Shopping Guide: Life Insurance
Your life insurance plan should be structured to meet your life circumstances (for example, a single person may need less life insurance than a couple or a couple with children).
Utilize the services of trained life insurance professionals. Check if your agent and company are licensed to do business in your state.
An agent is not allowed to be the beneficiary of a life insurance policy the agent has sold you – unless the agent is a family member or a funeral director. Nor is the agent allowed to misrepresent any aspect of the insurance policy being sold or a policy you already own or encourage you to put incorrect information on your application.
Decide what type of insurance policy you want: term, whole life, universal life or a combination of these insurance policies. Make sure you calculate your total premiums for the life of the policy. It is possible to pay more in premiums than the face amount of the policy.
Some insurance policies have an accelerated benefits feature, which is a policy provision that lets the policyholder, under certain conditions, collect part of the death benefit before he or she dies.
Be alert to any promise that you will never have to pay premiums again (the vanishing premium pitch). Also, make sure you are aware of any surrender penalties.
Don’t sign any insurance application that has not been completely and accurately filled in and dated, and make a copy for your files.
Immediately study the insurance policy once you receive it and make sure it’s exactly what you ordered: many life insurance companies will offer a “free-look” (or “right to review”) provision. Take advantage of it.
The policy owner is the only person who can cancel the insurance policy. If premium payments are not being made the insurer will generally send a payment notice before cancellation.
Make your premium payment check to the life insurance company, not the agent.
A failure to pay your premium will cause your life insurance policy to lapse or it could be terminated.
Review your insurance policy periodically. Your insurance needs change during different periods of your life.
Dec 30, 2008
Shopping Guide: Life Insurance
Dec 20, 2008
Home Insurance: Dwelling coverage
Home Insurance: Dwelling coverage
This home insurance coverage provides for the repair or replacement of your damaged or destroyed home and attached structures, such as a deck or garage. Most homeowner policies provide replacement coverage. This insurance coverage pays the actual cost to replace your home up to the limit of your policy. The amount of coverage is generally a percentage of the amount it would cost the home insurance company to completely rebuild your home.
Some policies offer guaranteed replacement cost. Under this policy, the insurance company will pay the full cost to replace your home, even if it is above the policy limit. Before you have a loss, discuss with your agent or company how replacement costs work and the conditions of the insurance policy limit for your specific coverage.
Dec 14, 2008
Some factors that impact your car insurance premiums
Some factors that impact your car insurance premiums
Car insurance premiums are linked to the type of car driven. If you’re buying or leasing a new vehicle, check the auto insurance rates before you make your final choice. For example, SUVs, convertibles and performance vehicles typically cost more to insure.
Safety devices on your vehicle can help reduce your car insurance premiums. If you’re buying or leasing a new vehicle, consider getting one with anti-lock brakes, side air bags, automatic seat belts and daytime running lights.
Anti-theft devices on your vehicle, such as an alarm system and global positioning system – so that your automobile can be located if stolen – can help reduce your premiums.
Where you park your vehicle can also impact premiums. If you have access to an indoor garage or locked parking lot – places that decrease the likelihood that your automobile will be stolen – you may qualify for lower car insurance premiums.
The geographic region in which you live may impact your premiums. For example, areas prone to extreme weather – hail, wind storms, hurricanes, etc. – higher traffic patterns or higher risk of theft may have higher auto insurance rates. If you live in an area prone to extreme weather, check whether your insurance policy includes comprehensive coverage on your vehicle to cover potential damage from storms.
Your driving record – tickets, accidents, DWIs/DUIs (driving while intoxicated / driving under the influence citations) – directly affects your insurance premium.
The number of claims you have previously filed impacts your auto insurance costs. Consider not filing claims for smaller events to avoid premium increases.
