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Everyone Should Consider Student Loan Refinancing

Unshackle your life

Unshackle your life

Few opportunities in life will allow you to keep more of your own money year after year with very little work on your part.

You can call your cable company to negotiate a better price.  That can save you $50 bucks or so per month.  But you have to look for new deals every few years and stay on top of the company to make sure they don’t tack on any extras.

Negotiating down a price for a car is another example.  You can potentially save thousands of dollars off the sticker price, but cars go way down in value anyway and you have to rinse and repeat when it’s time to buy another one.

These are both great ways to save money but do require a good amount upfront work and some checking in to make sure you’re not getting fleeced.

But for recent graduates with student loan debt, there is an even better way to create perpetual savings with very little work or maintenance:

Refinance your student loans.

Why You Should Consider Refinancing

Student loans are a big problem in this country.  While student loan interest rates are not nearly as high and murderous as credit card rates, a LOT of people are saddled with student loan debt and the amount of debt is pretty high.  Professional school debt can easily get into six digits (hence, The Broke Professional)

How high?  About $1.3 trillion.  You can even see it go up every second if you have some free time.  Pretty cool.  But also NOT COOL.

The other big issue is that it can take time for many graduates to actually get their careers going.  But lenders really don’t care.  They will give a few months grace period and then you need to start paying.

There also used to be a time when student loan interest rates were really low.  During my undergraduate years in the early 2000’s they hovered around 1-2%.  Now the rates are around 5-7% or even higher depending on the type of loans you take out.

So higher rates and higher balances that affect a large chunk of the population.  This is a problem.

Student loan refinancing is a great potential solution.  While it may not be the final solution for everyone (some value the various government benefits that come with federal loans), every single person with student loan debt needs to look into refinancing.

Refinancing may not be the right option for everyone.  But it doesn’t hurt to get some quotes and find out!

Benefits of Refinancing

Some people are a little confused about what a student loan refinance is.  Really simply, the company you decide to refinance with will send a check to your original lenders and pay off your loans.  You are now a customer of the refinancing company and you have to make payments to them.

Pretty simple, but what are the benefits of moving your debt from one entity to another?  There are many, but the biggest benefit is that you will (most likely) be paying much less in interest payments over the life of the loan.  The bigger the interest rate difference from your original lender and your new lender, the more beneficial refinancing will be for you.

Depending on the interest rate difference and the amount of your balance, you can potentially save a lot of money.

As a real life example, let me walk you through how much I saved with my refinance.  Since my time in school spanned some interest rate changes, I had some loans with lower rates and some with higher rates.

I decided it would be most beneficial to refinance my one loan which had a higher interest rate than the rest and had the largest balance as well.  Let’s do some simple math to check out the savings I received:

Original loan:  $36,667 @6.8% interest

Original term:  25 years

Total payments:  $76,346 ($39,679 interest)

That’s a long time to be in debt and a lot of extra interest to pay.  Now here are the terms of the refinanced loan:

Refinanced loan:  $36,667 @3.45% interest

Refinanced term: 20 years

Total payments:  $50,811 ($14,144 interest)

So over the life of the loan, I would end up saving $25,535 in interest payments!

With the refinanced loan, I had the option of a 5, 10 or 20 year term.  For the sake of the example I showed the 20 year term since the monthly payments were just slightly higher than the original loan.

Simply getting a lower interest rate with pretty much the same monthly payment would save me about $25,000 over the life of the loan!

But I want to get out of debt quick, so I went with the 5 year option since I could handle the increased monthly payment.  Going with this option will save me $36,374 in total payments.  I’m liking the sound of that.

I only had one loan with an interest rate of 6.8%.  Graduates nowadays have multiple loans with interest rates around 6%.  Being able to refinance their entire balance with an interest rate cut in half can produce significant savings.

Another great benefit of going with a new company to refinance your student loans is better customer service.

I’ve dealt with a number of refinance companies and every single one had better customer service than my original lender, whose customer service is almost non-existent.

My original lender would do shady things like apply extra payments towards interest and not the principal, even though I specifically asked them not to.  And it took forever to get a live person on the phone.

