According to law and economics insurance is a type of risk management principally
exercised to circumvent the risk of potential loss. A company selling the insurance is
known as insurer. It has become a lucrative business around the world. Insurance rates,
which are used to look for the amount of premium, may consist of company to company.
An uncomplicated example is a life insurance policy. A person pays a great amount of
premiums to the insurer. When he dies a predefined amount is inclined to his family.
Types of Insurance
Nothing is predictable on this dangerous planet. Any accident can happen or any disease
can attack us. So, we should be prepared for it. There are various types of insurance
policies focusing different fields of life.
Various insurers offer health insurance plans. If the insured person is injured due to
accident or is sick then the medical expenses are paid by the insurer. There is a lawful
indenture between the insurer and the insured person.
Insurance intended to disburse the expenses related to dental care is called dental
insurance. Dental insurance helps people to cope with the pecuniary hardships caused by
sudden dental costs.
The insurance purchased for cars, trucks, and all other auto mobiles is called auto
insurance or automobile insurance. The principal benefit of car insurance is the provision
of protection against the losses occurred due to traffic accidents. If an insured vehicle is
damaged as a result of accident, the repairing costs are paid by insurer. Auto insurance
companies also provide replacements, if the vehicle is totally destroyed. It is obligatory in
many countries to purchase automobile insurance. One can choose the right car insurance
by comparing auto insurance quotes provided by different companies.
If your insured pet is injured or suffering from illness, pet insurance will pay the
veterinary expenses. Some pet insurance policies are also designed to pay if the insured
pet dies, is lost or stolen. Pet insurance is mostly available in developed countries.
Insurance which is planned to tackle financial and other potential losses while travelling
within your country or internationally is called travel insurance. Travel insurance mostly
hedge against the risks like theft, loss, delayed baggage, emergency evacuation, damage
to personal possessions, legal assistance, accidental death, overseas funeral expenses etc.
In life insurance there is a contract between insured and insurer. According to that
contract if the insured person dies the insurer will pay an amount of money to his family.
In return the insured person will pay premium to insurer. There are two types of life
insurance, protection policies and investment policies. Another life based insurance is
term life insurance. The insurance coverage is provided for a limited time period. After
that period, its insured choice that he want to drop the policy or cotinue indemnity by
paying premiums for next term.
Many insurers are providing their services. Some of the well-known insurance companies
are state farm insurance, allstate insurance, farmers insurance and progressive insurance.
Travel Insurance - How To Get The Best
Value Travel Insurance
If you are an occasional traveler you'll probably buy your insurance from the travel agent.
But if you travel more than twice a year, it is much more cost effective to have one
insurance lasting all year round, than buying one every time you travel.
Think ahead, plan ahead. Annual travel insurance easily pays for itself with just a couple
of trips. But not all insurances are worth the same and as always cheapest is not
necessarily the best. More on this later.
Annual travel insurance is not compulsory but it gives you the peace of mind case of
illness and loss or damage to property and many other events. Where is the best place to
buy annual travel insurance?
1. Your bank is probably the first place you'll try. Banks have in recent times become
highly competitive and in order to retain your business, may offer better rates. For
example my bank has upgraded my checking account to a premium account and for that I
pay $20 per month.
As a result I get several privileges including free, worldwide, comprehensive travel
insurance. But here is the best part ... I get all this free travel insurance not just for myself
but also for any member of my family traveling with me including my parents and
I said free because I am already getting other benefits which are worth a lot more than
$20 per month if I were to buy them individually. I also save a lot of time as I never have
to look around for insurance. So don't ignore your bank.
2. Credit card companies also offer similar insurances, with some added advantages. In
case of theft or loss of your credit card, they will supply you with an emergency one,
often within a few hours.
In addition to travel insurance offers, there is another advantage in checking your credit
card company's terms. If you book your travel using your credit card, pretty much all card
companies give excellent cover against many of the things that can go wrong.
Some credit card companies also have specialist travel departments which not only give
you travel discounts but also give you even better protection, i.e. better travel insurance
and at a much lower cost. But note that all insurance offers exclude you making a claims,
for the same item, to multiple sources even if you do have multiple insurance cover.
For example, let's say you have bought travel insurance separately and you have bought
your travel ticket using your credit card. If your luggage is lost, you can almost certainly
make a claim to either of the two sources but not to both at the same time.
The reason is that the insurance companies have suffered massive fraud in recent years.
Allowing multiple claims simply encourages fraudsters to have multiple insurances and
make multiple false claims.
For example, they can take an already damaged suitcase on a long journey knowing that
it will fall apart. They can then claim damage and loss of property from multiple insurers.
3. Insurance companies are a popular and obvious source for annual travel insurance. If
you drive a car or have home insurance get a quote from your insurance company.
Remember, because you are already a customer, your car insurance often entitles you to a
very good discount.
Here's a tip: if they don't give you a competitive insurance, tell them that you will be
looking else where for a good package. Let them know you will be looking for a package
that includes great home insurance, excellent travel insurance and also good car insurance.
Listen, fear of loss WILL make them bend over backwards for you and if they don't?
Here's another tip: When you talk to any other source to get your competitive travel
insurance, make sure you mention your other assets that you could be insuring with them,
such as your car, home, home contents, etc.
This won't work with travel companies but works absolutely beautifully with most
insurance companies. I have done it many times and saved myself thousands of dollars,
yes thousands, over the last few years.
The insurance industry is massively competitive. For once, this works in favor of the
"little guy" (you and me), so let's use it.
4. Certain types of home insurance may also give annual travel cover. Do look into pretty
much any insurance cover you have. Some home insurance policies include some forms
of travel cover including loss or damage to your property while away from home.
Tip: even if you live with your parents, ask them to check their policy for you. You will
be amazed to see that even "your" property is covered while away from home.
Just one word of caution: do not assume what is covered or the level cover. If you are not
sure just ask the insurer. If the cover they describe seems even better than what you
expected based on the policy document, then do ask them to put their clarification in
Why? When any major loss occurs, the insurer will send a local expert to assess the
damage. These guys are called loss adjustors. Their job is to save money for the
insurance company. And I tell you from bitter personal experience, they take no prisoners.
They will screw you down to the ground, if you don't get things in clear black and white
writing. Just do it. It takes minutes to request clarification in writing but can save you
thousands of dollars when you have one of these mean loss adjustors arguing with you
over the policy.
5. You can also buy last minute travel insurance from travel agents and airlines at the
airport. Expect to be taken advantage of, heavily! Needless to say, this is one of your
most expensive options. Just avoid ending up with this option, see to your insurance long
before you need to travel.
Now here's the thing. Travel insurance policies are not all identical. As well as
considering price, you absolutely must read the terms and conditions carefully. For
example, the upper age limit of some insurance companies may vary.
Some companies may limit the number of annual trips, whilst others may have no limit at
all. Look, most travel insurance policies cover a range of events and claims. But as they
say, the devil is in the detail.
The problem you will definitely face with some really cheap policies from unknown and
possibly disreputable companies is what they put in the fine print. You know what I'm
talking about? ... all those tiny little statements they put on the back of the form? Or if
you are buying insurance online (and you should), notice all those pages of really small
text they ask you to agree to?
Well, that's where they bury lots of little conditions and limitations. Most people don't
read all the terms. Do yourself a huge favor and on this occasion, do read it all. If the
insurance policy terms are full of "weasel words" or complex language, just move on and
do not buy.
All insurance companies are quick to point out how many millions you can claim in
"total", in case of a serious accident. But they all limit the amount per item within your
claim. So claims for loss of cash will be capped and so will claims for electronic devices,
This means that with the cheaper policies you will have a really low limit. For example, if
you claim for a mobile phone and an MP3 player, you may find that the limit on personal
electronics is not enough to even pay for "one" of those devices, let alone both. Don't
wait for an unfortunate event to show you the flaws in a dirt cheap policy. That is the
worst time to find out and it is a time when you need the most help.
What must all policies cover?
1. Loss or damage to property and cash
2. Flight delays or cancellation
5. Your expenses when an event ocurs
6. Your potential liability to other people
7. Legal services
In comparison to your total costs, annual travel insurance is only a very small item. If you
are covered for any eventuality, you'll have less to worry about, which will translate to
more relaxation and enjoyment.
Top 5 Mistakes People Make When
Getting Business Insurance
This might come as a surprise to some, but getting the right insurance for your business
might be one of the most important decisions you'll make as a business owner. The
consequences of inadequate coverage, or no coverage, could be devastating. There is a
whole world of things that can happen to you and your business. Not protecting yourself
and your business with the right insurance could cost you in so many ways.
That's why engaging in a process of obtaining business insurance right for you and your
company is so important. Do you know what general commercial liability insurance is?
Well, if you don't, then it's just another reason why doing it right is so important. Not
doing it right might cost you when you need help the most -- during crisis. It's why
people get insurance. It's why smart business people get smart business insurance.
Doing it right essentially means avoiding some common mistakes made when trying to
get the best insurance policy for your business. Knowing what some of these mistakes are,
and avoiding them in the future, will help you in your quest to simply make the right
business decision when it comes to insurance.
Top 5 Mistakes When Getting Business Insurance:
1. Discounting the importance of business insurance
Business people of all types, whether it be CEO's of large business conglomerates, or
even someone just working out of their home office, have their own set of reasons for
getting insurance specifically for their business. But not all business people necessarily
think this way. Some think it might be too costly. Some think it might not be necessary .
Some may even think that they're covered by other insurance policies that they have for
their property or for themselves.
Not having the insurance specifically tailored for your business often comes as a result of
simply not thinking that it's necessary. But it is. Take general commercial liability
insurance, for example. This kind of insurance protects businesses from the costs of
lawsuits resulting from basic damages done to people or property that have even the
slightest contact with what you do. Not having this coverage when someone decides to
throw a lawsuit at you, even if frivolous, could cost you in terms of money and reputation.
2. Not knowing the basic issues
It's nice to think that insurance is just insurance, but it isn't. Would you get car insurance
for you house? Would you get life insurance for your healthcare? Of course you wouldn't.
Yes, some of the issues involved in business insurance are similar to other forms of
insurance. A good policy will, for example, protect your assets in case they get stolen. It
will also protect you if bad weather destroys your business property. These are
straightforward insurance issues for your business. But don't be fooled into believing that
they're the only insurance issues for your business.
For example, take general commercial liability insurance. Some business owners might
not even know what liability insurance actually is. It's the insurance that protects you
from the financial costs resulting from a lawsuit from somebody who claims they or their
property has been hurt or injured as a result of the way your business conducted itself.
General commercial liability insurance is the kind of insurance those companies engaging
in commercial activities get to protect themselves because people hurt themselves on
their premises or one of their products did damage to someone's property. Being
knowledgeable about these kinds of things will most certainly help you get the right
3. Not getting insurance early enough
There are two things that can happen to you if you don't get insurance for your business
early enough. The obvious one is that you'll need it before you get it, and you'll be stuck
with paying for the damages from a storm or a lawsuit yourself. The other thing that can
happen is that you will not have a budget for your start-up for the proper insurance, so
you'll get stuck with inadequate coverage. That's the last thing you want to happen.
Therefore, to avoid it, thinking about insurance as early as possible, even at the business
plan stage, will help you create the budget you need to get you adequately covered for all
4. Getting the wrong kind of insurance provider
Perhaps the most tempting option for someone seeking business insurance is to get it
through insurance companies they're already doing business with. So, for example, you
like how your house is covered, and who's covering it, so you'll seek to extend that
coverage to your business, too.
The reason this is inadvisable, or should at least be looked at very carefully, is that your
property insurance provider might simply not have the kind of experience with the kind
of insurance you need for your business.
For example, if general commercial liability is what your particular business is in need of,
even if a provider carries that kind of insurance, they may simply not have enough
developed expertise to know what's right for your particular needs. Ideally, only those
companies and agents who have dealt with your kind of business before can help your
kind of business get you adequately covered for your particular situation.
5. Getting the wrong kind of coverage
Following from the risk of getting the wrong insurance provider, a mistake to avoid is
getting the wrong kind of coverage. Ultimately, you're the person in charge of making the
right business decisions for your company. You're the best person suited to look out for
your own interests. No one else is. That's why it's incumbent upon you to make sure
you've got the right coverage for you and your situation.
As much of the above already suggests, delegating these decisions is important. Yet, in
the end, it's you who has to decide if you have the right kind of coverage for your
business. After going through the entire process, collecting all the information, and
talking to the right people, it's you who makes the decision. Make sure it's the right one
for your business and where you want to take it.
Tips For Getting The Best Auto Insurance
If you are like most automobile owners, you have probably shopped for auto insurance at
least once in your lifetime. And like most of those people, you may have wondered
whether there was really anything that you can do to lower the price of your insurance.
Well, the good news for you is that there are certain steps you can take to lower your auto
insurance premium. Some of the information provided in this article may seem obvious
or be viewed as common knowledge by some people, but we hope that you are able to
take away at least a couple pieces of information that will help you lower your annual
auto insurance premium. If you can, then we have accomplished our goal!
Auto insurance companies generally take into account several factors when determining
your rate, such as driving record, geographical location, vehicle model, coverage limits,
vehicle safety features/anti-theft devices, operator discounts, prior insurance, and age.
(And in some states and with some companies--sex, marital status, where the vehicle is
kept at night, and credit score are also factors) While many of these factors are difficult,
if not impossible, to change, there are still some relatively simply steps you can take to
The 11 steps you can take to lower your auto insurance premium are:
(Note: we have tried to list the steps from the most obvious to the least obvious)
1.) Needless to say, try to avoid being involved in accidents or receiving moving
violations by driving defensively and obeying all traffic laws--This is by far the most
important way to reduce your auto insurance premium (plus it is safe and smart!).
2.) If you already own a registered vehicle, make sure to keep your insurance current,
without a lapse in coverage, since many insurance companies provide much better rates
to individuals who already have current insurance and have an established history of
insurance coverage. Note: If you have had a lapse in insurance on a registered vehicle, we
recommend getting insurance coverage as soon as possible and THEN do more shopping
for better rates. Since you will have re-established your insurance, you will now be
(PRESTO!) an insured motorist and most likely able to secure a better insurance rate
immediately with another company.
3.) If you have an anti-theft device on your vehicle, make sure to let your insurance
company know about it. If you do not have an anti-theft device already installed, consider
adding one if you have comprehensive coverage on your vehicle. Insurance companies
generally offer discounts for anti-theft devices from 5% to 20%, or more, of your
comprehensive coverage premium, depending on the type of anti-theft device. Vehicle
recovery devices (e.g., Lo-Jack or On-Star) generally provide the biggest discount, with
automatic anti-theft devices (i.e., those that arm themselves) probably being second on
the list, and passive anti-theft devices (i.e., those that you must arm) and window glass
etching or ignition shut-off mechanisms probably providing less of a discount. Of course,
before installing an anti-theft device you will probably want to compare the savings you
will receive by adding it to the total cost of installation. Depending on the cost of
installation, it may not be cost-effective to install it.
4.) Check with your insurer to find out whether they offer discounts for attending a
defensive driving course. These courses may normally be taken by drivers of all ages.
