How it Works
Term insurance is the most straightforward form of protection. You generally pay premiums on a monthly or annual basis and your family is protected for that "term". State Farm offers a variety of term products to fit your needs, time frame, and budget.
Typical Uses:
* Help provide for a family's loss of income.
* Cover short- term debts and needs.
* Provide additional insurance protection during the child raising years.
* Provide longer term protection to help pay off a mortgage, or to help pay for a college education.
Term Life Policies
Select Term Life Insurance
Select 10, 20 or 30 years of coverage and a guaranteed benefit. The affordable premiums are level for the initial policy term. The policy is guaranteed to renew up to age 95. Once past the level premium period, premiums will increase annually.
Features:
* Guaranteed renewable to age 95.
* Coverage starting at $100,000
* Convertible to a permanent policy regardless of health, subject to age limits as stated in the policy.
Return Of Premium
Return of Premium Term offers you coverage with a level premium payment for 20 or 30 years, whichever you choose. If you outlive that premium period, the policy premiums you've paid will be returned to you. The policy is guaranteed to renew up to age 95. Once past the level premium period, premiums will increase annually.
Features:
* All premiums paid will be returned at the end of the 20 or 30 year period as long as the insured is living, and the policy is still in force.
* Coverage starting at $100,000.
* Guaranteed renewable to age 95, subject to age limits as stated in the policy.
* Convertible to a permanent policy regardless of health, subject to age limits as stated in the policy.
Mortgage Life 15 & 30
Mortgage Life 15 & 30 is designed to provide funds for the repayment of a residential mortgage in event of premature death. After the first 5 years, the death benefit, which is meant to behave similar to your mortgage, decreases over the life of the policy. It is sometimes called a "decreasing term" policy.
Features:
* Coverage is available for 15 or 30 year periods.
* You choose the amount based on your mortgage balance.
* $50,000 minimum coverage amount.
* Convertible to a permanent policy regardless of health, subject to age limits as stated in the policy.
5 Year Term Life
Provides affordable life insurance protection for covering any short-term life insurance need you may have. You have the right to renew for an additional 5 year term up to age 85 (age 80 in NY), though premiums will increase with age.
Features:
* Guaranteed renewable to age 85 (age 80 in NY).
* $50,000 minimum coverage.
* Convertible to a permanent policy regardless of health, subject to age limits as stated in the policy.
Showing posts with label insurance. Show all posts
Showing posts with label insurance. Show all posts
Sunday, September 11, 2011
Wednesday, September 7, 2011
Term Life Insurance for Natural Disasters
Mother Nature seems to be quite upset this year. Already we’ve seen major earthquakes, unprecedented tornado activity, uncontrollable wildfires and an ominous beginning to the hurricane season. Below are just a few of the many natural disasters 2011 has seen:
Great East Japan Earthquake: A 9.0 jolt off the coast of Japan causing a major tsunami and the meltdown of three nuclear reactors at the Fukushima Nuclear Power Plant. The Japanese Police Agency has confirmed 15,780 deaths, 5,929 injuries and 4,122 people missing.
Tornadoes: There have been 1,764 tornadoes reported so far this year in the US. An estimated 556 people have died worldwide due to tornadoes.
Texas Wildfires: Wildfires have already scorched an estimated 3.6 million acres and counting. Thousands of homes have been destroyed throughout the state.
Perhaps we are simply experiencing “weather amnesia” due many recent decades of relatively few major natural disasters. The world has certainly experienced many catastrophic natural disasters throughout history, with the following being some of the more notable.
1900 - Galveston, Texas: A Category 4 hurricane killed 8,000 people.
1925 - Missouri, Indiana, & Illinois: The deadliest tornado on record ripped through 3 states, killing 625 people and injuring more than 2,000.
1928 - Okeechobee, Florida: A Category 5 hurricane killed a total of 4,078 people, many in South Florida.
1931 - China: Massive flooding of the Yellow and Yangtze rivers killed nearly 4 million people.
1937 - Ohio/Mississippi Valley: Flooding killed 250 people.
1938 - New England: The Great Hurricane of 1938 was a Category 3 storm that killed close to 800 people.
1950 - 1957 - Texas: Severe drought caused 244 out of 254 counties to be declared federal disaster areas
1970 - Bangladesh: A tropical cyclone killed an estimated 300,000 - 500,000 people.
Whether or not these recent natural disasters are influenced by man-made global warming is a hot topic. But regardless of the cause, it is essential to protect your loved ones from Mother Nature’s wrath. Most term life insurance policies cover death due to natural and accidental causes, severe weather included.
So if Mother Nature continues on her current path of destruction, try to get out of her way and be sure your term life insurance policy carries sufficient coverage for your family.
Great East Japan Earthquake: A 9.0 jolt off the coast of Japan causing a major tsunami and the meltdown of three nuclear reactors at the Fukushima Nuclear Power Plant. The Japanese Police Agency has confirmed 15,780 deaths, 5,929 injuries and 4,122 people missing.
Tornadoes: There have been 1,764 tornadoes reported so far this year in the US. An estimated 556 people have died worldwide due to tornadoes.
Texas Wildfires: Wildfires have already scorched an estimated 3.6 million acres and counting. Thousands of homes have been destroyed throughout the state.
Perhaps we are simply experiencing “weather amnesia” due many recent decades of relatively few major natural disasters. The world has certainly experienced many catastrophic natural disasters throughout history, with the following being some of the more notable.
1900 - Galveston, Texas: A Category 4 hurricane killed 8,000 people.
1925 - Missouri, Indiana, & Illinois: The deadliest tornado on record ripped through 3 states, killing 625 people and injuring more than 2,000.
1928 - Okeechobee, Florida: A Category 5 hurricane killed a total of 4,078 people, many in South Florida.
1931 - China: Massive flooding of the Yellow and Yangtze rivers killed nearly 4 million people.
1937 - Ohio/Mississippi Valley: Flooding killed 250 people.
1938 - New England: The Great Hurricane of 1938 was a Category 3 storm that killed close to 800 people.
1950 - 1957 - Texas: Severe drought caused 244 out of 254 counties to be declared federal disaster areas
1970 - Bangladesh: A tropical cyclone killed an estimated 300,000 - 500,000 people.
Whether or not these recent natural disasters are influenced by man-made global warming is a hot topic. But regardless of the cause, it is essential to protect your loved ones from Mother Nature’s wrath. Most term life insurance policies cover death due to natural and accidental causes, severe weather included.
So if Mother Nature continues on her current path of destruction, try to get out of her way and be sure your term life insurance policy carries sufficient coverage for your family.
Monday, September 5, 2011
[Insurance] Auto Insurance
What Is Auto Insurance?
For car owners, auto insurance is not just an option, but rather it is a legal necessity. If you get into an accident, or if your car is stolen or damaged, you need insurance so that repair costs or the loss will not be too heavy a burden.
So what really is this auto insurance? Is it an easy way to get easy money in just an instant? Or is it just another problem that will just cover up anothaer one in times of need?
The first time I read about auto insurance information online, I felt it’s a way to get a rush of money so easily, in a flash. Well it sounds cool but I never knew that auto insurance would involve a lot of things.
Having auto insurance will essentially cover up for financial losses in certain instances. Coverage will usually be in the following forms:
1. Property coverage – payment received from damages and theft
2. Liability coverage – payment for accident related injuries and property damage.
3. Medical coverage – payment for injuries, medical operation cost, rehabilitation, funeral expenses.
In other words it is one means to get yourself secured, whatever happens to you or your car.
For car owners, auto insurance is not just an option, but rather it is a legal necessity. If you get into an accident, or if your car is stolen or damaged, you need insurance so that repair costs or the loss will not be too heavy a burden.
So what really is this auto insurance? Is it an easy way to get easy money in just an instant? Or is it just another problem that will just cover up anothaer one in times of need?
The first time I read about auto insurance information online, I felt it’s a way to get a rush of money so easily, in a flash. Well it sounds cool but I never knew that auto insurance would involve a lot of things.
Having auto insurance will essentially cover up for financial losses in certain instances. Coverage will usually be in the following forms:
1. Property coverage – payment received from damages and theft
2. Liability coverage – payment for accident related injuries and property damage.
3. Medical coverage – payment for injuries, medical operation cost, rehabilitation, funeral expenses.
In other words it is one means to get yourself secured, whatever happens to you or your car.
Thursday, September 1, 2011
Honesty is the Best (Insurance) Policy
Honesty is the Best (Insurance) Policy, Little white lies were supposed to be harmless until you were found out. However, what if there were 11 million white lies done each day? That’s the number of car drivers who will not tell the truth (read: lie) to avoid having their claims rejected.
The survey done by moneysupermarket.com further details it. According to the survey, the car owners found it more important not jeopardizing their car insurance rather than being honest with their circumstances.
When asked what they would do in the event that they left their car unsecured and it was broken into, a third of motorists would said that they would keep the truth from their insurer for fear that they would not be able to claim on the insurance; another third said they would tell the truth, and the final third were undecided about what course of action they would take.
If ever they were found out, this would push the price of for other motorists. And their claim would be denied as well.
The survey done by moneysupermarket.com further details it. According to the survey, the car owners found it more important not jeopardizing their car insurance rather than being honest with their circumstances.
When asked what they would do in the event that they left their car unsecured and it was broken into, a third of motorists would said that they would keep the truth from their insurer for fear that they would not be able to claim on the insurance; another third said they would tell the truth, and the final third were undecided about what course of action they would take.
If ever they were found out, this would push the price of for other motorists. And their claim would be denied as well.
Sunday, August 28, 2011
What Is A Fixed Annuity?
What is a Fixed Annuity? An annuity is a contract from an insurance company to pay money in the future. The company guarantees a fixed rate of return, usually based on some underlying bond crediting rate. The contract is between the insurer and the owner of the annuity contract.
Annuities are used to provide a future benefit in the form of a stream of payments. These payments are made within one year, in the case of an Immediate Annuity. They may also take place at some future date, more than a year, as in a Deferred Annuity.
A Fixed Annuity differs from Variable Annuities because the insurer backs the interest rate earned. A Variable Annuity permits the owner to invest the payments in the market for a potentially higher return. This also means that the owner of a Variable Annuity has a substantially higher investment risk. As such, Variable Annuities are registered security products; fixed annuities are not. One fixed annuity, the equity indexed annuity is also not considered a security.