Many of these new refinance companies are young and growing, so they put customer service at the forefront of their business plan.  My two favorite companies, SoFi and Earnest, have phenomenal customer service and very user friendly websites.

Who Should I Refinance With?

There are a lot of student loan refinance companies popping up nowadays, but the two that are at the top of the industry and that I highly recommend are Earnest and SoFi.  They are essentially 1 and 1A.

If you’re already convinced and want to get the refinance train moving, click here to get a quote from Earnest, the company that ultimately got my business on my first refinance.  (If you end up getting approved for a refinance by using this link, we both get a $200 bonus)

I also recommend clicking through SoFi, as they have slightly different underwriting standards and you may receive different quotes from either.  (If you use this link and get approved, you will get a $100 bonus)

I would suggest comparing the two and going with the company that gives you the most favorable rate.  They are both very good.

If you still need a little more hand holding, my next post will detail the step by step process of refinancing your student loans and I will tell you why I went with Earnest for my first student loan refinance.

Until then, get some quotes and save some money!


Educating from the Exam Room to the Blogosphere

Blogging is not as easy as most people make it out to be. It takes consistent time and effort to produce a quality blog, let alone one that makes some money.

But the most important thing needed to become a successful blogger is passion for your subject. Dr. Jennifer Lyerly, a fellow optometrist from North Carolina, blogs about various issues in the field of optometry. Her knowledge and passion for the profession is evident from every post she puts up on her blog, Eyedolatry.

I asked Dr Lyerly some questions about her life and blogging career. Read on to learn more about what drives Dr Lyerly to produce consistent quality content for fellow optometrists and anyone looking to learn more about the profession:

Tell me a little about yourself and your career:


I graduated from the Southern College of Optometry in 2011 and started blogging right after graduation. I’ve been working in group private practices since graduating, and I’ve found I really enjoy working with a team of doctors and having a personal relationship with a boss who is also an optometrist. I’m constantly learning from doctors with more experience where I work at Triangle Visions Optometry, and I also feel like I bring something new and insightful to the table as a millennial doctor on the team.

When and why did you start blogging and who is your primary audience?

I was studying to take North Carolina boards, and also organizing my thoughts on patient care for my first job when I decided to write my first blog post. The blog was a great way to think about a topic and work out how I would describe a medical condition or an optics question to a patient. Most readers on my blog are curious patients, wanting to learn more about their eyes. Since I’ve been putting more focus on women’s issues in optometry, I have seen a huge influx of readers that are new graduates and student ODs. My goal is to make the blog informative to people with various levels of education in eyecare, so that an optometrist, a student, and someone completely inexperienced with our profession would all feel like they took away valuable information from a post.

How do you manage your time between blogging and seeing patients?

It’s difficult! My rule is that I never mix blogging with work. At work I see patients and am a doctor only. When I leave the office, I don’t take home patient care so I’m free to work on anything I want. I try to write 1 good quality post a week. More than that, and I just don’t have time to research and edit enough to feel like I’m delivering quality information.

What has been the biggest challenge in your blogging career?

Dealing with criticism has been tough. When you put yourself out there, you’re going to have people who don’t agree with you. I’ve had a surprising number of people criticize my support of daily contact lenses on the blog, or leave a comment meant to insult me or belittle me about “not being a real doctor.” I was even blocked on Facebook for a few months when someone upset about how many posts I’ve done about daily disposable contact lenses (they wear their Biomedics contact lenses 4-5 months at a time and are just fine!!) reported me as a bad URL.

Any negative feedback I get just drives me to want to write better and better articles. The world is largely uninformed about what we do as optometrists and what is true about their eye health, and I feel like my blog gives patients at least one place where they can get true, medically supported information. Not everyone will agree with the science, but that doesn’t mean they don’t need to hear it.

If you could give some advice to your first year optometry school self, what would you tell her?

I was so focused on classroom excellence in school, I didn’t participate in leadership groups as much as I should have. Looking back now, optometry school is truly a place of social connections as much as learning. As a natural introvert, it took me being out of school and having to talk to new people every 20 minutes in patient care to realize that making connections with people isn’t scary or intimidating — it’s actually pretty easy and very rewarding. I’ve almost become an extrovert at this point and life is so much more fun this way!