Discounts vary by state and from company to company, but by paying a small fee and
spending a few hours of your time for a defensive driving course, you may be able to
save yourself approximately 5% to 10% or 15% of your TOTAL insurance premium.
Note: If you are over age 55, ask about a special "Mature Driving Course" or "55-Alive
Driving Course" discount. Also, if there are multiple drivers on your policy, ask whether
you can receive a larger discount if all of you take the course--some companies will offer
larger discounts, some won't, but if you ask, you can at least decide which driver/s on
your policy should take the course to maximize your discount.
5.) For youthful operators (generally considered to be drivers under the age of 25), make
sure you ask the insurer what discounts they may be eligible for. This may seem obvious,
but it is amazing how many people miss out on significant savings because they forget to
ask about specific discounts for younger drivers. Driver's Ed or Driver's Training and
Good Student discounts are the most common types of discounts for youthful operators,
but always ask if other discounts may apply.
6.) Always notify your insurance company when you have changes that may be beneficial
to you. For instance, if you were single and are now married, make sure to let the insurer
know. If you used to commute a far distance to work, but now have a shorter commute or
work out of your home or are retired, you will most likely be eligible for a lower rate. If
you used to park your car in your driveway or on the street and now park it in an enclosed
or covered garage or shed, you may get a lower rate. As a basic rule of thumb, if it seems
to you that you are less of a risk due to some change in your life, chances are your
insurance company will think the same thing and give you a lower rate.
7.) Check rates for higher Bodily Injury (BI) limits. That's right, HIGHER limits! Believe
it or not, it may be substantially cheaper for you to have limits for BI coverage of 50/100
or 100/300 than it is to have the state minimum coverage. One of the reasons for this odd
phenomenon is that insurance companies consider you to be less of a risk if you are the
type of individual who would be conscientious enough to have higher limits of BI
coverage. Insurance companies have shown statistically that drivers who have higher BI
limits are, overall, better risks and less likely to be involved in accidents or losses.
Therefore, you can insert yourself into this group of drivers that is viewed more favorably
by your company by carrying higher BI limits. Note: If you currently carry lower BI
limits, your insurance company may not immediately rate for the change--you may have
to wait until the next renewal to see a price change, or, in some cases, you may have to
increase your BI limits and then shop for other insurance so that companies give you
"credit" for your higher limits.
8.) Consider taking full coverage off of that older vehicle that is paid for. Many, many
people carry full coverage on an older-model vehicle they own that may only be worth a
couple thousand dollars. Even if they have a total loss of their vehicle, they may only
receive a small amount of money for their vehicle after the deductible is taken into
account. Yet, they may be paying several hundreds of dollars extra every year for full
coverage. To save money, compare what you would receive for your vehicle if you had a
total loss to what it costs to carry full coverage, and then make an educated decision.
Note: Taking full coverage off of an older vehicle probably makes the most sense when
the drivers of the vehicle have a good driving record, since they are even less likely than
the average person to have an accident and file a claim.
9.) If your credit score has recently improved, contact your insurance company to find out
whether they will re-run your credit score to possibly give you a lower rate. Most auto
insurance companies now use credit in one form or another to accurately rate a policy.
Whatever your personal opinion is of this practice, it is the standard method of operation
for most auto insurance companies. (Note: There are states that have made laws against
use of credit for auto insurance rating purposes. In these states, this step will not help
you.) Because your credit score is a MAJOR factor with some companies, an
improvement in your credit may save you a LOT of money, but only if you request that
they re-check it).
10.) Check on how much it would cost to add comprehensive coverage, collision
coverage, or both to your vehicle. Surprisingly, some companies actually offer lower
rates if you have comprehensive, collision, or both, than they do for liability-only policies.
This is definitely counter-intuitve, but it is based on the same principle mentioned above
regarding higher BI limits--the insurance company may view you more favorably (as far
as risk is concerned) if you are an individual who would at least carry more than the basic
coverage on your automobile. So, when you shop for quotes on a vehicle, you may want
to check what the difference in price would be between liaiblity coverage, liability plus
comprehensive coverage, and liability plus comprehensive and collision coverage.
11.) Lastly, periodically contact your insurance company to see whether they may be able
to place you with one of their underwriting companies that is designed for "better" drivers
("better" according to your insurer's rating factors--they are not judging your "goodness"
or "character" for this!). Normally, insurance companies (particularly the larger
companies) have multiple underwriting companies (subsidiary companies) that specialize
in underwriting different categories of drivers based on the company's risk assessment of
you. If you are not in the insurer's "best" underwriting company (reserved for their "best"
risks), you always have room for improvement with that company, and by simply asking
to be considered to be placed in one of the underwriting companies for "better" drivers,
you may be able to save yourself a LOT of money over the years. Note: You may only
have a real chance of being placed in a better underwriting company if your driving
record has improved dramatically over the last couple or several years or if, in the states
where credit may be used, your credit score has improved. Either or both of these
improvements may give you leverage with the insurance company to request that their
underwriters review your policy for placement with a better underwriting company.
How To Get Low Cost Health Insurance
For those who don't know, health insurance is simply the coverage of medical claims of
an individual, against the medical costs. Like many others you may not be able to afford
an expensive insurance policy - but you can eliminate all the frills you don't need and get
the low cost health insurance you want and still be adequately covered. Health insurance,
as with any kind of insurance today, whether individual, personal, business or family
health insurance, is always a gamble. You're gambling that you'll take out more than you
are paying in and your health insurance company is gambling they will pay out less.
You want to know what to look for in any type of good insurance. If you have always had
a health insurance benefit where you've worked and especially if you were a state or
federal employee and now find you have to buy your own, you may not be able to afford
the level of coverage you used to have. Finding good low cost health insurance today is
easier than most people think.
To start, shopping for free health insurance quotes online is the easiest and best way to
find low cost health insurance coverage. If you have any permanent health problems,
such as diabetes, or have had cancer at any time in your family history, your monthly cost
could easily be more than your house and car payment combined, but there are many
different good insurance plans available today in the US.
The cold hard facts are the older you get the more important your health insurance policy
becomes; this isn't to say that you should not be concerned about your insurance when
you're younger. In case your doctor decides that something is an absolute medical
necessity and it's not covered under your current policy, the insurance company may
exercise its discretion in paying for it, but don't hold your breath. Many report they were
eventually covered yet many more people get turned down.
One of the best ways to find low cost insurance is to get free health insurance quotes
online. You can generally get very fast quotes and you want to compare several
companies, as they will all have different criteria. This will be the fastest way to find low
Most importantly, you want a health insurance provider or company that has a good track
record for paying without fighting you on every little detail. Your local agents may only
be able to offer what they have currently available and not be able to offer you what's
best for both your pocketbook and your health.
The death rate in any given year for someone without insurance is twenty-five per cent
higher than for someone with insurance so you want to make sure you get the best
coverage you can get at the lowest cost as soon as possible. Heart-attack victims who
don't have insurance are less likely to be able to get angioplasty, which is often the
treatment of choice. People who have pneumonia who don't have insurance are less likely
to receive initial or follow-up x-rays or necessary consultations.
In general because people who are uninsured are sicker than the rest of us because they
can't afford proper medical care, they can't get better jobs, and because they can't get
better jobs they can't afford insurance, and because they can't afford insurance they get
Although it does increase your risk, one way to lower your insurance costs is to set a
higher deductible; if you're in good health you'll like come out ahead, barring an
unforeseen event such as an accident, etc. Keeping yourself in better health will help you
with less health insurance claims. All the insurance companies have to be very
competitive because it's so quick and easy to compare them with the other competing
Children without any insurance are less likely to receive proper medical attention for
serious injuries, for recurrent ear infections, or for asthma for example and you want to
avoid having to face a $100,000 open heart surgery without having any insurance.
So taking out insurance with higher deductibles and spending a little time online
comparing at least five or more companies will make it more likely that you'll find the
best low cost insurance. There are many different health plans so make sure you get an
understanding of all the low cost health insurance policies that are available from each
company. Cheap or low cost insurance does mean a lower price and in some cases lower
quality, but the price may be more important to some than the quality of the health plan.
You don't want to pay for more than you need but you want to consider any possible
future health events you might encounter too.
Finding good, hopefully cheap, low cost insurance without giving up quality does not
simply mean looking for the lowest premium but it means fully understanding all of the
costs that will be involved in your policy. And finding the best health insurance is easy to
do online, whether you're shopping for long-term or short term health insurance from
California, Texas or Florida.
With the rise of medical insurance costs today, most people look for low cost health
insurance premiums that will ensure quality medical attention at the time of need, but at a
price they can simply afford. Make sure to keep in mind that with low cost insurance
options, you'll need to compromise somewhat on the variety of services covered. Proceed
surely but carefully.
Guide To Help You Get The Best Online
Online insurance is rapidly taking over the world, replacing the old traditional measures
which in the past seemed to be the right way for obtaining insurance. Online insurance is
growing, as IT is becoming increasingly important and outsourcing is being seen as a
sensible option to deal with the challenges of the market in the future. It is simply about
what you are willing to pay out of your own pocket as against what you want the
insurance company to provide.
Term Life Online insurance
Term life insurance, also referred to as `temporary` lifetime ins, safeguards a person
against loss of life and covers a specified time, known as the `term`. Benefits of Term on
line life insure. Almost all policies allow you to convert your Term insurance contract to
a Permanent one. You have the option to terminate or give up the life coverage online
insurance agreement anytime you`d like to, so that you can utilize the cash surrender
value on whatever you want (or need) to. To help determine which type of lifetime online
insurance is best suited to your needs and circumstances, it may be worthwhile to be
familiar with some of the fundamentals of a permanent life insurance agreement:. Get the
best rates with a term life insurance quote online.
When you purchase a short-term life insurance plan, you are getting insurance coverage
for a definite time period. If in case you expire within the specified time period in your
short-term life insurance plan, the insurance company will have to give your beneficiaries
the par value of your policy. Moreover, unlike other kinds of lifetime online insurance,
short term coverage accrues no cash value.
Auto Online insurance
Auto insurance is something that you must have. Getting a car insurance quote and
buying an auto insurance policy is fast, convenient, and affordable. With in moments you
can get your insurance quote and view comparison quotes from other auto insurance
companies. Whatever the situation, it`s nice to understand some of the basics of insurance
coverage online prior to deciding on acquiring a certain plan for your automobile.
Liability coverage generally insures the named insured on the insurance policy, the
named insured`s spouse and children, any blood family member of theirs by marriage,
and everybody driving the automobile with the insured`s permission.
Crash coverage insures motorists for the damage done to their own automobiles by an
accident that they were responsible for.
Collision coverage insures drivers for the damage occurred to their own autos by an
accident which they caused.
Drivers willing to disburse a higher premium could get online insure plans that will cover
the substitute costs of the auto.
When your automobile is leased, you`ll most likely need to carry gap insurance, which
reimburses the difference between what your insurer pays and what you owe your
creditor, in case your vehicle is a total wreck.
Online auto insurance is one of the greatest ways to find the auto insurance that you need.
This is the ideal way to learn just how much you are going to pay for auto insurance and
to determine just which of the auto insurance carriers will offer you specifically the
lowest of rates. There are different laws inside every state, so while searching for auto
insurance, look for these websites that verify insurance at each country.
Health Online insurance
Health insurance is a type of insurance whereby the insurer (private or government
organization) pays the medical costs of the insured i. There are number of insurance
companies offering affordable and cheap health insurances. Buying online health
insurance is easy and convenient rather than visiting insurance agents or companies
personally. By searching different health insurance websites, buyers can learn all about
the health insurance; get free online health insurance quotes, compare health plan prices,
and benefits side-by-side.
Travel Online insurance
If you are planning your holidays abroad, then it will be good to consider buying holiday
insurance. During holidays, there are the possible chances of someone getting injured or
ill, stolen baggage, lost baggage or any other issues. In order to learn additional info, it is
best to look for the holiday travel insurance rate keyword with a well-liked search engine,
for instance Google and also Yahoo. Buying online holiday insurance is much better as it
is efficient, convenient and time saving procedure.
Online insurance is rapidly taking over the world, replacing the old traditional measures
which in the past seemed to be the right way for obtaining insurance. Online insurance is
a competitive market too, so you can be confident you're getting a fair shake. online
insurance is simply about what you are willing to pay out of your own pocket as against
what you want the insurance company to provide.
The Basics of Term Life Insurance
Should you "buy term and invest the rest" or fuel your life insurance with "the power of
Term life insurance is often touted for its "pure insurance protection," which includes
none of the cash value features inherent in whole life policies. Term life insurance covers
you for a specific period of time - usually 10, 15, 20 or 30 years. You can also buy term
insurance that covers you until you reach a certain age, usually 65 or 70. Term insurance
policies expire at a set time and if you don't die within the term there is no pay-out of the
policy. If you do die within the term, your beneficiaries receive the money tax-free.
Generally, you purchase term life insurance to protect your loved ones from debts or
provide for short-term obligations. For example, if you and your spouse own a home and
you were to die tomorrow, your spouse would have to pay the mortgage on his or her
own. If you had a term life insurance policy, your spouse could receive enough money
from the policy's death benefit to pay off the mortgage.
Term insurance doesn't just cover specific debts, however. If you have children, term
insurance can protect your family's finances, providing money for college and living
expenses if you die before your children are fully grown.
Medical exam is usually required
When you apply for term life insurance coverage, the insurance company will probably
require a medical exam before issuing a policy. The examination is basic, covering your
height, weight, medical history and blood and urine testing. With the blood and urine
tests, the insurer looks for specific medical problems. Positive results could affect your
premium, or even your ability to buy a policy.
Smokers will pay more for life insurance, although cigar smokers might get less
expensive premiums than those using cigarettes. If you smoke marijuana, but not
cigarettes, you still must admit to being a smoker on the policy application. Insurers don't
generally differentiate between different types of smoke inhalation. (Marijuana users
must also disclose their drug use.)
Different flavors of term
As you age, the likelihood you will die sooner increases. That's why older individuals pay
more for life insurance. However, affordable term life insurance is possible if you shop
around. If you are looking for low cost term life insurance, you can lock in low premiums
by buying for a "level term" policy. That means for a specific time period, say 20 years,
your premium rate stays the same. Many term policies give you the option to renew your
coverage at the end of the term without undergoing another medical exam, although your
premiums will rise for the next term - often substantially.
A less popular policy is "annual renewable term." This gives you coverage for one year
with the option of renewing it each year for a specified duration, such as 20 years. With
this policy, your term life insurance rates will go up every year you renew and are
calculated based on the probability of your dying within the next year.
If you'd like to have term life insurance in place to provide for beneficiaries yet you are
confident you'll outlive the policy, you could consider "return of premium" term life
insurance. Under this type of policy, if no death benefit has been paid by the end of your
insurance term, you receive all your premiums back. It pays to shop around for a policy
like this, but on the low end you can expect to pay 50 percent more in premiums than
comparable traditional term life insurance.
