Understanding Term Life Insurance Quotes – How Much Life Insurance Do I Need?

One of the most common customer questions is, “How much life insurance  do I need?” The answer depends on your individual situation.

There are numerous reasons to consider the purchase of life insurance. These may include to replace lost income, to pay off a mortgage, or to pay the high cost of a funeral and other final expenses – which today can exceed $10,000. Yet, when considering life insurance coverage, many people are unsure of what type of policy to buy, as well as how much in proceeds to purchase.

What Type of Life Insurance Should You Consider?

In many cases – especially for those who are young and in good health – a term quote typically considered. There are several reasons for this. First, term is usually the most affordable form of life insurance coverage on the market. This is because term life includes only pure death benefit protection – without any type of cash value or investment component.

What most people do not know is that term policies can also be good for people in poor health and you could find a no medical exam life insurance policy that will be easier for you to qualify for, or those looking to purchase a high risk or smokers life insurance policy.

With term insurance coverage, policies are purchased for certain set time limits, or “terms.” For example, policies typically have terms of 10 years, 15 years, 20 years, or 30 years. Once a term policy has expired, the insured will typically have to re-qualify for coverage if he or she wants to renew their coverage. This re-qualification will be based on the insured’s then-current age and health condition. Because of this, the premium that is charged on the new policy will typically be higher.

 

Term life insurance can be considered a good type of coverage for those who are covering “temporary” needs. For example, an individual may want to ensure that his or her 30-year home mortgage will be paid off for their survivors in the event of their death. Therefore, they could purchase a 30-year policy with a death benefit in the amount of the mortgage balance. In this scenario, the policy will expire at the same time that the mortgage balance will be paid off.

Term versus Permanent Life Insurance

Term life insurance differs from permanent life in that permanent policies provide both death benefit protection, as well as a cash value or an investment component. Through this, the policy holder can build up savings on a tax deferred basis. This means that the funds can grow untaxed until the time they are withdrawn – essentially allowing the money to grow exponentially over time.

The policy holder can either withdraw or borrow the funds that are in the cash value portion of permanent life insurance. However, it is important to note that the amount of any unpaid balance will be counted against the policy’s death benefit should the insured pass away.

Unlike term life policies, permanent coverage has no particular time limit. This means that permanent life insurance – as the name implies – will remain in force permanently, provided that the premiums are paid. In addition, the amount of the premium will typically remain fixed throughout the life of a permanent policy. Therefore, while the amount of a permanent life insurance policy’s premium may start out higher than that of a comparable amount of term coverage initially, over time a permanent policy’s premium could end up to be less.  A good example would be a variable life policy, which builds over time by investing the cash value into stocks and bonds.  If the investment portion were to really take off then you would not need to pay as much in premiums to full fund the cash value.

Whereas a term policy may be a good option for someone who is covering a “temporary” need, permanent life insurance, such as a whole or universal life policy, could be better for an individual who plans to keep the policy in force for the duration of his or her entire lifetime. For example, these policies could be good for those who plan to use the policy for paying estate taxes or donating the proceeds to a charity.

Types of Term Life Policies

Depending on which options you choose, you can notice that there are very different costs to the premiums on your term insurance quotes.  There are several different types of term policies on the market – some are even specific to certain protection needs and those different options can lead to very different premiums when the term life quotes are pulled. Premiums on Insurance for smokers can look different as well.  There are several features of term life policies to understand that explain the general types of term life insurance policies available:

Guaranteed Level Premium Life Insurance

The most common term life insurance policy is guaranteed level premium. This type of policy guarantees that the monthly premium will never change for the entire term of the policy. So, if the policy is for a 30-year term at a guaranteed premium of $25 per month, that will never change for the entire life of the policy. 

Other types of policies might offer premium amounts that change over time or benefits that change over time. 

Renewable Term Life Insurance

With renewable term, the policy can be renewed by the insured after each time period – or term – has elapsed. The policy holder can do so without the need to complete a new application for coverage or to pass a physical exam.

Although the policyholder is allowed to renew the policy, a new term quote will be run and the premium on the plan will likely increase at each renewal. This is due to the insured’s older age and possible adverse health conditions.

Convertible Term Life Insurance

A convertible policy allows the insured to convert a term life insurance policy to a permanent life insurance policy at a later date. As long as the conditions of the policy have been maintained and premium payments have been made, the insured will not be required to undergo any new or additional health screening at the time the policy is converted – regardless of their medical condition.

Convertible term allows the policyholder the advantage of obtaining less expensive coverage, while still maintaining the option to convert to a permanent policy at a later time in the future as their insurance and financial needs may change, and they do not have to go through the process of getting a new quote.

Modified Term Life Insurance

A modified policy is any variation of payment structure or death benefit during the term of the policy. Some modified policies offer increasing premium amounts over time or decreasing death benefits over time depending on the need. 

Decreasing Term Life Insurance

With a decreasing policy, the death benefit decreases each year, even though the premium remains the same. The decreasing term life policy will end when the death benefit reaches zero.

Potential purchasers of decreasing term life insurance may be those who want to cover the amount of their unpaid mortgage balance. In this case, as the amount of the mortgage balance decreases, so too does the amount of death benefit on the decreasing term coverage.

Increasing Term Life Insurance

Increasing term insurance policies maintains the same premium throughout the term, but has an increasing amount of death benefit. This type of benefit can oftentimes be purchased as a cost of living rider to a whole life policy.

Return of Premium Term Life Insurance

One of the downsides of term life insurance is reaching the end of the term and having it just expire or having the premium drastically increase to keep the policy intact. Return of premium insurance is designed to pay the premiums back in the event you’re still alive at the end of the term. 

This feature does cost more than guaranteed level premium, but it actually costs less than a whole life policy. The major difference is the policyholder doesn’t earn any growth on the premiums over the years. 

Reentry 

Insurance companies typically charge low premiums in the first few years after issuing a term policy because they have screened their applicants and selected only those who are in relatively good health.

On average, insureds tend to remain in good health for the first few years after policies are issued. However, throughout the years, the pattern is that some policyholders who are in good health will drop their coverage while others who are in poor health will keep theirs.

In order to help in offsetting this trend, insurers need to build additional renewal premium charges into the policy in later years to help in covering the additional mortality cost that is associated with this adverse selection. If an individual is in good health, then he or she may apply for new insurance by showing evidence of insurability, and they can once again enjoy the lower mortality charges that are associated with the newly issued policy.

Therefore, some insurers offer reentry term life insurance policies. As long as an insured continues to show evidence of insurability at periodic intervals, their renewal premiums – which are based on lower mortality charges – will remain comparable to the premiums for newly issued term policies.

Likewise, if the insured is not able to qualify for the lower premium, most policies will also include a maximum amount of premium that could be charged. These maximum renewal premiums are higher than the renewal premiums that are charged for regular renewable term.

Final Expense / Burial Plans

Final expense insurance is a type of coverage that covers the cost of burial, a funeral, and other related costs. Often referred to as “funeral insurance” or “burial insurance,” final expense generally provides a benefit of between $5,000 and $50,000.

The policy holder on final expense life insurance can name a person (or persons) of their choice as the beneficiary. The beneficiary – in many cases a family member or other loved one – makes the life insurance claim upon the insured’s death and is then responsible for using the proceeds to carry out the policy holder’s wishes.

