Reasons To Purchase Life Insurance
So many people out there think that life insurance is for the elderly. The thing is though, everyone needs a policy to cover their final expenses in the event of their death. Are you in college with student loans that your parents are responsible for? Do your parents have enough money to cover your funeral expenses? Are you middle aged with a family that counts on you for income or for the daily care of your children? Would you be leaving your family with a pile of debt that they would have to deal with in the middle of their mourning?
There are many reasons to purchase life insurance. Even if you do not believe in leaving people extra money, as some don’t, you need to at least take responsibility for yourself and that includes your final expenses. The average funeral can cost anywhere from $5,000 to $7,000. Do you have this saved in the bank? Does your family have that kind of cash lying around? Most likely your answer is no, so you want to make sure that you are going to do something about it.
When examining all of your options for life insurance, you will also want to think ahead about taxes. Ask an attorney or your tax accountant about whether or not the money received from your insurance will be taxed. This will help you to determine exactly how much coverage you need to sign up for. If you are worried about saving money on the monthly or yearly premium, know that there are many great companies out there that cater to those who have limited budgets. Going from $10,000 to $15,000 in coverage really isn’t all that much of a difference in the premium.
If you do want to make sure that your loved ones are left with enough to not only cover your funeral expenses, but to maybe pay off the mortgage, put the kids through college or to use for monthly expenses since your income will be gone, you will want to make sure that you are carefully considering how much insurance you need. The good thing is that if you need more insurance coverage, you can always increase the coverage or get a second life insurance policy. You can technically have as many policies as you want, but you might find that having too many can get expensive and a little confusing.
Now that you can see that there are many reasons to take out a policy, it is important to get started comparing your options right away. No one plans death so it is something that you want to make sure that you are preparing for as quickly as possible.
Life Insurance – Do You Need It?
In laymen’s terms, a life insurance policy provides your family with money in the event of your death. No matter how optimistic we are, we all have to acknowledge the fact that we won’t be around forever, and when one partner in a marriage dies, it can leave the remaining partner with a huge financial burden, particularly if there are debts such as a mortgage for example.
Even if you’re young and in perfectly good health, you still have no guarantee that you’ll be here tomorrow. In the United States for example, around one hundred thousand people die each year due to accidents in one form or the other. Basically, if you have any dependents who have to rely on your earnings, then life insurance is certainly something you don’t want to be without. After all, if you were to die tomorrow, what would happen to your loved ones if they suddenly have no money coming in? Will they be able to feed themselves? Would they end up homeless and on the streets because the mortgage can’t be paid? These are all things one needs to think about, unless of course you don’t have any remaining family.
Something else you need to bear in mind is that while you may be in good health now, you could end up with a fatal disease at any time, and if you were to be diagnosed with such a disease tomorrow, you’d have a very hard time getting insurance, hence the reason why it’s not the sort of thing you should keep putting off until tomorrow.
Having insurance doesn’t only mean your loved ones will receive a pile of money when you die, but instead, it can prove to be invaluable in other areas as well. For example, life insurance can make it possible for all your debts to be paid off should you die, and that includes your mortgage if you have one. Insurance can also ensure your kids can continue with their education, or that they can go on to university even if you’re not around to pay for it.
Just for a minute try to imagine how you would feel if your partner was the sole breadwinner in the family, and he or she suddenly died, leaving you with three or four kids to raise, bills to pay, a huge mortgage to pay, and etc. Where would you even begin? As cruel as it may sound, it won’t take long before the debt collectors come knocking on your door, and while they may offer a few sympathetic words regarding the passing of your spouse, they will still want their money.
The bottom line is; millions of people around the world are living a nice comfortable life one day, and then the next day they have nothing because the breadwinner in the family died unexpectedly. Contrary to what many people believe, life insurance doesn’t need to cost a small fortune providing you go about it in the correct way, Also, you need to remember that the longer you leave it, the more expensive it becomes because you’re getting older with each passing day.
There are many insurance policies that you need to buy, but many people end up overlooking one important one – life insurance. This type of insurance is very important because if something happens to you, it helps to make sure that your loved ones are still cared for. Life is uncertain, and you want to make sure that you are prepared for the worst, even if you don’t like to think about it. With a good policy, you can have the peace of mind that comes with knowing that your family will be provided for you. Not sure you need to purchase this type of insurance? Here is a look at some of the top reason you really need to have it.
Reason #1 – Take Care of the Family
Unfortunately, life is uncertain. You never know when something could happen to you. This is one of the main reasons you should be purchasing this type of insurance. When you are covered with this insurance, you’ll know that the family is taken care of, even if something does happen to you.
