Life Insurance

Life insurance is not an enjoyable subject nor is it something we tend to think about often. However it must be thought about at some point in time. You may wonder how much life insurance you require to prepare for your future. Life insurance is something you need for sure if you have a family that is dependent on your earnings. If you are single and have no dependents than your needs are different.

When it comes to calculating life insurance you need to consider a selection of factors. These include, as previously mentioned, whether you have dependents or not, and if yes then how many. You also have to consider your marital status, how much money you earn as well as how much your spouse earns and how many more years you both have to work.

What you want to guard against is ending up in a situation where you are either under or over insured. In other words having not enough life insurance or too much. If you are under insured then there will not be enough money left over to care for your family if you should die. On the other hand if you are over insured that means that you are spending too much money on insurance and it is a waste.

As a general rule of thumb most insurance providers say that when it comes to life insurance you should have six to 10 times the amount that you are earning on a yearly basis. You can also calculate how much you require by multiplying your annual earnings with the number of years until you retire. To use a very simple example, a 40 year old male who is earning $20,000 annually will need $500,000 in life insurance (25 years x 20,000= 500,000).

You can use whichever method you prefer to calculate how much life insurance is enough for you. What you must not lose sight of is the fact that the purpose of life insurance is to replace the earnings of a person who has passed away. To put it another way, the amount of life insurance you take out for yourself should be large enough to replace the financial gap that will be left behind for your loved ones in terms of expenses in the event of your death. This is particularly the case if you are the primary breadwinner in the family (or the only breadwinner!). Life insurance is also meant to pay for other expenses as well such as burial costs, estate tax preparation fees, and so on.

Here are three quick steps you can take right now:

1.    Figure out the amount of death benefit that your loved ones will need. Be clear about what it is you want your life insurance policy to cover. This is not the same for everyone. Some people want the money to pay for their funeral costs and taxes while others want it to pay off their mortgage or help to fund their children’s education. 

2.    There is more than one kind of life insurance to choose from. Your job is to decide which one is most suitable for your needs. If you want money for your loved ones in case of your passing then choose permanent life insurance or term life insurance. If you want insurance that will make it possible to save for the future then choose permanent life insurance.

3.    Get some quotes, preferably from two to three different companies. Bear in mind that when it comes to life insurance the more coverage you wish to have the more money you will pay for it.

Only you can decide after careful reflection and an honest assessment of your needs how much life insurance is enough for you. Sit down with your loved ones and talk it over. Only then will you be in the position to make the best decision possible. 

Insurance Claims, Insurance Claim

Insurance claims are the requests of the insured policyholder to the insurer or insurance issuing company for financial reimbursement whenever s/he suffers a loss related to the insured property, life, auto or health. But the insurance claim should be done in accordance with the specifications of the insurance policy or contract.

Insurance claims vary from person to person and from policy to policy. The maximum amount of redemption in case of an insurance claim depends on the scheme under which a person has enrolled and the regular premium amount s/he is paying. At the time of repayment of the claim to the policyholder, the insurance company is only giving back the premium amount, either in entirety or in part.

Insurance Claims: Genuine Claims versus Fraudulent Ones

Some insurance claims are fraudulent in an attempt to defraud the insurance company. So it is necessary for the insurer to carefully process every insurance claim before approving it in order to avoid insurance fraud.

Insurance Claims: Processing

The following areas are ensured in the processing of insurance claims:

The insured person suffers a loss either of his life or health or non-life general type.

The policyholder or the beneficiary calls up the insurer claiming the insurance and asking about all the minute details of the process of claiming the same, along with the documents required.

The insurance company asks for the details of the loss and the relevant documents in support of the claim. A notice has to be issued by the policyholder for claiming the same with utmost urgency mentioning all the possible details (name of the policyholder, names of the persons associated with the accident, witness particulars, their addresses, etc.).

The insurance company would make all the possible queries and inspections through the company representatives or consultants. They have the right to inspect all the relevant properties related with the loss, along with police verifications and determination of the policyholder's liability structure.

The processing period is mentioned in the contract document, which is the approximate time required for verification of the authenticity of the insurance claim.

Insurance Tools Advantages

Today, leading insurance companies use websites to provide consumers, insurance agents, and insurance companies with a wealth of information and resources but the websites also provide numerous insurance tools that can make planning, buying, and claim filing so much easier.  Although many companies use the same type of insurance tools, some offer something a little extra or special.

Probably one of the best insurance tools has to do with claims.  The old method of filing a claim was long and complicated.  Then trying to get an update on where the claim was at in the approval, denial, or payment phase was nearly impossible.  Today, agents and consumers alike can use a special claims tool that makes researching and searching quickly and easy.

One of the fascinating aspects of the insurance industry is that while most companies and agencies have upgraded offices, installed computers, purchased new phone systems, and so on, many still use the old method of claim processing seen 15 to 20 years ago.  Because this option is simply not acceptable, software companies have developed a number of insurance tools that help companies operate in a more efficient and effective manner.

Obviously, using insurance tools for handing the huge volume of claims saves insurance companies and agents a tremendous amount of time that could be used working on something else.  However, these tools also improve overall customer support in that when a policyholder calls in to find out the status of a claim, the information could be obtained within seconds and the simple click of the mouse.

