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Category: Insurance

  • 6 Tips for Living a Healthy Lifestyle on a Budget at Any Age

    6 Tips for Living a Healthy Lifestyle on a Budget at Any Age

    Eating healthy, managing stress, and staying physically active are the most important things you can do to stay healthy at any age. It’s also possible for anyone, even older adults, to live a healthy lifestyle on a budget.

    Life insurance rates are based on your health status, medical history, age, gender, and occupation. These rates are the cheapest when you are young and healthy. It can be challenging and costly to find term life insurance for seniors, but there are other insurance options for older adults.
    We will include why a healthy lifestyle is important, tips for living a healthy lifestyle, and the impact this has on insurance rates.

    Why is a healthy lifestyle important?
    Eating a healthy diet and staying physically active are the best things you can do to lower your risk for health conditions. Diabetes, heart disease, and cancer are some of the most common chronic diseases in Americans. Living a healthy lifestyle goes a long way in helping prevent these conditions.

    If you are eating nutritious foods and staying physically active, you will also experience many other health benefits. You will feel more energized, have improved moods, sleep better, and manage stress.

    Older adults will find they feel better and move better when they are living a healthy lifestyle. You will have more energy to keep up with children and grandchildren. You will also find it easier to complete daily activities like carrying in groceries, checking the mail, and cleaning.

    6 Tips for Living a Healthy Lifestyle

    #1 – Plan Your Meals
    Planning meals and snacks not only helps you eat healthier but can also save you money. Before you go to the grocery store, think about what meals you will eat in the few days or weeks ahead. See what you have on hand and make a list of what you need for those meals.

    You can use the store advertisements to see what foods are on sale and plan your meals around those foods. Plan meals and snacks to include at least two to three food groups with a source of protein and fiber. Include colorful fruits and vegetables, plenty of whole grains, lean protein, and low-fat dairy products for a balanced and varied diet.

    #2 – Use Nutrition Labels
    The nutrition labels on foods are a wealth of information. They list the calories, portion size, the amounts of various nutrients for health, how those nutrients fall into our daily recommendations, ingredients, and common allergens.

    A quick and easy way to evaluate a food to see if it’s healthy or not is to use the percent daily value to the right of most of the nutrients on the label. If the percentage is 20% or above, the food is high in that nutrient. If the percentage is 5% or less, the food is low in that nutrient.

    #3 – Try Other Protein Options
    Meat can be an expensive part of your food budget. You can either cut back on the amount of meat you are consuming, buy meat on sale, or try other protein options. Foods that are a good source of protein but less expensive are beans, eggs, canned tuna, nuts, seeds, nut butter, and soy products like tofu and tempeh.

    #4 – Schedule Exercise
    One way to stick to an exercise routine is to plan it in your day like a doctor’s appointment or write it in your calendar if that’s helpful. Some people like to schedule fitness classes or meet with a personal trainer to help stay accountable. Others have success with exercising first thing in the morning, while some enjoy a workout after work or during a break in the day.

    Staying active can fit into any budget. If you don’t want to pay for a gym membership, fitness classes, or a personal trainer, hit the great outdoors. You can walk, run, or do bodyweight exercises in a park or your neighborhood to enjoy the benefits of physical activity.

    #5 – Do Activities You Enjoy
    There’s no reason to participate in physical activities that you don’t enjoy. You are more likely to keep up with a routine if you are doing exercises and activities that you like doing. Swimming, walking, biking, or dancing are affordable and fun for any age.

    #6 – Manage Stress
    Everyone has stress in their lives, but the key is finding a way to manage that stress. Hobbies, exercise, counseling, relaxation, spiritual activities, social engagement, and staying organized are all ways to manage stress.

    How does health impact life insurance rates?
    Life insurance rates are based on your health status, medical history, age, gender, and occupation. These rates are the cheapest when you are young and healthy. Your health status and any medical issues can make insurance more costly.

    You can work with an insurance agent or compare rates online to find the best life insurance options for your situation. Taking care of your health improves your quality of life and keeps you energized to live your best life.

    Stay Healthy and Save Money
    Living a healthy lifestyle can fit into anyone’s budget, from young adults to older adults. There are many ways you can eat healthily, stay active, and manage stress to stay healthy and manage money.

    Melissa Morris writes and researches for the life insurance comparison site, ExpertInsuranceReviews. She is a university professor of nutrition and a certified sports nutritionist.

     

  • The Financial Toll of Living With Heart Disease

    The Financial Toll of Living With Heart Disease

    Heart disease has a financial influence on health insurance and life insurance. Trying to get life insurance after heart surgery can be highly challenging — which is why it is essential to understand the financial implications of heart disease.

