Tips to Avoid Being Ripped Off by a Life Insurance Plan

Tips to Avoid Being Ripped Off by a Life Insurance Plan

As much as we want to refrain from thinking about death, the fact of the matter is that life is unpredictable. What we can predict, though, is what will happen to our assets and how our families will be taken care of through life insurance. While not an easy nor enjoyable task, you need to research a policy that will work for you. As with anything, there are many companies out there looking to swindle you, so you need to be careful. But, don’t worry; we’re here to help. The following are tips to avoid being ripped off by a life insurance plan:

Tips to Avoid Being Ripped Off by a Life Insurance Plan

Prior to starting your search, it needs to be decided whose life or lives will be covered in a plan and what types of coverage will be available in the case of death. Here’s how you can navigate the process of life insurance shopping:

  • Think about supplementing pension and social security income. A dual-income home no doubt helps to make things easier, but when one spouse passes, you have to live on much less. Life insurance can help alleviate some worry and serve as a partial income replacement for the surviving spouse. In this case, term life insurance is a great choice due specific time frames, but whole life insurance, which is a type of permanent life insurance that assures financial certainty, is even better due to the increasing cash value it provides. The downside, of course, is that it does cost more money. But, with guaranteed growth, it may be worth the investment.
  • Know how the agent gets paid before meeting with him or her. Before even setting up a meeting to look at different policies, find out how your potential agent is paid. Are they compensated through commission or are they salaried? The last thing you need when shopping for life insurance is to be treated like a paycheck. Make sure you’re making decisions that are best for you and not for the agent’s bank account.
  • Use an online calculator. An online calculator, like this one from New York Life, can help you see where you stand and how much your spouse will need to cover expenses. Look for calculators that actually provide information on the numbers and not just try to direct you to an agent.
  • Be open and honest with your agent or broker. It is imperative that you are open and honest with your broker. Be as clear as possible and as open as possible about your current situation and your needs. This will prevent you signing up for a plan that is not right for you, or, worse, an unexpected increase in rates.
  • Know your health history. Often times, you’ll need to have a medical examination when applying for life insurance. Be as prepared as possible by having a list of past surgeries, treated conditions, accidents, medications, and so on. This will make the entire process simpler and quicker for everyone including you.
  • Research the different types of life insurance. Two different main types of life insurance plans were discussed previously (term and whole life), but the two other main plans include universal and variable. Don’t go into a meeting with an insurance agent without having some background knowledge of the specifics of these plans. You’ll be able to make wiser decisions by doing so. This may be one of the more important tips to avoid being ripped off by a life insurance plan.

While we should always remain positive, we should also be prepared for the worst in life. It is an unfortunate thought. However, by taking the steps to protect your family for the future now, you’ll have peace of mind and truly be able to live life the fullest.

What tips would you add to the list? 

The Importance of Understanding Auto Insurance (And How It Could Save You Money)

understanding auto insurance

Having auto insurance is one of those essentials you need if you drive…legally, that is. Not just that, but having auto insurance does protect you and your vehicle should anything happen, whether it be a head-on collision or a hit-and-run. You need to see your car as an investment because it is. Thus, understanding auto insurance will be wise so that you know you are getting the best deal (and not just emptying your bank account). Here’s how you can save money while still ensuring you’re protected:

Understanding Auto Insurance

Compare Before You Buy

Similar to the concept of “try before you buy,” you want to always compare quotes side-by-side. In fact, you do not even need to wait until you are buying to do a comparison. Many companies would be more than happy to go over cost-savings with you based on your current insurance provider. But, if you don’t want to deal with a salesperson, you can easily do the car insurance comparison online.

For most providers, they will offer to email you an initial quote first based on the information you filled out. Once you do this for multiple companies, you can see the best route to take. Some sites, like Progressive, will even do a comparison side-by-side for you, which is a smart sales tactic for them. For a faster look at different quotes from various companies, though, NerdWallet offers a free online tool for you to do just that. Check it out here.