Another advantage to using insurance tools specifically for claims is that errors are avoided.  Trying to manage claims by hand is an open door to disaster.  Numbers are transposed, files put in the wrong place, payout dates misquoted, and so on.  However, with the efficiency of insurance tools for claims, all of the problems that insurance companies and agents have dealt with for years have been eliminated.

With technology where it is today, software developers have been able to listen to the concerns of insurance professionals, as well as consumers and build a viable solution around that information.  Obviously, for insurance tools of any kind to work, developers need to conduct a variety of interviews and listen to focus group discussions so they can gain a full understanding of the insurance tools needed.

Once developers have all the required data, they begin to design insurance tools using modern day computer technology.  The outcome is insurance companies and agencies have a new business model that allows them to provide consumers with a better and more valued added solution.  Some of the other popular insurance tools include financial planning, policy terms and rates comparisons, and more.

The insurance tools available today were simply not something that could have been offered a few years back.  While there is an investment for each software solution initially, ultimately, the return on investment is incredible.  Of course, as more and more insurance tools are developed and companies and agencies are buying greater volumes, the price for these software solutions will continually decrease in price.

Is Term Life Insurance a Waste of Money?

In this article, we wanted to address the question of term life insurance being valuable or a waste of money.  For starters, the purpose of term life insurance makes it possible for people to purchase a life insurance policy needed at a time when permanent insurance does not fit within the budget or when life insurance protection is needed but only for a specified amount of time.  Although there is no cash value, term life insurance does provide a guaranteed death benefit.

For premiums, these are designed to increase at set intervals, usually one, five, ten, and twenty years, based on the exact policy chosen.  In addition, a policy of this kind is often used when life insurance protection is greater but only for a certain amount of time, followed by decreasing years down the road.  For instance, this type of movement would be seen with the addition of new family members, followed by children growing up and moving away from home.

When needing supplemental insurance coverage to go with permanent insurance during the years when needs are greatest, term life insurance would make a great choice.  When used for at a time such as this, you would have the opportunity to purchase death benefit protection while keeping the amount of premium low.  Then, if you choose a convertible type of term life insurance policy, you would have immediately coverage but also have the option of buying permanent insurance in the future.

In response to the question of whether term life insurance is a waste of money, in most situations the answer would be no.  Because this type of coverage is designed for a very specific purpose, people who take out a policy typically benefit from the coverage.  Although there are many situations in which term life insurance would prove highly beneficial, you should also understand that some drawbacks exist as well.

As mentioned, term life insurance provides a death benefit but only for a predetermined about of time.  Therefore, if you were to outlive the time for this benefit, then the beneficiaries on the policy would end up with nothing, meaning you invested time in a policy that provided no benefit.  Another thing you should know is that at the time the term life insurance policy ends, all protection is also gone.  The same would be true if you were to stop making the premiums for the life insurance policy.

One of the best ways to think of term life insurance would be when renting a home.  By being a renter, you would be granted access to the property, as well as the rooms inside and any amenities on the outside.  However, this access would only be made available for the term of the contract and if you are making the payments as agreed.  However, once the rental contract ends and you move on, you take with you no cash value, even if you had lived in that home for five years.

When shopping around for a term life insurance policy, it would be worthwhile to choose one that converts automatically to permanent insurance.  However, you want to pay close attention to the details since not all policies will convert.  Even if you have a term life insurance policy that converts, make sure you understand any applicable restrictions.  For instance, at the time of the term life insurance policy ending, whether it converts to a permanent policy or not, you may be required to go through another medical examination to prove you are insurable.

Remember, premiums for a term life insurance policy increase at set intervals and over many years, these premiums become expensive.  In fact, it is common for a person to buy this type of insurance around age 25 while holding onto the policy until around age 65.  At that time, premiums have become too high for most people to afford.  Because of this, choosing a term life insurance policy that converts to permanent insurance is so important.  Once you have locked into a permanent policy at a fixed premium, the policy cannot be cancelled ever if you continue making the scheduled payments according to the contract.

Insurance Marketing Strategies

Insurance marketing is basically just the marketing of insurance products. Marketing of this sort is an important tool when it comes to the business of insurance. The marketing of insurance readily happens in the life insurance department as well as the non-life insurance department.   

What type of advertising and marketing is most suitable for your insurance business? This is not a one size fits all deal. You must consider how much of a budget you have and work from there. You also need to know what your target market is. For example, are you going to sell one type of insurance such as life insurance or a variety, such as health insurance, auto insurance and house insurance? What is the demographic you are aiming for? The more you know the better able you will be to figure out what type of insurance marketing you should do to grow your business.

Online advertising is one marketing tool that is worth the money. As the Internet takes on more power and influence all of the time, having a web presence will put you on the cyber map and get you noticed. It has been found through studies that 75 percent of all households have access to a computer and Internet resources. Find out what you need to do in order to get online before that percentage gets any higher!

Block line advertising in trade journals, industry publications and periodicals is the way to go. This is because industry professionals read these publications to keep in the know. You are an industry professional so you need to get your business in one or more of these publications as well.

Television ads and print ads are excellent forms of insurance marketing. However the downside is that both can be very expensive. You may go way beyond your advertising budget if you decide to use either one of these methods. However if you can afford it then your best course of action is to either consult with an external advertising agency or hire one to help you develop a campaign that is conducive to what you need most. Your goal of course is to gain exposure and to increase your sales.