If you have trouble finding life insurance because of illness or a troubled medical history,
you can turn to guaranteed issue life insurance coverage
x], sometimes called "quick issue" or "simplified issue" insurance. Guaranteed issue
policies require no medical exam, but you pay a higher premium in exchange for the
guaranteed coverage. That's because the insurance company takes on more risk in
insuring people without knowing their medical condition. Guaranteed issue policies can
require waiting periods before coverage kicks in. They might be the only option for some
people. A life insurance broker can search the marketplace for a guaranteed issue policy
that meets your needs.
How long a term?
Figuring out which term you should buy - 10 years, 20 years, 30 years or some other
number - requires a major review of your debts, financial needs, dependents' needs - and
when all those might change. Jack Dolan of the American Council of Life Insurers
suggests you ask yourself, "When will my dependents reach financial independence?"
Also look at major debts, such as mortgages or other loans, and when those are due to be
Guenther Ruch of the Wisconsin Insurance Commissioner's office says it's a good idea to
review your life insurance needs carefully, both when you buy the policy and on a regular
basis throughout your life. "You may not have the coverage you need. You may have
more than you need," Ruch says.
Ruch has the following recommendations for anyone buying life insurance, or anyone
who already has coverage:
Schedule a routine "check-up" with your insurance providers at least once a year.
Shop around when you're in the market for a new policy. Term life insurance rates
vary considerably among insurers.
Remember, an insurance policy is a legal document. Read it carefully and make
sure you understand it.
"Perhaps you want to leave assets for your heirs, or for charity, or you need the death
benefit for business-planning purposes. These are all areas where life insurance can play
a role, but it's really designed for financial protection," Dolan says.
Term vs. whole life insurance: The cash value debate
Variable universal life insurance (VUL), a form of permanent life insurance, is popular
because it offers a cash value that may build up with interest over time. The interest
earned is based on the performance of the stocks, bonds, or other investment portfolios in
which you choose to invest your premiums.
Some financial planners advocate VUL policies because they force you to save money in
the cash value component. Others recommend you buy term insurance for the cheaper
premium, and then invest the money left over in mutual funds or other investments. VUL
also allows you to change your death benefit and subsequent premium payments over
Cash value in life insurance should not be considered a traditional investment because
any partial withdrawals or loans will reduce your death benefit. Also, if you withdraw
your cash value in an amount exceeding the premiums you have paid into the policy, you
will face a tax bill. In addition, every year you own the policy, more of your premium
goes to pay for the cost of insuring you and less goes toward the cash value.
Amy Danise is a staff writer for Insure.com. Visit Insure.com for a comprehensive array
of comparative auto, life and health quotes, including a vast library of originally authored
insurance articles and decision-making tools that are not available from any other single
source. Insure.com is dedicated to providing impartial insurance information to
consumers. Visitors can obtain instant quotes from more than 200 leading insurers,
achieve maximum savings and have the freedom to buy from any company shown.
Auto Insurance Basics
Auto insurance is a contract that protects your financial security in case of an accident.
Although it is not mandated by federal law, the purchase of auto insurance is usually a
requirement in most states; every state (with the exception of New Hampshire and
Wisconsin) have minimum insurance laws.
These two states, instead of having insurance requirements, have mandated financial
responsibility laws, so that the owner of a car is required to show that he has sufficient
funds to pay any necessary claims. If said owner cannot produce proof of satisfactory
assets, then he must buy an auto insurance policy. Regardless of the law, having good
auto insurance is practical for the driver who wishes to avoid lawsuits or immense repair
According to the Insurance Information Institute (III), a basic auto insurance policy is
comprised of six basic types of coverage. While some of these types of coverage are
required by state law, some are considered optional.
Liability coverage is the foundation of any car insurance policy, and is required in most
states. If you are at fault in an accident, your liability insurance will pay for the bodily
injury and property damage expenses caused to others in the accident, including your
legal bills. Bodily-injury coverage pays for medical bills and lost wages.
Property-damage coverage pays for the repair or replacement of things you wrecked other
than your own car. The other party may also decide to sue you to collect "pain and
Liability insurance (both bodily injury and property damage) is the foundation of most
auto insurance policies and is ideal if you are seeking a low cost car insurance policy.
Every state that requires auto insurance mandates the purchase of property damage
liability, and Florida is the only state that requires auto insurance but does not call for
bodily injury liability. If you are at fault in an auto accident, your liability coverage will
pay all the expenses, bodily injury, property damage, and any legal bills. The bodily
injury coverage would pay for medical bills and lost wages; the property damage
coverage would pay for any auto repairs, or replacement. Property damage liability
usually repairs damage to other vehicles, but can also cover damages to things such as
lamp poles, fences, buildings, or anything else that your car may have struck.
Remember, although purchasing only the minimum can get you a cheap auto insurance
rate, if you cause a serious accident, minimum insurance may not cover you adequately.
That's why it's a good idea to buy more than what your state requires. If you own a home
and have nest egg and a savings account, you should consider more liability insurance
because, in most states, drivers are allowed to sue other drivers who injure them in car
accidents. If you're sued and your liability insurance doesn't pay for all of the damages,
your personal finances are on the hook, and it's likely you'll become a target.
Collision and Comprehensive Coverages
If you cause an accident, collision coverage will pay to repair your vehicle. You usually
can't collect any more than the actual cash value of your car, which is not the same as the
car's replacement cost. Collision coverage is normally the most expensive component of
your car insurance rate. By choosing a higher deductible, say $500 or $1,000, you can
keep your premium costs down. However, keep in mind that you must pay the amount of
your deductible before the insurance company kicks in any money after an accident.
Insurance companies often will "total" your car if the repair costs exceed a certain
percentage of the car's worth. The critical damage point varies from company to company,
from 55 percent to 90 percent.
Comprehensive coverage will pay for damages to your car that weren't caused by an auto
accident: Damages from theft, fire, vandalism, natural disasters, or hitting a deer all
qualify. Comprehensive coverage also comes with a deductible and your insurer will only
pay as much as the car was worth when it got wrecked.
Because insurance companies normally will not pay you more than your car's book value,
it's helpful if you have a rough idea of this amount. Check the Kelley Blue Book or the
National Automobile Dealers Association. If your car is worth less than what you're
paying for the coverage, you're better off not having it.
Neither collision nor comprehension insurance is required by any of the states, but some
lenders, when the owner finances the car, may require the purchase of collision and
comprehensive in the loan agreement. Even when it is not required, collision and
comprehensive coverage is highly recommended by the insurance industry, so that in the
unforeseen event of damage or theft, the owner of the car can avoid heavy bills. Theft of
cars is not as unusual as some people may think. In 2004, a car was stolen in the United
States every 26 seconds, and a car had a 1 in 190 chance of being stolen.
Medical Payments, PIP, and No-fault coverages
Medical payments (MedPay) coverage will pay for your and your passengers' medical
expenses after an accident. These expenses can arise from accidents while you're driving
your car, someone else's car (with their permission), and injuries you or your family
members incur when you're pedestrians. The coverage will pay regardless of who is at
fault, but if someone else is liable, your insurer may seek to recoup the expenses from
him or her.
Personal Injury Protection (PIP) coverage is an extended form of MedPay. PIP may cover
expenses that are related to injury, but not necessarily medical, such as lost wages,
childcare and funeral costs. PIP coverage is currently required by sixteen states. If you
are already insured under a good health insurance policy, then fortunately, there is no
need to buy more than the minimum required amount of PIP or MedPay insurance.
If you have a good health insurance plan, there might be little need to buy more than the
minimum required PIP or MedPay coverages, if at all. And, if you already have disability
insurance, there's little reason to purchase higher-than-minimum amounts of PIP.
Uninsured/Underinsured Motorists Coverages
Uninsured motorists (UM) coverage pays for your injuries if you're struck by a hit-and-
run driver or someone who doesn't have auto insurance. It is required in many states.
Underinsured motorists (UIM) coverage will pay out if the driver who hit you causes
more damage than his or her liability coverage can cover. In some states, UM or UIM
coverage will also pay for property damages. Similarly, underinsured motorists insurance
will cover any damage caused when you are struck by a driver who is not insured for a
If you are hit, as a pedestrian, underinsured coverage will cover the expenses. Uninsured
motorists insurance is currently required by twenty states, and Underinsured motorists
coverage is required by only four: Connecticut, Minnesota, Maine, and Vermont.
You'll probably want to have at least the minimal amount of UM/UIM because if you
can't find the other driver, you'll at least have some coverage for pain-and-suffering
Several supplemental auto coverages are available, either as separate premium items or
included in augmented policies. -Rental reimbursement, a common add-on, covers
vehicle rentals required because your car is damaged or stolen. -Coverage for towing and
labor charges in case of a road breakdown is also common. -Gap coverage for your new
car will pay the difference between the actual cash value you receive for the car and the
amount left on your car loan if your vehicle is totaled in an accident.
Basic auto insurance is required by virtually every state and is typically the cheapest auto
insurance in the marketplace. Proof of insurance is required at different times throughout
the life of a vehicle.
You may be asked for proof of insurance at any and all of these times: at vehicle
registration, at the time of an accident, and any time when driving the vehicle. It is
suggested that the owner of the car keeps proof of insurance in the car at all times, instead
of on his or her person, so that it can be available at all times, no matter who is driving.
Any violations of state law regarding auto insurance could result in, at best, a hefty fine,
and at worst, suspension of your driver's license and/or time in jail. The dire
consequences of driving while uninsured are not worth the neglect of paying for
insurance. The chance that an uninsured driver will avoid detection is slim; he is likely to
be caught and strictly punished.
Importance Of Insurance
Insurance is a defensive measure used against future conditional losses to hedge the
possible risks of the future. It is a legal contract that protects a person from contingent
risk of losses through financial means and provides a means for individuals and societies
to handle some of the risks faced in daily life.
These contracts of insurance are called policies and are provided by insurance companies.
The Insurance companies charge a regular amount from the customers, which is paid
back, either in part, or entirety, to the customers in case of a definite loss. This regular
amount charged from customers is called Insurance Premium.
REASONS OF INSURANCE:
Sometimes in life it is not possible to avoid the losses. For example People may become
ill. They may die of illness or accidents or their homes or other property may undergo
damage or theft. So in all these cases and they have to face the loss of income or savings.
So insurance is a manner of financially insuring that if such an incident comes about then
the loss does not affect the present well being of the person.
DOCTRINES OF INSURANCE:
1 There should be a certain definite loss taken place at a known time, in a known place
and from a known cause. Therefore the time, place and the cause of loss should be clear
2 The incident that represent the cause of the claim should be accidental or beyond the
control of the beneficiary.
3 The size of the loss must be significant from the perspective of the insured. Insurance
premiums should cover both the estimated cost of losses, plus the cost of policy,
regulating the losses, and providing the principal required to logically assure that the
insurer would be able to reimburse claims.
4 The amount of premium should be affordable.
5 The possibility of loss and the cost of compensation should be calculable or estimable
TYPES OF INSURANCE:
Below are some kinds of insurances.
Life insurance policy insures the life of the insured. The insurance company is legally
bound to provide a monetary benefit to a decedent's family or the beneficiary after the
death of the policyholder. The proceeds are paid to the beneficiary either in a lump sum
amount or an annuity
Medical insurance is also called medclaim. Under this policy the insurance policy pays
the amount to the insured for his health purpose. This amount covers the cost of medical
There are two types of disability insurance.One is simple disability insurance and the
other is total disability insurance. In case of simple disability insurance,a financial
support on monthly basis is provided by the insurer to the policy holder if he is unable to
work due to an injury or an illness. But permanent disability insurance provides the
reimbursement if a person becomes permanently disabled.
It includes automobiles insurance, business insurance, property insurance etc.
In UK this insurance is called motor insurance. It compensates the loss or damage
occurred to the vehicle. But in United States auto insurance policy is essential to legally
operate a vehicle on public roads.
Business insurance protects the businesses against risks of losses and damages and
compensates in case of loss
This type of insurance protects the property against the risks like fire, theft etc. This
category also includes fire insurance, flood insurance, earthquake insurance etc
It is an insurance covering the damage to the property caused by fire.
This type of insurance pays the policy holder in case of any loss or damage to the
property due to flood. It protects the property against the flooding.
This insurance compensates any damage to the property caused by earthquake.
IMPORTANCE OF INSURANCE:
Insurance plays an important role in sharing the risks of people in an affordable form.It
helps the people to quickly recover from damages and losses.
What is Home Owners Insurance?
Home owners insurance rates vary widely based on your geographic location. Areas
prone to hurricanes, floods, hail, earthquakes, fires and other natural disasters will
generally have higher rates. Even the distance to the nearest fire department or fire
hydrant can have an impact on your home owners insurance rates.
Knowing Your Policy Is VERY Important
Coverage for Property and Possessions
Theft Off Premises
Additional Living Expenses
What Can a Homeowner Do To Be Prepared?
What Can a Homeowner Do To Save Money?
Coverage for Property and Possessions
Damage to the dwelling and the contents could be the biggest unexpected disaster
awaiting a homeowner who has less coverage than needed. Most policies provide a stated
maximum amount of coverage for the dwelling and another amount for contents.
Generally, dwelling coverage is based on replacement cost, which means that in the event
of a total loss, the policy will provide reimbursement, up to the policy limit, to replace the
structure. Ideally, a homeowner should buy enough insurance to completely rebuild the
home, known as replacement value. This figure may not be the home's actual market
value or what the owner originally paid for the home. This is especially true in a
depressed or an inflated market or if the home is simply not replaceable to its condition
prior to the loss. Replacement cost policies, which may pay over the policy limit to
rebuild the home, may be available from your insurer.
To determine how much insurance to purchase, an accurate appraisal of the home for
replacement cost should be made. Working with your insurance company is important in
this process. Most insurers recommend or require that a homeowner insure the dwelling
for 100 percent of its full replacement value. Some homes, very unique ones such as
national register-types or very elaborate ones, cannot be insured for exact replacement
since some features are not replaceable in either workmanship, materials or practical
costs. The insurer and/or the agent is the best source for these issues.
Coverage for personal property is different. Most policies provide actual cash value
coverage for contents which includes depreciation, or full value contents without
depreciation. Actual cash value means that if a power surge blows out a 10-year-old
television set, the homeowner should know what to expect. Unlike full value contents
coverage, which would essentially provide a new television set, actual cash value
coverage allows the insurance company to calculate the useful life of the item and then
depreciate the item to present value. A depreciated 10-year-old television set would be
insured for only a fraction of its original cost. A homeowner may want to consider
replacement cost coverage to be sure that the contents are adequately insured.
In addition to making sure that contents are covered for replacement cost rather than
actual cash value, homeowners should purchase additional coverage for items that would
ordinarily be subject to loss limitations. Virtually all policies cover contents loss up to the
policy limit for items that include furniture, clothing, toys, accessories such as lamps and
other items which are used for decor. Explicit limitations are set in the policy for high-
cost items such as jewelry, fine art, furs, electronics, collectibles, oriental rugs and
antiques. If a thief comes in and steals a two-carat engagement ring, it will not be covered
well enough without what is commonly known as a personal property rider to cover
specific, costly items. For more information on home owners insurance visit our
specialist site below.
