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6 Money Saving Tips for your Various insurance policies

6 Money Saving Tips for your Various insurance policies

As a matter of fact, life insurance, also known as the term or life assurance might be a bit complicated. That’s why I’ve compiled a list of 6 tips and information about different types of life insurance that can help you save money on your life insurance and to help you find the right one for your needs.

When you pass on, your family can take out life insurance money to cope up with the financial burden that you might leave behind, like medical bills, mortgage payments, childcare payments or car lease payments.

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1. Whole Life Insurance

When it comes to whole life insurance, it covers the policy holder’s entire life, and the insurance company will be liable to pay a lump sum of money when you die. This insurance type will pay your beneficiaries in cash after your death. Usually, the whole life insurance policy is expensive and you will have to pay the premium until the age of 70. On the other hand, term insurance is cheaper, as it’s just for a fixed term only. The cash taken out depends on the type of policy you’re buying.

2. Level Term Life Insurance

Now comes the level term life assurance, meaning the beneficiary will get a lump sum payment if the policy holder dies during the fixed term. Just be clear that this policy doesn’t pay if the policyholder dies after the fixed term has ended. The insurance company guarantees the payments, which remains fixed throughout the policy term. Such life insurance policies are being used by people with an interest-only mortgage – in which the mortgage amount remains fixed all through the term period.

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3. Decreasing Term Insurance

With decreasing term insurance, the insurer pays out the lump sum in case of death within the policy term. During the policy holder’s lifetime, the actual amount diminishes, and there’s no cash-in value at one time. Such life insurance policies are being used by those with a repayment mortgage – in which the outstanding mortgage decreases throughout the entire mortgage life.

4. Single or Joint Life Insurance

There are two types of coverages; single life insurance or joint life insurance. When it comes to the single life assurance policy, it’s cheaper, but you have to keep in mind your individual needs. On the other hand, the joint life insurance policy covers both you and your partner or child care payments when your non-working spouse dies. Although, the joint policies look good, don’t forget to get the quotes for single policies as well because it’s inexpensive and maybe cover both of you.

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5. Critical Illness

When you plan to buy an insurance policy, don’t forget to check that it is covering for critical illness. It’s an additional benefit that most of the life insurance companies offer. The insurer is liable to pay a lump sum of money if you’re diagnosed with heart attack, cancer, stroke or sclerosis. No doubt, the addition of critical illness to your life assurance will benefit you more in the long run, and you can save money on life insurance. But it’s also significant to calculate the added cost against the advantage of lump sum payment when you or your partner is out of work. It’s a good money-saving tip to buy a policy that covers both life and critical illness instead of paying out for separate insurances. The vital part is to check out the level of critical illness that the insurance cover as some policies include limited range such as cancer, in most cases.

6. Waiver of Premium

Another way to save money is by waiver of premium. It is the time when you’re unable to work due to critical illness, and the insurance company makes payments on your behalf for a set period. You can overlook this cost as it is added to your life assurance policy.

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Last Updated on July 16, 2019

6 Effective Ways to Enhance Your Problem Solving Skills

6 Effective Ways to Enhance Your Problem Solving Skills

Have you ever thought of yourself as a problem solver? I’m guessing not. But in reality, we are constantly solving problems. And the better our problem solving skills are, the easier our lives are.

Problems arise in many shapes and forms. They can be mundane, everyday problems, or larger more complex problems:

What to have for dinner tonight?

Which route to take to work?

How to fix a project that’s running behind schedule?

How to change from an uninspiring job to a career you’re really passionate about?

Every day, you’ll be faced with at least one problem to solve. But it gets easier when you realize that problems are simply choices. There’s nothing ‘scary’ about them other than having to make a decision.

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No matter what job you’re in, where you live, who your partner is, how many friends you have, you will be judged on your ability to solve problems. Because problems equal hassles for everyone concerned. And people don’t like hassle. So the more problems you can solve, the less hassle all-round, the happier people are with you. Everyone wins.

Why Are Problem Solving Skills Important?

Problem is something hard to understand or accomplish or deal with. It can be a task, a situation, or even a person. Problem solving involves methods and skills to find the best solutions to problems.

