Not a Gamble – Term Life Insurance That Pays a Benefit to the Insured For Living

What is ROP Return of Premium Insurance?

Return of Premium Insurance (ROP) is just as it sounds. The ROP is a rider attached to a basic term insurance policy that provides a living benefit to the insured. This means that should you outlive your policy term and keep it in force to the end of the level term period, you can receive all of your premiums back in a tax-free lump sum. The policy is similar to term in that it protects your family for a specified time period you select from 10 to 30 years. The ROP premiums are bit more costly than straight term in that the extra 30-40% you pay in premium is reinvested by the carrier and returned to the insured if they outlive the policy.

Why should you consider Return of Premium Insurance?

While insurance protection can be vital to protecting your family, many can find which type to purchase confusing. Let’s review the whole insurance picture for a moment: Term life insurance is the choice of many consumers because it fits the budget and simply protects young healthy expanding families during times of highest risk of loss should the income earner of the family die unexpectedly.

Traditional term provides a benefit for the length of the term period selected 10, 20, or 30 years after that the policy coverage ends. If the insured had passed on during the term of coverage the beneficiaries would have received a lump sum payout, but if the insured is still living at the end of the term or had canceled the policy early, the beneficiaries receive nothing. Unfortunately after 20-30 years you may be uninsurable for more term because of health deterioration or age and may need to seek out a whole life or permanent insurance policy to protect your spouse or assets from risk during the retirement years. This form of insurance contain an investment feature which builds cash value and may require higher premiums and make the policy simply unaffordable for some. Return of premium can provide a suitable solution if it fits comfortably within the budget because it provides for a benefit for both events: A death benefit and a living benefit!

What are some of the features of return of premium ROP insurance?

As we have already mentioned if you outlive the term you will receive all of your premiums back in a tax free lump sum and it is guaranteed. In addition should you need to borrow from these funds many carriers have loan provisions allowing you to borrow your own money at reasonable rates of interest and keep the coverage in place during the term period. Many consumers are concerned that they may cancel prior to the term ending and will lose the ROP feature they paid extra for, however carriers have already considered this as well and if you surrender the policy during the term you will receive back a prorated portion of the premium which are pre-calculated at policy inception. Another handy feature can help you keep your protection if you lost your job well into the policy term the ROP cash accumulation could be applied to provide for paid up reduced term period coverage, so if you had a 30 year term and in year 15 were injured or loss you job and were unable to pay premiums you may end up with a paid up policy for a remainder of 5 years.


Male 32 years old with the highest health rating of Preferred Plus, $500,000 of coverage on a 30 year return of premium insurance term.

Monthly premium $54.98 Annual $659.76 the return of premium after 30 years would be $19,792.80

The premium for the same insured with straight term would be $38.06 per month

*If you are older or have a few minor health conditions the policy premium may be considerably higher as the carrier grades your mortality risks.

For most the Return of Premium can be a good option that can protect the family’s assets and large liabilities like the home in the event of an unexpected death. Additionally the lump sum return of premium can be used to pay down a considerable portion of those very liabilities, imagine paying $30,000 down on your mortgage balance in the 20th year or investing the tax free lump sum into an interest bearing annuity to create a retirement income stream for later years.

What Influences Your Car Insurance Premiums?

It is a given fact that knowing the details is certainly advantageous for individuals who are entering into different types of transactions. This is also the case when it comes to car insurance. Since the amount of premiums significantly affect the cash flows of policyholders, identifying the factors that affect car insurance premiums is absolutely useful in decision making.

Car insurance premiums are affected by inherent characteristics that policyholders cannot totally adjust according to their preferences. This includes the age, gender and marital status of the policyholders. Insurance companies maintain varying premium differentials that are appropriate to these groups according to various studies that were conducted. As per the age factor, drivers who are younger than twenty five years old and above sixty years old are revealed to be more susceptible to vehicular accidents. As a result, insurance premium rates for individuals in these age groups are typically higher.

When it comes to gender, women are considered to be statistically careful drivers compared to men. This is the reason why female policyholders shell out less premium expense compared to the male ones. Individuals who are married also are given lower premium quotes as compared to single individuals.

