Tag Archives: Investment

Insurance: Finding the Right Plan For You

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Purchasing insurance and finding a plan that fits your needs is one of biggest investments you can make during your lifetime. It’s a sad fact that no one is exempt from Murphy’s Law-anything that can go wrong, will go wrong. Life has many twists and turns. You will probably be able to pay for some of these setbacks out of-pocket. But bigger emergencies could completely drain your nest egg or cause you to file for bankruptcy. Everyone needs a good insurance plan to cushion their fall in these instances.
Not having a plan in place puts you at a huge risk. The most important thing to remember when considering a plan is that insurance is meant to place the financial burden of a disaster, such as a home destroyed during inclement weather or a life-threatening illness, on the company. Buying the right plan at the right price and time is important, since coverage can be pricey.

Below is a list of things to consider when choosing coverage that fits you best. They will also help you narrow down your options as you discover which qualities are the most important to you.

Price Comparison: Obviously, you want the best plan for the best price. Many companies will give quotes so that you can shop around. Try to get quotes on similar policies from at least three sources.

Claims Payment: It’s important to find out your company’s claims payment process so you won’t be left standing in the cold when you need help.

Financial Strength: How strong is the company financially? What will happen if they go into liquidation? Do your research and find out the answer to these questions. You may also ask who backs your company. Most will be backed by your state’s insurance guaranty association

Customer Service Ratings: No one wants to do business with a company that has terrible customer service, especially when they are in a bad position or dealing with stressful topics. Find out how satisfied their customers are. It may even help to ask around.

You can find help with choosing a plan by seeking an insurance agent, or going directly through the company. Buying from the company may save you money in the long run, but it’s important to consider that certain types of coverage, such as long-term care or disability, may require the guidance of a professional who has extensive knowledge of the industry.

Lower your Income Protection Quote by quitting smoking

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What is income protection?
Income Protection is a type of policy that covers you should you become ill and unable to work due to ill health. It is a type of health insurance cover.

Does smoking affect my income protection policy?

Yes, smokers tend to pay more for income protection compared to their non-smoking counterparts. This means that in the UK, there are approximately 10 million individuals (ASH, 2014) who are paying more for their premiums simply because of their choice to smoke.

Why do smokers have to pay more?

As expected, heath is a major factor that is taken into consideration when taking out a life insurance policy. It is a sobering reality but smoking is associated with many health-related problems. Recent statistics by ASH (April, 2014) show that every year, over 100,000 smokers in the UK die from smoking related causes, accounting for over one-third of respiratory deaths, over one-quarter of cancer deaths, and about one-seventh of cardiovascular disease deaths. For this reason, insurance companies view smokers as high-risk clients who are more likely to claim on their income protection policy and this risk equates to higher premiums for these smokers.

How much will smoking raise your online income protection quote?

Smokers’ premiums will vary depending on the insurance company, lifestyle variables, age and health but on average the cost is often up to 50% more when compared to non-smokers.

For example:

Case study: A 29 year old, administration male worker earning £22,000 who smokes. £1,000 monthly instalment of income protection with a 13 week deferral period = £13.60 per month.

Case study: A 29 year old, administration male worker earning £22,000 who does not smoke. £1,000 monthly instalment of income protection with a 13 week deferral period = £10.08 per month.

How do income protection insurers define smokers?

Most insurance companies define a smoker as someone who has used a tobacco product in the past 12 months. Usually they do not differentiate between different types of products such as cigarettes, cigars, pipes or chewing tobacco. The same applies to user-habit. Irrespective of whether you are an occasional smoker or a pack-a-day smoker, the insurance companies view the health risks as significant for all smokers. Individuals are urged to respond to the insurer’s questions honestly and accurately because, if one is discovered to have been deliberately deceptive, (validated through medical records and medical examinations) the life insurance claim may be denied.

Are you classed as a smoker if you use e-Cigarettes?

In recent years, electronic cigarettes have experienced a surge of popularity with approximately 2.1 million adults in Great Britain currently using them (ASH, 2014). Although e-Cigarettes do not contain any tobacco, they do contain Nicotine. According to the Association of British Insurers there is “a lack of medical evidence as to any long-term health benefits” regarding e-Cigarettes and added that “an insurer is increasingly likely to ask if the proposer is using nicotine products, as opposed to what is the weekly tobacco consumption”. Therefore to qualify as a non-smoker, individuals should be tobacco and nicotine free for over 12 months, including e-Cigarettes, nicotine patches and gum.

Quit smoking to save money

The benefits of quitting smoking are plentiful. Not only does it increase health and fitness, it can also improve one’s bank balance. Not only will ex-smokers benefit from having more spare change from no longer paying for cigarettes, it can help decrease insurance premiums too.

Quit smoking? What should you do next?

If you have been smoke and nicotine free for a minimum of 12 months contact your insurer and you are likely to qualify for lower insurance premiums. However it may be advisable to compare premiums with other companies to see if there are any cheaper alternatives available on the market.