7 Facts about Term Life Insurance

Posted on Friday 4 May 2012

The primary reason to have a life insurance policy in place is to make sure your family will be financially protected in the event you pass away. When you’re looking for a life insurance policy, you have two fundamental choices: whole life or term life coverage. Each has its advantages and disadvantages, which makes it difficult to choose the one that’s right for you. Following are a few facts about term life insurance that may help you decide which policy is in your best interests.

You Pick the Coverage

One nice thing about a term life policy is that your choices of coverage are nearly limitless. In fact, the extent of your coverage is limited only by how much money you have to spend for a policy. A term life policy is usually the choice for single people and for those who are married but just starting out in the workforce. This choice is usually made because the premiums are considerably less than they would be for a whole life policy. The object of getting a term life policy is to make sure your family will be provided for if something happens to you, but to do so at a rate you can afford.

You Pick the Term

With a term life policy, you get to pick how long the term is going to be. You can get anything from a one year term to a policy that will run for more than 25 years. The advantage to getting term life coverage is that you can make sure you’re giving your family financial protection for a relatively low price. Because a whole life policy protects you from the time you take out the policy until you pass away–providing you make your payments on time–having a whole life policy is attractive. If you take out a term policy for a short period of time, you will have the option that much quicker of choosing whole life protection instead.

The Benefits Can Remain Level, Increase, or Decrease

A fact about term life insurance that some people don’t take into consideration is that the benefits can increase, decrease, or remain the same, according to the stipulations of your policy. The type of term coverage you choose will depend a lot on your financial situation at the time you take out the policy. It will also vary according to the size of your family and the ages of your children. Your insurance agent will be able to explain the advantages of a level, increasing, or decreasing term life policy.

Term Insurance Is More Affordable

If you’re just starting out in the workforce, but want to make sure your family is financially protected, you will probably choose term life over whole life–because it’s cheaper. Young people have to prove themselves in the workplace, so they naturally make less money when they’re starting out. Getting a term life policy makes sense because the rates are lower. Due to the way term life policies are written you can tailor a plan to meet your needs and budget.

You Have the Option to Renew

Another good thing about term life coverage is that when the policy expires you have the option of renewing the term policy or changing over to a whole life policy. The older you get, the more you will have to pay for insurance coverage. Sticking with a term policy will enable you to go on receiving adequate coverage at reasonable rates.

Cost Is Based On Your Health

When you take out a term life insurance policy, your rates will be determined, in part, on your general health. If you’re relatively healthy, your rates will be quite low. When the term ends, you will once again have to undergo a physical to determine your overall health. If you haven’t suffered from any significant health problems in the interim, your rates will continue to be low.

Term Life Coverage May Have Tax Breaks

Choosing term life coverage may benefit you in another way–it is possible that you’ll be eligible for tax breaks. In order to qualify for any possible tax break, you must belong to a group plan through your employer. If you are, the cost of your insurance is paid before taxes are deducted by your employer. That means you aren’t paying taxes on your insurance payments. It would be a good idea to consult with your employer and tax attorney to see if you qualify.

Guest post from Payton Price. Payton writes about term life insurance for TermLifeInsurance.org.

savvy @ 8:00 AM
Filed under: General Finances
How to Save Money on a Cruise

Posted on Wednesday 2 May 2012

If you’re considering a cruise for your next vacation, you are probably already saving money for the trip. Going on a cruise is a great way to relax and enjoy life. With not a care in the world, you can simply sit on deck and watch the ocean go by. Unfortunately, a cruise can be relatively expensive. The good news is that there are a number of things you can do to cut down on expenses. Following are a few tips on how to save money on a cruise.

Wait Until the Last Minute

This concept resembles flying standby–you wait until the last minute to book your cruise. Most cruise lines require you to book your room months in advance. However, there are usually some last minute cancellations. That means there could be some open space a few days before the cruise is scheduled to leave. Cruise lines will sell these empty cabins at a reduced rate so they won’t have to leave port with no one in them. If you time things right, you could end up with a very nice cabin at a drastically reduced price. You have a good chance of finding a last minute opening by monitoring the websites of the various cruise lines.

Go During the Offseason

As with any vacation destination, it is cheaper to go on a cruise during the offseason. Because a cruise is a popular getaway, you can expect solid bookings during the peak vacation season. However, if you can take your vacation during the nonpeak months, you should be able to save quite a bit of money.

Shop for a Good Price

A time-honored way to save money on practically anything is to go looking for a deal. Go online and visit the website of various cruise lines to find out their basic rates. Determine which cruise you’d like to take, compare the prices, and find a travel agent that has a good reputation. Have the agent try to find the cruise you’d like at a price you can afford. A knowledgeable travel agent should be able to get a better deal than you.

Ask for Discounts

When you are shopping for a good rate on a cruise, you should make sure you ask the travel agent or booking agent whether or not they offer any discounts. Some cruise lines are very friendly to military personnel. They offer discounts for active duty or retired military people. Another discount that is available on some cruise lines is for frequent travelers. The more you travel with any one company, the higher your discount will be. There may be other discounts available but you won’t know about them unless you ask.

Book Early During Primetime

If you’re unable to travel during the offseason, or if you simply prefer going during primetime, you should book your cruise as early as possible. As soon as you know when and where you want to travel, you should try and book a spot before the cruise is actually advertised. That is when you will have the best opportunity to get a decent price.

Book Air Travel Separately

In many cases, a trip that consolidates air travel with the price of a cruise could end up costing you more than if you booked your air travel separately. If your flight to the spot the cruise is leaving from is delayed for any reason, the ship is certainly not going to wait for you. Instead, you should book your cruise, and then coordinate the rest of your travel schedule so you will be sure to arrive on time.

Don’t Insist on a Window Seat

The majority of cruise lines charge quite a bit more for rooms on the outside portion of the ship. You can save some money on a cruise by booking a cabin in the interior of the ship instead of insisting on a room with a view. Most people don’t spend a lot of time in their cabins anyway, so paying extra just to look outside a few minutes each day could be a waste of money.

Guest post from Tracy Sheldon. Tracy writes about boat insurance for BoatInsurance.org.

savvy @ 8:00 AM
Filed under: General Finances