Reason #2 – Business Protection
Another reason to have life insurance is for business protection. If something happens to a partner in a business, this insurance can help you ensure that the business is still going to be protected.
Reason #3 – Money for the Funeral
If something does happen to you, you may be shocked to find out that even the most simple funeral will cost $6,000 or even more. Your family probably does not have that kind of money to make sure you get a funeral. Why leave them with such a problem after you are gone? Having the insurance you need can help you make sure that there is money available to pay for the funeral.
Reason #4 – Illness May Be Covered
Not only is death something that could hit your family hard financially, but if you ended up with a serious illness, this could cause serious financial problems as well. There are many life insurance policies out there that will also cover certain illnesses. This way if you fall ill, you and your family will be taken care of.
Reason #5 – The Money is Tax Free
There is a tax on almost everything these days. However, the money you get from this type of a policy is tax free. If you die and your family collects on the insurance policy, this money cannot be taxed, which is an important reason you should make sure you have a good plan.
As you can see, there are many reasons that life insurance is an important purchase and these are just a few of the reasons. Don’t leave your family without protection. Make sure you purchase a good policy so you are prepared for the uncertainties that can occur in life.
Steps to Choosing a Life Insurance Policy
In the event of your sudden death would your family be able to survive and carry on financially? For many families, the loss of the main wage earner would be devastating. That is why so many people choose to get life insurance. This type of insurance is something that provides you a peace of mind that when you die, your family is going to be financially taken care of. Most insurance policies are not too horribly expensive, so getting a policy is something that can be affordable for almost anyone. The following will help you through the steps of deciding upon what type of policy you need and how to go about buying one.
Do You Need A Policy?
Before you start figuring out what you need in a life insurance policy and start shopping for one you will need to determine if you even need a policy. Typically, anyone who is responsible for caring for another person or someone who has people they wish to ensure are cared for when they die will benefit from an insurance policy. If you are married or have children then an insurance policy is almost mandatory since you want to be sure they are not left in financial trouble when you die.
Choose the Type of Policy
One of the first decisions that you will have to make about your life insurance policy is to choose either a term or whole life policy. A term policy offers coverage for a set time period. It does not have any cash value. In contrast a whole life policy offer permanent coverage and does carry a cash value.
When it comes to making your choice between term and whole life, you will want to ask yourself the following two questions. The answers will help you to see right away which type of policy is best for you:
Do you want the lowest priced option? If so, then choose a term policy.
Do you want the option to borrow from your policy while you are still living? If so, then choose a whole life policy.
Decide On Your Coverage Amount
You will have various different options in how much insurance coverage you carry. You should take your time in figuring out how much coverage you want. To decide you will want to consider the debts that you have and the financial burden that will come with your death. This can help you decide just how much insurance you need so that your family will be financially stable upon your death.
Once you have decided that you do need life insurance you can begin the process of deciding on what policy is best for you. Deciding if you want term or whole life and choosing the coverage amount are a great start. If you have the information then you can starts hopping around and talking to agents who will help you to find the right policy to suit your needs.
Term Life Insurance – A Look at the Benefits
There are a variety of options available if you are looking for life insurance and one of the best options to consider is term life. Many people find permanent life policies to be very costly, but you don’t have to give up having this coverage. There are cheaper options, like term life, that can keep your family covered for an affordable price. This type of insurance allows you to choose the policy length and the amount of coverage. If you are not sure if this is the right option for you, here is a look at a few of the benefits you can enjoy with this type of coverage.
Benefit #1 – An Affordable Option
One of the main benefits of choosing term life insurance is that it provides you an affordable option. Whole life can be quite expensive because if the investment part of the policy that comes with it. Instead of paying thousands each year for a whole life policy, you can get a term life policy for only hundreds a year. If you need a policy that fits into your budget, this is the best option for you.
Benefit #2 – You Choose
Another benefit of this option is that you are the one that chooses everything. You can choose the length of the policy and you can choose the coverage amount as well. Term lengths are usually 10 years, 20 years, or even 30 years. The amount of coverage can be as low as $100K or as high as several million dollars.
Benefit #3 – Invest Money on Your Own
Instead of going with whole life and allowing the insurance company to invest your money, term life gives you a cheaper plan and the ability to invest money on your own. In many cases, you’ll be able to make a lot more by investing the money saved on the policy.
Benefit #4 – Excellent for the Short Term
If your needs are short term, term life insurance definitely is beneficial. If you need to cover your mortgage or make sure that your children can go to college if something happens to you, this type of a policy works out very well. You can choose a policy that lasts as long as your mortgage or one that expires after your kids are out of college. If you have short term needs and you need to save money, this is a policy that will work out very well for you.
