making money

Money Management from an Early Age Will Pay Dividends

Children whose parents teach them to appreciate the value of money from an early age have a head start in life. If you were asked to do some simple chores to earn your pocket money and perhaps put your loose change in a money box you will grow up understanding that value as well as the concept of saving. These are valuable lessons because money management seems to be decidedly lacking in US society – judging by the level of credit card debt in the country as well as the minority of citizens who have a realistic emergency fund and adequate retirement savings. The Social Security System is under increasing pressure and every adult should look to take action to provide for their senior years if they expect them to be comfortable.

Pay Off Expensive Credit Cards

Debt can be ever present starting from the late teenage years. Most youngsters pursuing an education need financial help to do so in the form of student loans. Student loan rates continually rise, but government loans provide the best rates available on just about any type of debt.

Some students choose to supplement their loans with spending on their newly-obtained credit card. That spending is not a good idea because the interest rate applied to any balances still outstanding at the end of every month is harsh. If only those high interest rates were available for regular investors for their own money!

The point is that credit cards are dangerous and carrying balances is expensive. Those who realize the value of money reject the idea of an expensive credit card and everyone else should get those balances paid off as soon as possible.

Save Money

It is never too early to start saving. Saving towards the future is important. That may be a deposit for real estate, accumulating an emergency fund or beginning the long road to preparing for retirement. It is never too early to do that, and even small amounts can grow quickly thanks to compound interest.

Those who reduce expensive debt and start to save towards retirement will reap the rewards for their common sense. As an illustration, if you put away $100 a month from the age of 25 at 8%, the fund would have reached $60,000 twenty years later. You will need a far greater sum before you retire but if you increase the monthly amount over the years the growth will be impressive. Is $200 a month realistic after you have been working for 10 years? Perhaps even $300 and if you have a 401k plan with an employer who contributes as well you will be doing nicely.

Loss of Years

If you forget about retirement until you get to your forties you have lost the aforementioned potential growth and also have many fewer years to establish your fund before your retirement looms large.

The Social Security system is the savior of many who have not made sufficient provision for retirement. 40% of the population draw benefits at the minimum possible age, 62. Those who can delay taking benefits until the latest date, 70, receive far more. Those who began their preparations for retirement in their 20s can rely on another investment; the growth they get on the eight years when they have deferred their benefits.

If they have managed their money well there are several options for saving even more. Some use real estate as a means of accumulating assets, and the S&P 500 (which is accessible through index mutual funds) offers growth with minimal risk. While the recession damaged some investment progress for the short term, that is no reason not to prioritize paying off debt and saving towards the future.

The recession was a shock but the economy is still strong. With levels of employment rising month on month things have returned. Those that are not spending and saving responsibly are ignoring a valuable piece of advice.


Tips to Reduce Your Car Insurance Bill

Everyone is trying to spend less money these days, and one way to do so is to reduce your car insurance bill each month. This is one recurring bill that many people think just can’t be reduced, but that’s really not the case. In many cases, you can get a quick rate quote and find lower insurance rates.

Some things on this list can be accomplished over time, while others can be done right now. Get in touch with your insurance agent to see how you, personally, can save money.

Here are five tips that will help you reduce your car insurance bill.

1.  Get multiple quotes

Who says you have to stay with the same insurance company forever? Like you would with anything else you buy, shop around to find the best price. Some insurance companies offer the ability to get a quote over the Internet, thought that may not always be the best way to go.

Consider calling three or four agents and asking them to quote from all the companies whose insurance they offer. To make sure you’re being quoted the same thing each time, you’ll want to write down your current deductibles and other coverage information, and then ask each agent to quote based on that information to you can ensure your new policy with have the insurance coverage you need. You will be surprised to find out how much insurance rates can vary among insurance providers!

2.  Stack insurance policies

Some insurance companies offer discounts when you have multiple policies. For example, you may receive a discount if you have your homeowners, health, life, and auto policies with the same company. Be sure to ask for discounted rates for multiple policies, as well as separate ones. While it’s usually the case, a stacked policy might not always be the best way to go.