Fixed Annuities have two distinct phases: accumulation and annuitization. During the accumulation or build-up phase, payments are made and grow on a tax-deferred basis. When the owner decides to receive income, the annuity is "annuitize" or paid-out. Payout can take place all at once or over years based on the life of an annuitant. The annuitant is similar to insured in a life insurance policy.
Annuities are often compared to mutual funds and other investment products. This is a mistake because there are stark differences between the two. To start, Fixed Annuities are not investment products. They provide a way to defer income for a period of time. Their guaranty return is unique and not found with mutual funds that face market risk. A Fixed Annuity has mortality and expense charges that are not found in investment products.
An initial payment into an annuity can be made all at once or over a series of period. These are single pay and fixed pay annuities respectively. Annuities enjoy tax advantages during the accumulation phase and should not be used until age 59 and a half. Taking money out prior to that age for purposes other than a special need may result in penalties and fees. Many Fixed Annuity contracts have what are known as surrender charges. A surrender charge is a declining fee, based on the number of years money is held. They can be as high as 30 percent and last up to 20 years.
Fixed Annuities are useful in planning for such life events as retirement. They may also be used to distribute lump sum payments such as inheritances or lawsuits. These are special Fixed Annuities known as structured settlement annuities. A Fixed Annuity gives ease of mind to a person who is uncertain about the market. They tend to be competitive with bank certificates of deposit but again are unique products.
When considering the purchase of a Fixed Annuity contract you should consult a licensed insurance agent or financial adviser. A competent agent or counselor can provide you with comparative information and help determine the appropriate product. A Fixed Annuity may be valuable addition to your product holdings.
When it comes to a fixed annuity there are a number of things to consider, Is an immediate or equity indexed annuity the way to go? Visit the site for more details.
Source
http://www.articlesoninsurance.com/what-is-a-fixed-annuity/
Annuities are used to provide a future benefit in the form of a stream of payments. These payments are made within one year, in the case of an Immediate Annuity. They may also take place at some future date, more than a year, as in a Deferred Annuity.
A Fixed Annuity differs from Variable Annuities because the insurer backs the interest rate earned. A Variable Annuity permits the owner to invest the payments in the market for a potentially higher return. This also means that the owner of a Variable Annuity has a substantially higher investment risk. As such, Variable Annuities are registered security products; fixed annuities are not. One fixed annuity, the equity indexed annuity is also not considered a security.
Fixed Annuities have two distinct phases: accumulation and annuitization. During the accumulation or build-up phase, payments are made and grow on a tax-deferred basis. When the owner decides to receive income, the annuity is "annuitize" or paid-out. Payout can take place all at once or over years based on the life of an annuitant. The annuitant is similar to insured in a life insurance policy.
Annuities are often compared to mutual funds and other investment products. This is a mistake because there are stark differences between the two. To start, Fixed Annuities are not investment products. They provide a way to defer income for a period of time. Their guaranty return is unique and not found with mutual funds that face market risk. A Fixed Annuity has mortality and expense charges that are not found in investment products.
An initial payment into an annuity can be made all at once or over a series of period. These are single pay and fixed pay annuities respectively. Annuities enjoy tax advantages during the accumulation phase and should not be used until age 59 and a half. Taking money out prior to that age for purposes other than a special need may result in penalties and fees. Many Fixed Annuity contracts have what are known as surrender charges. A surrender charge is a declining fee, based on the number of years money is held. They can be as high as 30 percent and last up to 20 years.
Fixed Annuities are useful in planning for such life events as retirement. They may also be used to distribute lump sum payments such as inheritances or lawsuits. These are special Fixed Annuities known as structured settlement annuities. A Fixed Annuity gives ease of mind to a person who is uncertain about the market. They tend to be competitive with bank certificates of deposit but again are unique products.
When considering the purchase of a Fixed Annuity contract you should consult a licensed insurance agent or financial adviser. A competent agent or counselor can provide you with comparative information and help determine the appropriate product. A Fixed Annuity may be valuable addition to your product holdings.
When it comes to a fixed annuity there are a number of things to consider, Is an immediate or equity indexed annuity the way to go? Visit the site for more details.
Source
http://www.articlesoninsurance.com/what-is-a-fixed-annuity/
Dog Insurance
You should always have good dog insurance coverage so in case your pet has something wrong you can have them treated. You might be surprised to find out that pet coverage is not that expensive so when your dog needs to go to the vet you can. If your loved one has something wrong with them a trip to the veterinarian can get very expensive. Having proper insurance will keep you from worrying about whether you can pay for your dog to have surgery or not. You should feel confident and secure that whatever your pooch needs the insurance coverage will take care of them.
The good news is that there are now treatments available for many illnesses and ailments that dogs can experience. However, this treatment is certainly not cheap. If something should happen to our beloved pet then it is our responsibility alone to pay for the cost of the treatment. And for those who can't afford thousands of dollars at a time, pet insurance is definitely the way to go.
You may want to check with your insurance agent and see if they offer any type of pet insurance that you can combine with your other insurance's that you already have. In some cases you can combine multiple insurances so that you can save money. We all treat our pets as though they were our children and we would make sure our children have proper health insurance. You should also do the same for your dog because you never know when they may have something happen with them and need to be taken to the hospital. You can be assured with proper insurance that anything that happens to them will be covered.
Pet insurance costs are subject to both annual premiums and deductibles, just like for humans.
Premiums will vary based on:
Policy type - emergency care only, routine care only, comprehensive.
Dog's breed - some breeds are more prone to problems and/or injuries.
Dog's age - because puppies need so many vaccinations and older dogs often need expensive medications, policies for those dogs can be more pricey.
Dog's health - including pre-existing conditions.
Dog's lifestyle - a house pet is generally at lower risk of injury than a hunting or working dog.
Multi-pet discounts may be available.
Different insurance companies can affect the price as well.
Deductibles can vary as well, though roughly $100 is average.
Keeping all of these things in mind, it is important to explore your options regarding dog medical insurance and to do so in a timely manner. Both your bank account and your best friend will appreciate it.
Source
http://www.articlesoninsurance.com/dog-insurance/
The good news is that there are now treatments available for many illnesses and ailments that dogs can experience. However, this treatment is certainly not cheap. If something should happen to our beloved pet then it is our responsibility alone to pay for the cost of the treatment. And for those who can't afford thousands of dollars at a time, pet insurance is definitely the way to go.
You may want to check with your insurance agent and see if they offer any type of pet insurance that you can combine with your other insurance's that you already have. In some cases you can combine multiple insurances so that you can save money. We all treat our pets as though they were our children and we would make sure our children have proper health insurance. You should also do the same for your dog because you never know when they may have something happen with them and need to be taken to the hospital. You can be assured with proper insurance that anything that happens to them will be covered.
Pet insurance costs are subject to both annual premiums and deductibles, just like for humans.
Premiums will vary based on:
Policy type - emergency care only, routine care only, comprehensive.
Dog's breed - some breeds are more prone to problems and/or injuries.
Dog's age - because puppies need so many vaccinations and older dogs often need expensive medications, policies for those dogs can be more pricey.
Dog's health - including pre-existing conditions.
Dog's lifestyle - a house pet is generally at lower risk of injury than a hunting or working dog.
Multi-pet discounts may be available.
Different insurance companies can affect the price as well.
Deductibles can vary as well, though roughly $100 is average.
Keeping all of these things in mind, it is important to explore your options regarding dog medical insurance and to do so in a timely manner. Both your bank account and your best friend will appreciate it.
Source
http://www.articlesoninsurance.com/dog-insurance/
Sunday, August 21, 2011
How Can You Choose Pet Health Insurance For Your Particular Pet?
There are many factors that may come into play when choosing the best pet health insurance for your pet. You must balance between providing the most loving and responsible care possible for your pet but keep the costs within your budget. Let's examine some of these factors.
Is your pet too young or too old for the best pet health insurance? Some insurance companies will not insure animals under a year old so that inherited conditions can manifest making true health conditions apparent. Similarly, animals that are older are sometimes not insurable as they may have had treatment for a condition that can re-occur or are expected to have increasingly frequent conditions develop. Be sure to check on any age restrictions before signing up.
Will the breed of your pet preclude obtaining the best pet health insurance? Application for the pet insurance may be denied if certain characteristics are known to produce conditions or behaviors that could cause an unusually large number of claims. Large dog breeds that are pre-disposed to hip dysplasia fall into this category. Some companies will not cover Shar Pei's as they can have a number of health issues. Dog breeds that are well known to develop aggressive behaviors may not be covered. The legal adage is 'every dog gets one free bite'! After that the owner is liable.
The best pet health insurance offers a variety of plans to fit your pet. After taking into consideration the age and breed of your pet, what kind of circumstances to you feel you will need to have covered by insurance? Do you want just emergency services covered in case of an accident? Do you want surgeries such as spaying and neutering covered? What about normal maintenance such as vaccinations, heart worm test and treatments? Each of these variables will have a different price and will therefore effect your budget.
What can you expect from your insurance carrier in terms of their payments on your claims? Is there a deductible that must be met before their payments commence? Do they have a co-pay available for office visits, etc? Some may offer a flat fee for certain procedures or may pay a percentage of the charges from your veterinarian. Also there may be a maximum payout per year or per pet that you should know about. As you can see, there are many things to consider in choosing the best pet health insurance and good research will pay off in great care for your pets at a price you can afford.
Sharon Brown lives on the Central Coast of California and loves her pets. She does research in many areas of the Pet Industry as well as Senior Education and the Environment.
Source
http://www.articlesoninsurance.com/how-can-you-choose-pet-health-insurance-for-your-particular-pet/
Is your pet too young or too old for the best pet health insurance? Some insurance companies will not insure animals under a year old so that inherited conditions can manifest making true health conditions apparent. Similarly, animals that are older are sometimes not insurable as they may have had treatment for a condition that can re-occur or are expected to have increasingly frequent conditions develop. Be sure to check on any age restrictions before signing up.
Will the breed of your pet preclude obtaining the best pet health insurance? Application for the pet insurance may be denied if certain characteristics are known to produce conditions or behaviors that could cause an unusually large number of claims. Large dog breeds that are pre-disposed to hip dysplasia fall into this category. Some companies will not cover Shar Pei's as they can have a number of health issues. Dog breeds that are well known to develop aggressive behaviors may not be covered. The legal adage is 'every dog gets one free bite'! After that the owner is liable.
