Tips on Evaluating Return of Premium Term Life Insurance

From the outward look, you wouldn't think twice about choosing a return of premium term life insurance policy over any other life insurance cover. However, ROP term life is not always a black and white matter as it seems. But this is not to say that it is a bad cover though, but rather you have to evaluate it based on a number of financial considerations that are specific to your case. This post gives you some of the tips to consider in your evaluation process, and at the end of it all, you should settle for a term insurance return of premium policy that you are comfortable with.
Evaluating the Cost
First, the name of this type of insurance policy might cause a little confusion in terms of cost since most people know that term life insurance is generally inexpensive as compared to whole life insurance. However, you should remember that of all insurance policies in this category, ROP term life insurance is arguably the most expensive that you will find. In fact, the premium of the policy could be as high as three times the cost of an average term life policy.
With that in mind, you have to evaluate if the cost of this policy is within your financial reach despite its net cost being zero. There are various term variations to it, and an idea could be to go for a shorter term of for instance 10 or 15 years. While the longer terms offer you cover for an extended period, the issue of sustainability of the premium should be factored in. Remember that you only stand to benefit from term insurance return of premium if you are able to see the policy through its end. However, if you want to get maximum benefit from it, then take a term of between twenty to thirty years.
Combine ROP Term Life With Other Investments
Return of premiums term life insurance is generally a good life insurance policy for any person to consider, whether young or old. However, since the policy is a bit costly, it might help to take a shorter term option and save some money on the same. The money saved can be put into other appropriate investment tools. Logically, a 30-year term policy would cost you more than a 15-year term policy. So, instead of stuffing all your money in the 30-year ROP term life policy, spread the risk of investment and take the 15-year option, and invest the remainder elsewhere. This is basically in line with wise investment decisions -spreading the risks.
Secondly, you could also consider taking a normal term life insurance policy, which is by far cheaper and then the balance be invested elsewhere. All these options depend on your individual circumstances and your investment plans. However, it might assist to consult your financial advisor before taking the right step.

From the above facts, it is evident that term insurance return of premium policies, though with numerous advantages, they come at a higher cost just as the case with anything else good in life. But with the correct financial advice, you can reap maximum benefits from return of premium term life insurance. Talk to a reputable underwriter for more details about this.

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Tough Times? Tips to Keep Your Life Insurance Policy From Lapsing

This harsh economic climate is home to several shocking trends, one of which is this fact: Only 44% of households have an individual life insurance policy, while 30% have no individual or group life insurance whatsoever (survey by LIMRA, an industry-sponsored group). This is the lowest level in 50 years, making everyone concerned about how to keep up coverage for themselves and their loved ones.
Lapses in payments usually occur due to financial conflicts because of job loss, business losses, divorce payouts, or the onset of debilitating illnesses with large medical bills. According to the 2007 US Individual Life Insurance Persistency Update by LIMRA and the SOA (Society of Actuaries), lapse rates figure at 3.5% on whole life (WL) policies and go up to almost 7% on term insurance.
Insurance companies do not look kindly on multiple lapses. Only a few companies overlook past lapsed policies when underwriting a new one; most include a stringent review of reasons for your past lapses. Because underwriting an entirely new policy is an expense to the company (agent commissions, medical check-up), lapses make you a liability to the company. If your application is not denied outright, chances are you may be underwritten at a higher rate than what you would typically qualify for. Reinstating your policy is another tough procedure, especially in the case of a WL policy with overdue premiums and loans against it.
Here is some advice to help keep you policy current:
If you're struggling to stay afloat

• Convert from a group policy to an individual policy as soon as possible. The chances are too high that you'll end up losing life insurance coverage if you lose your job. Speak with your advisor at work to find out how to convert ownership at a reasonable price.
• If you have a growing family with loans and mortgages, cut back on unnecessary expenses and put the savings towards your life insurance. Struggling as a single parent in a tough economy is not a pretty picture; you want to provide some degree of safety to your family in the worst scenario.
• Use the cash value component to make premium payments in your WL policy. The caveat to this is, if you need cash to pay urgent bills, you should surrender the policy, use it for pressing expenses and get term insurance instead.
• Review your need for a whole life policy at this time. Whole life works for policy holders with higher income brackets. Buy term life instead with a whole life conversion rider which will let you switch to WL when you've ridden out the uncertainty.