If you decide that print ads would suit your style and your budget just fine then colored ads are the most expensive to produce but can be very appealing to the eye. You can also choose a “reverse type” for your advertisements. Think back to what black and white television looked like. The ad would have white lettering on a stark black background. The black background sets off the lettering and gives it that catchy effect.

Marketing Health Insurance

Marketing health insurance is one of the most difficult jobs in insurance marketing. This is because of the perpetual conflict between the insurance companies which want to make a profit and the insured person who wants to get as much compensation as possible from the insurance company. Commissions for the health companies are very low and they seldom make profits from health insurance.

Marketing Health Insurance: Reasons

In the past, health insurance policies for young children and health people have had low premiums, resulting in little profit. Those who paid high rates of premium were the older people who often got ill, with the result that the health insurance companies had to compensate for that. However, nowadays health insurance premiums are almost the same for a healthy young adult and an old person who just has had a major operation.

Marketing Health Insurance: Advertising and Informing

In order to advertise and market their products, health insurance companies use fliers and banners that inform clients about their range of products. Another strategy in marketing health insurance is to offer free health checks to the insured. It is important that health insurance companies give policyholders, existing or potential, a chance to understand the benefits the insurance company is presenting to them. This makes clients feel comfortable and cared for. If this is done regularly by the company, there are high chances of attracting new customers.

Marketing Health Insurance: A Competitive Field

Marketing health insurance products has invited tough competition as most health insurance companies offer similar types of premiums and facilities. So it has become very important for life insurance companies to focus on health insurance marketing and attract as many people as possible to their company.

Marketing Health Insurance: Know the Target Audience

It is hence mandatory for one to know about the market target and the needs of the customers before proceeding with health insurance marketing.

It is easy to capture the potential insurance holder's attention if the insurance company knows its targets and aims clearly. So, it is important to conduct a survey (of what?) and then aim at attracting people.

Health Insurance Marketing: Strategies

A very common strategy of health insurance marketing is making the name of the company familiar to the public by means of television commercials, pamphlets, banners and exciting offers.

Telephone marketing is another health insurance marketing strategy. One can employ telephone companies to send messages about various offers. Call centers are also used to inform potential clients of the company’s products.

Web insurance marketing is another good strategy to promote insurance policies. The pop ups that one sees while using the Internet are actually a very effective way of sending messages to potential insurance customers.

A health insurance company should charge the same rates for any one policy from all clients. By not doing so, policyholders feel they are being treated unfairly and that the health insurance companies are only looking for profits and not interested in customer welfare.

When a health insurance claim is filed, especially for a large amount, the health insurance company should help the policyholder with the necessary paperwork. Companies should avoid bureaucracy and instead, facilitate the speedy dispensing of claims. There are companies who avoid doing this in order to frustrate beneficiaries who eventually forsake their claim. Although this generates a short term profit for the company; it hurts the reputation of the company in the long run.

Community health insurance marketing is another way to promote and gain recognition for the health insurance company. Eminent employees join local community institutions, such as the Chamber of Commerce, and by signing up there, one can volunteer with various community projects. Such activities help the health insurance company to get free publicity. They also help the health insurance companies to meet people who can be their potential health insurance clients.

For effective health insurance marketing, one should pay attention to existing and potential health insurance policy holders. It’s important to listen to what people who actually matter have to say. One common problem that insured people face is that insurance companies do not inform clients regarding a hike in premium rates. It is important to keep customers well informed of such developments. The health insurance company should also maintain as much transparency as possible.

The competition in the insurance market is so fierce today that no company wants to lose a customer to another company. While marketing health insurance, people should not ignore their existing policyholders in the race to get new business. Clients who are not contacted for a long period of time normally fail to remain loyal to the insurance company and look for a different health insurance company. It’s therefore wise for the company to maintain records of the client's birthday, anniversaries, etc. and send him/her a small token on a regular basis. If the company can afford it, sending dinner coupons to the policyholder is also a good idea. Such things play a major role and can be considered effective health insurance marketing strategies.

Economy Dental Insurance

Most full coverage dental plans cover basic and major dental care procedures. However, this comprehensive dental plan may prove to be costly, necessitating an economy dental insurance plan. Economic dental plans may cover either basic dental care or major procedures. You need to shop carefully for your dental insurance plans to get the policy that best meets your needs.

Economy Dental Insurance: What Is Covered? 

Coverage offered by economic dental insurance is based on policy, plan and provider. Before buying a dental insurance cover, read the fine print of your policy or contract. In general, basic dental insurance provides the following cover:

• Preventive and diagnostic dental care: Almost all dental insurance policies cover the cost of basic dental care that prevents the aggravation of problems. Thus, a major portion or the complete costs of services (such as cleaning, checkups and other dental procedures that prevent tooth and gum disease) are reimbursed under the policy. This cover is critical as it encourages patients to seek regular dental care, preventing major problems later in life.
  
• Basic dental care and dental procedures: Most dental insurance plans also cover expenses associated with basic dental procedures. These procedures may include fillings, fixing chipped teeth and tooth extractions. However, the procedures categorized under basic dental care are dependent on the insurance provider. For example, while some providers include root canals under basic dental care, others do not. In general, since insurers reimburse a major portion of the basic dental care and dental procedures, economical dental insurance providers cover a limited number of procedures.
  
• Major dental care: While not all dental insurance plans cover major dental care, some cover a portion of these costs. Major dental care can include procedures such as denture work, dental surgery, orthodontics and other expensive dental procedures. If you will require major dental care at some point in the future, you may wish to opt for a provider who will pay a large percentage of expenses related to this type of dental care.
  