The best pet health insurance offers a variety of plans to fit your pet. After taking into consideration the age and breed of your pet, what kind of circumstances to you feel you will need to have covered by insurance? Do you want just emergency services covered in case of an accident? Do you want surgeries such as spaying and neutering covered? What about normal maintenance such as vaccinations, heart worm test and treatments? Each of these variables will have a different price and will therefore effect your budget.
What can you expect from your insurance carrier in terms of their payments on your claims? Is there a deductible that must be met before their payments commence? Do they have a co-pay available for office visits, etc? Some may offer a flat fee for certain procedures or may pay a percentage of the charges from your veterinarian. Also there may be a maximum payout per year or per pet that you should know about. As you can see, there are many things to consider in choosing the best pet health insurance and good research will pay off in great care for your pets at a price you can afford.
Sharon Brown lives on the Central Coast of California and loves her pets. She does research in many areas of the Pet Industry as well as Senior Education and the Environment.
Source
http://www.articlesoninsurance.com/how-can-you-choose-pet-health-insurance-for-your-particular-pet/
Lower Your Teen's Car Insurance Rates
Prepare for the anxiety attacks now, before your teenager gets their drivers license. Chances are that they will want to spend some time behind the wheel of your car as you worry over their safety and skyrocketing auto insurance premiums. It is statistically proven that teenagers are far more likely to be involved in a collision than any other driver on the road. This makes premiums for teen drivers the highest, which is why you need to search for cheap car insurance quotes. And you can start now with the helpful strategies listed in this article.
First and foremost, you should sign your teen driver up to your policy. It may sound ludicrous to do so, since he or she is statistically likely to bump up your insurance rate. However, it’s cheaper to do so, since you will save money for signing up a new driver to your auto insurance policy. To keep cost down even further, you and your teen should also do the following:
Practice safe driving. This applies to both you and your teen. Your teen may be inexperienced behind the wheel, but keep in mind, too that you are his ultimate role model. Therefore, you should be a living example to how to drive appropriately on the road. The two of you doing this together will help keep your auto insurance bill down even further.
Maintain good grades. Your teen may be going through high school, and you want the best from him or her. And your auto insurance company does, too. Ask whether or not if they have a “good student” discount. It will lower your premium by encourage your student to maintain good grades.
Buy an older and/or used car. Older vehicles are less expensive, which is ideal for your teen to drive. Any expensive vehicles should be driven by you, the experienced driver, since these actions will reduce premium costs.
Have your teen take driver’s education. This course will help teens drive better on the road, and auto insurance companies will give you and your teen a discount, if he or she passes.
Raise the deductible on your policy. Your deductible (out-of-pocket expenses for your claim, before your insurer pays the rest) should be raised to lower your premium.
Drop coverage when your teen goes to college. When your teen goes to college, most likely – unless they commute from home – they will not need to be on your auto insurance plan, if they plan on buying their own auto policy. No matter what though, teens must have an auto insurance policy, since it’s against the law to drive without one.
Shop for another insurer. Perhaps it’s time to switch insurers, if your current provider is giving you a high rate. It will allow you and your teen to find a rate that’s reasonable, especially if the new policy has a great coverage plan.
These strategies will help reduce costs associated with teen driving. Be sure to also question your insurance agent about discounts or other cost-reducing strategies.
For more information about auto insurance for teen drivers or for car insurance quotes from up to 5 local agents, visit InsuranceAgents.com.
First and foremost, you should sign your teen driver up to your policy. It may sound ludicrous to do so, since he or she is statistically likely to bump up your insurance rate. However, it’s cheaper to do so, since you will save money for signing up a new driver to your auto insurance policy. To keep cost down even further, you and your teen should also do the following:
Practice safe driving. This applies to both you and your teen. Your teen may be inexperienced behind the wheel, but keep in mind, too that you are his ultimate role model. Therefore, you should be a living example to how to drive appropriately on the road. The two of you doing this together will help keep your auto insurance bill down even further.
Maintain good grades. Your teen may be going through high school, and you want the best from him or her. And your auto insurance company does, too. Ask whether or not if they have a “good student” discount. It will lower your premium by encourage your student to maintain good grades.
Buy an older and/or used car. Older vehicles are less expensive, which is ideal for your teen to drive. Any expensive vehicles should be driven by you, the experienced driver, since these actions will reduce premium costs.
Have your teen take driver’s education. This course will help teens drive better on the road, and auto insurance companies will give you and your teen a discount, if he or she passes.
Raise the deductible on your policy. Your deductible (out-of-pocket expenses for your claim, before your insurer pays the rest) should be raised to lower your premium.
Drop coverage when your teen goes to college. When your teen goes to college, most likely – unless they commute from home – they will not need to be on your auto insurance plan, if they plan on buying their own auto policy. No matter what though, teens must have an auto insurance policy, since it’s against the law to drive without one.
Shop for another insurer. Perhaps it’s time to switch insurers, if your current provider is giving you a high rate. It will allow you and your teen to find a rate that’s reasonable, especially if the new policy has a great coverage plan.
These strategies will help reduce costs associated with teen driving. Be sure to also question your insurance agent about discounts or other cost-reducing strategies.
For more information about auto insurance for teen drivers or for car insurance quotes from up to 5 local agents, visit InsuranceAgents.com.
Thursday, August 18, 2011
Why Do Homeowners Insurance Agencies Deny Dog Owners
Almost every dog owner wants their fellow canine to play an important role in their lives, especially when it comes to a homeowners insurance policy. Sadly, according to Bankrate.com, home insurers see certain canine types as dangerous and rule them as high-risk pets. This either place higher homeowners insurance premiums on the dog owner or disqualify them from receiving insurance from certain insurers.
“Breed discrimination,” as it is called, is today’s hot topic being discussed between dog owners, canine organizations, and homeowners insurance companies, and until the debate is resolved, all dog owners must know which breeds are deemed dangerous by home insurers. Doing this will help them estimate their liability coverage and the price of their homeowners insurance quotes.
Dog owners should note the determining factors for their canine to be labeled dangerous by a homeowners insurance companies.
The homeowners insurance company. Each insurance provider has different specifications, which is why dog owners should shop around and compare numerous homeowners insurance quotes and talk to an insurance agent about their needs. They may charge a higher premium or just refuse to do business with them.
The size of their dog. Dogs that are small are most likely to be overlooked by homeowners insurance companies, since they have a less chance of biting someone. However, large dogs will be evaluated because they can inflict harm to people, depending on how violent they are or potentially could be.
The frequency of their bite. Every year, 4.5 million Americans suffer from dog bites, according to the Centers For Disease Control and Prevention. If the breed a dog owner owns has a track record of frequent bites, the dog owner will pay the consequences.
Their reputation. The Centers for Disease Control and Prevention, the media, and other authorities are closely monitoring reports involving canines. Homeowners insurance companies collect these reports and judge whether or not a dog breed puts dog owners at high-risk.
Top High-risk Dog Breeds To Homeowners Insurance
Below is a list regarding the most high-risk canines that all homeowners should avoid having, provided by Bankrate.com:
* Akita
* Alaskan Malamute
* Chow Chow
* Doberman Pinscher
* German Shepherd
* Pit Bull
* Presa Canario
* Rottweiler
* Siberian Husky
* Staffordshire Bull Terrier
* Wolf hybrid.
For anyone who owns any of these breeds, they may find their premium high, if they are lucky enough for a home insurer to insure them. But they can still get lower rates by doing the following:
* Search online for the best homeowners insurance quotes and policies in their proximity
* Comparison shop from several different home insurers
* Inquire about discounts
* Increase their deductible
* Check their insurance policy annually.
Dogs are family members, too. With an inexpensive homeowners insurance policy, people don’t have to worry about paying high premiums – or kicking their pooch to the curve.
For more information about insuring canines or for homeowners insurance quotes from up to 5 local agents, visit InsuranceAgents.com.
“Breed discrimination,” as it is called, is today’s hot topic being discussed between dog owners, canine organizations, and homeowners insurance companies, and until the debate is resolved, all dog owners must know which breeds are deemed dangerous by home insurers. Doing this will help them estimate their liability coverage and the price of their homeowners insurance quotes.
Dog owners should note the determining factors for their canine to be labeled dangerous by a homeowners insurance companies.
The homeowners insurance company. Each insurance provider has different specifications, which is why dog owners should shop around and compare numerous homeowners insurance quotes and talk to an insurance agent about their needs. They may charge a higher premium or just refuse to do business with them.
The size of their dog. Dogs that are small are most likely to be overlooked by homeowners insurance companies, since they have a less chance of biting someone. However, large dogs will be evaluated because they can inflict harm to people, depending on how violent they are or potentially could be.
The frequency of their bite. Every year, 4.5 million Americans suffer from dog bites, according to the Centers For Disease Control and Prevention. If the breed a dog owner owns has a track record of frequent bites, the dog owner will pay the consequences.
Their reputation. The Centers for Disease Control and Prevention, the media, and other authorities are closely monitoring reports involving canines. Homeowners insurance companies collect these reports and judge whether or not a dog breed puts dog owners at high-risk.
Top High-risk Dog Breeds To Homeowners Insurance
Below is a list regarding the most high-risk canines that all homeowners should avoid having, provided by Bankrate.com:
* Akita
* Alaskan Malamute
* Chow Chow
* Doberman Pinscher
* German Shepherd
* Pit Bull
* Presa Canario
* Rottweiler
* Siberian Husky
* Staffordshire Bull Terrier
* Wolf hybrid.
For anyone who owns any of these breeds, they may find their premium high, if they are lucky enough for a home insurer to insure them. But they can still get lower rates by doing the following:
* Search online for the best homeowners insurance quotes and policies in their proximity
* Comparison shop from several different home insurers
* Inquire about discounts
* Increase their deductible
* Check their insurance policy annually.
Dogs are family members, too. With an inexpensive homeowners insurance policy, people don’t have to worry about paying high premiums – or kicking their pooch to the curve.
For more information about insuring canines or for homeowners insurance quotes from up to 5 local agents, visit InsuranceAgents.com.
The Ins and Outs of Whole Life Insurance
A breakdown of the pros and cons of whole life insurance
Whole life insurance, otherwise known as permanent life insurance, is designed for people who want coverage their entire life with very few strings attached and zero-risk. Getting whole life insurance quotes is a simple process, but it’s important you understand a little more about how the policy works before shopping around.