There are also factors that are entirely controllable and can be the result of the actions and decisions of the policyholders. This includes the type of vehicle, driving style and record, credit rating, professional responsibilities, profession, mileage counts and car safety features.

Insurance companies tend to increase the premium rates for high-end automobiles that are categorized as high-performance, sports cars, rear-engine models and intermediate performance. It can be formulated that more expensive cars commands higher insurance premiums. This is due to the fact that these car types have more expensive spare parts and is more susceptible to theft.

Driving styles and record also play an important role in car insurance premiums. Insurance companies investigate and examine the driving profiles of their policyholders in order to correspond with the insurance premium offers. People who have traffic violations and accidents in their driving records tend to have higher premiums. Credit rating also has an impact to the amount of car insurance premiums. Insurance assumes that individuals who do not possess good credit rating are financially negligent and this can be manifested in their driving style as well.

The profession of the policyholder also has an effect in the insurance premium rate. Statistically, there has been an observed correlation between risk and occupation of policyholders. If the occupation requires long distance travel or travel in accident-prone locations, the premium rate charges are higher. Premium rates are cheaper for policyholders who work in the office or urban institutions.

Low annual miles driven by the policyholders also reduce the probability of being in a vehicular collision which in turn, results to lower premiums. Vehicles which are intended for business purposes also have lower insurance rates as compared to vehicles that are operated for commuting purposes.

Lastly, car features can also have influence in the rate of the insurance premiums. A vehicle which has safety features and theft prevention gadgets installed in it also cuts the insurance premiums. These features include airbags, anti-lock brakes, chassis quality, tracking devices and burglar alarms.

Return of Premium Critical Illness Insurance

The need for supplemental health insurance policies has never been greater than it is today in 2012. Over the past twenty years working Americans have seen the costs for their medical coverage skyrocket. Even in cases where the employer pays 100% of the employee-only premium for medical insurance, the cost for dependents has increased significantly. To combat these increases most working Americans have seen their financial exposure increase through higher deductibles and coinsurance as well as the elimination of co-payments. Today it is not unusual to see individual out-of-pocket exposure as high as $5000 or more and in many cases it is as much as $10,000.

While a potential out-of-pocket exposure of $5,000 may not appear to be financially devastating, the facts tell a very different story. According to a Cambridge Hospital / Harvard University 2007 study 62.1% of all bankruptcies were directly related to a medical event. That is up by 50% since the same study was done in 2001. What is striking is that 75% of these bankruptcies were individuals that were college educated and had medical insurance. And despite what many insurance agents and financial may think disability income would not have been much help. Very often the problem is the medical condition of a spouse or child that results in the primary breadwinner missing work. But this only explains why a critical illness policy may have value.

The Statistics about Critical Illnesses

In order to justify the sale of critical illness insurance most agents use these statistics:

  • 1 out of 2 people will be diagnosed with cancer
  • 5 million people will suffer a heart attack each year
  • Every 20 seconds someone has a heart attack

But these statistics belie a more important truth,most people will not be diagnosed with cancer than will. For people under 35 years of age the risk of cancer is 1out of 69. Consider this fact from the Heart Foundation: there are 8 million women living with heart disease but only 35,000 are under age 55.

Those statistics do not mean that an individual should not buy critical illness insurance, because they most definitely should since there is no way to know whether you are that 1 in 69 that will be diagnosed with cancer this year or that you are in the 35,000 women that will be diagnosed with heart disease. And that is why return of premium policies are so important!

ROP – A Great Buy

As I stated earlier, the position of most financial advisors is that the return of premium rider does not make good financial sense. I will tell you that they are dead wrong! Working Americans would be hard pressed to find a better use of their insurance dollars. It is true that the rider generally increases the base premium for any supplemental health policy by 40% to 50%. But that ignores the fact that is the individual does not get diagnosed with a qualifying medical condition he will receive a check for 100% of the premiums paid, less any claims. With one of my carriers that check is paid every twenty years and the insured still retains the policy at the initial premium. Here is an example from one insurance company:

A male non-smoker under age 39 can purchase a $10,000 Critical Illness policy for a low $76.80 annually. That same policy with return of premium would be $121.20, a difference of $44 annually. At the end of twenty years assuming no claims that individual would receive a check for $2424. If the insured had invested that $44 annually he would have had to have earned more than 10% on that money to generate the same $2424 he will receive. Since the average Working American is living paycheck to paycheck, return of premium insurance provides the best of all possible outcomes.

