The 5 Step Guide to Considering Insurance Offered by Credit Card Companies

By Bobbie Sage

1.Become knowledgeable about what credit insurance is:

If you own a credit card you have probably been asked by the company if you would like to add credit insurance. Most are unfamiliar with this type of insurance and either decline it or accept it automatically without knowing if it is the right type of insurance for their needs. As with all insurance, determining need is different from person to person because of our different lifestyles and obligations. Credit insurance may be beneficial to some but just an unneeded cost for others depending on one's situation. Knowing what credit insurance is and the different types can help you make an informed decision.

Credit insurance can come in a variety of forms. The four main types are credit life, disability, unemployment, and property:

I.Credit life insurance pays off the debt you owe if you die. The beneficiary of the policy has to be the company that the debt is owed to.

II.Credit disability insurance protects your credit rating by making your monthly minimum payment if you become medically disabled. Usually there is a set time period that payments will be made and additional purchases after the disability will not be included.

III.Involuntary unemployment credit insurance will make your minimum monthly payment if you are laid-off or downsized, and again, purchases after the involuntary unemployment would not be covered.

IV.Credit property insurance usually will completely cancel debt on items you purchased with the credit if the items are completely destroyed by specific incidents listed in the policy and a deductible would not apply for the damages to be paid.

2.Know how credit insurance is marketed:

Now that you know a little more about credit insurance it is important to understand how it is marketed or sold to consumers. Usually companies will ask you to purchase it when you sign-up for the credit or in a later telemarketing solicitation. When credit insurance is purchased it is offered free for a specific time and sometimes the company will give you a check to cash into your bank account as an incentive to try out the credit insurance. By cashing the check you are enrolling in the program.

Unlike a lot of insurance plans, credit insurance can start by a verbal "yes" and does not necessarily require a signature so make sure you pay attention to what you are agreeing to or filling out on your credit application.

3.Decide if credit insurance is for you:

Considering your current and future financial needs is the first step in determining if you might benefit from credit insurance. If you already have substantial life and disability insurance policies, it may be possible that you will have enough coverage in those policies to cover your credit accounts due to your death or disability. But, on the other hand, if you don't have any type of life and disability policies that does not necessarily mean credit insurance is the best choice for you.

Credit insurance may not be as cost effective and is certainly not as flexible as traditional life and disability policies. For example, if you have a lot of credit cards you would have to take out a policy on each of those accounts. With all those monthly policies, you may be able to purchase a traditional life and/or disability policy for less and get more coverage, not to mention after your credit balance is paid with a traditional policy your dependants would receive the remaining amount. And, as previously mentioned, with disability and unemployment insurance only the minimum payment is covered and only for a specified amount of time. It is possible that after interest is accumulated from only minimum payments being made that the balance could be larger after the specified time allowed in the policy for payments.

4.Inquire about the credit insurance policies being offered to you:

If you decide that credit insurance is for you it is important to know about the policy your are getting. You will want to ask about what is excluded in the policy. And remember that if you purchase a credit insurance policy that encompasses all 4 types of credit insurance (life, disability, unemployment, and property), make sure you are not paying for something you don’t need. For example, if you are not employed at the time of getting the unemployment insurance you are paying for a coverage that you will not use. Another example would be with credit life insurance. Some policies are limited to age restrictions and the credit insurance sales person will often not ask your age but instead just sign you up for the insurance. Make sure you research all the requirements carefully before accepting the policy.

5.Find out if you can easily cancel credit insurance:

As stated earlier, most credit insurance is on a beginning free trial basis. After the free trial is over you would need to decide if you would want to keep the policy or not. Unfortunately, after the free trial period it may become more difficult to cancel a credit insurance policy. In some cases it is hard to locate the correct phone number to cancel the policy. Contacting the credit card company may not be helpful either since they may not be sure what insurance company may have offered you the credit insurance.

If you do decide to purchase a credit insurance policy make sure when you are purchasing it you get all the information you would need in order to cancel it, and keep that information stored in a safe place with the accompanying credit card information.

15 Insurance Policies You Don't Need

by Lisa Smith
Fear of the future sells insurance. Because we can't predict the future, we want to be ready to cover our financial needs if, or when, something bad happens. Insurance companies understand this fear and offer a variety of insurance policies designed to protect us from a host of calamities that range from disability to disease and everything in between. While none of us wants anything bad to happen, many of the potential catastrophes that happen in our lives are not worth insuring against. In this article, we'll take you through 15 policies that you're probably better off without. (To learn about the basics of insurance, see Understand Your Insurance Contract and Exploring Advanced Insurance Contract Fundamentals.)
1. Private Mortgage Insurance
The infamous private mortgage insurance (PMI) is well known to homeowners because it increases the amount of their monthly mortgage payments. PMI is an insurance policy that protects the lender against loss when lending to a higher-risk borrower. The borrower pays for this insurance but derives no benefit. Fortunately, there are several ways to avoid paying for this unnecessary policy. PMI is required if you purchase a home with a down payment of less than 20% of the home's value. The small down payment is viewed as putting you at risk of defaulting on the loan. Put down at least 20% and the PMI requirement goes away. Alternatively, you can put down 10% and take out two loans, one for 80% of the sale price of the property and one for 10%, although interests rates can prevent the economics of this maneuver from working out in the homeowner's favor. (To read more about mortgages, see Understanding the Mortgage Payment Structure, To Rent or Buy? The Financial Issues - Part 1 and Part 2.)

2. Extended Warranties
Extended warranties are available on a host of appliances and electronics. From a consumer's perspective, they are rarely used, particularly on small items such as DVD players and radios. If you purchase a reputable, brand-name product, you can be fairly certain it will work as advertised and that the extended warranty is statistically likely to be unnecessary. If you spend $5,000 on a giant, flat-screen television, the policy is still unlikely to pay off, but might make you feel better. For everything else, forget it. (To learn more, read Extended Warranties: Should You Take The Bait?)

3. Automobile Collision
Collision insurance is designed to cover the cost of repairs to your vehicle if you are involved in an accident. If you have a loan out on the car, the loan issuer is likely to require that you have collision insurance. If your car is paid off, collision is optional; therefore, if you have enough money in the bank to cover the cost of a new car, collision insurance may be an unnecessary expense. This is particularly true if you are driving an old car, because cars depreciate so quickly that many vehicles are worth only a fraction of their purchase price by the time the loan is paid in full. (To find out more about car insurance, read Shopping For Car Insurance.)

4. Rental Car Insurance
Most auto insurance policies offer additional coverage for the cost of car rentals, touting it as a useful feature if your car is ever involved in an accident and needs to spend some time in the repair shop. This may sound like a good idea, but in reality, most people rarely rent a car, and when they do, the cost is relatively low and hardly worth insuring against. Although rental car insurance is relatively inexpensive, amortized over the course of a lifetime you are still likely to spend far more than you will benefit.

5. Car Rental Damage Insurance
Many auto insurance policies already cover rentals, so there's no need to pay for this twice. Check your policy before you pay. Depending on where you rent the vehicle, you may also be able to pay a small fee for insurance on your rental when you pick it up at the rental center. If this fee is less than what you'd pay for a year in your old policy, choose the fee over the policy. (To read more, see Travel Tips For Keeping You And Your Money Safe.)

6. Flight Insurance
Flight insurance coverage is completely unnecessary. Despite media portrayal, airline accidents are relatively rare, and your life insurance policy should already provide coverage in the event of a catastrophe. (For more information on life insurance, see How Much Life Insurance Should You Carry?, Life Insurance Distribution And Benefits and Life Insurance Clauses Determine Your Coverage.)