Economy Dental Insurance Vs Dental Plans 

Some of the disadvantages of economic dental insurance are:

• Dental insurance is not usually offered to individuals. It is instead offered to major companies, which in turn give it to their employees.
  
• This insurance does not generally cover all types of dental care and procedure.
  
• There is a limit to spending every year.

General Insurance Information

If you ever hear the term “general insurance”, it means anything other than life insurance coverage.  In other words, general insurance is comprised of protection coverage against things such as burglary, fire, and so on.  In addition, this type of insurance could personal insurance to include accident and health, as well as liability, which is actually a type of legal insurance that would be used by professionals against errors and omissions.

Companies that sell general insurance provide various policy types, even those that provide protection for the home.  In this case, coverage would include allied perils, fire, inundation, earthquake, flood, storm damage, etc.  In addition, general insurance would cover your home from a break in, theft, and other such damages.  Interestingly, general insurance also has policies for machinery should any of them break down.

Then, general insurance covers marine issues.  Under the Marine Cargo policy, any type of goods being transported on the water, by air, or by road would also be protected from theft or damage.  Additionally, automobiles would be covered under different policies for general insurance and in fact, of all the different types of policies available, automobile coverage accounts for the majority of this insurance type.

One important note when it comes to general insurance and property protection.
Only the real value of the property can be purchased in the form of an insurance policy.  If someone were to take out a policy of greater value, risk of being charged with a hefty fine is likely.  By law, insurance coverage cannot be more than actual value so in this case, there could be some legal consequences.

In addition, for general insurance you would be required to insure a property for the value and not less.  If you did not carry enough insurance and something were to happen, you as the policyholder would have the brunt of responsibility for what is referred to as “ratable proportion of loss.”  In other words, if a home were appraised at $200,000 but you only insured it for $100,000, if damage were done to the home to the full amount of the policy, being $100,000; the policy would only pay out $50,000 because you carried 50% less insurance than required.  Of course, if the property were under insured for 25%, 30%, 40%, or some other amount, the policy would match that on a claim.

Then for personal accident and health, this too would fall under the general insurance policy.  For insurance, you would have coverage if ever hospitalized in the form of cashless or reimbursement.  Individuals could also take out a general insurance policy for accident and health just as for groups.  In this case, insurance protection for an individual would be for one person but for group coverage, it would be for employees in the form of employer provided coverage.

Even liability is a part of general insurance.  Some of the policy types in this case would include motor third-party liability and worker’s compensation.  With so many different types of coverage, general insurance is without doubt important.  With this, people can have the type of coverage needed to enjoy life while being protected.

 

Economy Medical Insurance

Medical insurance plans provide cover to policyholders in terms of reimbursing their medical expenses if they fall seriously ill or meet with an accident. While there are several plans available in the market to cater to the varied needs of consumers, economy medical insurance is the most sought after.

Economy Medical Insurance: Basic Information

While buying economy medical insurance, consider the following:

• Coverage under insurance plans is provided only for pre-specified medical expenses. Read the plan handbook to ascertain which medical treatments are covered before buying a policy.
  
• The term 'managed care' is used by insurers to control costs. If your insurance policy falls under “managed care,” always seek approval from the insurance provider before going to a hospital to ensure that your hospital bills are reimbursed.
  
• The insured has to typically pay a specific sum (known as deductible) on an annual basis to the insurance company before it starts paying.
  
• The insured may need to share a part of the medical bill with the insurer. This is known as coinsurance payment.
  
• According to the 'coordination of benefits' clause, there is a limit to the amount paid by an insurance company if a couple files for a claim for the same medical expense under two different group insurance plans.
  
• Choose the insurer who offers the maximum cover for the same price.
  

Things to Consider When Buying Economy Medical Insurance

The first step towards buying an economy medical insurance is the identification of personal insurance needs.

• While seeking cheap medical insurance, prioritize the risks faced by you.
  
• A low-cost medical insurer may not provide cover for very high risks and might deny claims submitted for expensive medical treatments. Therefore, a potential insurance buyer must read the policy disclosure agreement carefully.
  
• Always ask the insurer or agent to explain the points in detail whenever you are in doubt.
  
• Research the track record of an insurance company to gauge its credibility and financial soundness.
  
• Look for group insurance and insurance provided by employers to lower your medical premium. Group insurance policies are cheap and offer greater coverage. Moreover, you may not be required to undergo medical screening to qualify for the policy.
  

  Economy Health Insurance

  Although most people are provided health insurance through their employers, there is no guarantee that everyone has adequate health cover. According to the US Census Bureau, nearly 46 million Americans, or 18% of the population under the age of 65, were without health insurance in 2007.
  
  The reasons for such a high number of uninsured people are:
  
• Inability to afford their portion of the insurance premium. Health insurance premiums have risen by 119% for employers between 1999 and 2008. Employee spending on health insurance coverage has accordingly surged 117%.
  
• Small firms hesitate to offer the health cover due to such a rapid rise in premiums. While the average increase in yearly inflation has been 2.5%, health insurance premiums have escalated by 12% on an average for small firms.
  

Census studies also indicate that about 22,000 excess deaths occur annually among uninsured adults aged 25 to 64. This mortality rate is significantly more than the deaths from diabetes (17,500) within the same age group. The best way to avoid being part of the uninsured, high-risk group is to get an economy health insurance policy.

