The Importance of Having Life Insurance

There are several considerations and benefits to choosing a whole life insurance policy over other different types of life insurance policies. With so many options in the insurance marketplace, it is certainly confusing to choose the best insurance plan for you. However, here are a few advantages of whole life insurance plans to help you decide why this might be the right one for you.

Benefits of Whole Life Insurance

• Lifelong Insurance Coverage: The term whole life insurance is no misnomer! As the name implies, whole life insurance plans are designed to provide insurance coverage for your whole life, unlike term insurance policies, which only offer coverage for a specified period of time.

• Fixed Insurance Premiums: Premiums for other types of insurance policies generally increase over time to reflect the rising cost of protecting older policyholders. But for whole-life insurance policies, insurers average the entire cost so that you pay a predictable and level premium throughout your time. Having a fixed insurance premium can be easier for people to plan around the budget.

• Cash Value: One of the distinguishing features of a whole life insurance policy is “cash value”. It means that the insurance premiums you pay towards your plan accumulate in a cash balance that you can use even when you are still alive! If you do decide to discontinue paying your premiums, your insurance plan may still be worth something to you. This, however, depends on how much cash has accumulated. On the contrary, term insurance premiums (pure insurance policies) only pay out upon a death.

• Encourages Savings: For those who require additional encouragement, paying a compulsory policy premium forces them to set aside cash that can be used at a later date.

• Flexible Money Options: The accrual nature of your whole life insurance plans will offer you several flexible options in the future – should you decide to discontinue paying premiums. There may be a waiting period before you can borrow against your cash value. You can also opt to stop paying new premiums, and stretch your accumulated cash value and existing premiums towards a reduced benefit protection.

• Possible Dividends: If you have a participating whole life insurance policy, you can receive dividends from your company. However, they’re not guaranteed and are only paid out when your agency has excess investment earnings, favorable mortality statistics, or savings on expenses. You can choose how you want the dividends to be used: reduce your premium payments, paid out in cash, accumulate interest, or pay for paid up Additional insurance.

• Tax Deferrals: There are added tax benefits of whole insurance policies. The growth of interest in whole life policy is tax-deferred! In addition, if you have a basic participating policy, any dividends you receive will be considered a return of premium. They will not be taxed for until your total dividends exceed your total premiums.

• Certain Death Benefit: Policy holders are usually guaranteed a death benefit no matter when the holder dies, so long as the plan is active. This assumes the plan wasn’t surrendered, and that premiums were continued. In comparison, under term insurance policies, beneficiaries only receive a benefit if the policy holder passes away within the period covered.

Use the above points to determine if whole life plans are suitable for you and make the right choice!

 

How To Count Your Cost Life With Insurance

Although you may get used to seeing advertised rates for life insurance that show monthly premiums “starting at” or “as low as” $9 per month, it is important to understand that these are simply put advertised rates. Just as you may be able to go into the grocery store and get a single can of soda for 75 cents, you would still be paying over $5 if you wanted to walk out with a 24 pack of sodas.

This line of thinking can be followed when you are looking at the advertised rate for a 20 year-old female that is looking to secure a 10 year term life insurance policy with a limit of $100,000 at a monthly premium of $9. The same 10 year policy term for a 50 year-old male, in good health, could easily be twice the rate.

It is also important to keep in mind that the advertised rate for the 20 year-old would generally be that of one in great health and likely rated on the best classification, “Preferred Plus”. For most of us, a lot changes between age 20 and age 50. Whether it be gaining a little bit of weight, having high blood pressure, or high cholesterol, these types of factors need to be taken into consideration when trying to understand what the average cost are that you can expect to pay.

To help get a better understanding of the rates that are available and what the expected rates would be, it is best to look at a few examples of a male rated on “Preferred – Plus”, “Preferred”, “Standard Plus”, and “Standard” rate classifications.