7. Water Line Coverage
Water companies have made an aggressive push to sell policies that cover the repair of the water line that runs from the street to your house. The odds are in your favor that you will never use this coverage, particularly if you live in a newer home. If you live an average suburban neighborhood and you do need to repair the water line, the distance to the street is short, the likelihood of a problem is low and repair costs are a few thousand dollars or less. The same goes for policies offered by other utility companies.

8. Life Insurance for Children
Life insurance is designed to provide a safety net for your heirs/dependents. Because children don't have heirs to worry about and, statistically speaking, most kids will grow up safe and healthy, most parents should not purchase life insurance for their kids. Instead, use the money that you would have spent on life insurance to fund an education plan or an individual retirement account (IRA). (To read more on saving money for your kids, see Investing In Your Child's Education, Teaching Your Child To Be Financially Savvy and Don't Forget The Kids: Save For Their Education And Retirement.)

9. Flood Insurance
Unless you live in a flood plain or an area with a history of water problems, don't even bother buying flood insurance. If none of the homes in the area has ever been flooded, yours is unlikely to be the first.


10. Credit Card Insurance
Purchasing coverage to pay your credit card bill in the event you cannot pay it is a waste of money. A far better idea is to avoid running up your credit cards in the first place, so you won't need to worry about the bills. Not only do you not save on the insurance premiums, you'll also save the interest on your debt. (To learn more about credit, see Take Control Of Your Credit Cards, Credit, Debit And Charge: Sizing Up The Cards In Your Wallet and Understanding Credit Card Interest.)

11. Credit Card Loss Insurance
Federal law limits your liability if your credit card is stolen. Your out-of-pocket costs are limited to $50 per card and not a penny more. In fact, many credit card companies don't even try to collect the $50.

12. Mortgage Life Insurance
Mortgage life insurance pays off your house in the event of your death. Rather than add another policy - and another bill - to your list of insurance plans, it makes more sense to get a term-life policy instead. A good life insurance policy will provide enough money to pay off the mortgage and to cover other expenses as well. After all, the mortgage isn't the only bill your survivors will need to pay. (To read more, see Buying Life Insurance: Term Versus Permanent.)

13. Unemployment Insurance
This coverage makes minimum payments on your bills if you are out of work, which sounds like an attractive proposition. A better plan is to save your money and build up an emergency fund instead. You won't have to cover the cost of the insurance policy and, if you are never out of work, you won't spend any money at all. (Find out how to create an emergency fund in Build Yourself An Emergency Fund.)

14. Disease Insurance
Policies are available to cover cancer, heart disease and other maladies. Instead of trying to identify every possible disease that you may encounter, get a good medical coverage policy instead. This way, your medical bills will be covered regardless of the problem you face. (For related reading, see Fighting The High Costs Of Healthcare.)

15. Accidental-Death Insurance
Unless you are extraordinarily accident prone, an accident is unlikely. Major catastrophes such as car wrecks and fires are covered under other policies, as is any harm that comes to you while at work. Accidental-death policies are often fraught with stipulations that make them difficult to collect on, so skip the hassles and get life insurance instead.

When Choosing Insurance
There are so many policies to chose from, and they all cost money. While a certain amount of insurance coverage is necessary and prudent, you need to choose carefully. In general, broad policies that offer coverage for a multitude of potential events are a better choice than limited-scope policies that focus on specific diseases or potential incidents. Before you buy any policy, read it carefully to make sure that you understand the terms, coverage and costs. Don't sign on the dotted line until you are comfortable with the coverage and are sure that you need it.

To read more, see Five Insurance Policies Everyone Should Have.

Insurance Tips For Homeowners

by Glenn Curtis
Homeowners' insurance isn't a luxury, it's a necessity. In fact, most mortgage companies won't make a loan or finance a residential real estate transaction unless the buyer provides proof of coverage for the full or fair value of the property (most of the time this is the purchase price). In this article, we'll show you some simple actions you can take to make sure your homeowners' insurance is sufficient for your needs. (To learn more about insurance, see Understand Your Insurance Contract, Exploring Advanced Insurance Contract Fundamentals and Fifteen Insurance Policies You Don't Need.)
Homeowners' insurance can be very expensive. Those that live in high-risk areas such as close to major waterways, known earthquake fault lines or other high claims areas will pay the most for coverage. In fact, those in high-risk areas are often forced to pay annual premiums in the many thousands of dollars. But even homeowners in relatively sedate, suburban neighborhoods (with property values around the national average of $210,000) could pay between $500 and $1,000 a year for a basic policy.

In Pictures: 10 Insurance Tips For Homeowners

The good news is that although you can't (and shouldn't) avoid purchasing homeowners' insurance, there are ways to minimize the cost. (To find out more about homeownership, see A Tax Primer For Homeowners, Fix It And Flip It: The Value of Remodeling and Mortgages: How Much Can You Afford?)

Here are six ways to make sure you get the right coverage and consequent compensation for your home:

1) Maintain a Security System and Smoke Alarms: A burglar alarm that is monitored by a central station, or that is tied directly to a local police station, will help lower the homeowner's annual premiums, perhaps by 5% or more. In order to obtain the discount, the homeowner must typically provide proof of central monitoring in the form of a bill or a contract to the insurance company.

Smoke alarms are another biggie. While standard in most modern houses, installing them in older homes can save the homeowner 10% or more in annual premiums. Of course, even more importantly, in case of fire, they could save your life!

2) Raise Your Deductible: Like health insurance or car insurance, the higher the deductible the homeowner chooses, the lower the annual premiums. However, the problem with selecting a high deductible is that smaller claims/problems such as broken windows or damaged sheetrock from a leaky pipe, which typically will cost only a few hundred dollars to fix, will most likely be absorbed by the homeowner. (To read more about deductibles, see Shopping For Car Insurance, Fighting The High Costs Of Healthcare and Tax Deductions For Rental Property Owners.)

3) Look for Multiple Policy Discounts: Many insurance companies give a discount of 10% or more to their customers that maintain other insurance contracts under the same roof (such as auto or health insurance). Consider obtaining a quote for other types of insurance from the same company that provides your homeowners' insurance. You may end up saving on two annual policy premiums.

4) Plan Ahead for Construction: If the homeowner plans to build an addition to the home or another structure adjacent to the home, he or she should consider the materials that will be used. Typically, wood-framed structures (because they are highly flammable) will cost more to insure. Conversely, cement- or steel-framed structures will cost less because it is less likely to succumb to fire or adverse weather conditions.

Another thing that most homeowners should, but often don't, consider is the insurance costs associated with building a swimming pool. In fact, items such as pools and/or other potentially injurious devices (like trampolines) can drive annual homeowners' insurance costs up by 10% or more. This may seem like a small price to pay given the joy these items bring, but it is still something that should be considered by the homeowner prior to purchase or construction.

5) Pay Off Your Mortgage: Obviously this is easier said than done, but homeowners that pay off their mortgage debts will most likely see their premiums drop. Why? The simple reason is that the insurance company figures that if you own the home outright, you'll take better care of it.

6) Make Regular Policy Reviews and Comparisons: Investors should, at least once per year, compare the costs of other insurance policies to their own. In addition, they should review their existing policy and make note of any changes that might have occurred that could lower their premiums.

For example, perhaps the homeowner has disassembled the trampoline, paid off the mortgage, installed a burglar alarm or installed a sophisticated sprinkler system inside his or her home. If this is the case, simply notifying the insurance company of the change(s) and providing proofs in the form of pictures and/or receipts could significantly lower insurance premiums.

