While deciding to spend the rest of your life with someone else is a huge change for a single person, the until death do us part clause in the vows does not have to extend to your financial security. Life insurance is the best way to ensure that you and your new spouse will be financially sound in the event that one of you passes on. While it is not something that people starting their lives together enjoy to think about, it is a conversation that you and your partner will be thankful for later on down the road.
If you or your spouse already have a life insurance policy, it is time to think about what needs to be updated. If both of you have separate life insurance policies, it may be more cost effective to combine your policies under one company. Obviously, you will both still be covered, but you may have a lower monthly premium if you are both under the same policy.
Another way to save on your life insurance policy is to bundle. If you own vehicles, a home, an expensive engagement ring, or any other property that should be insured, pile them altogether with the same company to reduce your monthly premiums on all of your insurances.
If your new spouse has life insurance and you do not, or vice versa, now is the time for you or your spouse to add the other on the existing life insurance policy. In other words, if you do not have employment that offers life insurance but your spouse does, you can now get life insurance through your spouse’s employer, which is highly recommended.
Finally, you need to update information on any life insurance policies that may have existed before your marriage. You may want to increase your benefit depending on the lifestyle that you and your spouse are accustomed to. Another suggestion to think about is changing who your beneficiary is to be listed as your spouse.
Now that you are combining your life and your household with your new spouse, it is important to remember that your finances will become intertwined. You may rely on your spouse’s income for a portion of the monthly expenses, such as the mortgage, food, utilities and so on. This is one of the main reasons that life insurance is so important for married couples. If something were to happen to one of you, the other would want you to remain in the current lifestyle that you are accustomed to.
Insurance premiums insure your life; therefore, your policy is based on your life expectancy. Many factors are used in calculating your life expectancy such as your age, family medical history, driving record, lifestyle, health, if you are a smoker and finally your GENDER. Your gender is one of the main factors when determining your life insurance rates, coming in second only to your age. On average, the life span for a woman is five years longer than that for a man. Because life insurance is based on how long you might live, you can see how this would play a role in calculating your premiums.
In general, men present a higher risk to insurance companies. Here is a list of reasons why a life insurance quote for a man may be higher than that for a woman given they are of equal standing in general health, age, family medical history, driving record and smoking status.
Men tend to have higher risk occupations. If you take a look at the proportion of men to women in the following careers, there is a distinctive difference. Choosing an occupation associated with a higher risk will cause your increase the cost of your life insurance. Some of those dangerous occupations include, but are not limited to:
- Construction Workers
The aforementioned occupations are all considered higher risk occupations than average. Additionally, the above careers are all male dominated fields.
High-Risk Activities and High-Risk Lifestyles
Men are more likely to participate in dangerous hobbies such as competitive sports, rock climbing, car racing, etc. than women are. All of these extracurricular activities have an increased link to accidental death. Because more men participate more frequently in these dangerous activities, they have a higher death rate, and thus a higher cost for life insurance.
Another common generalization that is also statistically proven is that men tend to find themselves to be indestructible. This is especially true of younger men who often feel they have less to lose (i.e. not yet married or not yet fathers). Young men tend to take more risks in their everyday lives such as:
-Choosing a competitive workplace resulting in high-stress levels
-Little attention to a healthy diet resulting in the consumption of more fatty and salty foods. This leads to health risks such as high blood pressure and cardiac arrest
-DIY home repairs and remodels that could be dangerous and should be left to the professionals
-Working on cars and trucks at home
-Likelihood to binge drink
Higher Societal Risks
Have you ever been at a bar and seen a physical altercation? Chances are, it was between two men and not two women. Men tend to be exposed to a higher societal risk. Research shows that they are more likely to be involved in homicide or suicide. They are also more likely to be involved in criminal activity which can often lead to death. All of these activities directly affect the mortality rate for men, and therefore result in higher life insurance rates.