3.  Good driver discount

Almost every insurance company offers a good driver discount. They may be different in some ways, but in general they’re about the same. Some companies may offer a monthly or annual discount for those who haven’t gotten any tickets or had any accidents, while others may offer refunds based on your driving record.

4.  Take a defensive driving course

You’ll find that some insurance companies offer discounts to those who have taken defensive driving courses. You may think this is only for student drivers, but that’s not always the case. Ask your agent if this is something they offer to drivers of you age.

5.  Ask your agent

There are many other tips that will help you reduce your car insurance. These are often available through your agent. Some examples may be the kind of car you drive, security options available for your car, defensive driving or other driving courses, and more. So it’s a good idea to check with your agent to see what you can do to reduce your bill.

Car insurance is something every driver is supposed to carry by law. In some states you can’t get license plates without proof of insurance. But just because it’s a law doesn’t mean you will always receive the best price possible. Be sure to find out if you qualify for any discounts so you’ll be able to reduce your auto insurance bill.

We all want as much money in our pockets as we can have, and businesses are no different. When you’re trying to reduce your expenses each month, consider taking steps to reduce your car insurance. Ask your agent to review your policy to see if you’re receiving the best price. Also consider checking around and asking for quotes from other companies.

photo credit: perthhdproductions


Kick-Start Your Stalled Career in the UAE

When money is tight and the job promotion prospects on a scale of 1 to 10 stand at something less than zero, maybe it’s time to look at pastures new for that next all-important corporate leg-up. After all, you’ve got the degree, the business skills and the experience to match. Why not make the most of them in the United Arab Emirates (UAE)?

Could be the move you’ve been waiting for, the opportunity to kick-start the stalled career. But if lack of cash is likely to hold you back, you can always apply for an HSBC personal loan to tide you over – assuming, of course, you bank with HSBC in the first place. If not, there are a number of other equally familiar multinationals operating both in the US and the UAE who may be able to offer you a bank loan. Go check them out.

Salary, a subject worth talking about, or not. Read on. Sales manager job in the USA typically pays around $25,000 a year. Same sort of job in the UAE pays an average of $60,000 a year. Big, big difference! But here’s the disclaimer. The salary figures quoted are purely for illustrative purposes only and not meant to represent a definitive statement of fact – or words to that effect. Hopefully, you get the drift. Comparing jobs and salaries in different countries is a bit like comparing apples, oranges and hot dogs. Kind of pointless!

However, one thing very much worth talking about is tax, personal tax, or the lack of it. Personal taxes in the UAE don’t amount to a tin of beans. Yep, you read it right, not a tin of beans, nada, zilch, zero. Wow!

But – sorry to burst the proverbial bubble – US citizens and resident aliens are taxed on their worldwide income. So says the IRS. However, some taxpayers may qualify for the foreign earned income exclusion and foreign housing exclusion, or foreign housing deduction, if:

  • Their tax home is in a foreign country.
  • They are US citizens who are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. They are US resident aliens who are a citizen or national of a country with which the United States has an income tax treaty with a non-discrimination article in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.
  • They are US citizens and resident aliens who are physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

Got all of that? You might even be able to deduct away from home expenses for the likes of travel, meals and lodging. However, big suggestion coming up.

Check everything out beforehand with a financial adviser in order to save you a headache or two further down the road. Let’s face it, no one likes to talk about tax. But falling foul of the tax authorities is no walk in the park. You don’t want you and the career you cherish so much to end up behind bars!


What Are Bank Accounts Called in the UK?

Opening a bank account in any country is a big step forward toward living independently. Regardless of where you live, it is vital to have a bank account in order to pay bills, make purchases, and to have a safe place to keep your funds. While all banks have something in common in that they all have accounts available to consumers, the similarities may very well end there. For instance, there are many differences between the banks in the United States and those in the United Kingdom.