Many final expense life insurance policies are offered at a lower cost than more traditional forms of life insurance coverage – and final expense plans can allow the policy holder to make affordable monthly or annual premium payments. This makes final expense coverage easy to carry for many – even those on a fixed budget.

In many cases, final expense policies are underwritten as either “simplified issue” or “guaranteed issue.” With a simplified issue policy, the applicant is asked several questions regarding their health and medical condition. However, the applicant is not required to take a medical exam.

A guaranteed issue policy in one in which the applicant is not asked any medical questions at all. Therefore, with these types of plans, anyone who applies will receive coverage. It is important to note, however, that the premiums on these policies are typically higher.

Credit Coverage

Credit life insurance is a type of policy that is designed to pay off a person’s debt should the debtor pass away. The face value amount of the insurance policy typically will decrease as the balance of the debt goes down – until both reach zero.

Credit life insurance can protect an individual’s dependents in that they will not be saddled with debt should the borrower die prior to paying off the balance. In some cases, the purchase of a credit policy is required by a lender prior to loan or credit approval.

Some of the key features of credit life include:

• Policies insure the lives of a debtor for the benefit of a creditor
• Purchased on either an individual or group basis
• Policies are usually decreasing term coverage
• Death benefit proceeds cannot exceed the amount of the indebtedness
• The lender or creditor must apply the death benefit proceeds towards discharging of the loan
• Premiums usually are added to the debtor’s loan installment payments
• The insured is given a Certificate of Insurance
• The borrower’s coverage will terminate when the debt is paid off, refinanced, transferred, or becomes significantly overdue

Credit policies can also offer a way to obtain coverage to those who are unable to obtain it in any other way. Although proceeds do not go to the insured’s loved ones, credit life will help in reducing a decedent’s debts, which can help in avoiding financial hardship for the insured’s survivors.

I’ve Got the Basics Now How Much Life Insurance Do I Need?

Now that we know the ins and outs of polices we can get down to numbers.  Answering the question of “How much life insurance do I need?” is not as easy as it sounds. Nobody wants to leave their family buried under thousands of dollars in debt after their passing, but most consumers do not know what the appropriate life insurance policy amount should be. The size of the policy you’ll need depends on your financial situation, your future, plans, and your wishes for your family.

The first factor to look at is what is your family structure? Do you have a spouse and children that rely on your salary? Does your spouse work or are your kids grown? Are you children about to go to college? The more people that are dependent on your salary, the more life insurance coverage you’re going to need. If your kids have moved out of the house and your spouse is working, then you can probably purchase a smaller life insurance policy.  If the kids are young, you have substantial debt, and a stay-at-home spouse, you may be looking at a million dollar life insurance policy or more.

Spend some time evaluating your finances. Factor in your mortgage, annual salary, investments, and yearly expenses. If you still have $125,000 left on your mortgage and an additional $15,000 in student loans, then a $300,000 life insurance policy might not be enough. On the other hand, if your house is paid off, your kids are already out of college, and you only have a few credit cards or loans, a $300,000 policy could be sufficient. Do not forget to calculate the cost of a funeral in the expenses.

While there is no “right” answer to the amount of life insurance policy you should buy, you should consider at least getting a policy that is 10x your annual salary. Having a policy that is 10x your annual salary will give your loved ones the finances they need to pay off any debts and give them time to recover from the loss without having the added burden of funeral debt.

The other factor to consider is your lifestyle and how you want your family to use the money. Do you want your family to pay off debt and then invest the rest? Do you want them to be able to maintain the same lifestyle for the next ten years without having to worry about funds? Each situation will require a different amount of life insurance policy. Before deciding on a policy amount, talk to you family about your financial wishes for the insurance coverage and what makes the most sense.

How and Where to Obtain Term Life Insurance Quotes

In order to obtain the best quotes, it is usually a good idea to work with a company that has access to more than just one insurance company. This is because you will be able to compare several different policies and their corresponding premium prices. In many instances, the cost of coverage can differ a great deal – even for the very same coverage – depending on the insurer.

When you’re ready to start shopping for coverage, we can help. We work with many of the top life insurers in the market place, we can also direct you to the best life insurance rates for smokers.  We can help you to obtain all of the information that you need quickly, easily, and conveniently, directly from your computer and without the need to meet in person with a life insurance agent. Quotes can be viewed online – and when you’re ready to purchase, you can also submit your information via the Internet as well. If you are ready to begin the process of viewing quotes from top life insurance companies, just simply fill out and submit the form on this page.

If you should happen to have any additional questions regarding how insurance works, how to obtain term life insurance quotes, or even about life insurance in general, the experts at Root Financial are there to help. I am happy to have partnered with them as a top insurance agency so they can address any question or concern that you may have prior to moving forward. They will also walk you through the quote and application process.

We all know that getting quotes for life insurance can be a big decision. There is a great deal of information available – and at times, it can almost seem overwhelming. But making sure that you have your family in a secure financial footing no matter what the circumstances is worth the short term process of getting a policy.

 

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Get Best Pet Insurance For Your Animal

Aren’t pets the greatest?

Dogs didn’t earn the name “man’s best friend” for nothing, and to most people, pets are like members of the family.

Our pets give us comfort when we’re down and make us laugh when we need it most and expect it least; in return, we provide them with a home, food, and lots of snuggles.

But what happens when your furry friend gets sick or injured?

Just like human medical bills, vet bills can accumulate very fast.

And no pet owner should ever be faced with the prospect of being unable to afford to care for their beloved family member.

That’s why pet insurance can be one of the best investments you make for your four-legged companion!

But it’s important to get the right insurance for your pet (and from the right company) to ensure you have the best coverage at the best price.

Read on for everything you need to know about purchasing pet insurance.

Quick Guide To The Best Pet Insurance In 2018

1. What It Covers
2. Common Pitfalls
3. Deductibles and Maximums
4. How to Save
5. How Much You Need
6. Important Tips
7. Best Companies
8. Bonus Pointers

What Does Pet Insurance Cover?

Before deciding on any pet insurance plan for your canine or feline family member, you need to understand the types of coverage available and the conditions and treatments these plans provide for.

With pet insurance, there are basically three types of coverage:

• Comprehensive Care
• Accidents Only
• Wellness Coverage (or Preventative Care)

While you might assume they offer the same benefits, it’s important to know the differences between plans to ensure you pick the right coverage.

You’ll also need to familiarize yourself with benefit limits to avoid getting stuck with hefty vet bills when they (potentially, inevitably) start piling up.

Let’s take a look.

Comprehensive Care

if you can afford it, I recommend choosing Comprehensive Care.

These are plans offered by most providers that include both accidents and illnesses.

(It’s important to note that providers all have different names for this top tier policy, i.e. Comprehensive, Accident & Illness, Premium, Ultimate, etc.)

These types of plans enable pet owners to prepare for unexpected emergencies and pay for continuous care due to diseases or long-term ailments.

Obviously, conditions and treatments included in the plans depend on the coverage offered by the pet insurance company, but these are some of the most common and expected coverage options:

• Accidents and illnesses
• Hereditary, congenital, and/or chronic conditions
• Diagnostic testing
• Surgery
• Hospitalization
• Prescription medication
• Emergency care

Remember, the above is by no means an exhaustive list of covered treatments and conditions.

However, these are the more frequently confronted concerns that should be included in any Comprehensive Care package.

