Insurance is something that is critical to have in order to protect your assets and your finances. However, there are so many kinds of insurance out there, it can be difficult to know which ones are the best for you, and which are going to be a waste of money at the stage of life you are in. The following is a look at various insurance options:
Life insurance is an investment in yourself and in your family. If you like to live at a certain level, your life insurance policy should leave behind enough money to pay for your family's cost of living to stay at the same level if you suddenly die. If you don't have a good life insurance policy, your family could be left with a mound of debt and suddenly they will need to deal with all the expenses that were attached to you. What about your funeral expenses? A basic funeral costs anywhere from $10,000 on up so you need to make sure your life insurance policy includes enough for your funeral.
Life insurance is one of the best investments you can do for your family. Life insurance will provide financial relief for your family if you suddenly pass away. There are several life insurance policy options available. Depending upon what you need to leave behind for your family, you will want to review all the different life insurance options that are available. Here is a quick guide to life insurance:
Paying for insurance is a necessary evil, you know that you have insurance for both peace of mind and to obey the law, but it can be painful to see what could be a significant portion of your income go out the door every month. What may be most difficult about paying for insurance is that many times there is no direct benefit to you. Until you are in the position where you need to use your policy, it is very easy to feel like you are paying for nothing. With money being so tight, paying more than you need to for insurance is the last thing that you want to do.
One of the easiest ways to reduce the costs of your insurance is to take advantage of the various discounts offered by insurance companies. Too many people do not even check to see if they qualify for discounts, and thus spend hundreds of dollars a year needlessly.
While the amount you will save will vary from policy to policy and is dependant on where you live, what cars you drive, the state of your health, etc. insurance analysts state that by using discounts you save on average about 25% on insurance premiums.
One of the fastest and easiest ways to save money on your insurance, whether it is health insurance, car insurance, etc. is to simply raise your deductible. A deductible is the amount you agree to pay out of pocket before the insurance kicks in. By raising your deductible you are telling the insurance company that you are willing to take more risk. The more risk you take, the less expensive the insurance will be.
Insurance is expensive, but necessary, and one great way to save on your premiums is to pay quarterly rather than month to month.
Insurance companies make their money by charging you a premium for a level of risk that they will assume for you should you have an accident, etc. The premium for the same service can vary depending on who your insurance provider is. One thing remains the same, however, and that is that you have to pay a premium for coverage. Typically a premium is assessed for a period of time. A six month period for your car is typical. Home owner's insurance is typically billed yearly, etc.
One of the best ways to cut your insurance costs is to simply be a safer person. There are certain factors that increase the cost of your insurance, and if you can eliminate those factors yo will save. Let's look at some example.
If you are thinking of buying a home, you need to realize that you are going to purchase homeowner's insurance. Considering the price of houses and apartments, it is safe to say that you are going to be looking to save money wherever you can (including on your homeowner's insurance). There are many ways to reduce the cost and save money on your homeowner's insurance. It is simply a case of planning, doing your research and making sure that you only pay for the coverage that you need. Here are the tips that will show you how to save money on homeowner's insurance-
Take some time to shop around. While it may take some time shopping around it could save you a good sum of money. Start by asking friends and family, check the Yellow Pages or contact your state insurance department. You can also get on the internet and check the National Association of Insurance Commissioners (www.naic.org) which has information to help you choose an insurer in your state, and also shows complaints against insurers. States will often make information available on typical rates charged by major insurers and many states provide the frequency of consumer complaints by company. Prospective buyers should also check consumer guides, insurance agents, companies and online insurance quote services. This can give you an idea of price ranges and tell you which companies have the lowest prices. However insurance experts advise not to just consider price alone. The insurer that you select should offer a fair price and deliver the quality service you would expect if you needed assistance in filing a claim. After determining the best companies for you be sure to "interview" them to see what type of price they can give you and what level of customer service they will provide. Insurance experts also recommend that prospective buyers also check the financial stability of the companies they are considering with rating companies such as A.M. Best (www.ambest.com) and Standard & Poor's (www.standardandpoors.com) and consult consumer magazines.
Finding the right insurance can be time consuming and frustrating. One of the most important questions you should ask yourself is how to get the right amount of insurance for you family. Most people know the value of health insurance but often times don't have sufficient coverage to take care of everyone in their families. Let's take a look at how you can determine what the right amount of health insurance is for you.
