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How Midlife Affects Your Insurance Needs…Are You Covered?

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You’ve no doubt heard of a midlife crisis: the time in life where you realize that you aren’t going to live forever. As a chance to take stock of the plans you had in your youth and square them up with where you stand now, midlife can be a time of great strife for some people who haven’t achieved their goals.

The good news is that by definition “midlife” means that you are only halfway through. That means you have just as much time left to change your situation as you had getting into it. That also means that there is still plenty of time to turn your financial ship around. If finances are an area where you have not lived up to your plans, dreams, and goals, now is the time to take the bull by the horns.

One critical way to tackle your midlife financial goals is by doing an insurance audit to make sure that you are not only managing your union bank credit card rates and wealth but also that you are protecting your assets along with growing them. Reviewing your insurance plans to ensure that you are fully protected and safe is a good place to start gaining financial control.

The insurance audit should cover all of those things that you use insurance to protect:

Health Insurance

It is not uncommon to develop chronic conditions in your 50s and 60s, which is why it is so important to choose your healthcare plan well. Make sure that you have the proper out-of-pocket caps and deductibles to fit your overall health needs. Having a small deductible is nice, but you also want to ensure that if things go terribly wrong, you have reasonable out-of-pocket costs.

Your risk for serious health conditions increases as your age does, so taking a good look at the structure of your health plan can help you to cut costs and ensure that you are getting the right coverage for any prescription, rehabilitation, or therapy needs.

Midlife means that you have to take a better overall look at your health needs and anticipate what they might be going forward. It may also be a time when you will have to make decisions about the transition between your health insurance and Medicare. Don’t make the assumption that things will be covered. If you need to purchase supplemental insurance, make sure you know exactly what will and will not be covered before the transition occurs.

Life Insurance

When you have young children, a house, and other dependents, it’s a good idea to have a hefty life insurance policy. But it isn’t inexpensive. As you get older, the price of life insurance will continue to increase unless you have a set policy. If you are paying a lot for health insurance and you aren’t supporting anyone but yourself, it really doesn’t make any sense to overpay. Unless you have someone depending on you, reevaluate your life insurance needs.

Disability Insurance

If something should happen to your income, then having disability insurance is a must. The average policy will cover about 60 percent of the income you are earning. Short-term policies will cover your costs for up to two years post-disability. Long-term policies will typically cover you until you turn 65 and you can start to collect Social Security. You can reduce your premium by shortening your benefit period if you are closer to 65.

Auto Insurance

If it has been a while since you compared rates for your car insurance, it is definitely something to investigate. Most insurance carriers consider older individuals lower-risk and will reduce premiums. Also, things like your credit score can reduce your auto insurance payments. It is worth it to call around and talk to several insurance companies to ensure that you are getting all the discounts you can. Go the extra mile to phone the carriers directly to get the discounts you deserve.

Midlife can be a difficult time emotionally for people, but it doesn’t have to be one, financially. Making sure to initiate sound changes to maximize your insurance coverage by minimizing the costs is the best way to protect your assets while still growing them.


5 States with Affordable Homeowners Insurance

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It’s common to find people relocating from one part of the country to the other these days. Many people do it as they change jobs or as a result of personal or family needs. If you’re planning to relocate, there are various factors you ought to consider first before deciding on your new place of residence.

Top on the list of factors that many people consider when moving is real estate value. What many prospective homeowners don’t stop to think about is the cost of homeowners insurance. The cost of homeowners insurance adds up to the total cost of maintaining your home, so it’s in your best interest to make sure the area you’re moving to doesn’t have any bizarre homeowners association requirements pertaining to homeowners insurance and the like.

There’s always the option of comparing homeowners insurance quotes online to land the best deals in insurance premium rates. The actual cost of your insurance premium will depend on a number of factors including deductibles, the coverage you choose and the cost of the property you wish to insure. The location also plays an important role in the cost of insurance.

The National Association of Insurance Commissioners determined the average cost of homeowners insurance across the U.S. to have been $1,086 in 2013. This was a six percent increase from the average rate in 2012. According to Investopedia, the cost of homeowners insurance claims has been rising since 1997. As a result, insurance rates have risen by more than 50 percent in 10 years. If you want to control the cost of your insurance premiums, consider the location you’re relocating to carefully.

The following are five states with the lowest rates for homeowners insurance premiums.

Idaho ($533)

Idaho tops the list as the least expensive state for homeowners insurance with insurance premiums averaging $533 annually. This is slightly over half the national average. The state is popular amongst prospective home buyers and has experienced significant appreciation in home prices over the years. With low burglary rates of 12.7 percent, the state is considered quite safe.

Oregon ($558)

Oregon came in a close second with an average rate of $558. The average burglary rate in the state is also quite low. However, the average price per square foot for houses in the state is higher than that of Idaho, causing insurance companies to charge higher premiums.

Utah ($574)

Utah is one of the most affordable places to purchase a home in the U.S. It is also one of the most affordable states to live in. Low crime rates and high employment rates all contribute to lower insurance premiums offered in this state.

Washington ($639)

It may seem surprising to many people to hear that Washington ranks amongst the cheapest states for homeowners insurance. One would expect the high price per square foot of homes as well as the higher crime rates to increase the insurance premium rates. However, high competition amongst insurance companies also plays a role in the cost of insurance in this state.

Wisconsin ($655)

This state comes in fifth with an average insurance rate of $655. This may be attributed to low burglary rates as well as low-price per square foot for homes in the region.

Take Control of Your Expenses

You can easily control the cost of your homeowner’s insurance premiums by deciding to relocate to an area with a low average rate. However, if you don’t have control over where you relocate to, you may want to consider the following:

  • Increasing security of your home to lower insurance premiums. Invest in burglar and other security systems to keep your home safe.
  • Increase your deductible to lower your premiums. This will, however, result in a greater out-of-pocket expense when you make a claim.
  • Avoid filing claims. The more claims you file, the higher your insurance premiums.

There are various insurance providers in the market. Always compare insurance quotes from different insurance providers to ensure that you get the best deal.


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