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Slow Carb Diet: How to Avoid Going Bat-**** Crazy

I received an email recently, asking “what kinds of things are you eating so that you don’t go bat-**** crazy?”

First, some background.

On January 2, 2011, I started Tim Ferriss’s Slow Carb Diet and, as of 2/18/2011, I have lost 30 pounds. The first 11 or so were water weight, but I’ve still been losing 4-5 pounds per week. This diet has a few—but only a few—rules.

Eat nothing white. That means no sugar(including fructose), no flour, no potatoes, no rice(even brown), and no milk(or any dairy). Beer is white.
Breakfast is high-protein.
Cheat day once a week. On cheat day, there are no rules after breakfast.
Meals should consist of 40% protein, 30% vegetables and 30% legumes(beans or lentils).
If you get hungry between meals, you didn’t eat enough at the last meal.

That’s it. The rules are simple and don’t require that I refer back to the book for anything.

Here is a typical day for me on this diet:

For breakfast most mornings, I have 3 eggs and 2-3 sausage links. I bought brown-and-serve sausages so this takes 10 minutes to cook in the morning.

On the way to work, I have a diet soda if we have any in the house. If not, I skip it. I like pop, but I’ve broken my caffeine addiction completely.

For lunch, I will either have leftovers from the night before or some stir-fry with beans and whatever protein is convenient. I’ve been keeping pre-cooked brats(wurst, not kid) or polish sausages as a convenience food.

Several times a week, I make some stir-fry. I use a basic, flexible recipe.

Chop whatever vegetables are on hand. We usually have onions, broccoli, a variety of peppers, and mushrooms. If I have celery, asparagus, or almost any other vegetable. Lettuce works poorly in a stir-fry.
Put some oil in a hot pan. I prefer sesame oil, but I’m not picky. I’ll use whatever oil we have on hand.
Cook the vegetables, stirring constantly. Cook them in the order of how long they take to cook. Onions are usually first. Celery tends to be last.. While they are cooking, I sometimes sprinkle ginger powder over the top.
If you are getting sick of eating beans, toss them into the stir-fry, cooked. They mash and disintegrate, giving you the benefit and some flavor, without the mouth-feel.
When the vegetables are cooked to your satisfaction, put them in a bowl. They will keep in the refrigerator for a few days.

I tend to cook the meat separately, as that lets me vary the meal more. I’ll make some chicken or steak ready to toss in the stir-fry before I re-heat it.

I vary the seasonings, vegetables, and oil to get different flavors I rarely make the same stir-fry twice. The real trick to keeping the food satisfying is to experiment with seasonings. They make a huge difference between bland and yummy. Seasonings can make or break a meal all by themselves.

If I don’t have any stir-fry or leftovers, I’ll bring some salad and a polish sausage. Most salad dressing is sugar-based, so I either go light on the dressing, or use balsamic vinegar. I try to avoid doing this more than once every couple of weeks. It’s boring and doesn’t taste that great. It’s okay, but that’s all.

I try to always have cooked beans or lentils in the refrigerator. They provide a significant part of my calorie intake. Beans are kind of a necessity. Vegetables taste better, but are a low-calorie, bulky food. You can’t stay full all day on nothing but lettuce. Beans get old. I’ll usually toss a few spoonfuls of salsa to change the taste. When I cook lentils, sometimes, I’ll cook it in beef broth with fried onions and garlic to make a tasty change.

For dinner, I have whatever vegetables we are cooking for the kids, a scoop of beans, and a protein that usually isn’t cooked for the family.

The protein source varies based on whatever was on sale when we went grocery shopping. It can be steak, chicken, or anything else. This week, we bought 16 chicken drumsticks. We spread them out on a cookie sheet and seasoned them 3 different ways, just for variety. Some got garlic salt, some got Italian seasoning, and some got a Greek rub. After an hour in a 350 degree oven, we had a delicious meal.

If I feel a need for a snack, or a craving for sweets, I just take a spoonful of peanut butter. It helps.

