5 Things Every Life Insurance Policy Holder Needs to Do Now

Posted on May 9, 2012 by admin

Buying life insurance can truly be a long, tedious process.  There are many forms to fill out, many factors to discuss, and there is always the question of pricing.  While the process can scare some people away, truth is life insurance is something that people should want and, ultimately, need.  If you do your homework ahead of time and gather some basic facts about what to look for and do along the way, your process of buying life insurance should be a walk in the park.

The first thing you should do is figure out what and who your insurance policy should be covering.  Every family or individual’s situation is different and life insurance policies mirror that fact.  Whether you’re single, married, married with children, single with children, or perhaps retired, there will be a life insurance plan for you.  The policy you decide on should be able to protect your family, or future family from any debt you may have acquired over the years, or even expenses related to your death.  Once you’ve figured this out you’ll be one step closer to finding the perfect policy for you

The second thing you should do is name both a beneficiary and contingent beneficiary.  These are the people who will receive any benefits you leave after your death.  If you’re able to name a specific beneficiary, rather than leaving everything to your estate, you’ll be able to help and support any family you may have had before your death.  It’s important to name the contingent beneficiary as well because on the rare occasion that your primary beneficiary dies before you, you will want someone in their place.  Having a beneficiary or contingent beneficiary can make the process that precedes death an easier one, and your family will appreciate your thoughts.

The third thing you should do is remember to review your policy minimally every few years, if not every one.  Life comes with many twists and turns so there is a good chance that some things might change over the years.  Things like marriage, the birth of a child, the purchase of a home, or moving to a new one can affect your life insurance policy.  Other things like job change, as well as a promotion can affect it too.  Make sure to go over your policy if any life changes occur; it’s even a good idea to set up an annual calendar.  The only constant in life is change, so make sure you apply this philosophy to your life insurance policy.

The fourth thing you should do is attempt to make valid, positive changes in your life.  Make sure that your cholesterol is low, you could make an effort to quit smoking, try lowering your blood pressure, and get out more.  All of these factors can affect your premium, so if you live a somewhat unhealthy life, you’re going to be charged for it.  Luckily, if your able to conquer any of these obstacles and make positive changes, you can reapply after these improvements.  If you’ve truly made these changes and your insurer sees this there should be no reason why you couldn’t qualify for a better health class and a lower premium.

The last thing you should remember to do in regards to your life insurance policy is to put copies of it with other important documents.  This is a very important thing to remember because without doing it your family may not be able to find your policy or even your insurance provider information after you’ve passed.  Just like naming the beneficiary, providing copies of your policy is one step closer to helping your family through a tough time.

If you’re able to do all of the above information there should be no reason why you and your family could not live happy and confident lives.  The tragic act of death is inevitable, but there are ways to make it more bearable; contact your insurance provider today.

Posted in Life Insurance | Leave a comment

Factors that Affect Health and Life Insurance Coverage

Posted on May 2, 2012 by admin

There are many factors that are added in and evaluated when you’re shopping for both health and life insurance.  These insurance agencies look at a variety of different things when deciding on your monthly premium, and a few of these things you can control.  Unfortunately, there are a few things you can’t control as well, but by knowing these things, you’re able to make a better judgment and decide exactly which place works better for you.

The first thing that both health and life insurance companies look at is your age.  Obviously, if you’re younger than you’re going to be paying less than a person who’s older and vice versa.  This is basically the insurance agency’s way of saying that the younger person is less of a risk than the older person due to the other person’s age and decaying health status.  As unfortunate as this is, it makes sense, so just remember each birthday is more than just an increase in numbers, it’s an increase in your health and life insurance.

Another factor that plays into your health and life insurance premiums is the health history of both you and your family; insurance agencies are the stingiest over this factor.  Some agencies will make the insurance recipient go through a serious of tests (blood or urine), or even have a physical performed on them before they decide what they’d like to charge. Chronic conditions, such as heart disease or cancer, are always red flags for insurance agencies and these commonly affect the price of your premium in a drastic way.

One final thing that health and life insurance agencies like to consider before they decide on your monthly premium are your hobbies and lifestyle choices.  For example, if you’re an avid skydiver, bungee jumper, or racecar driver then you’re more than likely going to be paying quite a bit more on your monthly premiums than a stay-at-home mom, teacher, or secretary.  Lifestyle choices like smoking and drinking are often considered, as well as any other factors that could negatively affect your health.  Basically, anything that could give life and health insurance agencies the inkling that you may be passing away sooner than someone else is reason enough for them to charge you more, so make sure to consider these things when you’re shopping for insurance.  Never lie to your insurance agency, of course, but just be aware to shop around and see whose willing to take a chance on you and your lifestyle!