Problem solving is important because we all have decisions to make, and questions to answer in our lives. Amazing people like Eleanor Roosevelt, Steve Jobs, Mahatma Gandhi and Martin Luther King Jr., are all great problems solvers. Good parents, teachers, doctors and waiters all have to be good at solving different sort of problems as well.

Problem solving skills are for our everyday lives.

How to Enhance Problem Solving Skills

Most people believe that you have to be very intelligent in order to be a good problem solver, but that’s not true.

You don’t have to be super smart to be a problem solver, you just need practice.

When you understand the different steps to solve a problem, you’ll be able to come up with great solutions.

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1. Focus on the Solution, Not the Problem

Neuroscientists have proven that your brain cannot find solutions if you focus on the problem.[1] This is because when you focus on the problem, you’re effectively feeding ‘negativity,’ which in turn activates negative emotions in the brain. These emotions block potential solutions.

I’m not saying you should ‘ignore the problem,’ instead, try to remain calm. It helps to first, acknowledge the problem; and then, move your focus to a solution-oriented mindset where you keep fixed on what the ‘answer’ could be, rather than lingering on ‘what went wrong’ and ‘who’s fault it is’.

2. Adapt 5 Whys to Clearly Define the Problem

5 Whys is a problem solving framework to help you get to the root of a problem.

By repeatedly asking the question “why” on a problem, you can dig into the root cause of a problem, and that’s how you can find the best solution to tackle the root problem once and for all. And it can go deeper than just asking why for five times.

For example:

If the problem is “always late to work”…

  • Why am I late to work?
    I always click the snooze button and just want to go on sleeping.
  • Why do I want to go on sleeping?
    I feel so tired in the morning.
  • Why do I feel tired in the morning?
    I slept late the night before, that’s why.
  • Why did I sleep late?
    I wasn’t sleepy after drinking coffee, and I just kept scrolling my Facebook feed and somehow I couldn’t stop.
  • Why did I drink coffee?
    Because I was too sleepy at work in the afternoon, not having enough sleep the night before.

So there you see, if you didn’t try to dig out the root of the problem, you may just set a few more alarms and have it beep every five minutes in the morning. But in fact, the problem you need to solve is to quit Facebook surfing endlessly at night so you’ll feel more energetic in the day time, and you won’t even need coffee.

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3. Simplify Things

As human beings, we have a tendency to make things more complicated than they need to be! Try simplifying your problem by generalizing it.

Remove all the details and go back to the basics. Try looking for a really easy, obvious solution – you might be surprised at the results! And we all know that it’s often the simple things that are the most productive.

4. List out as Many Solutions as Possible

Try to come up with ‘ALL POSSIBLE SOLUTIONS’ – even if they seem ridiculous at first. It’s important you keep an open mind to boost creative thinking, which can trigger potential solutions.

Coming from 10 years in the corporate advertising industry, it is drummed into you that ‘No idea is a bad idea’ and this aids creative thinking in brainstorms and other problem-solving techniques.

Whatever you do, do not ridicule yourself for coming up with ‘stupid solutions’ as it’s often the crazy ideas that trigger other more viable solutions.

5. Think Laterally

Change the ‘direction’ of your thoughts by thinking laterally. Pay attention to the saying,

‘You cannot dig a hole in a different place by digging it deeper.”

Try to change your approach and look at things in a new way. You can try flipping your objective around and looking for a solution that is the polar opposite!

Even if it feels silly, a fresh and unique approach usually stimulates a fresh solution.

6. Use Language That Creates Possibility

Lead your thinking with phrases like ‘what if…’ and ‘imagine if…’ These terms open up our brains to think creatively and encourage solutions.

Avoid closed, negative language such as ‘I don’t think…’ or ‘But this is not right…’.

The Bottom Line

There’s nothing scary about a problem when you start to adapt my advice.

Try not to view problems as ‘scary’ things! If you think about what a problem really is, it’s really just feedback on your current situation.

Every problem is telling you that something is not currently working and that you need to find a new way around it.

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So try to approach problems neutrally – without any judgment. Practice focusing on defining a problem, keep calm and not to make things too complicated.

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Featured photo credit: Unsplash via unsplash.com

Reference

[1] Planet of Success: Problem vs Solution Focused Thinking

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