Home Owners Liability Coverage
Liability insurance is very important to a homeowner's coverage because it helps protect
the owner and the family from financial disaster if someone files a claim against the
homeowner's policy, sues the homeowner or if the courts hold the homeowner legally
responsible for someone else's injury or property damage. The standard liability limit for
most policies is $100,000, but many people believe that additional protection is needed ,
especially if the homeowner has sizable assets.
For a small increase in premium, an additional $300,000 to $500,000 may be obtained.
Liability coverage protects in three ways: Personal liability, damage to the property of
others, and medical expenses for injury to others.
Another way to protect one's assets is to consider an Umbrella Policy which usually adds
$1 million (or possibly more) in excess liability coverage to the homeowner's property
and automobile insurance policies. It also covers claims excluded from most basic
policies such as libel, slander, defamation and mental anguish.
For example, most policies provide liability coverage that covers not only accidents that
occur on the insured property but accidents that occur elsewhere. If the family dog bites a
neighbor in front of another neighbor's house, for example, the dog owner's homeowner's
policy will usually compensate the neighbor for injuries and necessary medical expenses.
For more information on home owners insurance visit our specialist site below.
Theft Off Premises
Most policies automatically insure against the loss of personal property even if that
property is not on the insured premises when it is lost. If one goes to the airport with
several suitcases and they are stolen, this is probably covered. Talk with your agent
and/or your insurance company for details.
Additional Living Expenses
Another automatic benefit of which many homeowners are unaware is coverage for living
expenses if the covered premises is damaged to the point of being uninhabitable. Not
only should the policy pay for the cost to repair the damage to the dwelling, but it should
also reimburse the homeowner for the additional expenses of living elsewhere while the
repairs are being made. For more information and rates on home owners insurance visit
our specialist site below.
What Can A Homeowner Do To Be Prepared?
How does someone find out what is and what is not covered? Read the policy carefully.
It's not likely to be fun reading, but the good news is that if one reads and understands his
or her policy before it is needed, this knowledge may save unexpected financial losses
should a problem occur. It is always best to talk with one's insurance agent or the
company that issued the policy for details.
Understanding your home owners insurance policy is best handled before a claim is made.
In the case of the contents, an inventory of items room by room is important to have with
information such as the date purchased, serial number, the original cost of each item and
a brief description. Video tape or still photos is very helpful along with the inventory.
These items should be stored in a safe place such as a safety deposit box in a bank or
savings and loan institution and not in the home because if the home is destroyed, the
chances are the inventory and related photos or tape may also be destroyed.
Save Money On Your Home owners Insurance
Insurance is a highly competitive business and the price paid by the consumer for
homeowners insurance may vary by hundreds of dollars, depending on the insurance
company with which the consumer intends to do business.
Companies offer several types of discounts, but they may not always offer the same
discount or the same amount of discount. That is why the consumer should ask his or her
insurance agent or company representative about any discounts that are available.
What should a prospective homeowners policy holder think about when assessing which
policy to obtain? Here are several ideas for potentially lowering costs.
Prices vary so it pays to shop around. Ask friends, check the Yellow Pages, refer to
consumer guides, insurance agents, the consumer phone line of the state's insurance
commissioner's office and the companies for price information.
Raise the deductible
Deductibles are the amount of money the homeowner pays toward a loss before the
insurance company starts to pay according to the terms of the policy. Deductibles on
homeowners policies typically start at $250. By increasing the deductible to $500, $1,000,
$2,500, or $5,000, discounts may be obtained, depending on the insurance company.
Buy home and auto policies from the same insurer
Some companies that sell homeowners and auto coverage may reduce their premium if
two or more policies are purchased from them. When buying a home, consider how much
insuring it will cost. A new home's electrical, heating and plumbing systems and overall
structure are likely to be in better shape than those of an older house. Insurers may offer a
discount if the house is new. Choice of construction materials and design could reduce
the premium. Brick, because of its resistance to wind damage, is better in Georgia.
Proximity to fire station, firefighters and fire hydrants also affects premiums.
Insure the house, not the land
The land under the house isn't at risk from theft, windstorm, fire and other perils covered
in a homeowners policy. Therefore, the value of the land should not be included in
deciding how much homeowners insurance to buy.
Beef up home security
Some insurance companies offer discounts for smoke detectors, burglar and fire alarm
systems, or dead-bolt locks. Others offer discounts for homes equipped with a sprinkler
system and fire detection and burglar alarms that ring at the police station or at a
monitoring facility. Before buying such a system, consumers should check with their
insurers to validate that such as system will be eligible for a discount and how much the
device or system would cost. Most importantly, the consumer should know how much
may be saved on premiums.
Smoking accounts for more than 23,000 residential fires in a year nationwide. That's why
some insurers offer to reduce premiums if all the residents in a house do not smoke.
Seek out discounts for seniors
Retired people stay at home more and spot fires sooner than working people. Retirees
also have more time to maintain their homes. If a homeowner is at least 55 years old and
retired, he or she may qualify for a discount at some companies.
Compare the limits in the policy with the value of the possessions in the home at least
once a year.
Policies should cover any major purchases or additions to the contents of the home.
Remember that additions to the physical structure of the home should be reported to your
agent or insurance company for a reevaluation of the limits of your policy. In addition,
review your contents which may require a special scheduling on your policy. Such items
include jewelry, watches, furs and computers to name a few. If you have sold or given
away special schedule items, they should removed from your policy.
Are You Adequately Protected?
Because there are so many options and variables associated with home owners insurance
we recommend that you find a company in your area that specializes in home owner
insurance. It is very possible to save hundreds of dollars a year by simply shopping rates
Life Insurance Policies Explained
Six Basic Kinds of Life Insurance
Regardless of how fancy the policy title or sales presentation might appear, all life
insurance policies contain benefits derived from one or more of the three basic kinds
shown below. Some policies due combine more than one kind of life insurance and can
Term Life Insurance
Endowment Life Insurance
Whole Life Insurance
Variable Life Insurance
Universal Life Insurance
Variable Universal Life Insurance
Term Life Insurance
Term life insurance is death protection for a term of one or more years. Some companies
are offering policies with terms up to thirty years. Premiums on term insurance remain
level during the life of the policy. Term Life Insurance has no cash value account. Death
benefits will be paid only if you die within that term of years. Term insurance generally
provides the largest immediate death protection for your premium dollar.
Some term life insurance policies are renewable for one or more additional terms even if
your health has changed. Each time you renew the policy for a new term, premiums will
be higher. You should check the premiums at older ages and the length of time the policy
can be continued.
Some term insurance policies are also convertible. This means that before the end of the
conversion period, you may trade the term policy for a whole life or endowment
insurance policy even if you are not in good health. Premiums for the new policy will be
higher than you have been paying for the term insurance.
Life Insurance "Endowment"
An endowment insurance policy pays a sum or income to you, the policyholder, if you
live to a certain age. If you were to die before then, the death benefit would be paid to
your beneficiary. Premiums and cash values for endowment insurance are higher than for
the same amount of whole life insurance. Thus endowment insurance gives you the least
amount of death protection for your premium dollar.
Whole Life Insurance
Whole life insurance gives death protection for as long as you live. The most common
type is called straight life or ordinary life insurance, for which you pay the same
premiums for as long as you live. These premiums can be several times higher than you
would pay initially for the same amount of term insurance. But they are smaller than the
premiums you would eventually pay if you were to keep renewing a term insurance
policy until your later years.
Some whole life policies let you pay premiums for a shorter period such as 20 years, or
until age 65. Premiums for these policies are higher than for ordinary life insurance since
the premium payments are squeezed into a shorter period.
Although you pay higher premiums, to begin with, for whole life insurance than for term
insurance, whole life insurance policies develop cash values which you may have if you
stop paying premiums. You can generally either take the cash, or use it to buy some
continuing insurance protection. Technically speaking, these values are called
nonforfeiture benefits. This refers to benefits you do not lose or forfeit when you stop
paying premiums. The amount of these benefits depends on the kind of policy you have,
its size, and how long you have owned it.
A policy with cash values may also be used as collateral for a loan. If you borrow from
the life insurance company, the rate of interest is shown in your policy. Any money
which you owe on a policy loan would be deducted from the benefits if you were to die,
or from the cash value if you were to stop paying premiums.
Variable Life Insurance
Variable life insurance, provides permanent protection for you and death benefits to your
beneficiary upon your death. The value of the death benefits may fluctuate up or down
depending on the performance of the investment portion of the policy. Most variable life
insurance policies guarantee that the death benefit will not fall below a specified
minimum, however, a minimum cash value is seldom guaranteed. Variable is a form of
whole life insurance and because of investment risks it is also considered a securities
contract and is regulated as securities under the Federal Securities Laws and must be sold
with a prospectus.
Universal Life Insurance
Universal Life insurance is a variation of Whole Life. The insurance part of the policy is
separated from the investment portion of the policy. The investment portion is invested in
bonds and mortgages, the investment portion of Universal Life is invested in money
market funds. The cash value portion of the policy is set up as an accumulation fund.
Investment income is credited to the accumulation fund. The death benefit portion is paid
for out of the accumulation fund. Unlike Whole Life Insurance, the cash value of
Universal Life Insurance grows at a variable rate. Normally, there is a guaranteed
minimum interest rate applied to the policy. No matter how badly the investments go by
the insurance company, you are guaranteed a certain minimal return on the cash portion.
If the insurance company does well with its investments, the interest return on the cash
portion will increase.
Variable universal life insurance pays your beneficiary a death benefit. The amount of the
benefit is dependent on the success of your investments. If the investments fail, there is a
guaranteed minimum death benefit paid to your beneficiary upon your death. Variable
universal gives you more control of the cash value account portion of your policy than
any other insurance type. A form of whole life insurance, it has elements of both life
insurance and a securities contract. Because the policy owner assumes investment risks,
variable universal products are regulated as securities under the Federal Securities Laws
and must be sold with a prospectus.
Rates and coverage vary form state to state. Shop around on your own and talk to an
independent insurance agent to make sure you get a plan that's right for you. It's amazing
how much rates may vary from company to company for the same coverage.
What You Should Know About Medical
And Term Life Insurance
Insurance is a form of risk management used mainly to soften the blow of unexpected
misfortune, like death or permanent disability, of either yourself or a loved one. With so
many different types of insurances available from different corporate bodies, it is your
choice which type will bring the best benefits to you and your family. All insurances
require a premium to be paid in exchange for the final policy that will release the total
sum insured, with very attractive bonuses added-on in the final days.
One of the most popular forms of insurance is medical life insurance, better known as
health insurance. Medical life policies will often cover the cost of private medical
treatments at facilities for unconventional medical procedures which may cost more.
Generally, this form of insurance is considered a luxury by most, although it may result
in quicker health care with better facilities. Having no medical life insurance may just
mean specific, sometimes necessary medical procedures may not be available to you.
Medical life insurance is normally offered by employers to those working more than six
months in the company. If so, it may be voluntary which means the plan is deductible
from the employees' monthly salary and is usually up for offer after a certain period of
employment, for example six months into the company. Medical life insurance
information on premiums rates, coverage and add-on coverage can be obtained from the
insurance companies or agents you are buying your policy from. No two medical
insurance information, prices and coverage are exactly alike - while one medical life
insurance may be cheaper, the coverage may be less than the other.
Coverage for this include annual health screenings, health and wellness resources,
national network of medical facilitators, coverage for medical travel, quicker claims
process and many other additional services.
You will also notice that medical life insurance may be regarded in a different light than
other insurance forms. No medical life insurance prices are available online, for example,
even though there are various plans offered from any one insurance company. This is
most probably because your choice of plan may reflect your society status and may
attract undue attention to you.
Another type of insurance offered is the term life insurance. Term life insurance provides
protection for a stated time period - a temporary insurance that goes into effect for a
limited time for a limited sum. It is probably the most uncomplicated form of life
insurance and developed to provide temporary protection on a smaller, more affordable
One of the qualities of term life insurance is that it can be purchased in large amounts for
a relatively small initial premium. Suitable for short-range goals, term life insurance
coverage can be used to pay off a loan, or providing extra life insurance protection during
the child-raising years. Term life insurance has some distinct features which include
affordability, particularly at the initial stages of the insurance, adjustable premiums (but
never exceeding the maximum premium rate stated in your policy rate card), renewability
upon policy expiry and the possible conversion to a permanent life insurance policy.
However, this last feature may not be available on all term life insurances.
Term life insurance functions in a similar way to most other types of insurances. It
satisfies claims against what is insured as long as premiums are paid up and the policy is
not expired. The best example of this particular type of insurance is vehicle insurance,
where claims against the insured are satisfied in an accident. It is the same for home
insurances where the home is insured for the eventful possibility of a fire or natural
disaster destroying it. While there may be no certainties that these incidences will happen,
the term life insurance covers the policyholder for the possibility of it happening.
However, if no claims were filed, there is no expectation of a return of the premiums paid
and the insurance may or may not be renewed. In cases of vehicle and home insurances,
the term life insurance acts purely as a risk protection agent.
Whichever insurance you finally decide on will depend on your personal and professional
reasons for taking up the policy, budget and most importantly, the coverage you will be
receiving. At the end of the day, the insurance is supposed to ease your living a little bit
and not act like an added financial burden.
What is Permanent Life Insurance?
Should I Choose Permanent Life
Insurance Or Term Life Insurance?
What is permanent life insurance? Is it better to purchase a permanent life insurance
policy or a term life insurance policy? Is it possible to find low cost permanent life
insurance? It is important for those searching for life insurance coverage to do a
permanent life insurance comparison to decide if a whole life policy, a term life policy, a
universal life policy, a variable life policy, or even a combination of the above may be a
good choice for their needs.
Life insurance can be a term relatively unknown for the younger generations of this
country. While the old and retired people of this great nations plan financially to leave
their dependents with money so they can get through; the younger generations have not
done much to protect themselves or their families in case of an accidental death. Life
insurance in the United States is not as common as the other types of insurances (car,
homeowners, health) because it is not required. Every state requires you to have car
insurance, if you own a house you should have homeowners and the rule of thumb is for
you to have health insurance if you want to pay lower premiums and stay healthy (which
has now started to decrease because people don't have the money to buy independent
policies). Life insurance on the other hand is the insurance of the wise! This is because
the person with the policy is not only thinking about the present, but is thinking about the
future and what it may hold to their dependents of family.
Permanent life insurance (also called universal and whole life insurance) is one of the
main kinds of life insurance and one that can be the difference between burden and
stability after a head of the household dies unexpectedly. The definition of a permanent
life insurance policy is that it simply consists of a policy that is for the entire life of the
person being insured, guarantees payout at the end of the policy, and most importantly
accrues value. This is of supreme important because with these insurance policy you are
guaranteed money at the end of the road and best of all your family will have the stability
that many families lack after a person contributing some income dies unexpectedly.