Many pet insurance providers may include other options, or the ability to purchase additional coverage for things like dental care, specialty care, behavioral therapy, alternative care, and others.  

Do your research!

Accidents Only

Generally, Accidents Only plans are more affordable than the Comprehensive Care packages.

Why?

Because they are not as far-reaching as the previously described type of coverage.

Accidents Only is just that, coverage for emergencies and unexpected situations.

Maybe your dog ingested a piece of chocolate or one of your prescription pills or got stung by a hornet while on a walk.

Poor pup!

These things happen, and Accidents Only plans take care of such situations.

Just note they don’t account for allergies, cancer, or parasites.

Wellness Coverage (Preventative Care)

First things first, Wellness Care is ordinarily not a cost-effective coverage option.

With wellness coverage, you pay into a plan (usually monthly), for your pet’s vaccines and regular checkups.

But most preventative care, like vaccines and regular checkups, are better handled out of pocket considering you might pay more for the coverage than for the treatments themselves.

Now that you have an idea of the main types of coverage, let’s take a look at some limits to their benefits.

Benefit Limits

Benefit limits fall under two main categories: unlimited and capped.

• Unlimited Lifetime means your pet insurance provider will cover the vet bills after you cover the deductible, period. This is the preferred option, as you don’t have to worry about ascending care costs if health issues persist with your furry friends.

• Capped plans cover your expenses up to a certain point, and are further subdivided into 3 categories:
  • Annual maximum: Annual maximum plans put a cap on the yearly amount the company reimburses you in general. If you reach that cap, you pay any amount over it. And it resets after every year.
  • Annual per incident: Annual per incident works in the same way, but it’s made for particular conditions, procedures, or illnesses. The company may have a cap on hospitalization costs, meaning you to pay any amount over the set limit.
  • Lifetime maximum: Lifetime maximum plans (general or per incident) set a specific amount the company will pay over the lifetime of your pet. If your beloved pup or kitty has any lingering ailments and requires constant medical attention, this type of option is severely lacking.

Of course, choosing the right coverage and limit option will depend on your budget and other factors.

Nobody knows your pet better than you, including their traits and predispositions.

When the moment comes to choose a plan, knowing the available options gives you the upper paw in the process.

Common Pitfalls

Don’t just assume when it comes to taking care of your bewhiskered darling the more coverage the better.

That’s not always the case.

Here’s an example:

Wellness coverage, also called preventative care, seems like a great idea (why wouldn’t you pay more for the unavoidable and necessary trips to the vet?), but in reality there’s a good chance you’ll wind up paying more in premiums than for the actual routine care.

Taking your pet for a regular checkup or getting their scheduled vaccines are somewhat inexpensive procedures that can be planned for.

Their costs are expected and you can fit them neatly into your budget.

By including wellness coverage as part of your pet insurance plan, you are automatically hiking your monthly premiums.

When it’s all said and done and you tally up your premium costs versus what you would have spent just paying out-of-pocket, you realize the money already gone would have been better spent getting all-new squeaky toys and treats.

Another tip:

Verify if your pet insurance company restricts visits to providers in their specific network.

A plan that allows visits to any licensed veterinary facility across the United States is undoubtedly the way to go.

Deductibles and Maximums

Coverage isn’t the only factor we have to consider.

Pet parent, allow me to introduce you to deductible and reimbursement models.

Companies usually offer a variety of customizable options when it comes to choosing your:

• Premium: the amount you wish to pay monthly
• Deductible: the amount you have to pay before coverage begins
• Reimbursement: the amount of money, as a percentage, that the company will pay you back after coverage has been activated.

Let’s break down deductible types and what they mean, followed by the reimbursement models.

• The annual deductible is a fixed amount of dollars that includes any procedure or treatment given to your pet. When that fixed amount is met – when you have already paid the dollar amount for your buddy’s care – the insurance company will begin to cover whatever percentage of reimbursement you have chosen. Deductibles reset at the end of the year.
• Per condition type includes several deductibles for different ailments as defined by the company. Once a deductible for a specific condition is covered, the plan pays out the reimbursement chosen, either resetting after each year (annually) or for the pet’s life (lifetime).

The annual deductible type is the preferred choice, but per condition is a viable option depending on your dog’s (or cat’s) health history.

Understand that the lower deductible amount you choose, the higher the monthly premium will be.

After you meet the deductible amount, you will continue to pay for a portion of your pet’s care.

However, you are only responsible for the amount left over after the insurance company pays the percentage level you’ve chosen in your plan.

This amount will depend on the model and percentage of reimbursement previously chosen.

Similar to the deductible type, the higher the reimbursement percentage chosen, the higher the monthly premium will be.

Let’s say Rex’s veterinary bills run up to $1,000 for the year.

You have a $500 deductible, which you’ll pay directly out of pocket.

However, you have a 90% reimbursement plan, which means you only will end up paying $50 of the remaining $500 balance.

How to Save

We’ve knocked out the different coverage options and the distinctions in deductible and reimbursement types.

Now let’s get you on the path to savings!

First, keep in mind the price range for pet insurance will obviously vary depending on the type of coverage.

However, we can establish $20 and $100 as the two endpoints in this range.

You don’t want to pay too much for coverage you won’t use, but you also don’t want to pay less when there’s coverage you might need. So, a midpoint in the stated range is what we’re shooting for ($40-$70).

Ok, let’s discuss how we get there.

Tip 1: Customize wisely

As mentioned before, the higher the reimbursement percentage chosen, the higher the monthly premium will be.

The inverse applies to deductibles: the higher the deductible, the lower the premium will be.

Pet insurance companies will usually allow you to customize these options.

This way, you get to set a monthly premium you feel comfortable paying.

However, other factors can contribute to pricing issues.

Your current location, your pet’s breed, age, and pre-existing conditions can either raise or lower your costs.

Tip 2: Prioritize your finances

I know you want to give your pet all the care in the world, but at the same time, you have to consider all your finances when you make a decision.

Weigh your pet’s specific health needs, the benefits of the plans, and their costs.

Tip 3: Make a budget

How, you might ask, do you prioritize your finances?

With a budget!

Like I said earlier, the money for routine checkups and vaccinations can be adequately allocated, eliminating the need to purchase the (eventually) costlier Wellness coverage.

Now you’re saving.

Tip 4: Weigh your options

Additionally, although we do recommend Comprehensive Care (with accident and illness coverage) because of its robust features, you might feel that an Accidents Only plan would be enough.

Just be aware of the pros and cons when choosing one over the other: while you might save monthly on your premiums, unexpected illnesses and lengthy maladies can throw your finances out of whack.

In this case, paying a bit more now can save you a ton later.

Likewise, with benefit limits I suggest going with the Unlimited Lifetime option.

Unfortunately, the cost of veterinary care, like everything else, is trending upward.

Any dollar you pay extra now in premiums is 10 dollars you pay less in the long run.

It might seem counterintuitive, but the best way to save on veterinary care is paying a bit more on pet insurance premiums for broader coverage and benefit limits.

Some companies do offer discounts for organizations or membership programs, so make sure to verify before making your choice; even a savings of 10% is very beneficial.

Tip 5: Mix and match

Compare different companies and the varying treatments and conditions they cover.

As we’ve said, nobody knows your pet’s proclivities better than you.