If you have a job now but things seem uncertain in the near future

• Consider switching from group life insurance to individual insurance as soon as possible.
• Pinch your pennies now so you get into the habit of saving for later. At the very least, do everything in your power so you don't give up term coverage, especially if you have large loans that still need to be paid.
• Get the "waiver of premium" rider to help make payments indefinitely should disability prevent you from working in the future.

If you are secure now, but want the best life insurance for you and your family

• Don't get too comfortable where you are now. Review your coverage and increase it if necessary. If you're looking for ways to grow your money in a tax deferred shelter, consider a WL policy.
• Add riders on your current policy like "waiver of premium" in the case of disability, "accelerated death benefits" in the case of illnesses, or "long term care" insurance.
• If you are young and are looking to buy whole life insurance, commit to the long haul. Younger people abandon whole life in larger numbers, according to the 2007 US Individual Life Insurance Persistency Update. Don't use its cash value unless extremely urgent. Don't use it at all if the policy is only 5 years old and still earning negative relative returns because of high surrender values.

Other reminders to keep your policy from lapsing:

• Review your life insurance policy yearly. You may find the need to convert to an individual policy, to add riders, or to change coverage amounts based on where you are on your savings plan towards retirement.
• Update your address so that you can receive bills and make payments on time
• Find easier ways to make regular payments. Arrange for electronic transfers of funds from your account to your policy, and automate it through your bank if possible.
• Look for guaranteed level term premium to avoid the high costs of inflation on premium payments as the years go by.

Don't give up on the peace of mind that your life insurance policy gives you. In an unpredictable world with unforeseen circumstances, having one can mean the difference between some comfort and much regret in hindsight.

About AccuQuote:
AccuQuote is a leader in providing term life quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

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Saving Money on Car Insurance Tips

In the current tough economic climate many people are struggling with rising costs of living. Cutting insurance premium costs can be a simple task by shopping around for the lowest possible quotes. However, even after you purchase an auto insurance policy that works for you, there still might be hidden costs. These are some of the most common hidden insurance costs to look out for:
Car Model: Insurance companies have various rating criteria based on the model of your car. Some of the factors are replacement cost, likelihood of theft, and safety features. If your vehicle has higher ratings in these categories it may increase your auto insurance premiums. Also vehicles that are considered high end are valued higher and will tend to have higher insurance costs. If you are shopping for a car it may be a good idea to talk to an insurance agent to find out which car models qualify for lower auto insurance premiums.
Installment Fees: It is always a good idea to pay for your insurance policy up front if you have the funds to do so. Policies tend to run for either six months or for twelve months so it can be pricey if deciding to pay in full. If you choose to pay for your insurance in monthly installments there may be a fee associated with this convenience. Make sure to check with your insurance company before deciding as it may save you money in the long run.
Forgiveness Policy: Certain insurance companies reward their customers if they have a good driving record. If you are a defensive driver with a clean record you may want to check whether your insurance company offers first accident forgiveness. This means that your car insurance company will forgive the first accident and your policy premium will stay the same. Accidents can greatly increase your premiums by as much as 50% so having accident forgiveness can help you save money on your premiums.
Good Grades for Teen Drivers: Adding your teen to your insurance policy can increase your premiums significantly. Most insurance companies offer discounts for teenagers who have good grades. A grade point average of 3.0 and above can usually lower the premium as much as 25%.
Extra Features: Check your auto insurance policy for extra features that you may not need but are paying for. A good example of this is roadside assistance. Most people do not need this especially if they have this feature through auto clubs, or other companies. Also, if you have a used car that is not worth a lot of money it is a good idea purchase to take off full coverage features on your insurance. In the instance that your car is totaled, you will only receive the actual cash value of what your car is worth at the time of the accident.
There are many useful tips and advice on car insurance online, so make sure to do your research before making a purchase.

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