Look for changes in the neighborhood that could reduce rates as well. For example, the installation of a fire hydrant within 100 feet of the home, or the erection of a fire substation within close proximity to the property may lower the homeowner's annual premiums.

Additional Items
The following are characteristics that all homeowners' insurance policies should carry:

• Guaranteed Replacement Value Insurance: All homeowners should buy "guaranteed replacement value" homeowners insurance. This means that their home will be rebuilt in the event of a disaster - no matter what the cost. Of course, many of you may be thinking that this is what would happen anyway, right? Wrong. Because home values have increased substantially in recent years, it probably costs more to build a house than when you originally purchased your home and your insurance policy. The good news is that guaranteed replacement value policies will absorb the increased costs and provide the homeowner with a cushion if construction prices increase.

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• Endorsements: Legally speaking, an endorsement is an amendment to the basic homeowner's policy. Practically speaking, it is a way for homeowners to ensure that their high-priced possessions will be insured in the event of a disaster.For example, a woman wanting to insure her diamond engagement ring would obtain an endorsement to her homeowners' policy in order to prove not only that she owned the ring, but also its value. She would do this by obtaining a formal appraisal of the ring from a jeweler, and then sending the appraisal to the insurance carrier for special notation on the insurance contract. Formal endorsements such as these will help in the claims process and ensure that the homeowner gets the full dollar value of the item if it is lost, stolen or damaged in a disaster. Typical items that are endorsed in addition to jewelry include furs, antiques and collectibles.

Wrapping It All Up
To avoid any discrepancies and any delays in receiving your insurance money for your home, make sure you document everything. Photograph and videotape the entire contents of your home and the home itself. Then store these photos and videotapes in a fireproof box. In addition, consider storing a copy of the photos at a relative's house, and/or in a safety deposit box. Doing this will help homeowners compile an inventory of their possessions (which is what the insurance company will demand) after a disaster. It will also, by extension, dramatically shorten the length of the claims process if a disaster does occur.

Homeowners' insurance is a necessity. There are ways to save money, but there are also some features that homeowners shouldn't skimp on. Make sure you know the difference.

How Much Life Insurance Should You Carry?

by Andrew Beattie
Very few people enjoy thinking about the inevitability of death. Fewer yet take pleasure in the possibility of an accidental death. If there are people who depend on you and your income, however, it is one of those unpleasant things that you have to consider. In this article, we'll approach the topic of life insurance in two ways: first, we will point out some of the misconceptions about life insurance and then we'll look at how to evaluate how much and what type of life insurance you need.

Does Everyone Need Life Insurance?
Buying life insurance doesn't make sense for everyone. If you have no dependents and enough assets to cover your debts and the cost of dying (funeral, estate lawyer's fees, etc.), then insurance is an unnecessary cost for you. If you do have dependents and you have enough assets to provide for them after your death (investments, trusts, etc.), then you do not need life insurance.
However, if you have dependents (especially if you are the primary provider) or significant debts that outweigh your assets, then you likely will need insurance to ensure that your dependents are looked after if something happens to you.(To learn about insurance basics, see Understand Your Insurance Contract and Exploring Advanced Insurance Contract Fundamentals.)

Insurance and Age
One of the biggest myths that aggressive life insurance agents perpetuate is that, "insurance is harder to qualify for as you age, so you better get it while you are young." To put it bluntly, insurance companies make money by betting on how long you will live. When you are young, your premiums will be relatively cheap. If you die suddenly and the company has to pay out, you were a bad bet. Fortunately, many young people survive to old age, paying higher and higher premiums as they age (the increased risk of them dying makes the odds less attractive).

Insurance is cheaper when you are young, but it is no easier to qualify for. The simple fact is that insurance companies will want higher premiums to cover the odds on older people - it is a very rare that an insurance company will refuse coverage to someone who is willing to pay the premiums for their risk category. That said, get insurance if you need it and when you need it. Do not get insurance because you are scared of not qualifying later in life.

Is Life Insurance an Investment?
Many people see life insurance as an investment, but when compared to other investment vehicles, referring to insurance as an investment simply doesn't make sense. Certain types of life insurance are touted as vehicles for saving or investing money for retirement, commonly called cash-value policies. These are insurance policies in which you build up a pool of capital that gains interest. This interest accrues because the insurance company is investing that money for their benefit, much like banks, and are paying you a percentage for the use of your money.

However, if you were to take the money from the forced savings program and invest it in an index fund, you would likely see much better returns. For people who lack the discipline to invest regularly, a cash-value insurance policy may be beneficial. A disciplined investor, on the other hand, has no need for scraps from an insurance company's table.
Cash Value vs. Term
Insurance companies love cash-value policies and promote them heavily by giving commissions to agents who sell these policies. If you try to surrender the policy (demand your savings portion back and cancel the insurance), an insurance company will often suggest that you take a loan from your own savings to continue paying the premiums. Although this may seem like a simple solution, this loan will cost you, as you will have to pay interest to the insurance company for borrowing your own money.

Term insurance is insurance pure and simple. You buy a policy that pays out a set amount if you die during the period to which the policy applies. If you don't die, you get nothing (don't be disappointed, you are alive after all). The purpose of this insurance is to hold you over until you can become self-insured by your assets. Unfortunately, not all term insurance is equally desirable. Regardless of the specifics of a person's situation (lifestyle, income, debts), most people are best served by renewable and convertible term insurance policies. They offer just as much coverage and are cheaper than cash-value, and, with the advent of internet comparisons driving down premiums for comparable policies, you can purchase them at competitive rates.

The renewable clause in a term life insurance policy means that the insuring company will allow you to renew your policy at a set rate without undergoing a medical. This means that if an insured person is diagnosed with a fatal disease just as the term runs out, he or she will be able to renew the policy at a competitive rate despite the fact that the insurance company is certain to have to pay out.

The convertible insurance policy provides the option to change the face value of the policy into a cash-value policy offered by the insurer in case you reach 65 years of age and are not financially secure enough to go without insurance. Even though you will be planning in the hope of not having to use this option, it is better to be safe and the premium is usually quite inexpensive. (To learn more about life insurance types, see Buying Life Insurance: Term Versus Permanent, A Look At Single-Premium Life Insurance and What is the difference between term and universal life insurance?)

Evaluating Your Insurance Needs
A large part of choosing a life insurance policy is determining how much money your dependents will need. Choosing the face value (the amount your policy pays if you die) depends on:

• How much debt you have: All of your debts must be paid off in full, including car loans, mortgages, credit cards, loans, etc. If you have a $200,000 mortgage and a $4,000 car loan, you need at least $204,000 in your policy to cover you debts (and possibly a little more to take care of the interest as well).

• Income Replacement: One of the biggest factors for life insurance is for income replacement, which will be a major determinant of the size of your policy. If you are the only provider for your dependents and you bring in $40,000 a year, you will need a policy payout that is large enough to replace your income plus a little extra to guard against inflation. To err on the safe side, assume that the lump sum payout of your policy is invested at 8% (if you do not trust your dependents to invest, you can appoint trustees or chose a financial planner and calculate his or her cost as part of the payout). Just to replace your income, you will need a $500,000 policy. This is not a set rule, but adding your yearly income back into the policy (500,000 + 40,000 = 540,000 in this case) is a fairly good guard against inflation. Remember, you have to add this $540,000 to whatever your total debts add up to.