Although permanent life insurance is a good way to save yourself and your family some
trouble at the end of the road, many people simply decide to get term life insurance
instead. When comparing term life insurance vs permanent life insurance many opt for
term simply because of the cost. The reason for this is that premiums for term life
insurance are cheaper based on the fact that the insured is not guaranteed money at the
end of the policy. This policies are simply for ten or twenty years and if the insured does
not decease in that certain amount of time, the family will not see a single penny. Since
the burden of paying money at the end of the contract is gone from the policy when we
speak about term life insurance, families save money because the premiums are cheaper.
It is important to mention that at first the amount of money received by the family will
not be as much because they will be paying for the agent and all the fees, not to mention
that they will be paying the life insurance company for their commitment to insure the
person. With time however, the cash accumulates due to the amount of the premium you
are paying. That extra cash is deposited into a saving's component, which is also known
as the policy's "cash value". As the savings increase with the payments, the quantity that
your family gets at the end of the road will increase. It is important to know that the
policy is called permanent life insurance because as long as you pay your premiums and
maintain the policy accurate, you will be allowed to have this kind of insurance for your
It is important to know that permanent life insurance is divided into three groups: whole
life, variable life, and universal life. When we speak about a whole life policy we speak
about a type of life insurance that offers both insurance and investment, with the
advantage that premiums are leveled. Variable life insurance is the most expensive of all
kinds of permanent life insurance because it allows the policy holder to allocate a portion
of the savings accounts into other things such as stocks, bonds and investment funds. Last
but not least the universal life type of permanent life insurance is a very common one as
well. Universal life insurance separates the investment and death portions of your policy
and it allows the insured to build his savings faster with the help of some sort of equity
investments. As time goes by, universal life insurance can also allow you to change your
premiums and death benefits to suit your current living situation.
As you can see permanent life insurance does not sound too bad compared to term life
insurance. The policies are simply a little bit more expensive due to the fact that the
beneficiary will in fact receive some money when all is said and done due to the savings
part of the policies. Although many people just don't see the good thing of having life
insurance through their whole lives because once a person is retired there is no need for
such income, the truth is that permanent life insurance can help you out in the long run. It
is not bad for you to protect yourself for life, especially if you are married or if you have
a son or daughter that is not doing too well economically. Permanent life insurance
policies can be a great help to some families and the truth is that if you search and shop
around you can find a policy that is right for you!
Arkansas Life Insurance Guide - How to
Find Cheap Arkansas Term Life
Cheap Arkansas term life insurance rates are not that hard to find. There are many
companies out there that can be of a lot of benefit to the great population of the state.
According to the United States Census Bureau there were approximately 2,810,872
people living in the state of Arkansas in the year 2006. This means that the state's
population grew 5.1% from the year 2000 to 2006. With so many people in the state it is
very probable that there are some out there wondering about life insurance and what
companies are best for your interests. Below you will see some companies that give
coverage in the state of Arkansas, as well as a brief explanation about the life insurance
business and how it works. Take a few moments to read up on AR life insurance business
and then use your new found knowledge to find cheap Arkansas term life insurance
Types Of Arkansas Life Insurance Policies
Life insurance is simply an agreement between a person and a company, in which the
company gives word to the policy holder that it will pay death benefits in exchange for
premiums. This means that the person will be paying premiums and keeping the policy
active as much as possible. In return the company will simply pay in case of an
unexpected death to the policy holder. People generally choose life insurance to protect
their families from economic losses that they may have after the death of a family
member. There are two types of AR life insurance: term life and permanent life.
Arkansas term life insurance policy: With this kind of insurance policy the person will
only be covered for a specified amount of time and they are not guaranteed a death
benefit. This means that at the time of getting the policy, the person to be insured picks
the amount they want to purchase and the amount of time they want to keep the policy
active. The policy will end after the specified period end and if the policy holder does not
die within that specified amount of time the death benefit won't be distributed.
Arkansas permanent life insurance policy: With this type of life insurance policy they
customer will simply start paying premiums and they will be covered for their entire lives.
After having paid the policy the rest of the premiums paid will simply go into what is
called the "cash value" of the policy, which is simply the savings portion. The insured
and its family will be guaranteed a death benefit if they pay the premiums regularly and
keep the policy to date.
Arkansas Life Insurance Companies
The state of Arkansas like many other states has some prominent life insurance
companies that you have heard of, as well as some that are only familiar to some people.
Below we will analyze some of the companies and the plans that they offer. Keep in mind
that you can also search for your own life insurance companies through the use of your
yellow pages or a search engine such as Yahoo or Google; and that there are many AR
life insurance companies in the market from which you can choose from.
Prudential Financial: This might be one of the big companies when referring to life
insurance in the United States. They were founded in the year 1875 and since that year
they have helped people establish good economic futures. It all started when John
Fairfield Dryden, an insurance agent from the city of Newark, New Jersey decided to
found the Prudential Friendly Society. The company grew tremendously in the first four
years and they inundated the markets of New York and Pennsylvania as well. Ten years
later the company reached the magnificent mark of $1 million in assets and continued
expanding itself across the United States.
Nowadays, Prudential is in the Top 100 companies in the United States and they are all
over the world with offices in South America, Europe, Asia and Canada. Their life
insurance division is one of the most recognized around the world and they provide
excellent choices of products for customers. They offer three types of Arkansas term life
insurance: Term Essential, Term Elite and PruLife Return of Premium Term. If a
customer decides to obtain Term Essential they will simply be paying constant premiums
of the same amount. After completing the specified time in your policy you will be able
to convert your policy to a permanent one, but your premiums more than likely will rise.
If you decide to go with Term Elite then you will have constant premiums and have the
ability to convert it to a permanent one if you reach 65 years of age or 5 years after the
policy started. If you do this, you might receive credit toward your policy.
Last but not least, they offer PruLife Return of Premium Term which only differs in that
it offer life insurance to the people that you name your beneficiaries and it provides you
with a guaranteed return of any out of pocket expenses that you might had paid. In
addition to this plans, Prudential offers AR permanent life insurance for whoever that
wants to get it. Keep in mind that there are different types of permanent and if you want
one you should check with Prudential to see what options they have.
New York Life Insurance: This Company was founded in the year 1845 and they have
continued to grow dramatically until this date. The company prides itself in having New
York agents that are some of the best trained and specialized agents in the country. They
have approximately $169 million in assets and they are ranked in the top of A.M. Best
Rankings. The company itself offers many types of life insurance policies including 5 and
20 year term life insurance, as well as Whole Life Insurance in Arkansas (a type of
permanent life insurance in which you can build protection for your business or family,
such as retirement funding, estate protection and mortgage protection), and Universal
Life Insurance (a type of permanent life insurance that gives you supreme flexibility in
how and when you want to pay the premiums).
They also offer Survivorship life insurance (also known as second to die insurance) and it
basically only pays the death benefit after the second person in the policy dies. This
means that if you are couple and you decide to obtain this insurance, then more than
likely your children will be the beneficiary because until both of you die, the amount will
not be distributed. New York Life Insurance also offers many other policies, however it is
important that you first identify your needs and then pick your policy accordingly.
There are many other insurance companies in the state such as MetLife, Allstate, and
AIG. The important thing however, is to shop around and see which one of them interests
you the most.
How To Find Cheap Arkansas Life Insurance Rates
The fact of the matter is that Arkansas life insurance prices vary quite a bit depending
upon many different factors. The first thing you need to know is that if you have major
health issues it will be better for you to go with a company that does not require a
medical exam examination. If you are reasonably healthy then it is your decision to go
with your choice of a fully underwritten permanent or term life insurance policy. Both are
great and in the state of Arkansas many people have different opinions about each. Be
sure and consult with a licensed Arkansas life insurance agent or broker in order to
determine which type of life insurance policy will be best for your specific needs.
Once you know the Arkansas life insurance company of your choice and the plan that
you want to purchase you should ask yourself the question of: How much coverage is
enough for me and my family? The fact of the matter is that views change when speaking
about how much life insurance to purchase. If you are a single man or woman without
any children then you will need less than a father or mother with three children in the
household. Perhaps one basic rule about life insurance is to buy a death benefit of at least
six times that of your annual gross income. Whatever the amount is, the decision lies in
Compare Arkansas Life Insurance Quotes Online
As seen in the few words above, the life insurance industry in Arkansas offers the
residents many products that can be of great benefit for their futures. Whether you decide
on term or permanent life insurance; do what is best for you and for your family. Your
future and the one of your loved ones can be secure if you do the responsible thing!
Comparison of the Best Texas
Homeowners Insurance Companies
In order to find the best Texas homeowners insurance company it is important to do your
research and compare rates, policies, and discounts from a number of different home
insurance companies in TX. Here is a Texas homeowners insurance company review of
some of the top home insurers in Texas:
AIG Advantage Insurance Company
AIG Advantage Insurance Company prides itself on offering high quality insurance plans
at a competitive rate. AIG offers customizable plans depending on each individual client's
needs. With various options in the homeowners' insurance plans, clients are able to select
the coverage they need, while avoiding paying for things they don't need. AIG offers
typical homeowners insurance coverage such as theft, fire, and water damage, but also
offers additional options such as rebuilding costs, additional living expenses, landscaping
coverage, lock replacement, etc. These additional features are appealing to many clients
who wish to customize their insurance plan.
AIG Advantage falls into the "XI" category based on financial size, meaning it is a $750
Million to $1 Billion company with a financial outlook for years to come as "stable." AIG
Advantage received an "A+," or superior, rating from the regulating agency A.M. Best.
Overall, AIG Advantage is an excellent homeowners insurance provider based on its
ratings, financial stability, and customization of plans.
Universal Insurance Company of Texas
Universal Insurance Company of Texas is a subsidiary of Universal Insurance Holdings
of North America, owned by Universal Group, Inc. Based out of San Antonio, Texas, this
insurance company provides homeowners insurance to consumers. Types of homeowner
coverage include burglary, theft, fire, and other damages to a home, depending on the
selected insurance policy.
Universal Insurance Company recently earned a rating of "A," or excellent, by A.M. Best,
as well as the same rating from the regulating agency Demotech, Inc. Universal Insurance
Company of Texas has maintained great customer service ratings, as they received no
reported complaints as compared to the national median. Universal Insurance Company
of Texas is a very financially stable company, with a unique Reinsurance program in
place to continue its financial stability in the future.
Texas Farmers Insurance Company
Based out of Austin, Texas Farmers Insurance Company is a large provider of
homeowner's insurance policies to residents of Texas. The insurance policies of this
provider consist of three main areas: dwellings and structures, personal property, and
personal liability. Customers with Texas Farmers Insurance plans receive coverage for
their home and other detached properties, personal belongings within their home, as well
as coverage for someone who gets injured on the property and damages to the property.
This comprehensive, all-inclusive aspect makes Texas Farmers Insurance Company
popular among customers.
The company itself is quite large, falling into the $2 Billion or greater category, with a
stable outlook for its financial future. Filed customer service complaints are virtually
nonexistent for this company, as compared to the industry average. Texas Farmers
Insurance Company was also rated excellent, an "A" grade, by the regulating agency A.M.
Best, which makes it a reliable company.
Travelers of Texas Insurance Company
Travelers Insurance Company's homeowners policy is unique because it not only
provides the all-inclusive aspect of typical policies, but it also allows clients to choose
extra options to fit the policy best with their own needs. For example, some coverage
options offered by Travelers include identity theft protection, valuable items protections,
flood coverage (not covered under many homeowners policies), and boat insurance for
small personal watercrafts. These options can come at large costs with other insurance
companies, but are offered as an additional option with a Travelers of Texas Insurance
It is important to know, however, that according to NAIC.org, Travelers did receive a
small amount of customer service complaints for the year 2006, mainly regarding delays
in claim handling and unsatisfactory settlements. Overall, though, Travelers of Texas
Insurance Company did receive an "A+," superior, rating according to A.M. Best, and
was given a stable financial outlook for future years.
SF Insurance of Texas
SF Insurance may be one of the most common, well-known insurance companies,
insuring over 15 million homes today. SF's viewpoint is that the broad protection of a
Texas homeowners insurance policy doesn't have to come at an expensive price.
Reasonable rates, as well as premier customer service makes SF a common choice for an
insurance provider. An interesting aspect of SF is that they also provide coverage to
manufactured homes, which many insurance companies ignore. Owners of manufactured
homes may find SF to be one of the most accommodating insurance providers for this
type of coverage.
SF did receive customer service complaints for the past year, mainly regarding claim
handling delays. SF Insurance - Texas falls into the "XIII" financial size category, a $1.25
Billion to $1.5 Billion company. Its financial outlook is stable, and it was recently rated
"B++," or good, by A.M. Best. The broad range of options and coverage, though, may
outweigh the slightly lower ratings of this company.
Compare Texas Homeowners Insurance Companies Now!
No one insurance company is best for every Texas resident so shop around and see which
one will best meet your needs.
Nebraska Car Insurance Guide - Steps to
Finding Cheap Nebraska Car Insurance
It is very important to make sure that you have proper Nebraska car insurance coverage if
you are a Nebraska resident. The state of Nebraska chose the honey bee as their state
insect probably because it is so industrious. You may want to mimic the behavior of this
busy bee and shop around for car insurance if you live and own a car in the state of
Nebraska follows a Tort system of law in regards to car accidents. This means that
someone must be found to be at fault for causing the accident, and that person and their
car insurance company is responsible for all damages.
Nebraska state law only requires that you carry liability car insurance. The state
requirements are Bodily Injury Liability in the amount of $25,000 per injured person up
to $50,000 per accident.
You must also have Property Damage Liability car insurance coverage in the amount of
$25,000. Keep in mind that if you are found to be the cause of an accident, you will be
held personally and financially responsible for any and all damages and medical expenses
that is not covered by insurance. Medical expenses and car repair costs add up fast, so
you may want to purchase more than the minimum amount of car insurance required.
For more information on the required amount of insurance, or if you have any questions
about Nebraska's car insurance requirements, you can call the Nebraska Department of
Insurance located in Lincoln or speak with a licensed Nebraska auto insurance agent.
While not required by Nebraska law, you may want to purchase comprehensive car
insurance coverage. If you are in an accident, comprehensive car insurance will pay for
repairs up to the Blue Book value of the car, and if the costs will be in excess of this
amount the car will be deemed to be totaled and you will receive the cash value of the car.
Comprehensive coverage may be required by your bank or other financial institution if
you have a car loan or lease your vehicle. In some cases gap insurance might be a good
idea as well. Gap car insurance will help make up the difference between what is paid by
comprehensive car insurance and what is owed on your loan if your car is found to be
totaled in an accident.
Also not required by the state of Nebraska, you may want to purchase collision car
insurance coverage. Collision coverage will pay for the repairs to your car, minus your
deductible, in the event you are involved in an accident.
Personal Injury Protection, commonly called PIP insurance added to your car insurance
coverage will help pay for reasonable and necessary medical expenses for you and your
passengers. While Nebraska state law does not require Personal Injury Protection, you
may want to seriously consider this type of coverage. Personal Injury Protection car
insurance will help with medical expenses, lost wages, and replacement services for any
injuries to you and your passengers if you're involved in a car accident.