Economy Health Insurance: Things to Consider

Economy health insurance plans, or the least expensive health plans, usually offer the least coverage. Thus, while buying economical health insurance, balance the coverage with what you can afford comfortably. While buying a health insurance policy, pay special attention to what is included and excluded in the plan. For example, you can decide to exclude maternity care from your policy if you are not planning for children in the near term and save on costs.

Every policy document has the following sections at the back:

• Outline of Coverage: This section shows what will be paid for by your plan. It also indicates the extent of medical bills you will need to pay for.
  
• Exclusions and Limitations: There are 2 key things to consider:
  
  • Deductible waived: This indicates that you do not have to pay towards your plan before the start of coverage. Several economical health insurance plans waive the deductible for routine care and basic lab tests.
    
  • Does Not Apply to Out-Of-Pocket Maximum: This means that the payments you make for certain services are not included in your out-of-pocket maximum. So even if you have spent your annual out-of-pocket maximum, you may still find yourself paying for certain services. Check this section carefully for the services that have "Do Not Apply" mentioned with them.
    
• Limitations and Exclusions: This section is tough to understand and is always specified in fine print. However, it is important to understand any exclusions to the plan before you buy the policy.
  

Remember to check out the quotes of several insurance providers before you finalize your economy health insurance policy.

Economy Home Insurance

Insurance companies offer economy home insurance with building and contents cover at affordable rates. To buy an economy home insurance policy, one has to research the market thoroughly. However, one can employ alternate methods to curtail the home insurance premium.

Economy Home Insurance: How to Get Discounts

Consider the following tips while buying an economy home insurance policy:

• Home security: Insurance companies provide discount on home and contents insurance premiums if the home is fitted with an effective burglar alarm system. Purchase a burglar alarm approved by an authorized national security systems agency. Also, install window and door locks to minimize the risk of theft. Develop a neighborhood watch program in the locality and ask for discounts from the insurance company.
  
• Combined policy: One can purchase both building only and contents only insurance together from the same insurance company to enjoy discounts. Comprehensive home insurance is also available at low rates but it offers limited coverage.
  
• Group policy: One can buy economy home insurance in groups. Group insurance policies offer customized coverage at affordable rates. For group policies, one can also negotiate with the insurance company in terms of coverage and premiums. Communicate with the community associations to form a large group to enjoy maximize benefits.
  
• No-claims bonus: Insurance companies offer discounts to individuals with a no-claims history. To enjoy this benefit, a policyholder should have accurate records of the previous insurance policies and claims filed, if any.
  
• Online shopping: Buying economy home insurance cover online can provide 10%-20% discount on the policy premium. One can receive economy home insurance quotes from different online providers. Compare the quotes for the amount of coverage and policy premium and sign in for the best deal. However, one should pay extra care while buying insurance online. The credibility of the insurance company should be ensured to avoid online fraud.
  
• Deductibles: It is the amount that a policyholder agrees to pay towards the economy home insurance claim. As the deductibles rise, the financial risk to the insurance company declines. Thus, higher deductibles mean lower premiums. However, the idea of increasing deductibles is not ideal for individuals residing in risk prone areas.
  

Every individual wishes to pay lower premiums and get economy home insurance. However, cutting down on the policy cover to reduce premiums is not prudent.

Economy Life Insurance

According to the Bureau of Labor Statistics of the US Department of Labor, roughly 70% of workers in the private industry had access to employer-provided medical care benefits in March 2009. While 90% of the high wage earners received such benefits, only 25% of the low wage earners received the same. These statistics underscore the importance of economy life insurance.

Term insurance is the simplest and most economical form of life insurance that offers financial support to the family in case of a policyholder's death within the term of the insurance policy. In this form of life insurance, the premium amount remains unchanged through the entire term of the policy.

Economy Life Insurance: Features Sought

The features to seek in an economical life insurance policy are:

• Benefits should be tailor made to suit individual requirements
  
• Should have cost efficient rates
  
• Should be flexible, so that it can be altered to suit changing requirements
  
• Should have death benefit that can be extended up to 70 years of age
  

Economy Life Insurance: Tips

You can lower your life insurance premiums through the following measures:

• Buy term life insurance at a young age: At a young age, you might not feel the urgency for insuring your life and may not have substantial financial requirements. However, at this age, the term life rates will be quite low. Lock in high term life insurance coverage at this stage when your health is good and the prices are low.
  
• Opt for appropriate insurance coverage: Most financial planners recommend purchasing coverage equal to six to ten times your annual gross income.
  
• Select the right term for the insurance cover: While people in their 30s or 40s should opt for a 20-year term length, a person close to retirement should not opt for a term of more than ten years. Similarly, people trying to quit smoking must purchase a shorter term policy. After qualifying for non-tobacco rates, one can replace the former policy with a longer-term one.
  
• Look for price breaks in insurance coverage: Check out the premium when your coverage increases to $250,000, $500,000 or $1,000,000. Companies often offer price breaks at certain coverage amounts. As a result, people can get the opportunity to pay a lower premium for more coverage.
  

 

Economy Auto Insurance

Sound knowledge of how car insurers decide on the premium for auto insurance can help you find the best economy auto insurance deal. Economy car insurance is a result of a careful purchase and usage of a vehicle. One can decrease the premium of a car insurance policy by working on factors ranging from the model of the car to the amount of deductibles.  