What are some of the major challenges that young optometrists face nowadays?

Where I practice in North Carolina, the choices of where to work seem to be getting smaller and smaller every year. Our industry is going through major ownership consolidation and I fear that lack of competition and choice for where to work will drive down our salaries and our quality of life as doctors. Negotiating what you want is essential from your very first contract – not just for you, but for every doctor that comes after you. We have to stand up for what our education and skills are worth.

Have you always enjoyed writing?

In elementary school, I wanted to become an author when I grew up. I haven’t written a book (fail), but blog – author has to count for something.

Are there any blogs you visit regularly?

With industry blogs I consistently read Eye See Euphoria, Maino’s Memos, Eyecing on the Cake, Optomly, and of course, The Broke Professional.

Where do you see yourself professionally in 5 years?

I plan to keep practicing, blogging, speaking, and serving the profession of optometry in anyway that I can. I’m passionate about the success of our profession and I am excited about any opportunity I get to make our future brighter. I hope in 5 years I can look back and feel like I’ve been making a difference in our profession, no matter how small the impact is.

Where do you see your blog in 5 years?

I started the blog as a way to supplement my learning, and I can’t picture a time where there isn’t a topic I want to learn more about. But in addition to educational articles, I also want to use the blog to help our profession. I want to work with companies and industry leaders for the next generation of young female ODs to champion the future of our industry. I’m really passionate about making private practice survive in optometry, and embracing social media is the best way for independent doctors to compete with large corporate entities — you need a personal, unique presence and you need to connect with people!

Through the blog and the social media experience I’ve had, I’ve also started a new business with Dr. Glover at Eye See Euphoria where we are offering social media management for exclusively optometrists at Defocus Media. It’s impossible to know what the social media landscape will be in 5 years, but I want to be right there, representing optometry and connecting with other doctors and patients to grow our profession.

What is your favorite book?

This is always a hard question for me — I love reading and there are so many books that have spoken to me. I really love The Bell Jar by Sylvia Plath because I think many young women go through the feelings the main character has in that book — feeling confused about what and who you’re supposed to become and how you’re supposed to do it all, feeling like what you’re creating or delivering to the world is not valued. Knowing other women before me were overwhelmed with expectations from society, their families, and themselves makes me feel more comfortable with imperfection and not being able to do it all.

What do you enjoy doing when you’re not blogging or seeing patients?

Traveling, eating, and dancing at weddings. Being married to my best friend, I feel like we are always planning our next adventure.

Any words of advice for young professionals seeking to make an online presence?

Don’t judge your worth by the number of readers or number of followers you have. Don’t judge your worth by one person’s negative comment. If you look at what you’re doing online, be it blogging or on social media, and you are proud of it, then you are success! And you know what, if you’re producing good content, your readership and followers will grow naturally anyway.

Big thanks to Dr Lyerly for the interview and giving some insight on what it takes to build a successful blog while holding down a full time job.

Her blog is called Eyedolatry.  Check it out for consistent quality information about eye conditions and the field of optometry.


Financial Lessons Learned During a Blizzard

My Sunday/Monday/Tuesday workout

My Sunday/Monday/Tuesday workout

The East Coast is now recovering and digging out from one of the worst blizzards it has seen in years.  In the MD/DC/VA area we got the brunt of it, so digging out has been a process for sure.

While being at home with my family for days was fun, cabin fever started to set in after a while, especially with my 3 year old son.  He begged us to take him to the nearby park which was covered in snow and he absolutely loved it!

It was an interesting and sometimes character building experience trying to dig ourselves out.  I saw the spectrum of humanity out there.  From neighbors helping each other shovel out of their driveways to guys taking selfies of themselves in their clean driveways and not lifting a finger to help others in need right next door.

Shoveling snow is kind of a cathartic experience because things are very quiet and still all around.  And all you’re left with is your thoughts while repetitively shoveling and pushing snow around.