Posted in Uncategorized | Leave a comment

Common Business Insurance Claims

Posted on April 25, 2012 by admin

Even though making our insurance payments is something that we don’t like to do, it’s important to understand why we have insurance in the first place and that, in the long run, it could end up saving us a lot.  If something does happen, that is when we make a claim to our insurance company in order for them to help us out in our time of need.  Generally, there are three common types of business insurance claims, and luckily, our insurance policies should be able to cover all three.

One common type of insurance claim is those that deal with property damage due to burglary or theft.  This means that if something is taken or broken during a robbery, most insurance companies cover the insured property that was located on your premises.  Your insurance company may be able to replace your keys and lock as well as reimburse you for your covered property and equipment.  Make sure to ask about this and find out the specifics from your designated provider.

Another type on insurance claim is those that deal with fire and its’ associated risks.  Along these lines are lightening, earthquake, storm, explosion, and accidental damage.  The outcome of any of these natural disasters can be devastating and can result in the damage and destruction of your entire business.  Even something as minor as smoke is able is cause significant damage.  This is an important part of your insurance policy, so again, make sure to talk to your designated provider about its specific contents.

One final type of insurance claim is those that deal with public and product liability due to an accident that may have occurred.  While accidents rage from the most minor of mistakes to serious blowups, most insurance policies can provide coverage for the instances you find yourselves stuck in.  For example, if a worker who was using a company product was injured at work, he/she would be covered by the company insurance.  Similarly, some insurance policies take this same coverage and are able to apply it to customers or other third party members as well.  Again, this type of insurance is very important, so make sure to contact your designated provider for specific details.

There is no reason why your business and its employees should not be covered if something bad were to happen, so make sure to find out the specifics about your insurance coverage; it could make all the difference.

Posted in Announcements | Leave a comment

Does My Roommate Need Renter’s Insurance Too?

Posted on April 18, 2012 by admin

Renter’s Insurance can be a tricky subject to tangle with.  Everything depends on your individual policy.  Your roommate’s possessions may or may not be covered, however it is a fact that most policies are strictly made for either single individuals or families, not for unrelated individuals.  More often than not it’s a good idea that both roommates, if unrelated each obtain their own renter’s insurance policy.  That way, if anything were to happen, you can rest assured that both of you things would for sure be covered.  It’s also good because then each individual will know what they have to claim for themselves and not be burdened with paying for someone else’s loss.  Each person will also have their own liability coverage as well.  Even if your insurance provider says that two, unrelated people are allowed to be on one policy together, it still may be smarter to do otherwise.  Doing so will probably save time, money, and stress.

Posted in Property Insurance | Leave a comment

High or Low Deductibles, the Logic Behind Both

Posted on April 11, 2012 by admin

A deductible is the amount of money you pay out of pocket on an insurance claim before your insurance company starts paying the bill.  Your premium is the monthly, quarterly, or yearly bill you receive for having insurance in general. Both of these are discussed and decided upon between you and your insurance company, and it’s important to note that these numbers can be changed at any time.

If, for example, you have a low deductible, which means you pay a minimal amount if anything were to happen to you, your home, or your car, your insurance company would charge you a higher premium because that’s more money out of their pocket for your mistake or misfortune.

If, however, you take the risk of having a high deductible, which means you’re paying a substantial amount in recovery if an accident were to occur, your insurance company would change you a lower premium because they understand that you’re willing to pay for a significant amount of money.

Insurance companies survive based on how well they predict consumer behavior, and higher deductibles directly affect that behavior.  If you are confident enough (or just risky enough) to think that no accidents will be occurring in your future, then you have no reason not to lower your deductible and pocket a little extra money each month.  The only thing insurance holders should be conscience of, though, is if an unfortunate accident does occur, they should have enough money in emergency savings to cover the deductible.  Think wisely in making your decision; yes, higher deductibles mean lower premiums, but if you don’t have that deductible money on hand, your clever plan to pocket some extra cash turns into a disaster and will cost you more money than ever before.

Remember, the purpose of insurance is to insure that you’ll survive financially due to an unforeseen event, so make sure to communicate with your provider to come up with the best plan for you, your family, and your lifestyle.