Age 40 – $250,000 in coverage – 15 Year Term

  • “Preferred Plus” – $17.50 per month
  • “Preferred” – $21.44 per month
  • “Standard Plus” – $27.56 per month
  • “Standard” – $32.16 per month

Age 50 – $250,000 in coverage – 15 Year Term

  • “Preferred Plus” – $37.41 per month
  • “Preferred” – $46.16 per month
  • “Standard Plus” – $57.53 per month
  • “Standard” – $72.84 per month

Age 60 – $250,000 in coverage – 15 Year Term

  • “Preferred Plus” – $96.69 per month
  • “Preferred” – $118.12 per month
  • “Standard Plus” – $150.94 per month
  • “Standard” – $182.88 per month

As you can see, the rates will vary significantly between the consumers rated age at the time of the purchase and the rated classification affiliated with the policy. It is also important to keep in mind that the length of policy term play a factor in the age and availability as well. Overall, advertised rated are simply put, not likely.

 

Can We Get Life Insurance Without Medical Insurance

There are big differences between a term life insurance policy that does not require a medical examination and a guaranteed acceptance whole life insurance policy that guarantees eligibility based upon a few medical questions. Although there may be no physical or paramedic examination required in order to secure coverage with particular term life policy there will still be an underwriting process that needs to take place after applying for coverage with most carriers.

Although many assume that these policies that do not require a paramedic examination are purchased as in the same way that you would purchase an off the shelf product from a retail store, it is important to understand that insurance carriers will a series of double checks referred to as the underwriting process prior to issuing a policy.

For these term life insurance cases these review include:

  • Driving Record Verification – With the majority of insurance companies the application process includes a consent to check and review driving record activity. Depending on the company selected there will be requirements in place to ensure eligibility. Most commonly these would be no driving under the influence of alcohol or drugs within the last 7 years, no other major violations within the last 5 years, no more than 2 standard moving violations, and no driver’s license suspensions within the last 5 years.
  • Prescription History Check – When applying for a policy the insurance carriers will review the prescription history of the applicant to ensure that there are no prescriptions that had been prescribed to the applicant that are typically reserved to those of whom have medical conditions that would make the applicant be ineligible for coverage.
  • M.I.B. Check – M.I.B. check is a reference of the medical information bureau that reviews the history of the applicant to review for any other outstanding or recently applied for coverage.
  • Although some consumers may see this additional review to be intrusive and counterproductive, it is imperative that the insurance carriers do their part to protect the rates of those whom qualify for coverage and ensure that the appropriate clients receive coverage from these policies.

It is important to remember that most carriers structure these policies to offer rate based upon a simplified issue concept and create rates structured to appeal to those whom prefer to purchase a simplified issue policy with a limited underwriting process, as opposed to, those with significant pre-existing conditions that a guaranteed acceptance policy would be best suited.

 

Protection For Future Generation

Do you really want to spend your money on the next silly fad for your children or grandchildren? Something that will be broken in a week and soon forgotten. Or would you rather invest in their future by creating a legacy that will make you worthy of having your portrait over their fireplace?

By purchasing a permanent life insurance product for your young children or grandchildren you can produce a significant estate for them for a relatively small investment. The cost of a good whole life policy can be prohibitive for an adult but by setting them up for a child it is very cost-effective.

There are several advantages to setting up a permanent policy for your children or grandchildren other than the low-cost. For example, the application process is drastically simplified with less restrictive medical questions. Also, the family history questions are based on their younger parents and siblings.

By insuring your children and grandchildren at a young age you are protecting them from becoming uninsurable later in life. With 1 in 3 people being diagnosed with a critical illness at some point in our lives doesn’t it make sense to have some kind of permanent insurance in place before that happens? Even if your children remain healthy, they may end up in a high-risk profession or occupation down the road making them hard or very expensive to insure.

Many of these policies have features that allow them to be fully paid up in 20 years or less. You only need to commit to a small payment for up to 20 years and you provide them with growing cash values and protection for life.

There are some that think cheap term insurance is all we need; however, I believe that the term insurance we have paid so much for throughout our lives won’t be there for us when we really need it because it will be just too expensive and we will cancel the policy. I don’t think you want that for your family.

Also, with the advantage of time on their side, the cash portion of a whole life policy can become quite significant by the time they are ready to retire.

In Proverbs 13:22 of the good book it says “A good man leaves an inheritance to his children’s children.”

Just think for a moment, when you purchase a permanent life insurance policy for a grandchild and their children become the beneficiaries, you are leaving an inheritance to your children’s, children’s children! That kind of loving long-term thinking just might get you that portrait over the fireplace.