There is a huge need for critical illness insurance and even greater need to have a policy where the insured benefits financially regardless of outcome.

What is an Insurance Premium?

We know that we regularly pay the insurer. But, what exactly makes up an insurance premium?

Insurance could be called prospect care. Societies in the beginning learned that theft, fire, and other incidents can cause great losses of livelihood and property. They also realize that when someone dies, the people who depend on that person might be left without money to support themselves.

Knowing that they would return the favor if a similar event happened to you at some point in the future,the earliest form of insurance was simply to help other people. For instance, if there is a fire that burnt down your neighbor’s home, you would help them rebuild it. Community members who would not pitch in and help could not count on others to provide help to them.

It is possible, of course, that you may never need help. You have wasted your time, if that’s all you have. Likewise, you may think an insurance premium is wasted if you don’t ever have to file a claim.

Insurance companies make profits by collecting premiums and investing in unrelated things. Ascertaining the dollar figure to charge for insuring property or a person’s life is called underwriting, and involves evaluating risk. The higher the risk to the company, the more more they will charge for premiums. For instance, if you’ve gotten a lot of tickets or been in wrecks, your insurance premiums will cost you more for the future. A policy might be not even be written, if those in charge feel that the risk may be too large.

Recently, in Florida, there was an insurance crisis where people were making a lot of claims due to water, hurricane, and wind damages. Insurers have found it too risky to offer homeowner policy in some regions due to the increased potential for disasters. Customers across North Carolina pay higher premiums because of the frequent claims by residents of the Outer Banks, an area frequently damaged by hurricanes.

Thus, it’s not always an individual’s or property’s history that makes an insurer charge larger premiums, but the rate of claims across a community or region. One good example is the practice of charging more to insure younger drivers because, statistically, they have more accidents and present a greater risk.

The actual reason we purchase various insurance premiums is to have satisfaction of mind. Gathering information for insurance quotes or comparing premiums is easily obtained online.

Top 7 Tips to Save on Auto Insurance

Now that the economic times are so tough, many people are in search of ways of cutting their expenditure. Most financial advisers recommend their clients to live within their means. However, when it comes to saving on auto insurance, many people find themselves absolutely clueless how save money and still get the right auto insurance policy. For those who have no idea how to save on auto insurance, they should consider the following top 7 tips:

1. Taking precautions

Taking precautions basically means people should do certain things that show the insurer that they are a no-risk client. Normally, the amount of risk posed by a potential insure to the insurer is reflected by their premiums. Insurance companies charge low premiums when they determine that a user will not main any or minimal claims in the future. Two ideal ways of taking precautions effectively include going for defensive driving lessons and getting a separate set of winter tires.

2. Purchasing in bulk

For those who have more than a single car, and they also need to insure their house or other property; they should get all these insurance policies from a single provider. Choosing lump-sum payments is another form of bulk buying. When settling on an insurer, thinking about how much payment will have to be made cumulatively is important. The longer the payment period, the more payment likely has to be made. So paying in bulk for insurances, including auto insurance, is a good way to save money too.

3. Cleaning up record

Those who want to save themselves from the exorbitant charges of their auto insurer, they should make sure that they got their end covered and protect themselves to avoid paying too much. Their insurability and their record will be influenced by certain options. The first thing that breaks or makes their bargain plea is their driving record. The driving record should be kept clean, without accidents and tickets. People can save up to at least 5% in auto insurance premium costs by keeping a clean license.

4. Lowering liability

Those who are not able to save on auto insurance in any other way; they should choose to shed off the unnecessary. There are several ways of cutting back. One of them is lowering the value of the car. The cost of repair is directly proportional to the value of the car. Avoiding extras on the car is another way of cutting back. When a claim is made, insurance companies try to scale it down as much as they can. Extras on the car are ignored this way, so wasting money for unnecessary claims should be avoided.