Choose what’s best for their health but be mindful of your expenses.

And don’t worry if you regret your choice of pet insurance plan; you can always change it to fit your needs.

How Much Do You Need?

Attending to your pet’s health, especially when they are sick, is an obligation.

You are that creature’s caretaker; they are part of your family.

Of course you want to do everything in your power to help them.

This sentiments grows truer as time goes by and your pet ages with you.

It’s a lifelong duty to provide them comfort and happiness in gratitude for the unconditional love they demonstrate every day.

How much care is enough?

One size fits all doesn’t apply to pet insurance (or any insurance, for that matter), so you need to sincerely look at your pet’s needs and their medical conditions to come to a conclusion.

Their age, their breed, their health history, are all factors that need to be taken into consideration when deciding on pet insurance.  

Even though we might try to prevent them, accidents do happen.

Here’s a scenario to provide you some insight:

Imagine you protect Lucy your Labrador Retriever as best you can.

She visits the vet periodically; you groom and feed her well.

But one day a distracted driver doesn’t see her crossing the street.

Suddenly Lucy is hurt, your heart is broken, and you scramble to get her the quick attention she needs.

You have Accidents Only coverage; that’s fine.

She will receive treatment, maybe surgery, and you will be covered.

Lucy recovers well, and you’re glad you made the decision to purchase the insurance to take care of her.

Lucy is still your faithful companion years later, when you start to notice a faint limp in her gait.

Sadly, Labrador Retrievers are more prone to canine hip dysplasia than other smaller breeds.

Your Accidents Only insurance plan does not cover this type of illness; therefore, all medical costs to alleviate her condition are unprogrammed expenses which put a severe dent in your finances.

You want to change Lucy’s plan, and you can.

However, it’s getting difficult to find an affordable alternative because many insurers consider the hip dysplasia a pre-existing condition due to Lucy’s previous accident. S

he’s also getting up there in years, and the companies usually have an age limit when it comes to insuring dogs. Meanwhile, vet bills keep piling up.  

Lucy will make it out alright.

But a bit of research beforehand could save you thousands in vet and procedure fees.

Not all plans cover hip dysplasia, so having a Comprehensive Care package would not have necessarily provided relief.

However, other plans do cover hereditary, congenital, or chronic diseases.

Knowing your pet is predisposed to this type of disorder can give you a leg up when the time comes to choose an insurance plan.

We want to give our dogs and cats the best possible life they can have; they deserve nothing less.

A simple purr or tail wag can fill our own lives with happiness.

As smart shoppers, we want to examine all available alternatives and consider various possible outcomes before deciding on a product.

Pet insurance is no different.

Fortunately, the options on the market are accessible and affordable if you know where to look.

Important Tips & Additional Help

If you still have some unanswered questions, hang in there!

There are still a few details to expand on, particularly in reference to what is and isn’t covered in most plans.

Routine Versus Comprehensive

The following are considered routine and standard procedures every pet needs:

• Scheduled vet visits
• Spaying or neutering
• Shots and vaccinations
• Dental (regular checkups)
• Flea and tick examinations

Pet insurance generally does not cover these forms of veterinary intervention, except Wellness packages (of which we have already discussed their benefits, or lack thereof).

Nonetheless, if your vet visit is due to an accident, your pet’s insurance would cover it.

Comprehensive Care provides coverage for extensive treatments, for illness and accidents like the following:

• X-rays
• Surgery
• Hospitalization
• Prescription medications
• Dental (if related to an emergency)
• Cancer

These are just some of the covered procedures.

Of course, it will all depend on the plans offered by the insurance companies and the exclusions contained in their policies.

Some include coverage for congenital and hereditary diseases, while others cover dental illnesses.

Surgeries might not be included if they are related to pre-existing conditions.

And providers sometimes impose specific age requirements for euthanasia.

As you’re hopefully starting to see, it’s imperative to look at all the coverage options from providers and the fine print, as the variety of plans might be more appropriate for different ages, breeds, and medical histories.

Other Covered Treatments

With ever-expanding medical and technological progress, the options for veterinary care are broader and more advanced than ever.

Most industry-leading companies now offer specialty care you wouldn’t normally think was covered, as well as non-traditional treatments and procedures such as:

• Specialty care: specialist vets including, but not limited to, oncologists, ophthalmologists, neurologists, and cardiologists.
• Alternative care: non-traditional therapies and holistic practices like acupuncture, chiropractic, aromatherapy, hydrotherapy, massage, and herb treatments.
• Behavioral therapy: provides pets and their caretakers with tools to manage conditions like anxiety or over-aggressive tendencies.
• Prosthetic and mobility aids: assist pets that have difficulties getting around. They could include wheelchairs, boots, socks, splints, and harnesses.

Best Companies

Now it’s time to look at the best plans on the market.

It might take some extra homework, but that time is oh-so worth it.

When it comes to choosing an insurance provider, be it for yourself, your pets, your house, or your car, it’s always wise to dig deeper!

This is not a comprehensive list, but here are some companies who consistently provide exceptional plans to protect your pets.

Healthy Paws

Washington state-based Healthy Paws is consistently ranked among the industry leaders because of their renowned customer service and competitive price plans.

• Claims can be filed quickly and completely online (or through their app), taking just a couple of days to be processed.
• Customer care is available 7 days a week with attentive representatives ready to assist you with any process.
• Available for dogs and cats, their policies cover illness and accidents, prescription medications, surgeries, hospitalizations, and alternative therapies.
• There are no restrictions for congenital or hereditary conditions. However, pre-existing conditions are not part of their coverage.
• Underwritten by the established Chubb insurance group, Healthy Paws has no limits or caps on their coverage. Even the in their standard option, they will cover anything over the deductible.

The company offers all this while still maintaining affordable monthly premiums, making it the biggest bang for your buck in the pet insurance marketplace today.

Petplan

Established in 2003, Petplan offers comprehensive coverage with a flexible customization process.

• Although several negative reviews mention their pricing options as lacking, they offer a free quote feature through their website to give you an idea of plan costs and coverage before committing.
• Variety of deductible options (anywhere from $100 to $1,000), also letting you establish limits (from $2,500 to unlimited) to help you find the monthly premium that fits your budget.
• Petplan stands apart from other companies in that they do not automatically disqualify pre-existing conditions from their coverage. This is not to say that they will cover any pre-existing ailment, and there is an exclusionary period. But it’s nice to know you have options.
• The company is also transparent about their claim filing and payout process, stating that it will take a minimum of 30 days for its completion.

Embrace

With an A+ rating from the Better Business Bureau, Embrace Pet Insurance is highly esteemed.

• Embrace offers fast reimbursement payouts
• They cover non-traditional treatments (mainly behavioral therapy and prosthetic devices).

• There is an age limit to enroll in their plans  (14 years old) and they do not offer unlimited coverage, capping annual benefits anywhere from $5,000 to $15,000.

Either way, their quick reimbursement process (which you can complete online or via fax) is their main strength, even offering direct deposit to speed up the payout.

Nationwide

As part of one of the largest insurance groups in the US, Nationwide Pet Insurance offers expanded coverage unlike most other providers.