Whole life insurance guarantees a payout for the entire term of your life and you pay a monthly or yearly premium for the entire term of your life as well. It’s a very simple policy in its structure since typically the payments do not change (up or down) and the benefit does not change. However, this may not be best suited for everyone, and when you get your whole life insurance quotes you need to make sure you understand exactly what you are buying.
A Quick Breakdown of How Whole Life Insurance Works
Higher Premium – You will notice that whole life insurance quotes tend to be higher than term life insurance and other variable types as well. The reason whole policies tend to be more expensive is that the money you pay into the policy is put into a “savings” program. The longer you pay into the policy, the larger the tax-deferred earnings are that you earn from the money saved up inside the whole life policy. These interest and dividends should be discussed with your insurance agent when you receive you whole life insurance quotes. Also, while you do have the ability to get a loan against your policy, again that is a major financial decision that should be discussed with an agent as well.
Fixed Policy – Whole life insurance policies are fixed in a couple different ways. The first of which is that your payments are fixed at a certain set amount for the entire duration of the policy. Regardless of economic troubles, increases in mortality, etc… your premium always stays exactly the same. So whatever you receive in whole life insurance quotes, that will be the rate you pay forever.
The second aspect of the policy being fixed is that the death benefit always stays exactly the same. The death benefit is agreed upon from day one and even 50 years later it will be the same amount, so plan carefully when you are deciding on how large a death benefit to request in your whole life insurance quotes.
Financial Benefits – Aside from the death benefit, whole life insurance policies allow you to earn tax-deferred earnings from the money you have invested into the policy over the years. However, it takes many years, sometimes decades, to see the full benefit of that, which means whole life insurance policies are a poor vehicle for short term investment.
If you plan to have the policy for decades the benefits of a whole life insurance policy can be quite significant and you stand to earn quite a bit through the “savings” program offered. When you are comparing whole life insurance quotes, ask your agent to show you some calculations of how the tax benefits and earnings potential can offset the cost of the policy over a long enough timeline.
InsuranceAgents.com offers expert articles on whole life insurance, and offers insurance quotes from up to 5 local agents in a matter of minutes.
Whole life insurance, otherwise known as permanent life insurance, is designed for people who want coverage their entire life with very few strings attached and zero-risk. Getting whole life insurance quotes is a simple process, but it’s important you understand a little more about how the policy works before shopping around.
Whole life insurance guarantees a payout for the entire term of your life and you pay a monthly or yearly premium for the entire term of your life as well. It’s a very simple policy in its structure since typically the payments do not change (up or down) and the benefit does not change. However, this may not be best suited for everyone, and when you get your whole life insurance quotes you need to make sure you understand exactly what you are buying.
A Quick Breakdown of How Whole Life Insurance Works
Higher Premium – You will notice that whole life insurance quotes tend to be higher than term life insurance and other variable types as well. The reason whole policies tend to be more expensive is that the money you pay into the policy is put into a “savings” program. The longer you pay into the policy, the larger the tax-deferred earnings are that you earn from the money saved up inside the whole life policy. These interest and dividends should be discussed with your insurance agent when you receive you whole life insurance quotes. Also, while you do have the ability to get a loan against your policy, again that is a major financial decision that should be discussed with an agent as well.
Fixed Policy – Whole life insurance policies are fixed in a couple different ways. The first of which is that your payments are fixed at a certain set amount for the entire duration of the policy. Regardless of economic troubles, increases in mortality, etc… your premium always stays exactly the same. So whatever you receive in whole life insurance quotes, that will be the rate you pay forever.
The second aspect of the policy being fixed is that the death benefit always stays exactly the same. The death benefit is agreed upon from day one and even 50 years later it will be the same amount, so plan carefully when you are deciding on how large a death benefit to request in your whole life insurance quotes.
Financial Benefits – Aside from the death benefit, whole life insurance policies allow you to earn tax-deferred earnings from the money you have invested into the policy over the years. However, it takes many years, sometimes decades, to see the full benefit of that, which means whole life insurance policies are a poor vehicle for short term investment.
If you plan to have the policy for decades the benefits of a whole life insurance policy can be quite significant and you stand to earn quite a bit through the “savings” program offered. When you are comparing whole life insurance quotes, ask your agent to show you some calculations of how the tax benefits and earnings potential can offset the cost of the policy over a long enough timeline.
InsuranceAgents.com offers expert articles on whole life insurance, and offers insurance quotes from up to 5 local agents in a matter of minutes.
Thursday, August 11, 2011
Fixed Annuities, The New Savings Accounts?
To put it in plain speaking, fixed annuities are savings accounts for the insurance world. When you decide to invest in annuities with your insurance agent, you are agreeing to make payments over time which the agent, in turn, invests on your behalf. The fixed annuities you’ve invested in will gain interest over the years and can accumulate in cash value until the predetermined date you have selected to start receiving your pay-out.
There are five main types of fixed annuities. They are listed below with a brief introduction to each:
1. Single-year guarantee fixed annuities – With this type your insurer guarantees to pay you a specific interest rate for one year which they can raise or lower each year after until the contract ends with what are called “renewal rates.” There are a number of different kinds of renewal rates so ask your insurance agent which ones may apply to you, however in most cases the interest rate will consistently lower with each year.
2. Multi-year guarantee fixed annuities – Here your carrier guarantees a specific interest rate for multiple years which cannot be raised or lowered. With this kind you know exactly how much you’re investing and how much interest you’re accumulating so you can ballpark how much your pay off will be.
3. Market value-adjusted fixed annuities – Perhaps the most risky and unpredictable venture, this variety is based on the market which is beyond your control and could lead to higher rates. There are penalties associated with breaking a market-value adjusted fixed annuities contract that you may want to be aware of so ask your agent before purchasing.
4. Pass-through rate fixed annuities – With this your provider receives a percentage of your fixed annuities and you will be paid the remainder of the interest earned.
5. Floating rate fixed annuities – Here the interest rates vary from month to month and collect value according to the fluctuation rates.
Are Fixed Annuities Right For You?
Go online today to talk to compare insurance quotes and talk to an insurance agent about fixed annuities and whether or not they are right for you. Although they can be complicated, it is best to think of fixed annuities much like a savings account in that you invest money into it and it gains value as a result of accruing interest. If this sounds like something you might be interested in then fixed annuities may be a worthwhile investment for you.
For more information about fixed annuities or for insurance quotes from up to 5 local agents, visit InsuranceAgents.com
There are five main types of fixed annuities. They are listed below with a brief introduction to each:
1. Single-year guarantee fixed annuities – With this type your insurer guarantees to pay you a specific interest rate for one year which they can raise or lower each year after until the contract ends with what are called “renewal rates.” There are a number of different kinds of renewal rates so ask your insurance agent which ones may apply to you, however in most cases the interest rate will consistently lower with each year.
2. Multi-year guarantee fixed annuities – Here your carrier guarantees a specific interest rate for multiple years which cannot be raised or lowered. With this kind you know exactly how much you’re investing and how much interest you’re accumulating so you can ballpark how much your pay off will be.
3. Market value-adjusted fixed annuities – Perhaps the most risky and unpredictable venture, this variety is based on the market which is beyond your control and could lead to higher rates. There are penalties associated with breaking a market-value adjusted fixed annuities contract that you may want to be aware of so ask your agent before purchasing.
4. Pass-through rate fixed annuities – With this your provider receives a percentage of your fixed annuities and you will be paid the remainder of the interest earned.
5. Floating rate fixed annuities – Here the interest rates vary from month to month and collect value according to the fluctuation rates.
Are Fixed Annuities Right For You?
Go online today to talk to compare insurance quotes and talk to an insurance agent about fixed annuities and whether or not they are right for you. Although they can be complicated, it is best to think of fixed annuities much like a savings account in that you invest money into it and it gains value as a result of accruing interest. If this sounds like something you might be interested in then fixed annuities may be a worthwhile investment for you.
For more information about fixed annuities or for insurance quotes from up to 5 local agents, visit InsuranceAgents.com
Saturday, July 30, 2011
Car Insurance Companies to the Rescue
In a desperate attempt to save money, many drivers are opting to drop their car insurance during a tough economical stretch. Since last year, the amount of drivers on the road without car insurance has doubled from 10 to 20 percent. Fortunately, insurance companies are now trying to make it easier for drivers to obtain coverage, a positive thing to hear since car insurance premium is set to increase by 11 percent by the end of 2009.
Here are a few things insurance companies are doing in an attempt to help drivers obtain and afford coverage for their vehicle:
Pay online. More and more car insurance companies are jumping to the Web, giving their customers and quick and convenient way to pay for coverage. IFA Insurance Co.’s in New Jersey and Pennsylvania have integrated PayPal into their system, decreasing the chances of customers missing their scheduled payments.
Direct transfer. Some insurance companies provide the option of having your payment withdrawn from your banking account, allowing you to not have to worry about purchasing stamps. Just as paying online does, this benefit greatly decreases a scheduled payment being missed.
Call and pay. If you don’t know much about computers, call your company and save some money on postage stamps by paying over the phone.
Break up the payments. By being able to break up payments, you won’t have to pay everything all at once. Insurance companies, especially State Farm, offer detailed payment plans that allow customers to make payments at a reasonable pace.
Talk to a representative. Car insurance companies understand that having a personal relationship with their customers is an important element. Drivers with questions can go online or call their insurance providers and talk to an actual agent. The hours might vary with different providers, but the outcome is the same.
Dropping Your Car Insurance is Unnecessary
Insurance providers understand that it is a tough time for consumers these days. With rates increasing and jobs decreasing, more and more drivers are choosing to drop their car insurance in an attempt to save money. What they are unaware of, however, is that insurance providers are now making it easier for drivers to obtain affordable and convenient car insurance. Contact your local agent or go online for more information.
For more information, read Providers Make Getting Car Insurance Easier.
InsuranceAgents.com provides expert articles and car insurance quotes from up to five local agents.
Here are a few things insurance companies are doing in an attempt to help drivers obtain and afford coverage for their vehicle:
Pay online. More and more car insurance companies are jumping to the Web, giving their customers and quick and convenient way to pay for coverage. IFA Insurance Co.’s in New Jersey and Pennsylvania have integrated PayPal into their system, decreasing the chances of customers missing their scheduled payments.
