13 Money Saving Tips Everyone Can Use Immediately in 2016
Everyone is looking to save money and with America still recovering from one of the toughest economic periods in our history, now is a great time to use some tips to save a few extra bucks each month.
13 Money Saving Tips for 2016
Below are 13 money savings tips that everyone can use. Take a look to see what you can do to save some extra cash each month. This may also give you some additional ideas on how you can save money in your everyday life.
13 Money Saving Money Tip on Life Insurance for 2016
When shopping for life insurance everyone is looking to save money as well. Here are 13 insider tips that can save you a great deal of money on your next life insurance policy.
- Shop around-don’t settle on the first quote you receive. Compare rate quotes from at least five or ten different companies before filling out an application.
- Apply with at least two different companies. It’s free to take the life insurance exam. After you find the companies with the best rates, you should apply with at least two of them, especially if your premiums are higher than average. Just because you are quoted a rate doesn’t necessarily mean that will be your final rate, often times it won’t be. However if you apply with multiple companies and one of the companies tries to increase the price during underwriting you have options and bargaining power for the original or lower rate.
- Purchase term life insurance. If you are family with dependent children, most often term life insurance will be the best policy. You receive the most amount of coverage for the lowest price.
- Get in shape. By losing just a few pounds or by lowering your blood pressure by just a few points could bump you into a better rating class. This could equate to saving hundreds or thousands of dollars. However, you shouldn’t wait to buy life insurance because you just never know when you will pass away. You can reapply at any time for free for the lower rate class after you “get in shape.”
- Pay annually. Life insurance companies will give you a discount if you pay annually. Often you can save anywhere from 3% to 7% by just paying it one installment each year vs. monthly payments.
- Prepay the entire policy upfront. I once had a client pay for all 15 years in one payment. This isn’t common but the life insurance company gives you a nice discount for paying the entire policy upfront.
- Don’t buy Return-of-Premium (ROP). Don’t buy return of premium life insurance or “get your money back if you don’t die” life insurance. It’s about double the price of term life insurance with a zero percent return on your money. Instead buy term and invest the money yourself.
- Quit smoking. Almost all life insurance companies require you to be at least 12 months completely tobacco free from cigarettes to receive a non-smoker rate. Again, you don’t want to be without life insurance for a full year just in case. It is best to secure a policy now and reapply when you have not smoked in a twelve month period to receive the lower rate.
- Convert your current policy. Most term policies allow you to convert some or your entire coverage amount to a permanent, no-lapse guarantee universal policy. Often this will be the best option for someone who developed a major health problem during the policy term and will save you a lot of money instead of purchasing a new policy based your health today.
- Purchase while you’re young. It makes sense, since life insurance rates increase every year you get older. There is a saying in life insurance that you will never be younger, and most likely as healthy as you are today, so life insurance will therefore never be cheaper than it is right now.
- Ask for “reconsideration.” If you apply for life insurance and the underwriter increases your rate for a particular reason, such as your build or for a previous health condition, ask you agent to fight for you for a better rate. I have done this on many occasions and it does work, not all the time but enough to defiantly to advise you to tell your agent.
- “Ladder” your coverage. This is a strategy not many people know about. Instead of purchasing one regular $1,000,000 30 year policy, buy two $500,000 policies; one for 30 and the second for say 20 years (or however long you need the coverage for). Using this example, you will have the full $1,000,000 coverage for the next 20 years when you will need it most, i.e. children are still growing up and in college, have a large mortgage, etc. and then, say in 20 years when all that is past you will still have the $500,000 for the reaming 10 years. This will save you a lot of money over the course of the policy. Also, another advantage to laddering is that if you were to ever run into financial difficulties you have the option of cancelling one policy and still having a policy in affect.
- Reapply if anything changes. If you ever quit smoking, lose a lot of weight, have had a significant health condition in the past and enough time has elapsed, you may be eligible for a much lower rate than when you first applied. It is always free to reapply for a lower rate and even if the insurance company finds something new, they cannot take away the original policy. It is a win-win for you to see if you qualify for the lower rate.
Use these money saving tips to obtain the lowest rates on life insurance.
Photo: Chris Potter