Don’t Go Without It

Every state makes it a requirement for drivers to carry auto insurance. Even motorcycle drivers need to have insurance. If you get caught without it, the costs could be much higher than your monthly premium. If you were to get into an accident, the state may go after your personal assets, you may have higher insurance costs, a suspension of your license, and so on. You can learn more about these penalties at

Be Cautious About Loaning Your Car

Insurance policies go after the vehicle and not the driver. This means that in an accident, they pursue the vehicle at-fault for costs, and whoever owns the car and is the policyholder is responsible for those costs. So, even if you were not the one driving your car, your insurance has to cover it, which will lead to higher insurance rates for you to pay.

More Miles, More Money

The more you drive on a regular basis, the more money you’ll have to pay for an insurance policy. They base this on the increased likelihood of an accident to take place with the amount of times your car is on the road. In order to avoid this increase, try to periodically utilize public transportation instead whenever possible.

Look for Policies With Accident Forgiveness

When you’re in an accident, your premium will typically increase, especially after multiple accidents in a row. That is, of course, unless you have accident forgiveness in your plan.

Put Multiple Cars On One Policy

Many auto insurance carriers have “bundle plans” that allow you to insure more than one car under one policy. This can help you save money rather than going through multiple companies.

Ask About Military Discounts

As a thank-you for serving our country, many companies will give a military discount for those currently enlisted or veterans. Be sure to ask and see they have any options for you.

Overall, understanding auto insurance helps you to save money (or avoid wasting it) by knowing what to look for or mistakes you can prevent. Hopefully, with this knowledge, you’ll be able to find the best coverage and plan for you.

What would you add to the list? 

Financial Advantages To Solid Healthcare

medical-563427_640The Future Is An Unknown Quality

Will you live to be a hundred years old with no health issues, or will you trip going up the stairs one day and permanently displace your hip? You don’t know, and there’s no way to tell. But if you plan ahead, you can protect yourself and your family even when the unexpected happens.. You can also protect your business.

Healthcare coverage is more than just insurance against an illness or injury you didn’t expect. It’s also financial stability, and a psychological bastion allowing you to confidently take risks knowing you can survive even should they turn out less profitable than you had hoped.

Additionally, healthcare coverage for your business can end up helping you acquire better employees, obtain tax breaks, and create a more sympathetic persona as pertains to public perception. A company that takes care of its employees is one that will take care of its clientele. It’s good to have a giving heart!

There are quite a few different healthcare options available today, though, so you’re going to have to choose carefully. Many will have different restrictions based on pre-existing conditions, and there will additionally be different monthly, bi-annual, and annual rates.

Getting Discounts

Sometimes, depending on the kind of payment plan you decide to go with, you will be able to get discounts. For example, if you pay your premium up front for the year, you may be able to save several hundred dollars per covered individual. If you pay on a monthly basis, you’re more likely to have higher rates.

When you have plans that include multiple people, again, you’ll have different rates available. It can be very difficult to source the best possible deal available when there are so many choices out there, so you want some means of delineating between these solutions.

You can compare rates at when you’re looking for the right provider; this process can be a difficult one, even the site acknowledges that: “If you have spent any amount of time looking at potential health insurance plans, it’s likely you’re a bit confused about some parts.”

The best advice is to find advice. Look for those who have gone before you, and don’t forget the legal angle. Life insurance will differ from health insurance, but you very likely will require legal representation for certain things, so that’s something to take into consideration as well.

Coverage For The Unexpected

The right insurance company is going to cover you, your family, or your employees when tragedy strikes. The wrong company is going to leave you to fend for yourself the moment difficulty arises. So something else to consider when you’re searching for health insurance coverage is reputation.

Just remember what you save yourself from by having solid coverage. You’re literally going to have thousands of dollars in medical fees—even tens of thousands—for fairly simple operations. Sometimes the costs can bankrupt your business. If they don’t bankrupt your business, they could clear out your savings.

There is always the off-chance that you’ll be able to make it through your life without ever having to cover any healthcare expenses, but there’s also always the off-chance you’ll win the lottery. Would you be willing to raise your children under the assumption that a multi-million dollar lottery win is around the corner? Or finance your business under such thinking?

Well, if you wouldn’t be willing to take that chance with your children or business, then you probably shouldn’t take the chance of not having any healthcare solution whatsoever. But again, it all depends on your own personal proclivities. Still, either way you go, sourcing professional advice can help you make the right choice.