Direct transfer. Some insurance companies provide the option of having your payment withdrawn from your banking account, allowing you to not have to worry about purchasing stamps. Just as paying online does, this benefit greatly decreases a scheduled payment being missed.
Call and pay. If you don’t know much about computers, call your company and save some money on postage stamps by paying over the phone.
Break up the payments. By being able to break up payments, you won’t have to pay everything all at once. Insurance companies, especially State Farm, offer detailed payment plans that allow customers to make payments at a reasonable pace.
Talk to a representative. Car insurance companies understand that having a personal relationship with their customers is an important element. Drivers with questions can go online or call their insurance providers and talk to an actual agent. The hours might vary with different providers, but the outcome is the same.
Dropping Your Car Insurance is Unnecessary
Insurance providers understand that it is a tough time for consumers these days. With rates increasing and jobs decreasing, more and more drivers are choosing to drop their car insurance in an attempt to save money. What they are unaware of, however, is that insurance providers are now making it easier for drivers to obtain affordable and convenient car insurance. Contact your local agent or go online for more information.
For more information, read Providers Make Getting Car Insurance Easier.
InsuranceAgents.com provides expert articles and car insurance quotes from up to five local agents.
Monday, July 18, 2011
The Insiders Guide To Buying Term Insurance
Most people consider cost the primary reason for choosing one insurance policy over another. While certainly important, there are additional and by no means less important factors. Among them are some questions to consider.
How strong is the insurance company?
In today's uncertain financial climate the quality of your insurance company takes on new meaning. While no insurance company simply goes out of business due to highly regulated reserve requirements of the various states they operate in, those carriers in danger from poor investment results or real estate loans may well be taken over by stronger carriers. While this generally means the new owner will abide by the guarantees of the original policy the "devil may be in the details." When this happens the new carrier generally considers this a so-called "closed" book of business, a severely restricts your future options.
What options do I have?
Most insurance companies offer both term and permanent life insurance, and most carriers will allow the owner of the policy to convert term coverage into a permanent policy within a specific time period. Although most will allow conversion into many of the competitive products they currently offer, those carriers taken over by others may find they options limited to older cash value policies that may not meet you new objective.
I'm not a smoker, but I enjoy a cigar every once in a while. Should I tell my agent?
The short answer is "yes". While you may feel this is silly, it's not. Why, because the insurance company has the right (and some say obligation) to deny your beneficiary's claim based on fraud, and this is a relatively easy way to show that you, the insured, tried to deceive the company when you applied for coverage. Note that policies have a 2 year period of contestability. This means the company may fail to honor a claim during this period based for fraud or suicide. Subsequent to this time, a claim is paid even if the insured failed to disclose an issue, or died by their own hand.
Why is convertibility so important?
Typically, our health declines with age. We may gain some weight, take a medication or two, or generally not be in the same shape we were at a younger age. However, once you have a term policy in force, you have "locked in" your health category with regard to convertibility. Many people drop their term policies only to find their new options severely restricted.
Why do premiums vary so much?
This usually has more to do with the insurance company than it does with you. Assuming the same health category, you may find premiums differ by 100% or more. While logic may tell you the stronger the carrier, the higher the premium, just the opposite can be true. Today, stronger insurers are using their clout to increase market share. Premiums can also depend on the investment yield the company has experienced, their average bond maturity, mortality experience and other factors. All good reasons to shop before you buy.
What is the first step?
Talk to an experienced independent agent who deals with many carriers. Ask for references, and check the agent's disciplinary record. All states have these records displayed on their insurance department website. Like the purchase of any important asset, let the buyer beware.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.
How strong is the insurance company?
In today's uncertain financial climate the quality of your insurance company takes on new meaning. While no insurance company simply goes out of business due to highly regulated reserve requirements of the various states they operate in, those carriers in danger from poor investment results or real estate loans may well be taken over by stronger carriers. While this generally means the new owner will abide by the guarantees of the original policy the "devil may be in the details." When this happens the new carrier generally considers this a so-called "closed" book of business, a severely restricts your future options.
What options do I have?
Most insurance companies offer both term and permanent life insurance, and most carriers will allow the owner of the policy to convert term coverage into a permanent policy within a specific time period. Although most will allow conversion into many of the competitive products they currently offer, those carriers taken over by others may find they options limited to older cash value policies that may not meet you new objective.
I'm not a smoker, but I enjoy a cigar every once in a while. Should I tell my agent?
The short answer is "yes". While you may feel this is silly, it's not. Why, because the insurance company has the right (and some say obligation) to deny your beneficiary's claim based on fraud, and this is a relatively easy way to show that you, the insured, tried to deceive the company when you applied for coverage. Note that policies have a 2 year period of contestability. This means the company may fail to honor a claim during this period based for fraud or suicide. Subsequent to this time, a claim is paid even if the insured failed to disclose an issue, or died by their own hand.
Why is convertibility so important?
Typically, our health declines with age. We may gain some weight, take a medication or two, or generally not be in the same shape we were at a younger age. However, once you have a term policy in force, you have "locked in" your health category with regard to convertibility. Many people drop their term policies only to find their new options severely restricted.
Why do premiums vary so much?
This usually has more to do with the insurance company than it does with you. Assuming the same health category, you may find premiums differ by 100% or more. While logic may tell you the stronger the carrier, the higher the premium, just the opposite can be true. Today, stronger insurers are using their clout to increase market share. Premiums can also depend on the investment yield the company has experienced, their average bond maturity, mortality experience and other factors. All good reasons to shop before you buy.
What is the first step?
Talk to an experienced independent agent who deals with many carriers. Ask for references, and check the agent's disciplinary record. All states have these records displayed on their insurance department website. Like the purchase of any important asset, let the buyer beware.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.
Monday, July 11, 2011
Life Settlements - The Good,The Bad, And The Ugly
Life Settlements-The Good,The Bad, And The Ugly
Mention Life Settlements and you’re bound to hear strong opinions, both positive and negative. The life settlement market has grown into a billion dollar industry in the last few years. If you're over 50 and own a term life insurance policy you no longer need, this could mean money in your pocket.
First, the Ugly
Every market has those who try to “game” the system. Many seniors have fallen prey to agents tempting them with an offer of free money. The senior is induced to purchase life insurance without a legitimate need for such coverage. The insured then waits two years so the policy becomes uncontestable, sells the policy, and shares the proceeds with the other parties to the transaction. This is called “stranger originated life insurance” (STOLI).
There are two major concerns that any individual should be aware of when thinking about such a transaction. First, there is no insurable interest. That is, the applicant has no legitimate purpose. Secondly, many states are considering, or have made this type of transaction illegal. STOLI transactions corrupt the marketplace by changing the basis on which premiums are determined.
The Bad
Many people who have purchased life insurance for legitimate purposes may need money due to a terminal illness. Individuals who are induced to sell policies in this situation enter into what are known as “viatical settlements”, selling their policy for a percentage of the face amount to obtain money for immediate living expenses. These transactions became popular at a time when a diagnosis of AIDS meant a short life expectancy. Viatical settlements allowed the terminally ill to receive cash during their last days.
Today, the insurance industry has made such sales unnecessary for policies sold in the last few years. Most policies include a no-cost rider which allows for a substantial portion of the face amount to be paid to the terminally ill in advance of death with sufficient documentation. This eliminates the need for a viatical settlement, and gives the insured and beneficiary the full policy value.
The Good
There are many legitimate reasons to consider the sale of a life insurance policy that was purchased in good faith for protection against the insured’s death. Term policies are purchased for protection for a limited time period. Generally, these policies are written to protect family members who rely on the insured’s income, or in business situations to protect the company from loss of an owner. Once the original objective no longer exits due to a change in circumstance, a life settlement may be a good option.
Another reason to consider a life settlement would be affordability. If the premium can no longer be paid due to a negative change in circumstances, the owner may benefit substantially by selling the policy through a life settlement transaction. Today more the ever, this is unfortunately the situation many seniors find themselves in.
To be considered for a life settlement the term policy must be convertible into a universal life policy. While some whole life or variable life policies are suitable for purchase, generally this is not the case. If you own a term policy, simply check the contract to determine when and what your current policy is convertible into. If you are unsure, your agent or the insurance company will be able to help you determine if your policy is convertible.
There are many factors that affect the ability to sell a policy in a life settlement. Generally, the insured must be over 65 and without a terminal illness. Remember the insurance company makes a life settlement unnecessary in a terminal illness situation. An agent familiar with life settlements can assist you in determining if this type of transaction is right for you.
Next Steps
If you're considering a life settlement, speak with an agent who is well versed in this area. They will help you select an experienced broker. There are many life settlement companies that will assist you in selling your policy, but like any transaction “let the buyer beware”. There are several important considerations when choosing a life settlement broker. You will want to deal with a company that has been in business for a relatively long time, long enough to generate a reputation. You will want to see how your transaction is handled in the marketplace. How many bids are requested? How transparent is the transaction? Can you see the various bids for your policy? How are the funds allocated?
While there are always questions that are specific to your situation, this article should help you to understand the general nature of the life settlement transaction. A good agent will help you navigate this maze to produce the best outcome for you.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.
Mention Life Settlements and you’re bound to hear strong opinions, both positive and negative. The life settlement market has grown into a billion dollar industry in the last few years. If you're over 50 and own a term life insurance policy you no longer need, this could mean money in your pocket.
First, the Ugly
Every market has those who try to “game” the system. Many seniors have fallen prey to agents tempting them with an offer of free money. The senior is induced to purchase life insurance without a legitimate need for such coverage. The insured then waits two years so the policy becomes uncontestable, sells the policy, and shares the proceeds with the other parties to the transaction. This is called “stranger originated life insurance” (STOLI).
There are two major concerns that any individual should be aware of when thinking about such a transaction. First, there is no insurable interest. That is, the applicant has no legitimate purpose. Secondly, many states are considering, or have made this type of transaction illegal. STOLI transactions corrupt the marketplace by changing the basis on which premiums are determined.
The Bad
Many people who have purchased life insurance for legitimate purposes may need money due to a terminal illness. Individuals who are induced to sell policies in this situation enter into what are known as “viatical settlements”, selling their policy for a percentage of the face amount to obtain money for immediate living expenses. These transactions became popular at a time when a diagnosis of AIDS meant a short life expectancy. Viatical settlements allowed the terminally ill to receive cash during their last days.