Exercise

I’m not doing any major form of exercise. I wanted to test the diet on its own merits, first. What I am doing is some timed exercises shortly before and 90 minutes after I eat, when I remember. The exercises are resistance-based and 60-90 seconds in duration. The purpose is to crank up my metabolism before the food gets introduced into my body, and then keep it up and running for a while afterward.

I use a mid-level elastic rehab strap, doubled-over twice. I do 75 chest extensions about 5 minutes before I eat. Most days, I forget to do them again 90 minutes later. There are any number of other exercises that would work, including air squats or push-ups.

Supplements

I am not your doctor. In fact, I am not a doctor in any capacity. Similarly, I am not a nutritionist, a dietitian, or even a board-certified snake-oil salesman. I have no qualifications here, in any way, shape or form. Follow this at your own risk.

I take 5 supplements.

Policosanal. This is an herbal supplement that is supposed to help with cholesterol, which is a helpful thing to do when you are on a low-carb, high-protein diet. More importantly, a side effect is weight loss. Hurray for helpful side effects!

Alpha-lipoic Acid(ALA). This is an antioxidant that helps your body produce vitamins C and E. It is also supposed to inhibit triglyceride and fat storage. To quote from the book, “ALA helps you store the carbohydrates you ea in your liver as opposed to in fat.”

Decaffeinated Green Tea Extract. This inhibits your body’s ability to store carbs as fat and it accelerates fat cell death. The second bit means it should help prevent the rebounding so many dieters experience.

Garlic Extract. This assists with cholesterol management and the inhibition of fat regain.

B Complex. I take a B complex vitamin with vitamin C. The B vitamins help balance out some of the things the rest of the supplement regimen does to cellular metabolism while giving your overall metabolism a boost.

I take the whole mess in the morning and again before bed. Shortly before lunch and dinner, I take the ALA, green tea extract and garlic extract.

Ice

As a pure body-hack, I ice my upper back every night. I have an ice-pack sheet that I place on my upper back for 30-45 minutes each night before bed. This lowers my core body temperature, forcing my body to work harder to maintain 98.6 degrees. That burns calories. An additional benefit: getting cold makes you tired, which helps with my chronic insomnia.

This combination of factors has resulted in my losing an average of .7 pounds per day, without meaningful exercise. It’s a violation of a number traditional dieting principles, but it’s working. Is everything I’m doing necessary? Useful? Possibly not. Over the next few months, I’m going to be experimenting with dropping individual pieces of the plan, to see if my rate of loss drops for any of it.

For now, it’s working, and doing so at a rate I like. Dieting usually sucks, because the results are so slow. This is much more satisfying.

Money Problems: Day 9 – Health Insurance

Finance

Today, I am continuing the series, Money Problems: 30 Days to Perfect Finances. The series will consist of 30 things you can do in one setting to perfect your finances. It’s not a system to magically make your debt disappear. Instead, it is a path to understanding where you are, where you want to be, and–most importantly–how to bridge the gap.

I’m not running the series in 30 consecutive days. That’s not my schedule. Also, I think that talking about the same thing for 30 days straight will bore both of us. Instead, it will run roughly once a week. To make sure you don’t miss a post, please take a moment to subscribe, either by email or rss.

On this, Day 9, we’re going to talk about health insurance.

The first thing to understand is that there is a difference between health care and health insurance. Health care is what the doctors do. Health insurance is when the insurance companies pay for it. Or don’t. They are not the same thing. I won’t be addressing who should get care or who should be paying for insurance. That’s political and I try to avoid that here.

I won’t spend much time discussing health care as a “right”. It’s not. If a right requires somebody to actively do something for you, it’s not a right. It can’t be. The logical conclusion of requiring somebody to provide you care gets to be a intellectual exercise to be completed elsewhere. That, too, is political.

What I will discuss are the components of a health insurance plan is the U.S. and what to watch out for when planning your insurance coverage.

Premium

This is the amount you pay for your health insurance. For people with employer-sponsored insurance, this is usually paid out of each paycheck, deducted pre-tax. For those with an individual plan, it’s almost always a monthly payment. There generally isn’t much you can do to lower this much. Most employers offer, at most, 2-3 options, ranging from a good plan for a high premium to “we’ll mail you leeches if we think you’re dying” for a much smaller price.

