Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays Bank.
Here’s a quick tip for saving money on your life insurance policy… Pay the premiums annually if at all possible. Most insurers give you the option of paying monthly, quarterly, semi-annually, or annually. But guess what? Paying more often than once per year typically costs more. While insurers typically don’t disclose the effective annual rate of this additional payment, which is essentially interest, you can figure it out yourself using this calculator.
Take, for example, a $360 term life insurance policy. Let’s assume for the moment that the monthly payment option requires twelve payments of $32. That’s just two bucks extra per month… Totally worth it for the added flexibility, right? Well, if you do the math, that two bucks works out to an APR of 14.3%! That’s a pretty steep price to pay in order to avoid paying your premium up front.
As it turns out, it’s just this sort of billing practice that got Zurich Direct into hot water last summer. As a result, we ended up receiving a whopping $2.52 from the settlement even though we always paid for our policies annually.
- How to Become a Millionaire
- How to Get Out of Debt
- The Best Dollars I've Ever Spent
- How Our Estate Plan is Structured
- How We Paid Our Mortgage In Less than 10 Years
- Money Making Ideas
- How to Manage Your Asset Allocation with Multiple Accounts
- Consumption Smoothing - Save While the Saving's Good
- How to Save on Groceries
- How Much Life Insurance Do You Need?
- Eleven Great Books About Money
- Dave Ramsey is Bad at Math (692)
- Dish Network Customer Service SUCKS (534)
- $8,000 Homebuyer Tax Credit (429)
- Pay Off Mortgage Early or Invest? (424)
- How to Claim the First-Time Homebuyer Tax Credit (352)
- Termite Control: Sentricon vs. Termidor (325)
- How Much Should You Pay a Babysitter? (284)
- Ethanol Blended Gas = Lower Mileage? (272)
- Reduced Credit Limits? Share Your Experience (256)
- $15,000 Homebuyer Tax Credit (242)
- Buying Furniture off the Back of a Truck (227)
- Will Mac OS X Lion Kill Quicken 2007? (191)