Of course, if you choose this type of insurance, you definitely need to follow a few tips. There are many benefits to enjoy, but only if you make your choice wisely. It’s important that you get enough insurance to meet your financial needs and the term should meet the needs you have as well. Also make sure that you take time to shop around a bit for the best possible life insurance policy so you get a great deal on a good policy.
Life Insurance: Your Different Options
When you start to shop for life insurance coverage, you are going to find that you have two main options. There is whole life and term life coverage. Before you make a decision and just pick one, you want to make sure that you are taking a little bit of time to really learn about the benefits of each. This way, you will be able to purchase the insurance that is best for you and your loved ones. Every situation is different, so there is really no “one size fits all” for such policies. If you need, have someone help you look through all of your different options.
If you are looking for insurance coverage that you will have for the remainder of your life, then whole insurance is probably your best option. This type of insurance will also build a cash value that you can later on borrow against should a big financial problem come up in your life. The downside to this type of coverage is that it is typically more expensive. If you are twenty years old and you do not have any children, this might be the option for you.
With term insurance, the premiums are usually much cheaper. You will find that the policy does have an expiration date though. Someone who has children or a mortgage might not find that their need for life insurance will end in ten years. If however, you are simply looking for temporary coverage, term life is it. With the cheaper rate, you can take the money saved and invest it elsewhere that would bring you a bigger return than the insurance policy itself.
Many people end out starting with term insurance and then as their needs change or the policy expires, they switch to whole life. You really have to make sure that you are looking at all of your options in order to make sure that you are picking the best one for your needs. You will also want to make sure that you are selecting the right amount of coverage, as well as the right kind of coverage. Go over your expenses. Consider how much the average funeral is, the bills you will leave behind and the education you might want to provide for your children.
Shopping for a life insurance policy is not something to do on a whim. You want to make sure that you are setting time aside to think about your options. Of course, you do not want to set too much time aside because you might just find yourself a year ahead into the future, still without any coverage. That is not something you want to do since you just never know when that coverage is going to be needed.
Options to consider on your life insurance
When you are making decisions about what life insurance policy to buy you will have to think about more than just how much coverage you want. There are extra options that you will be offered and you have to decide if they are worth adding onto your policy or not. Some options may be a good deal, but others could be a bad choice. Learn more about the options you may be offered and what you need to know before making your decision.
Critical Illness Coverage
Critical illness coverage, as the name suggests, is a special option that allows you to make a claim on your policy should you be diagnosed with a chronic illness that is listed on your policy. The list of illnesses will differ from company to company and may differ from policy to policy. You will have the option of adding this onto your life insurance policy or taking out a separate policy.
If you feel that you need this type of coverage then it may be wise to go with two separate policies. The reason is that once you make the critical illness claim, your policy ends. If you have it tied in with your life insurance policy then you will no longer have that coverage. However, adding it onto your life insurance policy will save you money on your premiums.
Waiver of Premium
The waiver of premium option offers you additional benefits if you were to lose your job, have to take off work due to injury or illness or be laid off. If you take this option then in the event that you cannot work, the insurance company will pay your premiums. This means that even when you can’t afford to pay your premiums due to not working, you won’t lose your policy. This is well worth considering, especially if the economy is shaky and there is a risk that you could lose your job or if you work in a very hazardous field where injury could be highly likely. Another benefit of the wavier of premium option is that it will not add much extra cost to your policy.
Indexation allows you to get an increase in your policy as dictated by inflation. With this option you will get a raise each year based upon the economic situation. It is automatically done by your insurance company for you each year. Keep in mind, though, that if you choose indexation that not only your coverage amount rises, but your premium will also.
These are the top three options that you may be offered to add onto your life insurance policy. You may be extended other options. Consider any option you are giving carefully. You want to be sure that it makes financial sense and that it is really something that you need.
The Differences Between Term and Whole Life Insurance
One of the main choices you will have to make about your life insurance policy is whether you will go with a term or whole life policy. The differences between the two are important to understand since each one offers you something different. You will find advantages and disadvantages to both options. You will have to decide which type of insurance is the best for your particular situation.
Term life insurance is the lowest costing type of insurance. It provides you with coverage for a set period of time. At the end of that set time period your coverage is over. If there is no claim made on the policy then you do not get any money from it.
The reasoning behind this limited coverage is simple. Most people get insurance in case they die early, meaning that they die before retirement while their children are still young and their families relies upon their income for support. It is reasonable that as a person gets older and their children grown up that they may not need the insurance. Also once a person reaches retirement they generally have no debt or only a small amount of debt and they are collecting on retirement funds that they have put away while working. If this is your situation a term policy would suit you just fine. You would have the coverage there when you need it and once you no longer need it then you can simply let the policy end.