Most people in the US are familiar with checking account, but they are called current accounts in the UK. These accounts allow consumers to pay bills, use an ATM, and debit their account for the expenses that they incur. This is just one of the differences between bank accounts in the U.S. and the UK. Other differences include interest rates on accounts, banking hours, and fees for ATM usage.

Banks in the United States operate with extended hours, staying open late on weekdays and Saturdays, and sometimes even opening early in the morning throughout the week, all in an effort to gain the most business from potential consumers. Some banks in large cities are open seven days a week. Little by little, the traditional business hours have eroded away until banks in the United States have developed a business model which requires them to be open almost all of the time. The theory behind this is that the longer they are open, the more customers they will get. However, banks in the United Kingdom do not operate in this fashion. Banks in the UK have very standardized hours of operation, much more closely resembling the hours U.S. banks used to keep years ago. UK banks do not compete for business by staying open at all hours. As a matter of fact, when the typical work day is done and business is closed for the day, so to do the banks close. In addition, they do not have hours of operation on Sundays, as some U.S. banks do. They close on Sundays for religious reasons, as opposed to banks in America.

Another difference between banks in the two countries is the interest rates that are paid on accounts. For example, checking accounts in the United States may or may not pay any interest at all. It is determined by the individual bank how much the interest is that is paid back to the account holder, and in many cases, there is no interest to be paid at all on checking accounts. U.S. banks are paying interest on an increasingly rare basis, while banks in the United Kingdom pay approximately 3% on current accounts. This is important for consumers because they are able to get a small return on their investment with the bank. Whereas most banks in the United States force consumers to have several different types of accounts if they are to receive any interest, UK banks simply pay the interest on the most common bank account such as the current account. This allows account holders in the UK to receive a small amount of interest on their accounts, as opposed to being forced to pay exorbitant fees on their bank accounts as is most often the case in the U.S.

Using the ATM offers yet another contrast between banking in the U.S. versus the UK. U.S. banks almost always charge fees for using the ATM. Some banks do not charge fees if the ATM is owned by the same bank where the account is held. However, if the ATM is not owned by the bank, there is almost always a fee, sometimes as high as $3. Moreover, the customer’s bank often charges an additional fee for using an out of network ATM, which usually brings the charge to the consumer to around $5 for each time the ATM is used. Unlike the U.S. banks, financial institutions in the UK allow customers to use ATM’s without forcing them to pay fees to do so. Customers have the ability to withdraw their money as needed, free of penalties for taking their own money out of their bank accounts.

Opening an account in the United Kingdom is not a complicated process. Much like in the United States, customers usually have to present a given minimum amount of money to the bank to put in the account. This money activates the account. Certain things to pay close attention to when opening a bank account in the United Kingdom include whether or not the bank is willing to provide overdraft protection on the account. It may also be pertinent to take note of which banks are willing to add funds to the account when it is opened, as some provide a one-time payment to the customer’s account when it is activated.

current accountThere are many differences between banks in the United States versus the United Kingdom. It is imperative to understand the details of each account and know which fees, if any, are included. Bank accounts in the U.S. typically charge much more in fees than do banks in the UK, and often they do not pay interest rates the same as UK banks do, as the operating practices between banks in the U.S. and the UK are quite different.


Avoid These Mistakes When Buying Life Insurance

Life insurance policies can be essential to you and your family in the event of a catastrophic event. It can be extremely difficult to choose the right policy or select the correct amount of coverage for your family. However, if you follow these guidelines to avoiding ten simple mistakes people make when buying life insurance policies, you will find that it is not so difficult to purchase a good life insurance policy.

Do not assume that the primary breadwinner is the only one with value.

Many people pick their insurance policy coverage based on what will replace the primary income, especially if one spouse does not work. However, it can be difficult to place a monetary or budgetary value on what a non-working spouse does for the household. This includes general household upkeep, organization, domestic tasks, and childcare. It is generally estimated that if you factor all of these things in an additional $100,000 a year minimum is needed to replace that spouse’s contributions.