Copay

This is a flat fee paid out of pocket when you get medical care. Depending on your plan and the type of visit, this could be $10-50 or higher. For example, with a plan I participated in recently, the copay was $15 for an office visit, $25 for urgent care, and $100 for an emergency room visit. The office visit and urgent care visit were billed the same amount to the insurance company, so the price difference was entirely arbitrary. Currently, all health insurance plans are required to pay preventative care visits at 100%, meaning there is no copay.

Coinsurance

This is the payment split between the insurance company and the insured. 80/20 is a common split for plans with coinsurance. That means the insurance company will pay just 80% of the bill, until the insured has paid the entire out-of-pocket maximum. After that, the coverage is 100%.

Deductible

This is the amount that an insurance company won’t pay. It has to be covered by the insured before the insurance company does anything. For example, if you have an insurance plan with a $25 copay, 80/20 coinsurance and a $100 deductible, and paying for an office visit costing $600 would look something like this: $25 for the copay, followed by $75 to max out the copay, leaving $500 to be split 80/20 or $400 paid by the insurance company and $100 paid by the insured. That office visit would cost $200 out-of-pocket. The next identical visit would be cheaper because the deductible is annual and doesn’t get paid per incident. That one would cost $115 out of pocket.

HSA

Health Savings Account. For people with a high-deductible plan–that is, a plan with a deductible of at least $1200 in 2011–they are eligible to open an HSA. This is a savings account dedicated to paying medical expenses, excluding OTC medication. It can be used for vision, dental, or medical care. Payroll contributions are taken pre-tax, which makes it a more affordable way to afford major medical expenses. Unfortunately, there are annual contribution limits. Currently $3050 for an individual account and $6150 for a family account. HSAs do not expire, so you can contribute now, and save the money for medical expenses after retirement.

FSA

Flexible Spending Account. This is similar to an HSA, but the contributed funds evaporate at the end of the year. It’s “use it or you’re screwed” plan.

Individual Plans

If you’re not getting health insurance through your employer or another group, you are on an individual plan. These cost more because they A) don’t benefit from the economy of scale presented by getting 50 or 100 or 1000 people on the same plan, and B) you don’t have an employer subsidizing your premium.

Employer-Sponsored Plans

If your employer provides health insurance, you have an employer-sponsored plan. Possibly the fastest way to correct problems with the health insurance industry would be to make individual plan premiums tax-deductible, while eliminating that deduction for employers and letting insurance companies work across state lines. That would eliminate the mutated pseudo-market we have right now, and force the insurance companies to compete for your business. Honest competition is the most sure way to increase efficiency and service while reducing costs. It beats “one payer” or “socialized” care which add overhead to the process and hide the premiums in increased taxes.

Open Enrollment

Most employer-sponsored plans only allow you to make changes at a specific time of the year, unless you have a “life changing event”, like marriage, divorce, death, or children.

Explanation of Benefits

After you use your health insurance, the company will send an EOB, showing you what was billed, what they paid, and what you’ll be responsible for. It’s fascinating to see the difference between what gets billed by the doctor and what the insurance company is willing to pay, by contract. You should read this, to at least understand what you are consuming and how much is getting paid for you.

Maximum Dollar Limit

If your insured care cost more than your maximum dollar limit, or maximum annual limit, the insurance company stops paying. this was supposed to be going away under the Patient Protection and Affordable Care ~~Fraud~~ Act. Unfortunately, if an insurance company offers a crap plan, they have been allowed to apply for waivers based on the fact that they offer a crap plan. The deciding factor in whether the waiver is granted seems to be the amount of the political contributions the insurance company has made to the correct political entities, but maybe I’m just bitter.

Out-Of-Pocket Maximum

This is the most you will have to pay directly with coinsurance. After you pay this amount, the insurance company will cover 100% of expenses, subject to the maximum limit.

COBRA

The Consolidated Omnibus Budget Reconciliation Act of 1985 is, in short, an opportunity to continue your employer-sponsored health plan–minus the subsidy–after you have left the employer. It’s expensive, but it keeps you covered, and will eliminate issue with pre-existing conditions when you get a new plan.