Today, the insurance industry has made such sales unnecessary for policies sold in the last few years. Most policies include a no-cost rider which allows for a substantial portion of the face amount to be paid to the terminally ill in advance of death with sufficient documentation. This eliminates the need for a viatical settlement, and gives the insured and beneficiary the full policy value.
The Good
There are many legitimate reasons to consider the sale of a life insurance policy that was purchased in good faith for protection against the insured’s death. Term policies are purchased for protection for a limited time period. Generally, these policies are written to protect family members who rely on the insured’s income, or in business situations to protect the company from loss of an owner. Once the original objective no longer exits due to a change in circumstance, a life settlement may be a good option.
Another reason to consider a life settlement would be affordability. If the premium can no longer be paid due to a negative change in circumstances, the owner may benefit substantially by selling the policy through a life settlement transaction. Today more the ever, this is unfortunately the situation many seniors find themselves in.
To be considered for a life settlement the term policy must be convertible into a universal life policy. While some whole life or variable life policies are suitable for purchase, generally this is not the case. If you own a term policy, simply check the contract to determine when and what your current policy is convertible into. If you are unsure, your agent or the insurance company will be able to help you determine if your policy is convertible.
There are many factors that affect the ability to sell a policy in a life settlement. Generally, the insured must be over 65 and without a terminal illness. Remember the insurance company makes a life settlement unnecessary in a terminal illness situation. An agent familiar with life settlements can assist you in determining if this type of transaction is right for you.
Next Steps
If you're considering a life settlement, speak with an agent who is well versed in this area. They will help you select an experienced broker. There are many life settlement companies that will assist you in selling your policy, but like any transaction “let the buyer beware”. There are several important considerations when choosing a life settlement broker. You will want to deal with a company that has been in business for a relatively long time, long enough to generate a reputation. You will want to see how your transaction is handled in the marketplace. How many bids are requested? How transparent is the transaction? Can you see the various bids for your policy? How are the funds allocated?
While there are always questions that are specific to your situation, this article should help you to understand the general nature of the life settlement transaction. A good agent will help you navigate this maze to produce the best outcome for you.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.
Sunday, July 3, 2011
Hidden In Plain Sight - Term Life Insurance Conversion
Introduction
Most people do not have a clear understanding of the various options available in term life insurance, and consequently make decisions based solely on price. This document was written to help you determine what additional issues may also have a bearing on the best value for you.
The Problem
As consumers, we generally concern ourselves with price because we are most comfortable when comparing something obvious such as numbers. Prices are easy to compare and understand; especially when it concerns products we generally have little experience in purchasing.
Previous Option
Compounding this problem as it concerns term life insurance in particular, is that many popular internet sites allow the consumer to obtain a quote simply by completing several questions
about build, health and lifestyle. Once quotes are obtained, it’s up to the buyer to choose their best deal. We know this can be a disservice to the client, and in the pages to follow we give a specific example of why, and what to consider.
The LifeNet Solution
We believe life insurance is too important to your beneficiary’s welfare and your own peace of mind to choose coverage based on limited information and undefined objectives. Certainly there is nothing wrong with checking premium costs to get some idea of the market; however, we believe clients are not well served by a mechanical procedure which does not address issues central to the reason for purchase in the first place, i.e. your beneficiaries’ security.
An Example
Let’s take a case of a 60 year old male, a non-smoker in good health and in need of a $1,000,000 policy to examine how both approaches work, and show why our method is superior and provides more value to you, the applicant.
The competition provides you a number of quotes detailing carrier name, carrier rating, health category, and premium. Should you wish to apply, simply pick your carrier and the application
appears. No fuss, no bother, and no idea if this offer is the best value. In fact, it is rare to find premiums of the lowest cost carriers to vary widely.
The lowest cost provider with an A+ or better rating, which we’ll call Company A has an annual premium of $4755. Two other carriers (Companies B and C) have annual premiums of $4955 and $4980 respectively.
All three have convertibility options, but each company’s conversion rules vary and can result in very different opportunities for the insured. In each case, conversion will be at the same health rating that the insured received at the time of the original purchase. In essence, this guarantees the health rating at conversion without evidence of current insurability. This is
extremely important since health tends to worsen as we grow older, you could even be uninsurable. In addition, most carriers will allow a partial conversion. That is, a $1,000,000 term may be converted into a permanent policy of any size up to the original face amount of $1,000,000. Most permanent policies have a minimum face of $100,000.
Now back to our example. Company A is relatively small compared to others. Its market is low cost term insurance, and they allow conversion to a whole life policy. You may convert to this
policy at anytime your term policy is in force up to your 70th birthday. Company B’s policy is also convertible up to age 70; however conversion to several policies is available. Among them is a flexible premium universal life policy with a guaranteed premium. This type of policy is designed to have the lowest possible premiums. It is guaranteed to stay in force for your lifetime as long as premiums are paid on a timely basis. Both the premium and the face amount of the policy never change. These policies are designed without any cash accumulation, and have considerably lower premiums than whole life.
Finally, Company C has identical conversion policy choices as Company B, however the conversion option stays in effect for an additional five years to age 75. This additional 5 years
can mean a great deal because the older we become, the more likely our health rating will change in a negative way. If you find you need lifetime coverage, the extra 5 years of
convertibility can make a big difference in protecting your beneficiaries.
Any financial plan is just that, a plan. It is based on what we consider reasonable in light of what we know now. However, anyone in their 50’s or older knows how plans can change for
many reasons, some under our control, but many not. To summarize, both company A and B have identical conversion time periods, while company B has better choices than company A. Company C has the same conversion choices as Company B and extends the window of opportunity an additional five years to age 75. Now comes the interesting part. As the owner of the policy, you may have the potential to sell this policy if your need for coverage has decreased or disappeared. This transaction is called a “Life Settlement”. Life Settlements have become a multi-billion dollar market in the last few years and it’s easy to see why as we now look at all three carriers. Legitimate Life Settlements should not be confused with “Stranger Originated Life Insurance (STOLI)” which is illegal in many states.
Company A Company B Company C
Annual Premium $4,755 $4,955 $4,980
Total Premiums (15 yrs) $71,325 $74,325 $74,700
Sale of Policy 0 0 $200,000 (est*)
*This estimate is based on a composite of real cases, but will be dependent upon actual conditions at the time of potential sale, and in no way is it to be considered a guarantee of future results. Remember, you should never attempt to sell a policy if you still need coverage or your health has declined. This type of transaction is designed for individuals whose objective has changed due to financial circumstances different from when the policy was purchased.
For a term policy to be considered a good candidate for sale, it must be convertible into a universal policy with little or no cash value and guaranteed level premiums.
Implementation
1. Contact an independent agent with access to the majority of highly rated insurance companies. Once you find someone you feel comfortable with, check their status with your state insurance department. This is quite easy to do. Just go to your state insurance department website.
2. Remember, agents cannot guarantee you a premium cost! They can only use their best efforts based on the health, lifestyle and the family health history you provide. Omitting
information does a disservice to both you and the agent. Life insurers deal with fraud or incomplete information regularly. When you withhold information, you hurt your chances for the agent to advocate on your behalf. Additionally, it may harm your ability to obtain coverage with another carrier.
3. Discuss your objective with the agent. Agents can suggest approaches to coverage you may not have considered.
4. Make sure you ask about conversion options.
5. Be prepared to have a paramedic exam, typically done at your home, your office or at the exam company. Most carriers require blood and urine collection and an EKG to be performed by an independent paramedic company. In some instances, it is possible to purchase coverage without these tests, however be prepared to pay higher premiums for smaller amounts of insurance.
6. Ask questions. Good agents are in the service business and want to do a good job for you. So let them!
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.
Most people do not have a clear understanding of the various options available in term life insurance, and consequently make decisions based solely on price. This document was written to help you determine what additional issues may also have a bearing on the best value for you.
The Problem
As consumers, we generally concern ourselves with price because we are most comfortable when comparing something obvious such as numbers. Prices are easy to compare and understand; especially when it concerns products we generally have little experience in purchasing.
Previous Option
Compounding this problem as it concerns term life insurance in particular, is that many popular internet sites allow the consumer to obtain a quote simply by completing several questions
about build, health and lifestyle. Once quotes are obtained, it’s up to the buyer to choose their best deal. We know this can be a disservice to the client, and in the pages to follow we give a specific example of why, and what to consider.
The LifeNet Solution
We believe life insurance is too important to your beneficiary’s welfare and your own peace of mind to choose coverage based on limited information and undefined objectives. Certainly there is nothing wrong with checking premium costs to get some idea of the market; however, we believe clients are not well served by a mechanical procedure which does not address issues central to the reason for purchase in the first place, i.e. your beneficiaries’ security.
An Example
Let’s take a case of a 60 year old male, a non-smoker in good health and in need of a $1,000,000 policy to examine how both approaches work, and show why our method is superior and provides more value to you, the applicant.
The competition provides you a number of quotes detailing carrier name, carrier rating, health category, and premium. Should you wish to apply, simply pick your carrier and the application
appears. No fuss, no bother, and no idea if this offer is the best value. In fact, it is rare to find premiums of the lowest cost carriers to vary widely.
The lowest cost provider with an A+ or better rating, which we’ll call Company A has an annual premium of $4755. Two other carriers (Companies B and C) have annual premiums of $4955 and $4980 respectively.
All three have convertibility options, but each company’s conversion rules vary and can result in very different opportunities for the insured. In each case, conversion will be at the same health rating that the insured received at the time of the original purchase. In essence, this guarantees the health rating at conversion without evidence of current insurability. This is
extremely important since health tends to worsen as we grow older, you could even be uninsurable. In addition, most carriers will allow a partial conversion. That is, a $1,000,000 term may be converted into a permanent policy of any size up to the original face amount of $1,000,000. Most permanent policies have a minimum face of $100,000.
Now back to our example. Company A is relatively small compared to others. Its market is low cost term insurance, and they allow conversion to a whole life policy. You may convert to this
policy at anytime your term policy is in force up to your 70th birthday. Company B’s policy is also convertible up to age 70; however conversion to several policies is available. Among them is a flexible premium universal life policy with a guaranteed premium. This type of policy is designed to have the lowest possible premiums. It is guaranteed to stay in force for your lifetime as long as premiums are paid on a timely basis. Both the premium and the face amount of the policy never change. These policies are designed without any cash accumulation, and have considerably lower premiums than whole life.