Economy Auto Insurance: Tips

Before agreeing to economy auto insurance, car insurers look at different areas to gauge the risk of insuring the vehicle owner/driver. They even study the credit report to see the possibility of a driver missing out a premium payment. Knowing the factors that determine the premium can help you decrease the rate. Here are some tips that can help you in bringing down the premium:

• Improve your image through controllable factors: Factors such as the mileage, frequency of driving, model, security features and dents and repairs are what a car insurer looks into before deciding the premium. For instance, the premium is lower for cars that have anti-theft devices installed. Therefore, ensure that you look into all such factors in order to lower the premium of the cover.
  
• Use one insurance company for all covers: Buying car insurance from the same insurer that covers you health, life and other covers is the best way of getting discounts by virtue of volumes. Insurers encourage such moves and offer lower premiums.
  
• Discuss with experts, friends and colleagues: People are always on the look out for economy auto insurance. Therefore, make use of their research and inquire about their insurer. Also, talk to experts about more ways of decreasing the premium, such as increasing your deductibles. Ask for references from vehicle showrooms.
  
• Compare and then shop: Do not buy the first attractive car insurance that comes your way. Due to intense competition in this segment, car insurers try to attract clients through different prices. Therefore conduct thorough research before buying an economy car insurance.
  

Adding your children’s names in the policy can help you get discounts as well. If your children travel without a car to schools that are located at a distance, car insurers decrease the premium to compensate for the daily traveling expenses borne by you.

Following the above tips will ensure a lower premium and will help you find the best economy auto/car insurance.

Economy Travel Insurance

It has become easier to find economy travel insurance with the increasing penetration of the Internet. There are several websites enabling you to compare prices and coverage of different insurance polices. While these sites make identifying an economical policy easy, most people are not aware that the best way to save on travel insurance is to consider existing policies.

Our existing insurance policies (such as life insurance and medical insurance) cover us for areas similar to those covered by travel insurance. So, purchasing travel insurance without considering existing policies may result in money spent on duplicate coverage.

Economy Travel Insurance: Ways to Lower Cost

Besides studying the details of existing insurance policies, here are some other ways of lowering the cost of travel insurance:

• Compare the cost of travel insurance from various insurers and agents. Commissions and other hidden charges may make a policy expensive without you even realizing it.
  
• Ask your existing insurers for travel insurance. They often give you discounts by the virtue of volume.
  
• Form a group of people traveling to the same destination. Group travel insurance is cheaper than individual travel insurance.
  
• Increase your deductibles.
  
• Purchase a customized travel insurance policy. Purchase a policy from an insurer that will tailor the policy to suit your individual requirements and circumstances. A one-size-fits-all policy may have covers that you might not need.
  

Economy Travel Insurance: Things to Consider

Most insurers that offer economical travel insurance exclude some crucial coverage from the policy. These may be:
·        Default of carrier: Excluding this means that losses arising out of the tour operator or the airline going out of business will not be covered.
·         Pre-existing medical conditions: Leaving this out might prove costly, as the probability of a pre-existing medical condition being aggravated by travel is higher than the probability of suffering from a new ailment.

Consider the excesses or deductibles before purchasing a travel insurance policy. Some policies charge you multiple excesses for the same claim event, making the policy expensive.

What is Insurance?

The meaning of insurance: Insurance is a policy from a large financial institution that offers a person, company, or other entity reimbursement or financial protection against possible future losses or damages.

The meaning of insurance is important to understand for anybody that is considering buying an insurance policy or simply understanding the basics of finance. Insurance is a hedging instrument used as a precautionary measure against future contingent losses. This instrument is used for managing the possible risks of the future.

Insurance is bought in order to hedge the possible risks of the future which may or may not take place. This is a mode of financially insuring that if such a incident happens then the loss does not affect the present well-being of the person or the property insured. Thus, through insurance, a person buys security and protection.

A simple example will make the meaning of insurance easy to understand. A biker is always subjected to the risk of head injury. But it is not certain that the accident causing him the head injury would definitely occur. Still, people riding bikes cover their heads with helmets. This helmet in such cases acts as insurance by protecting him/her from any possible danger. The price paid was the possible inconvenience or act of wearing the helmet; this ie equivalent to the insurance premiums paid.

Though loss of life or injuries incurred cannot be measured in financial terms, insurance attempts to quantify such losses financially. Insurance can be defined as the process of reimbursing or protecting a person from contingent risk of losses through financial means, in return for relatively small, regular payments to the insuring body or insurance company.

Insurance can range from life to medical to general (residential,commercial property, natural incidents, burglary, etc).

• Life Insurance
  It insures the life of the person buying the Life Insurance Certificate. Once a Life Insurance is sold by a company then the company remains legally entitled to make payment to the beneficiary after the death of the policy holder.
• Medical Insurance
  This is also known as mediclaim. Here, the policy holder is entitled to receive the amount spent for his health purposes from the insurance company.
• General Insurance
  This insurance type involves insuring the risks associated with the general life such as automobiles, business related, natural incidents, commercial and residential properties, etc. 

Economy Insurance

Although economy insurance is the most sought after policy, as it caters to the middle- and low-income groups, many people find themselves paying much higher medical costs than they had budgeted for. The problem lies in the lack of knowledge of low-cost medical insurance.