Do not rely strictly on employer coverage.

“Benefits” can go a long way, particularly for medical coverage. However, life insurance policies offered through your employer are rarely personalized, and are therefore less effective than going through an agent and shopping for your own policy. Employer coverage will only cover you, if that. If you have a family or additional expenses, such as debt or a mortgage, you may want to shop around for supplemental insurance or third party term life insurance policies.

Do not think that families are the only ones who need insurance.

Many young adults and singles fall into the assumption that if one does not have children; one does not need to think about life insurance. This simply is not true. If you have debt, such as a mortgage, think about life insurance to tie up any loose ends you may leave behind. Also, if you have elderly parents or siblings you are close to, or a charity organization you would like to leave a legacy to, consider a life insurance policy. The fact of the matter is cheap life insurance is easily attainable.

Do not assume that price is the only way to shop for the best deal on life insurance.

Just because your life insurance is cheap doesn’t mean it’s the best deal. When you are shopping for insurance, you need to take into account what you would like to wrap up, provide for, or pay off. You also need to consider what health problems run in your family that may come up as potential issues. Find a life insurance policy that fits your needs well, rather than simply being the cheapest life insurance policy you can find.

Do not let your life insurance policy lapse.

When you get a new life insurance policy, you will generally have to undergo a physical. Things that tend to crop up as you age, such as high cholesterol and blood pressure, can negatively affect your rate. Even if you do have a good rate now, should you let your policy lapse you may have to submit to a new physical exam, which could increase your rate. Letting your life insurance policy lapse could cost you hundreds (maybe thousands) of dollars over the years, so you definitely want to avoid this.

These are just sample of the life insurance buying mistakes you should avoid in the process. Buying life insurance shouldn’t be that difficult, but as you can see there are important things to consider.


Index Funds Vs ETFs – Which is Better for Long Term Investors?

If you are an investor then you should learn to identify the difference between index funds and Exchange Traded Funds, or ETFs. Index funds are mutual funds that track the movement of a market index, such as the S&P 500. This allows investors to buy a portion of dozens or even hundreds of shares without having to maintain shares of each individual stock. In other words, it is a quick and easy way to diversify your holdings and invest in what the market does.

Both of these types of investments allow investors to purchase a wide variety of companies in one easy to manage investment. There are many index funds and ETFs that follow a number of different markets, from the entire stock market, to a commodity market, to a specific foreign nation’s market.

When you make a sale or purchase of an index fund, your transaction occurs at the NAV (price) at the end of the day. ETFs are investment funds that are traded like stocks. However, unlike mutual funds, they can be traded any time during the trading day and the NAV is effective at the time of the trade. This can make a big difference when there is a major swing in the markets. But it usually doesn’t make a big difference when all is said and done.

But for basic investors who want to buy a total market index, which is better option, index funds or ETFs?

Primary Differences Between Index Funds & ETFs

Hare are the The primary differences are these:

  • Trading: ETFs are brought and sold during the day; index funds, at the end of the day. ETFs are more flexible, but this shouldn’t be a primary concern for long-term investors.
  • Costs: ETF expense ratios are generally cheaper, but not always. Be sure to read the fine print before making investment decisions. Since ETFs are traded like stocks, you’ll need to buy shares through a brokerage, and you’ll incur a commission with each trade. This commission may be $0 at certain discount brokerages, such as E*Trade, which offers over 80 commission free ETFs. Learn how to buy shares through E*trade.
  • Minimum Investment: ETFs have no minimum investment. Index funds may have minimum investments of a $1,000 or even more. Some of the premium index funds may require an investment of more than $10,000. The minimum investment requirements are usually lower for retirement accounts.
  • Pricing: ETFs are, again, like stocks. There is a bid-ask spread that marks the difference between the price that buyers are offering (bid) and the price that sellers are offering (spread), which is higher than the bid. When a transaction occurs, the buyer and seller split the difference. The bid-ask spread, then, generates a hidden cost that index funds don’t incur. (There is also a risk that an ETF trades at a premium or discount to its net asset value due to market forces, but arbitrage mechanisms – traders who notice this difference and will trade to profit from the discrepancy – usually bring the price back in line with the NAV.)
  • Dividend Reinvestment: It’s easy to reinvest dividends in an index fund. However, it isn’t do this with an ETF. Some stock brokers feature automatic Dividend Reinvestment Plans (DRIPs), but others don’t. If your brokerage features DRIPS, you may be able to reinvest your dividends without an additional transaction fee. Otherwise, you may have to pay to reinvest your dividends.
  • Taxes: Some ETFs are more tax efficient than index funds. You’ll still have to pay taxes on dividends and capital gains, but you have control over the timing of the capital gains distribution. With index funds, when any shareholder liquidates his stake, fund managers will have to sell shares to raise the money. This generates recognized gains, which are distributed on to the remaining fundholders, who will have to pay taxes on the gains. ETFs also have the added advantage of being able to trade stocks through “in-kind” transactions, which allow them to rebalance their portfolios without incurring capital gains on those transactions.

Index Funds Vs ETFs – Verdict:

Depending on your trading habits, ETFs may be the better bet as long as the commissions aren’t too high. ETFs are easier to trade, generally have lower expense ratios, do not have minimum investment requirements, and are often more tax efficient. If you invest through a discount brokerage or only buy ETFs that don’t have transaction fees, you can generally come out ahead over the long run. But if you invest on a monthly schedule, then you might want to consider a mutual fund, which generally won’t have any associated transaction fees.

Here is the most important thing to remember: index funds and ETFs are both great ways to diversify quickly and cheaply, and the sooner you start, the more you’ll gain.


Where Does Your Spouse’s Credit Card Debt Go When They Die?

It is not easy to help the surviving spouses deal with the financial burden after the death of their better half. The financial crisis that may come around immediately can be overwhelming when faced together with the emotional breakdown one has to suffer.

Before we find out whether the surviving spouse is responsible for late spouse’s credit card debt, take these three essential steps soon after a spouse’s death:

  • Contact creditors
  • Ask for credit report
  • Inform credit agencies

Once these steps are taken, you should check whether you are the bearer of the credit card debt of your spouse or not.

The region where you live and the account type will determine who is responsible for the remaining credit card debt after a person’s death. Here is some information you may find helpful:

Secondary Cardholders and Authorized Users

Whether the surviving spouse is the secondary cardholder or an authorized user, in both cases, the outstanding credit card payment are not be paid by him or her. In this case, the debt belongs only to the deceased and will be set of against the estate of the deceased.

Joint Account

In case of a joint account, where the account belongs to both the spouses, it becomes the responsibility of the surviving spouse to pay the outstanding balance. For spouses who have a joint account, the debts of the deceased are transferred on the name of surviving spouse. He or she can choose to continue to the account under his or her title or close it.

Individual Account

This is the tricky point. If the card was titled solely under the name of your spouse, you will not be considered responsible for paying the outstanding debts on credit card. However, debts and assets accrued during the period of asset are taken as joint property if you reside in a state that follows community-property law.

The ten states that follow this law include: Arizona, Alaska, Idaho, California, Nevada, Louisiana, Texas, New Mexico, Wisconsin and Washington. Living in any of these states will consider you responsible for the debt of credit card of your late spouse. Don’t forget to cross check with the laws of your state for more information.

Deceased’s Estate

In case the surviving spouse is not help responsible for the outstanding credit card payment, then the credit card payment is paid from deceased’s estate. If there are assets under the name of the deceased, the executor in charge of taking care of the assets will pay off the balance. However, if the assets are worth less than the outstanding balance, the credit card providers usually consider it as a debt loss and write it off by closing the credit card.