In between thinking about my mortality and wondering if we had enough eggs to last the next few days, I did draw some financial analogies related to the blizzard:

1.  Debt keeps you from moving forward

Seeing the magnitude of the storm when it was finished and how helpless everything looked, I realized that this is what debt can do to your financial life.  If you have debt lying around all around you, it becomes very difficult to just take a step towards financial freedom.

Once you can stop the debt from piling on, the next action step should be to get rid of that crushing debt so you can actually move on and advance with your life.  Which brings me to my next realization:

2.  Large goals are best completed in stages

Once I got my gear on and opened the door to take a look outside, it was incredible to see how much snow there was.  My Corolla was almost completely covered and the mounds of snow in the driveway and on the sidewalk were enormous.  I thought to myself that we’re never going to be able to get out of this.

But once I started working, I just made a goal to clear off certain sections and take breaks every so often.  Before I knew it, I had most of the driveway clean that day and two days later the car is able to get out and the sidewalk is passable.

This concept can be applied to pretty much anything in life, be it paying off debt or starting a new business.  The final goal can seem daunting and even unattainable at first, but if you break it up into smaller goals and work on them consistently, the end goal will become much clearer.

3.  Focus on your own situation and don’t keep up with the Joneses

It’s interesting to see how differently people approach shoveling.  Some perfectly healthy people can’t be bothered and will hire somebody to clean.  Some people are out during the storm itself and to get a head start.  And some people just wait until the plows come by to get started.

People also have different levels of preparation.  Some are using their rickety old shovels that have lasted them for years.  Others are eager to start up their brand new snowblowers.  Everyone has different situations but my philosophy is to do what you can with your situation and help those who need it.

If you were unprepared for this storm, just do what you can and prepare better for the next storm.  Financially, constantly having your eyes towards those who have more will just make you feel worse and affect how you deal with your current situation.

4.  Having a partner helps.  A LOT.

Shoveling snow by yourself is repetitive, boring and time consuming.  I noticed when I had one or two more people helping, all with the same goal, things were just more fun and work got done more effectively.  Even if one of the other people was my 3 year old son with a sand shovel, it was still fun having him out there.

In the same way, I think it’s important to have a partner when it comes to your finances.  This could be an accountability partner, a spouse who is on the same page or just a friend who enjoys talking about finances (I’m taking applications if you’re looking for one.)

There’s a nice synergy that is created when you’re working with someone towards the same goal.  You feed off of each other and new ideas can be found during the journey.

Luckily the forecast is calling for temperatures to be in the mid 40’s this week, so hopefully we will have a lot less snow to contend with this time next week.

Now only if there was an act of God that could evaporate everyone’s student loan debt…


Personal Finance Lessons from a Baby

Anyone who has kids will always remember the firsts.  I know I do.  I will never forget the first time my son looked at me and smiled.  I will never forget the first time I got to hold him in this big scary new world.  And I will, of course, never forget when I put my finger near his little hand and he squeezed it tight.  That’s my favorite thing of all time.

Another reason I will never forget all of those moments is that every other moment is a blur of crying, screaming and sleepless nights.  And that was just me!  Throw in some vomiting, problems with gas and constant laundry, and that sums up the baby rearing experience.  Looking at it this way, new parents are gluttons for punishment.

Personally, I wouldn’t have had it any other way.  Because as time goes on, the baby gets bigger, starts talking and becomes more independent.  As my son is growing up and learning new things, I’m trying to grow and learn myself.

And part of that is taking lessons from the most unlikely of places.  Watching my son grow up from a helpless little baby into the fiercely independent and loving toddler he is today has taught me a lot of things.  And even some things about personal finance.

A great sage once said, “For everything your eyes see, therein lies a lesson.”  Here are some personal finance lessons I’ve learned from having a baby:

1.  You don’t need much.  This is by far the number one thing I’ve been trying to apply in my life.  A baby doesn’t care if you wrap him in a $5 blanket from the thrift store or a $500 blanket from some place that sells $500 blankets.  It just wants to be warm and comfortable.

A baby doesn’t care if you feed him a homemade concoction of peas and carrots or the most expensive organic baby food from Whole Foods.  It just wants to be fed.