    It is possible to get term life insurance; however, the premiums are higher. Below, we will go over why people with families face financial hardship, what people with heart disease can do when buying life insurance, and how to minimize the cost of life insurance coverage.

    Why do low-income families with heart disease suffer financially?
    Many families in the United States have financial hardship due to a persistent cardiac problems that they cannot afford to treat.

    The expenses associated with treating chronic heart disease place a heavy financial burden on about one in four low-income households. These costs may cause an economic catastrophe for low-income families, even those with insurance.

    Surprisingly, these expenses weren’t incurred due to extended hospitalization or costly medical treatments. Prescriptions, clinic appointments, and insurance premiums are often to blame for patients’ financial difficulties.

    Chronic illness has a significant financial impact that must be considered. People are harmed by both the disease and the associated financial burdens.

    The out-of-pocket expenses of low-income households with insurance were greater than those of people with limited insurance. Low-income families may not get enough subsidies to pay the total cost of insurance, and out-of-pocket maximums should be based on income.

    Compared to middle- and high-income families, low-income families are more likely to incur chronic heart disease costs totaling more than almost 20% of their income. Low-income families are also roughly 10 times more likely to experience health care expenses that exceed nearly half their annual income than higher-income families.

    Can I get life insurance with heart disease?
    Purchasing a life insurance policy is a great way to invest in your future. Unfortunately, some life insurance firms will not cover individuals because of their medical history. Your term life insurance premiums will be lower if you are in good health.

    Even if you have a history of heart disease or circulation troubles, it’s vital to know that even the first signs of heart disease may impact your ability to get the best life insurance rates.

    Death from heart disease is the most common cause of death in the U.S. As you would expect, severe cardiac diseases are at the top of the list of medical illnesses that impact life insurance premiums.

    Before granting you life insurance coverage, your insurer will consider the unique risk factors you bring to the table.

    You’ll also have to consider the sort of heart condition you have. Congestive heart failure, for example, may make life insurance more challenging to get than well-managed atrial fibrillation. You may have no choice but to pay a higher price in some instances.

    As a result, yes, you can get life insurance even if you have heart illness or issues. Heart patients’ health insurance and life insurance will be costly even if they are not excluded from coverage because of previous conditions.

    When it comes to life insurance, how does having heart disease affect it?
    A cardiac disease might complicate applying for a life insurance policy. You must be honest about your current health and medical history.

    Lying, misrepresenting, or omitting critical health facts will almost always result in a higher insurance premium or denial of coverage.

    Insurers may deny a claim if they find that you misled or misrepresented facts on your application while applying for a policy, or they may lessen the amount your family gets.

    Even if you can’t change the fact that you have a cardiac ailment or risk factor, doing all you can to keep things under control can benefit you.

    What is the relationship between heart disease and the cost of life insurance?
    Your insurance choices may be restricted if you have a family history of heart disease. There are, however, proactive steps you may take to keep your rates low.

    Having a family history of heart disease means that you might need to get life insurance at an early age. This is an essential financial step for long-term stability.

    The healthier you are as a person, the more youthful you are. Because you are less likely to have risk factors for heart disease such as elevated cholesterol or blood pressure, you will be able to get the best possible prices on term insurance.

    Getting healthy is the first step if you’ve put it off for too long and have cardiac problems to deal with. As your health improves over time, you may qualify for cheaper premiums on long-term coverage if you get a short-term policy.

    Your medical history, including doctor visits, prescriptions, and other preventive actions, should be well documented for insurance companies to review your health risks.

    Fortunately, certain life insurance firms provide no medical exam term insurance policies. You don’t have to disclose your medical history to apply for this insurance.

    Imani Francies writes and researches for the life insurance comparison site, Clearsurance. As someone who watched family members battle heart disease, she stays up to date with new health trends to help people make wise decisions with their medical care.

  • How Working From Home Can Save You Thousands of Dollars a Year

    How Working From Home Can Save You Thousands of Dollars a Year

    Since the beginning of the pandemic, people are not only working from home in record numbers but they’re also saving tons of money on expenses they’d otherwise need to pay.

    Working from home can save you money in pay-per-mile car insurance discounts, lunches you would normally eat with coworkers, wardrobe updates, office expenditures, public transportation, and more, leaving you with more cash to save or use for other things.

    Here are a few ways you can save thousands of dollars each year by working from home.
    #1 – Lunches and Coffees with Coworkers
    When people work at their offices, it’s only natural to buy a coffee before work or to eat lunch with coworkers. However, these quick bites add up.