If you have ever had to take a trip to the emergency room, then you know that it can cost as much as $2000 just for the visit. That may not include any extra fees that you tack on from them having to take x-rays, and other tests. And to stay over night in the hospital it can run you about $5000; again depending on what the hospital is and what they are treating you for. Even a regular doctor checkup will cost a family without health insurance at least $100 per visit. It's growing more and more difficult for families to find affordable health insurance.
Choosing and insurance provider can be an intimidating task. There are a lot of very important decisions to make when it comes to your health and to the health of your family and you can be that the decision of which your insurance provider will be will have a significant bearing on the kinds of medical options that you will have. While for some the choice of an insurance provider is made for them or is based off of the provider that is chosen by the workplace; others must find their own health insurance provider and the choice is not one to be taken lightly.
Below you will find some helpful tips for choosing your insurance provider. Keep in mind that although these tips cover most of the bases that you will want to consider when choosing your own health insurance provider, there are countless variable when it comes to specific policies.
Introduction
Being under insured can certainly give anyone a lot of anxiety. Insurance is very much a provider of peace of mind and financial security if the unexpected were to occur. There are also some legal issues regarding having sufficient insurance that you need to be aware of. Although there are those that will tell you that there are advantages to cutting back on insurance coverage, you need to decide for yourself whether or not you are underinsured.
Instructions
Insurance is there to protect the policy holder. There will be times when tragedy or serious injury will hit and having insufficient insurance can really mean the difference between receiving and not receiving quality care. Here are some tips for how to ensure that you are not under insured.
Introduction
While there are those who will tell you that it is always better to be over insured rather than under insured, there are also those who will remind you that having the right amount of insurance is even better. There are many of us who have insurance the covers us in only rare situations or at a price that is simply not worth paying.
Instructions
While there are many ways that we can be over insured, below you will find just a few ways that you can prevent this from happening. Ensuring that you are not over insured is really a matter of looking at your insurance policy and evaluating if the price that you are paying for coverage is worth the type of payment you will receive if or when you will use that clause in the policy.
It's no secret that having medical insurance makes it easier to get those medical bills paid and can also speed up the process. So if you don't have insurance then how to the bills get paid. There are thousands of Americans that don't make enough money to afford insurance but at the same time make too much to qualify for things like Medicaid. So it seems that there is a limbo space in between those that can afford insurance and those that qualify for other programs. If you fall into this limbo category then here are some suggestions on how to pay for big medical expenses if you do not have insurance.
"How to pay for big medical expenses if you do not have insurance" »
Catastrophe insurance is something many people think about, but too many people pass up. Just ask those in Southern California who did not have fire insurance how they felt when they saw the wild fires ravaging their cities? The fact of the matter is that the 10 most expensive natural disasters in U.S. history all have occurred in the last decade. These catastrophes have resulted in insurance companies having to cover losses averaging $10 billion each year since 1989, compared with just $2 billion yearly from 1980 to 1988. This means two things: one is that you probably need catastrophe insurance more now than you did in the past, and two, it is going to cost you more.
The insurance industry is raising rates on catastrophe insurance, especially in high risk areas. They are basically saying to the homeowner, If you choose to live here, that's great, but you have to take on more of the risk. So what this means is that if you live where tornadoes, floods, hurricanes, and earthquakes are a regular occurrence, catastrophe insurance is going to cost you more, but will be worth it.
Let's look at an example. A man and woman have no debt, and some money saved for their funeral expenses. They do not have life insurance. When they pass on, their children are able to pay for their funeral, however, they get hit with estate taxes for the large home, and other parts of the estate that they inherit. The huge burden of these taxes forces them to live in near poverty.
These parents in this example thought they had things taken care of with their no debts and money for funeral expenses. What they forgot was that anything their family inherits is taxed. Estate taxes come due nine months after a death. This is not much time if your heirs need to settle a largely illiquid estate. They may owe taxes on a huge property that they can not sell. What then?