Finally, Company C has identical conversion policy choices as Company B, however the conversion option stays in effect for an additional five years to age 75. This additional 5 years
can mean a great deal because the older we become, the more likely our health rating will change in a negative way. If you find you need lifetime coverage, the extra 5 years of
convertibility can make a big difference in protecting your beneficiaries.
Any financial plan is just that, a plan. It is based on what we consider reasonable in light of what we know now. However, anyone in their 50’s or older knows how plans can change for
many reasons, some under our control, but many not. To summarize, both company A and B have identical conversion time periods, while company B has better choices than company A. Company C has the same conversion choices as Company B and extends the window of opportunity an additional five years to age 75. Now comes the interesting part. As the owner of the policy, you may have the potential to sell this policy if your need for coverage has decreased or disappeared. This transaction is called a “Life Settlement”. Life Settlements have become a multi-billion dollar market in the last few years and it’s easy to see why as we now look at all three carriers. Legitimate Life Settlements should not be confused with “Stranger Originated Life Insurance (STOLI)” which is illegal in many states.
Company A Company B Company C
Annual Premium $4,755 $4,955 $4,980
Total Premiums (15 yrs) $71,325 $74,325 $74,700
Sale of Policy 0 0 $200,000 (est*)
*This estimate is based on a composite of real cases, but will be dependent upon actual conditions at the time of potential sale, and in no way is it to be considered a guarantee of future results. Remember, you should never attempt to sell a policy if you still need coverage or your health has declined. This type of transaction is designed for individuals whose objective has changed due to financial circumstances different from when the policy was purchased.
For a term policy to be considered a good candidate for sale, it must be convertible into a universal policy with little or no cash value and guaranteed level premiums.
Implementation
1. Contact an independent agent with access to the majority of highly rated insurance companies. Once you find someone you feel comfortable with, check their status with your state insurance department. This is quite easy to do. Just go to your state insurance department website.
2. Remember, agents cannot guarantee you a premium cost! They can only use their best efforts based on the health, lifestyle and the family health history you provide. Omitting
information does a disservice to both you and the agent. Life insurers deal with fraud or incomplete information regularly. When you withhold information, you hurt your chances for the agent to advocate on your behalf. Additionally, it may harm your ability to obtain coverage with another carrier.
3. Discuss your objective with the agent. Agents can suggest approaches to coverage you may not have considered.
4. Make sure you ask about conversion options.
5. Be prepared to have a paramedic exam, typically done at your home, your office or at the exam company. Most carriers require blood and urine collection and an EKG to be performed by an independent paramedic company. In some instances, it is possible to purchase coverage without these tests, however be prepared to pay higher premiums for smaller amounts of insurance.
6. Ask questions. Good agents are in the service business and want to do a good job for you. So let them!
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. You may contact him at lenny@lifenetinsurance.com or visit his website at http://www.lifenetinsurance.com read all you'll need to know.
No Medical Exam Life Insurance
Life Insurance coverage designed for purchase without a medical exam offers advantages and disadvantage to the purchaser. While many policies are more consumer friendly than in the past, here are some things to consider before you apply.
Life Insurance that can be purchased without a medical exam offers many benefits to a healthy individual that needs coverage quickly, and without the time and effort normally associated with fully underwritten policies. These insurance carriers are looking for people who want the ease and anonymity of applying online or through the mail. They also can offer immediate coverage.
Although most policies underwritten in this way are for relatively low amounts, at least one carrier will consider up to $500,000 within certain age limits.
In addition, some carriers will accept credit cards, something most “regular” carriers do not accept for payment. Again, it is ease of purchase that makes this a tempting offer.
However, many of these benefits come with a cost. First and foremost, they are generally more expensive than fully underwritten coverage. While not always the case, especially at younger ages and among some smokers, people at older ages should compare both types of coverage and decide what is most appropriate in their circumstances.
Whatever type of policy you decide upon, remember that all policies have a two year period of contestability. This means any “material misrepresentation” of your health, lifestyle or driving record can invalidate your policy and leave your beneficiaries without the coverage you intended.
If you cannot answer the qualification questions appropriately, this type of coverage is not for you. It does not mean life insurance is unattainable, only that underwriting will be necessary in your situation. This is when an agent is indispensable to get the best value.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. For more information on the subject of this article, go to http://www.smartlifeinsurance.com
Life Insurance that can be purchased without a medical exam offers many benefits to a healthy individual that needs coverage quickly, and without the time and effort normally associated with fully underwritten policies. These insurance carriers are looking for people who want the ease and anonymity of applying online or through the mail. They also can offer immediate coverage.
Although most policies underwritten in this way are for relatively low amounts, at least one carrier will consider up to $500,000 within certain age limits.
In addition, some carriers will accept credit cards, something most “regular” carriers do not accept for payment. Again, it is ease of purchase that makes this a tempting offer.
However, many of these benefits come with a cost. First and foremost, they are generally more expensive than fully underwritten coverage. While not always the case, especially at younger ages and among some smokers, people at older ages should compare both types of coverage and decide what is most appropriate in their circumstances.
Whatever type of policy you decide upon, remember that all policies have a two year period of contestability. This means any “material misrepresentation” of your health, lifestyle or driving record can invalidate your policy and leave your beneficiaries without the coverage you intended.
If you cannot answer the qualification questions appropriately, this type of coverage is not for you. It does not mean life insurance is unattainable, only that underwriting will be necessary in your situation. This is when an agent is indispensable to get the best value.
Leonard Robbins has written additional articles that can help you choose the best policy for your current and future needs. For more information on the subject of this article, go to http://www.smartlifeinsurance.com
Saturday, July 2, 2011
Long Term Care Insurance - Make sure these are included in your policy!
The majority of people need long term care insurance because not everyone will afford the cost of the nursing home facility. Around 50% of Americans will require long term care insurance in their life time so it makes sense to ensure your care insurance includes/covers the following...
Variable Coverage. Get a long term care insurance policy that includes coverage for home health aids, assisted living facilities, adult day care providers and nursing homes so you’ll have the best choice of care.
Inflation protection. Ensure you get a long term care insurance policy that includes inflation protection because the cost of these nursing homes will be considerably more in 15 to 30 years time.
A minimum of 70% Daily Benefit. If you require care services, ensure you don’t pick the cheapest daily amount. Instead investigate what the average daily cost is of a nursing home in the area and request around 70% of that. Also ensure you adjust this annually to account for changes per year.
Independent Care Management. The long term care insurance company will send a representative to determine the benefits you need. It’s essential to make sure your long term care insurance policy enables you the option of having a licensed health care provider that is independent and not someone working for the long term care insurance company.
There you have it, some practical advice and things to look out for when purchasing long term care insurance. Please contact us if you'd like to add anything to this article! Thank you.
Source:
http://www.articlesoninsurance.com/long-term-care-insurance-make-sure-these-are-included-in-your-policy/
Variable Coverage. Get a long term care insurance policy that includes coverage for home health aids, assisted living facilities, adult day care providers and nursing homes so you’ll have the best choice of care.
Inflation protection. Ensure you get a long term care insurance policy that includes inflation protection because the cost of these nursing homes will be considerably more in 15 to 30 years time.
A minimum of 70% Daily Benefit. If you require care services, ensure you don’t pick the cheapest daily amount. Instead investigate what the average daily cost is of a nursing home in the area and request around 70% of that. Also ensure you adjust this annually to account for changes per year.
Independent Care Management. The long term care insurance company will send a representative to determine the benefits you need. It’s essential to make sure your long term care insurance policy enables you the option of having a licensed health care provider that is independent and not someone working for the long term care insurance company.
There you have it, some practical advice and things to look out for when purchasing long term care insurance. Please contact us if you'd like to add anything to this article! Thank you.
Source:
http://www.articlesoninsurance.com/long-term-care-insurance-make-sure-these-are-included-in-your-policy/
Understanding Health Care and Free Insurance Quotes
The following lines will demystify all about Health Care and how to get the insurance by getting a Free Quotation for the best plan that fits you without that feeling of taking a big load on your shoulders and easy to suit on a month's budget for every family in USA. Health Care has become a precious asset in the contemporary life due to all of our harmful habits mostly forced by the inescapable unhealthy way-of-life. Therefore, health is a mandatory concept to overcome the obstacles nowadays and that's what we most have to care for.
To understand how to get the best rates available to assure an extraordinary Health Care and get it unleashed despite whichever bad experience you have had on this sort of painful research you will be led to an easy and trustful online process which will doubtless clear your mind up to get your ready to make your best choice ever when it comes to look after yourself and your family.
Browsing around on the internet you may find many sites where you can get a Free Insurance Quotation whose provider should deliver a proper Health Care service but unfortunately in most cases you are requested to turn your personal information inside out. However, in the genuine cases, before disclosing personal details, you simply enter your name, some information about past medical diagnoses and email to find out more about the process before being committed to anything. This makes the process safe and easy, and gives us no reason to take a little look deeper at how we can benefit.
Take advantage from this clever and easy engine that will help you get rid of the villain of most middle class US families. Health Care is no longer something that will haunt your dreams from now on. Get the quotation with the best rates available to assure an extraordinary long and joyful life for you and your beloveds.
Hopefully, you will be more encouraged now to take advantage of this greats offers, and see how you, your family, working friends and personal friends can benefit from it once you will be saving money and enjoying a new Health care service that will attend all your expectations and don't ever forget - Health is what we most have to care for.
Visit us at http://www.free-health-insurancequotes.com to see more about how to get an online Free Quote Request and gain a little more understanding about how you can benefit with all that is being offered for you.
To understand how to get the best rates available to assure an extraordinary Health Care and get it unleashed despite whichever bad experience you have had on this sort of painful research you will be led to an easy and trustful online process which will doubtless clear your mind up to get your ready to make your best choice ever when it comes to look after yourself and your family.
Browsing around on the internet you may find many sites where you can get a Free Insurance Quotation whose provider should deliver a proper Health Care service but unfortunately in most cases you are requested to turn your personal information inside out. However, in the genuine cases, before disclosing personal details, you simply enter your name, some information about past medical diagnoses and email to find out more about the process before being committed to anything. This makes the process safe and easy, and gives us no reason to take a little look deeper at how we can benefit.