You might also want to consider underinsured/uninsured car insurance coverage. This
type of coverage protects you if you or your passengers are injured in an accident caused
by a driver who has no insurance, or is underinsured. Underinsured/uninsured car
insurance coverage will pay for such things as medical expenses, lost wages, other
general damages, and injuries sustained in hit-and-run accidents.
The Nebraska Department of Motor Vehicles uses the phrase proof of financial
responsibility in some of its forms and documents. This means the state wants to see
documentation proving that you have a valid car insurance policy that will cover any
personal or property damages you may cause in a car accident.
If you have amassed too many points on your driving record, or have been convicted of
driving while intoxicated, were involved in a serious accident, or previously failed to
maintain proper car insurance, you may need to file a valid SR-22 Nebraska Certificate of
Insurance to be issued a new driver's license. There are some key things that you should
know if you are looking to purchase Nebraska SR-22 auto insurance.
An SR-22 Certificate of Insurance, simply states that you have proper and valid car
insurance. You're insurance company must mail or personally deliver this document to
the Nebraska Department of Motor Vehicles. The SR-22 form will contain the name of
your insurance company, your car insurance policy number, the effective date of your car
insurance coverage, and the signature of your car insurance company's licensed
representative. If you are required to have a SR-22, the Nebraska Department of Motor
Vehicles will track your car insurance information through a special computer system to
make sure you have adequate proof of financial responsibility.
To obtain more information about an SR-22 Certificate of Insurance, you can call the
Nebraska Financial Responsibility Division at (402) 471-3985.
When purchasing car insurance in Nebraska, it may save you hundreds of dollars a year
in car insurance premiums to do some research. Take the time to shop around and
compare rates and the different types of coverage available.
In addition to shopping for the best rate, shop for the best insurance company as well.
Ask questions such as: How do you determine my Nebraska car insurance rate? What can
I do to get a better rate? Do I qualify for any discounts? What kind of payment plans to
you offer? What is your procedure for filing a claim? You may want to pay close
attention to the car insurance company's answers to these questions, it could help you
determine which Nebraska car insurance company is going to give you the best customer
service, as well as a good rate.
Life Insurance Basics
Buying Life insurance often seems like a daunting and unnecessary task, but neither
statement needs to be true. Buying Life Insurance can be simple, if given the right tools
and the need for life insurance is a matter of financial responsibility.
Before diving into the process of purchasing, it's important to understand which type of
insurance you may need. There are two types of life insurance, Term Life insurance
(temporary) and Permanent life insurance (such as whole or universal). Both types of
policies offer financial benefits for the policy holder or their beneficiary to protect against
death or life-altering accidents. Which type of insurance to purchase is dependent upon
the needs of the insured and the purpose for which you are seeking life insurance.
To better understand which type is best for you, let's take a look at the two types of
insurance and what they offer:
TERM LIFE INSURANCE
Term life insurance is often the easiest and cheapest type of insurance to purchase. Term
Life is an excellent source of added insurance, especially during the work years of life.
The benefits of purchasing term life insurance are it's initial affordability and
Term Insurance can be purchased relatively cheap and is carried for a specified period of
time (referred to as relevant term). This type of insurance is paid, dollar for dollar, there
is no equity and no cash value to the holder. Upon death, the insurance would pay out to
the beneficiary (person designated by insurance holder) the cash benefits. The cash is
often used to cover debts incurred such as mortgage, loans, funerals and college tuition
The fixed term of the insurance is set dependent upon your needs. You can set it for one
year, with a renewable term. The downside is that each year you have to prove
insurability and in general the cost of purchasing the insurance will increase. Once the
policy has reached it's date of expiration, you can opt to renew the insurance, at an
WHOLE LIFE INSURANCE or PERMANENT LIFE INSURANCE
Whole life insurance policies or permanent insurance carries less initial investment as
compared to the cost of Term Life insurance rates. The policies are held over a longer
period of time and often are paid out with death as long as the payments are made and
The downside to purchasing whole life insurance is the overall cost of the insurance vs.
the benefits. In other words, will the amount you pay in premiums be worth the pay-out
benefits when you need them? It's important to get an accurate idea of what the cost vs
payout will be from an authorized insurance provider.
On the upside, whole life insurance increases in value and can often, if needed, be
borrowed from by the insured prior to cashing in the policy. This benefit can often assist
a family during tough financial times.
When deciding which type of life insurance policy suits you best, consider the purpose of
the policy, the cost and the payout. An authorized insurance agent can often help you
decide which policy will best meet the needs of you and your family.
The internet can be a wonderful tool to assist you in comparing rates on various types of
insurance against various companies. This is a great first step to purchasing life insurance,
but should not be the only step.
It's important to do your homework when shopping for life insurance. Like any other
financial investment, knowing the pros and cons of each company can be beneficial in the
long run to prevent surprises when trying to cash in the policy. You can check up on the
rating of insurance companies through a variety of national life insurance rating policies
and can be found on the web.
Car Insurance Best Rates
Most consumers do not bother reading the terms in their insurance policy - they simply
call around for lowest insurance quotes and purchase the lowest bid. In the long run, this
isn't always the best approach, and won't always save the most money. However, let me
assure you, car insurance best rates are achievable. Saving money on car insurance
requires a combination of techniques that improve your insurability, decrease the rate of
insurance for your vehicles, and provide you with a unique advantage when it comes to
purchasing car insurance.
This article will outline seven techniques that will ensure that you receive the lowest
possible car insurance rates.
#1 - Choosing the Best Insurer
Cost is certainly one factor when considering car insurance, but your insurer selection
should be weighted more heavily on reliability. You could easily call a number of
insurance companies, ask for quotes, and simply select the lowest bidder. However, even
if the lowest cost insurer saves you hundreds of dollars a year in premium payments, that
savings does you no good if you find yourself in an accident, needing car repairs or
medical attention, with an unreliable and unresponsive insurance company. A good
company is crucial. It's not just about car insurance best rates.
#2 - Customize Your Policy
Before you begin calling around, it's important that you determine the level of insurance
coverage you need. Not everyone's insurance needs are the same. Some families own two
or three very expensive vehicles, while other families own only older used cars. Some
people are members of AAA, while others are not. The specific terms of a policy should
be determined by your life situation and the value of the items being insured.
#3 - How to Become Highly Insurable
Whether you've already purchased car insurance, or you are getting ready to start looking,
one of the best things you can do to obtain the lowest possible rates is to improve those
things that car insurance companies look at when they calculate your insurance premium.
There are several things you can do in the short term to improve your insurability
standing, and there are also things you can do over the long term to improve it as well.
This section will describe four major elements of this technique to save money on your
#4 - Reduce Your Car's Insurance Rate
Another extremely effective technique to obtain the lowest possible insurance rate is to
improve those things about your car which car insurance companies value the most when
they calculate your insurance premium. There are several things that you can do before
buying a car that will dramatically decrease your insurance premium. If you've already
bought a car, however, and are looking for ways to decrease your existing insurance costs,
there are still methods you can use that will substantially cut your premium costs.
#5 - Gaming the System
In addition to all of the techniques already listed in this article, there are also additional
ways that you can use the insurance industries rating rules and premium calculation
system in ways that will reduce your costs. Again, use the industry's rules to get car
insurance best rates.
#6 - Constantly Update Your Policy
One of the most important things that you can do to keep your insurance premium at a
minimum is to always remember to update your insurance provider of any changes in
your life that can reduce your insurance costs. Forgetting to do this can be very costly.
#7 - Deciding on Liability Only
There comes a point in the life of a car when the decision needs to be made whether or
not it is worthwhile to maintain collision and comprehensive insurance coverage.
Getting Rock Bottom Insurance Rates
If you carefully follow each of the sections outlined in this guide, you are guaranteed to
receive the lowest possible insurance rates for anyone within your calculated risk bracket.
No one should ever overpay for car insurance - especially given the fact that there are so
many insurers in the industry competing for your business.
Most people overpay for car insurance out of sheer laziness. However the consumer that
understands how car insurance works, and is clever enough to take advantage of all of its
loopholes, will save significantly on their premium in the long run.
Wedding Insurance - Cover Your
Wedding insurance is as essential to your wedding planning as the dress. Consider how
much you spent on your car, was it less than the sum you are about to invest in your
wedding? Would you even consider not having adequate car insurance? No? Then why
wouldn't you insure your wedding - when the average cost these days can fall between
two and three times the cost of an average family saloon car?
A wedding insurance policy is comparatively cheap for insurance which covers a wide
range of different parts of your wedding day. Cover can be arranged that gives you
reassurance about the largest disasters (cancellation) through to some parts that may give
minor disruption but not devastating consequences (cars not arriving, for example).
Before deciding on the items that you need insurance cover for, and the value of cover
that you will need, it will be worth investigating a couple of other sources of cover that
may be available to you. If you have sufficient limits on your household insurance policy,
you may find that items such as the wedding gifts, rings and wedding dress/attire are
covered whilst in your home. A call to the insurance broker should be able to confirm
this and/or give you a quote for the extension of cover required to the household
Items purchased or booked for your wedding and paid by credit card will often carry a
level of insurance cover from the credit card provider. In these cases, a wedding
insurance policy may be duplicating cover that you already have. For example, if the
florist went out of business before your wedding day, your credit card supplier would
most likely cover the refund of any deposit or payment made by the card.
When you have considered each of the alternative insurance options available to you, if
you decide that a more comprehensive wedding insurance policy better serves your needs,
start shopping for it as early as possible. Most wedding insurances offer cover on a fixed
scale of fees, providing cover until 24 hours after your wedding date. The sooner you
arrange insurance cover the more reassured you can be about issuing deposit payments to
the various suppliers, etc., so make wedding insurance one of the priorities when you're
making the planning list of items.
When assessing the level of cover you may need, take into account the various items that
come together to make your wedding day:
Wedding Cars / Transport Cover
If the transport fails to show or they go out of business before your wedding day, the
wedding insurance will cover a refund of your costs, enabling you to make alternative
arrangements without incurring additional costs on the budget.
Wedding Rings Cover
The age-old 'joke' of the best man losing the rings - it can happen, and it's not funny! It's
also possible for theft or loss of the wedding rings to happen any time up to your
marriage service. Check that the amount specified in the wedding insurance policy is
adequate to cover the total value of both the bride and groom's wedding rings.
Wedding Flowers Cover
If the florist goes out of business before the wedding day or doesn't arrive with the floral
decorations or buttonholes on the day, although the wedding insurance won't replace
these, it should cover the cost that you have outlaid to the florist supplier. It means that
your last minute replacements won't be an additional cost to your special day.
Wedding Dress / Attire Cover
Accidental damage to the wedding dress ranks amongst the highest of claims made
against wedding insurance policies. Imagine the loss and devastation that you would feel
if a burst water pipe or fire or other unexpected event was to cause loss or damage to your
beautiful gown. Most wedding insurance policies will cover the wedding dress and the
outfits of the main bridal party, but where suits, etc. are to be hired, check who's
responsibility it is for insurance, the supplier or the hirer (most will be the responsibility
of the hirer, but some suppliers will offer their own additional insurance cover).
Wedding Caterer Cover
If the chosen caterer goes out of business or - even worse - fails to show up at your
reception venue on the date, adequate wedding insurance will cover a refund of the large
sum that you have paid to them, leaving you to be able to make emergency alternative
arrangements without suffering the additional inconvenience of extra costs to your budget.
Wedding Reception Venue Insurance Cover
If a last minute disaster prevented you from using the reception venue that you had
booked, fire or flood for example, wedding insurance would cover the last minute
alternative that you had been forced to arrange. If your chosen reception venue were to
close or go out of business the wedding insurance policy would reimburse the payments
you had make, allowing you to choose a different reception venue location without
suffering a financial loss.
Wedding Cake Cover
The extravagant creation of your masterpiece wedding cake will be finished and then
transported to the reception venue. In almost every case this is done by experienced
people and it is successful, but disasters can happen! If your wedding cake isn't delivered,
or anything causes it to be damaged, the wedding insurance policy will cover the cost.
Wedding Photographer and Photography Insurance Cover
A lot of things can happen surrounding your plans and wedding day that are totally
beyond the couple's control; the photographer not turning up, the photographs not being
able to be processed because of technical problems, etc. Adequate protection from
wedding insurance will help alleviate the cost should these difficulties occur. If your
photographs don't turn out, then you have the opportunity to have the bridal party and
many of the guests reassembled and have them re-taken, thanks to your wisdom of
having your wedding day adequately insured against such mishaps.
Wedding Present Insurance
A good wedding insurance policy will reimburse the cost/value up to a specified sum for
damage to, or theft of, wedding presents. One of the higher number of claims relating to
wedding insurance policies is the collapse of tables holding the gifts at the reception, or
accidental damage of more delicate presents such as glass or crystal items.
Wedding Guest Liability Cover
Most wedding insurance policies give a level of liability insurance if someone is injured
at your wedding. The level of cover often has an option to increase the amount should
you need to do so. Some of your suppliers (marriage location, reception venue, etc.) will
carry their own liability insurance, so it may be prudent to check this out before
extending the level of inclusive cover.
Wedding Cancellation Cover
If the bride or groom change their mind or run for the hills, this won't be covered by
wedding insurance! However, if an event beyond your control, such as the death of a
close family member or illness in the family (or of the bride or groom), that causes your
wedding to be canceled or postponed, then the insurance will cover a refund of your
expenditure up to a stated amount. If extreme weather conditions cause cancellation due
to the guests being unable to attend, or the venue being adversely affected, then the
wedding insurance will apply. However, if you are unfortunate enough to have bad
weather on the day it is unlikely that the insurance would cover such circumstances (you
may wish to try a bookmaker!).
Most wedding insurers offer marquee cover as an optional extra. Not all weddings will
need this and those using a marquee should check with the hire company if an additional
level of insurance cover is needed before adding it to the policy.
The months before your wedding day can be quite stressful, while you're trying to get
everything organized and perfectly timed. No one wants to think of things going wrong,
but wedding insurance will give you the peace of mind that your deposits and outlay to
the various suppliers are insured and will be refunded in the event that anything did go
amiss in the period leading to your big day. Wedding insurance will take away some of
the worries that you may have and is a good investment to make.
Types of Insurance - The Basics
The main purpose of insurance is the hedge the risk of loss. The risk-bearing onus is
shifted from the owner of the insured item also referred to as the insured to the insurer. A
premium is paid to the insurer and in return you get a guarantee against larger losses. If a
quantity can be attached to a risk, it can normally be insured.
Auto insurance covers cars, trucks, buses etc. The main purpose of the insurance is to
guard against possible losses incurable as result of road accident as well as liability
arising out of an accident. The insurance can include cover for insured party, insured
vehicle or third parties. Examples are theft, fire or accident damage insurance. Premiums
are based on gender, marital status, age, vehicle type and distance traveled. In terms of
leased vehicles, insurance is an obligated.
Excess is a very common term in the insurance industry. An excess payment refers to a
fixed amount payable every time your insured vehicle is repaired in terms of the
insurance policy. Compulsory excess refers to minimum payment insurer wants from
insured in event of claim. Voluntary excess is an offer by the insured to pay higher
amount of excess to reduce insurance premium. Compulsory excess is the basic excess.