• Future Obligations: If you want to pay for your child's college tuition or have your spouse move to Hawaii when you are gone, you will have to estimate the costs of those obligations and add them to the amount of coverage you want. So, if a person has a yearly income of $40,000, a mortgage of $200,000, and wants to send his or her child to university (let's say this will cost $80,000), this person would probably want an $820,000 policy ($540,000 to replace yearly income + $200,000 for the mortgage expense + $80,000 university expense). Once you determine the required face value of your insurance company, you can start shopping around for the right policy (and a good deal). (To find your estimate of insurance needs, see this MSN Money Needs Estimator.)

• Insuring Others: Obviously there are other people in your life who are important to you and you may wonder if you should insure them. As a rule, you should only insure people whose death would mean a financial loss to you. The death of a child, while emotionally devastating, does not constitute a financial loss because children cost money to raise. The death of an income-earning spouse, however, does create a situation with both emotional and financial losses. In that case, follow the income replacement trick we went through earlier (your spouse's income/8% + inflation = how much you'll need to insure your spouse for). This also goes for any business partners with which you have a financial relationship (for example, shared responsibility for mortgage payments on a co-owned property).

Alternatives to Life Insurance
If you are getting life insurance purely to cover debts and have no dependents, there is another way to go about it. Lending institutions have seen the profits of insurance companies and are getting in to the act. Credit card companies and banks offer insurance deductibles on your outstanding balances. Often this amounts to a few dollars a month and in the case of your death, the policy will pay that particular debt in full. If you opt for this coverage from a lending institution, make sure to subtract that debt from any calculations you are making for life insurance - being doubly insured is a needless cost.

Summary
If you need life insurance, it is important to know how much and what kind you need. Although generally renewable term insurance is sufficient for most people, you have to look at your own situation. If you choose to buy insurance through an agent, decide on what you'll need beforehand to avoid getting stuck with inadequate coverage or expensive coverage that you don't need. As with investing, educating yourself is essential to making the right choice.

Online Insurance Quotes For All Insurance Needs

By Anthony M. Peck

There is assurance for everything now days and a multitude of companies in which one can do business. With the numerous amounts of coverage and multitude of agencies, it can become quite overwhelming when shopping for insurance now days if you are not aware of all your options. Online insurance quotes are the best and most convenient way to go now days. Not only do you have a multitude of companies competing for your policies and the best rates available, you have access to every form of need possible in just a few keystrokes.

Everyone knows that rates and quotes very from one agency to the next but the idea of contacting numerous agencies in order to receive the best quote available is time consuming and can get right down annoying being put on hold time after time. There are no phone calls required to get the best going quote for your insurance need. You have the power of getting free quotes from a multitude of companies right at your fingertips.

More and more companies are taking their business to the net and encouraging their consumers to acquire their needs in the same fashion. By the insurance companies taking their business to the net and utilizing reputable brokers they cut overhead expenses through lowering man-hour, supplies, and other costly expenses which in turn saves the consumer money. When the company can lower their expenses, this in return reflects on rates, which benefit the consumer.

We researches the insurance providers they broker for giving you a piece of mind in knowing that if the time should come that you need to file a claim through the company you acquired your online quotes and policy through utilizing their site that the provider will be their to hold up to their part of the transaction. Feedback to us is always appreciated and taken seriously. We want the consumer to receive the best possible online insurance quotes in whatever need they have with the reliability from the company to back it up.

Commercial Legal Expenses Insurance - Just an Extra Cost Or a Real Benefit

By David Ollenberger

Commercial Legal Expenses Insurance as an addition to a Business Insurance policy may have seemed an unnecessary expense in the past, but a significant rise in litigation is causing an upsurge in the number of businesses requesting cover.

Whilst your Business Insurance policy will generally cover the legal costs and assistance to contest a claim of negligence which has caused damage or injury, it is unlikely to cover employment disputes, contact disputes and importantly, investigation by the VAT and TAX man, these latter inquiries can be expensive, and even if you are successful then no costs can be recovered from Inland Revenue and Customs. For general business related disputes, access to a specialist lawyer is often needed to argue a case and your normal solicitor may not be able to offer this service. The cover provided by Commercial Legal Expenses Insurance can help with many of these costs and provide appropriate legal assistance in person and through help lines.

Some insurance policies now include Legal Expenses cover as standard or as an optional extra, and this cover is usually provided by the same insurer as the main cover. Whilst this may seem beneficial, if you have one of these policies and there is a dispute with your insurer for say, an aspect of a claim under your policy (i.e. dispute of the claim amount or voiding of a claim), then, as the legal expenses section is part of that policy, it won't operate. A Legal Expenses policy taken out with a separate insurer will of course act for you against the other insurer in this case.

Check Out Caravan Insurance Companies Online

By George McGonigal

The cost of insuring your caravan can vary greatly so it is a good idea to check out caravan insurance companies online before taking out a policy. You can get a great deal of information online and it is important to remember that the policy is only as good as the company that is offering it.

If you choose a reliable insurance company to take out your insurance with you know that they are not going to disappear overnight and leave you with nothing but a worthless piece of paper. If you go online to a specialist insurance broker you will be able to search with some of the leading insurance companies in the UK.

The cost of insurance would vary depending on the car insurance companies, the type of policy you choose and what they offer. The policies you compare could also vary considerably in what is included in them. Some providers will throw in many extras which other providers might ask that you pay extra for. Therefore comparing the policy terms are essential. You also have to check to ensure that you compare like for like.

Some providers will offer new for old in their insurance policy and this would provide you with brand new replacements for items if they were to be stolen or destroyed. Other providers could take wear and tear into account and this would make the policy cheaper.

If you were to take out fully comprehensive insurance this would provide the most cover for your own caravan. It would usually protect against fire, theft, accidental damage, loss of personal belongings, recovery and breakdown and legal costs, among many other things. These are just the basics of course and you could also get windscreen cover included and European cover. However if you do not plan on traveling outside of the UK then European cover would not be needed so look for a policy that does not include this as standard if you want to save on the cost of your insurance.

When you check out caravan insurance companies also check to see if they would provide you with a brand new replacement for your caravan if it should be written off by them. Usually insurance providers will state certain criteria that you would have to meet. Usually your caravan would not have to be over a certain age and not have traveled over a certain amount of miles. Again you would need to check the small print to determine these.

When you check out caravan insurance companies online you can get some helpful hints and tips on how to make savings on your policy. For instance check out the amount of excess the provider asks for in the policy.

All providers will state the minimum amount of excess which is the sum you would pay out of your own pocket before the provider will pay the rest. If you offer to payout more excess the premiums for the insurance can work out cheaper. However you would have to bear in mind that the excess would have to come out of your own pocket as a lump sum.

Unfair Insurance Rates Are Designed to Confuse - Understand the Secret Tactics and Save Your Money

By Jane Pytel

If you are to believe the daily onslaught of insurance company commercials, all of them are offering you the lowest possible rates combined with the highest customer service. Don't believe a word of it.

Insurance ratings are designed to make comparison shopping virtually impossible.
Prices are disguised on the basis of suspect information which tends to arbitrarily discriminate against less desirable groups in favor of those who are statistically less apt to file claims.

Based on established underwriting guidelines of identifying risk, rating risk, and classifying risk, an applicant is either rejected for posing too much risk, or is accepted and classified. Simply put, using the guidelines as a benchmark, the company rates the degree of risk you represent. Your rating classification subsequently determines the applicable premium.

In reality, insurance companies utilize underwriting processes to develop confusing and unfair insurance pricing packages. They do this in large part through the use of credit scoring and a complex network of rating tiers.

Credit scoring - Utilizes data from credit bureaus. Insurance companies advocate that people who exhibit certain activities are more likely to file claims. Credit negatives can include: consumers with high loan balances, multiple loan inquiries, multiple new accounts, and recent credit cards issued.