Men and Women Are Different
Unfortunately, statistically speaking, men are exposed to higher risk activities than women every single day. Life insurance is based on a carefully calculated mortality chart in which all of these factors are taken into account. At every age and health range, you will see that the insurance premium rate for men will be consistently higher than it is for women at the same age and health range. Because of this, my poor husband is doomed with higher life insurance rates at every stage in our lives. However, when broken down into monthly payments, we are only paying about six more dollars per month to cover my husband than we are paying for my insurance. In the end, I am okay with this because I know our family will be covered should tragedy come knocking on our door.
A life insurance policy is something we all should have, but it isn’t something you should look at one time and let it go. As a policy that ensures the comfort of your loved ones that rely on your income or support after you pass away, you’ll want to ensure your policy is correct and up to date as possible. Your life insurance policy is actually something you will need to periodically check on, revise, and revisit as you move through life and make major changes.
But what are those changes that would call for a change in your life insurance policy?
Here are six major events that might call for an insurance change.
1. Change of Relationship Status
Now, we’re not talking about every time you go on a new date, but when you get married or divorced, you should take a look at your life insurance policy. If you’re getting married and your spouse will rely on your income, you may want to consider upping your policy. If a divorce happens and the same amount of policy money isn’t needed anymore, you can adjust it back down.
2. Having a Child
Just as marriage or divorce would influence your life insurance policy, so would having a child or bringing on another kind of dependent. For each child you have, you will want to continue to consider if you should up your life insurance policy. If you should pass away, you want to ensure your children are well taken care of. If there is someone out there who relies on your money to live, a good life insurance policy should be in place.
3. Buying a Home
If you’re buying a home that requires a mortgage, you’ll want your life insurance policy to cover the additional cost of the mortgage. If you have such a large debt to continue paying off, it will be placed on someone else in the event of your death. To prevent sending your spouse or children into a debt they can’t afford, ensure your life insurance can cover the cost.
4. Change of Employment
Your life insurance policy should reflect your income, so if you get a raise, a new job, or add another form of income in the form of a side business or part time job, you will want to adjust your life insurance. If your income declines, you may also want to consider checking your policy and ensuring the coverage you have is necessary. This is particularly important when you consider a spouse or children that rely on your income and what coverage they may need if you pass away.
5. Taking Out a Loan
Whether you’re taking out a loan for a car, education, or just to make another large purchase, you’ll want to take a look at your life insurance policy. Depending on the size of the loan and the amount of time you believe it will take to pay the loan off, you may want to up your insurance policy. Similar to point #3, you don’t want to leave your debts in the hand of someone else if you should pass away before they can be paid off.
6. Changes of Beneficiary
Aside from possibly changing the amount of your life insurance policy, you’ll also want to continue to address who the beneficiary of the account is. This will usually change as you go through life. While it may start out as a parent or sibling, you will usually want to change it when you get married. As you get older and have children, you will probably also want to consider adding them to the beneficiaries list. In the event that your main beneficiary passes away before you, you will want to readdress your life insurance policy and make changes.
Your life insurance policy is one of the most important things you should consider. If you have a spouse, children, or other dependent that relies on your income and care, leaving behind a life insurance policy that ensures they don’t need to worry can be a bit of comfort in an extremely tough and confusing time.
You never know what is going to happen in life, so your life insurance policy is not something you want to let go ignored. Making periodic revisions to your life insurance policy can ensure you stay up to date.
Many people are well aware that buying life insurance is a good idea, but they never go beyond merely thinking about it. The real reason why they never take the next step might surprise you. They somehow make the assumption that it is simply too expensive for their budget.
In reality, it would probably be very surprising to these same people to discover that life insurance is actually cheaper than they thought. There are different types of life insurance and they come with a wide variety of prices, often being cheaper than most people assume.
Do You Really Know What Life Insurance Costs?
In a survey, people were asked what they thought the price of life insurance would be for a 30-year old to buy a $250,000 policy for a 20-year term policy. After hearing their answers, it was quickly discovered that people only thought they knew. When shown what it would actually cost, as many as 80 percent of those asked thought it would be much higher, and they were pleasantly surprised to learn what it would really cost.
