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Welcome Readers from the San Antonio Express-News!

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Welcome to those visiting from Claudia Zapata’s article in the San Antonio Express-News, Dieters finding willpower on Web.

As Claudia mentioned, I started this blog more than a year before Blogging Away Fat. This blog has kept me focused and motivated to pay off our debt and I hoped that blogging about my weight would help me do the same. So far, so good…and I’ve lost 13.5 lbs.

I do find many similarities between losing debt and losing weight. While different goals, they both require that you have motivation and a committment to changing your lifestyle. Tackling both is not easy, but blogging about it is keeping me focused.

Here’s a few tidbits about Blogging Away Debt:

1.) I post monthly where my money went, and share what we are doing to try to keep our spending down.

2.) I post monthly how much we make. We currently make around $36,000-45,000/year (depends on if my husband has work available), but I am always trying to bring in more income.

3.) I post almost every day and usually it is personal finance related.

4.) You can bookmark this site to keep updated, or if you have a feed reader you can Subcribe to my Full Feed. If you have an email address, you can also Subscribe via Email. Every day that I post you will receive one email with the posts that I wrote for that day.

5.) I love comments and I love the interaction with readers. Some of the best information on here is when I post something and then my readers give suggestions or tell about their own personal life. That’s the beauty of blogs!

As for where to start, here’s a recap of 2006:

A Reflective Look Back at 2006 – Goodbye to $13,000 of our Debt

And here’s something I wrote that highlights my frugal posts of 2006:

My Top Frugal Posts of 2006

I’d like to give a quick shout-out to the other money and health bloggers mentioned in the article:

Lazy Man:
Lazy Man and Health
Lazy Man and Money

NCN:
No Calories Needed
No Credit Needed Blog

Thank you for stopping by, and feel free to stick around for a while 🙂

The Result of My Life Insurance Shopping

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Back in February, I mentioned that I was shopping around for life insurance. I didn’t have any at all, and my husband has a $25,000 whole life policy. I wanted to get at least $100,000 term life insurance for the both of us and cancel my husband’s policy and cash it out.

How did I come up with $100,000?

The main thing I want taken care of is all of our debt. I want the surviving spouse to be able to live debt-free. I looked at our total debt and that comes to $85,776 (note: that amount includes the student loans for my husband and I although some of it will be forgiven because we each have our own loan).

Next I searched for the average cost of a funeral. I couldn’t seem to find any current information, but I did find the average cost for 2004: $6,500. I don’t believe that our costs would be that high, because my husband and I favor cremation and we don’t need a viewing or a fancy funeral.

Given that information, and the goodies that I learned from this MSN article, How to Plan an $800 Funeral, I am allocating a bit on the high side and using $2,500 for burial, etc.

The other cost will be any medical bills for the deceased spouse. Our health insurance policy has a maximum out-of-pocket yearly cost of $2,500. So, I want to make sure that is covered.

So far we have

Debt: $85,776
Funeral: $2,500
Health Insurance: $2,500

That brings us to almost $91,000. That will leave around $9,000 for other things. It really does go fast! I know it isn’t enough and I do want to get more in the near future. But I decided on that amount for the next year or so.

Now that I knew how much I wanted to purchase, it was time to find an insurance company. It was easy to find some companies to work with after cruising the personal finance blog-o-sphere and I also received a very nice email from a reader with some suggestions.

Here are the sites I checked out and went through the process to get a quote:

Intelliquote.com (aka Matrix Direct)
Reliaquote.com
Insure.com

The first company I received a call from (be prepared for the telephone calls!) was the one behind Insure.com. They were nice and pleasant and they took more information to schedule a time for someone to come out and do the health portion of obtaining life insurance. The next to call was Matrix Direct from Intelliquote.com. The woman there was very nice and very helpful so I decided to go ahead with the application for that one as well.

According to Matrix Direct, they can take the results of the health information for the other company for their underwriting. The fewer needle picks, the better.

All was well and it was going to be about three weeks until a portamedic could come to our house to draw blood, etc. During that time, I received quite a few calls from Matrix Direct. I heard from the one woman, who again was very nice. She even told me that if I could lose some weight before my exam, my rate would go down drastically.

Right there, I started rethinking buying term life insurance with a health exam. Maybe we should wait a little bit and work on our health to get lower rates.

Then, the calls started getting confusing. Matrix Direct would call (it was a different woman) and tell me what I needed to do with my application. Because Matrix Direct was the second company I applied with, I would have to mail my application in separately. But wait, now the woman is saying I had to give it to the portamedic.

The one thing about me is that if I start feeling a bad vibe from something, I tend to stop what I’m doing. In this case, I stopped EVERYTHING. I called the two companies and cancelled the applications. I was getting too confused and in the back of my mind I was thinking about how high the rates were for me.

Not too long after that, I miscarried and I found out how poor my health really was. I weighed more than I thought and my blood pressure is pretty high. I don’t even know if they would have insured me, and I’m not sure if a rejection by one company will hurt me in the long run. After all, there is that question about if you have been denied coverage by another life insurance company.

What was next? Trying out the no exam companies for some coverage.

I tried quite a few companies and each one said, “Sorry…we do not have a plan for you.” Since I have in my medical history that I was diagnosed with asthma and that I smoke, no one wanted to touch me. Until I came across a very familiar company that sells baby food and life insurance.

I’ve known about Gerber offering insurance on children, but after checking out their site I found out that they offer term life insurance for adults. I entered in the information, and instead of the automatic, “Sorry…” I was told that I would receive some information in the mail.

Sure enough, I received a questionaire about asthma. I filled it out and returned it and waited. They accepted my application and provided a quote. $35/month or you could receive discounts for paying every three months, six months or a year. If I paid yearly, it would only be $29/month. The same price would apply if I chose to have automatic monthly payments from my checking account or credit card.

My quote from the other companies were both over $30/month for the same amount of coverage. But how well does Gerber Life Insurance stack up according to Ambest.com (the ones who rate life insurance companies). It turns out that they rate them excellent (A).

Well, that seals it. I sent out my check and now I am covered by Gerber Life Insurance Company. Sounds sort of weird, but for a filler life insurance company it will do just fine. Next step is to get my husband covered but we will be waiting a little bit for that so we can stagger our payments a little (I’m paying in three month intervals at the moment and that comes out to a little over $32/month).

My method is a little unconventional, but given my poor health at the moment and my desire to change that around drastically within the next year, I didn’t want to take the chance of getting denied for life insurance that was exam dependant. I ended up finding the same coverage for almost the same price. Once my health improves, we will go ahead and get more coverage (the limit for Gerber is $100,000) through a different company.

I feel very good about my decision although I did not enjoy shopping for life insurance and dealing my own mortality. But you really do have to think about it and at least do something to help those that you would leave behind if the unthinkable does happen. I kept thinking that to myself the whole time to help motivate me to get through this.

We are one more step closer to getting our financial house in order. Yay!