5. Using temporary covers

Using hire cars or rentals instead of the car that is insured is another way of saving on auto insurance. Another way of saving on auto insurance is to purchase a cover for 27 days.

6. Doing homework

Reviewing the reputation of the insurer is also very important when it comes to saving on auto insurance. Moreover, quotes should be compared and the lowest of all the quotes should be selected. Penalties can be avoided by sticking to a single insurer for a minimal period of time. Jumping to the next auto insurance becomes available is also a way of enjoying cheap auto insurance. However, it is not advisable to move from one insurance company to the other during the mid-policy term. By actually finish the term, many savings can also be availed. People should spend some time shopping around.

7. Evaluating the deductibles

When a claim is made, the deductible are what is paid up front. Some things should be considered before varying this amount. Knowing when to raise the deductible is important. Deductibles should definitely be raised by careful drivers if it causes the premiums to decrease significantly. Knowing when to lower the deductible is also important. If a claim is expected to be made in a year, how much premiums will be saved that year should be considered first. If it is less than what will be added to the deductible, then the deductible should be lowered.

Saving on auto insurance is not an easy thing to do, but following these top 7 unique tips will allow people to save on auto insurance effectively.

Payment Premium Insurance (PPI) To Be Axed by the Big Banks

The Financial services Authority (FSA) has fined banks and lenders for the mis-selling of Payment Premium Insurance (PPI) and for failing to treat their customers fairly. Payment Premium Insurance cover (PPI) is sold to borrowers to cover them against the risk that they may not be able to pay their monthly payment on a credit card balance, mortgage or personal loan; due top ill health, accident or redundancy. PPI has in the past been a major source of income for banks, finance companies and retailers .The commissions paid received would have been from 25% to 75% of the total payment for the protection policy taken out. This is outrageous!

Todate the following banks, finance companies and retailers have been fined:

o Capital One was fined £175,000
o HFC Bank, (trading as Beneficial Finance & Household Bank) was fined £1,085,000
o Alliance& Leicester was fined £7,000,000 (million)
o Liverpool Victoria was fined £840,000
o Egg Bank was fined £721,000 recently
o GE Capital Bank was fined £610,000
o was fined £455,000
o and other retailers.

A whole reclaim industry has grown on the back of Payment Premium Insurance being mis-sold and anyone with a personal loan, car finance or a mortgage should check if they have a single premium policy as they could claim their money back.. Some companies have been ruthless in their sales techniques whilst others have just mislead customers into believing that they would not get their loan or finance agreed if they did not take out PPI protection.

Finance companies and Banks have been guilty of selling big chunky sized Payment Premium Insurance policies; usually around £3,000 to £4500 which they have then added to the mortgage, finance or personal loan agreement. The payment for the PPI cover would then be added to the initial loan amount. This would increase the amount borrowed by a few thousand pounds and finally Interest would then be charged on the entire life of the loan. Outrageous!

The Competition Commission would like banks, finance companies and retailers to stop selling PPI policies for 14 days after the finance was arranged. In early October last year the Financial services Authority (FSA) said it would be stepping up its action over the mis-selling of Payment Premium Insurance (PPI) in the future. It is little wonder that Royal Bank of Scotland, Nat West Bank, Barclay, Lloyd Banking Group, Alliance & Leicester, and the Co-Operative Bank have announced that they intend to stop selling single block Payment Premium Insurance (PPI) with personal loans by the end of January. The FSA now hopes that other firms will follow the lead of the Big Banks and cease selling Payment Premium Insurance (PPI).

In view of this announcement by the banks to withdraw PPI you should consider Mortgage Payment Protection Insurance (MPPI). Protecting our home is a basic need during a recession especially one with so many uncertainties. If we are made redundant we still need money to pay our mortgage and bills for 13 weeks or three months under the new initiatives recently announced by the government before we qualify for their help and assistance.