For example, for the outstanding balance of $10,000, the $1,000 worth of assets will not cover the entire amount. But since the company cannot ask for more after recovering $1,000, the remaining $9,000 will be written off.

Keep in mind the following important tips:

Educate Yourself – It is important to learn about credit cards and different policies to keep yourself secure from any such liability. Check the top websites and use them as a good resource with valuable information about different credit cards.

Know your Rights – Learn about the situations where you will be held responsible for your late spouse’s liabilities and vice versa. The Credit Card Act of 2009 has stated that the outstanding balance of credit card should be provided to the executor within thirty days of request. Also, the issuer has no right to charge annual fees or late fees when settling outstanding debt from the deceased’s estate.

The guidelines provided by the new Federal Trade Commission also restrict debt collectors to adopt an aggressive approach to the relatives of the decedents in order to recover the balance.

Get Legal Help – These doors are always open to you for help. In such cases, it may become imperative for you to learn about legal information. This information can be accessed from a website. You can seek assistance from an estate-planning attorney. They will help you through the procedure, legally.

It is important to possess some information on such important matters to relieve yourself from credit card debt of your late spouse.

Author’s Bio. Celina wants to help the general public deal with the emotional breakdown they suffer on the death of their loved ones along with dealing with the legal matters wisely, which can save them from undergoing financial crises. She recommends to check there’s more on credit card debt relief options at this website.


Ways of Getting Out of Debt

Sadly, for many people debt is a way of life these days. The cost of feeding a family, keeping your car on the road and paying a mortgage can quickly spiral out of control.

Sometimes, it can be a small thing which tips you over the edge – a broken down washing machine might not seem like a big deal, but it can be the straw that breaks the camel’s back leading to major problems.

Keeping up with repayments on credit cards and loans may be taking up all your spare income, which means when something goes wrong, you may be left with the choice of missing payments or going without a vital gadget. It is always a good idea to save for an emergency by opening a rainy day fund, but sometimes you don’t even have enough money in your budget to do that.

However, many people will be sitting on a source of cash they haven’t even considered. In many cases, unlocking the value of a property could be an ideal way to rapidly reduce debt levels and put them on the path to getting out of debt.

Many people view property transactions as a long drawn out process, but such problems can be avoided by selling your house quickly directly to a specialist company rather than searching for an individual buyer who may dropout without warning.

These dedicated property buyers can complete a deal for a home in a little as seven days, which could free up much needed cash to pay off debts.

For some people struggling with bills, it may make sense to unlock the value of their property and then use this cash to reduce expensive debts such as credit card borrowing and personal loans.

But obviously, if you are going to do this, accessing cash quickly may be a huge factor, which explains why some homeowners decide to sell their property to a specialist firm.

Paying off your debts in this manner won’t be suitable for everyone, in fact if your outstanding mortgage is more than your property is worth it won’t even be possible.

For some though, it could be the dream solution, especially if your children have left home and you want to move somewhere smaller but would like to get your debts under control at the same time.

So if the weight of debt is getting you down, why not think about all the ways you could lift that burden and then take positive steps which will take you towards a debt-free future.

Why not start right now?


Online Savings Accounts Feature the Highest CD Rates

When you want to avoid the pitfalls of making risky investments, choosing to invest in a CD is a great option. CDs have historically offered consumers solid rates of return. A CD makes a wise investment for several reasons. First, you do not have to worry about the value of your money suddenly dipping like it could if you owned stock options.

You also can earn a consistent rate of return every year with a CD. When you own stocks, the rate of return may differ every year. With a CD, that is not the case. You can earn consistent certificate of deposit rates.

1. Meet with managers from different banks.

Some people feel restricted to starting a CD with the bank that they currently use for maintaining a checking and savings accounts. You should not feel locked into using any particular bank when you are going to open up a new CD. Meet with the managers of different banks in your area to discuss the options that you have.

