL) is a form of permanent life assurance that gives you a balance between the potential of building up cash value and permanent protection. The policy has an underlying investment option.

Universal life insurance is a great over 50 life insurance for those who want to take a proactive approach to life insurance. You cover your life and build up cash in the process. The policy has a death benefit and an investment feature.

The variable component in the policy indicates that money is invested in separate accounts (like mutual funds) with varying values. The universal component in the policy indicates the flexibility the policyholder has in making premium payments.

When does variable life insurance come in handy?
  • When you want to accumulate cash, either for your own use or for your beneficiaries
  • When you want to invest but cannot tolerate the volatility of returns in the investment markets.
  • When you want to take coverage for a relatively long period
  • When you are able to pay premiums over an extended period

5. Survivorship Life Insurance

In survivorship life insurance (or second-to-die insurance), two people are covered and the benefits accrue only when the second person passes away. This type of insurance policy is an important part of an estate plan.

The survivorship life insurance policy lets you do the following:
  • Where assets are indivisible or difficult to divide, the policy helps equalize your estate among the beneficiaries.
  • With the policy, you are able to provide funding for your child and other dependants past your lifetime.
  • Survivorship policy ensures that funds are available for fees, real estate expenses, and taxes. 
 
Compare life insurance quotes for over 50 available and settle for the best. Remember, you can buy life insurance online.

Minimum Coverage: How Much Auto Insurance Coverage Is Enough?

In the recent past, we have witnessed a good number of insurance companies and insurance agents touting the following “State minimum coverage for less money!” This leaves most people with the following questions
  • What is minimum coverage?
  • What is the minimum coverage in my state?

Minimum coverage is the minimum amount of insurance the law requires one to get for their vehicle. This minimum coverage usually relates to liability and medical coverage. The amount of minimum coverage varies from one state to another.

The main reason why states set minimum coverage is to protect the insured party from cases of under-insurance. The main aim is to ensure full coverage of the insured party in case of an automobile accident.

Unfortunately, the minimum coverage is not always enough in common crashes. Sometimes an insured party finds himself or herself not fully covered in case of a car accident even when they have met the minimum coverage requirements. For this reason, it is advisable to get a cover higher than the minimum requirement. This ensures that you are always fully covered.

The following is a list of common auto insurance coverage options and their minimum and maximum coverage requirements. You could get one or several types of coverage for your car depending on your needs. Before settling for any single coverage option, make sure it will comply with your state’s laws concerning minimum coverage.

1. Liability for bodily injury coverage


This covers you against liability arising from injuries to a third party caused by your car in an auto accident. The minimum coverage for this injury varies from one state to another. The minimum may be as low as $20,000 per accident or $10,000 per person. Most auto policies stop at a high of $ 500,000 per accident or $ 300,000 per person for liability coverage. Again, this varies from one state to another. You need to check what rates your state has set for minimum coverage.

The amount of auto liability coverage you get should be enough to protect your car in case of an accident. The amount varies highly with the value of your vehicle. To be on the safe side, you could combine a number of policies covering different perils.

2. Liability for property damage


This is liability arising from damage caused to a third party’s vehicles or other property in the event of an auto accident. Depending on extent of damage, the compensation required by a third party could be so high and this is where the insurance company comes to your aid. The minimum coverage requirement for liability for property damage varies from state to state. Although having a Personal Umbrella policy may get you covered for excess costs, your insurance company may require that you get more than the minimum coverage to qualify for the Personal Umbrella Policy.

In most states, the standard policy is a minimum of $5,000 per accident and a high of $10,000 and more per accident. This could vary from state to state.

3. Personal injury coverage (PIP)


This coverage is for injuries you (or any other persons covered) sustain in the event of an auto accident. The insurance covers reasonable and necessary medical bills incurred by the insured party in treatment in the event of an auto accident.

In most states, the minimum coverage for personal injury is $15,000 per accident or person and a high of $250,000 or more. For some injuries, it is up to a maximum of $250,000 regardless of the selected limit.

4. Collision coverage


This coverage covers damage sustained by your own car in the event of an auto accident. Since you are covering your own car, the amount will depend on the vehicle you are insuring. However, you need to consider how large a deductible to take. (An auto insurance deductible is the amount of money you are required to pay towards repairs of your car before the insurance comes in to cover the rest.) The amount of deductible highly influences the premiums you are required to pay – the higher the deductible, the lower the premium. Generally, deductibles are between $250 and $1,000. Collusion coverage importance ceases with aging of the car.

Although State law does not generally require collision insurance, it is a very important coverage. The coverage is very important when the car is new and valuable but less important when the vehicle is old and of a lesser value.

5. Comprehensive coverage


This insurance plan covers miscellaneous damage sustained on your car from other causes other than collision. It covers losses arising from floods, theft, vandalism, and fire.

The cover is usually sold together with collision coverage and the two are often referred to as Physical Damage Coverage.

The coverage is optional and therefore the states have not set a minimum coverage. Although optional, leasing companies require that you have a Physical Damage Coverage (Collision coverage + Comprehensive coverage) before they lease you a car.