• Not just specializing in dogs and cats, Nationwide also offers plans covering exotic animals and birds.
• Pricing for their plans is not as competitive as other providers. Their less expensive plans will include limits per condition or procedures, thereby restricting coverage for pets that require constant veterinary care.
• They do offer an unlimited plan, their Whole Pet with Wellness package. It has everything you might want for your furry (or feathered) pals. But this amount of quality care will assuredly be echoed in costs, making it a prohibitive option for most people.

Figo

Figo is a recent entry into the pet insurance business, offering a more technologically inclined user experience and features not usually seen from the large, traditional insurance providers.

• Their website includes a cloud-based platform to help manage your account and your pet’s records where you can upload documents, file claims, or contact customer service.
• Even with its limited history in the business, Figo offers considerable coverage options with reasonable rates.
• They provide options for unlimited benefits and, unlike other companies, a 100% reimbursement option.

PetFirst

PetFirst pretty much offers industry standard coverage and pricing.

Based in Jeffersonville, Indiana, PetFirst has been insuring dogs and cats since 2004.

• Although standard pricing does not deviate from what the market offers, the upper coverage tiers tend to be pricier than other companies.
• Additionally, they do not provide unlimited annual options. So if you opt for a higher annual benefits limit, you will end paying higher prices than unlimited plans with other providers.
• PetFirst excels in their robust discount options. Any year you do not make a claim, they reward you with a “healthy pet” discount.
• They also consider multiple-pet households, offering discounts when more than one creature is enrolled.

Pets Best

With the stated mission of ending economic euthanasia, Pets Best offers plans to help pet owners provide quality of life for their four-legged family members.

• They have no age limit when it comes to enrolling an animal and all their coverage plans include prescription medications as part of their benefits.
• Only the most expensive plan has no payout caps, other less expensive plans have benefit limits.
• They do, however, offer a 24/7 hotline to receive veterinary assistance over the phone, helping avoid possible visits to the emergency room.
• Their claim processing is also highly regarded for their expediency and direct deposit option.

Bonus Pointers

With all this information at hand, you are now closer to picking a plan that works for you and your pet.

Congratulations!

Here are just a few more factors to consider as you make the final call:

Although a few pet insurance providers have relationships with vets that enable them to process claims at the time of the visit, much like human medical insurance, most pet insurance companies reimburse the costs of coverage to you, per the percentage chosen in the enrollment period and after you exceed the established deductible.

What does this mean?

Basically, you pay for the necessary procedure and subsequently need to file a claim with the insurance provider.

They will then send you a check for the corresponding amount, though some companies do have direct deposit available (a quicker alternative).

In most cases, you need to have the funds with you to pay for your pet’s care until the company completes the claim.

You should inquire about each companies claim practices, and their typical processing time so you’re not stuck with hefty expenses with no relief in sight.

Considerations should also be made regarding enrollment.

Waiting periods and maximum/minimum age requirements are present when you enroll your pet in coverage.

Time frames ranging from 24 hours (for accidents) to 30 days (for illnesses) are established by the companies before the particular coverage kicks in.

Free look periods are usually available also.

Peruse the details of the plan to know the minimum number of weeks your pet must be, or if they have an age limit for enrollment (most do, but some offer lifetime plans, regardless of age).

Wrapping Up

Your pets are a special part of your family, and knowing they’ll be covered if something goes wrong is an incredible relief.

With the number of customizable plans and carriers on the market, I have no doubt you can find a plan perfect for your furriest family member’s needs.

Do some research, compare quotes, and get your pet covered today!

The post Get Best Pet Insurance For Your Animal appeared first on Good Financial Cents.

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Drive Away With a Free Amazon Gift Card When You Rent a Car From Avis

Flying somewhere for a little rest and relaxation this summer? You’ll probably need a rental car when you land. And if you’re a frequent Amazon shopper, you’re gonna love this deal.

With Avis’ new Amazon benefits program, Amazon customers can get an Amazon gift card worth 10% of their Avis rental car purchase once the rental is complete.

Have an Echo? The deal’s even sweeter. If you book your rental through Avis’ Alexa skill, you’ll get a gift card worth 20% of your purchase.

And before you ask: No, you don’t need to be a Prime member to take advantage of this deal.

So, how does Avis know you’re an Amazon customer — besides the fact that everyone is? You’ll have to head over to Avis’ website and log in with Amazon. Once you allow Avis.com to confirm your account, you’ll be prompted to create a profile on Avis or link an existing account.

The website also touts that you can save 30% off base rates, and can use other coupon offers, with your Amazon benefits.

Once you return the car, your gift card will be sent to the email associated with your Amazon account within 48 hours.

Jen Smith is a staff writer at The Penny Hoarder. She gives money-saving and debt-payoff tips on Instagram at @savingwithspunk.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

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Is It Cheaper to Book Through Travel Sites or Directly Through Hotels?

Craig writes in:

I usually stay at Marriott hotels while traveling because I know what I’m getting when I stay at one and they’re very consistent – a little pricy but I never get a bad surprise. I usually book through hotels.com but a friend told me that it is more cost effective to get into the Marriott Rewards program and book my hotel stays directly with Marriott. I’m trying to do the math and figure out if it’s true.

I want to start off by quickly covering the specific options that Craig is mentioning. Marriott is a hotel chain that offers several different brands of hotels at varying levels of quality, but in general a hotel that has the word “Marriott” somewhere in the logo offers a consistent and reasonably high quality experience. I like to stay at both Residence Inn and Courtyard, both of which are reasonably priced Marriott hotels, and have stayed at both Marriott and JW Marriott (higher priced) at various times. Hotels.com, on the other hand, is one of the most popular hotel booking aggregation sites, and I’ve used them regularly for many years.

So, let’s look at the two options that Craig is considering, in detail.

If you book your hotel stay through Hotels.com, they offer a bonus program in which you earn a free night’s stay at a hotel for every 10 stays you book through them. The value of that free night is equal to the average cost of the 10 nights that earned that free stay. So, let’s say you booked 10 nights at an average cost of $100 per night; you would earn a free night’s stay worth $100. In essence, if you stay at similar hotels all the time, you’ll earn a free stay with every 10 nights of bookings on Hotels.com.

With Hotels.com, you can choose from many, many different hotel chains, which is an advantage for comparing rates and options. This does give you some flexibility that booking directly through a hotel chain does not offer you.

Another advantage of Hotels.com is that they occasionally offer a deal on a particular hotel. If you watch Hotels.com carefully, you’ll sometimes find deep discounts that pop up in the area you want to stay in. Otherwise, I find that their rates are very comparable to what you’d get if you booked directly with the hotel in question.

On the other hand, the Marriott Rewards program offers 10 “points” for every $1 spent at a Marriott hotel, with a few minor variations. These convert into free nights at a variety of different rates depending on the hotel brand and location, as described here. The points rate for a single night at a Marriott hotel varies from 7,500 to 70,000. To put that in perspective, to earn a free night at the lowest end hotel would require you to spend $750 in total at Marriott hotels, while a free night at the high-end hotel would require you to spend $7,000 in total. It’s worth noting that if you book four nights in a block with Marriott points, you get the fifth night free, so if you saved up, say, 30,000 points, you could actually stay for five nights at the low end hotel.

It’s worth noting that Marriott also runs a “PointSavers” program, where many of their hotels are available at a discounted points rate (usually around 10% to 15% fewer points required for a night). However, this lower rate isn’t available at all times and all locations.

