A Guide To Understanding Different Insurance Policies

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer agrees to make certain payments to the company. The insurance company agrees to pay a sum of money to a person of your choosing if you die. There are different types of life insurance policies available in market. Here in this article we will provide basic information about some of the most common Insurance Policies.

Insurance is one of the most popular financial instruments that offer savings as well as protection. It is a financial agreement between a policyholder and the insurance company. Taking an insurance policy means the insurer will compensate the policyholder for financial damages occurred to him, against the payment of periodical charges called premiums.

The cost of buying insurance largely depends on the range of coverage and terms of the policy. If a policy covers multiple risk factors, it will be more expensive. Before buying insurance, it is essential to understand its different types, some of which are:

Life insurance: Life insurance policy offers financial indemnity to the beneficiary against the death of the policyholder. Indian insurance companies offer several types of life insurance policies. Life insurance policies are particularly useful for individuals who have dependents or financial liabilities.

Home insurance: This is a type of property insurance that offers financial protection against damage to the building and its contents. Home insurance covers damage due to eventualities such as fire, theft and earthquake. An entire list of such eventualities will be mentioned in the policy disclosure agreement. Home insurance is also called homeowners insurance.

Auto insurance: Since buying auto insurance is a legal requirement in all Indian states, it is also one of the most popular insurance products. Most states also require customers to buy third-party insurance. Third-party insurance ascertains that you have enough finances to pay for damages caused to another person or property. One can also buy collision or comprehensive insurance policies that offer extended coverage. With an ever-increasing number of insurers providing car insurance, it becomes difficult to identify the best. Such situation requires buyers to compare car insurance quotes from different insurers and decide the one that suits them best.

Health insurance: Health insurance provides financial cover against sickness and disability to the policyholder. The Indian government has launched several programs to ensure healthcare facility to low-income families, government officials, veterans and senior citizens. The others may utilize the services of private health insurance providers.

Advantages of Life Insurance

1. Provide financial security to you and your family.
2. Can cover medical, educational, and daily living expenses.
3. Life insurance payouts are not taxable.
4. The best insurance policy can provide liquidity to pay off personal loans or business loans.
5. Life Insurance can help you to retain your Business from the loss of a key employee.
6. Life Insurance can be useful in paying estate taxes, along with other estate settlement amounts.
7. It creates a long-term savings opportunity with a reasonable rate of return.
8. Insurance policy also provides some optional benefits such as critical illness benefits, additional term benefit, accidental death benefit and waiver of premium benefit.
9. Life Insurance helps replace a charitable gift.
10. Insurance gives security to both individuals and businessman.

Read and compare insurance policies carefully. Also, read the list of exclusions and damages that are not covered under the policy, before signing the insurance agreement.

Funeral Financial Services

There are many families who face economical problems and have to worry for their Funeral Financing needs. Due to the rising cost of goods and services, more and more funeral homes and cemeteries are requiring payment in full prior to providing funeral services. Sometimes when people think of their Funeral Insurance and getting back the claim they need to wait for long and additionally, the average interest rate for using a credit card to pay for these services would be 12 – 18% and higher. Furthermore, the paperwork associated with funeral financing and insurance assignments is becoming more complicated and time consuming. This hinders your ability to service your customers. Funeral Financial Services serves people with financial solutions and can assist one in the most professional matter for all their Life Insurance Assignments. Funeral Financial Services are the fastest growing insurance reassignment company in America serving with best Life Insurance Funerals. The company works with funeral homes and cemeteries throughout the country with one simple goal – to provide the most efficient Funeral Financing and professional Funeral Insurance assignment service available. Funeral Financial Services reduces stress at an already difficult time. It provides ability to fund additional items needed at either the funeral home or cemetery without having to come out of pocket.

Funeral Financial Services was the first in the business to offer what are now considered industry standards. Its services are always tailored to ones unique needs. The company is consistently coming up with innovative methods to make Life Insurance Assignments bearable for its customers. It considers its reward when its clients are fully satisfied. At Funeral Financial Services, its customer service is its key to achieving success with the funeral home industry. Apart from best services, the company provides several introductory offers and discounts to its customers. Through Life Insurance Assignments, Funeral Financial Services assists funeral homes and cemeteries by taking the burden of collection away from ones staff. The company increases ones cash flow, reduces bad debt and reduces ones administrative costs.