The Real Cost of Life Insurance
You can get a lot of term life insurance for just a little money. A 30-year old who is healthy can get a life insurance policy with $250,000 coverage for a 20-year term for much less than $1,000 per year. In fact, it would cost a mere fraction of that amount – just about $160 per year!
Doing a little math, it can be seen that it comes out to just a little over 40 cents a day; $13 per month. A 40-year old non-smoker can buy a $500,000 20-year policy for about $36 per month.
Taking the first example of 40 cents per day and putting it into a comparison with other daily costs, life insurance is cheap. You cannot even buy a cup of coffee for 40 cents a day! If you are 30 and healthy, you could afford to buy life insurance to protect your financial obligations if you, as the breadwinner, should unexpectedly die.
Health Issues Will Raise the Cost of Life Insurance
The prices above are for people in good health and who are not smokers. If you smoke, or have some health problems, it is going to cost you more – a lot more. On average, smokers will pay twice as much for life insurance while still young, but possibly close to three times as much when they reach 45 or older. This clearly reveals the impact that smoking can have on your wallet – and life!
In some cases, if your health is not good, you may not be able to get life insurance, if a life insurance exam is required. You may be able to get around this, however, if you buy a life insurance policy for $50,000 or less.
Whole Life Will Cost More Because of Savings
While term life insurance is going to cost much less, it does not offer any kind of a savings program. A whole life policy, on the other hand, is not limited to a term, but it will cover your whole life and it also gives you a way to build some money in savings as cash value.
The Costs of Life Insurance Now Costs Less
Many life insurance companies in recent years have lowered their costs. This is due to the fact that people are likely to live longer, so they have longer to pay. You benefit because it means you save on monthly premiums.
The Real Cost of Not Having Life Insurance
The real cost of insurance needs to be seen in light of what happens if you die and don’t have it. It may mean that the life of your spouse and children and drastically changed if you do not have money in savings to keep their lifestyle going.
That is exactly what life insurance is for. Because you may have a lot of medical bills before you die, not only will our family be left with that debt, which could be considerable, but they also will have to come up with money for your funeral and burial. That can be expensive. They also may not be able to keep on living where they live now.
You could quickly discover what it will really cost for you to buy life insurance. An agent at our office will gladly talk to you and help you get covered – and still help you fit your budget.
It’s called your Unique Selling Point. Defined by Entrepreneur.com as “The factor or consideration presented by a seller as the reason that one product or service is different from and better than that of the competition”. Or in other words, what sets you apart. Whether you are starting a business or already run one, having a USP is a must.
Here are 5 ways to help find your USP:
When developing a product or service the first thing to do is look at the competition. Find out what they are doing right and what they are doing wrong. This is the best way to find out flaws that are worth capitalizing on. It can also be beneficial to look at their promotional techniques and also their pricing methods to see where you want to position your product in consumer’s minds and wallets. Know how the competition differentiates their product. Once you have examined the competition you may then decide how you are going to be beneficially different.
Understand the Market
Know who is going to buy your product or service and know how they are going to do it. In today’s technologically advanced society, most consumers are influenced in some sort of way from social and other types of media. So knowing which outlets are the biggest influencers in your market can be beneficial in delivering your selling point to the consumer.
Define Your Advantage
Once you have studied your market and competition, you must know how you are going to differentiate your competitive competencies. This means knowing why consumers will pick your business over others, essentially, what you have that the competition does not. Another way to view this is narrowing down your target market based on one quality that you possess. For example, a restaurant that offers 5-star dining may only offer gluten free options, narrowing down their target market. This would be a unique selling point for that business.
Test and Refine
Once you have done the first 3 steps you may start to formulate a list of potential USPs that could effectively be implemented. You should then take the list and test each USP to see what works and what doesn’t. This is when the business will begin to redefine objectives and goals. When test USPs be sure to implement advertising and promotional aspects as well to make sure that all pieces of the business are being tested as one.
A USP is arguably the most important part of a business and can take a substantial amount of time to develop. So with that being said, never get discouraged because it will take research and development to come up with a sustainable USP.