Marriott room rates vary widely based on location and brand (JW versus Marriott versus Courtyard versus Residence Inn and so on). I’ve stayed in Marriott hotels for well under $100 a night and other Marriott-owned hotels are as high as $400 a night. It all depends on location and property quality more than anything. Most of the Marriott owned hotels I’ve stayed at in the past are in the medium to lower end of their tier range and I’ve always been satisfied. Rooms at those hotels would be in the 10,000 to 15,000 point range and would cost around $150 a night if booked directly. This would mean that it would take somewhere around eight to nine nights spent at the Marriotts I typically stay at to earn a free night at the level of Marriott that I typically stay at.

It boils down to this: If you’re going to stay at a Marriott hotel and the booking price is the same on Hotels.com and when booking directly from Marriott, you’re going to be slightly ahead booking directly from Marriott if you stay in Marriott hotels frequently. On the other hand, if you are not consistently a patron of Marriott hotels, or if you find a notably lower rate for your booking on Hotels.com, you’re better off booking at Hotels.com.

There are a couple of other things to consider in all of this.

First, this story is similar when comparing most travel aggregation websites and most hotel chains. You’ll find that if you’re a heavy traveler and frequent one hotel chain a lot, then you’ll probably find more value in that hotel’s rewards program, but if those factors don’t apply to you, you’re probably better off booking with the aggregator. This isn’t universal, but it seems to be a pretty consistent pattern.

Second, if you are a heavy traveler and stay at a certain hotel chain frequently, you’re probably going to find that it’s worthwhile to get a rewards credit card that offers perks associated with that chain. For example, the Marriott Rewards card earns you 6 points for every $1 spent at a Marriott property and 2 points for every $1 spent everywhere else. This means that if you book directly with Marriott, you’ll earn 16 points per $1 spent, which means you’ll be getting a free night at a similar hotel with every six to seven nights or so of staying at that type of hotel. You also get a free night’s stay once a year with this card (up to a fairly high tier of hotel – nicer than the ones I often stay at, anyway). However, the card comes with an $89 annual fee, so you definitely need to be a very regular Marriott patron to get real value out of this card compared to other reward credit cards.

So, what’s the overall conclusion?

If you prefer to stay at a specific hotel chain and do so most of the time, you should become a member of that hotel chain’s rewards program book most of your hotel stays directly through that chain. This is slightly more cost effective than the bonuses offered by hotel aggregators.

If you are willing to stay at any hotel chain, you’re better off using a hotel aggregator like Hotels.com and using their bonus program. This is a more cost-effective route. It should be noted that different hotel aggregators (like Expedia or Booking.com) have very different bonus programs, but they all tend to boil down to something in the ballpark of booking 10 nights and being able to get the 11th night free.

Before you book directly with a hotel, you should at least check a hotel aggregator or two to see if you can get a room at that hotel at a highly reduced rate. Let’s say you’re like Craig and you prefer to book at Marriott hotels. Before you book a stay, it’s worth your time to check Hotels.com or other hotel aggregators and see whether that hotel is offering a significant discount through the aggregator. In general, if the discount through the aggregator is 10% or more, it’s probably cheaper to use the aggregator. My experience as of late has been that the vast majority of the time, the rates across all sites are the same for a particular room, with only 1% or 2% difference, unless there’s some kind of flash sale on the room. It’s those flash sales and the occasional price difference that make it worthwhile to check, and those happen often enough to make checking worthwhile.

You’re generally better off sticking with one hotel chain and one aggregator. Why? Unless you travel an absurd amount, you’ll never accumulate enough points or nights within a large number of programs to add up to a free night. You’re better off sticking with the points generated in one or two programs, even if you’re paying a little bit more once in a while. I personally use hotels.com as my aggregator, but I book almost all of my stays directly through them, as I’m pretty price conscious with my stays. I think that if I were a heavy traveler for work purposes, however, I would want a consistent chain to trust.

Used in concert, these strategies will help you find a good price on a room you like and accumulate adequate bonuses over time so that you’ll eventually be able to earn free nights at hotels you enjoy without much additional effort. Good luck!

Related Articles: 

• The Best Travel Rewards Credit Cards
• Five Strategies to Use Marriott Hotel Points for a Cheap Vacation
• Best Hotel Rewards Programs
• Which Rewards Cards Are Best for Vacation Rentals Like Airbnb?

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14 Mobile Trends That Are Dominating 2018

As we pass the midway mark of 2018, it’s clear that mobile technology is prevalent in our world today.

In the past, I’ve told you to keep an eye out for the top marketing trends of 2018. But now I want to take that one step further and narrow that focus specifically to mobile trends.

As a business owner, you need to keep your finger on the pulse of modern marketing trends to be successful.

This guide is beneficial for marketers, app developers, and anyone else who wants to improve their business.

While I’m not saying you need to apply these trends to your own marketing, it’s important you’re aware of the new technology that’s available and surrounding you. Who knows, maybe you’ll decide to change your strategy based on this information.

I used research from previous years as well as some recent technological developments to come up with this list.

These are the top 14 mobile trends dominating the year so far. I expect these to continue trending upward as we close out 2018.

1. Artificial intelligence (AI)

Artificial intelligence has penetrated our mobile world.

We’re getting one step closer to mobile devices morphing into robots and taking over the planet. Obviously, I’m kidding.

While that day has yet to come, we are seeing advancements in mobile AI. You may be familiar with some of these:

• Alexa
• Siri
• Cortana
• Google Assistant

All of these are examples of AI that may even be installed on your mobile devices right now. In addition to these popular forms of AI, mobile apps are now using software such as voice recognition to encourage hands-free use and ultimately optimize the customer experience.

AI software is used to help developers and marketers learn more about the user.

Businesses are trying to get more revenue by using this information to create relevant advertisements that target specific audiences.

2. Location-based technology

Your smartphones and tablets are tracking your location. That’s not a secret.

Mobile applications are also tracking your location, with your permission. Each time you download a new app, it requests your permission to use your location. Here’s an example of this from Nexonia:

Each time you download a new app, you’ll get a notification similar to the one seen above.

You may not even be able to use some apps to their full potential without giving them access to your location. For example, think about a ride-sharing app such as Uber.

They need your exact location to connect you with a driver.

But have you noticed an increase in apps requesting your location even if you don’t think it’s required to use the primary function of the app? That’s because 7 out of 10 apps on your smartphone share your data with third parties.

They do this to enhance their marketing campaigns.

If a business knows where a user is, it can send them targeted ads based on the location. An example of this is when an app uses geofencing technology. Here’s how it works.

Let’s say you own a restaurant and have a mobile app. If an app user walks within a few blocks of your location, they’ll receive a notification about your lunch special.

So far in 2018, we’ve seen an increase in this strategy, and we’ll continue to see it used in the future.

3. Augmented reality

Augmented reality takes something that’s real and modifies it.

One of the best examples of this is the face filter options on Snapchat. Recently, Instagram implemented this feature as well:

Other mobile apps use this strategy to generate revenue.

Remember when everyone was going crazy about Pokemon Go? The entire premise of that game was based on augmented reality on a mobile device.

I found some mind-blowing statistics about the game and how successful it was:

• over 800 million downloads
• more than 5 million daily active users
• $1.2 billion total revenue

Those numbers speak for themselves. Based on the success of apps such as Pokemon Go, Snapchat, and Instagram, more businesses have been trying to incorporate augmented reality into their mobile technology.

