Whether you smoke two packs of cigarettes a day, or have an occasional cigar or pipe, the life insurance quotes you’ll most likely see are going to be smoker rates which are typically double, often, as much as triple, the price of` non-tobacco users.
For example, a 40-year-old male who is a smoker qualifying for preferred term life insurance rates on a policy with a face value of $500,000 would be quoted $2,480 for a 30-year level term life insurance policy. If that same person qualified for non-smoker rates he would only pay $620 for the same policy. That’s a savings of $1,860 per year and $55,800 over the length of the policy!
If you’ve been putting off shopping for life insurance because you’re a smoker, or think you are paying exorbitant premiums because of your habit, it’s time to start shopping around. Many people are overpaying for their life insurance because they don’t realize that there are deals to be had out there.
We suggest the following tips for finding a life insurance company that will offer tobacco users more favorable rates – sometimes, even non-smoker rates:
Shop around – Some companies require a negative test for nicotine in order to qualify for non-smoker term life insurance rates. While at others, testing positive for nicotine is acceptable. As a result, an occasional cigar smoker or tobacco chewer could end up paying a lot more than they have to.
Deal with a broker - Only a brokerage firm that has a broad pulse on the insurance market will know which company might offer the most favorable rates to a given person, based on their individual profile.
Do NOT lie on your application – Because premiums offered to those who admit to tobacco use are often triple those of people who don’t smoke, some people are tempted to lie to get a better rate, but the effort often backfires.
If you’re an ex-smoker don’t think you’ll automatically qualify for non-smoker rates. Life insurance companies usually require that you be smoke-free for at least one year; however some require longer periods. However, don’t delay the process. Get the coverage you need today and reapply after some time goes by
This is a great question. In order to make sure a term life insurance policy is right for you, you should read the policy carefully to make sure it meets your financial goals.
Here are some things you should consider with a term life insurance policy:
How long can I keep this policy? If I want to renew it for a specific number of years, or until a certain age, what are the renewal terms?
Will my premiums increase?
Can I convert it to a cash policy? If so, do I need a medical exam to convert?
Finally, be sure to ask your agent for an explanation if there is something that is unclear.
I don’t have any pets, but I often here people in the office talk about their animals getting sick. Veterinary Pet Insurance (VPI), recently analyzed its medical claims received in 2007 to determine the top 10 most commonly claimed conditions for dogs and cats. They said that for both canines and felines, the top 10 conditions accounted for about 25 percent of all medical claims received last year.
A lot of seniors have the idea that Medicare would cover their long term care expenses. That actually isn’t the case. In fact, Medicare does not pay for long term care and people may want to consider private insurance.
So what does Social Security and Medicare pay for? Medicare, a separate program run by the Centers for Medicare & Medicaid Services, helps pay for inpatient hospital care, nursing care, doctors’ fees, drugs and other medical services and supplies to people age 65 and older, as well as to people who have been receiving Social Security disability benefits for two years or more.
According to a new survey conducted by Harris Interactive on behalf of America’s Health Insurance Plans (AHIP), four out of five disability income insurance claimants are satisfied with their policy.
The survey of disability insurance claimants assessed their satisfaction with their policy and their experience filing a claim and receiving benefits. Overall, four out of five claimants (82 percent) said that they were satisfied with their disability income insurance policy. Specifically, claimants were satisfied with the process for filing a claim (81 percent), the promptness of the payments (79 percent), the responsiveness of the insurer (75 percent), and the overall communication from their insurer (71 percent).
Most claimants said they did not have any problems with the claims process, and for those that did, most had their problem resolved satisfactorily. The majority of claimants did not have problems getting paperwork filed (76 percent), getting approval for their claim (73 percent) or receiving disbursements (78 percent). More than four out of five (84 percent) said their problem had been resolved satisfactorily.