Getting the coverage you need in home, life, and health insurance is important for everyone. Having adequate insurance allows you to have coverage you when you need it, saving you from financial hardships that come along with certain life events. When getting insurance, you have to be sure that you get the right policy and the right amount of coverage. By doing this, you not only prepare for possible future events, but you can avoid paying more than necessary.
Home
Unless you pay for your home with cash, you will need to buy homeowner's insurance, since mortgage companies require it so that their investment is covered. When deciding how much coverage to get, there are few things to consider. First, think what your home would cost to replace it. Most people usually base this amount on just the house's value. However, you may want to get an insurance policy that replaces the items in your home as well, especially if you have expensive entertainment items, jewelry, etc. It does cost more, but you may think it's worth the expense.
"Getting the coverage you need in home, life, and health insurance" »
Every family should have a lot of different insurances. Medical insurance, car insurance, home insurance, and more. One insurance every family should have, and many do not have is life insurance.
Life insurance is vital to the financial well being of loved ones, especially dependents after you die. The main reason people purchase life insurance is income replacement. When it comes to buying life insurance, there are several choices and there are huge pricing differences in the market among different companies that are offering the same coverage. Currently, in the United States policies are available from more than 1,500 life insurance companies. The majority of financial planners recommend that each family income provider have no less than ten times their annual income in life insurance.
Buying car insurance can be a frustrating and stressful situation, especially if you are not familiar with common terms and phrases that are often used. There is also different types of insurance coverage and insurance deductibles to be aware of. You can lessen frustration and stress by knowing some of the basic information about buying car insurance.
There are different types of car insurance coverage. Some of the most popular types of car insurance coverage include:
When investing your money it is important to diversify your portfolio. In fact, the more diverse your portfolio, the more likely it becomes that you will continue to make money over the long haul. One of the most critical aspects of diversification is asset allocation. There are several reasons that asset allocation is so important.
The name of the game in asset allocation is to invest your money broadly enough that you will be able to take advantage of any high performing area of the market. Not everything goes up all the time and not everything goes down all at once. However, there is a general trend toward appreciating. This is the reason that people invest in the first place. By using good asset allocation, you will be able to take advantage of the general appreciation of the market while not relying on the appreciation of any particular market at any particular time.
Just about anybody you talk to, will give you an opinion of their good and bad insurance problems. There are about a dozen companies whose heads bob up when people start talking about insurance for their car.
A rule of thumb plan seems to be:
As an educated and responsible adult, you realize there are some steps in good financial planning. Here are 4 areas you should look at to help you succeed.
1. Do a feasibility checkup.
List your assets and determine what the value of each one is.
List your debts with the full amount you owe plus the amount you need to pay monthly. Also find out if there is an early pay off neither fine nor penalty. Separate the principle owed and the interest being paid on each payment. Make a note of the late fee, to encourage on-time payment.
"These are the documents and insurances you need to protect your family financially" »
There are different ways that people protect their assets. Depending on the person will depend on how they protect their assets. One way that people protect their assets is by having insurance. This way they have the comfort to know that their stuff id protected if anything happens. There are other types of insurances that you can get to help you with your personal finances. Here is some information on what insurances have to do with personal finances.
The first thing that insurances have to do with personal finances is that you can get different insurances that can actually be investments. One example of an insurance that has to do with your personal finances is life insurance. Life insurance is a great thing to have. Life insurance can help you have the security of knowing that if something is to happen to you that there is money to take care of your debt and to help pay for your funeral arrangement so others won't have to foot the cost
Purchasing life insurance is a big decision, you spend a lot of money in premiums every month, and unless you continue to spend it, you get nothing for what you spent. And, you never get anything for it, but your family does. So, how do you choose a life insurance company?
The following are some tips for how to choose a life insurance company, if followed you will find a better company, and you will know that your family is safe and that they will be well taken care of if the unthinkable should happen:
Most people know that they should have health insurance, but that is the only type of insurance that they have, and they are not sure what other kind of insurance to get, and when to get it.
The following are some of the kinds of insurance beyond health insurance that you should get and when:
"What kinds of insurance beyond health should you get and when" »
There are several life insurance and financial planning companies out there trying to get your business, the question is not how to find one, but how to choose one. So, the following are some things to consider before choosing a life insurance and financial planning company:
1. Have you heard of the company before? If you have not heard of the company offering to sell you life insurance or financial planning, chances are you should not go with them. Of course you need to evaluate how much you pay attention, tc. However, when you are investing in something like life insurance, it is important to know that the company is legitimate, and not just going to run off with your money. If you have not heard of the company, but you think they are legitimate, then check them out at the Better Business Bureau website. This will give you a lot of insight on how the company treats their employees etc.