Catastrophic Health Insurance

This is an extremely-high-deductible plan, typically $10,000 or more. For the people who can’t afford coverage, this is insurance-treated-as-insurance. It’s coverage when you absolutely need it, not when you feel a bit ill. $10,000 isn’t a bankruptcy-level bill, while $100,000 usually is. This plan prevent medical bankruptcy for a small monthly fee. For the people who got screwed by a PPAACFA waiver, it bridges the gap between a plan that’s useful for minor things and protection when something goes really wrong.

Things to Watch Out For When Applying For Health Insurance

Now that we’ve looked at the terms you need to understand, we’re going to talk about some things to check before deciding what coverage is right for you.

Individual, Individual + 1, Individual + Family

Do you need coverage for yourself, or yourself and your family? If you and your spouse are both working, make sure to run the math for every possible combination that will cover everyone. Is it cheaper to have one of you cover yourself and the kids, while the other just gets an individual plan?

Maximum annual coverage

It’s really easy to blow through a $3000 annual maximum. If you’ve got a low annual max, look into a supplemental catastrophic plan.

Primary and Secondary Coverage

For years, my wife paid for insurance that covered herself and the kids, while I covered myself. When we were expecting brat #3, I added her to my insurance plan, without having her cancel hers. When the bill came, my insurance plan covered the coinsurance and deductible, which saved us thousands of dollars when the baby was born.

Pre-Existing Conditions

If you’ve got a pre-existing condition, it can be difficult to get insurance if you don’t already have coverage. This makes sense. It prevents someone from corrupting the idea of insurance by waiting until something goes really wrong before getting a plan. Without this, all of the insurance companies would be bankrupt in a year. This is one of the biggest benefits of COBRA. It’s a short-term bridge plan that eliminates the idea of a pre-exisiting condition deadbeat. If you’ve got insurance, you can transfer to a different plan. If you don’t, you can’t.

Homework

Your homework today is to get a copy of the details of your health insurance and look up all of the above terms and situations. How well are you covered? Did anything surprise you?

Sunday Roundup: It’s Push-Up Time

Life

I Knew Pushups Would Pay Off Someday — Image by reid.gilman via Flickr

It’s the end of a month, so it’s time to announce my new 30 Day Project. Last February, in 22 days, I went from having my abs cramp after doing 15 push-ups to doing a set of 100. Yes, really.

The problem is that the push-ups weren’t perfect. Funny things happen to your body when you are doing 100 push-ups. It’s hard to tell what your body is doing. I had good form for the first 80, but after that, my body wasn’t perfectly straight. I looked like a typical second grader in gym class. But I did it. They were push-ups.

I haven’t done a push-up since.

In March, I am going to get myself back up to 100 push-ups, only this time, I will only be doing perfect push-ups.

Here’s the plan, based on what worked last year:

This weekend, I established my baseline. I did as many push-ups as I could, until the point of failure. Failure for this purpose is defined as either my form faltering or me collapsing. I went until I couldn’t hold my body straight.

Starting on the first, I will be doing 5 sets of push-ups, twice a day.

Set 1: One half of my baseline. Starting from 24 push-ups, this set will be 12 push-ups. As I progress, this set will never be more than 20 push-ups. It is the warm-up set, after all.

Sets 2-4: ¾ of my baseline, so 18 to start.

Set 5: Go to failure. Once again, failure is defined as faulty from. This will establish my baseline for the next session.

If I don’t progress for 3 days, I will take a day off to recover and–given previous experience–come back with some serious improvement.

This is a self-correcting progression. If I can’t meet the previous day’s baseline, my last set will be lower, which will lower the baseline for the following session.

An interesting question I have is how it will affect my diet. I haven’t been exercising at all, to see how well the slow carb diet does on it’s own. Now, I’m going to be adding an aggressive exercise plan on top of it. A plan that involves a bit of muscle bulking. I’m guessing that my weight loss will slow down a lot, but I will shed inches like mad. I will be tracking my progression, and my weight and measurements. The graphs should be fun.