Posted in Announcements | Leave a comment

When to Drop Collision on Your Auto Insurance

Posted on April 4, 2012 by admin

Collision coverage is the part of your insurance policy that pays to repair any damages to your own vehicle after an at-fault-accident.  While this is seen as a benefit to people who have just started driving or those who might not be the safest, its services also come along with a hefty price tag.  After a while, if the driver has been safe, he/she may think it’s time that they can drop the collision part of their insurance to make it cheaper for them.  While this is a possibility, there are a few things that you should consider before making the call to your insurance provider and dropping that part of your policy altogether.

First, and most obvious, is the fact that dropping your collision coverage comes with a multitude of risks.  What if something happens?  Will I be able to pay cash if I get into an at-fault accident?  If you’re confident in your driving, and have the money available if, god forbid, something did happen, then you can continue making your phone call to your insurance provider.  If not, however, perhaps you should think otherwise and hold off.

Another thing to think about before you drop your collision coverage is whether or not you should adjust your deductible instead.  If you raise your deductible rather than dropping the collision, this means that you still end up dropping money off your monthly bills while maintaining the safe coverage.  You just have to understand, though, that raising your deductible to a new amount means that you’re willing to pay the new set amount if you were to get into an accident.  Again, make sure that you have enough cash saved up to pay for this before you adjust anything; you don’t want to end up hurting yourself in the long run.

One final thing to review before you drop collision coverage is whether or not you’re still making car payments.  If the answer is yes, unfortunately, dropping the coverage is not an option for you right now.  All banks and other creditors require full coverage to protect their investment.  This means that until you’ve finished paying off your car, your stuff with not only your cap payments, but the pricey full collision coverage as well.

When your car is paid off, make sure to analyze the first two points again before making your final decision.  Removing the collision coverage from your call could save you a lot of money, however, taking it off could require even more.

Posted in Auto Insurance | Leave a comment

Towing and Labor Coverage On An Auto Insurance Policy

Posted on March 29, 2012 by admin

Towing and Labor coverage pays the cost of having your vehicle towed if it has been in an accident, or is merely inoperable at any time.  It also covers having it towed to the nearest point of service, and the cost of labor to get your car running again.  Most services under this policy include the changing of a tire, delivery of gasoline, oil, or other faulty parts.  Keep in mind, though, the coverage does not pay for the parts themselves, just the labor for installation.

Some auto insurance companies offer towing and labor coverage as an option you can add to a preexisting comprehensive insurance policy, or as part of an emergency roadside assistance program.  Either way, though, coverage requires extremely affordable monthly payments that would save possibly hundreds of dollars if your car were to breakdown without the policy.  Unless you’re driving a brand new car that is still under warranty from the dealer that would cover towing and labor, it just makes sense to invest in this policy; it could end up saving you hundreds of dollars as well as allowing for peace of mind while out on the road.

Posted in Auto Insurance | Leave a comment

Is it possible to have too much coverage on my home?

Posted on March 21, 2012 by admin

Is it possible to have too much coverage on my home?  I feel that the insurance company is over insuring my home!

Having too much coverage on your home is definitely possible, and unfortunately, something that is not too uncommon.  It all comes down to home inventory.  For example, if you live simply and have few possessions, then your home could be overpriced, leaving you paying more for coverage that you really don’t need.

Another example could be you have a nice home, but still not a lot of possessions, which are something they’re charging you on.  In this case you might want to downgrade to a ‘dwelling insurance policy,’ which makes sure that you’re not paying for certain kinds of coverage that you are never going to use.

To make sure you’re being charged properly, you should go around your house and create an inventory list of anything and everything that you define as valuable, along with their costs.  Collectables and high-end appliances or technology would fall under this category.  These are the items that you would want to replace first is some terrible instance did occur and you were left without a home.

After you arrive at this total, take into consideration how much it will cost to replace your home while maintaining your current lifestyle.  Once you’ve come up with this number, you should then talk to your agent.  It’s possible that they have reached a completely different number through what they would call an educated guess, or perhaps by comparing it to your mortgage.  Your agent is receiving a commission off of the premium you’re paying on your house, so they won’t be losing any sleep if your insurance cost is a little higher than average.

Hopefully, though, this is not the case, and you two are able to decide on a common number which assures you won’t be wasting any money.  They may suggest going a little over, insuring the fact that if an accident did occur that you’d be able to adjust to a new life and home with ease.  This is definitely something to be thought about, but ultimately the decision of the home owner, not the consultant.  As long as you two are able to keep a positive, and honest relationship there is no reason you should be overpaying for your home, possessions, and current lifestyle.