And a baby doesn’t care if he wears a hand me down shirt or a $150 shirt.  He just wants to be warm and clothed.  And he’s either going to throw up on it or outgrow it in a month.

The point is, in the end you don’t need that much to be happy or feel secure.  A roof over your head, a warm house, good food and a caring family is all we really need to feel fulfilled.  And that’s a lot more than many people around the world have.

2.  It’s the journey, not the destination.  It is absolutely incredible to see my son learning new things, seemingly every day.  I know that one day he will become a walking, talking human capable of higher thinking, while also being able to go to the bathroom by himself.

But the it’s doing the little things every day that will get him to that point.  Cuddling with him while reading a book while improve his mind.

Taking him to the bathroom for the tenth time that day will eventually allow him to be potty trained (work in progress).

Striking up a conversation with him will produce a babbling brook of incoherent sounds and spittle, but eventually he will be able to talk to me about anything.

He will most likely be able to do everything a normal adult does, but the journey to that point provides the true memories.

Same thing goes for our finances.  While we may have solid goals of having a secure retirement or paying off debt, it’s the everyday things we do that will matter.  It’s always important to keep the end goal in mind, but never forget to enjoy the journey because it will make the end all the more sweeter.

3.  We can’t do it alone.  Despite my son trying to become more and more independent every day, in the end he still depends on his parents.  Whether its getting fed or taking care of a boo-boo (official clinical term), my son needs us when it’s important.

He wants to be independent by picking out his own clothes or taking his own shoes off, but when push comes to shove and he needs real help, he will turn to his parents.

In the same way, we need help when it comes to our finances.  That could mean we all need a financial adviser, but that’s not always the answer.  Sometimes we just need a family member to point out our spending addictions.

Sometimes we need a financially savvy friend to find out how to save some more money.

Sometimes we need a mentor to help us jump start our careers so we can make more money than ever before.

And sometimes we just need to turn to Google to find some answers.

We can’t do it alone, and we don’t need to.  We are more connected than ever in this world, but people still find ways to isolate themselves.  Something as simple as an email invitation to lunch can open up avenues you never knew existed.  Don’t ever be above asking someone for help.

Raising a child can be a harrowing experience, but it’s one filled with ups and downs and everything in between.  Most people think that having kids makes life utterly more complicated, but I have noticed that it couldn’t be simpler.


Diamonds in the Rough Roundup 7/24/2015

Slow time in the sports world for me.  No basketball and no football.  When the ESPY award show was on there were no sports anywhere!  Can’t wait for the NFL season to start.

Just a couple of articles today that made the cut:

Dangers of Earning Extra Money by Eyes on the Dollar:  Making more money is the goal, but it’s also important to be smart about it.  Keeping taxes in mind and giving your new found income a purpose right away is the key.

Shouldn’t The Joneses Be Keeping Up With Us? by Dividend Mantra:  There are people out there that believe getting a fancy car is more important than being able to have free time.  These are the Joneses, and these are unfortunately most Americans out there.  It’s time for people to stop being fooled by marketing and start doing things that bring them closer to their goals.


Diamonds in the Rough Roundup 7/11/15

It’s been a slow slow sports week.  Not much to talk about today except: don’t play with fireworks.  Jason Pierre-Paul, one of the best defensive players on the New York Giants, had to have his index finger amputated because of a fireworks incident.  Not a good thing for a professional athlete.  And he’s only 26 years old.  As a result of the injury, the Giants withdrew their long term contract worth $60 million.  That’s an expensive injury.

Also, today is 7/11.  Get your free slurpee if you like that sort of thing.  Here are some articles which I sort of liked myself:

Behind the Scenes at a Free Financial Seminar by Stacking Benjamins:  Really insightful piece on what exactly goes into those “free” dinner invites we get in the mail every so often.

9 Actions to Take to Trick Yourself into Saving Money by Making Sense of Cents:  Our brains are not wired to save money.  Especially when we have companies marketing to us every second of the day.  With banking being fully electronic nowadays, it’s easy to force yourself into savings.

Is the first $100K the Hardest by Dividend Mantra:  Get ready to be inspired.  Gaining momentum is always the tough part in any endeavor, but once the momentum is there, it’s easy to ride to success.  Jason’s story is a great example.