Employees at Funeral Financial Services, speaks with its customers personally and get an understanding of your situation, goals and objectives. Then it gathers all of the relevant data needed to process ones particular case. It works closely with ones company to process the information for Funeral Insurance as quick as possible in order to get the funds immediately. Thus the company provides best and timely Funeral Financing. The average turn-around time once one faxes the necessary paperwork to Funeral Financial Services is typically 24 hours. Some cases can be approved and funded the same day depending on the insurance company and their policies. Handling the Funeral Insurance assignment process effectively is the key to success. Funeral Financial Services is here to assist one with the all-important insurance assignment process as we strive to make Life Insurance Assignments manageable.
There are many families who face economical problems and have to worry for their Funeral Financing needs. Due to the rising cost of goods and services, more and more funeral homes and cemeteries are requiring payment in full prior to providing funeral services.

Life Insurance Awareness Month

September is observed as the Life Insurance Awareness Month (LIAM) across the country. It serves as an annual reminder to Americans about their life insurance needs, to make them understand the importance of including life insurance in their financial plan and if they already have insurance, to revisit their policy and make sure they have the best possible coverage.

However, there is little to celebrate this year as far as life insurance is concerned. According to the 2010 Life Insurance Ownership Study conducted by the Life Insurance and Market Research Association or LIMRA as it’s more popularly known:

As many as 30 percent (35 million) U.S. households have no life insurance protection at all.
Only 44 percent (58 million) U.S. households have individual life insurance policy, the lowest number in 50 years.
About 11 million households with children less than 18 years of age have no life insurance coverage.

The figures portray a grim picture of America’s life insurance status and that’s not going to change unless there is a concentrated effort through campaigns like LIAM to spread awareness about the necessity of having life insurance protection.

In its seventh year now, LIAM has taken up the challenge of educating the American public about their need for coverage. The initiative is sponsored by a non-profit organization called LIFE in association with over 100 top insurance companies and industry groups in the country.

However, this year marks a deviation from the previous ones as the challenges facing the life insurance industry are much greater. An uncertain job market, failing real estate sector, and an overall depressed economy have put a huge financial strain on an average American family. People already struggling to pay their daily bills have little left over resources to buy life insurance.

According to the LIMRA study, one in four U.S. households depend solely on group life insurance for coverage, which means they will have no coverage if they lose their jobs or quit.

While the reasons for not purchasing life insurance are legitimate, what people fail to see is not having coverage leaves their family just one accident or illness away from a financial catastrophe. If the primary breadwinner was to pass away at this stage, it’ll be nothing short of a financial disaster for his or her family.

Aside from the emotional trauma they will go through, the family will lose its only source of income, might have to suffer the ignominy of losing the family home, may not have sufficient funds for the kids to go to college, and could even struggle to pay for the funeral and other final expenses.

As morbid as that sounds, it’s not far removed from reality for many American families. The study conducted by LIMRA, in fact, reported that four out of 10 households with kids aged 18 years or less admit that they would immediately have trouble taking care of everyday living expenses if the primary breadwinner was to die unexpectedly.

However, there are many reasons other than a poor economy that keeps Americans from making this critical purchase and top amongst these are.

Procrastination: For so many people who can well afford and want life insurance, it’s nothing but inertia and procrastination that keeps them from buying a policy. Getting life insurance remains a �to-do� item in their list that keeps waiting to be ticked off. Weeks turn into months and months into years, but �tomorrow� never comes. What they forget is there is no guarantee there will be a �tomorrow� for them at all and the sooner they secure the financial wellbeing of their family, the more peaceful their �today� will be.

Low Priority: Many Americans prioritize paying off their debts and putting money aside for retirement over getting life insurance. Even though recession has changed the spending habits of Americans and people are saving more to safeguard their future, life insurance does not necessarily figure in their financial goals.

Lack of Awareness: Some people are just not aware of the impact life insurance coverage can have on their lives if the main wage earner of their family was to die prematurely. That’s where initiatives like LIAM are so important in educating people about what life insurance can do for them, how it can secure their financial stability by ensuring debts and mortgages are paid off, there is a regular stream of income coming into the household, and there are sufficient funds to support kids’ education.