"Choosing a life insurance and financial planning company" »
Life insurance is your way of protecting the people in your life that would be at risk of paying for your funeral and expenses. So, when is the right time to buy this protection?
When you are thinking about getting life insurance, it is probably a good time to get it. The earlier you purchase your life insurance the better. It is never to early to plan for the unknowing that could happen.
Having a baby is expensive with insurance, what about if you do not have insurance? What can you do? These are normal thoughts and concerns if you were not ready for having a baby. The happiness you have about your pregnancy should not be greatly affected by the costs. Therefore it is a good idea to have a plan in place to help with the expenses.
The costs that you will need to think about are the costs of the prenatal visits, the ultra sound, the birth, the hospitals stays for you and the baby and the postnatal visits. This can be somewhat pricey even with insurance. These prices do vary with the amount of visits you need, the type of delivery you have and how the postnatal health of you and the baby are. The average cost of a pretty normal pregnancy is around $7000-$15,000. Again this can vary a great deal depending on the circumstances.
Having a baby is expensive with insurance, what about if you do not have insurance? What can you do? These are normal thoughts and concerns if you were not ready for having a baby. The happiness you have about your pregnancy should not be greatly affected by the costs. Therefore it is a good idea to have a plan in place to help with the expenses.
The costs that you will need to think about are the costs of the prenatal visits, the ultra sound, the birth, the hospitals stays for you and the baby and the postnatal visits. This can be somewhat pricey even with insurance. These prices do vary with the amount of visits you need, the type of delivery you have and how the postnatal health of you and the baby are. The average cost of a pretty normal pregnancy is around $7000-$15,000. Again this can vary a great deal depending on the circumstances.
For the standard visit to the Dentist, a few x-rays and maybe a cavity once in awhile, the premiums you pay for dental insurance is worth it.
If the rates are within reason, they should only cost you the same price that the basic services would cost without the insurance you would pay for. This way the price is just covering the cost of standard dental checkups; the benefit of having the insurance is more toward the price of the expenses that are more on the high end, much like cavities, x-rays, abscessed teeth, gum care etc.
For the standard visit to the Dentist, a few x-rays and maybe a cavity once in awhile, the premiums you pay for dental insurance is worth it.
If the rates are within reason, they should only cost you the same price that the basic services would cost without the insurance you would pay for. This way the price is just covering the cost of standard dental checkups; the benefit of having the insurance is more toward the price of the expenses that are more on the high end, much like cavities, x-rays, abscessed teeth, gum care etc.
For the standard visit to the Dentist, a few x-rays and maybe a cavity once in awhile, the premiums you pay for dental insurance is worth it.
If the rates are within reason, they should only cost you the same price that the basic services would cost without the insurance you would pay for. This way the price is just covering the cost of standard dental checkups; the benefit of having the insurance is more toward the price of the expenses that are more on the high end, much like cavities, x-rays, abscessed teeth, gum care etc.
By the time you read this, the President will have signed into law significant restrictions to the Medicaid law. This article describes the opportunity for seniors to take action and protect themselves. These restrictions are intended to stop abuse of the Medicaid system by middle income and even wealthy seniors who think of Medicaid as the last resort for senior insurance. Until now, the Medicaid law has been so liberal, anyone could qualify for Medicaid supported long-term care. For example, a home has been a non-countable asset, so one could own a $10 million home (or an apartment building in which they reside) and still qualify for Medicaid. No more such loopholes in this senior insurance program.
Anyone with more than $500,000 in home equity cannot receive long term care benefits from Medicaid. Additionally, one will be penalized if they have given any type of gift within the last five years (the look-back period was previously three years). The gifts taken into account include college tuition for grandchildren, emergency help for family, Christmas, birthday, wedding and graduation presents, charitable and church donations. In other words, Congress is attempting to insure that the only people who use Medicaid for long term care will be those that normally don't have enough money to give gifts anyway. Use caution making gifts or donations as they will penalize your ability to obtain Medicaid benefits for long term care for the next 5 years. This senior insurance program will no longer be available to many.