The process has been criticized because it encourages individual consumer profiling. Bear in mind that a basic principle of insurance is to spread risk amongst policyholders by providing a common source to pay claims. The inherent potential of profiling is to discriminate against some consumers, while encouraging others, all of it based on arbitrary standards.

Private consumer groups and the Federal Trade Commission have studied the practice. Despite this, there is no tangible evidence developed which supports a connection between a low credit score and a propensity to file claims.

In spite of this, credit scoring practices are likely causing individual policyholders hundreds of dollars in extra premiums.

Rating tiers - Like credit scoring, demonstrate no apparent relation to a risk analysis of potential customers. The concept of creating multiple complex rating tiers in effect enables companies to offer low rates to one group of people, and higher rates to a less desirable group.

The ultimate effect on consumers is that tier pricing has greatly complicated the ability to effectively compare rates in an open market. The final price of an insurance policy cannot be determined until the individual consumer is subjected to the rating process.

Can you protect yourself against the practices?
In short, not completely. It is important, however that you are aware of the practices and that you respond accordingly. Insurance companies are not required to share their scoring data with you. However you can access your credit report.

• Acquire your credit report and validate that the information is correct.
• While pricing tiers are complicated, nonetheless comparison shop when your policy is up for renewal.
• Research your state's guidelines and restrictions on credit scoring. Many states have limited the use of these practices and some have actually banned the practice.
• Assume that even if the practice is banned or limited, companies will find other ways to keep your money.

Budgeting - Planning For Insurance

By Sean R. Mize

Being insured protects you from major financial losses and is therefore now a very necessary part of all our lives. You should consider having the following types of insurance coverage:

• Health Insurance (may be paid by your employer). This covers most though not all of your doctor and hospital bills. A job wherein you are provided health insurance for yourself and your family is a definite benefit as buying your own medical policy is generally more expensive.

• Disability Insurance (again may be paid by employer). This will cover your expenses at a time when you are sick, injured or not able to work for a fairly long period of time. Again it is a real benefit if your employer is able to offer you this insurance.

• Life Insurance. In the case of your unexpected death, your chosen beneficiary will receive the insured sum.

• Auto Insurance. This will cover almost everything from repairs to damage suffered in an accident.

• Homeowner's Insurance. When you take a mortgage to buy a home, you will be required to go in for a homeowner's insurance. This will not only cover the losses in case of theft, fire or flooding but also provides cover if something happens to the physical structure of the home.

• Renter's Insurance. Somewhat similar to the homeowner's insurance although on a smaller scale, this will only cover the losses due to an apartment fire or flooding or of stolen belongings like a TV or jewelry.

Just as you would do before purchasing any product, compare any insurance policy with at least three other companies to make sure that you are getting adequate protection for the premium you are paying. You may be able to save on the premiums you have to pay if you increase the initial deductible you are willing to pay. Further, before renewing your policy every year, carry out the same check as prices keep changing.

Remember the best time to buy insurance is when everything is absolutely fine. Your health is good, your car is running fine and your home looks great. It is far more expensive, at times even difficult to get insurance once you are sick or your car has suffered an accident.

The Top Four Questions to Consider When Choosing A Condominium Insurance Policy

By Bobbie Sage
Condominiums and townhouses have special insurance needs. They don’t need as much insurance as a house, but owners have more to insure than a renter. The insurance needs for a condo owner include personal property and liability coverages. Special policies for condominium owners, known as form HO-6, will provide the liability and personal property protection a condominium owner needs.

As a condominium owner, one needs to insure not only their personal possessions in the condo, but also any built in units such as cabinets, fixtures, appliances and shelves. In addition to covering the personal property, a condo owner also needs liability coverage. The liability portion of the policy would cover injures or damage to people or property that the condo owner would be liable for.

Below is a checklist of the top four questions to consider when choosing a condominium insurance policy:

1. What are your ownership and insurance responsibilities in the condo association’s Master Deed (the insurance requirements the association expects from you)?

2. Does the policy you are considering include broad water damage coverage for problems such as sewer and drain back-ups?

3. Does your condo association provide comprehensive or blanket coverage to protect you against other condo owners who may not have adequate coverage?

4. Do you have expensive personal items such as jewelry or furs that you may need additional personal property coverage for?

When You Need to Flile a Life Insurance Policy Claim

Contacting the Life Insurance Company & Filing a Missing Life Insurance Policy

By Bobbie Sage

After a loved one dies, filing the life insurance policy claim can be confusing and difficult but can relieve great financial burdens for your living family. Fortunately, the process is not difficult. Below is a checklist of steps to follow when the need comes to file a life insurance policy claim:

1.See if you can find the actual life insurance policy.

If you can great, go to step 2. If you cannot find the actual life insurance policy, try to find the life insurance agent or life insurance company that your loved one may have used. If you still cannot find any life insurance agent or life insurance policy information, don't stop there. You may still be able to find information on your loved one's life insurance policy by contacting the state insurance department in the current state or any previous states your loved one may have lived in.

2.Call the life insurance agent or life insurance company on the life insurance policy.

If you only know the life insurance company, they should be able to find your loved one's life insurance policy by their name and address.

3.Next, there will be some life insurance claim forms to fill out.

The forms are simple and the life insurance company or life insurance agent can help you complete them.

4.Send in the life insurance paperwork.

The last step to take in filing the claim is to send a certified copy of your loved one's death certificate with the life insurance claim forms to the life insurance company. It should take only a short period of time, anywhere from a few days to a couple of weeks, for your settlement to be issued.

How To Get the Best and Cheapest Motorcycle Insurance

By Bobbie Sage
Now that you have found the bike for you, it's time to get it insured. But, before you call just any insurance agent you will want to learn how the insurance company decides your rate.

By educating yourself on how the insurance company will view you, you can find the best insurance coverage for you and your bike while at the same time saving money. First, to find the best and cheapest motorcycle insurance you must understand how the insurance company will rate you:

1. Your Bike: If you have the latest and flashiest bike, that will cost you more than an older, basic motorcycle.

2. Your Age: As with auto insurance, usually the older you are the cheaper your rates will be. But, if you are new to operating motorcycles you will probably be in a higher rate category until you gain some riding experience.

3. Your Address: Sometimes the high insurance rates you receive can be greatly influenced by where you live. If you live and/or regularly drive in a high crime or high accident area, your rates will likely be higher than someone in a zip code with less crime and accidents.

4. Your Driving History: All accidents count. Even if you are new to a motorcycle, the accidents you had in your automobile will count against you. Therefore, the cleaner your driving record, the cheaper your insurance will be.

5. Your Job: Where you are driving to and parking your bike will influence your rate. If you have to keep your bike parked on a construction site, you insurance may be increased due to the increased risk of injury to your bike.

Now that you know how the insurance company will view and rate you, here are some tips on how to get a good deal:

1. Shop, Shop, and Shop More: Insurance can vary widely in the same region. Take a whole day to call as many companies as you can to get a rate quote. Shopping around for insurance can sometimes be the single best way to cut your insurance costs.

2. Securing Your Bike: What can you do to keep your bike more secure? If you can garage your bike, alarm it, or secure it somehow while it is parked, you may be able to secure yourself some discounts on your insurance.

3. Don't Over insure: Remember, if something happens to your motorcycle, you will only receive the market value so over insuring will not help you get a higher price for your bike.

4. Mileage: If you only ride your bike once in a while during the summer for pleasure, you should be able to get a better rate if you can keep your mileage low.

5. Special Motorcycle Training: Taking special DMV or other motorcycle classes can help decrease you rate. Just make sure you keep your certification documents handy for the insurance company to view.