Complexity of Products: There are so many life insurance products in the market and sometimes having too much choice can be counter-productive. Besides, life insurance is anything but an easy concept to grasp. More often than not, people need professional help to understand the different life insurance products and what they mean and can get easily overwhelmed by their complexity.

Procedural Hassles: Last but not the least is the fear of going through a long drawn procedure that can take anywhere between three to eight weeks or more. There are forms to fill, health exams to take, documents to furnish, etc. all of which make the process less than fun for consumers.

Avoiding Private Mortgage Insurance

Some lenders require private mortgage insurance, or PMI, when you obtain your mortgage. It can cost you hundreds, even thousands of dollars each year. It is rather easily avoidable, however, by simply making different financial arrangements. Here are a few ways that you can get out of this extra financial burden.

Private mortgage insurance, sometimes also referred to as Lender’s Mortgage Insurance (LMI), is required by law if you borrow more than the necessary 80% of the loan to value (LTV) of the house. Once you go and borrow beyond this 80%, PMI becomes necessary. PMI can range anywhere from two-tenths up to nine-tenths of the total amount of the loan.

Lenders look at loans larger than this value as being a greater risk to themselves. The private mortgage insurance is designed to offset their risk. However, what has actually happened, is that while it makes the lender more comfortable, it can also make it that much harder to get a mortgage because now the payments become larger to pay for the PMI. There are three ways around this problem.

* Make A Larger Down Payment

When you come up with the remaining 20% of the value of the house, you then make it unnecessary to pay the PMI. Simply by putting down this amount, you can save hundreds of dollars each year. Even if you have to borrow the money from a relative, the savings will make it worthwhile if you can produce cash at closing.

* Piggyback Loans

This is a recent feature among lenders to help people have a way around PMI. Instead of taking out one mortgage, you actually take out two. The first one is for 80% of the amount you need. Obviously, if you go more than this, you pay PMI. This becomes your first mortgage.

A second mortgage is taken out at the same time, as a piggyback on top of the other one, typically either for 10%, or even 15%, of the remaining balance. The amount not included in this amount is expected from you as a down payment. These percentages may vary with different lenders, but they will be similar.

* Reduce Amount Owed

Private mortgage insurance was designed to be required only when more than 80% is borrowed. This means that mortgages should contain clauses in them that automatically eliminates this added charge when you get the principal down to 80%. The lender can, however, require you to pay PMI until you actually bring it down to 78%, and you must be current with your payments. (High risk loans may have different terms.) In some mortgages, however, there may be a required period of time to pay the PMI – even if you pass the 80% mark. Still, some lenders may let you talk them into removing it once you do so.

If you already have a mortgage and are paying PMI, it would be worth it to make larger payments if you can just to be rid of it. Once you reach the 80% LTV, PMI can usually be removed soon after.

Advice For Filing An Auto Insurance Claim

We know we need it; it is required, after all. We just hope we never have to use it. Purchasing auto insurance may seem like the difficult part of the process, with all the legalese and fine print; however, if you actually ever need your auto insurance, you’re going to have to file an auto insurance claim. This can be the trickier part, if you aren’t prepared.

Below is some advice for filing an auto insurance claim. Although it’s best to brush up on this advice before you actually need to file an auto insurance claim, you may want to jot this advice down for future reference.

Get Answers

You really should know how much auto insurance you have before you’re involved in an accident; however, if you don’t, find out how much liability coverage you have. Liability coverage is the amount of money you have available to pay for the damages caused by an accident in which you are at fault. The liability insurance can cover vehicle repairs and hospital expenses for the other party, for example.

You also need to know the amount of your deductible for your collision auto insurance coverage, and your comprehensive auto insurance coverage if you have it. Simply put, this is the amount you have to pay before your auto insurance kicks in.

Contact Your Insurance Company

Contact your insurance company, and provide them with your name and address, as well as those of the involved parties, everything pertinent to the accident (date, time, location, damages, etc.), and the names and addresses of any witnesses. Your insurance company will advise you on what further steps to take, and then they will take it from there.

Keep Records

In the meantime, keep records of all paperwork, including repair receipts and hospital visits. Your insurance company may request this documentation later.

