Time To Refinance – But Not Your Home

If you were smart, you have already refinanced your home loan to a lower rate (and if you haven’t, then it’s time to get on the ball and do so), but with interest rates now rising, it’s not likely that refinancing is going to bring the savings that it has in the past. That is, unless you begin to refinancing other aspects of your personal finances.

Rates on a number of different types of insurance policies have been falling with stiffer competition and more people willing to shop around. For example, experts say that term life insurance rates have been falling and are expected to continue to do so through 2006. A similar trend has been seen with car insurance in certain parts of the country.

Most people don’t think about it, but you can refinance your insurance just like you refinance your house mortgage. Depending what your goals are, you can either pay less for the same coverage or pay the same amount of money for better coverage.

How do you go about refinancing your insurance? The same fashion as you would go about refinancing your house, but it usually takes a lot less time and paperwork. Keep an eye on advertisements in your paper. Take an hour to search comparison sites on the Internet and see what prices are being offered that mirror your current policy. If you find a policy that is charging less, you can choose to refinance at a better price or if you like your current insurance company, you can probably negotiate with them to match the competing offer (or at least reduce your current payments). This is because competition is tough and keeping good customers is far more economical than trying to find new ones. Your current agent will do his or her best to provide low rates to keep you if you look like you may be ready to move to another competitor.

You should look into refinancing on a yearly basis on all your different insurance policies (life, car, home, etc). It only takes a few hours of work and can pay off handsomely. Even better, refinancing your insurance is a painless savings in that you don’t have to give anything up to put more money in your pocket.

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5 Responses to Time To Refinance – But Not Your Home

  1. thc says:

    Life insurance premiums are cheaper, not due to competition, but because life expectancies are longer.

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  3. hgstern says:

    Good post, and well-written. I think you glossed over a few key points (no crime in that; don’t need a 15 page post) that one should keep in mind:

    It’s true that, for a given risk (person), life insurance rates have come down substantially over the past few years. As THC notes, mortality plays a part, but it is not the only (or most important) reason. Having said that, though, it does not follow that *your* insurance will be cheaper now than before: underwriting has really stiffened up, and if you’re not the *ideal* height and weight, or you’ve got “a little cholesterol,” or you have a family history of cancer, you may be unpleasantly surprised.

    It never hurts to shop around, of course, but be aware that the on-line quote marts will give you generic rates which don’t take most of these factors into account. And no matter *what* you do, don’t cancel your existing plan until the new one has been approved and you’ve had a chance to look it over.

    Happy New Year!

  4. LSD says:

    Shopping around for better insurance is not “refinancing”. Do you want to refinance your internet connection as well? 😛

    Always a good idea to shop around.

  5. pfadvice says:

    Shopping around for better insurance is not “refinancing

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