30 Day Project Update

I am on the Slow Carb Diet. At the end of the month, I’ll see what the results were and decide if it’s worth continuing. For those who don’t know, the Slow Carb Diet involves cutting out potatoes, rice, flour, sugar, and dairy in all their forms. My meals consist of 40% proteins, 30% vegetables, and 30% legumes(beans or lentils). There is no calorie counting, just some specific rules, accompanied by a timed supplement regimen and some timed exercises to manipulate my metabolism. The supplements are NOT effedrin-based diet pills, or, in fact, uppers of any kind. There is also a weekly cheat day, to cut the impulse to cheat and to avoid letting my body go into famine mode.

I’m measuring two metrics, my weight and the total inches of my waist , hips, biceps, and thighs. Between the two, I should have an accurate assessment of my progress.

Weight: I have lost 33 pounds since January 2nd! That’s 3 pounds since last week. Only 9 more to meet my goal for February. Oh wait. I won’t be hitting it this month.

Total Inches: I have lost 17 inches in the same time frame, down half an inch since last week.

Giveaway

I’ve got some codes for H&R Block Premium Online. It’s federal only and the state return costs an extra $35, but that’s still a screaming deal. Premium handles small business and investment tax issues. If you want to get it, leave a comment saying so. First come, first serve, until I’m out of codes.

Best Posts

Yes, I Am Cheap has a post about growing up poor.

Public Service Announcement: Liquidation sales are rarely good deals. When one store in a chain closes, the profitable merchandise always gets shipped to another store. The rest of it will often get marked up, in anticipation of people shutting off their critical thinking skills in the face of big “On Sale” signs.

I’ve found a new life goal: underground glowworm cave tubing. Wow.

OpenLibrary is offering up 80,000 ebooks to borrow, for free. 10,000 of them are still in copyright. I need a kindle.

LRN Timewarp

This is where I review the posts I wrote a year ago. Did you miss them then?

A few years ago, I sold a truck(on payments) to a friend, who promptly quit paying me and disappeared. I ended up playing repossessing the truck.

There was also a story about how I convinced two big companies that collecting on me for a bill of more than $800 wasn’t worth the effort. It was good, because I didn’t make the call.

Carnivals I’ve Rocked and Guest Posts I’ve Rolled

Slow Carb Diet: How to Avoid Going Bat-**** Crazy was included in the Festival of Frugality.

Three Alternatives to a Budget was included in the Totally Money Carnival.

Protect your home was included in the Carnival of Personal Finance.

Budgets Are Sexy ran my post, Side Hustle Series: I’m a Gun Permit Instructor. I forgot to link back to this, last week.

Prairie EcoThrifter ran my post, The Luxury of Vacation for the Yakezie Blog Swap.

Thank you! If I missed anyone, please let me know.

Yakezie Blog Swap

Eric hosted the Yakezie Blog Swap, which is a bunch of bloggers writing on the same topic and sharing the posts with each other. Here is his list of the participants this round.

I wrote about my journey to become a DJ at Beating Broke.

Beating Broke wrote about shoe shopping at Narrow Bridge.

Barbara Friedberg got a really nice couch and shared the experience at Wealth Informatics.

Suba doesn’t think the rent is too damn high, in fact, Suba thinks it is worth it and shares at Barbara Friedberg Personal Finance.

Mr. and Mrs. BP spent a lot when they got a dog. Read about it at 101 Centavos.

101 Centavos went nuts on an anniversary, but you know what that can get you… Read about it at Broke Professionals.

Latisha Styles’ post at Bucksome Boomer is I Spent How Much?! My Birthday Trip to the Bahamas.

Kay Lynn spent her heart out on a new car with all the bells and whistles and you can read about it at Financial Success for Young Adults.

Derek got a sweet new digital camera and tells us about it at My Personal Finance Journey.

Jacob has splurged a couple of times on travel and outdoor gear and has no regrets and shares the experiences at My Life and Finances.

Miss T. likes to splurge on travel. We have something in common. The difference? She wrote about it at Live Real Now.

Jason is a fan of the luxury of vacation. You can read about it at the Prairie EcoThrifter.