The new law starts the penalty period when the senior applies for Medicaid, not when the gift is given. For example, if Mrs. Jones gave a $40,000 donation four years ago (within the five year look-back period) and if Medicaid needs to pay a local long term care facility $4,000 a month, then Medicaid will not make any payments for 10 months. In other words, Medicaid penalizes assistance for the value of the gift. Even if Mrs. Jones is now broke, Medicaid will not provide support until she has been in a long term care facility for 10 months.
Also be aware that nearly every state is tightening their implementation of the general Medicaid rules. Do not automatically assume that an annuity is an exempt asset or that the residence cannot be attached for recovery. These rules are in flux and favor the state, so you must maintain contact with your state agency that administers Medicaid or an Elder Law attorney.
So what should the average senior do? Middle income and wealthy seniors no longer have a substitute for long term care insurance. They cannot rely on the government as their supplier of senior insurance. Of the three choices that have been available for dealing with long term care: a) self-insurance, b) private long term care insurance, c) position assets to collect Medicaid, the list is now down to two options: a) self-insure or b) private long term care insurance. In other words, if you've delayed buying long term care insurance thinking that you had the government as a safety net, that safety net is now gone.
Note that Medicaid was never a good option anyway. Someone with private long term care insurance that can pay "full fare" for long term care gets a nice sunny private room with big windows. The senior on Medicaid gets shoved in an interior room with two other people, no windows. As much as this is illegal or people want to deny it happens, as stated by the National Senior Citizens Law Center: "Many common nursing home practices are illegal. For example, although the Federal Nursing Home Reform Law requires that all residents receive high-quality care, many nursing homes provide lesser care to residents whose care is paid through Medicaid."
Why don't seniors just get private long term care insurance? The most common reason is the expense. But it's a bad excuse because an experienced financial advisor can show you how to keep the cost down or make a one time payment rather than annual payments (using an immediate annuity or a "combo policy," its possible to make one single deposit and avoid annual payments). In some states, insurance companies can provide a return-of-premium option. With that option, if you never use the policy, your heirs get all of your premiums returned. But don't delay. One negative comment in your medical records can preclude you from ever getting insured so get the coverage now.
Many factors affect the premium you will pay for auto insurance. Each is a statistically based risk for a specific population. The higher the risk associated with a person, the more he or she is likely to pay for coverage. We have elaborated on some of the risk factors below, but there are numerous others, including driver's gender, miles driven per year, purpose for using the vehicle (commuting to work, using for work, leisure only), etc.
Factors you CANNOT easily change that affect your car insurance rates:
Age
Statistically, drivers under the age of 25 are at greater risk of being in an accident than those over age 25. Drivers between the ages of 50 and 65 generally have the safest records.
Gender
Women are statistically safer drivers.
Marital Status
A married person will pay less than a single person with an identical driving record. Factors you CAN change that affect your car insurance rates
Geography
Where you live makes a difference. Folks living in areas with little or no traffic are likely to spend less on insurance than those living in congested cities or suburbs because areas with a lot of traffic tend to see more accidents. Some neighborhoods also have a higher rate of vehicle thefts, which can result in a higher premium.
In most cases, private health insurance comes through a person's employer, who picks up the majority of the cost of premiums. However, today many people, who are either self-employed or who work for a company that doesn't offer health insurance, find it necessary to obtain quality affordable health insurance for children.
There are a wide range of plans and offerings of affordable health insurance for children and it's necessary to pick and choose from among the many plans available. For example, if you feel your family may need alternative health options such as massage therapy or acupuncture, you'll want to make sure your plan covers these choices.
Affordable Health Insurance For Children and families.
Another consideration is the cost. Generally, the higher your premiums the lower your deductible. But, don't let the lure of have no insurance coverage persuade you that affordable health insurance for children is something you don't need. That simply isn't the case. The cost of a major hospital visit can vastly exceed any premiums you may have not paid over the past several years.
Here's the good news: with improvements in medical technology and healthier lifestyles, people are living longer. Life expectancy today has increased to 83 years, up from 78 years in 1940 (The Shopper's Guide to Long-term Care Insurance from the National Association of Insurance Commissioners).
