Category Archives: life


10 Ways to Save Money On Life Insurance

Around 28% of businesses avoid getting life insurance due to the cost. But investing in life insurance can really help to protect both your business and your family. You can actually save money on your life insurance by selecting the right policy to give you the cover you need. Getting the best price for your life insurance doesn’t have to be difficult. You can follow some simple steps to cut costs and get a good deal on your life insurance.

how to save money on life insurance

1) Find a good broker

Having sound advice when it comes to financial products is a must. Finding a reputable company that offers free quotations and advice on your life insurance can really help you to find a good product. Going with the cheapest option isn’t always the best for your needs. Therefore, speaking to a qualified professional can find the right policy that covers you for what you need it to. Business life insurance is more complex that personal life insurance, but you can make some good savings if you speak to the right person.

2) Concentrate on your health

With some insurance policies, you can actually get discounts each year if you lead a healthy lifestyle. Life insurance goes up if you are unwell. Heart disease, strokes and diabetes are all preventable condition that can hike up the cost of your life insurance. Having a healthy BMI and get regular health checks can speed up the process of your life insurance application. Regular exercise, even as little as 30 minutes 3 times a week can help to cut costs too. If you’re fit and healthy, your life insurance company will see you as less of a risk which means you save money on your premiums.

3) Stop smoking

Smokers, on average pay around a third more than non-smokers. Heavy smokers can double the cost of their premiums. If you can stop smoking for at least 12 months, you can save money on your life insurance. The good thing, you can cancel a policy at any point. So, you don’t have to miss out in the meantime. You can take out a policy, and then review it when you’ve quit. That way, you’re still protected and a year later, you’ll be saving the pennies.

4) Shop around

When you’re looking for business life insurance or personal life insurance, it’s important to compare prices as well as policies. You may not be aware what type of life insurance you really need so finding the right policy can be a really good way to save money. Comparing like for like policies as well as different levels of cover can help you work out what you really need. In addition to this, by comparing prices with different insurance providers through a qualified insurance broker can help you get better value for your money.

5) Choose term life insurance

Whole of life insurance is generally more expensive and it is unlikely that you’ll need it forever. In fact, term life insurance can save you much more money and still protect what you need. If you want to cover a mortgage or business loans, then getting term life insurance will be all you need. Most people keep life insurance until they no longer have anyone dependent on them. Therefore, you can take out term life insurance until your children grow up or you have a spouse that is self-sufficient.

6) Don’t over insure yourself

Getting the right amount of cover to protect yourself can help you save money. After all, you don’t want to get more cover than you actually need. Most life insurance companies provide a calculator to determine how much life insurance you may actually need. In addition to this, insurance advisors can help advise you what you need cover for. You may wish to cover inheritance tax paid on your estate or wait until you’ve paid off a mortgage. Either way, you can choose the right amount of cover that suits your specific needs to save money.

7) Update your cover

Life insurance is completely and easily cancellable. This is because most insurance providers realise that life changes quite a bit throughout life. If your circumstances change, such as having children, getting married or paying off your mortgage, you may want to look at reviewing your cover. Some policies have renewable terms, but you can often spend more money once the policy is renewed. Instead, shop around and compare policies to see if you can get yourself a better deal. Insurance brokers will do this on your behalf, so you can save some time too.

8) Put your policy in a trust

You can right an insurance policy into a trust to save on inheritance tax. Anyone who has an estate over £325,000 pays 40% inheritance tax on the amount. Therefore, an insurance policy can help to counteract that cost. When a policy is written into a trust, the payout is tax-free, which means your family comes out better off.

9) Pay for life insurance through your business

Business life insurance is often a little more complicated, but you can make some great savings by taking out a policy through your business. Relevant life insurance and key man insurance are tax-efficient life insurance policies in some circumstances, so you can make some great savings by running your life insurance through your business. When you pay for life insurance through your business, you can offset it against corporation tax and save on your premiums each year.

10) Get it while you’re young

The cost of life insurance increases the older you get. Waiting to get your life insurance can actually cost you money. If you’re thinking about getting life insurance, it’s best to get it while your younger to save money. With every birthday you have, the more expensive it will be.

Life insurance isn’t expensive. Most people are put off by the cost, but actually the level of protection you get can be invaluable. Life insurance provides peace of mind to businesses and families and can help to protect your loved ones. Do your research, and don’t just opt for the cheapest policy but find one that suits your specific needs.


The Need for Checking Financial Strength Ratings Before Purchasing Life Insurance

life insurance ratings

There is an almost overwhelming set of decisions to make when shopping for life insurance, the type, length, death benefit, and beneficiary. When you throw in various riders and endorsement options is it any wonder that many consumers fail to really think about the exact life insurance company that they choose? But how should you – the consumer decide which life insurance company to trust? Do you base your decision off of the ads and marketing? Or should you focus on word of mouth or the captive life insurance agent that you met at the Elks Club?
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But there is a better way – In the ideal world you would first consider the overall financial health of a given insurer. But how do you do that?

About Life Insurance Ratings

There are numerous ways to rate life insurance companies, from surveys done by JD Power to your state Insurance Regulators. However the type of life insurance rating that may be most important is called the Financial Strength Rating. A Financial Strength Rating is an “opinion” written by a credit rating agency about a given insurers ability to meet its claims and ongoing obligations. Financial Strength Ratings are slightly different than Credit Ratings as they take into account policies and claims. Financial Strength Ratings, sometimes abbreviated FSRs, are created by the big three credit rating agencies: Standard and Poor’s, Fitch, Moodys, and insurance rating specialist AM Best.

Why Consumers Should Check Life Insurance Ratings

Consumers should check financial strength ratings to help them assess if the proposed life insurance company will be able to pay out insurance claims in the future. Companies with a lower financial strength rating have a higher chance of either falling into a state regulator’s control or becoming insolvent. Insurers that have a higher financial strength rating correspondingly would have a lower chance of becoming insolvent or other. Consumers benefit from buying life insurance from higher rated carriers because it will potentially allow them to circumvent poorly run insurance conglomerates and be more assured of receiving the agreed upon pay out in the event of a payable claim.
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The need to check financial strength ratings is potentially highest with life and annuities because clients will often keep a these types of insurance products for 20+ years. In the case of whole and universal life some clients will end up keeping their life insurer for their entire life. Therefore taking a little extra time to fully understand the financial trajectory can pay huge dividends down the road.

How to Check Financial Strength Ratings

For consumers of the digital age its not all that difficult to check a companies life insurance rating. Keep in mind that there are essentially four different financial strength ratings from four different agencies. Each rating agency uses their own lettering system and lettering grades, therefore it is not really possible to check one financial strength rating from one rating agency vs another financial strength rating from another rating agency To check a financial strength rating with insurance specialist AM Best, merely go and type in the name of the insurer that you want to check.

The Corporate Entity:

Checking financial strength ratings with some insurers can be confusing as many conglomerates have numerous different corporate entities. Understanding exactly which entity you are receiving a quote from may be the hardest part of checking the rating. If you are confused or do not understand, ask your life insurance agent.

Best Practices When Checking Financial Strength Ratings:

  • Compare Apples with Apples. Choose One rating agency to compare all of your potential carriers.
  • Consider doing a full secondary check with a different second rating agency.
  • Try and check the financial strength rating yourself rather than depend on an out of date document or website.
  • Always check financial strength ratings whenever you are considering any type of insurance.

Author: Scott W Johnson is the owner of Whole Vs Term Life Insurance.
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