There is no reason to overpay one insurance company when another one is willing to give you a better deal. If an accident would occur you will get the same value for your bike regardless of what company you choose. By taking the time to find out how the insurance company will view you, your bike, and your riding habits, you can learn how to save while still getting a great policy.

Life Insurance Policy, Eliminating All Your Apprehensions in a Single Moment

Source : articlesbase.com
'Foretelling' is a ability that is not common to all human beings, thus, its absence leaves us more susceptible to all kinds of incidents whether good or bad in our lives. However, it is not the good times, but the bad ones that actually leave an indelible impression on the lives of people, obviously in the worst negative manner. But if people know all this, then why even after acknowledging the prominence of life insurance concept, people often end up avoiding it?

United Kingdom, presently, is fighting with the nemesis of recession. At this point of time, where the deficiency of liquidity is throwing several challenges to people to survive, hunting for a good and cheap life insurance deal might not at all be a problem at all in these widespread lethargic economic times.

Yes, even as the economy of Britain battles with the scourge of the recession, getting a good and cheap life insurance deal may not be that tough as it might sound or seem. These days one can find several kinds of life insurance products offering the buyers benefits of life time. Products like Term life insurance policy, Seniors life insurance policy, High risk life insurance policy, Mortgage life insurance policy and even Smokers' life insurance policy and many others encompass and cater to the demands of a particular section of the customers residing in the society. Worry not, all these insurance policies are completely affordable in the context of premium rates and offer dozens of add-on benefits too its subscriber.

Hunting for the right kind of life insurance policy can be a smoother job if and only if the prospective buyer takes the help of insurance agents or the Internet. The traditional method, i.e., searching the insurance for life through the mode of insurance agents can prove to be easy one. Since, they are the ones who are well-versed with the whole concept of 'life insurance' and related terminology, which normally for a buyer, is very difficult to understand. In a single meeting only, the agent mentions all the salient features of the life insurance policy offered by his company to the prospective buyer, giving him wholesale knowledge about the product.

Other method is 'Internet'. Yes, the virtual world of Internet, with a single click, brings an exhaustive list of insurance deals offering concerns to the buyer. As far as the application process is concerned, it is extremely fast and rapid, adding 'time-saving' element to the whole process. However, for buyers it is important to figure out what kind of life insurance policy fits their bill. Since, going for an expensive policy for apparently no reason, will sound completely stupid, specially at this point of time.


Availing life insurance policy not only provides the cover against the uncertainties of life to the borrower, but also works wonders for him. Yes, a subscriber of any cheap life insurance policy can also procure a credit deal in the form of loans of any kind, pledging their policy as security with the lender. Thus, if as a buyer, you are looking out for a policy that can help you survive this thin and lean economic patch, then procuring a life insurance deal might help you in serving your cause.

United Kingdom: Insurance - Reminder Of Principles Governing Construction Of Policies

Article by Jonathan Thorpe and Liam O'Connell

In a judgment handed down just before Christmas, the Court of Appeal reiterated some common principles of construction of contracts:

• there is a presumption that the words used in a clause should be given their ordinary and popular meaning
• a commercial contract, such as an insurance policy, should be construed in accordance with sound commercial principles and good business sense
• the commercial object of the contract as a whole, or the particular clause in question, will be relevant in resolving any ambiguity in the wording
• in a case of true ambiguity, the construction which produces the more reasonable result should be preferred

The court also commented that ambiguity is not the same as difficulty of construction. The question whether or not a clause is ambiguous on the one hand, and the rules of construction which apply to resolve the ambiguity on the other hand, are frequently merged. It is essential that the clause in question is ambiguous before the rules can be applied; and this is the same as for the rule that an ambiguous clause will be construed against the party who put the clause forward (one aspect of the "contra proferentum" principle).

The specific clause in question was contained in an employer's liability and public and product liability policy. It excluded liability for claims arising out of "the failure of any fire or intruder alarm switchgear control panel or machinery to perform its intended function".

The court held that the exclusion referred separately to each of fire alarms, intruder alarms, switchgears, control panels and machinery. It was not limited to the switchgear, control panel and machinery which formed part of a fire or intruder alarm. This interpretation was, according to the Court of Appeal, the one which made the most business sense. And because there were "rational grounds" for preferring this construction, the Court of Appeal was not prepared to fall back on construing the policy against the insurer (who put the clause forward).

In this particular case, the loss occurred after failure of a fire protection system to properly deploy. The court considered whether or not the fire protection system as a whole was "machinery" within the exclusion clause. They concluded that it was not. Rather it was a system made up of constituent elements, some of which were machinery and some of which were not. In other words, the fact that a piece of equipment contains machinery does not make the equipment itself machinery. So, if the problem with the system was caused by a failure of a constituent element which was machinery, it would be excluded. If it was caused by a part which was not machinery, it would not be excluded.

Further reading: Reilly v National Insurance and Guarantee Corporation Ltd [2008] EWCA Civ 1460

This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq

Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.

Allstate Must Lower Homeowners' Insurance Rates $242 Million a Year As A Result Of Proposition 103's Consumer Protection Rules

source : consumerwatchdog.org
Consumer Advocates Applaud Commissioner Poizner's Ruling, Shift Focus To Investigation of Possible Refunds for Past Allstate Overcharges

Santa Monica, CA -- Allstate (NYSE: ALL) homeowners’ insurance customers will save $242 million a year under a Wednesday order by Insurance Commissioner Poizner that the company lower its premiums by 28.5%. Allstate’s California homeowners policyholders will pay about $250 less a year.

The nonprofit, nonpartisan Consumer Watchdog challenged a 9.8% rate increase request made by Allstate last year under the rules of the voter approved insurance reform measure Proposition 103. The company quit selling new homeowners insurance policies in California almost a year ago in the middle of wildfire season.

"For the Insurance Commissioner to not only reject Allstate’s request for a rate increase, but to also accept our arguments for a substantial decrease, is a tremendous victory for California homeowners," stated Los Angeles attorney Daniel Y. Zohar with the Zohar Law Firm, lead outside counsel for Consumer Watchdog at the Allstate hearings. “In these times of economic uncertainty, hundreds of thousands of consumers will be able to keep more of their hard-earned money, rather than have to line the ever-swelling pockets of Big Insurance. Importantly, this decision sends a clear message to all insurance carriers that if they try to overcharge California consumers, they will be stopped in their tracks."

An Ongoing Proceeding Will Investigate Whether Allstate Should Also Provide Refunds to Customers

Consumer Watchdog said Thursday that it will now turn its attention to a regulatory proceeding investigating whether Allstate should also be required to refund homeowners hundreds of dollars each for overcharges in recent years. In 2007, Consumer Watchdog agreed to put the issue of refunds for past overcharges on hold until the Commissioner ruled on Allstate’s rate hike request. The group said it would immediately begin to work on pursuing refunds now that the Commissioner rejected the company’s rate hike request and ordered substantial reductions.

Allstate’s net income for 2006 alone was approximately $5 billion and total shareholder return was 590% between 1994 and 2006. Ironically, Allstate claimed it needed to raise its rates because the company would suffer extreme financial hardship if required to live by the same regulations as other insurers. The increase Allstate sought here, in part, was based on its claim that it should be allowed to build a higher profit margin into its rates to earn a 12.85% rate of return instead of the 10.17% allowed under California regulations. The company made the same claim when trying to fend off a similar decrease to their auto insurance rates. But Allstate was ordered by the Commissioner to reduce its auto insurance rates by about $250 million in March. Allstate also sought to pass through to its customers $80.8 million in premiums it pays to buy reinsurance, which is not allowed for homeowners’ insurers in California.