The vast majority of claimants (96 percent) said it is at least somewhat likely that they would have suffered financial hardship had they not received disability insurance benefits after suffering a disability. Two-thirds of claimants (67 percent) said it is very or extremely likely that they would have suffered financial hardship. Sixty-five percent said they would recommend disability income insurance to their family and friends.
According to a recent poll conducted by Thrivent Financial for Lutherans, retired American females are more frugal than their male counterparts.
The poll found that retired females are more likely than their male counterparts to take practical steps to save money compared to their pre-retirement lifestyles:
Forty-four percent of retired females said they are giving fewer or smaller gifts to family members in retirement compared to 29 percent of males.
Forty-two percent of retired females said they are shopping more with coupons or at sales in retirement compared to 28 percent of retired males.
Thirty-five percent of retired females said they are eating out less often or at less expensive restaurants in retirement compared to 29 percent of retired males.
Twenty percent of retired females said they are living in a smaller house in retirement compared to 16 percent of retired males.
The changes to the NAIC Unfair Trade Practices Model Act limit an insurer’s ability to refuse life insurance because of lawful past travel or, under specific circumstances, lawful future travel.
Specifically, future travel cannot be the basis for a coverage decision unless travel to a specific destination at a specific time is found, based on sound actuarial principals and actual or anticipated experience, to create a risk of loss greater than that for individuals who do now travel to that place at that time.
Travel to a destination where the U.S. Centers for Disease Control and Prevention has issued an alert or warning or where there is an ongoing armed conflict involving a foreign army is deemed a valid basis for refusing to offer or limiting coverage.
Every individually underwritten term life insurance policy requires a medical exam. The exam is paid for by the life insurance company and is completed by a medical technician or a nurse.
The exam usually consists of a series of health questions as well as a:
Blood test
Urine specimen
Blood pressure reading
In some cases, an electrocardiogram (EKG) or additional tests may be required. The exam can take place in your home or office.
The medical exam is a way for the life insurance underwriter to find out about your medical health. It will affect how much you pay for your life insurance, so it’s important to prepare. Preparing will help you avoid unnecessary abnormal exam results, which could affect your life insurance rate.
For the best results, you should:
Stick to a healthy diet the week prior to your exam.
Minimize the use of salt and avoid sugary and excess fatty foods.
Do NOT drink any alcohol products for 72 hours prior to the exam (Alcohol is processed by the liver and can cause liver enzymes to become elevated)
In addition, the day before your exam:
Stay away from ALL caffeine products.
Caffeine can elevate blood pressure.
Avoid nasal decongestants and pain medication such as aspirin, acetaminophen and ibuprofen (unless directed otherwise by your doctor).
Do NOT participate in any strenuous exercise – it can cause elevated protein in the urine.
Fast 8-10 hours prior to the exam-taking place.
If your exam is scheduled for 8:00am, begin your fast the night before at
Get a good night’s sleep.
On the morning of your exam:
Don’t eat breakfast or use any form of tobacco.
Have a list of your doctors, including addresses and phone numbers on hand.
You should plan on spending 30 minutes for a full exam. Finally, relax – if you followed these exam tips you have nothing to worry about.
With the official start of hurricane season only a few days away, coastal residents need to make sure that they are properly prepared for the above average hurricane season predicted for 2008, according to the Insurance Information Institute (I.I.I.).
The 2008 hurricane season, which starts June 1 and runs through November 30 is expected to be an active one. London-based forecaster Tropical Storm Risk predicts that there is a 63 percent probability that hurricane activity in 2008 will be in the top one-third of years historically. Colorado State University forecasters William Gray and Philip Klotzbach predict that there will be 15 storms in all (9.6 is the average), including eight hurricanes and four storms that could reach “major” status with Category 3 winds or higher. Experts at the NOAA Climate Prediction Center are projecting a 65 percent chance that the Atlantic Hurricane Season will be above normal this season-suggesting that more active and intense hurricane seasons will continue to be the trend.
To prepare for a hurricane and other disasters, the I.I.I. recommends the following five tips:
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