How to Compare Life Insurance Quotes

by Mrs Money

Having a life insurance policy that isn’t adequate for your family is something that can be detrimental to your loved ones. After you pass away, you want to ensure that they have access to the benefits they need to cover your demise and whatever other debts they’ll have to deal with because of it. As you’re looking around for life insurance quotes, it’s important that you keep these things in mind to help you compare and choose the best policy.

Check for Exclusions the Company Has

Most life insurance companies don’t treat all deaths equally. For instance, you’ll find that typical exclusions include death in war, suicide, death from dangerous activities and death from a private plane crash. So if you’re one who likes to do adventurous things, like car racing, mountain climbing or hang gliding, your death from these activities could void your policy, leaving your family with nothing to collect.

Determine the Term of Life Insurance You Need

There are different terms available for life insurance policies, such as 5 years, 10 years or longer. When you’re comparing rates, make sure you’re comparing those of the same term. This will keep you from mistakenly purchasing a policy that is more expensive.

Make Sure Your Age in the Quote is Accurate

Something as simple as putting in the wrong age can drive your policy up or down. You should look over the quote’s details to ensure that it has your correct age. If you overlook this and go to purchase, your premium could end up going higher when they correct the age later on. Your age is what helps insurers determine how much to charge for policies.

Don’t Lie About Your Health

Your health condition is a major factor in how much you end up being quoted for an insurance policy. Although there is no physical required, it’s a good idea that you still tell the truth about your health. Your medical records will be examined, which will expose the true nature of your condition, and if more is found than what was told, then your premium will more than likely rise.

When you’re looking for an insurer, make sure to check out their financial strength. You can review reports like the AM Best and S&P audit. The Internet can also be a great way to find good and bad news about a company. Combine this with the above tips and you should have no problem finding a great rate with a great company.


How To Choose a Home Loan

by Mrs Money

When trying to choose a home loan, the choices can be overwhelming.  There are so many options: mortgages, home equity loans, home equity lines of credit, and combinations of the top three.  Since we’ve owned our house (almost 8 years now- I can’t believe it!), we’ve had a combination of loans on it and have refinanced twice. We started out with a mortgage and a home equity loan, refinanced to a home equity loan only, and currently have just a mortgage.  It’s really nice and simple to have just the one payment.  Here are the options for loans for purchasing or refinancing a house:

-Mortgage.  A mortgage is a traditional loan for purchasing a house.  With a mortgage, there can be fixed rates and terms, or variable rates.  Personally we always liked fixed rates and terms because we like knowing exactly what is going to happen with the mortgage.  Most mortgage companies set up an escrow account that will pay the property taxes and homeowners insurance.  Each month, a set amount of the mortgage payment will go towards principal and interest, and escrow.  Personally we like to do our own escrow so when the tax bills come, we can pay them ourselves.  It’s just easier that way. We set up a separate savings account and put money in that each month.

-Home Equity Loan.  A home equity loan is a fixed amount of money, with a fixed rate.  For example, when we purchased our house we took out a mortgage for 80% of the purchase price of the house and then had a home equity loan for 15% of the purchase price so that we could avoid private mortgage insurance.  It helped save us money.  Each month we had a mortgage payment and then a home equity loan payment.  It was kind of a pain, so when we refinanced we were thankful that our house value came back high enough that we could consolidate down to just one loan. Fixed rate home loan repayments do not change during the fixed rate period, which is something that I really like.

-Home Equity Lines of Credit.  A home equity line of credit is a lot more flexible than a mortgage or home equity loan.  With a home equity line of credit, there is a set limit of say $50,000.  However, there is no interest charged unless there is a balance on the home equity line.  When there is a balance, interest is charged and the minimum payment is generally interest only.  I am not a big fan of this, because if you pay the minimum payment each month you’ll never pay down any of the principal.

Overall, I think a mortgage is probably the best type of loan when purchasing or refinancing. I like things simple, and fixed rates and terms make the most sense to me.

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