Take advantage from this clever and easy engine that will help you get rid of the villain of most middle class US families. Health Care is no longer something that will haunt your dreams from now on. Get the quotation with the best rates available to assure an extraordinary long and joyful life for you and your beloveds.
Hopefully, you will be more encouraged now to take advantage of this greats offers, and see how you, your family, working friends and personal friends can benefit from it once you will be saving money and enjoying a new Health care service that will attend all your expectations and don't ever forget - Health is what we most have to care for.
Visit us at http://www.free-health-insurancequotes.com to see more about how to get an online Free Quote Request and gain a little more understanding about how you can benefit with all that is being offered for you.
Tuesday, June 28, 2011
3 Basic Forms of Car Insurance
Car Insurance Information
Car Insurance is definitely an expensive proposition. The cost gets added on once you purchase your motor vehicle. Some of the costs like servicing costs, repair expenses, MOT, road tax expenses are other extra expenses.Many of us end up paying so much money for fuel like petrol and diesel for our vehicle. Considering all these, it is advised that you go in for Car insurance and also make sure you are getting a good deal on your policy by having the correct car insurance information.
This concept of motor insurance would be really confusing for a novice motor owner. A first timer is sure to get perplexed with all the terms. Once he understands the entire concept after doing some research and also some amount of background reading, he would be in a better position to take the help of the internet to identify a policy which gives him the best for a lesser amount of premium. The right type of car insurance information would help him in the long run and would take care of his add on expenses.
Insurance
The concept of insurance is not as tough as it is perceived to be. Once you do your homework and understand it, it is pretty simple and uncomplicated. There are 3 basic forms of insurance. This is the beginning and you need to take the right decision about the policy you intend to take.
1) Third Party
This is the most uncomplicated and hassle free form of insurance which you could buy. It is mandatory that every motor owner buys it since it is required by law.The concept here is that in case there is an accident caused due to your negligence, you are responsible for reimbursing the expenses related to damage and repair causes to the motor vehicle. A Third party insurance does not give you the flexibility of claiming damages if any caused to your vehicle. Similarly, if your vehicle has been stolen, you cannot claim reimbursement from the insurance company.
2) Third Party, Fire and Theft
This policy is slightly better as compared to simple Third party insurance. In this type of policy, damage caused to another vehicle gets covered. Also damages if any caused to your own vehicle is covered. Moreover, your vehicle is also covered against any damage caused due to fire. It also protects you from theft. This is definitely costlier as compared to the basic policy. It definitely provides a better coverage with a little extra cost.
3) Comprehensive Insurance
This type of car insurance is costlier in comparison to Third party insurance. It covers damages caused to your motor vehicle even if you are responsible for the accident. It protects the defaulter as well. Cases of hit and run are also covered under such a policy. Comprehensive policies cover car audio systems; provide free replacement of your windscreen if damaged. In case your car conks off and you are left stranded midway, you can always dial up the insurance company and help is provided instantaneously. These add on features increase the premium amount. So make sure you would need all these features and then make a decision whether you want to go in for this policy or not. These features make this policy an expensive proposition and you need to decide on your requirement before arriving at a decision.
Detailed information on New York Auto Insurance can be obtained from Department of New York State Insurance. In a city like New York, both the defaulter and defaulted party do not have to bother, since the expenses are covered by respective parties and each party would be able to settle their expenses through their insurance.
Source
http://www.articlesoninsurance.com/3-basic-forms-of-car-insurance/
Car Insurance is definitely an expensive proposition. The cost gets added on once you purchase your motor vehicle. Some of the costs like servicing costs, repair expenses, MOT, road tax expenses are other extra expenses.Many of us end up paying so much money for fuel like petrol and diesel for our vehicle. Considering all these, it is advised that you go in for Car insurance and also make sure you are getting a good deal on your policy by having the correct car insurance information.
This concept of motor insurance would be really confusing for a novice motor owner. A first timer is sure to get perplexed with all the terms. Once he understands the entire concept after doing some research and also some amount of background reading, he would be in a better position to take the help of the internet to identify a policy which gives him the best for a lesser amount of premium. The right type of car insurance information would help him in the long run and would take care of his add on expenses.
Insurance
The concept of insurance is not as tough as it is perceived to be. Once you do your homework and understand it, it is pretty simple and uncomplicated. There are 3 basic forms of insurance. This is the beginning and you need to take the right decision about the policy you intend to take.
1) Third Party
This is the most uncomplicated and hassle free form of insurance which you could buy. It is mandatory that every motor owner buys it since it is required by law.The concept here is that in case there is an accident caused due to your negligence, you are responsible for reimbursing the expenses related to damage and repair causes to the motor vehicle. A Third party insurance does not give you the flexibility of claiming damages if any caused to your vehicle. Similarly, if your vehicle has been stolen, you cannot claim reimbursement from the insurance company.
2) Third Party, Fire and Theft
This policy is slightly better as compared to simple Third party insurance. In this type of policy, damage caused to another vehicle gets covered. Also damages if any caused to your own vehicle is covered. Moreover, your vehicle is also covered against any damage caused due to fire. It also protects you from theft. This is definitely costlier as compared to the basic policy. It definitely provides a better coverage with a little extra cost.
3) Comprehensive Insurance
This type of car insurance is costlier in comparison to Third party insurance. It covers damages caused to your motor vehicle even if you are responsible for the accident. It protects the defaulter as well. Cases of hit and run are also covered under such a policy. Comprehensive policies cover car audio systems; provide free replacement of your windscreen if damaged. In case your car conks off and you are left stranded midway, you can always dial up the insurance company and help is provided instantaneously. These add on features increase the premium amount. So make sure you would need all these features and then make a decision whether you want to go in for this policy or not. These features make this policy an expensive proposition and you need to decide on your requirement before arriving at a decision.
Detailed information on New York Auto Insurance can be obtained from Department of New York State Insurance. In a city like New York, both the defaulter and defaulted party do not have to bother, since the expenses are covered by respective parties and each party would be able to settle their expenses through their insurance.
Source
http://www.articlesoninsurance.com/3-basic-forms-of-car-insurance/
A guide to car insurance saving
Chances are you are paying too much on car insurance. How can I say that? Simple. Most people can't be bothered to research short-term insurance companies. There is no reason in today's technological age for anyone to pay too much for insurance. The Internet is a fantastic tool that's available to most people and it makes researching our choices as easy as one, two, three!
So why don't we? If we all realize that the Internet can force insurance companies to be more competitive, they will do just that. They will have to offer more comprehensive packages and at lower rates. Please keep in mind the following list when assessing your car insurance policy that may save you quite a lot of money at the end of the day.
There are five main ways to lower your insurance premiums. They are:
1. Keep your driver's record clean.
2. Research all the discounts you qualify for, and claim them!
3. Don't drive 'high risk' vehicles and make sure you equip your car with safety devices that will lower your monthly premium.
4. Adjust your coverage to carry more risk i.e. Take a higher excesses.
5. Shop around for a good, low cost insurance provider.
There are a number of discounts you may qualify for, and I'll go over them briefly...
Safety devices and assuming more risk
Fit your vehicle with a tracking device (if you can afford it), an alarm, gear lock and as many different safety devices as you possibly can. This will more than likely lower your monthly premium considerably. Also, most insurance companies have deals worked out with vehicle tracking companies that will offer you a lower monthly subscription.
Also, consider a higher excess. You are not planning on being in an accident or having your car stolen. If things worked like that, we wouldn't need insurance in the first place! Always remembering to drive cautiously and always obeying the traffic laws will lower your risk considerably and make the chances of you having to pay over a large excess much lower.
Combined insurance and renewal rates
Try and insure all your home contents and cars on the same policy. This will most likely save you a significant chunk of cash every month. Also, ask for a discount after a few years of claim-free insurance, as you'll be a loyal customer. They probably won't want to lose you as a customer and will lower your premiums.
Occupations that are lower risk
It sounds silly, but over the years insurers have created a risk profile of prospective clients based on their occupation. Architects and engineers, for instance, are less likely to get into accidents than for instance, a DJ or a bartender.
It's never a bad idea to ask your prospective insurer if your occupation will affect your premiums.
Hopefully you will take to heart all or some of the tips provided in this article, but always 'Shop Around'! To find the lowest possible car insurance premiums you will need to compare, compare and compare some more! Good luck.
Source
http://www.articlesoninsurance.com/a-guide-to-car-insurance-saving/
So why don't we? If we all realize that the Internet can force insurance companies to be more competitive, they will do just that. They will have to offer more comprehensive packages and at lower rates. Please keep in mind the following list when assessing your car insurance policy that may save you quite a lot of money at the end of the day.
There are five main ways to lower your insurance premiums. They are:
1. Keep your driver's record clean.
2. Research all the discounts you qualify for, and claim them!
3. Don't drive 'high risk' vehicles and make sure you equip your car with safety devices that will lower your monthly premium.
4. Adjust your coverage to carry more risk i.e. Take a higher excesses.
5. Shop around for a good, low cost insurance provider.
There are a number of discounts you may qualify for, and I'll go over them briefly...
Safety devices and assuming more risk
Fit your vehicle with a tracking device (if you can afford it), an alarm, gear lock and as many different safety devices as you possibly can. This will more than likely lower your monthly premium considerably. Also, most insurance companies have deals worked out with vehicle tracking companies that will offer you a lower monthly subscription.
Also, consider a higher excess. You are not planning on being in an accident or having your car stolen. If things worked like that, we wouldn't need insurance in the first place! Always remembering to drive cautiously and always obeying the traffic laws will lower your risk considerably and make the chances of you having to pay over a large excess much lower.
Combined insurance and renewal rates
Try and insure all your home contents and cars on the same policy. This will most likely save you a significant chunk of cash every month. Also, ask for a discount after a few years of claim-free insurance, as you'll be a loyal customer. They probably won't want to lose you as a customer and will lower your premiums.
Occupations that are lower risk
It sounds silly, but over the years insurers have created a risk profile of prospective clients based on their occupation. Architects and engineers, for instance, are less likely to get into accidents than for instance, a DJ or a bartender.
It's never a bad idea to ask your prospective insurer if your occupation will affect your premiums.
Hopefully you will take to heart all or some of the tips provided in this article, but always 'Shop Around'! To find the lowest possible car insurance premiums you will need to compare, compare and compare some more! Good luck.
Source
http://www.articlesoninsurance.com/a-guide-to-car-insurance-saving/
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