Voluntary excess is added on the basic compulsory amount.
Home insurance covers private homes. The insurance is a combination of personal and
liability insurance protections covering accidents as well as losses that may occur in and
around your home. A single premium is paid to cover all risks. Your premium will be
dependent or calculated on replacement value of the home. Additional items in or around
the home can also be insured and included in the policy.
Special cover required:
Note that some events are excluded from insurance. These are referred to as "Acts of
God". These events call for additional or special coverage attracting separate or increased
Life insurance is dependent upon the death or disability of the insured for benefits to be
paid to the beneficiary. The benefit is usually in form of a lump sum amount. However
funeral expenses and other bills can also be paid in terms of the policy. Premiums either
monthly or in lump sum are payable in return for the benefits to be paid. The insurance
contract has certain inclusions as well as exclusions covering both the insured and insurer.
There are many types of life insurance, such as term and permanent life insurance.
Universal life insurance and whole life insurance are the two most popular forms of
This type of insurance is for coverage of medical expenses. It can be provided by a
private insurer or government programme in individual or group form. Group form is
preferred by companies who would like to give employees Health Insurance as
employment benefit. Disability and permanent or long term care nursing can also be
included or covered by the insurance policy. A monthly premium or tax is paid and in
return their have benefit of medical expense payment with possible inclusion of
medication, hospitalization etc.
Exclusions are applicable where some services are not covered. The insured will have to
carry full cost of these services. Limits do also apply, where services are only paid up to
certain amount the rest will be carried by the insured.
How to Choose and Bargain For an Auto
Insurance is a form of risk management primarily used to protect oneself against the risk
of a contingent loss or something bad happening in the future (unforeseen circumstances).
Insurance has also been defined as the equitable transfer of the risk of a loss, from one
entity to another, in exchange for a premium, and can be thought of as a guaranteed small
loss to prevent a larger, possibly devastating loss. The company selling the insurance is
referred to as the insurer while the insured is the person or entity buying the insurance.
The premium is an amount of money or insurance coverage that you pay once or
regularly for an insurance policy and this charge is usually determined by the insurance
The insurance industry provides protection against financial or physical losses resulting
from a variety of hazards or danger. I remember my friend, James, asking me how
important insurance really is. I didn't bother trying to explain the concept to him until a
day came when his car was badly damaged by a little rock on the side of the road into
which he mistakenly bumped. Luckily for him, the state had made it mandatory for all car
owners to insure themselves against accidents. I guess the compensation he received
afterwards did the explanation for him. By purchasing insurance policies, individuals and
businesses can receive compensation for losses due to car accidents, medical expenses,
fire and storm damage, theft of property, loss of income due to disability or death and lots
If you are a car owner, you probably already know something about car insurance. At
least you may have heard the words premium or deductible. But the real question here
boils down to whether you truly understand the nature, scope and different aspects of an
auto insurance policy as well as how to make a better choice regarding the best coverages.
Securing your first car insurance policy should be a matter of priority even though you
might think otherwise. Car insurance protects one of your first investments, your car.
However, in many cases car insurance can be complicated and often times, new car
insurance shoppers are unable to compare and match up car insurance rates and in turn
fail to garner the financial benefits of discovering the best and affordable car insurance
available to them.
Of course, prices vary by company and you should compare prices thoroughly before you
purchase a policy. The first thing that affects your policy's price is, of course, what kind
of car you drive. Some cars are known to costs more to insure than others. If you
purchase a vehicle that has a high theft rate, your coverage will probably be more
expensive. Essentially, though, your coverage will be based on the value of your car.
Another factor that affects auto insurance costs is where you live. If you live in an area
where there is a high occurrence of accidents or vandalism, insurance will likely cost
more money. For instance, since more cars are damaged in urban areas than in rural areas,
you will probably pay more for insurance if you live in a city. It's a matter of logic here.
How often you drive will also affect your insurance costs. The more you drive, the higher
the chances that there will be an accident. Drivers who have long-distance commutes will
pay more than people who live near their workplace. Meanwhile, if you only use your car
on weekends, your insurance rates should be lower than someone who commutes to work
The final factors that affect the price of auto insurance have to do with your person or
who you are. Basically, your age, sex, marital status and driving record are all taken into
account when you buy an insurance policy. Records indicate that accident rates are higher
for drivers under the age of 25, so if you are young, expect to pay a little more. Also,
accident rates are higher for young and single males. It doesn't really appear to be fair,
but if you are an unmarried 20-year-old male your insurance rates will definitely be
affected (higher). If your driving record is impeccable, though, your rates will be lower.
Obviously, drivers who are prone to accidents or traffic violations will have to pay more
for insurance than other drivers who are considered to be more safety conscious.
Do not be bothered, just in case these cost influences are beginning to scare you as there
are various ways of keeping your insurance rates low.
How then can one influence the cost of auto insurance?
Fundamentally, there are four suggested factors that can keep auto insurance rates down.
Check if you fall into any of the categories below. If you do, you may be able to save
yourself some money on your car insurance regardless of the cost or worth of your
1. Consider buying a car that "looks good" to insurance companies. Most insurance
companies know what kinds of cars could be prone to problems and those that are most
often stolen. If you are still looking at buying a car for yourself, then find out what cars
make this "good list" among auto insurers.
2. Ask insurance companies about special discounts that may be available to you. For an
array of reasons many insurance companies offer discounts to their customers. If you feel
that certain personal factors make you less prone to risk or accidents, then feel free to
bargain and ask insurance companies about specific discounts that may be available for
3. You may also consider sharing driving responsibilities with a group of individuals or
using public transportation to get to work. The less you use your car, the lesser your
insurance will cost you.
4. On a final note, drive cautiously! Insurance companies are not happy to insure
accident-prone drivers. The safer you drive, the less you will have to pay for auto
Insurance - A Good Thing to Have
It's easy to see why you would insure something of value. Insurance protects you against
potential loss. So, why not insure everything? Hmmm ...
If you insure your car, and nothing bad happens to it ... you've still lost the money you
paid for the insurance. If you get in an accident and your car is totaled but it wasn't
insured ... you lose the total value of the car unless you can get someone else's insurance
to pay for the accident. I'm just talking about the "comprehensive" insurance that pays
for damage to your car. Liability insurance for automobiles is different and is required by
law. The idea for liability insurance is you are protecting other people from loss you
might cause them.
Back to automobile comprehensive insurance, though - you want to pay a small amount
of money that you can afford - this is a known payment that you can plan on paying
without any surprises. What you get for these insurance premium payments is protection
from an unexpected sudden financial crisis that would occur if you wreck your
car and it becomes useless. This actually works for anything of value that you want to
protect - cars, houses, boats, snowmobiles, etc. It also works for life insurance protecting
your family from financial problems if the main bread-winner were to die; or health
insurance protecting you from unexpected sudden financial crisis when you or someone
in your family becomes seriously ill or hospitalized.
Before the insurance company pays you any money, certain things need to happen that
cause you a loss. Then you can file a claim to the insurance company that describes the
loss and explains how it was covered by the insurance policy. Once the claim is accepted,
the insurance company will issue payment to help you financially. Insurance companies
get the money for those payments from people who are paying for insurance but aren't
making claims on it yet. And if you're paying for insurance and you aren't filing a claim
for damages, your payment is going to help the person who needs to file a claim.
The insurance company sets the amount of your payments according to the risk you have
for making a claim and the law of averages. Using the car example, if you are a pretty
good driver, you might get classified with a group of clients who are expected to have a
major accident only once every eight years. This would be your risk category. On
average every driver in this category is expected to make premium payments for eight
years between major claims. Usually that works out pretty well for everybody.
I've heard people complain about having their premiums increased because they filed a
claim against the insurance company. That can happen. If you had car insurance in a
risk category expecting the car to be in a major accident every eight years, and the
insurance company allowed a high-risk driver into your risk category, how would you
like that? Maybe that high-risk driver could expect a major accident every four years. If
that driver were allowed into your risk category, you would be paying for their frequent
claims; and they would be paying for your infrequent claims. That wouldn't be fair.
To protect clients against higher-risk clients like this the insurance company will keep
track of several factors they think might change the frequency or size of damage claims
(risk factors). This is done to protect the clients who are not likely to file frequent, or
large, damage claims. For car insurance, having an accident might signal a change in
your driving capability. So having an accident might increase your premium for a couple
of years just in case you are turning into a higher-risk driver. The insurance companies
There are other factors that signal increased risk to the insurance company. These factors
can also cause you to be placed in a category that requires a higher premium. For auto
insurance, you don't need to file a claim to have your premium payment increased. All
you need to do is get a ticket for a moving violation. If your credit score drops, it might
signal the insurance company that you aren't paying attention to things low-risk
customers would. They can interpret this to mean that you aren't attentive in your driving
skills, or you might park you vehicle in a place where it could be damaged. Also, if you
buy a more expensive car you are likely to have larger claims. All these things can
indicate the insurance company might lose money on you if they don't adjust your
This change in risk classification also works in your favor. Insurance claim records
indicate that drivers under the age of 25 are more likely to be involved in accidents than
middle-aged drivers. So, when you have your 25th birthday, your car insurance
premiums are reduced. If you go three years without a moving traffic violation you will
be seen as improving your risk classification and your rates will drop. The insurance
company also sees less risk if you buy a less expensive car (with cheaper repair costs), or
start parking in a private garage instead of on the street.
The calculation of risk is also considered for house insurance. That is why you can get
reduced insurance premiums for having a security system, deadbolts, and fire
extinguishers. For houses, they consider the neighborhood you live in and the types of
claims the insurance industry has received from your neighbors. A neighborhood with a
lot of vandalism can increase the cost of your insurance.
Similar calculations are used for analyzing risk factors for life insurance and health
insurance. The claims history on smokers, people who are overweight, and the elderly
shows them to be a higher risk for the insurance company. People who exercise regularly,
have regular preventive health care, and eat a healthy diet are seen as lower risk than
other people their own age who do not follow those practices.
Life Insurance For Mortgages
Bank Coverage vs. Private Coverage. What you need to know!
So let's get on to a mortgage insurance discussion. Did I say mortgage insurance? Ah yes!
Yes, it's a unique name given to normal, ordinary life insurance, couched under a very
nice sounding name - which makes a whole lot of difference to people wary of "life
insurance." So, they're not buying life insurance-no, no, they're buying mortgage
insurance. I wish there were many more such unique names for good old Life Insurance
which would persuade people to buy life insurance and protect their loved ones and their
Apparently, people do not want to talk about death; so life insurance is the last topic for
discussion unless you get a close call from the Creator, by way of a heart attack or stroke.
Mortgage insurance is not mandatory at your bank, or anywhere for that matter. All you
have to do is sign a waiver and you're off to the races. The waiver releases the lending
institution of its obligations to offer you a plan that would take care of your family in the
event you had a premature death.
Let's get back to the statistics. Out of 1,000 people aged 30, 125 will die prior to the
conclusion of a 25 year mortgage. And surprisingly, despite having this fantastic name to
this very important plan there are thousands of families lacking protection and leaving
their dependent families open to the risk of losing their homes. I am certainly glad that
due to the plans aggressively marketed by the banks, many families are protected. Or else,
there would be thousands of unprotected families who would end up homeless.
If a mortgage is not paid immediately, in the event of your death, it will become a huge
liability to the family.
Choices: Let's visit the choices your family would have to make in such a situation.
1. Will the surviving spouse/partner carry on the entire burden of the mortgage and will
the bank accept the risk? If two incomes together found it difficult to make both ends
meets, how can one income possibly be adequate?
2. The family could sell the house, relocate or rent somewhere else. Will there be a buyer
for the house? What about the cost involved in selling the house? Will there be enough
money after selling or will the family owe the bank?
3. Sell the house and move in with the relatives. Not the best alternative and how many
people have philanthropic, generous relatives willing to take in another family? Not many,
I can bet.
4. It's an accepted fact that for most people their house is their most valuable asset and
they protect it by way of mortgage insurance.
By the way, I'm sure you have heard this statement from a friend saying that someone
they knew had died and that the surviving family does not have any money. You can
immediately conclude that those folks did not have insurance and must have probably
snubbed many insurance advisors like me. If one truly loves his or her family, a mere
$15.00 a month can prevent such an eventuality.
o Why take advice from a bank official, whose experience is not insurance?
Before we discuss the nitty-gritty of the plans marketed by the banks and other lending
institutions, let's get one thing straight. Would you go to your dentist if you are ill? Or,
would you go to your family doctor? True, both are doctors, but their lines of specialty
are totally different. Why, then, would a person take advice from a bank official (whose
expertise is banking and NOT insurance) to purchase protection of his/her most valuable
Don't get me wrong-bank officers may be extremely knowledgeable in the financial
aspects of banking related issues, but insurance issues are far beyond their scope. They
are only doing their duty by offering the mortgage plans available.
Therefore, getting advice and signing an extremely important document which can affect
your entire family's financial future is something you have to take really seriously. An
Insurance Advisor, on the other hand, is qualified to give you better advice on insurance
o Plans offered by an Insurance Advisor provide coverage that remains level for the term
Mortgage insurance plans offered by banks relate to your mortgage balance, and
obviously as your mortgage drops so does your insurance coverage. In this case, if you
are happy about reducing your mortgage, remember that the insurance company is
equally happy because this reduces their liability.
Individually acquired plans are tailor made for you personally and so, if you are healthy,
you get a better rate. Unfortunately, the plans that banks recommend are group plans. It
does not matter how healthy you may be compared to others in the group.
o Plans we offer have premiums guaranteed and cannot be changed by the insurer.
As you might be aware, group plan premiums are generally not guaranteed. Mortgage
insurance plans are group plans.
o Individual plans do not reduce their benefits and so the premium remains the same.
Mortgage insurance plans offered by banks relate to your mortgage balance, and as your
mortgage drops so does your insurance coverage, as mentioned previously. However, the
premiums that the bank charges you remain the same. Does this seem fair?
Most bank plans leave the insurance carrier with loopholes to decline your claim.
o Individual plans will require complete medical check-ups done by qualified medical
professionals, at the time of application, which will save your beneficiaries from
problems later. It also protects your interests and the interests of your beneficiaries at a
later date. Qualified Insurance Advisors will coach you on most medical questions so that
your answers are accurate and appropriate.
Most bank plans can be set up with a few condensed medical questions-which leaves
your bank's insurance carrier with loopholes to decline your claim.
o Our plans do not require you to pay additional PST. The premium offered is the final
figure, no PST surprise.
Premiums quoted by group insurance plans do not include Provincial Sales Tax.
Therefore, just like the rest of your regular purchases PST sneaks in silently to add to
your total. So, when you shop for a price, please take this into consideration. A PST of
8% could buy you a lot of additional insurance coverage OR reduce your cost
With our plans, the premium offered is the final figure-no PST surprise.
o The plans offered by an Insurance Advisor insure both spouses separately, and so,
insurance is paid on both deaths, for instance in a disaster where both the insured die, two
separate death claims in the same amount will be paid, thus doubling the benefit.