    When you work from home, you’re more likely to make both your lunch and coffee at home, which is cheaper than dining out. Doing so can potentially save you hundreds of dollars per year that you can use toward buying new furniture, decorating your home office, or saving up for a larger purchase.

    #2 – Work Clothes and Upkeep Costs
    A professional wardrobe for the office can be costly. To look presentable in person, office workers are generally required to follow a dress code, though the code itself may vary from business to business. Spending cash on good-quality clothes can add up throughout the year.

    However, when you work from home, you don’t always need to have an extravagant wardrobe. More and more Americans are wearing athleisure while working from home, which can be bought almost anywhere and is significantly cheaper than suits and other work-appropriate attire.

    Keeping quality work wear in tip-top shape also costs money, from going to the dry cleaners and tailor to getting expensive shoes resoled.

    When you’re not required to put on a suit and tie for work, you save money in the long run.
    #3 – Gas or Public Transportation
    The average price for a gallon of gas in the United States has skyrocketed in recent months due to inflation, supply chain bottlenecks, and COVID-19 mitigation measures. Taking public transportation such as a train or bus adds up over time, too. By working from home, you can avoid these hefty prices and save hundreds per year.

    #4 – Tax Breaks
    People who are self-employed are entitled to various tax deductions when they work from home.

    If you have a home office, you can deduct the percentage of space (compared to your entire home) that you work in from your taxes. For example, if your home office takes up 10% of your home, you can deduct that amount in insurance costs or utility bills. Some of your rent can be written off, too.

    There are even COVID-19–related tax breaks for 2021. If you dealt with issues related to COVID-19 during the first nine months of 2021 and were unable to work, you can claim sick and family leave credits.

    #5 – Health Improvements
    Morning commutes can be stressful. From spending hours in the car dealing with traffic to running after the train so you don’t miss it, the stress of commuting takes a toll on the best of us.

    This can potentially lead to your spending more money on medications and therapy. People who work from home can cut that stress out of their lives and feel less anxious as they take the 10-second commute to their home office and put away that gas money toward other things, like retirement.

    You’ll also have more time to hit the gym and cook healthier foods since you won’t be spending hours in the car or on the train. This will also lead to less time at the doctor’s office to receive treatment for conditions related to poor diet and exercise, therefore saving you money.

    Sleep health is extremely important. Lack of proper sleep hygiene can lead to all sorts of dangerous health woes, including depression, obesity, and heart disease. Working from home gives you more time to get enough sleep since you won’t be waking up as early to commute to work.

    #6 – Low-Mileage Car Discounts
    Some drivers can get discounts on car insurance if they cover low mileage. Since insurance rates are based on risk and time spent on the road, this means that low-mileage drivers are considered less risky drivers. This is why it may be possible to receive a discount if the miles you cover fall within discount criteria.

    Every insurance company defines “low mileage” differently. However, this number can usually be anywhere from 7,500 to 15,000 miles per year. Since remote workers are driving less than they used to, they may be eligible for low-mileage car discounts.

    Talk to your insurance provider about low-mileage policies.

    Luke Williams writes and researches for the auto insurance comparison site, BuyAutoInsurance.com. His passions include writing about insurance, business, finance, and other ways everyday people can spend better.

  • Prepare for the Unexpected: Why Buying Life Insurance Early is a Smart Decision

    Prepare for the Unexpected: Why Buying Life Insurance Early is a Smart Decision

    Thinking about life insurance makes most people cringe. Nobody likes to plan, let alone pay, for something completely dependent on their death.

    Though that time seems far away for most of us, in many cases, getting accidental life insurance quotes and then choosing a plan is the best way to protect your family in case something happens to you.

    Who should get life insurance?
    The easy answer here is that anyone with a family or loved ones who depend on them should get life insurance, but it is also beneficial for those with large debts or loans.

    If you were to pass away and you have someone else depending on your income such as a spouse or children, it’s a good idea to invest in life insurance so they would have money to live on after your death.

    The other reason life insurance may be a good idea is if you have a home mortgage or a significant amount of student loan or even credit card debt. In this case, if you were to die, you don’t want to leave your loved ones with a massive debt to pay, so life insurance is a good option.

    What types of life insurance are available?
    Generally speaking, life insurance can be broken down into term and whole life insurance. The main breakdown goes like this:

    Term life insurance: This is the most affordable option. You pay a premium each month, and your beneficiaries get paid if you die within the term of the plan. Most plans are about 10 to 30 years, and if you outlive the plan, you can renew it year by year or start another plan.
    Whole life insurance: This plan extends until you die, and it has a cash value. As long as you pay your premiums, your premium rate and the death benefit don’t change. You won’t have increases in your premium as you get older, but this is countered by a base level of higher premiums compared to term life insurance.