Almost all of us harbour fears of being made redundant; we are concerned about how we would pay these bills and commitments and we fear repossession of our homes. Mortgage Payment Protection Insurance can help to protect our mortgage payments, personal life insurance and your building and contents insurance for up to 24 months if you cannot work due to unemployment or suffer a disability. We can have these policies set so that they pay out after thirty days back to day one. The Council of Mortgage Lenders is now encouraging all mortgage borrowers to consider the advantages of taking out independent mortgage payment protection insurance (MPPI).

Answering Some Common Questions About Single Premium Life Insurance

What is single premium life insurance? This form of life insurance requires a single large upfront payment. That single lump payment funds the investment portion of this whole life policy. The value of the policy will increase as the value of the investments behind it increase. Some policies offer a fixed rate return while others offer other investment options. The fixed rate of return is usually lower than the final value of policies using the investment options. But, it offers a steady rate of return with a guaranteed minimum face value on the policy.

How common is this type of insurance? Actually, it is very uncommon. It is one of the rarest forms of insurance issued in the insurance market. One reason for this is because many people do not know of its existence. Insurance professionals often do not offer it to potential insurance customers. This is mainly due to the fact that it requires a large upfront payment. If someone has that type of money, the customer may not have interest in an investment with a low rate of return. However, it offers a steady investment that some may find appealing.

What is a major benefit of this type of insurance? Single premium insurance is actually a good tax shelter. It offers a tax deferred investment where money can build up. There are no penalties related to the money when it pays upon the demise of the named insured. The only time taxes become an issue is if the policyholder makes a loan or partial withdrawal on the policy. Then the IRS penalties will become active. For those that want to provide a set lump sum to beneficiaries after death, this is an excellent option. It provides a tax-deferred method of passing on an inheritance.

How can single premium insurance help the policyholder? Even with the tax penalties associated with loans and withdrawals, there are ways to get money from this investment without penalties. Some policies allow withdrawals to pay for long-term care insurance. Others offer withdrawals related to caring for the named insured if that person is diagnosed with a terminal illness expected to take life within one year. The amount of money paid upon the death of the named insured will vary depending on the age of that person and the amount invested at the beginning of the policy. Speak with an insurance professional if this interests you.

What are Typical Life Insurance Premiums?

Life insurance is all about risk management. When setting the typical life insurance premiums, insurance companies take important precautions, to ensure that their policyholders do not die prematurely. Therefore, this is the reason why life insurance premiums cost as much as they do.

To account for health risks such as diabetes, blood pressure and other diseases, insurers allocate the status (using the title such as standard or preferred) depending on the health, gender and age of applicants. This determines the typical life insurance premiums that the policyholder has to pay for a particular form of life coverage.

Now, to determine the status and health and to decide the premium amount, the insurer will verify the medical history of the family, the lifestyle of individual and other such factors. Most likely, it will require the person to undergo a physical examination. Hence, it is important for the policyholders to remain truthful, while they fill their health questionnaire.

If a policyholder furnishes wrong information, an insurance company not only stops the payments of typical life insurance premiums, but also nullifies the entire policy. And you wouldn’t want that.

For instance, if the policyholder mentions, that he is a non-smoker, but ends up dying with lung cancer, there are high chances that the insurer may deny any health benefits to the beneficiaries of the policy.

However, certain risk factors are beyond the control of a person. This includes age or gender. Since women have a higher life expectancy as compared to men, they have to pay lower premiums on their insurance.

Conversely, since men have shorter life spans, they much higher premiums for their coverage. Even the age of a person, has its effect on the insurance premium. For instance, young people have to pay lower premiums for a longer period, as compared older people especially men.

More About Typical Life Insurance Premiums:

Each insurer has its own typical life premiums that it charges. In a case, where a person suffers from a risk factor, it is better, to alert the agent about the problem when it comes to buying the policy itself.

Risk factors are controllable and the policyholder can seek a doctor’s help for that purpose. Hence, it is important to eliminate the risk factors. For example, stop smoking, control alcohol intake, reducing body weight, and maintain healthy lifestyle, etc. are all good ideas.

Insurance agents know that insurance companies, charge higher premium amounts to those people, who suffer from such risk factors. Hence, such agents may suggest some other insurance companies to an individual, which grants low premium policies in spite of these risk factors. In that case, a person needs to verify the credibility of that company before making any decision.