Squirrelers went to Europe for three weeks. Totally worth it! Read about it at Money Sanity.

Money Sanity likes good champagne. I can’t judge, I like good Scotch. Read about why at Squirrelers.

Melissa took 10 days and took the trip of a lifetime to visit a friend in China. Read about it at The Saved Quarter.

The Saved Quarter bought a Blendtec blender. Yes, the blender from “will it blend.” The story is at Mom’s Plan. (In case you were wondering, this blender can blend anything. Well, anything but Chuck Norris.)

Get More Out of Live Real, Now

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You can subscribe by RSS and get the posts in your favorite news reader. I prefer Google Reader.

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Have a great week!

Money Problems – Day 8: Insurance

Finance

On this, Day 8, we’re going to talk about insurance.

What is insurance? Insurance is, quite simply a bet with your insurance company. You give them money on the assumption that something bad is going to happen to whatever you are insuring. After all, if you pay $10,000 for a life insurance policy and fail to die, the insurance company wins.

A more traditional definition would be something along the line of giving money to your insurance company so they will pay for any bad things that happen to your stuff. How do they make money paying to fix or replace anything that breaks, dies, or spontaneously combusts? Actuary tables. Huh? The insurance company sets a price for to insure—for example—your car. That price is based on the statistical likelihood of you mucking it up, based on your age, your gender, your driving history, and even the type of car you are insuring. What happens if a meteor falls on your car? That would shoot the actuary table to bits, but it doesn’t matter. They spread the risk across all of their customers and—statistically—the price is right.

What kinds of insurance should you get?

Homeowner’s Insurance

For most people, their home is, by far, the largest single purchase they will ever make. If your home is destroyed, by fire, tornado, or angry leprechauns, it’s gone, unless you have it insured. Without insurance, that $100, or 200, or 500 thousand dollars will be lost, and that’s not even counting the contents of your home.

Homeowner’s insurance can be expensive. One way to keep the cost down is to raise your deductible. If you’ve got a $1500 emergency fund, you can afford to have a $1000 deductible. That’s the part of your claim that the insurance company won’t cover. It also means that if you have less than $1000 worth of damage, the insurance company won’t pay anything.

You can get optional riders on your homeowner’s insurance, if you have special circumstances. You can get additional coverage for jewelry, firearms, computer equipment, furs, among other things. You base policy will cover some of this, but if you have a lot of any of that, you should look into the extra coverage.

Auto Insurance

Car insurance is required in most states. That’s because the kind caretakers in our governments, don’t want anyone able to hit you car without being able to pay for the damage they caused. To my mind, I think it would be more effective to just make whacking someone’s car without paying for it a felony. If someone is a careful driver or has the money to self-insure, more power to them.

Auto insurance comes with options like separate glass coverage, collision, total coverage (comprehensive), or just liability. Liability insurance is what you put on cheap, crappy cars. It will only pay for the damage you do to someone else.

Rental

I’ve never had rental insurance. The last time I rented, I could fit everything I owned in the back of a pickup truck with a small trailer, and it could all be replaced for $100. Heck, I had the couch I was conceived on. Err. Ignore that bit.

Almost everything you can get homeowner’s insurance to cover will also cover renter’s insurance, except for the building. It’s not your building, so it’s not your job to replace it.

Life Insurance

If you care about your family, you need life insurance. This is the money that will be used to replace your income if you die. I am insured to about 5 times my annual salary. If that money gets used to pay off the last of the debt, it will be enough to supplement my wife’s income and support my family almost until the kids are in college. You should be sure to have enough to cover any family debt, and bridge the gap between your surviving family’s income and their expenses. At a minimum. Better, you’ll have enough to pay for college and a comfortable living.

Life insurance comes in two varieties: whole and term. Whole life…sucks. It’s expensive and overrated. The sales-weasels pushing it will tell you that it builds value over time, but it’s usually only about 2%. It’s a lousy investment. You’re far better off to get a term life policy and sock the price difference in a mutual fund that’s earning a 5-6% return.