Posted in Property Insurance | Leave a comment

Workers comp insurance- If I’m a small business owner, do I need it?

Posted on March 14, 2012 by admin

Almost every business in the United States that has employees has to handle the problem of workers’ compensation. Most states in the US require employers to purchase this insurance policy to handle their statutory obligations to workers who are injured due to a workplace accident. It does not matter if your business is small or large, handling the expense and effort of meeting those statutory obligations is required, and, in reality, it’s often an affordable benefit that helps protect you and your employees.

So, yes, small business owners too need to provide employees with a worker’s compensation policy that ultimately covers medical expenses, death benefits, lost wages, and vocational rehabilitation.  If, for some reason, your company does not provide employees with worker’s compensation and one of them were to get injured on the job, you could not only be stuck with paying for their injury out of your own pocket, but also end up paying some pricey fines that are regulated by the state.

One thing you must understand is that worker’s compensation policies vary throughout the country.  According to America’s federal system, it is up to each individual state to decide what their rules and regulations over worker’s compensation policies are.  Most state policies state that businesses can purchase their individual policy through an insurance company.  However, as stated above, each state is different, and five states (North Dakota, Ohio, Washington, West Virginia, and Wyoming) require businesses to get coverage through their state-operated funds, which are sometimes called monopoly state funds and these are not private.

Thirteen other states also maintain a state fund, but these states also say that the business has the choice to use either the state fund provided, or take their own route through a private insurance agency.  These states are: Arizona, California, Colorado, Idaho, Maryland, Michigan, Minnesota, Montana, New York, Oklahoma, Oregon, Pennsylvania, and Utah.

As you can tell, worker’s compensations rules and regulations can vary tremendously, but the one thing that stays consistent are the rules established by the National Counsil on Compensation Insurance (NCCI).  This organization helps create policy forms and rules for most of the states in the US.  Let’s face it, more often than not businesses are not going to create their own manuals of rules, so it’s much easier to work with the NCCI, perhaps tweak it up a bit, and use their rules and regulations for your company.

Whether it be ten employees or even just one, as long as you’re paying someone to help you with your business, worker’s compensation is something you have to buy, and more often than not, it’ll be something you’re glad you did.

Posted in Common Questions | Leave a comment

What is a deductible?

Posted on March 8, 2012 by admin

Deductible: The certain amount of money that must be paid out of pocket before an insurer will pay any expenses.  This is usually set as a fixed quantity and is part of most policies covering losses to the policy holder.  The deductible must be paid by the insured before the benefits of the policy can be applied. Deductible amounts vary by plan and can be separated into individual or family deductibles. In general, a family deductible is double an individual deductible, but it can include several members of a family.  Typically, the rule of thumb with deductibles is the higher the deductible, the lower the premium, and vice versa.  Most deductibles are set at amounts like $0, $100, $500, $750, $1,000, and $1,500.

There are a few different situations where deductibles can be used, like in health insurance for example.  Health deductibles are reset once a year on January 1st.  When you are choosing your health insurance policy you should be aware of what benefits are subject to the deductible, and what portion of the cost is covered by the plan once it has been met.  Not all health plans require a deductible; health maintenance organizations (HMOs) typically do not.  A health deductible can also be looked at as an out-of-pocket expense, so this can help you meet your out-of-pocket expense maximum, or cap.  This cap is the amount you need to meet for the insurance company to pay 100% of your health expenses.  A good rule to live by in accordance with heath policy is – if you are healthy – to pick a high deductible to lower your monthly payments.

Car insurance policies also have deductibles as well, and are thought to be highly controllable. This deductible will apply to any accidents or damage that happen to your car.  Damages to cars can be quite pricey, often resulting in hundreds, if not thousands of dollars in repairs.  The benefit of the deductible in this situation is that the car owner will only need to pay for a portion of their damages, and then the insurance company will take care of the rest.  Just like health insurance, in auto insurance most people would like to set their deductibles high in order to receive a low premium.

Lastly are deductions in the business world.  Many businesses are able to create tax deductions, which are expenses that are used to reduce the amount of taxable income that the company has.  These are restricted to specific types of business expenses that must be considered as ordinary and necessary; these may include advertising, meals and entertainment, salaries and wages, and a few others.  All of these deductions must be supported by business records, and must be linked to obtaining an income.

Deductibles are your insurance’s way of sharing the expense of a loss with you, so make sure to understand these thoroughly because they could end up saving you a lot in the end.

Posted in Auto Insurance, Common Questions, Health Insurance, Life Insurance | Leave a comment