Some banks may offer a CD option that has a higher rate of return in comparison with CD options from other banks. Make sure you speak with managers from multiple banks so that you can find the best option for you.

2. Consider buying a CD online.

Online banks frequently hold promotions in order to increase the number of patrons that they have. One promotion offered is that you can buy a CD online and earn a higher rate of return as a result. Try to look for FDIC-insured online banks that offer CD promotions. You can usually find these promotions and earn an interest rate of five to six percent.

3. Look for online reviews.

You can read through online reviews to also get an idea of the best CD rates out there. Banking comparison websites usually feature hundreds of consumer reviews that can help you make the right choice if you are thinking about opening up a CD online. These reviews can also help you gain a better understanding of the customer service that a bank offers for its customers. It is always a good idea to check out what other people have said about a bank before you decide to open up an account with it.

4. Do check with your home bank.

Home banks may offer you the best CD interest rates because they want to keep your business. While you should always shop around for CD interest rates, you also should not immediately dismiss the idea of opening a CD account with your home bank. Your home bank may even go out of its way to beat the interest rates offered by competing institutions.

Following these tips will help you find the highest CD rates and earn more for your money. Keep researching the best CD rates, and you may find a great investment that provides you with additional income for the years to come.


How To Get Life Insurance With No Medical Exam

Virtually everyone needs a life insurance policy. There are many resources for finding quality life insurance but many of the insurance agencies writing policies for life insurance coverage require a complete medical exam before coverage can be granted. For some, a medical exam would prevent a person from getting a good rate on an insurance policy. For others, they would not be eligible for insurance coverage due to medical issues. That is where no medical exam life insurance policies can be a good option.

Finding No Medical Exam Life Insurance Policies

There are many insurance companies that advertise no medical exam life insurance, including many online companies. Their websites proclaim coverage without exam and advertise that all consumers have to do is answer a ‘few simple questions.’

While it is possible to find good deals on life insurance without a medical exam, some of the insurance companies offering no medical exam life insurance coverage are more expensive than their counterparts. The reason is because the insurance company has to rely on the individual’s answers about their medical history, current conditions, and other health aspects. For the insurance carrier, their risks are much higher.

Many ‘no exam’ coverage companies offer insurance policies with low monthly premium rates, such as $1 for the first month and premiums based on the age of the applicant. Coverage ranges from $5,000 to $50,000 or higher. The more insurance coverage, the higher the premiums will be.

What to Look For When Shopping for Quotes

A person of a younger age without pre-existing medical conditions and a good health history can get life insurance policies without a medical exam relatively inexpensively. Anyone else may want to consider using this type of insurance as supplemental coverage to another life insurance policy. If you choose not to get a medical exam, you can find a policy to meet your needs but you will pay more out of pocket for the policy coverage.

Consumers need to be wary of signing up for any insurance company that will accept their application for coverage. It is important to compare all costs, coverage, and terms with each individual company and insurance plan before making a decision. Only you can determine what type of coverage you need and what rates you can afford to pay.

When you have narrowed down a few companies and are ready to request quotes, make sure you check up on each company you have selected. Check their standings with the Better Business Bureau and also ensure the company or agent is a licensed insurance provider.

You also need to make sure you are totally upfront and honest when answering questions if you want an accurate life insurance quote. Any fraudulent information or misleading data can result in the total cancellation of your coverage, making it potentially harder for you to get other insurance in the future.

It’s Up to You

The medical exam required by insurance carriers is relatively simple and can be done at your own home by a contractor of the insurance carrier. The exam will help to ensure the underwriter you are in good physical health. There will be questions to be answered about your medical history and a brief physical exam will be conducted at that time. After the exam is complete, the report will be sent to the insurance carrier to make a coverage determination.

If you are in good health, you may want to consider going through the required medical exam if rates are your primary concern. No medical exam life insurance coverage may cost you more in the long-run and may not provide the adequate coverage you desire.