Term life is insurance that is only good for 5, 10, or 20 years, then the policy evaporates. If you live, the money was wasted at the end of the term. The fact that it’s a bad bet makes it far more affordable than whole life. It doesn’t pretend to be an investment; it’s just insurance. Pure and simple

Personal Liability Umbrella

An umbrella policy is lawsuit insurance. If someone trips and hurts themselves in your yard, and decides to sue, this will pay your legal bills. If you get sued for almost anything that was not deliberate(by you!) or business related, this policy can be used to cover the bill.

If you call your insurance company to get an umbrella policy, they will force you to raise the limits on your homeowner’s and auto insurance. Generally, those limits will be raised to $500,000, and the umbrella coverage will be there to pick up any costs beyond the new limit.

A little-known secret about umbrella policies: They set the practical limit of a lawsuit against you. Most ambulance chasers know better than to sue you for 10 million dollars if you only have a policy to cover 1 million. They will never see the other 9 million, so why bother? They’ll go for what they know they can get.

The flipside to that is that you should not talk about your umbrella policy. Having a million dollars in insurance is a sign of “deep pockets”. It’s a sign that it’s worthwhile to sue you. You don’t want to look extra sue-able, so keep it quiet.

Insurance is a great way to protect yourself if something bad happens. Today, you should take a look at your policies and see where you may have gaps in coverage, or where you may be paying too much.

Choosing the Best Term Life Insurance

Finance

This is a guest post.

Term life insurance is arguably the simplest form of life insurance offered by companies today. It is a dramatically different policy than universal or whole life plans. The latter tend to charge policyholders much higher premiums over the lifetime of their policies. However, whole life plans remain in effect for the lifetime of the insured, until death occurs or the policy is cancelled. On the other hand, term life insurance policies last for a fixed length of time, and the periods usually range from five, 10, 15, 20, or 30 years. With a term plan, the premiums you will pay are much lower, and if you pass away during the term of your policy, your beneficiaries will receive a full death benefit from your plan.

Types

Term life insurance generally falls into one of five different categories. Level, decreasing, renewable, return of premium, and convertible are the five kinds of term life insurance policies that companies typically offer their customers. The best method for selecting term life insurance is to consider your amount available to spend along with your age in order to decide which variety is the best fit for you and your family.

If you choose level term insurance, you will get a predetermined dollar amount of coverage for a set length of time. You will enjoy low overhead and you will have peace of mind knowing that your premiums will never fluctuate with the vicissitudes of the market. The predictability of a level term plan is perhaps the greatest feature of this type. Another type of term life insurance is decreasing term life insurance. It is strikingly similar to a level plan, and the only real variation is the amount of money your beneficiaries will receive if you die. With a decreasing term plan, the amount of your death benefit decreases over time. A good reason for choosing decreasing term life insurance is having small children. You know that you need the money more now while they are young, so paying less for life insurance in the short term is a good idea.

A convertible term plan is a hybrid. It lets a policyholder change their existing term life policy into a whole life plan without facing hefty penalties for doing so. Another option, a return of premium term life insurance plan, is very similar to level term plans. The major dividing factor between the two is that a return of premium plan actually gives back all the money paid in premiums to the beneficiaries if the insured dies during the term of the policy. It’s best to pick this plan if you want coverage for your family but you death is highly unlikely to occur during the term of your policy.

How to Qualify?

The uniting thread between most term life plans is that you are required to fill out a formal application first, and then you must pass a physical exam so that you may qualify for life insurance coverage. Additionally, most life insurance plans force you to repeat the exam each time you choose to renew your policy. However, if you choose a type of term life insurance called renewable term life insurance, you are allowed to bypass this stipulation entirely, so you can score some massive savings on premiums you will pay in the future. It’s best to choose this type of term life insurance if you are already older, or if you have health conditions that you expect to get dramatically worse during the term of your plan.

During the medical exam, your physician will take a full and extensive medical history from you. This is so that the insurance company can get a complete and accurate picture of your health in order to assign you the right amount of premium for your plan. Next, the insurance company will consider your motor vehicle record. This is so the insurance company can get a feel for whether you pose a big enough risk on the road to have a high likelihood of an accident that may cause your death and end your policy.