Whole Life Policies
A whole life insurance policy is more expensive than a term policy. It also is a permanent policy, which means it will last your lifetime as long as you stay current on your premium payments. It also accrues cash value. This allows you to borrow from it if the need should arise. It is an asset that actually has some value for you while you are still alive.
Whole life policies involve a pricier premium because you are paying for the insurance coverage and towards the value of the policy. With every payment you make a portion goes towards your coverage and another portion is invested and becomes the cash value of the policy that you can borrow.
Whole life policies are nice since they do have cash value. However, if you cancel a policy within a certain time you could have to pay penalties. You also may find other options of getting money, like through a personal loan, are much cheaper in the long run than a whole life policy.
When it comes to choosing term or whole life insurance, you really must think about your situation. Consider your needs and your family’s needs. Take time to consider the pros and cons of each option. You want to be sure that whatever you choose is the right choice for you and your family.
Term Life Insurance – How You Can Save
For families, often term life insurance is a great option, providing a reasonably priced way to keep your family’s future protected. The good news is that there are ways that you can save even more on this type of a plan. Here are several great money saving tips you can use when making this purchase to save more money.
Tip #1 – Purchase at a Young Age
There are many younger people that don’t see why they need this type of insurance. Sure, you may not have as many financial needs, but you’ll also find that the rates are going to be cheaper at this point as well. If you can lock in plenty of protection while you are young, you will be able to get good prices, which saves a lot of money.
Tip #2 – Choose the Right Coverage Length
Another important tip that can help you save on your term life insurance is choosing the right coverage length. Each person is a bit different and the needs one family has will be different than another family. If you are younger, you may want to go with a 20 year term. If you are closer to retirement, going with a shorter term is a good idea. On the other hand, if you take out a 30 year mortgage, then going with a 30 year term is a great idea to make sure that your mortgage is covered.
Tip #3 – Look for a Break in Price
There are a variety of different price breaks that you may be able to get, depending on the coverage amount that you end up choosing. In many cases, you’ll end up paying less for more coverage. When you increase your coverage, you will often find that the price barely increases at all, making it well worth the bit of extra money.
Tip #4 – Get the Coverage Right for You
You’ll find that many life insurance agents try to get you to purchase more coverage than you really need. You need to make sure that financial loss can be replaced, but you don’t want to pay for too much coverage. Usually you’ll get the best coverage and the best deal when you go with an amount that is about 7-10 times the amount you make yearly.
Tip #5 – Try Different Payment Options
Another way that you may be able to save on this type of insurance is by going with a different payment option. If you pay the entire premium up front of you pay directly from your bank account with EFT, there is a good chance that you’ll end up getting a nice discount. You may even get a discount by choosing online billing options instead of paper billing.
You can get quality term life insurance without having to spend too much money. Keep these tips in mind and you’ll be able to find great ways to save.
Tips to Purchase the Right Life Insurance Plan for You
While you probably know that you need life insurance, finding the right plan for your needs can be a bit difficult. There are many choices out there, and deciding on one is tough. If you want to make sure you choose the right plan, here are a few tips to follow.
Tip #1 – Know What You Need
You are the one that intimately knows about your own financial situation. Don’t let other people tell you what you need. To get a good idea of what you need, add your debt, the cost of a funeral, and income replacement for 6-12 months together. This will help you to come up with a good idea for protection. Taking a look at your finances and knowing what you need will help you to choose the best policy for your needs. Remember, insurance agents are trying to sell big policies and you may not need that much coverage, so look at your own situation and figure out your needs first.
Tip #2 – Understand the Options
You have a couple of options when it comes to life insurance – term versus whole. There are benefits to both options. Take a close look at the pros and the cons to both before making up your mind. Then make an informed choice when making up your mind. Don’t just choose one because an agent told you to.
Tip #3 – Realize That This is Protection
Many people look at life insurance as an investment, but really this is protection. Whole life and other universal policies do come with a savings option, but they cost a whole lot more. Instead of trying to invest in a policy, going with the protection of a term life plan and then using the savings to put in other investments may be a good idea.
Tip #4 – Comparison Shop
When you are looking for the right insurance, it is definitely a good idea to take some time to comparison shop. There are many companies out there offering policies that are very similar. Just make sure that you compare products that are similar for the best comparisons. This will help you to find the best product and the best possible price.
Tip #5 – Investigate
Before you make the purchase of an insurance policy like this, take the time to investigate. Take time to find out what is available and make sure that the option you choose is going to fit your budget and your needs. It’s also very important that you understand a contract before signing it. You don’t want to sign your name to something that you don’t understand. If you take the time to research and investigate life insurance policies and what you need, you’ll end up with a quality plan in the end that will keep you protected.