"Allstate boasted of record profits to Wall Street, then came to California claiming it's not making enough money in order to charge its policyholders higher premiums. Proposition 103’s prohibition on excessive rates protected California consumers with home and auto insurance policies from Allstate's price gouging and saved them over half a billion dollars this year," said Pamela Pressley, litigation director at Consumer Watchdog.

Life Insurance - Plan for life

By Michael Challiner
If you’re young, fit and healthy, this is the very best time to buy some life insurance. Read on to find out why. The very best time to arrange life insurance is when it’s furthest from your thoughts. Take a typical young man. He’s at the start of his career, possibly still living at home, but thinking of looking around for a flat. He has a car and the insurance that he arranged for it was probably his first step in the insurance ladder.

If he decided to take out some life insurance, whilst he’s still young, fit and healthy he’d get the best possible rates. Probably the most valuable insurance at this stage is Critical Illness (CI) cover.

Whilst life insurance is designed to pay out to your beneficiaries if you die, CI cover will give you valuable support if you become critically ill. For our young man, starting on his career, an illness of this type could be a financial disaster. It is a fact that one in three people will develop cancer at some time in their lives, but the good news is that treatment and cure rates are improving all the time.

Advances in medical science thankfully mean that more and more people will survive many of the major serious illnesses. Unfortunately this recovery can take many months, or even years and necessitate long period of time off work. It may not be possible to carry on with the same work, meaning a change of career. In some cases it may be necessary to change your home and car.

Without CI cover, he’d probably find that his company would pay his salary for around three months and after that he’d have to rely on incapacity benefit. For those on contract work and the self-employed the situation is even worse. CI insurance will pay out a lump sum to cover your expenses and leave you to concentrate on your treatment and recovery.

There’s a very wide range of CI policies available. All will cover what are know as "Core Conditions", which are Cancer, Stroke, Heart Attack, Coronary by-pass surgery, Kidney failure, Major organ transplant and Multiple sclerosis. Some will cover up to 30 additional conditions.

At the time of purchase of the policy, the medical conditions for which you would be covered should be fully listed. Go through this carefully and make sure that you understand any exclusions within the cover.

It is essential to fill in the application form very carefully. If you fail to disclose a previous illness or condition, then you may find that the insurers will refuse to pay out. Our typical young man should be fine here, as long as he makes sure that he discloses all illnesses, no matter how minor they seemed at the time. The older you get, the more conditions and illnesses there are to remember and the greater chance you’ll forget something which you thought was trivial.

Having got CI cover sorted, this would be an excellent time for our young man to arrange some simple life insurance. Simple life insurance is reasonably priced and offers important cover. A term insurance policy will run for a set number of years. If the policyholder should die during this period, a lump sum would be paid to his dependants. Even if there are no dependants when the young man first takes this cover out, there may be loans and other debts and maybe some fairly "light" cover, for a limited term would be a good step to take. It can be topped up as circumstances change. Certainly his insurance will never be cheaper – when it comes to insurance, it’s a case of the younger the better.

Our smart young man doesn’t even have to waste his valuable time chasing up insurance. A quick visit to an on-line broker will give him all the advice he needs and the very best of quotes, with on-line discounts too.

The Difference Between Health Insurance and Life Insurance

By Donald Saunders
People are often confused by the differences between health and life insurance and try to decide which is the better choice. In reality these are two very different plans and need to be considered in isolation, rather than compared. Health insurance is designed to protect you against having to pay large medical bills by offering coverage for a range of medical procedures and treatments. By contrast, life insurance is principally designed to pay out a lump sum in the event of your death.

Life insurance is typically purchased in one of two forms.

The simplest form of life insurance, and also the least expensive, is term life insurance which pays out only on your death. You can normally purchase term life insurance for as little as one year or for up to 30 years and the policy will only pay out if you die before the policy reaches its end date. You might consider purchasing term life insurance later in life or when you feel that your life is likely to be at greater risk over a short period of time for some reason.

The second form of life insurance is whole life insurance which is a combination of both a term life insurance policy and an investment plan. Your monthly (or annual) premiums are divided between the two parts of the policy, with one part of the premium providing you with insurance cover should you die during the period of the policy and the remainder being paid into an investment vehicle, such as a mutual fund or stocks and bonds. Whole life insurance is a popular choice as it provides you with both protection for your family and a savings vehicle, possibly to meet college tuition fees or to add to retirement funds. These policies are however normally heavily loaded with both fees and commissions and, if you are looking at a whole life policy principally as an investment vehicle, then there are certainly better options available to you.

The cost of both a life insurance policy and a health insurance policy depend to a large extent upon your age and health and the younger and healthier you are the cheaper they will be.

Perhaps the most important thing to understand is that life insurance and health insurance are designed to cover two very different situations and it is not a case of choosing one or the other, as many people think, but is a case of deciding as two separate issues whether you need either or both.

MedicalHealthInsuranceToday.com provides information on all aspects of medical health insurance including individual and family health insurance plans, health insurance for pre-existing conditions and much more.

The importance of life insurance

ByJack Mack
Life insurance may sound like something you only have to think about when you get older, but there are a variety of benefits to buying life insurance early on in your working career. Even if you don't have a family that is dependent on you, or if you feel that your employer's life insurance policy is adequate for your needs, there are many reasons why you should consider taking out your own life insurance policy.

If your employer provides you with a life insurance policy, you shouldn’t necessarily rely on it. While many companies may offer life insurance as one of the key benefits of a job, the figure often doesn't cover enough to be of adequate benefit to your family - especially in the event of your death. For instance, many firms may offer life insurance that is one or two times the amount of your annual salary; but most financial planners will recommend replacing that with life insurance that covers up to 10 times your annual salary.

Furthermore, it is always important for consumers to be aware of types of life insurance they can choose from: essentially, there are two types of life insurance: term insurance or investment type insurance. Term insurance will provide benefits to your family or your dependents if you die during the proposed period covered by your policy. Investment-type life insurance, also known as, "permanent insurance", will include endowment policies and "whole of life" policies. This type of life insurance remains in effect for as long as you continue to pay your premium. Essentially, part of this premium will go to an investment account; so, as well as paying out in the event of your death, it will build up in investment value - which you can actually cash in before you die. This is a great reason to invest in life insurance when you're younger - the earlier you buy, the higher the investment value that will accumulate during your lifetime, and the more you may be able to reclaim when you're older.

Perhaps the most crucial piece of information to keep in mind during your search for life insurance, however, is the importance of shopping around. It is vital to ensure that the insurance you eventually invest in is the most suitable for your particular needs; so, as well as thinking about how much you can afford to pay, it is essential to think about what you actually need from life insurance cover. There are many consumer life insurance comparison sites that exist on the web which provide this valuable service. By utilising such services, as well as vital sources of information like the FSA Check Firm Service and the Citizens Advice Bureau, you will be armed with a hefty arsenal of consumer information so you can reach the right decision when it comes to buying life insurance.

Top 10 life insurance shopping tips

By Jenn Kork
1. Who should buy life insurance? If you can answer yes to any of the following questions, then you should consider buying life insurance.

• Does anyone rely on you for financial support? If so, life insurance will help to protect their financial well being.
• Do you have a mortgage, car loan or any other outstanding debts? If so, a life insurance policy can provide a way to take care of these outstanding bills, along with any others like funeral expenses, legal fees, taxes, and medical expenses.
• Do you own a business? If so, you are liable for the debts your business owes. Your personal assets could be liquidated to pay these debts, which could leave little left for your family. Plus, if you have a partner, life insurance could help them buy out your portion of the business.
• Do you want to leave money to a charity? You can use life insurance to leave money to your favourite charity.