Bank mortgage plans are "first to die" plans-i.e. the plans pay and cease when one person
of the two insured dies. Obviously you would agree that that's the purpose of this
insurance. Sure. However, wouldn't you prefer a better option?
For example: a 45 year old male and a 42 year old female insured for a mortgage of
$250,000 "first to die" would pay $49.50 per month. By insuring them separately for two
amounts, the cost would be about $52.00 per month. Wouldn't you agree that it's worth an
additional $2.00 month to double the coverage, so that the beneficiaries receive $500,000?
That's the advice you will receive from a qualified insurance professional.
o The plans an Insurance Advisor offers can generally be converted to a permanent plan,
without the necessity for further medical evidence. So if you develop a medical condition
which would disqualify you for insurance, this feature would be of great importance in
the continuation of your insurance policy, thus protecting your family.
Bank mortgage plans are strictly rental (term) plans and that's about it. You do not have a
o Our plans are traditional life insurance policies, the proceeds of which go to a named
beneficiary tax free. The insurance policies are creditor proof, thus totally negating undue
expenses such as probate fees.
When insurance proceeds from a bank plan are paid towards a property, those proceeds
may be open to probate or creditors.
o With traditional life insurance plans, the choice of coverage amount is always yours
and does not require mortgage documentations.
Again, as the coverage of bank plans relates to your mortgage balance, you do not have a
choice. For instance, if you wanted an extra amount of coverage to protect your family,
you would need to purchase it from elsewhere and unnecessarily end up paying an
additional amount of money by way of policy fees.
o With the plans an Insurance Advisor offers, the choice of using the benefit amount
anyway you choose is yours, and you can make any changes as and when you need. For
instance, when you die, your spouse has the option of whether he/she wishes to pay off
the mortgage in its entirety or not, as per the spouse's needs at the time.
With a bank policy the bank is the beneficiary; your family has no choice.
o Our plans are portable. They are not tied to any property. They are based on your life-
not your house or any other asset.
When you purchase a mortgage insurance plan from a bank, you are confining the
coverage to a particular property; hence, the moving to another property requires another
o Refinancing does not affect the insurance plans that an Insurance Advisor will offer.
Refinancing alters your mortgage balance and so the contract of a bank plan stands void.
There will be a rate increase in line with your current age, with additional underwriting.
You in fact may not be able to get insurance again as your health conditions may have
o We offer you choices of coverage ranging from 5 to 21 critical illnesses with the
flexibility of purchasing the amount of coverage that you can afford. Also, you can claim
two benefits separately-i.e. if the insured gets a critical illness and claims, then dies after
the claim is paid, the death benefit also gets paid.
Some institutions generally add the critical illness benefit to your life insurance coverage,
giving you no choice with regard to the amount you may wish to purchase according to
what you can afford. It also does not allow you to claim two benefits-i.e. if you collect a
claim on a heart attack which is a critical illness benefit and you survive, then the
contract ends. Also, the number of critical illnesses covered is limited.
o A qualified Insurance Advisor can draw out a plan which allows you the option to stop
paying premiums and still continue your policy.
Bank mortgage insurance plans are term products which have no cash values, and so, if
you stop payments, the policy will immediately lapse.
o Most insurance agents will service you effectively and most of all take care of a claim,
personally assisting your family when in dire need. Most Insurance Advisors' actions will
definitely speak better than bank TV commercials. They will assist you in the creation of
an estate and certainly will meet you one-on-one and at your choice of venue or at your
home. Basically you have hired the services of a professional in this line for the rest of
the term of the plan you have purchased.
Can you recall any bank making personal contact with you such as sending you a
birthday card, a calendar, newsletters, or even making a courtesy call, etc.? The only time
you would hear from them is possibly at the time of renewal, which would mean an
additional sale for them.
It's worth noting that traditional life insurance policies from an Insurance Advisor offer a
discount of approximately 9 per cent if the premium is paid annually, thus reducing the
cost significantly. This discount factor does not arise with a bank's mortgage insurance
plans, which are generally paid on a monthly or biweekly basis.
Business Insurance For Startups
Your business is ready to launch, so what insurance do you buy? Money is tight and it is
your hide on the line. This article focuses on the insurance choices faced by entrepreneurs
working to get a new business running. Three main categories to consider: 1. Required
Insurance, 2. Critical Risks, 3. Economic Risks.
For a new business entrepreneur, a core issue is the insurance required to open the
business. These requirements can come from multiple sources.
Landlord - Often a Landlord requirement for a leased location is an early insurance
barrier. A typical office, store or other commercial space lease has several clauses that
trigger insurance requirements to protect your lessor. Your landlord will want your
business to protect him from lawsuits stemming from your operations with Public
Liability coverage. Another frequent landlord requirement is to have property coverage
for any tenant building improvements. An Indemnity or Hold Harmless Clause will force
your insurance company to waive any claim payment collection from your landlord even
if they contributed to a loss. Your landlord will also want to be named as an Additional
Insured to have access to your insurance policy and to be notified if the policy is
cancelled. Before you sign your commercial lease, have your insurance agent read it and
prepare a quote to consider.
Bank Loan - A bank loan is also a source of initial insurance requirements. If you borrow
with your business assets as collateral, your bank will want it protected. Your banker will
want adequate insurance to cover their risk and to be named as a Loss Payee. This forces
the insurance company to settle any claim with approval from your banker and also to
provide notice if the insurance is cancelled.
Jobsites - Construction trades often have specific jobsite requirements. If you are an
artisan subcontractor, these requirements are set by the General Contractor or Jobsite
owner. Most construction jobs will require General Liability Insurance. Other
requirements can include Business Auto Insurance and Worker's Compensation. The
bigger the job, normally, the more intense are the insurance requirements. Before to start
to work, get a copy of the insurance requirements and have your insurance agent quote
what is needed. Be very wary of any job or General Contractor that is not upfront with
these requirements. They will hold your paycheck until the insurance requirements are
Government - Legal requirements come up most often with business vehicles. In Texas,
there is a minimum auto liability requirement. For larger vehicles, special types of
vehicles or passenger carrying vehicles, much higher legal requirements are imposed and
special state filing requirements must be met. In Texas, Worker's Compensation is
voluntary but most other states impose this as a legal requirement for business owners.
State licenses for some trades will impose liability insurance coverage and reporting
Once the required insurance is handled, the next focus should be on the risks that are so
critical that, without insurance protection, they can destroy the business. Protection for
some of these risks may be already in hand with the insurance protection that was
required. However, you should still review your overall situation and identify risks that
you can't afford to take and can be offset with an insurance contract.
Perhaps you need higher liability limits than are required for your business to be a safe
investment. Maybe an asset is so expensive that replacing it would bankrupt the business.
Even though it is not required in Texas, Worker's Compensation can be critical protection
from the huge risk of an employee being hurt at work. Lawsuits can come from many
potential directions. From which risks does your business need liability protection? A
legal review from your business lawyer can help identify points of lawsuit venerability.
Even if you cannot fund this added protection at business opening, you should strive to
purchase insurance for these critical risks as soon as possible. Until you are able to offset
your business-ending risks with insurance protection, your new business will not be a
The third priority is risks that you want to insure because the protection is a good value.
Why take a substantial risk, even if you can survive the loss, when you can offset the risk
with affordable insurance? Often, the economic risk worth insuring is a business asset
like equipment, inventory or vehicles. Consider the trade-off over a reasonable length of
time. Ask yourself: is it better to pay an insurance premium and be protected or is it better
to save the insurance cost and self-insure for a potential loss? A high property deductible
can be a good strategy by taking the smaller risks yourself and shifting only the large
asset risks to an insurance company.
Your cash flow may not be sufficient to buy protection for economic risks early but have
your list ready to gradually add this productive coverage as you are able. Your long-term
profitability will be improved by prudent use of insurance protection for your important
Consideration When Insuring Your
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When running a business you will want to ensure that you have considered all
possibilities of protection and insurance policies available. If you have your own
premises, like insuring your own home, you should have buildings insurance. If you rent
your premises your landlord should provide the buildings cover. You will also need to
ensure that you have covered the contents of your business.
Depending on the type of your business, you may need your contents insurance to cover
items such as stock, machinery and all other contents including office, furniture and other
equipment which would not be covered under your buildings insurance. When buying
contents insurance you will have a choice of either replacement as new insurance or
indemnity insurance. Most business owners choose indemnity cover. This cover deducts
the cost of any wear and tear when settling a claim. Contents are usually only insured for
theft as long as there has been a forcible and violent entry or exit, so would not cover any
theft if one of your employees or ex-employees still had key access. Some content
insurance policies will have an upper limit for the amount of cash insured on site and
again depending on your type of business, you may need to look at buying a specialist
insurance policy to cover greater amounts of cash.
Specialist insurance policies will offer different business different levels of cover to suit
their needs. As we briefly mentioned, if you deal with larger amounts of cash, you will
need to ensure that you purchase a loss of cash insurance which will cover an agreed limit
for the loss of money and will also cover the money if it is in transit to and from the
business premises as well as on site. There is also a fidelity guarantee insurance which
covers you as a result of loss of money or stock from any staff dishonesty. You can also
purchase goods in transit insurance which will cover the cost of any goods which are
damaged while being moved. There is also commercial legal insurance which would
cover legal expenses in certain circumstances or credit insurance which can insure you
against your debtors if they are unable to pay or go bankrupt. You may need to consider
specialist insurance for machinery called an engineering insurance or tradesman's tools
insurance to cover their tools. You could insure any of the glass against any accidental
damage. There is also professional indemnity insurance which is an insurance policy to
cover you against any compensation claims against if you have been negligent. There is
also a business interruption policy which will insure your business against any loss of
profit or higher overheads resulting for example from damaged machinery.
There are also specific insurance policies for covering directors and key personnel as well
as all employees for travel, life and health insurances as well as specific and specialist
motor insurance policies to cover your vehicles or employees' vehicles for business use.
If you work from home, you will need to ensure that you have adequate business cover
available. Standard household insurance policies will not cover for any business use.
So depending on the type of your business there is many different insurance policies
available to ensure that you cover and insure your business adequately. It is best to
discuss all your requirements with specialist business insurance policies to ensure that
you get insurance policies tailored to your needs and you are covered as you expected. It
is always beneficial when seeking business insurance that you get a couple of quotes
from different insurers. As well as cost you may want to consider their level of service,
especially if you have to make a claim, no claims bonus, 24 hour legal advice and
emergency help lines and the excess levels (the amount you will have to pay towards
There are also various policies on liability insurance, insurance policies to protect you if
an incident arises and you or your business can be held legally responsible for it
including the compulsory employers' liability insurance.
As we know insurance can be expensive although essential compared to the cost and risk
of having no insurance, but you can reduce your company's risk which can help reduce
the insurance premiums by having adequate risk and safety audits on your business and
its premises as well as health and safety hazards and regular servicing of your machinery.
Types of Insurance Coverage That
Protect Small Businesses
By Nate Rodnay
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Running a small business is all about risks and optimism. Small businesses generally lack
smooth credit flow, constant innovation, smart business management, which are
important to ensure their survival. Adding to that, increased competition from large
corporations in today's globalized world is making it difficult for them to survive and
sustain. Today, more than ever, they are prone to risks and closures.
A comprehensive package of insurance essential for all businesses as it ensures protection
and security. It can be a powerful tool in financial security for a small business. The main
purpose of insurance is to cover a risk that a small business cannot afford (at the cost of
small premiums, which they can afford easily). They can save hundreds, sometimes even
thousands of dollars if their owners spend some time to look at some small auxiliary
things like insurance policies.
Types of insurance coverage:
Although, insurance needs vary widely from one business to another, here are some
important policies that a business owner would want to consider in order to protect
Business property insurance
Business property insurance is a broad form of coverage that protects a small business
from a wide variety of losses including damage to building that houses business, tables,
desks, chairs, equipment etc. due to natural disasters such as earthquakes or floods. A
well-structured all risk policy can cover all the equipment (both software and hardware),
valuable records and even loss of income.
There can be many things that a small business can lose and that too in seconds. None of
the small business owners running a restaurant, lodging, retail outlet, etc. will ever forget
the destruction caused by 2009 Great Britain and Ireland floods. Many small business
owners learnt that in a blink of an eye, everything of their business can get destroyed.
Liability insurance is an important form of coverage in today's litigation-looped world.
Typically, there are four types of liability insurance, which include:
General liability insurance: It is the most common form of liability insurance. This type
of insurance covers damage to property or injuries suffered by third party (customers,
vendors or visitors) as a result of negligence of the employees.
Somebody, be it a customer or a vendor could trip and fall due to torn or folded carpet
and suffer a serious injury. The person may need a surgery which might cost the business
owners some hundreds or thousands of dollars. It may not be a major issue for a large
business, but for a small business, arranging huge amounts on the spot may risk the
normal functioning of the business.
Errors and omissions insurance: Also called as professional liability insurance, errors
and omissions insurance is essential for service based businesses. It protects professionals
from personal claims against them for causing harm while performing their duties.
Professionals, who require high degree of standards or care such as doctors, financial
advisors, attorneys, accountants, engineering consultants, realtors, dentists and others,
require this type of insurance.
Product liability insurance: This type of insurance is very important for small
businesses involved in manufacturing. It protects the business if an item manufactured is
responsible for harming (accident, injury, or death) the user.
Employment practices liability insurance: Sometimes dissatisfied employees bring
inappropriate claims asserting discrimination (age, sex, race, disability, etc.), sexual
harassment, wrongful termination and other employment-related issues. Employment
practices liability insurance provides protection to a small business against these claims
made by employees, former employees and even potential employees.
Excess liability insurance, also known as Umbrella liability insurance, provides
additional coverage beyond that of an underlying policy. It provides coverage for medical
costs or other claim payments that can exceed the amount of liability insurance.
Generally, employer is responsible for the injuries that occur to employees at work, so
he/she should take care of the employees. Even a small business employing just one
person should have a workers compensation insurance coverage. It provides coverage for
medical expenses and reimburses the lost wages when employees get injured at work.
Business income insurance
Business income insurance is disability coverage for small businesses. Business
interruption ensures that all the employees get paid when the business cannot operate
temporarily as a result of a covered loss. It also covers business operation expenses and
profits that would have been earned until the business get back to its pre-loss state.
Automobile insurance is compulsory for a small business if it uses automobiles such as
cars or trucks. It provides coverage for damage or theft and also covers third party bodily
injury or property damage claims.
Life insurance is important for small businesses which have two or more owners. In the
event of the death of a business partner, the life insurance policy funds the buy-sell
There are some other types of insurance policies, which can assist small business owners
such as health insurance for employees, certificate of insurance to the landlord (for rented
or leased office spaces) to ensure that the business will not be closed overnight.
The list of insurance policies mentioned above may look hefty, but it is not necessary for
a small business to have all of them. As a smart business owner, one has to approach one
of the frontline insurance brokerage houses to evaluate the requirements and prepare a
comprehensive insurance policy that best suits his/her business.