However, the longer people live, the greater the chances they will need assistance due to chronic health conditions. Today, about 12.8 million Americans of all ages require some type of long-term care (National Academy on Aging, 1997). This number is expected to climb as the baby boomer generation moves into retirement. Over a lifetime, nearly 50 percent of all people will require some type of long-term care assistance.
One way to pay for some or all of your long-term care expenses is insurance. First introduced in the 1980s, long-term care insurance was originally designed as nursing home insurance. Today's long-term care policies now cover much more. They include home health care, assisted living facility care, adult day care, Alzheimer's facility care, respite care and hospice care.
So how does long-term care insurance work? Long-term care insurance is not health insurance, and long-term care expenses are not covered under private health insurance, Medicare or Medicare supplement policies.
It is now possible to thoroughly research and buy health insurance online. Without health insurance, the smallest of incidents, accidents, or illness can leave you with expensive medical bills that most people would have difficulty paying. Even a short check up at the doctor's office for a sore throat, or minor illness can cost a couple hundred dollars. It's important for everyone to obtain health insurance, no matter how healthy you tend to be- because you simply cannot predict what might happen.
There are many things to consider when you get ready to purchase your insurance, and thankfully, the ability to obtain your insurance online has also enabled us a fast way to compare the prices of many different companies in a very short time. Can you imagine if you had to look up the phone numbers of twenty different insurance companies, then call each one- probably get placed on hold for a few minutes (or more!), and then give each company your information in order to receive a quote as to how much the policy will cost you? This would take hours, if not days, to complete your research on insurance, the different coverage available, and the cost of each.
The internet has brought us high speed search capabilities, and with the ease of typing in a few key phrases, you can learn all about the different coverage available for health insurance, compare the price of many companies- often, you can even find a web site that has already placed the different company's prices in an easy to read chart, so you can compare at a glance!
Since there are many factors that go into determining your auto insurance rates, there are many chances to lower your rates.
If you change jobs and your drive to work changes or you stop working or you work from home, you should contact your insurance company.
If you have a teen driver and they go to school over 100 miles away without a car then you should be able to get a discount.
If you get married and are in your teens or twenties call your insurance company and see about combining your policies.
Take defensive driving if your state allows it for a discount.
See if increasing your comprehsive and collision deductibles will save you a lot of money. You need to compare what you're saving and how much more you will have to pay if you file a claim. For example, if you go from $500 to a $1000 deductible and it lowers your insurance $50 per 6 months then it saves you $100 a year.
Helping the "uninsurable" secure coverage is challenging. Clients who have health problems or have been denied coverage in the past still need life insurance. One option is guaranteed issue life insurance. Given the high risk nature of coverage, few insurers offer it. However with a little preparation and extra effort, you can find the right policy.
Life Insurance Medical Questions
High risk clients need to answer questions about their medical history so that you get the information you need to find the right coverage. Candidates for guaranteed life policies often:
- have permanent health problems
- need coverage to leave a legacy or to provide for final expenses so that their loved ones are left with no debt.
Guaranteed Issue Life
Guaranteed issue policies do not require a physical and preexisting medical conditions usually are not a factor in the application process. Often such applications require only general information, such as name, address, ID number, gender and beneficiary.
Term life insurance rates vary more than most people might imagine. Depending on the life insurance company you choose, you could end up paying a lot higher rates for the same policy.
Surprisingly, many people will shop around for the best price on a toaster or a hotel room but when it comes to picking a term life rate that fits their budget, most don't want to do much searching. Part of the reason for that is probably how difficult it used to be to compare term life insurance rates. For example, you would have to call each life insurance company and deal with their agents. Then, you'd have to do the life insurance comparison yourself.
Term life insurance rates are now online and, based on your needs, you can have them delivered to you all on one form so they are easier to compare. Of course, you still can't compare everything and that's where an independent insurance advisor comes in.
Term Life Insurance Comparison
Independent insurance advisors work with you to get quotes from life insurance companies so that you can choose the term life insurance rate that works within your budget. They aren't working for any one life insurance company so you can trust them to provide you with honest guidance and helpful answers to your questions about quotes, policies, and life insurance companies.
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