4 Things To Remember When Renewing Your Home Contents And Home Buildings Insurance

Each year when our renewal notices come through the post for our home contents insurance and/or home buildings insurance, most of us automatically sign the form and send it back to the insurance company – after all, we already know how much the premiums are going to be. Big financial mistake, and here are 4 reasons why:

Did You Buy Anything New In The Last Year?

If you bought anything new in the last year, say a new television or video recorder, then the value of this new purchase will not be included in the renewal notice you just sent off to the insurance company. Likewise, if you sold anything of value over the last year, and have not informed the insurance company, then you are paying home contents insurance for something you no longer own. Either way, your not paying the right amount of insurance premiums.

Did The Costs Stay Static?

If you have home contents insurance then you are insuring your personal property for the replacement cost of buying the same thing new. On the other hand, part of your home buildings insurance should cover the cost of labour and materials. Now ask yourself, would the cost of replacing the picture hanging in your living room be the same today as it was last year? If the answer is that it would cost you more, tough luck, you’ll only get paid out what you said the cost of replacing it would be! The same can be said of your friendly builder, would he charge you the same for an hour of his time and for his materials today as he would have done last year? If the answer here is no, then you should be expecting to pay him the difference.

Did The Value Of Your Home Stay The Same?

Similar to the above, with your home buildings insurance you need to be asking yourself whether or not the value of your home stayed the same this year as it was last year? You need to be asking yourself this question even if you didn’t do any work to the house – such as building an extension – that would naturally automatically add value to your home.

Is Your House Any Safer Today?

Here the question is, have you done anything to your house over the last year that would mean your home would be considered safer today than last year? For example, did you add any deadlocks to your doors or windows? If so, then there’s a very good chance your home contents insurance premium would be reduced, as the security in your house is a major consideration in assessing your premium (along with the crime rate in your neighbourhood, so you may also want to check and see if this has gone up or down also).

Keep in mind that time stands still for no man. As such, you need to read your home contents insurance and/or home buildings insurance renewal notices very carefully to make sure that they reflect, as accurately as possible, your life today and not your life of yester-year.

Best Life Insurance Quote – How To Recognize It

Rates cannot determine all

The bottom line when it comes to insurance is not the rate. Most rates are incredibly competitive when all of the factors are included. Anyway, what good is a low rate if the company that you are paying a low rate to does not pay when you file a claim? This would make those lower rates look really expensive. To make sure that you get paid when a claim is filed here are some quick tips that will help you select the best company along with the best rate.

Check the company history of complaints

Once a quote is received you may have more than one company to choose from. With the database access capabilities of the internet we can now search complaint records for just about any company in the world. This is especially true with insurance companies since there is a scare of fraud on the part of the insured and the insurer. Search for complaints on a national claims database to see if any of your potential companies has an excessive amount.

Keep in mind that all companies have had complaints at one time or another. Make sure that when you are doing these background checks that you take into account the number of policies that the companies have issued. For example if a company has 100 complaints but has issued over a million policies then it will be quite a bit more reputable than a company that has 25 complaints but that has only issued 13,000 policies. A great reference for checking these complaint ratios is your state insurance department.

If the company has a low amount of complaints it is because it is very likely to pay on any filed claims.

We hope these resources can help you get started and feel much more comfortable in analyzing your quote.

Affordable Student Health Insurance – Why Student Health Insurance Can Be Cheap

Student health insurance can be affordable, and even cheap, if you choose a plan that offers the exact coverage your student needs, and if you understand the coverage your student has. By choosing the coverage your student needs, you won’t have to worry about paying for any medical costs that you know your student will acquire. And, by making sure you thoroughly understand your student’s coverage, you won’t be hit with any surprise costs along the way.

The first step to finding affordable student health insurance is to ask about any health coverage offered to your student by his or her school. Many colleges and universities provide medical services via on-campus clinics to students. These medical services may be available free or at a very low cost – and what’s more affordable than that?

Next, ask about pre-existing conditions. For example, your student may be diabetic; medical care for pre-existing conditions such as diabetes may not be offered through the school. If this is the case, consider purchasing a smaller, additional health insurance policy to cover treatment for diabetes while using the school-provided services for situations such as common colds. This will help keep student health insurance affordable.