The cost of your insurance is linked to your policy’s deductible. The deductible is the amount of money that you agree to pay as part of a claim before your insurer pays the remaining amount toward that claim. For example, if your car incurred $1,000 of damage in an accident and your deductible was $250, you would pay the first $250 and your auto insurer would pay the remaining $750. The higher the deductible, the lower the insurance premium.
Dec 3, 2008
Tips to Help You Lower Your Medical Insurance Premiums
Tips to Help You Lower Your Medical Insurance Premiums
• If you're married and both spouses work at jobs that provide medical insurance, compare these policies and their costs to see which one best fits your needs. Look beyond the monthly amount you must pay and closely evaluate covered services, co‐pay requirements, deductibles and reimbursement levels so that you make the best choice for your family and your pocketbook.
• Stay in‐network when possible, making sure to get referrals and pre‐certifications as required by the plan.
• Keep all receipts for medical services, whether in‐ or out‐of‐network. In the event you exceed your deductible, you might qualify for a tax deduction for out‐of‐pocket medical bills.
• Consider opening a flexible spending account, if your employer offers one, which allows you to set aside pre‐tax dollars for out‐of‐pocket medical expenses.
Nov 22, 2008
Insurance: What is Financial Responsibility?
Insurance: What is Financial Responsibility?
In many states it is illegal to drive any motor vehicle without auto insurance or other proof of financial responsibility. It is also illegal for any motor vehicle owner to allow anyone else to drive the owner's vehicle without financial responsibility (FR) proof. To comply with the FR requirements, individuals must maintain car insurance or get a bond. Some states requires the following for auto insurance coverage:
- Bodily Injury Liability Coverage as well as Property Damage Liability Coverage
- A motor vehicle liability insurance policy. Insurance cards are issued by an insurer to the policyholder for each vehicle insured under a vehicle liability insurance policy
- A certificate of proof of financial responsibility
Nov 14, 2008
Auto Insurance: Some Things You Should Know About Repairs
Auto Insurance: Some Things You Should Know About Repairs
The final choice of repair shop is yours. You may want to use a repair shop the company chooses. However, if you choose a different one, be aware you may have to pay the difference if your body shop’s estimate is higher than the insurance company’s, unless the increase can be justified and agreed upon by all parties.
If you choose to put a brand new part on an older car instead of a salvaged or remanufactured part, you may have to pay the difference in cost.
Check your deductible. If the damage to your car is minor, it may be less than your deductible. For example, if your bumper needs to be repaired and is estimated to cost $199, and you have a $250 deductible, you will be responsible for the entire amount. The insurance company will not owe you or the repair shop anything until the cost goes over $250.
If you have a $250 deductible and the repair estimate is $350, you would pay the first $250 and the insurance company would pay the remaining $100.
The insurance company will assign an adjuster to estimate the damage to the vehicle and how much the company will pay to have it fixed. Again, if the damage is determined to be less than your deductible, you will be responsible for all of the repair amount.
Nov 3, 2008
3 types of car insurance all drivers are required to carry in Delaware
3 types of car insurance all drivers are required to carry in Delaware
1. Bodily Injury Protection
($15,000 - $30,000)
If you are responsible for the injury or death of another person and have minimum coverage, your insurance company will pay:
- Up to $15,000 to one person involved in a single accident
- Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person
($10,000)
If you are responsible for damages to another person’s property and have minimum coverage, your insurance company will pay:
- Up to $10,000 to a person involved in a single accident
($15,000 - $30,000)
Whether you are responsible for the accident or not, your insurance company will pay for the medical expenses and loss of wages for you and your passengers. If you have minimum coverage, your company will pay:
- Up to $15,000 to any one person involved in a single accident
- Up to $30,000 to all people involved in a single accident, with no more than $15,000 to any one person
Don’t Drive Uninsured
Uninsured drivers are against the law and cost other drivers money in higher insurance premiums. Registered vehicles are randomly checked for coverage and insurance companies will notify the state if coverage is dropped. Driving without insurance can cost you a fine, your license plate or your drivers license.