 

How To Save Your Money For Travel Insurance

Travel insurance should be part and parcel of any holiday plan. This type of insurance can give you peace of mind while you are travelling and when you are already on your vacation. However, a lot of people (and possible holidaymakers) decide to avoid getting travel insurance for one particular reason: its rate. Travel coverage can indeed be expensive, especially for people who will be investing in one for the first time.

There are some tips that you can follow though to save some money on the travel insurance you will get. These helpful tips include the following:

Think about whether your trip is expensive or extensive enough to warrant buying insurance. If you will just be spending a couple of days for a vacation or business trip to a nearby city, you won’t really need coverage. But if you will be travelling to a different country for at least a week for business or leisure purposes, it would be wise to get insurance.

Shop for different insurance policies online or with the help of your insurance broker. Different insurance companies offer various types of coverage and rates. Don’t be contented with the first policy you see or read about on the Internet or the one recommended to you by your broker. Compare and study the product prices. You will then be able to find a coverage that falls within your budget when you research well and make the most out of all available resources.

Research and take advantage of member discounts offered by health insurance funds. There are various health insurance funds that offer member discounts. If you already have health coverage, find out if your provider also offers travel insurance and if you can get discount when you acquire this from them as well.

Don’t be afraid to negotiate prices. You can always try to bargain with your insurance broker to get the coverage you want and the one that fits within your budget. You can also negotiate deals with the insurance company as well. You will find that some companies are very flexible with their rates. And you can work out a deal with them that suit your needs.

Finally, if you will be going on several trips every year, consider getting a multi-trip policy. Multi-trip coverage comes at lower rates when compared to getting insurance valid for only one trip. Although the initial outlay can be higher, you will still save money in the long run by investing in multi-trip insurance. And you won’t have to worry about finding and investing in the right coverage every time you travel.

 

Tips To Buy Holiday Insurance

An often overrated yet essential part of any kind of vacation preparation is the inquiry of insurance policy. Many holidaymakers, having had initial- or second-hand experience of the lots of caveats the market can toss at an unsuspecting purchaser, prefer to pass it up altogether; a lot of the remainder are just too mystified by the distinctions of most plans to be able to create an option.

But, acquiring some form of plan before taking a trip is vital, in order to safeguard oneself against any sort of eventuality that might occur throughout the travel. This is specifically important in the case of travel insurance policy for family holidays, as these include children; the security of their kids against crashes or illness will definitely be front as well as centre in the majority of parents’ minds, making the acquisition of a policy of this kind paramount.

Nevertheless, parents and also guardians which locate themselves in this sort of scenario must not simply choose the first type of traveling insurance for family breaks they can discover. Similar to every little thing else in this area, it is very important to carry out some research in order to discover the best match for their needs among the options on offer. Hereof, one of the most crucial aspects to keep in mind is destination, as visiting different parts of the globe might cause the need for not the same sorts of stipulations to be consisted of in the plan.

Health And Safety

As with every sort of vacation, the most important facets to take into account when buying travel insurance coverage for family vacations are health and wellness, particularly where the youngsters of the group are worried. It is common knowledge that the majority of claims, whether effective or otherwise, revolve around healthcare or physical accidents, and also father and mothers specifically will want to make sure these areas are covered.

That is why it comes to be particularly important to do localized study into the location in which the vacation is to happen. European or North American destinations could not be as well questionable or existing anything uncommon here, however the situation alters rather should the vacation be planned for an Eastern, African and even Caribbean or South American location.

This is because, obviously, the kinds of diseases discovered in those continents and places are considerably not the same from those found in the Old World, as well as for that reason call for special sorts of therapy. Parents seeking to insure their youngsters need to consequently take this right into consideration when getting a plan

 

Reason Holiday Insurance Is Important

Every year, millions of people go on holiday around the world and they’re almost totally uninsured while doing so.

Just why that happens is sometimes a mystery but more commonly studies indicate that it’s one of the following:

  • Trying to save a few dollars on holiday costs
  • Being unaware of just what can go wrong and how much it’ll cost if something does
  • Assuming, usually wrongly, that someone else ‘somewhere’ is covering them
  • Thinking that “it’ll never happen to me“.

Saving money

In a sense, there’s nothing at all wrong with this. That’s providing that you have appropriately weighed up the risk factors and decided that the typically small amount of money you’ll be saving is worth the risk of spending hundreds if not thousands of dollars should something go wrong.