Finally, find out everything you possibly can about the student health insurance plan and/or the medical services offered by the school. How much is covered if your student visits the emergency room? Is your student allowed to visit any health care professional, or is there a network of doctors from which he or she must choose? You may think you’ve purchased an affordable student health insurance plan, but if emergency room visits aren’t covered – or very little of the cost is covered – you’ll be faced with a bill that won’t make the student health insurance plan seem so affordable after all.

Know which services are available, which services aren’t, as well as how to obtain each and you’ll find affordable student health insurance.

Be Smart When Choosing Your Car Insurance Provider

Choosing a car insurance provider is not like buying a sandwich or a new pair of shoes. Car insurance is a big commitment, a large expense, and potentially a major influence on your life. Choosing the wrong insurer or benefits package might cause you to pay far more than necessary, or even cost you thousands of dollars in the event of an accident.

First off, use every resource at hand when choosing an insurance provider. Ask your friends what company they use, but remember insurance premiums are highly individualized, and one company that gives someone you know a great deal might not do so for you.

There are dozens of popular internet sites devoted to car insurance advice. Do your research. See what the best options are for you, and follow up on them. Other websites will generate quotes for you from multiple insurers. Using these sites is a great way to see how different companies compare. You’ll save a great deal of money by taking your time and finding the insurance company that offers you the most affordable package.

Almost every reputable company has a toll-free number you can call where you can talk to a representative. Don’t be shy about using these numbers. If you have a question, call and ask. Any company that is worth considering should take the time to help you find out what you need to know. Plus, talking with a representative will give you a taste of how well a particular company treats their customers.

Once you find an insurance provider that offers you a reasonable rate, be sure the company is reputable and the insurance package you are considering is worthwhile. Do a quick internet search and find out what people are saying about the company. Are you finding lots of negative comments? Are they treating their customers unfairly? Be sure the company of your choice has a good reputation. One company might seem like the best option because of its low price, but if they have poor customer service or have a policy of refusing claims, you may not be happy in the long run.

Another important thing to consider when choosing a car insurance provider is what type of insurance you want. Different companies cater to different needs. Some serve people after a bargain. Others serve more demanding customers who are willing to spend more.

Know what your needs are. Are you driving an aging economy car? Then you might not want a full coverage package that costs a lot of money. Consider buying liability-only insurance from a low-cost insurer. Are you driving a brand-new luxury automobile? Then find an upscale insurer that will give you top-to-bottom comprehensive coverage.

Remember, nearly all provinces in Canada legally require drivers to have some form of auto insurance. Insurance is not to be taken lightly. Ignoring it altogether can cause you to get your car impounded, lose your driver’s license or even be thrown in jail.

Taking the time to buy car insurance from a reputable, quality insurance company can potentially save you thousands of dollars and lots of legal trouble.

Be assured for a safe drive

Shopping for car insurance is the only way to save on the car insurance. Car Insurance is the perfect solution for your problem on car theft, accidents etc. People are quite dependent on their vehicles and losing a vehicle by an accident or theft will be a financial loss. Moreover it will affect our day to day activities like office, school, doctor’s appointment etc.

Benefits of Car Insurance Policy

Some insurance policies offer number of standard benefits, while other benefits are available as optional covers in return for an extra premium. Some of the more common Car insurance policy benefits are:
• Windscreen
• Driving other cars
• Medical expenses
• Personal effects
• New car benefits
• Lock replacement

Many auto insurance agencies offers you benefits like less premium, 70% discount on first-rate service (if our recommended garages have not repaired your car), free car servicing (if your car has been repaired by one of our recommended garages). They also provide you additional services like breakdown assistance and motoring protection at minimal price. A car insurance agency controls your car insurance policy from beginning to end.

Nowadays it’s easy to buy your auto insurance online. Online auto insurance is the best option if you want to save your money and time.

Additional Car Insurance policy services include

• Motoring protection
This service pays for personal injuries that you have sustained from the accident and also we pay for injuries that others might have sustained. This service also covers for any kind of property loss. This service also handles any legal technicalities.
• Breakdown assistance
This services provides assistance incase your car breakdown and more often than not at a worst possible time. Complete details of these services are available when you get your car insurance quote or renew your policy online.