Things to keep in mind when shopping for Home insurance
Unless you’re fabulously wealthy, purchasing a home of your own is likely to be the biggest investment you ever make. Of course once you’ve signed on the dotted line, and you’ve taken possession of the keys, you’ll more than likely then spend the rest of your life improving your home in one way or the other. Whether you purchase new furniture, have the place painted, or whether you decide to get a new kitchen, owning a home of your own costs money. That’s not to say it’s a bad thing, because after all, you could always sell the property again, and unless you’re extremely unfortunate, you will make a profit.
Now, considering owning a home means so much to the average person, and that they’re willing to spend a vast deal of money on it, it would only seem logical to make sure a home you own is adequately insured. While nobody wants to think their home will one day get destroyed, you also can’t be sure. Even something as minor as an electrical fault can leave your home damaged beyond repair. Sure, if you’re at home, and a small fire breaks out, you could more than likely deal with it, but what happens when there’s nobody home. A fire can ravage a home in minutes, and even if the fire crews get there in record time, you’d still be looking at extensive water damage. If you were to be 100% honest with yourself, are you well and truly financially capable of building yourself a new home, and then furnishing it all over again?
Let’s forget about things such as flooding and fires. If statistics are anything to go by, your home is almost certainly going to get broken into, and with the recent recession, crime is on the increase. If you’re unfortunate enough to experience a burglary, you had better be prepared, because the days of “snatch and run” are long gone. Criminals are no longer happy just taking what they can and then leaving, but instead, they almost always vandalize the properties they target.
There really is no argument as to whether or not home owners need home insurance, but with that said; they also need to exercise a certain amount of caution, because the cost of insurance can vary tremendously from one provider to the next. Fortunately things have changed though, so it is no longer necessary to spend hours and hours on the phone in search of affordable coverage. Not only can you shop for home insurance online, but if you really want to save time, you may even want to consider using a comparison website that can let you have several quotes from some of the leading providers.
Lastly but not least, there are several measures you can take as a home owner in order to keep the cost of home insurance as low as possible. For example, you need to make sure you have smoke detectors and a fire alarm installed, and above all, you need to ensure your home is not an easy target for thieves. This can be accomplished by installing some security lighting, burglar bars, and etc.
Providing you’re willing to shop around, after having done some research, you’ll almost certainly find home insurance you can count on, and it shouldn’t cost you a small fortune either.
FREQUENTLY ASKED QUESTIONS |
Q: What are the advantages of using an agent to purchase insurance rather than trying to do it on my own?
A: By using an agent to purchase insurance, the policy holder can be sure to get more individual and personalized service. A local and independent agent is more likely to provide you with both quality insurance and competitive pricing. Plus, direct contact can be extremely important when you have to file a claim.
AUTO INSURANCE FAQ’s
Q:What kinds of questions will I need to answer or information will I need to provide when I apply for auto insurance?
A: When you apply for an auto insurance policy you will have to provide general information such as your full name, gender, age, and address.
A company will want to know about the previous driving record of the person/persons the insurance will be for – previous accidents, tickets incurred and so on. They will also need to know what year, make and model the car is that the insurance will cover.
The insurance company will also need basic info on the car you drive to determine the fair price. A large luxury car for example would cost more to repair or replace than a small compact one. Plus, your mileage and where most of the mileage is incurred play a role in price as well. For someone who has a 30 mile commute to and from work per day would have to pay more than someone who only drives around on town or on the weekends. That’s because the one traveling more each day would be at a higher risk for being involved in an accident.
Insurance companies have different rates and programs based upon the information they are given. Adults, for instance, with good driving records will pay far less for auto insurance than a young driver who has had several tickets.
Q:If I have an older car that has a low market value, is it really necessary to purchase insurance?
A: Most states have laws that require you to have at least some type of auto insurance. These laws are to protect not only you but also whoever you may get in an accident with. The laws ensure that victims of accidents will receive compensation for their losses from the individuals who was at fault.
Many times the cost of repairing an older car is greater than the value of the car. In such a case the insurance company will declare the car “totaled” – and will issue a check for the car’s fair market value minus the deductible.
Q: What is the difference between Collision Physical Damage Coverage and Comprehensive Physical Damage Coverage?
A: Collision Physical Damage Coverage:
Losses which occur when your car collides with another vehicle or object. If you hit a car in a parking lot, the damages will be covered under this insurance.
Comprehensive Physical Damage Coverage:
Provides coverage for most of the other physical damages you could incur on your vehicle. If your car has hailstorm damage, this insurance covers it.
Q: What factors affect the cost of my insurance?
A: Many factors affect the cost of your insurance such as:
What your car is used for and your personal driving record.