Making the Best Use of Medical Economy Insurance

Some of the ways to limit insurance costs are:

• Basics: Take measures to lose weight, exercise, quit smoking, eat a healthy diet and wear seat belts. Doing this may eliminate the need for frequent doctor visits.
• Join a Health Maintenance Organization (HMO) and use only those health care providers that are on its network list. Going outside the network might cost you substantially.
• Visit doctors who accept assignments: If you are a member of Medicare, go to only those doctors who accept assignments. This means they will not charge more than what Medicare will pay for a specific procedure. Although you would still be required to pay your deductible and a percentage share of the bill, you will be saved from paying any excess charges. If your doctor does not accept assignment, check with the local Social Security office or your insurer for a list of participating Medicare physicians.
• If you have a fee-for-service plan, request your doctor to limit his fees to the amount that your insurance will pay.
• Arrange for your old X-rays and medical records to be sent to your new doctor or dentist. This will help in cutting down costs.
• Use generic drugs unless there is a valid reason of not doing so.
• Call your doctor or nurse for advice by telephone. This will save on visitation cost.
• If you are paying a part of a doctor’s or hospital bill, be sure to get it itemized. Hospitals sometimes add the cost of treatments that you did not receive to your bill. If the services on the bill are listed in code, seek the help of the billing officer in deciphering and verifying them.
• Get a copy of your doctor or hospital bill to see the amount that was actually paid. Your insurer may have received a discount. Since you might need to pay a percentage of the bill, it should be calculated on the discounted amount, unless the policy states otherwise.
• If there is a 24-hour emergency clinic in your area, check its costs. These clinics are usually less expensive than a hospital emergency room.
• Use low-cost mail-order pharmacies run by HMOs to procure your medicines.

Economy Property Insurance

Economy property insurance can vary by hundreds of dollars depending on the size of the property, contents under cover, insured perils and the insurance company involved.

How to Buy Economy Property Insurance

The price of economy property insurance varies from company to company, so it always pays to explore the market for the best deal. Get insurance quotes from different companies and compare them in terms of coverage available and the policy price. One can contact insurance companies directly by visiting their office or sales centers. Some insurance companies sell their products through insurance agents, who are authorized representatives.

Insurance brokers also sell economy property insurance policies. However, since they have relationships with different insurance companies, insurance brokers can offer more choice. Thus, insurance brokers offer different policy covers based on individual needs. They charge a certain percentage of the policy price as commission.

You can also obtain online quotes by visiting the insurance company’s website. Almost every major insurance company has online policy purchase options. Due to the reduced overhead costs and lesser complexity in online purchases, insurance companies offer 10%-20% discount to the online buyers. However, the Internet is flooded with fake insurance policies that pretend to offer economy property insurance quotes. They ask for personal information from the policy seeker to gain undue advantage. Hence, insist on buying online insurance policy from a reputed firm only.

Economy Property Insurance: Essential Tips

Here are some tips on getting economy property insurance:

• Security features: Insurance companies offer discounts if the building is protected with intact security features. Save on the premium by having storm shutters, break-proof glass, high-quality roofing material, earthquake-resistant design, shock-proof electrical systems, etc. Install electronic surveillance systems and high-quality locks to minimize the risk of theft.
  
• Discounts: Insurance companies provide discount on group policies. Also, buy insurance products such as auto, property and flood, from the same company to enjoy loyalty discounts. Policy renewal under the same insurance company will also help reduce the premium.
  
• Raise deductibles: Another method to buy economy property insurance is to raise the deductibles. Remember the higher the deductibles, lower will be the policy premium.
  

Revise the economy property insurance policy at ever renewal term. Exclude contents that have paid for their price. Instead, include new belongings to maximize coverage without increasing the policy price.

 

Types of Insurance

Insurance is something that almost all of us will need sometime, and it is worth understanding it before buying it.

Various types of insurance include vehicle insurance, which includes auto, motorcycle, and boat insurance, health insurance, life insurance, home insurance, travel insurance, personal property insurance, keyman insurance, dental insurance, rental insurance, and more.

Often, insurance is required - especially in the cases of motor insurance. Other times, it is a safeguard.

Insurance is a form of risk-management which spreads risk of many people in exchange for small payments from each. Specifically, insurance transfers some type of risk (accident, theft, natural disaster, illness, etc) from one person or group to a more financially-sound entity in exchange for a payment (also known as an insurance premium). Premiums are often annual or monthly, but depending on the type of insurance they can be at other intervals.

For example, a consumer can pay a certain amount to an insurer such as Motley Fool each year to insure that person's car. This sum represents the insurance company's assessment of the likelihood that the car will be damaged or wrecked. These data are normally taken from historical figures relating to the age, sex, profession, driving record, and accident history of the insured, as well as statistics concerning make and model of the car and its accident record, as well as the engine size, number of passengers, and even color of the vehicle.

Statistically, if the make and model of the vehicle in question, and/or its driver have been in numerous accidents, the insurance company will charge a higher premium in order to hedge expected losses. As the risk increases, so too do the premiums. In fact, sometimes, insurance companies will not even insure certain people and/or vehicles as the chance of them having to make a payout (in the event of an accident) will be almost guaranteed.

Types of Insurance

1.Motor insurance

This includes automobile, truck, motorcycle, aircraft, boat, or any other form of motorized transportation. It is perhaps the most common type of insurance, and is required by law in many countries.