This will help them create brand awareness, app downloads, engagement, and revenue.

4. Syncing wearable technology with mobile devices

Wearable technology has become increasingly popular in 2018.

I’m referring to things such as fitness bracelets, smartwatches, healthcare monitors, and glasses. They all can be paired with mobile apps.

Take Fitbit as an example. All the movements of a person wearing it can be tracked through an app. Users can check their heart rates and how many miles they walked in a day, among other things.

By syncing with mobile devices, these apps can be used socially as well. People can compare their progress with their friends and make it a competition.

As a result, it encourages the usage of the technology and increases engagement.

By the end of 2019, experts estimate that more than 125 million units of wearable technology will be shipped. That compares to just 50 million units shipped in 2015.

The reason for the popularity of this technology is its ability to pair with mobile devices.

5. Revenue from mobile applications

Mobile apps are making a killing. Just look at the jump from 2016 to 2017 in terms of global app revenue:

There was a substantial increase in revenue through both the Apple App Store and Google Play Store.

This trend isn’t slowing down. Mobile apps will continue to thrive. Experts believe that by 2020 the global revenue from mobile apps will be $190 billion.

That’s triple the numbers we saw last year (2017).

6. Mobile devices syncing with homes

Mobile apps are being developed to help improve consumers’ experiences within their own homes.

You can find businesses that sync your home air conditioning and heating with an app. That way, you can control temperatures whether you’re home or not.

Instead of going to a central thermostat in the house, you can reach into your pocket and set everything on your phone.

Home security has been integrated with mobile technology as well. There are apps that have a video camera synced with your doorbell so you can see who is at your front door when the bell rings.

Home security cameras on the inside and outside of your home can all be controlled and monitored from mobile devices.

There are even smart refrigerators that connect with mobile devices. This technology gives you the ability to see inside your refrigerator while you’re at the grocery store so you can see what you need to buy.

7. Enhanced mobile security

Saying that security is important would be an understatement.

With big companies having security breaches, consumers have become increasingly aware of the potential dangers of giving away their personal information.

Many people don’t like the risks of providing sensitive information to businesses, especially through mobile apps. In fact, security and distrust are two of the top reasons why mobile users don’t feel comfortable using mobile payment applications.

Furthermore, 56% of American consumers say they believe mobile payments will increase their chances of becoming a fraud or theft victim. Only 5% of people think these types of payment methods reduce those chances.

But as previously discussed, mobile app revenue is on the rise. While some consumers are reluctant to pay via mobile, others are not.

Businesses are recognizing these perceptions and improving their mobile security. They want their customers to feel as comfortable as possible when paying using mobile devices.

8. Small business mobile apps

Not long ago, mobile applications were just for the big players. But now everyone is developing them.

It doesn’t matter how long you’ve been in business or how small your company may be, you can probably benefit from mobile app development.

Last year, more than half of small business owners in the United States said they had plans to develop a mobile app. Midway through 2018, those apps should be in development and launching soon, if they haven’t already.

Why are they building apps? Fifty-five percent of small business owners are using mobile apps to increase sales revenue.

Apps also improve the user experience and help businesses stay competitive in a market that’s always changing. You can’t afford to fall behind, so you need to stay up to date with the latest technology.

9. Increased mobile payments

As mobile security improves and global app revenue rises, we’ll see an increase in mobile payments as well. Among them are:

• bank apps
• PayPal
• Venmo
• Google Pay
• Samsung Pay
• Apple Pay

Just look at the jump in the number of payment apps users we’ve seen over the last three years:

These numbers are continuing to rise in 2018.

Again, this relates to mobile security. There is a direct correlation between how comfortable people feel making mobile payments and the increase in mobile payment popularity.

10. Transportation apps

For quite some time, we’ve seen apps for train tickets, local bus schedules, etc.

Ride-sharing apps, such as Lyft and Uber, have been dominating for years now as well. Even car sharing apps, such as Zipcar or Turo, are nothing new.

But new apps are bringing transportation to a whole new level. I’m talking about Bird and Lime Bike. Users can locate a scooter or bicycle from their mobile devices.

When they approach the transport, they can unlock it using cameras on their smartphones. Users get charged for the length of time they used the bike or scooter. When they’re done, they can leave it anywhere.

Note that it’s relevant to our discussion about location-based services and mobile payments.

These new types of transportation are also integrated with mobile technology.

Bird raised $15 million earlier this year from investors. They are seeking an additional $100 million. It’s safe to say they predict this will be a major part of the future in this industry.

11. Virtual reality

Virtual reality is not quite the same as augmented reality. You’ll need more than just a smartphone to experience virtual reality.

Typically, a helmet or some type of goggles get used simultaneously with your mobile device. This technology may even come with a joystick or controller.

It’s estimated that the global valuation for the virtual reality market will exceed $26 billion by the year 2022.

This won’t happen overnight. We’re already seeing virtual reality advancements in 2018, and I expect those trends to continue as we move forward.

12. Hybrid apps

Mobile app development can be expensive. Business owners have weighed the pros and cons of native and hybrid app development.

While both have their upsides, native development is more expensive. Furthermore, native apps can be built only for one platform at a time.

This is a problem for smaller businesses with smaller budgets for app development.

If you want to have your app available on both iOS and Android devices, you’d need to go through development twice, which is no easy task. Some businesses can’t afford that.

But hybrid apps make this possible. It gives people the opportunity to launch their apps on the Google Play Store and Apple App Store simultaneously for a fraction of the cost.

That’s another reason why more mobile apps are available for download, which contributes to the rising global app revenue as well.

13. Personal mobile devices in the workplace

Research indicates 87% of businesses depend on their employees to access work resources from their personal mobile devices. This is a big change from what we’ve seen in the past when businesses were trying to prevent this.

The concept is known as BYOD, or bring your own device.

In 2016, 78% of companies that disallowed BYOD said it was due to security concerns. But as I’ve already discussed, mobile security is improving, so now businesses are adapting and changing their policies.

Research shows there is a 34% increase in productivity when employees are allowed to use their personal mobile devices for work, which makes sense.

They are used to handling these devices on a daily basis. It’s easier for them to navigate and stay organized.

This also helps businesses cut back on costs since they don’t need to pay for new hardware.

14. Biometrics advancements

Biometrics are used to enhance security for mobile devices. Examples of biometrics include:

• voice recognition
• facial recognition
• signature recognition
• fingerprint recognition

Your current device may have some of these features installed. We’ll see a lot more of this moving forward.

For example, let’s say you’ve got an iPhone that was released in the last couple of years. You’re used to the fingerprint feature to unlock the device.

But now the new iPhone X has facial recognition software.

Other apps are using biometrics as well. For example, you may be required to use your fingerprint to make a mobile payment through some platforms.

Conclusion

Technology is constantly evolving. Just compare your current smartphone to the phone you had five or ten years ago.

As we continue through 2018, we’ll see several different trends. Older mobile technology will be improved, and newer technology will be introduced.

The idea is to understand how consumers react to these changes. They are the ones who shape these trends.

Identify the upward trends, and adapt accordingly to meet the needs of your mobile customers.

How is your company using the latest mobile trends to make improvements and target mobile consumers?

