A: When looking to save money on insurance policies, it is important to invest time to shop around. It is also important to understand that the cost of the premium is not the only factor to be considered – quality of service, quick response to claims and financial soundness are all important factors to consider.
Some key factors which will reduce the cost of your insurance include as follows:
1. SHOP AROUND - Shopping around for insurance will take some time, but could save you a good sum of money.
2. COMPARE - When comparing companies, have your current policy handy when calling so you can compare them. If you do find a better policy, make absolutely certain that your new policy is in effect before dropping your old one.
3. MULTIPLE POLICIES - Use the same insurer for multiple policies as some insurance companies take 5 to 15 percent off your premium if you buy two or more policies from them. Make certain this combined price is lower than buying the different coverages from different companies.
4. STAY WITH THE SAME INSURER - If you have kept your coverage with a company for several years, you may receive a special discount for being a long-term policyholder.
5. GET YOUR DISCOUNTS - Make sure you get all the discounts you may qualify for. For example, on Auto insurance, check on discounts for safety and security features. On household insurance, you may receive a discount if your home has an alarm system, smoke detector and other security features.
6. RAISE YOUR DEDUCTIBLE - Deductibles are the amount of money you have to pay toward a loss before your insurance company starts to pay a claim, according to the terms of your policy. The higher your deductible, the more money you can save on your premiums.
7. MAINTAIN A GOOD CREDIT RECORD - Establishing a solid credit history can cut your insurance costs. To protect your credit standing, pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible.

Kim Diamond is a writer for <A HREF="http://www.moneyadvicepro.com">Money Advice Pro</a> which offers extensive information on money matters including credit cards, loans, <A HREF="http://www.moneyadvicepro.com/mortgages">mortgages</a>, insurance and more. show bio

A: If I understand your question correctly, one important way of saving money is to have ownership of a whole life insurance policy. The whole life policy has a cash value feature that builds up over time tax-free.

I was recently talking to a colleague of mind who has over $60,000 built up in the cash value feature of his whole life policy. This money will continue to build up tax free and if he ever decides to use it, he can borrow it from his policy. What makes this type of borrowing significant is that he doesn't ever have to pay it back. When he passes away, the amount borrowed would just be subtracted from the proceeds that will be sent to his beneficiaries.

While whole life insurance should not be considered as an investment, keep in mind that the life insurance company guarantees that a certain interest rate be paid regardless of the economic condition and once again it build up tax-free.

I hope this answers your question. If not, let me know.

My life's work is highlighted by thirty-six years as a therapist and business-financial consultant. My focus is on how an emphasis on personal growth impacts an individual's financial status. In addition, I believe that focusing on personal growth should be a continuous and progressive effort throughout one's lifetime. show bio