6. Medical expenses coverage


In the event of an auto accident, the insurance company clears medical bills for the covered party and his or her passengers. In all the 50 states in the US, this coverage is optional. Therefore, you set your own minimum and maximum levels. The limit you set is the maximum paid for medical bills for each person in the vehicle.

7. Uninsured/ underinsured motorist coverage


The two are optional covers in the US. The uninsured motorist coverage protects you in cases of auto accident and the other driver (who is in fault) has no liability coverage. On the other hand, the underinsured motorist coverage protects you from drivers who have too little (insufficient) liability coverage. The insurance company covers the difference between the faulty driver’s coverage and your costs (up to the limits you set).

Although optional, some states come in to regulate the limits sets. In these states, the law sets the optional limits and required limits available.

How Much Over 50 Life Insurance Coverage Is Enough?

Over 50 Life Insurance Coverage. Gradually, people around the globe have started appreciating the importance of life insurance. In the US, the question has changed from – is life insurance really necessary, to – how much life insurance coverage do I need carry? This is a clear indication that more and more US citizens are now taking out life insurance policies.

The main purpose of life insurance is to allow your loved ones, who rely on you for financial support, to continue with their normal financial life after you have passed on. Although any person, who has dependents, can take out a life insurance policy, it becomes a necessity when you hit 50 years. Anyway, the question remains – how much life insurance coverage is enough?

To try to come up with answers to the above question, we shall look at the factors you need to consider before taking out an over 50 life insurance policy. The factors help you in evaluating your life insurance needs.

When you want to buy life insurance, the following are some of the factors you should consider:

1. The amount of outstanding debt you have:


When taking out your over 50 life insurance policy (assuming you are 50 years and above), make sure it covers your existing debts fully. You don’t want to leave your dependents paying off your loans, do you? The life insurance policy should fully cover all your mortgages, car loans, credit cards and other forms of debt plus their interest.

Failure to cover these debts in your life insurance policy will see your dependents forced to sell the property you left behind.

2. Income replacement:


One of the chief purposes of life insurance is income replacement. When you buy life insurance, make sure that (in the event of your death) policy payout is able to provide the amount of income you were providing.

Take a closer look at your budget (assuming you maintain one) and ask yourself the following question – how much does it cost to maintain my family? The answer you get to this question will be a perfect guide towards determining the figure you’ll use as income replacement (in the calculation of life insurance coverage you need to carry).

For instance, if you are the household’s main source of income and you provide $50,000 per year, you need an insurance policy large enough to replace the income you are providing. When calculating the income replacement value, remember to factor in inflation.

The figure you get as the income replacement should be added to the total debts calculated in (1) above.

3. Any future commitments:


If you have any future obligations like paying your child’s fees or moving your spouse to the UK, estimate the costs of these commitments and add them to the coverage amount you want. Since these are future commitments, you can’t have exact figures; you need to come up with estimates (remember to factor in inflation when coming up with the estimates).

Although some financial advisers predict that the returns from insurance will grow at the same rate as the cost of living, and that there is no need to factor in inflation when calculating future commitments for insurance purposes, always stay safe by factoring in inflation.

4. Final expenses:


In the event of your death, your dependents need money to finance your funeral, burial and related expenses. If you were the sole income earner in the household, financing the final expenses becomes a challenge. Therefore, you need to consider final expenses when you buy life insurance for over 50.

5. Time factor:


Another most important factor people forget when determining the amount of life insurance they need to carry is – how many years you’ll need insurance. In term life insurance, the insurance term affects the premiums to be paid and thus the policy value. A longer period entails many small premiums while a shorter period entails few large premiums.

After you have considered the 5 factors above, do not go shopping for life insurance yet. There is one important thing you need to asses – your income level. Your current income level plays a very important part when determining the amount of life insurance you need to carry.

Always buy life insurance you will be able to finance. Taking out a policy you can’t afford will lead to premature termination. Most insurance companies have penalties for premature termination of an insurance contract. To avoid losses arising from these penalties, always evaluate your financial capabilities. The following factors should be able to help assess you financial capabilities before taking out life insurance:

1. Current income level:


Does your current income level allow you to take the coverage you consider enough? If it doesn’t take a different amount of coverage. You should always strike a balance between enough coverage and your current financial capabilities. Learn to live within your means.

2. Level of current expenses:


Although life insurance is important, day-to-day needs are more important. Don’t take out a huge insurance coverage at the expense of current needs. Try to strike a balance between your current expenses and enough coverage.

At 50 years and above, expenses have considerably reduced than when you are 30 or 40. For this reason, a 50+ person can comfortably buy life insurance for over 50.

3. Level of your current resources:


If you have enough resources in form of bank savings and assets, there wouldn’t be a need for too much insurance. The assets can be liquidated to support the dependents. Remember to include these assets in your will.

When considering the assets you have, make sure they are free of any debt/charge. If they are tied to any form of debt, take out insurance to cover the debt.

The 3 factors above are meant to help you assess your financial capabilities when determining the amount of over 50 life insurance coverage you need to carry. The main aim is to help you strike a balance between your income levels and enough life insurance coverage.

remember, you can always buy life insurance online. Before you settle for a provider  compare life insurance plans offered.
Related Posts Plugin for WordPress, Blogger...
Powered by Blogger.