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14 Sites That Will Pay You to Test Out Websites 💻

As a blogger, it’s important to know that my site is user-friendly. Because if I’m losing visitors due to lousy navigation, lack of clarity, poor design, or content — then I’m losing money. This is why companies will pay good money for objective third-party reviews of their website. To test out websites from home, you […]

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12 Weeks Off Work Without Pay: How I’m Preparing for Maternity Leave

Four Myths About Annuities: Do They Deserve Such a Bad Rap?

Annuities have long had a bad rap.

Aggressive marketing and messaging about high fees, charges for surrendering them early, and potentially disappointing returns compared to stocks are just some of the reasons annuities have, at least in some people’s minds, become the black sheep of retirement vehicles.

Numerous financial professionals however, argue that there’s a long list of myths and inaccuracies surrounding annuities. And those myths are causing people to lose money by missing out on a retirement option that can offer valuable benefits, particularly at a time when pensions have largely become a thing of the past.

Myth No. 1: All Annuities Are Bad

There are many types of annuities, and categorizing them all as bad choices is an oversimplification, begins Ken Nuss, CEO of AnnuityAdvantage, an online annuity marketplace.

Like any financial instrument, annuities have pros and cons. In addition, there’s a significant difference to be aware of between a variable annuity and a standard fixed-rate annuity.

A standard fixed-rate annuity, which guarantees return of principal, acts much like a tax-deferred version of a bank certificate of deposit. The money invested is guaranteed to earn a fixed rate of return throughout the accumulation phase of the annuity. During the payout phase, the balance invested, minus payouts, also continues to grow at this same fixed rate.

A variable annuity, on the other hand, can be invested in volatile, high-growth funds. As the name implies, the value of your investment varies depending on the performance of the investment options you choose.

“Some types (of annuities) simply aren’t right for some people, just as some mutual funds or other investments are unsuitable for some people,” Nuss says. “But some annuities are a perfect solution for some people because they do things no other financial product can.”

Matthew Barr, a life insurance agent licenses in 16 states, echoes Nuss’ sentiments. Marketing campaigns, says Barr, have convinced consumers that annuities are all bad.

“Do some annuities have high fees? Yes. Are there annuities out there that are very confusing? Absolutely. Do I think it’s smart to put grandma into a 15-year annuity surrender period? No, but does it happen? All the time, and that’s why they get a bad reputation,” he said. “I’m the first to admit there are some bad eggs out there, but if you work with a trusted advisor or agent who helps explain what type of product you have… annuities can do a lot of good and have for my clients for many years.”

Myth No. 2: Annuities Have High Fees

Again, it depends on the type of annuity in question.

Fixed annuities have no consumer fees unless optional riders are added, explained Nuss.

The simplest type of fixed annuity is the multi-year guaranteed annuity. It’s the annuity that’s often compared to a CD because it offers a set rate of interest for a specific period of time. This type of annuity is tax-deferred and, importantly, the interest rates on these annuities usually beat those of CDs with the same term.

Other annuities to keep in mind that typically have no fees include immediate annuities, deferred income annuities (longevity annuities), and fixed indexed annuities, said Nuss.

Variable annuities do have ongoing fees, which are deducted from investment earnings in the same way mutual funds charge investment management fees. Additionally, there is a mortality fee. The key with these annuities, which offer growth potential, is to shop around to avoid the pricier options, said Nuss.

“Investors can avoid fee-heavy variable annuities by comparing fees before buying,” said Nuss. “Keep your eyes open and ask questions.”

And perhaps the even bigger take-away is that not all annuities are of the variable sort.

Myth No. 3: Annuities Offer Lower Returns Than Stock Mutual Funds

The returns on an annuity depend on how much risk you structure into it, says Peter Quince, who writes professional education classes for At Your Pace Online.

“The more risk you structure into the annuity, the more the earnings will mimic those in the stock market, both on the upside and on the downside in terms of possible losses,” Quince explained. “It’s a trade-off. Fixed annuities are stodgy – slow and steady. FIAs may cap earnings so that you won’t get the full upside, but they also set a floor for earnings so you can’t suffer losses.”

If security means more to you than the potential of higher returns, a fixed indexed annuity is likely a better bet.

The way Nuss looks at it, fixed annuities have neither the full growth potential of stock funds, nor the downside risk. “They’re all about safety and giving you a reasonable guaranteed return,” he says.

CDs and bonds are a more appropriate yardstick to compare annuities against, Nuss adds. And in that scenario, fixed annuities in particular fare quite well.

Many of Nuss’s conservative clients will invest in bank CDs offering interest rates around 2.5 percent, while a similarly safe fixed-rate, multi-year annuity often provides much higher interest.

“If you’re scared away from annuities, you’re missing out on an opportunity to buy a five-year, fixed-rate annuity that offers fixed interest just like a CD, but on the annuity the interest is about four percent on the highest, five-year rate,” Nuss explained. “That’s four percent interest annually. And if they’re letting it grow and compound, they don’t have to file with the IRS, so it’s tax deferred, not reportable until it’s withdrawn.”

“It’s a significant benefit,” Nuss adds. “And people would never know that if they’re not open to considering an annuity.”

In short, educate yourself, so that you know what you’re getting into and are selecting the right type of annuity to achieve the earnings you’re seeking.

Myth No. 4: Early Surrender Charges Make Annuities Unattractive

Most annuities do have what’s known as surrender periods, and early withdrawal does result in a penalty. Bank CDs also have early withdrawal penalties.

Many financial advisers say such rules surrounding annuities shouldn’t detract from their many benefits. Rather, it’s something to keep in mind when considering whether an annuity is right for you and what type of annuity to sign up for.

“An annuity is meant for money you won’t need for a while,” Nuss explained. “If you’re concerned about the length of the surrender period, look for an annuity with a shorter period.”

If you do find yourself unexpectedly needing the money during the surrender period, there’s a couple of options. Among them is taking a partial withdrawal, typically up to 10 percent of the accumulation value each year, without penalty. (The withdrawal of earnings, however, counts as taxable income.)

Yet another option is to annuitize the contract. In other words, turn it into a stream of income, without penalty.

Overlooked Annuity Benefits

While some criticisms of annuities are valid, many of the detractors fail to mention the benefits annuities provide.

For instance, annuities can guarantee that the payee receives an income for life. No matter how long they live, they will receive their money, notes Barr.

“There are also annuities that allow 10 to 15 percent access each year if needed. And if the annuitant happens to go into a nursing home, the company waives the surrender fee to access the funds,” Barr adds.

The death benefits associated with annuities are also worth keeping in mind, says Cliff Caplan of Neponset Valley Financial Partners in Norwood, Mass.

In the event of the death of the annuity owner, beneficiaries on a variable annuity will never receive less than the sum of any withdrawals and the original investment, even if the value of the annuity has experienced a loss.

“I have personally experienced situations where an annuity owner died as the markets tanked and the death benefit paid to the beneficiaries far exceeded the diminished value of the annuity,” said Caplan.

Of course, there are reasons annuities have a bad reputation. Some annuity products can be complicated, and costly, and their basic transfer-of-risk approach won’t make sense for everyone. But if you shop around and compare options, they can be an extremely powerful retirement tool – so it makes no sense to dismiss them out of hand.

Related Reading:

• How to Create a DIY Pension Plan
• As Interest Rates Rise, Are Savings Accounts and CDs Viable Investments Again?
• Three Myths About Your 401(k)

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