    When looking at these two types of plans, the next step then becomes how to decide between them and which type is the most affordable in the long term.
    How to Choose the Type of Life Insurance

    The general recommendation is that term life insurance is the way to go for good coverage at a reasonable price. Because whole life plans are far more likely to need to pay out (because they span all the way until death), the premiums are much higher.

    As far as spending the extra money on whole life insurance, though, these have a cash value and are meant to be a form of investment. However, there are better ways to invest your money.

    Rather than spending more on life insurance, it’s typically better to put that extra money toward a 401(k), a Roth IRA, and other investments.

    The purpose of life insurance is to replace your income, not to be an investment. So find the most affordable term life insurance plan and put the rest of your money in sound investments.

    When should you buy a life insurance policy?
    The younger you start your policy, the better. If you are single, you should probably wait until you have a spouse or some dependents. But after that, youth is in your favor.

    With term life insurance, if you are young, you can find a variety of relatively low-cost life insurance plans. For example, Allstate has a 20-year, $250,000 plan for a healthy 25-year-old that costs $11 per month. A similar plan at State Farm is just over $15 per month.

    The other point to consider is that the earlier you start your term policy, the lower your rates. If you are 25 years old and you get a 30-year plan, you can keep the same low rates until you get a new plan at age 55.

    As you age, rates go up, as you are more likely to die when you get older, statistically speaking. Thus, expect the plan you get at 55 years old to have a higher rate than the one you got in your 20s.

    What happens when the insurance term ends?
    With term life insurance, there is a fixed term. This can range based on the company and plan you choose, but let’s say you have a 30-year plan. At the end of those 30 years, you’re still alive, so what comes next?

    There is no cash value to term life insurance, so you don’t cash out any money if your term expires and you are still living. Your family only gets money if you die within that 30-year term.

    So if you have outlived your plan, the next step is to talk to your company about options for getting a new plan. Price competitors for life insurance quotes to see who can give you the best rate. Make sure to go with a reputable, reliable insurance company.

    Luke Williams writes and researches for the insurance comparison site, Clearsurance.com. His passions include writing about personal finance, insurance, and other ways people can save and invest their money.

     

  • How to read a benefit illustration of a ULIP policy

    How to read a benefit illustration of a ULIP policy

    A life insurance policy protects you and your loved from the various uncertainties of life. Basically, it covers you from life risk. This cover is in the form a life cover that you, as a policyholder, get when you purchase a life insurance policy. One of the types of life insurance policies is the ULIP policy. This policy provides the dual benefit of investment and life insurance cover to the policyholder and their loved ones. Depending on your requirements, there are different types of ULIP policies to choose from. If you are planning to buy this policy, it is important that you read the benefit illustration of your respective policy. Read on to understand more about ULIP and its benefit illustration (BI).

    What is ULIP policy?

    When browsing through the different life insurance products, you might come across a product called ULIP. What is ULIP policy? ULIP, which is short for Unit Linked Insurance Plan, is a life insurance policy that allows the policyholder to gain wealth through investments. However, it also offers the policyholder life insurance cover from different life risks. The premium that you pay towards the policy is split into two: half is diverted towards the life cover and the other half is used for investments. You can invest in equity funds, debt funds or in both based on your risk appetite and life goals.

    What are the types of a ULIP policy?

    ULIP policies are based on the types of funds under the policy for investment. The types are:

    1. Equity funds: Investments are made in stocks of market-listed companies. This fund has a huge risk factor and offers higher returns. It is usually the choice of people who have a higher risk appetite.
    2. Fixed income funds: Investments are made in government securities and bonds and corporate bonds that allow a fixed steady income. This fund carries low risk and offers low-to-medium returns.
    3. Liquid funds: Investments are made in cash funds, money markets, and bank deposits. This fund carries a low risk factor and offers low returns as compared to equity and debt funds.
    4. Balanced funds: Investments are proportionately balanced between equity and det funds. This lets the investor get good returns without a high-risk factor.

    Which fund should you opt for?

    Depending on what your life goal and objective is, the fund should match accordingly. If you want to secure the future of your child or your loved ones, investing in debt funds or balanced funds would be beneficial. If your goal is wealth creation, you should opt for equity funds due to its high returns. 

    What is a benefit illustration?

    As per the IRDAI mandate, life insurance companies are required to provide benefit illustration to the interested buyer. Benefit illustration of a ULIP gives the customer an idea about things such as how the premium they pay would get invested, what would their returns be based on the growth of their funds and what charges would be applied. It also helps the customer get an idea about how their funds will grow during the term of their policy.

    How to read a benefit illustration?