Steps for Lower Life Insurance Premiums:

Now, after acquiring the life insurance policy, if people improve their health substantially, it is important to alert the insurance firms, to lower the premium amount. Insurance agencies then conduct another complete medical check up of the individual and lower the premium amount.

Thus, people need to consider all these factors, if they want to reduce the amount of typical life insurance premiums. You can see how much you might pay with a free life insurance quote which you can get by using the following resources.

40+ Home Insurance Savings Tips

Your dwelling is often your most precious asset that you need to protect. We created a list of all savings opportunities associated with Home insurance. This list is the most complete perspective on home insurance savings tips. Numerous insurance brokers contributed to this list. So, let’s start!

1. Change your content coverage: Renting a Condo? You can often lower your content coverage. No need to insure your belongings to up to $250,000 if you only have a laptop and some IKEA furniture!

2. Renovations: Renovating your house can result in lower home insurance premiums, as home insurance premiums for older, poorly maintained dwellings are usually higher. Additionally, renovating only parts of your dwelling (e.g. the roof) can lead to insurance savings.

3. Pool: Adding a swimming pool to your house will likely lead to an increase in your insurance rates since your liability ( e.g. the risk of someone drowning) and the value of your house have increased.

4. Pipes: Insurers prefer copper or plastic plumbing – maybe it is a good idea to upgrade your galvanized / lead pipes during your next renovation cycle.

5. Shop around: Search, Compare, and switch insurance companies. There are many insurance providers and their price offerings for the same policies can be very different, therefore use multiple online tools and talk to several brokers since each will cover a limited number of insurance companies.

6. Wiring: Some wiring types are more expensive or cheaper than others to insure. Make sure you have approved wiring types, and by all means avoid aluminum wirings which can be really expensive to insure. Not all insurers will cover houses with aluminum wirings, and those that would, will require a full electrical inspection of the house.

7. Home Insurance deductibles: Like auto insurance, you can also choose higher home insurance deductibles to reduce your insurance premiums.

8. Bundle: Do you need Home and Auto Insurance? Most companies will offer you a discount if you bundle them together.

9. New Home: Check if insurer has a new home discount, some insurers will have them.

10. Claims-free discount: Some companies recognize the fact that you have not submitted any claims and reward it with a claim-free discount.

11. Mortgage-free home: When you complete paying down your house in full, some insurers will reward you with lower premiums.

12. Professional Membership: Are you a member of a professional organization (e.g. Certified Management Accountants of Canada or The Air Canada Pilots Association)? Then some insurance companies offer you a discount.

13. Seniors: Many companies offer special pricing to seniors.

14. Annual vs. monthly payments: In comparison to monthly payments, annual payments save insurers administrative costs (e.g. sending bills) and therefore they reward you lower premiums.

15. Annual review: Review your policies and coverage every year, since new discounts could apply to your new life situation if it has changed.

16. Alumni: Graduates from certain Canadian universities ( e.g University of Toronto, McGill University) might be eligible for a discount at certain Insurance providers.

17. Employee / Union members: Some companies offer discounts to union members ( e.g. IBM Canada or Research in Motion)

18. Mortgage insurance: Getting mortgage insurance when you have enough coverage in Life insurance is not always necessary: mortgage insurance is another name for a Life/Critical Illness / Disability insurance associated with your home only but you pay extra for a convenience of getting insurance directly when lending the money. For example a Term Life policy large enough to pay off your home is usually cheaper.

19. Drop earthquake protection: In many regions, earthquakes are not likely – you could decide not to take earthquake coverage which could lower your premiums. For example, in BC earthquake coverage can account for as much as one-third of a policy’s premium.

20. Wood stove: Choosing to use a wood stove means higher premiums – Insurance companies often decide to inspect the houses with such installations before insuring them. A decision to get rid of it means a lower risk and thus lower insurance premiums.

21. Heating: Insurers like forced-air gas furnaces or electric heat installations. If you have an oil-heated home, you might be paying more than your peers who have alternative heating sources.

22. Bicycle: You are buying a new bicycle and thinking about getting extra protection in case it is stolen when you leave it on the street e.g. when doing your groceries? Your Home insurance might be covering it already.