If that’s your decision though then fair enough – and let’s all hope that your luck holds.

Being unaware

Deciding to save money WITHOUT knowing the risks though is dangerous.

For example, let’s assume you’re staying with your family in some luxury holiday accommodation. Maybe you’ve been unlucky and managed to break an ankle, meaning you can’t fly back with them to home base for a couple of days.

So, you’ve lost your flight and will need another. Perhaps a member of your family has stayed on with you to help you travel home in due course. All told, that’s going to be another flight cost plus their extra nights in a hotel.

Before you even blink, you could be facing a bill of thousands of dollars. Are you sure you don’t need insurance?

Someone else is covering you

This is often heard in the context of people thinking, for example, that their personal property household cover will also cover things such as their luggage and possessions when on holiday.

Well, it might but don’t count on it! That’s not something you’ll want to discover if your luggage is say lost or stolen and you claim on your household policy only to be told that your claim is invalid because your goods were outside your property’s boundaries.

The moral here is clear. Never make assumptions about what any existing policies MIGHT cover. Instead, check and if in doubt, call your policy provider and ask.

If you think about it, travel insurance wouldn’t exist if other existing policies already provided such cover to the policyholder.

A slight variable here though is automatic travel insurance that’s sometimes available from financial institutions or credit card companies. That may be OK but remember to read the cover details carefully. If it’s free then it’s very likely to be limited in its protection.

It’ll never happen to me

In the UK in 2015, almost 500,000 holiday insurance claims were paid out by the travel insurance industry.

If that doesn’t convince you that travel problems are not just a freakishly rare occurrence, then nothing will.

Accidents, flight delays, thefts, cancellations due to personal reasons, injuries – these things do happen. While we all sincerely hope they won’t happen to you, it’s worth asking yourself the question just how you’d cope if they did and you had no insurance to help?

Maybe you’re a naturally lucky person and also have no doubt that your luck won’t one day run out when on holiday. If you’re not totally convinced of that though, it might be worth thinking again about travel insurance.

 

Why You Need Travel Insurance

When going on vacation there are so many things to remember and consider but one thing that almost no one considers is travel insurance. No matter how good you are at planning a vacation there are unexpected things that can happen, and that is where travel insurance comes into play. It can compensate you for unforeseen emergencies. Depending on the length of stay and type of trip, there are several type s of travel insurance to choose from.

• Trip Cancellation/Interruption coverage-these policies cover vacation cancellations due to sudden illness or death, weather, emergency military duty, jury duty, prior to departure of cruise line or bankruptcy of airline. Many also include terrorism insurance that will reimburse your expenses in the event that the U.S. Department of State issues a travel warning. This warning will advise people not to travel within a certain country for a certain length of time.
• Medical emergencies-this is useful if you plan to travel to underdeveloped countries. It will also cover individuals who have a chronic illness that may require medical attention at some time during their trip. The policy will reimburse you for the cost of medications, doctor visits, and it may sometimes cover medical evacuation out of the country. Make sure you check with your insurance company regarding the details because travel health coverage polices vary.
• Non-refundable tickets-you may also be able to obtain travel insurance that will cover this in the event your trip has to be cancelled for many different reasons. There are some plans that will even cover missed connections. This can be a lifesaver if there is a flight delay, confusing or over crowded airport terminal.
• Comprehensive insurance package-this is a package for frequent travelers or longer trips. This package provides a variety of coverage and is the best value. Some of these packages will let you choose what type of coverage you want to include.
• Cruise ships-this can cover when a cruise is delayed and the traveler has to change their hotel reservations or the trip is cut short and you have to arrange a trip home at the last minute.

Other expenses or situations may also be covered, which can include:

• Having to be airlifted to a medical facility
• Cost of medical procedures if your health insurance is not recognized in the jurisdiction
• Hotel booking issues
• Paying for a hotel if your flight is delayed
• Replacing essential items when luggage is delayed or loss
• Errors in flight arrangements if the traveler was not at fault
• Emergency legal assistance
• Transportation if you need to return home due to emergency or death of close relatives

 

Guide To Claim Car Insurance

The initial few hours, and days, that follow a car accident are filled with anxiety, stress, and confusion for almost all insured drivers. Many long for an expert to help them and take care of the whole procedure. Filing an insurance claim is when you ask the insurance company to compensate you for the damages caused as a result of a car accident, or when you request insurance agents to intervene on your behalf when you hold someone else liable for the accident.