2. Who you would like to insure? You can get a policy on your own life, for other members of your family, or a joint one for you and your spouse.

3. What would you like your life insurance policy to achieve?Some of the things a life insurance policy can take care of include: pay funeral expenses, pay outstanding balances on your mortgage and other debts, offset the loss of your income for a period of time, and/or contribute to the future education of your children.

4. How much life insurance do you need? Well that will depend on what you would like your life insurance to accomplish. As a result, there is no one-size fits all answer. However, there are online life insurance calculator tools that can help. Life insurance calculators will help you find out roughly how much life insurance you'll need to have in order to ensure that your family, loved ones and your debts are looked after in the event of your death.

5. How long will you need life insurance for? Again, this is often determined by what you would like your life insurance to achieve. You can estimate the timing of your life insurance needs by asking yourself questions like: When will my mortgage be paid off, when will my children be finished school, and when will I retire? Also, there are online tools that after asking a few short questions will analyze your life insurance needs and offer guidance.

6. What type of life insurance do you need? There are two kinds of life insurance: term and permanent. Term life insurance offers protection for a set period of time, usually 10 to 20 years; while permanent insurance provides a lifetime of protection. Term insurance is more affordable than permanent insurance, offering you an opportunity to get a large amount of coverage at a lower cost. Permanent life insurance on the other hand is more expensive than term, as it offers lifetime coverage along with possible savings and investment options. The good news is if you want a permanent-style policy without the savings or investment options, you can go for a Term to 100 policy which offers coverage until age 100.

7. What medical information will you need to provide to obtain your policy? Typically, the more medical information you provide, the better the price. A life insurance policy that asks few or no medical questions will likely be far more expensive then a policy that asks for your medical information. Plus, depending on the insurer, your age, and the amount of coverage you want, you could be asked to provide blood or urine samples. For these, a nurse will visit, at no cost to you.

8. What are the renewal options and requirements of the policy? Most term policies are renewable until you reach the age of 70 or 75. Questions to ask your broker: will I have to take a medical to renew, is the renewal premium guaranteed, and if not how much can I expect my rate to increase at the time of renewal?

9. What are the conversion options and restrictions of the policy? As your life changes, you may want to convert your life insurance from term to permanent. When you purchase your policy, find out if there are any limitations for conversion, like age or into what type of permanent policy you can convert to – the fewer limitations the better.

10. What will the cost be? Well that depends on the individual. The best way to get the cheapest rate is to shop around. Thanks to the Internet, it is fast, free and easy to go to life insurance shopping comparison websites like Canada’s own www.kanetix.ca, to compare rates. By shopping online, you are sure to find the best deal on life insurance from many of Canada’s best-known life insurance carriers.

Kade Phillips is a contributing writer at kanetix.com. For more information on life insurance, term life insurance analyzers, term life insurance calculators, or to get life insurance quotes kanetix.ca’s online service provides instant online quotes from some of Canada's most recognized and trusted life insurance companies.

Life Insurance Explained

By Oliver Turner
Life insurance is a type of insurance wherein the insured pays a premium for a period (often lifetime) and the life insurance company provides insurance coverage against the risk of death. There are many types of life insurances or assurance (in the UK) available today.

Basics: There are 4 parties in any life insurance policy. The policyholder is the one who is buying the policy, the insured is the one against whose death the policy is made, the insurer that is the insurance company and finally the beneficiary is the person who will get the proceedings of the life insurance policy. It is mandatory that the policyholder should have a legitimate reason for insuring a person’s life.

Types of Life Insurances:

1. Temporary Life insurance. This policy is also called term life insurance that has coverage for a fixed period of time. The policyholder needs to pay a premium for a fixed period of time for which the insurance company provides insurance coverage. This type of policy does not accumulate cash value.

2. Permanent Life Insurance. This type of policy provides coverage till the policy matures. A policy is said to mature when the person reaches a fixed age or dies. The policyholder needs to pay premium for the entire period. This type of policy accumulates a cash value. The policyholder can withdraw or borrow the money or surrender the policy to receive surrender value. There are 3 types of permanent life insurances.

2.1 Whole life insurance. This has a level premium and corresponding cash value. Upon death of the insured, the beneficiary receives the death benefit only and not the cash value. The policy owner can borrow loans on the cash value.

2.2 Universal life insurance. This has a flexible premium and gives higher internal rate of return. The policy has a cash account depending upon the premium. The surrender value equals the cash account balance.

2.3 Variable Universal life insurance. This is similar to universal life insurance with cash account. However the money is invested by the insurance company in mutual funds for a greater return. Hence there is higher probability of increase of cash account but the risk of reduction in cash account is also present.

We have made a comprehensive research on the subject of term life insurance. Find the results only on the variable universal life insurance guide. All about life insurance on http://www.life-insurance-rates.info

How to Get Life Insurance

By Christian Rios
Do you have Life Insurance? Do you know how to get it? This article explains what is required in order for a life insurance policy to be issued. Acquiring life insurance can be a complicated issue. There are many factors involved when purchasing insurance that the policyholder may or may not be aware of. Let's take a look at a few of the factors that determine whether or not a life insurance policy can be acquired.

Life Insurance Application - Everything begins here. An applicant must fill out a form and provide accurate, complete information to the insurer. Also, information regarding other existing life insurance policies must be disclosed on the application.

Insurable Interest - This is required by law and without it a policy is unenforceable. But what exactly is Insurable Interest? It can be in found in many forms but we'll try to summarize with a single sentence: An Insurable Interest can be found when financial gains and/or financial loss can be expected from the proposed insured's death. This could mean loss of income or even existing financial debt. It's important to note that the amount insured should relate closely to the Insurable Interest - a person can't simply purchase an overly high life insurance policy without having a relatively equal Insurable Interest. Generally speaking, the Insurable Interest only needs to exist when the policy is issued and not at the time a death benefit is issued. However, some states vary. Check with your insurance professional to determine your particular state's requirements.

Incontestable Clause - The insurer can void a contract on grounds of concealment, misrepresentation, and or fraud within a period of two years from issuance. After two years, the policyholder is protected from the insurer voiding or otherwise refusing to payout a policy based on such a scenario.

Suicide Clause - If the insured commits suicide within a specified time period from policy issuance, the insurer may cancel the policy and return the premiums. This is typically in the hands of the insurer to determine.

Jurisdiction - The state or local government that is most closely related to the insured individual typically has jurisdiction over life insurance policies. "Closely related" can be interpreted as "where does the person reside the majority of the time?" If a particular state has favorable life insurance laws, it would not be of benefit to an individual to cross the border merely for the sole purpose of purchasing it if that same individual did not reside in the same state.

Date of issuance - Acquiring a receipt or an actually copy of the policy is required before a life insurance policy is considered "officially" issued. Payment should always be accompanied by a life insurance application submittal.

Reinstatement Clause - Should a policyholder fail to pay an insurance premium, they are given a grace period to reinstate the life insurance policy. In most cases, the policyholder simply has to pay overdue premiums to reinstate the policy. Sometimes the policyholder may have to provide evidence of insurability before reinstatement can occur.

Grace Period - This protects the insured in case of a missed payment. The insurer is required to accept premiums for a certain period after they are considered late without requiring the insured to provide proof of insurability again. This grace period is typically 30 to 60 days. During that time, the life insurance policy is considered active. If a policyholder were to die during the grace period, the insurer is allowed to deduct the overdue premiums plus interest from any premium proceeds past due.