Preparing Your Home to Sell Quickly and For Top Dollar by Eyes on the Dollar:  Most home buyers will want to buy a house from their first few seconds of seeing it.  That means curb appeal and keeping the home clean are a must.



Diamonds in the Rough Roundup 6/19/15

What a great end to a great NBA playoffs.  It was an NBA Finals with some very interesting storylines, the biggest one being the injuries to Lebron’s two wingmen Kevin Love and Kyrie Irving.  And when Irving was ruled out of the series after Game 1, everyone thought it was all over.  But then Cleveland surprisingly won 2 games in a row with a plodding offense (led by the best player in the world though) and a stifling defense.  It took the Warriors a couple of games to figure it out, but they mixed up their lineup and were able to get three relatively easy wins in a row.  If Lebron was able to will the Cavs to win the series, it would have solidified his legendary status.  But alas, you do need some help to win a title, and it doesn’t make it any easier going up against one of the best offenses the league has ever seen.  It was a fitting conclusion to a dream season for the Warriors and their fans. (Shout out to Lisa Vs The Loans!  Congrats on the win!)

Now only if the Knicks could have a dream season one of these days……(sigh).  Here are some dreamy articles I’ve come across recently:

I Have Big Dreams…and Small Savings.  Help! by Afford Anything:  Nice post about the different ways you can increase your savings incrementally.  Best take home point:  Remember to actually do something with your savings.  Don’t just let it sit in your checking account.  Transfer it to savings, pay off debt or put it in an IRA.  If it’s just staying in your checking account, it will probably be spent.

Why My Emergency Fund is the Bombdiggity by Club Thrifty:  Great article about the importance of emergency funds.  You don’t really notice them when you don’t need the money, but once an emergency happens, you’ll thank your lucky stars that you have some money stashed away.

Leave the Boom and Bust Cycle of Life by Frugaling:  The market goes up.  And the market goes down.  These have been two truths ever since the market has ever existed.  The way the media still can sway people to act a certain way while knowing these two truths is unbelievable.


Diamonds in the Rough Roundup 6/5/15

What in incredible Game 1 of the NBA Finals.  I saw somewhere that it was actually the highest rated Game 1 in NBA Finals history.  Pretty impressive.  The Warriors got off to their usual slow start, but were able to climb back in it with the help of Andre Iguodola off the bench.  It’s a shame that Kyrie Irving got hurt, as he was playing like a superstar that game.  It’s ironic that this might be a repeat of the last time Lebron James was in the NBA Finals with Cleveland.  He had no help then, and his 2 guys who were supposed to help him this time are both injured.  I’m sure the Cavs can win at least one game in the series.  But with Irving hurt, they won’t be able to win more than that.

Here are some articles from superstars in their own right:

12 Ways to be Richer a Year From Now by Good Financial Cents:  Nice list that almost anyone can use to get in a better financial situation.  Not so sure about the whole debt snowball thing, since it does increase your time in debt and interest paid compared to the Avalanche method, but it’s better than nothing.  Which is what most people do.

10 Morning Rituals of Successful Entrepreneurs by Money Mini Blog:  Very interesting infographic with quotes and rituals of some of the wealthiest people on the planet.  I’m convinced of the effectiveness of waking up early.  Be it a workout, some reading or meditation, starting the day off on your own terms can make a huge difference.

Curing your Clown-Like Car Habit by Mr Money Mustache:  An oldie but most certainly a goodie.  Had to re-read this one, especially since my new commute to work will 10 times less than my old one.  Maybe I’ll try to ride a bike to work one day.  Maybe.



Diamonds in the Rough Roundup 5/22/15

I have to say, I was worried about the quality of my beloved NBA the past few years.  But the playoffs have been incredible the past few years, and this year is no exception.  And it’s nice to see guards taking the spotlight for once, as James Harden and Steph Curry are clearly two of the best players in the league.  There’s just something about a great dribbling display leading to an electrifying three pointer that a bull rush drive by Lebron James can never match.  Lebron is still the most impactful player in the league in my opinion, but seeing the little guys make play after play every night is exciting.  The New York Knicks got the 4th pick in the NBA draft, so I’m hoping we can get an exciting player.  We need it.  Here are some electrifying articles I came across recently:

Travel Hacking 101 w/Brad Barrett by Budgets Are Sexy:  An interview with Brad Barrett who blogs at Richmondsavers and is part of a great travel coaching program which I went through myself (it’s awesome.)  Great article for those looking to start doing some travel hacking.