23. Stop smoking: Some insurers increase their premiums for the homes with smokers as there is an increased risk of fire.

24. Clean claim history: Keep a clean claim record without placing small claims, sometimes it makes sense to simply repair a small damage rather than claim it: you should consider both aspects: your deductibles and potential raise in premiums.

25. Rebuilding vs. market costs: Consider your rebuilding costs when choosing an insurance coverage, not the market price of your house (market price can be significantly higher than real rebuilding costs).

26. Welcome discount: Some insurers offer a so called welcome discount.

27. Avoid living in dangerous locations: Nature effects some locations more than others: avoid flood-, or earthquake-endangered areas when choosing a house.

28. Neighbourhood: Moving to a more secure neighbourhood with lower criminal rate will often considered in your insurance premiums.

29. Centrally-connected alarm: Installing an alarm connected to a central monitoring system will be recognized by some insurers in premiums.

30. Monitoring: Having your residence / apartment / condo monitored 24 hour can mean an insurance discount. e.g. via a security guard.

31. Hydrants and fire-station: Proximity to a water hydrant and/or fire-station can decrease your premiums as well.

32. Loyalty: Staying with one insurer longer can sometimes result in a long-term policy holder discount.

33. Water damages: Avoid buying a house which may have water damage or has a history of water damage; a check with the insurance company can help to find it out before you buy the house.

34. Decrease liability risk: Use meaningful ways to reduce your liability risk (e.g. fencing off a pool) and it can result in your liability insurance premiums going down.

35. Direct insurers: Have you always dealt with insurance brokers / agents? Getting a policy from a direct insurer (i.e. insurers working via call-center or online) often can be cheaper (but not always) since they do not pay an agent/broker commission for each policy sold.

36. Plumbing insulation: Insulating your pipes will prevent them from freezing in winter and reduce or even avoid insurance claims.

37. Dependent students: Dependent students living in their own apartment can be covered by their parents’ home insurance policy at no additional charge.

38. Retirees: Those who are retired can often get an additional discount – since they spend more time at home than somebody who works during the day and thus can prevent accidents like a fire much easier.

39. Leverage inflation: Many insurers increase your dwelling limit every year by considering the inflation of the house rebuilding costs. Make sure this adjustment is in line with reality and that you are not overpaying.

40. Credit score: Most companies use your credit score when calculating home insurance premiums. Having a good credit score can help you to get lower insurance rates.

41. Stability of residence: Some insurers may offer a stability of residence discount if you have lived at the same dwelling for a certain number of years.

How To Find Premium Insurance Leads And Utilize Them For Your Business

Auto insurance leads guide brokers and others to the leads they want based on criteria such as geographic location, income or number vehicles a potential client owns.  A business can make its leads as narrow or as wide as it chooses, whichever way it sees fit to maximize its return on investment.  In many cases, auto insurance leads can be purchased exclusively, can be bid on with others for a discount.

Many services that sell auto insurance leads offer replacement leads for bad leads at no extra cost.  A reputable service will also have no hidden costs when leads are purchased.  Basic information in each lead should include an area code, birth date, city, DUI information, first and last names, gender, and the number of vehicles a prospect owns, state, zip code and the age of the lead.  Other useful information includes best time to call or best method of contact, claims submitted within a certain amount of years, current amount paid for a policy, driver license number, email address, number of drivers in the household, number of years the policy holder has been driving, revoked or suspended license, street address and other information about the vehicle itself.

In most cases, leads are consumer initiated meaning the potential client has taken proactive measures to receive insurance information.  This helps to close a deal when the client is motivated and ready to buy.  Many times, these leads are compiled through consumer response web forms or other means that require a consumer to request information.  Since many people are perusing the Internet to get information about insurance, they are more likely to be willing to fill out forms and request information.  Once that information is gathered, it must be verified to be sure the name, email address, phone number(s) and street address are valid.

Many brokers and businesses are turning to these leads to get a jump during these tough economic times.  They need to maximize their revenue with cost effective marketing campaigns to niche audiences that are most likely to purchase their products and services.  The right leads can help in this quest.

Financial cost of obtaining an insurance