When shopping for a new individual health insurance plan, one of the main challenges people face is understanding the sea of acronyms and terminology. Here is a list to help understand some of the most basic individual health insurance terms.
Your premium is the amount you pay to the health insurance company each month (or quarter) to maintain your coverage. When you’re researching plans it’s usually the first cost you see and consider, but it’s important to also factor in the copayments, deductible, coinsurance, and out-of-pocket maximums, described below.
Your co-pay, or copayment, is a flat dollar amount you will pay your healthcare provider for a covered service. For example, you may have to pay a $30 copayment for each covered visit to a primary care doctor, and $10 for each generic prescription filled. Copayments vary from plan to plan and are sometimes different depending on the type of covered service you receive.
Your deductible is the amount you must pay for covered services before your health insurance begins to pay. Insurers apply and structure deductibles differently. For example, under one plan, a comprehensive deductible might apply to all services while another plan might have separate deductibles for covered services such as prescription drug coverage. Deductibles can significantly affect the price of your insurance premium. Typically, plans with lower deductibles offer more comprehensive coverage but have higher premium costs.
Coinsurance is a certain percent you must pay each benefit period after you have paid your deductible. This payment is for covered services only. You may still have to pay a copay.
For example, your plan might cover 80 percent of your medical bill. You will have to pay the other 20 percent. The 20 percent is the coinsurance.
5. Out-of-pocket Costs
Cost you must pay. These are your expenses for medical care that aren’t reimbursed by insurance. Out-of-pocket costs include deductibles, coinsurance, and copayments for covered services plus all costs for services that aren’t covered. Out-of-pocket costs vary by plan and each plan has a maximum out of pocket (MOOP) cost. Consult your plan for more information.
To read more or find other relevant insurance terms, check out this glossary of terms on medmutual.com.
Health insurance is imperative for any individual 26 years old and over, despite if he or she is currently healthy. The Affordable Care Act, which began in 2014, mandates that most Americans must purchase health insurance, even if they are questioning why they need coverage at all.
Similar to auto insurance, you just never know when an accident, or in this case unexpected news about your health, will arise. According to an article published by US News, “Most consumers want and value health insurance, but they can’t afford the coverage or have been shut out from the marketplace because they have pre-existing medical conditions,” (Olivero, Why Do You Need Health Insurance?). However, many people do not realize just how affordable health insurance is. The Affordable Care Act has implemented new affordable options so that you cannot be denied coverage for health insurance because of a pre-existing condition.
If you do not have health insurance, there are many risks you could be taking, such as paying a penalty, financial ruin, denied access to preventive care and primary care, denied follow-up care. There is a $95 tax for each adult, or 1 percent of annual income, if you do not have coverage. In 2016, this price will increase tremendously to $625 per adult, or 2.5 percent of annual income (whichever is greater). In the event that an onset or serious illness, such as cancer or diabetes, occurs, or if you happen to get into an accident like a car crash or snowboarding accident, the bills you will be required to pay will be extremely expensive without insurance. If you cannot pay the medical bills, you may need to file for personal bankruptcy.
Without access to preventive or primary care, another reason you should buy health insurance, you will be unable to detect health problems or diseases at an early state. Without access to mammograms, vaccinations, or prostate cancer screenings, you run the risk of not knowing whether or not you are developing a disease, which could otherwise be easily detected. According to US News:
“Policies also must provide a minimum standard of care known as essential health benefits in 10 categories: preventive and wellness services, ambulatory care services, emergency care, hospitalization, maternity and newborn care, pediatric care, mental health and substance use disorder services, prescriptions drugs and rehabilitative and habilitative services,” (Olivero, Why Do You Need Health Insurance?).
Without health insurance, you will not have access to any of these health benefits – so you must ask yourself, is it worth not being covered?
The answer is no. Even healthy, younger adults need preventive care, annual checkups, and chronic disease management. There is no guessing when you will need certain health care, or when your body will develop an illness or get into a skiing accident. These services offer a wide variety of treatment options for reasonable, affordable prices. Having good health is one of the most important things in your life. So don’t run the risk. Get covered.