Motor insurance covers the insured party against financial loss that he may incur to repair his vehicle or a third party’s in the event of an accident. In return for annual or semi-annual premiums, the insurance company is bound to pay any losses as described in the policy. Such a policy may include property, liability or third party, and medical coverage.

Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a result of the insured’s actions, and medical coverage pays any fees necessary for bodily injuries, rehabilitation and in some cases foregone wages and funeral costs.

In many countries, all of these types of automovile insurance are required of vehicle owners. In some countries, or states, only third party is required. However, in the case of new vehicles, any banks which may be financing the vehicle may require full insurance as a condition of financing.

If you have a larger vehicle, take a look at Autonet Van Insurance.

2.Health insurance

Most developed nations have government-funded health care which means that most or all citizens have access to medical facilities and treatment, as well as health insurance.

For example, the National health Service (NHS) in the United Kingdom pays for citizens’ medical needs. However, in the US, there is no government-funded health policy - whether for insurance or treatment. As a result, US citizens and residents must be insured or risk facing astronomical medical bills, garnishing of wages, and bankruptcy. Often, medical insurance (both health and dental) is included in employee benefit packages in the US and other countries. Nevertheless, the issue of affordable health insurance and treatment in the US is one of the most controversial and heated topics, as many cannot afford either. If you live in a country without comprehensive national health care, then low cost health insurance is a vital requirement.

3.Disability insurance

This form of insurance protects workers from injuries and illnesses which prevent them from doing their jobs. It can pay for existing commitments the policyholders may have such as outstanding bills, mortgages, utilities, and more.

Workers’ compensation is common in the US, and pays a worker his wages and medical expenses in the event of an injury on the job.

Permanent disability which prevents a worker from ever working again is covered by total permanent disability insurance. This provides the disabled employee with benefits for the rest of his or her life, or according to the terms specified in the policy. Companies can purchase a similar type of insurance, called, disability overhead insurance. This pays for ongoing overhead costs of a business while the owners are not able to work.

A Catastrophic Health Insurance plan, also known as a high deductible health plan, is good to have for those who prefer to pay lower monthly premiums. If your plan is eligible for a Health Savings Account, you can use those funds to pay the deductible and out-of-pocket expenses which saves you money in the long run.

4.Property insurance

This type of insurance typically covers things like homes, machinery, crops, valuable goods, shipped cargo, rented property (homes or apartments), and more.

It can cover damages as a result of various activities including acts of God (earthquakes, floods, storms, hurricanes, etc), vandalism, terrorism, fraud, and more.

5.Liability insurance

This covers negligent acts of an insured party with reference to a vehicle or a home. It protects the insured against legal claims and indemnification.

There are various types of liability insurance such as professional indemnity insurance Environmental liability insurance and Prize indemnity insurance .

Professional indemnity insurance protects employees from malpractice suits (as in the medical profession), errors and omissions (by appraisers, home inspectors, realtors, insurance agents, notaries, and others), and other acts of unintentional workplace negligence.

6.Credit insurance

This is taken by lenders who need coverage against the people that have credit with them (borrow money). In the event of their inability to pay it back (usually due to unemployment, disability, or death), this insurance protects the lender.

There are many other kinds of insuance, and even each of the major categories mentioned above has dozens of variations and types. They differ depending on the markets, the understanding of risk and availability of historical data, government regulation and law, cultural perceptions and expectations, and more.

7.Travel insurance

Travel insurance covers financial losses caused by trips abroad. Depending on the policy in question, in may cover lost luggage, theft of personal possessions, medical costs and delayed flights.

The internet has become an extremely popular means to find cheap holiday insurance.

US Property Insurance

US Property Insurance provides coverage for a building and its contents. If you are a business owner or homeowner, property insurance is necessary for you since there are several unforeseen events that might lead you to financial crisis. A standard property insurance policy covers losses due to tragic events such as fire, theft and natural calamities. USA Property Insurance is flexible and can be tailored according to your property or your requirements. It also offers coverage to boat, RVs (Recreational Vehicles), classic motorcycles and cars. Property insurance has been classified according to the policyholder’s needs.

Multiple insurances Included Under US Property Insurance

Homeowner’s Insurance: This policy covers the homeowner in the event of damage and loss due to fire, theft, vandalism, natural calamities and third party liabilities. Interiors and contents within the property are also protected by homeowner’s insurance. Some regions of the USA are prone to damage caused by natural disasters. You might want to protect your property from such occurrences by adding separate riders.

 

Rental Property Insurance: Rental property insurance offers coverage to the building and its contents, while also compensating for losses incurred due to careless tenants. Articles covered by insurance, such as furniture, carpets, curtains and other household items, might be damaged due to negligent tenants.

Commercial Property Insurance: This policy covers business properties and their contents. The policy provides cover for damage caused by theft and fire to assets such as money, inventory, furniture, machinery and securities. If your business is located in a snow-bound region, you would also need to buy this insurance for damages due to snow, ice and hail.

Personal Property Insurance: Your possessions within the property premises, such as jewelry, watches, guns, business personal property, money, silverware and precious items, can be protected by this insurance. If you possess expensive furniture and electronics, they can be covered by additional coverage.

Auto Insurance: Auto insurance compensates for specific perils mentioned in the policy that occurs involving your vehicle. Damages caused by perils could be bodily injury, fire, theft, collision, and third party liabilities arising from accidents.

There can still be some situations that are not covered in a standard US property insurance policy. It is recommended that one buys separate riders for such events.