Q: What are some things I can do to lower my homeowner’s insurance?
A: There are quite a few things you can do to lower the cost of your homeowner’s insurance. You can check with you local agent and have them give you a comprehensive review of your policy and your needs.
There are also discounts available that you may qualify for. For instance, many insurers will give a discount when you place both your automobile and homeowners insurance with them. Other factors that help to lower costs are – security systems and deadbolt locks on doors.
Raising your deductible is another way to lower your premium.
Q: What should I consider when purchasing homeowner’s insurance?
A: Things you should consider when purchasing homeowner’s insurance include:
The amount of insurance you need.
The coverage limit should equal 100% of its replacement cost. Plus you need to decide the personal property and personal liability needs for your home.
Determine which additional endorsements you may need.
Ex. property replacement cost endorsement, earthquake endorsement, jewelry endorsement, etc.
Talk to your local carrier to see what additional coverage you may need.
Q: What does homeowner’s insurance cover?
A: Typical homeowner’s policies have two main sections:
Section 1 covers the property of the insured. Section 2 provides personal liability for the insured.
Q: What is the difference between “actual cash value” and “replacement value”?
A: Actual cash value – the policy owner is entitled to the depreciated value of the damaged property.
Replacement cost – policy owner is reimbursed an amount adequate to replace the article with one of similar value at current prices.
Q: What are the policy limits for the standard homeowner’s policy?
A: Primary dwelling and other structures are protected on an “all risks” basis up to policy limit. “All risks” means that unless damage or destruction happens in another way than those specified in the policy, there is coverage.
Losses for personal property are covered on a “named perils” basis. This means that you have coverage only when your property is damaged or destroyed in the manner specifically described in the policy. Policy limit on coverage equals 50% of the policy limit on dwelling. Limits for the coverage are equal to 50% of the policy limit on the dwelling. Limits for coverage for additional expenses that are incurred when the residence cannot be used because of insured loss is equal to 20% of the policy limit on dwelling.
The coverage limit on personal liability is determined by the policy owner at time of issue. Coverage limit on medical payments is usually set at $1000 per injured person.
Q: When and where is my personal property covered?
A: Personal property (unless specifically excluded) is covered anywhere in the world at any time. If for example your furniture gets damaged while in shipment to another place, your homeowner’s policy will cover it.
RENTER’S INSURANCE FAQ’s
Q: How is my personal property protected under renter’s insurance?
A: Renter’s policies provide “named perils coverage”. That means that the policy only pays when property is destroyed or damaged by ways specified in the policy. These usually include:
Sudden damage from artificially generated electrical current
Renter’s coverage applies to your personal property whether you are at home or not.
Q: If I share an apartment with a roommate, do we both need renter’s insurance?
A: Standard renter’s policies only cover you and your relatives that live with you. If your roommate is not a relative, he/she will need to purchase their own insurance.
LIFE INSURANCE FAQ’s
Q: How much life insurance should an individual purchase?
A: Many factors should be taken into account when determining the amount of life insurance for you and your family. These factors include:
Amount of death benefits payable from Social Security and additional insurance policies
Special needs regarding the life insurance (ex. pay off of mortgage, college education fund, etc.)
Your local insurance provider can assist you with figuring out the suited amount of coverage for your needs.
Q: Is it necessary to purchase insurance for spouses and children?
A: Sometimes it is advisable to purchase life insurance on your spouse and children, however these purchases should always be in addition to the appropriate amounts of insurance on the breadwinner of the family.
Q: Should I purchase term or cash value life insurance?
A: This depends on your personal circumstances. Talk to your local insurance provider to help you decide what is best to suit your particular needs.
For any additional questions you may have, please feel free to stop by or give us a call. We are here for you!
Simple Ways That You Can Reduce the Cost of Life Insurance
Many people believe that it is not possible to get a lower price on life insurance than what they have been quoted by their agent. It is true that some of the factors used to determine your insurance price are not negotiable, like your age and health. However, there are other factors that you can control. By controlling these factors you can get a lower cost on your insurance.
Here are easy things that you can do to lower your life insurance cost and get the best deal possible:
– Consider getting more insurance. You may not know this, but once you reach a certain level of coverage the premiums actually start going down. You can simply ask your agent at what level the premiums start to drop. Not only will you save money, but you get more coverage for your money, so it is a win-win deal for you.
– If you have a health condition, then seek out a company that specializes in offering life insurance to high risk individuals. There are actually companies that exist that will give you a break and not count your condition against you as much as other companies. Usually if you have a preexisting condition you will automatically pay higher rates than someone who does not. So, seeking out a company that is willing to give you a break can save you a lot of money.
