Insurance companies are not regulated by the federal government, but rather by the states, and in Wilson’s opinion the states do not have the expertise, that a federal regulator would, in recognizing and dealing with possible future risks to the financial markets.

It is most probably reassuring to the American public to have the CEO of one of the county’s major insurance companies providing an insight into a problem that needs fixing, so as to prevent a repeat of mistakes that lead up to our current crisis.

The article was originally published in April and it created plenty of criticism, as one can read in this article in the Chicago Tribune.

Shopping Online and Comparing Multiple Quotes

The amount you pay for term life protection depends on the amount and term-length of your policy, your health and age, and the insurance company you select. To find the best price though, make sure to shop and compare quotes from multiple companies. As you will learn, the cost of the same policy can vary by hundreds of dollars among different insurance companies. Just as your needs are always changing, so are term life insurance rates.

Selecting the Appropriate Length of Coverage

Everyone has different needs, therefore, no one size fits all when it comes to term life insurance. While it may make sense for people in their 30s and 40s to secure a 20-year term length, a 10-year term might be more appropriate for someone nearing retirement. Individuals who have 30-year mortgages for example, might consider a 30-year term life policy to ensure that the home is protected throughout the life of the loan.

Your Rates Increase at Your “Half” Birthday

While some companies raise their prices based on your actual age, most companies increase the price of their policies six months before your birthday. It’s a term called “Age Nearest” in the industry, and that half-year price increase could really add up over a 20-year term policy.

Determining the Right Amount of Coverage

In shopping for term life insurance, many agents may try to sell you more coverage than you need. Understand that the purpose of life insurance is to replace financial loss, and what most people should be looking for is “income replacement” for their beneficiaries. Financial planners recommend a policy amount at least equal to 6-10 times your annual gross income.

Checking for Price Breaks: Paying Less for More

Insurance companies are known to offer “price breaks” at certain coverage amounts (e.g., $500,000 vs. $750,000). Many people can actually pay less money for more coverage. Check how little your prices increase when you increase coverage to $250,000, $500,000, or $1,000,000. After you get quotes, an InsWeb advisor can identify such opportunities.

Buying When You’re Young

While your financial needs may be lower at a younger age, the rates are also substantially cheaper when you’re young. The best advice is to lock in as much protection at a young age while your health and prices are still good to avoid paying substantially more when a shorter-term policy expires.

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Compare Homeowners Insurance Quotes

Homeowners insurance rates can vary by hundreds of dollars from company to company, therefore, homeowners should shop for insurance the same way they would shop for any other product. Homeowners should compare prices, policy coverage and conditions, and even consumer complaint reports.

Look for Multi-Policy Insurance

Most insurance companies that sell insurance products other than homeowners insurance will offer consumers discounts for buying more than one product from them. For example, if your auto insurance company also sells homeowners insurance, you might get a discount of up to 15% off your premium for buying both products.

Only Buy the Homeowners Coverage You Need

Homeowners insurance policy limits should be revisited every year to reevaluate any major purchases and additions. On the other hand, many of the possessions that homeowners insure depreciate significantly over the course of a year. Homeowners should update their home inventory, and reevaluate policy limits for possible savings.

Further, homeowners shouldn’t spend money for coverage they don’t need. For example, if you don’t live in a flood-prone area, you may not need costly flood insurance.

Consider Raising Your Deductible

Increasing your deductible by just a few hundred dollars can make a significant difference to your premium. Most deductibles start at $250, therefore, if you raise your deductible from that to $1,000, you ay to save nearly 25% on your premium.

Look For Discounts That May Apply to You

There are a myriad of homeowners discounts that go unrecognized by many consumers. For example, even though they seem ordinary, you may be able get a lower premium if your home has safety features such as dead-bolt locks, smoke detectors, an alarm system, storm shutters or fire retardant roofing material.

Other common homeowners insurance discounts include:

A new home’s electrical, heating and plumbing systems and overall structure are likely to be in better shape than those of an older home, therefore new homes are usually charged lower rates than older homes in the same price range.

Seniors often enjoy discounts on their homeowners insurance if they are over 55 and retired, or if they’ve been a long-term customer.

Strong home security in the form of security systems, alarms, gated communities, double locks on both doors, etc. often afford you lower rates.

Non-smokers usually get reduced rates on their homeowners insurance policy. If you were a smoker when you bought your house, but have subsequently quit, many insurers may lower your rates. Smoking accounts for over 20,000 residential fires in the U.S. a year, so insurers often charge lower premiums to smoke-free households.

Insure Your House, Not the Land Under It

Consumers often overpay for homeowners insurance by including the value of the land that their home resides. Remember that you only need to insure the home itself and your possessions, not the land. Should something unfortunate occur, the land will most likely remain. If you do not subtract the value of the land when deciding how much homeowners insurance to buy, you will most likely pay more than you should.

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