When taking out an insurance policy it is often confusing when deciding which premium structure to take. There are two main options and clients find it difficult to know which one is best. This is where I can help.
I often find the premium structure that clients have in place does not fit the purpose that they took cover out in the first place. Many have been advised to take a premium option that doesn’t suit their needs, and one which will cost them a lot more in the long run.
Understanding the options available and how it relates to your personal situation is vital.
1: Yearly Renewable Term – YRT
Policies with a yearly renewable term will have a premium increase every year. The agreed premium when you commence your policy will be applicable for one year only and on every anniversary of the commencement of your policy, the premium will rise in accordance with the insured person’s age and the company claims experience.
This option caters to the needs of those who require a shorter-term policy
Auto insurance is an important form of insurance for anyone to have. Auto insurance compensates individuals in the event of auto accidents, allowing them to pay for the cost of auto repairs. Choosing auto insurance can sometimes be difficult, especially with the amount of insurers available. Use the following advice when choosing auto insurance.
When considering auto insurance for a young driver, be sure to provide the insurance company with all of the proof that may entitle the driver to a discount. This will ensure you are paying as little as possible, and also ensure that the process goes smoothly. Such discounts would be safety features of the car, good grades, recent graduation, and having a safe prior record.
If you are a young driver and pricing auto insurance, consider taking a driver’s education course, even if your state does not require driver’s education to earn your license. Having such a course under your belt shows your insurance company that you are serious about being a safer driver, and can earn you a substantial discount.
Reassess what kind
We all want to buy low cost term life insurance. It is just the wise thing to do. I was recently having a casual conversation with one of my neighbor about life insurance and was surprised to see the amount of premium he was paying for term insurance.
I did some research for him and found the exact type of policy that he had for about half of the premium he was paying. This policy was from one of the better known life insurance giants…a company over 100 years old.
You can find low cost term life insurance from a reputable life insurance company if you take the time to do the research. Look for the carriers that are rated A+ or better by the A.M Best company. A.M. Best does the research, that is their function.
The most popular term life insurance policies are the 10 year term policy, the 15 year term policy, the 20 year term policy, the 25 year term policy and the 30 year term policy. Let us
For most US citizens who do not receive health insurance through a company, they will be assessed a penalty if they do not secure their own health insurance. For people that make up to 400% of poverty and do not have group health insurance, it will make little financial sense to forego the sizable health subsidy but also incur a separate penalty. Let’s look at the health reform penalty and determine if it has teeth.
Health Penalty To Ramp Up Over First Few Years
The penalty for not purchasing health insurance was designed to ramp up over the course of a few years starting Jan 1st, 2014. Let’s look at the scheduled approach:
2014 For the calendar year 2014, the penalty will be $95 per family member or 1% of annual income, whichever is greater.
2015 For calendar year 2015, the penalty will be $325 per family member or 2% of annual income, whichever is greater.
2016 For Calendar year 2016, the penalty will be $695 per family member or 2.5% of annual income, whichever is greater.
Let’s look at an example of the health penalty in