– If you are a smoker then considering giving up the habit. Smokers will always pay more for any type of insurance. This is due to the fact that so many different diseases and health conditions are linked to smoking. If you quit smoking you can greatly reduce your insurance costs.
– Watch out for hidden fees and costs. If you do not read through your policy carefully then you will never notice the little fees and extra costs that have been added on. One of the smartest things that you can do when shopping for insurance is to know your policy inside and out. When you are aware of every cost the company is charging you, then you have the opportunity to negotiate them and possibly get them reduced or taken off.
The tips above can save you a considerable amount of money. If you just pay attention and start being more proactive about your insurance costs you might be surprised at just how much money you can save. All it really takes it taking the time to find out how you can save money. Most people never try to find out if they can save money and they just settle on whatever price their insurance agent quotes them. This is a huge mistake. There is no reason at all to overpay for life insurance when you can save a lot of money just by employing simple tactics.
Things to Consider When Looking for Auto Insurance
If you are looking for ways to save money on your automobile insurance, there are a few things that you should consider before just jumping on the lowest offer out there. First of all, if you are looking online for insurance quotes, you need to be aware that all of the insurance quotes that you find are not contractually obligated offers. In other words, the quote you get back is not guaranteed to be the actual rate you will end up with.
These insurance quotes are provided based solely on the information you provide them. They can be negotiable. The actual quote will come once you speak with an agent personally. This is important for you to know when you are comparing insurance rates based on online quotes. Just because one company seems to have cheaper premiums does not mean you should settle for it without further checking with other companies. Remember, nothing is final in the initial quote stage. You may end up finding better coverage and cheaper rates with a company that you would have ruled out to begin with.
Auto insurance premiums are based on many factors. Some factors are non-controllable such as your gender and age. Others that determine auto insurance rates include:
Driving Record –
Your driving record includes tickets you may have received or wrecks you may have been involved in. The better your driving record is, the cheaper your rate will be. Those drivers who have had quite a few tickets or accidents are considered to have a greater risk factor, therefore they will have higher premiums.
Vehicle to be Insured –
The type, model, make and age of your car plays a big role in how much you insurance premium will be. Older model vehicles usually have a less expensive premium unless they are classic or sports models. Auto insurance on newer vehicles will of course cost more because the vehicle would be more expensive to replace. You can actually check on the market value of your car by checking the Blue Book. This may give you some insight when shopping for the best insurance.
Driving Location –
Insurance companies also base premium rates on where and what the vehicle is to be used for. For instance, the one who commutes an hour back and forth to work everyday on the interstate can expect to pay a higher premium than the person who drives to town once or twice a week. This is because on has a higher risk of being involved in an accident than the other.
There is a lot to consider when you shop for auto insurance. Don’t settle for less just because it’s cheaper. Do your homework. Shop around. Talk to the agents and compare the notes to see which auto insurance is right for you and your particular needs.
5 Tips to Help Lower Your Homeowner’s Insurance
If you are a homeowner or a soon to be homeowner and are looking for ways to lower your homeowners insurance costs, here are a few tips that might help.
1. Shop Around
It definitely pays to shop around and compare homeowner’s insurance prices before you buy. The price you pay for homeowner’s insurance can vary by literally hundreds of dollars. So don’t settle on the first company that you go to no matter how great they may seem.
It may take a little bit of time and effort to shop around, but in the end it will be well worth it. Check online or the Yellow Pages for insurance companies near you. Go in, sit down and talk to them. Listen to what they have to offer. But, make sure that they know that you are shopping around.
Premium price is not the whole issue. Once you have checked out several insurance companies, pick the company that you feel will be best for you – one that you know will provide you with the best service. Dependable service is a must for insurance providers.
2. Raise Your Deductible
If you do not want to have to pay high premiums every month, you can choose to go with a higher deductible. That means that you will have to pay more out of pocket when you have a claim, however, you save money throughout the year on premium costs. Most companies suggest you have a deductible of around $500. If you can afford to raise that deductible to $1000, you may save as much as 25%.
According to the area you live in, there may be separate deductibles for various kinds of damage. You need to check with your insurance provider regarding that.
3. Improve Home Security
Another way to save on homeowner’s insurance costs is to invest in a home security system. This can actually save you as much as 15-20% off of your premium depending on the type of system you have installed.
4. Purchase Auto and Home Insurance From the Same Company
Many insurance providers that sell homeowners insurance will give you a 5 to 15 percent discount if you buy two or more policies from them. It is important to make sure that the discount really is a savings. Make sure that the combined price is lower that if you were to buy it from tow separate companies.