Why My 1 Year Olds Have a Higher Net Worth Than I Do by Budget Blonde:  This post kinda describes my current situation, but with our net worth growing fast year after year, I’m not too worried.  If it goes down one year, then you got something to worry about.

30% Higher Net Worth In Just One Year by Mad Fientist:  A nice and detailed write up of an ongoing experiment showing the effectiveness of using tax advantaged accounts.  Being able to optimally use your 401k, IRA and HSA’s takes a little bit of research, but it is well worth it.  And the Mad Fientist’s website is a great place to learn about it all.


Journey to Life Insurance Part 3: Time to Pay the Piper

The day after getting life insurance.

The day after getting life insurance.


This is the final post in a series of posts chronicling my personal step by step experience with buying life insurance.  Not the most exciting of topics, I know, but I found it helpful reading about others experiences with things such as car buying and signing up for retirement accounts, I thought this might be helpful for some.  This is the last post, so if you need to catch up please refer back to Part 1 and Part 2.  Enjoy the exciting conclusion.

Here’s a Cup

After all the easy online paperwork and phone interviews, it was time to get down and dirty.  Life insurance companies want to make sure you’re not hiding the fact that you have scurvy, so any plan worth its salt will have a health exam as part of it.  Instead of going to one of those soulless lab places where everyone looks just miserable, I was pleasantly surprised that the nurse who I had to schedule with said that she will be coming to my house.  How convenient.  Maybe they also want to make sure we’re not doing anything at home that could risk our lives.

In any case, the very nice nurse came and starting unpacking her stuff.  A blood pressure monitor, syringes, a scale (which my son absolutely loved), and some papers I had to sign. But first things first, she handed me a cup to fill up which I assumed to be with my beverage of choice.  Nope, I just had to take it to the bathroom.

After that always awkward exchange, she had me verify some information, and sign my name on a couple of pages.  A couple of blood pressure measurements followed, and then she proceeded to stick me with various needles.  I’m one of those guys that won’t look at my arm while blood is being drawn, so this was probably the worst part of the whole process.  But thankfully it didn’t last too long.

After a couple of more papers were signed, we were all done and she told me that the results should be ready in a few days and someone from the company will contact me soon.  The whole health test took about 20 minutes from start to finish, which was great since I blocked off my whole morning for it.  Time to watch SportsCenter!

Wait and See

I can’t stress enough how helpful my rep from Quotacy was.  He emailed me to make sure everything went well with the health check, and said he would be in contact with the company to find out when things would be finalized.  Excellent service the whole way.

I received a couple of emails the next few days from the company saying my file is being reviewed and they will get update me.  Nice to be kept in the loop.  After about 3 weeks from the date of the health exam, I finally got the email saying my policy was final, and the last step was in front of me: giving them the monies.

After reviewing some forms to make sure everything was in order, I had to pay the premium to finalize the policy.  Nothing is finalized without some money after all.  A side note, I opted to pay the annual premium up front, because it did save me a good $50 or so than if I had gone the monthly route.  Gotta save where ever you can.

And that was it.  I got an email saying my payment was received and then a few days later I got an email saying my policy was active.  The email had the website to login to review the policy.  I saved that email so I can refer to it if ever needed.  Hopefully we will never have to call on that insurance plan, but it does feel really good that if the unthinkable ever happened to me, my wife and son would be just fine financially.

So after going through this journey with me, I hope you will come to the same conclusion I did:  If you have anyone who is even remotely dependent on you, and especially if you are currently in good health, get a term life insurance policy.  It’s relatively cheap (literally the same amount of money as getting a coffee a couple of times a week) and will give great peace of mind.  Because isn’t peace of mind why we’re trying to get money in the first place?