You pay a considerable amount of cash for your car insurance. Hence it is only justified when you want to make a claim after being involved in an accident. Based on the insurance program you have opted for your company will provide you coverage accordingly. Insurance agencies are assigned to protect you and function as your advocate. At times, people want to handle things by themselves, which is not advisable when there is a third party involved.

Here is a step-by-step process of what you need to do to file a car accident insurance claim:

Contact the Police

When you are involved in an accident, the first thing you should do is contact the police and file a report. The report will contain a detailed description of the crash, eyewitness testimonies, details of the other driver and other relevant information. The police will also make sure you get the medical assistance to help handle your injuries. A police report will come in handy when filing a claim, as it can vouch for your account of what happened.

Call Your Insurance Company Right Away

Call your insurance agency from the scene of the crash if you can, while waiting for the police or after you are safe. This will help the company analyze the damages firsthand, and they can walk you through the next steps that need to be taken. If your car has been severely damaged, the insurance agency will guide you on what needs to be done with the car. A claim file will be opened, and all the necessary details will be added to it. If you do not call them immediately, you won’t know how they can help, and you may wind up burning through cash that you don’t have to.

An Insurance Adjuster Gets Assigned to Your Case

Once your claim has been filed with your car insurance company, a claims adjuster will be assigned to your case. The adjuster will most likely get in touch with you to elicit additional information. While describing the incident, always stick to the facts and avoid any speculation. Submit any photographs and testimonies that you collected at the scene. All of this will be used to determine who is at fault and hence your contribution plays a huge role. If you’re looking to file a personal injury claim with the other driver’s insurance company, it will help to have an attorney present. An attorney who is well-versed with the nuances of personal injury claims will be indispensable in this regard.

Evaluation

The insurance adjuster will conduct a thorough assessment and provide an estimate of the cost to repair your vehicle, medical expenses, and other deductibles that your claim will pay out.

Resolution

After all the evaluation has been done, the adjuster will authorize a final payment for the damages caused. If you’re happy with the settlement offered, you will have to sign a release, accepting the payment for the case.

In many cases, the insurance agency will try to low-ball you and offer a lesser amount for your case. After negotiating with them, if they are still not willing to provide a better settlement, you can get in touch with an attorney who will help you file a lawsuit. If you would like to express your views on the topic, do leave us a comment below.

 

How To Make Lower Car Insurance

Driving a car and keeping it maintained has the potential to cost a lot of money over the long-term. So, it can benefit to look at ways to cut costs where possible, such as on a mandatory expense like auto insurance. Here are a few practical steps that have the ability to lower the auto insurance rates:

Get a quote before buying

Calling one or two insurance agents before buying a brand new vehicle can give an early indication of the likely insurance costs. The premiums for insurance can vary significantly with the different makes, models and age of vehicle. If the insurance for a particular vehicle is likely to be too expensive, it may be more practical to look elsewhere.

Revise coverage on old vehicles

For the older car that is free of finance, it may be worth revising the insurance coverage for collision only. This is the type of protection that is required if damage is coursed to a third-party vehicle. In many cases, this simple step can help to make a useful saving on the cost of insurance.

Use a single insurance company

Try to use a single insurance company for multiple policies, such as auto, home, travel, etc. A benefit of this is the ability to gain a multi-line discount, which is usually in the region of 10-15% of the total annual premium.

Careful driving

There are plenty of insurance policies that offer incentives for a lower premium. One of these incentives is a proven record of careful driving, which can include staying out of accidents and avoid speeding. This has the potential to give a further discount on the annual premium of about 5-7.5%. Also, by avoiding any traffic violations over a period of 3 years; it is possible to get a further deduction of costs.

Increase the deductible

A further simple step to control the costs is to increase the deductible amount. This is the first amount paid by the policy holder at the time of making a claim. By increasing the deductible from $250 to $500, there is the potential to make a substantial difference. The deductible can even be increased to an amount like $1,000, which should go a long way to control the insurance premium. But, it is sensible to only raise the deductible to an amount that is affordable, and easily payable in the event of needing to make an insurance claim.