5. Maintain Good Credit
Establishing and maintaining a solid credit history can cut insurance costs. Many insurers rely on credit information to price their homeowner’s insurance policies. If you have maintained good credit through the years, this will help in getting a better and lower rate.
Following these simple tips can help you to get a better deal on your homeowners insurance. So do your homework. It will save you money in the end.
Term Life Insurance quotes are preferred by most people. It is the least expensive form of life insurance which makes it affordable for the majority of the population. Our life insurance quotes are quick and easy. Life Insurance quotes from good companies that are affordable are our specialty. We’ve done the work to make the process as simple as possible.
It is important to understand that life insurance quotes can vary from the final rate that a policy applicant is given and that the life insurance quotes are not guaranteed. Some of the things that can affect the final rate are family history of cancer or heart disease, driving history, smoking history, high blood pressure, high cholesterol, hazardous occupation or hobbies and height and weight ratio that is out of the range provided by the insurance company. It is important to have life insurance quotes from a variety of term life insurance companies because rates and underwriting guidelines vary with each company.
It is necessary to determine the amount of life insurance that you need before you get your term life insurance quote. Another key area is to make sure that the company you receive your life insurance quote from is a good company as rated with AM Best. It is also important to make sure that the life insurance rate fits into your budget. Term life insurance quotes are available in 5 year increments and payment modes are flexible.
The two types of life insurance are term and whole life. A level term policy is the most widely chosen policy because the rates stay this same for the entire term of the policy. This way you never have to worry about rate increases. If you get life insurance quotes for whole life you will notice them being substantially higher than the same about of coverage for term life. Since rates for life insurance are affected by your health and your age it is a really good idea to lock in rates as soon as you can. You never know when your health situation may change which can cause the premiums to be at a higher rate and every year we all have a birthday that will cause the rates to be higher.
Life insurance is important to a family’s security. Every dollar you spend every day, every mortgage payment, car payment, future education for your children, cost to run the household, cost to pay for child care, business debt, loss of income and on and on are all critical to your families stability. In the worst possible time in a family’s life no one wants to leave their family in a financial bind. Can the surviving spouse cover the cost for the family monthly income? Can they afford to pay off all of the debt? Can they pay for future educations? Are you fully covered for both spouses in case they both lose their lives in a car accident for example? The right level of coverage is important and needs to be determined carefully. Everyone needs life insurance.
Ethics in Finding Best Car Insurance Quotes
Buying a car now days has become easy and simple, but insuring the car is most difficult and tricky task. We can buy a car by selecting the model, test driving and car within our budget. For car insurance we can’t select the insurance quotes which our neighbors selected or with minimum premium amount. Selecting the right car insurance is the most challenging task after buying a brand new car. Many insurance agents give all types of coverage which that is not necessary for us just to increase our premium amount, so before going to insurance ask yourself what the coverage you are going to add in insurance:
What is your make and model of the car?
Do you have any security system in car?
Does your car have any accident or hail damage?
What is your finance type does it hire purchase or lease?
How many miles do you drive in a year?
How is the car used like private, business or goods carrying?
Where do you park your car?
When do you get your valid driving license?
Do you have any claim over four years?
Your No Claim discount rating?
Younger drivers in your family who drive the car?
If you have answers to these questions, you can easily get the quote which covers all the insurance coverage. Have a clear idea about your necessary coverage and compare car insurance quotes given from different companies with same coverage and select the best quote.
Finding the best quote is not the end, next step is to reduce your premium with all this coverage. Here are some car insurance discount tricks:
—Many insurance companies give discount for insuring more than one car. Discount range can be about 20% to 25% of the single insurance so get the insurance for two or more cars to get the discount.
—Driving your car for less distance is eligible for less use discount; for example if your distance travelled in year is 5000 miles then you are eligible for lower use discount.
—Car having special equipments like security alarms, air bags, anti lock brakes and other safety equipment then there is some discount ranging from 10% to 15% in yearly premium reduction.
—If you have any younger drivers as a secondary driver is a student and he or she is enrolled in driver education program then you have a student discount and you can save up to 10% in yearly premium when he or she is not using the car.
—Increasing your deductible makes an added advantage. For example you are claiming for $300 and your deductible is $300 then only you should pay the full amount $300 where your insurance company pays none, so increasing your deductible won’t pinch your pocket when you claim.
—If you enrolled in driver’s training program then you have driver’s training discount, for example Esurance offers $50 yearly for taking driver’s training course monthly and if you are senior citizens this discount doubles and you can save up to 5% to 10% in yearly premium amount.
Some governments made third party’s car insurance mandatory so include the third party’s car insurance in your insurance to get discounts. This insurance is used to cover the others who got damage in accident caused by you. These are the simple steps to reduce your insurance premium amount with same full coverage.