Then, your doctor may ask you other health and lifestyle questions if the life insurance company requires him or her to do so. You will need Attending Physician Statements (APS) that certify your answers and the results of your medical tests were true and accurate to the best of your knowledge. You will also need Medical Information Bureau (MIB) reports for your application as well as corporate documents if you are applying for business coverage. After you have submitted all of these materials, your insurance company should be able to render a decision about whether they will award you a term life insurance policy, as well as how much your annual premiums will cost you.

Colorado Insurance Laws: Do you have the Right Coverage?

Finance

Car insurance is mandatory in Colorado. Colorado law on car insurance changed in 2003 when the state changed to a fault-based system from a no-fault system. Even more requirements were added in 2009 for drivers, namely, a mandatory $5,000 in medical payments coverage.

Many of the other changes made to Colorado car insurance requirements were made to help prevent claim abuses and reduce the cost of insurance premiums for drivers in the city. The ‘tort’ or fault-based system requires that fault must be established before a claim is paid by an insurance company.

According to data released by the National Association of Insurance Commissioners, the average cost of auto insurance in Colorado was $777. This is way below the national average of $841 and far below the most expensive state, New Jersey, which had an average expenditure of $1,254 in annual premiums.

Colorado Insurance requirements

The state requires all drivers to have liability coverage at the least. This ensures that the other party and their property will be compensated in an accident that is your fault. According to insurance-comparison site, CoverHound, the minimum coverage for car insurance in Colorado should include:

Bodily injury coverage of $25,000 for each person involved in the accident
Bodily injury coverage of at least $50,000 for each accident the motorist is involved in
Property damage coverage of $15,000 for each accident

Additional car insurance

Having insurance coverage meeting the minimum requirements of the law in Colorado will save you from being arrested for inadequate insurance. However, your insurance may not provide you with adequate coverage in case of an accident. Therefore, it’s important to consider the following car insurance options.

Uninsured/Underinsured motorist coverage

While car insurance is a mandatory in Colorado, several drivers still drive without auto insurance. Figures released by the Insurance Research Council estimate that 16.2 percent of motorists in the state are uninsured. This is slightly above the 12.6 percent national average. The scary thing about not having this coverage is you never know when you’re going to get in an accident, let alone an accident with someone who’s underinsured, or uninsured altogether. As you can probably guess, if someone isn’t willing to pay an insurance premium to protect their financial means, they probably don’t have much financial means to protect in the first place, thus leaving you destitute in the event of an accident, regardless of fault. Bottom line: uninsured/underinsured motorist coverage protects your expenses in this situation.

Medical Payments Coverage

Due to the aforementioned legislation passed in 2009, insurance providers are required to offer motorists $5,000 in med pay coverage as part of their insurance coverage. This is offered as part of every car insurance policy, and can be adjusted in $1,000 increments. You however, have the choice of opting out, but you have to send a rejection form. You can also choose to up your coverage to as much as $100,000.

Collision coverage

Liability coverage ensures that the other party’s expenses are covered in the event you cause an accident, but what about damage to your own car? Collision coverage takes care of any damages to your car regardless of who’s at fault. The insurance also covers you for damage caused by hitting other objects with your car, such as a tree, or streetlight.

Comprehensive cover

This ensures that you are covered for any damage that is caused to your car that doesn’t involve a collision (e.g. fire, falling objects, flood and hail). It also provides cover for the loss of your car through theft and other perils such as explosions.

If you purchase your car through a loan, your lender may require you to take out a comprehensive coverage policy. You can choose to have a higher deductible in order to reduce the cost of your premium.

Cost of violations

There are various penalties set by the state to ensure that motorists have adequate insurance. You may be penalized for failing to provide evidence of insurance or for purchasing inadequate insurance. Some of the penalties and fines include:

A minimum fine of $500 for violations
The addition of 4 points to your driver’s license
The suspension of your license for up to 8 months
Community service

It is important to understand your state laws and your own financial situation when choosing insurance. Your policy should not only meet state law requirements but your personal requirements as well. If it doesn’t, then what’s the point of having it in the first place?

This is a guest post.

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