    The benefit illustration of your policy contains many terms that you may find confusing at first. However, they are quite easy to understand. Here are the main terms that you should be aware of when reading a benefit illustration:

    1. Policy year

    This shows you the time period of your policy and how long you will be invested in the ULIP policy that you purchase.

    1. Premium

    This shows you the amount of premium that you will be paying towards the policy on an annual basis.

    1. Allocation charges

    Allocation charges are applied on the premium that you pay for the policy.

    1. Policy administration charges

    These charges get deducted from the fund value of your policy. The charges could either be fixed or can be variable.

    1. Management charges

    Your insurer charges you for managing your funds for the duration of the policy. These charges are known as fund management charges.

    1. Yield

    Yield is the amount that you gain in returns from your ULIP policy. These returns are calculated at 4% and 8%, based on the mandate set by the IRDAI.

    1. Surrender value

    This shows the amount that will be paid to you if you surrender your ULIP policy before the date of maturity. Do keep in mind that ULIPs have a lock-in period of 5 years.

    When you plan on purchasing a ULIP, always remember to ask for the benefit illustration for your policy from your insurer. If you plan to buy a ULIP online, you will be able to check the benefit illustration on your system itself.

     

  • Why You Should Buy Term Insurance If You Are an Entrepreneur

    Why You Should Buy Term Insurance If You Are an Entrepreneur

    An entrepreneur is responsible for managing the finances of the enterprise’s administration and employees. An entrepreneur should, therefore, have efficient financial management skills. They should know where to put the right funds and where to withhold them. As an entrepreneur then, it is vital to utilize your funds the right way by opting for a term insurance. The purpose of any insurance plan is to safeguard you against a variety of risks. As an entrepreneur, one is fraught with risks on a regular basis.

    What is the meaning of term insurance? 

    Term insurance is a kind of insurance policy wherein the insurance company provides financial compensation to the chosen nominee/s if the policyholder passes away during the policy duration. One can ensure the validity of their policy by paying the premiums when required. Term insurance is a pure protection plan, meaning that it is concerned only with providing financial protection to your loved ones in your absence. It is not related to market-linked instruments.

    Why entrepreneurs should have term insurance 

    Increased liabilities 

    When you are a businessperson responsible for running the establishment, you may end up taking on more debts than the average person. These debts may be a part of a strategic business plan aimed to foster growth or expansion for your organisation. However, if anything were to happen to you, then there is a high chance that your family may be liable to handle these debts on their own. This may put a large dent in their already precarious finances. A term insurance plan with a high sum assured can eliminate such unpleasant situations and ensure that your loved ones have funds to pay off any debts.

    Unstable income

    Unlike the salaried employee, an entrepreneur may not have a regular income. Their income usually depends on how well their business is performing. This is more likely to occur if the company has been newly established. This could lead to their personal savings bearing the brunt. And if anything unfortunate were to happen to them, their loved ones would be left without adequate funds. Therefore, having a term insurance plan becomes paramount; it ensures a financial cushion for the family no matter the company’s performance at the time of the policyholder’s passing away.

    Long-term life cover at affordable premiums 

    Entrepreneurs are often very particular about where they are spending their money. A term insurance plan may also be quite suitable for an entrepreneur because their premiums are considerably low.

    What’s more, there are many term insurance plans that offer coverage up to 80 to 90-year-olds. As an entrepreneur, you may be working for a longer number of years than the average employee. So, you may also need coverage that extends for the long-term duration; and if you choose the return to premium feature, then you even get the total premiums returned to you if you survive the maturity of the policy. All this at a relatively lower premium!

    Points to keep in mind when purchasing term insurance as an entrepreneur 

    Now that you know the meaning of term insurance and why you need it, let’s take a look at the points one should keep in mind when buying it:

    Opt for a high sum assured 

    Get a thorough understanding of your liabilities, domestic expenses, family’s financial goals, and so on, before you choose the sum assured. The sum assured should ideally be high to fulfil all these funding needs.

    Use a term insurance calculator 

    A term calculator is an AI tool in which you can enter variables such as your age, gender, coverage requirements, sum assured, chosen term, and so on. You then receive an estimated premium. As an entrepreneur, you can utilize the term insurance calculator to plan out your finances. You will get a better awareness of how much you will have to spend to get the sum assured you want.

    Consider selecting the lumpsum premium payment mode 

    As someone who may or may not have a regular income, paying premiums on a regular basis can become difficult. Instead, you can opt to pay your premiums in a lump sum at once, ideally when the revenues of your establishment are good, and your personal finances are stable.

    Ensure to read the terms and conditions thoroughly before you sign any term insurance contract.