Insurance

Travel Insurance

2009-08-22T11:05:00.000-07:00

Travel insurance is designed to protect the traveler’s person and belongings whenever he or she is traveling, whether domestically or internationally, and whether by air, land or sea. Applications for travel insurance are usually done along with the other arrangements made when a person is booking a trip. Travel insurance can cover the traveler being insured for the duration of the trip. There are forms of travel insurance, however, that guarantees continuous protection for the traveler whenever he or she goes on travel for a certain period of time. The latter form of travel insurance is popular among business travelers, who travel frequently and on a regular basis.

Travel insurance is generally included in the list of requirements that a traveler must submit to an embassy of a country in order for him or her to obtain a visa that will grant him or her entry to that particular country. Visa applications are denied if documentation of an active travel insurance policy for the visa applicant is not turned over along with the other required documents.
What does a typical traveler insurance policy cover? Travel insurance answers for costs regarding the insured traveler’s tickets. In the event of a cancellation and the traveler needs to rebook a flight, the provider of the travel insurance policy shoulders the expenses. In case another booking needs to be made because the flight was cut short due to emergency landings or stopovers, or if the flight itself was delayed, the travel insurance policy is also supposed to cover those expenses.
Another risk that travel insurance policies are supposed to cover are incidences of loss or theft of the traveler’s baggage and other possessions during the trip. Losing one’s bags during a flight is not an uncommon incident and is one of the leading reasons for grievances on airline service. A traveler being robbed or being stolen from in his or her hotel room or accommodations while staying abroad is also not unheard of. Travel insurance covers these losses, including the loss or theft of passports, tickets or other travel documents.

Pet Insurance

2009-08-22T11:01:00.000-07:00

What is pet insurance? Simply put, pet insurance is protection that pet owners purchase that is supposed to shield them in case an unexpected illness, especially those requiring specialized treatment, befalls a pet. For a pet owner, availing of a pet insurance plan eliminates the need to answer the question, “Will I shell out money for my pet when he gets really sick, or will I just let the vet put him to sleep?”
Buying a pet insurance is not always an easy financial decision to make. In the course of a pet’s lifetime, a typical pet insurance plan can cost a pet owner as much as USD6,000. Some people might say that it could be just money that is better spent elsewhere.
Another food for thought on the matter of pet insurance is that pet insurance, just like health insurance for humans, have a certain cap within a year. A pet owner can only move within the range of the value of that cap; any amount in excess would be to the account of the pet owner. Also, just like in human health insurance, pet insurance policies have exclusions to coverage. Typical items in this list of exclusions are pre-existing problems and hereditary conditions.

The cost of premiums also gets more and more expensive as the pets get older, and most pet insurance providers do not accept applications or terminate existing plans once the pet turns nine years old. If they do accept applications or renew existing plans for an old pet, there are high surcharges that a pet owner will have to bite to keep the insurance.
And yet another thing that a pet owner must keep in mind regarding pet insurance is the fact that pet insurance only covers unexpected illnesses. Pet owners cannot make claims for preventive veterinary care such as vaccination, or elective veterinary care such as neutering. The rationale pet insurance providers throw around to justify this issue is that preventive and elective veterinary care can be foreseen, and therefore could be budgeted ahead.

Child Insurance

2009-08-22T10:47:00.000-07:00

As a parent, your child’s future and ability to fulfill your child’s dreams and aspirations is always your prime concern.

Today, providing a good education, establishing a professional career or even a modest wedding is expensive. Costs are increasing rapidly. Just imagine how much you will need when your child takes these important steps in life!
Therefore, it is important that you PLAN today to ensure a bright future for your child. Start building your savings today with our Scholar’s Plan so that your child is able to lead a successful life with a secured financial future.
East West Life’s Scholar’s Plan gives you:

Our Scholar’s Plan is designed to secure your child’s future by giving your child (the beneficiary) a lump sum amount on maturity or in case of the payer’s unfortunate demise early in the policy term. The premiums paid by you (less expenses and mortality charges) are invested by the company to provide excellent long-term returns.
Life has innumerable surprises in store for us. Parenthood is wonderful and it is such a stage, when you experience various emotions never thought possible. At the same time, parenthood also brings its own set of apprehensions and worries. What will your child grow up to be in the future? Will his/her future be as secure as you want it to be? Or more importantly, what can you do to make certain that his/her future is hassle–free and secure? Don’t Worry! Now, by planning ahead, you have the ability to answer these questions to your contentment.
East West Life’s Scholar’s Plan is especially designed to enable you to provide for higher education of your child and take care of your future needs in these times of spiraling costs.
This universal life child protection policy can be purchased on the life of the father or mother (i.e. the “Payer” of the policy), to provide for marriage and/or education of their child. The payer can also be a grandparent, brother, sister, real uncle or aunt of the child. This plan provides for the financial well-being of the child while offering cash value growth potential.

Home Insurance

2009-08-22T10:30:00.000-07:00

When you are a home insurance broker or agent you spend a lot of your time chasing good leads that you can sell to. The difference between cold calling and following up on a genuine hot lead is enormous. Even the smoothest salesman will probably agree that a hot lead is ten times easier to close than a cold one. It really comes down more to not losing the sale and closing than to dealing with objections and making good points. The easiest sales are of course those that are initiated by the prospect themselves such as when a customer picks up the phone and calls you because they saw an ad somewhere. The problem is that for many companies, advertising and marketing in newspapers or on television is too expensive when you have to compete with the top dogs of the industry. So for many small or medium sized brokers or agents, generating good leads is still something that needs to be done.
If you are reading this article, chances are you are currently considering buying your home insurance leads online. You may not know exactly how these leads are generated or how good they are? Online home insurance leads are generated by companies who specialize in attracting prospects with a high buying temperature. The internet offers good opportunity for doing this as hundreds thousands of people go online to find home insurance everyday, but don't know where to look. Companies offering home insurance leads run bignetworks of information sites about home insurance thus preselling insurance already. When a customer arrives at one of these sites and are ready to make a buy, they fill out a “get quote” form with their contact information and other criteria. This is the lead that you as an agent or broker can purchase. What is special about these leads, is that they are very fresh and can be contacted within minutes of purchase. The best companies that offer home insurance leads operate in real time, meaning as soon as the information is verified, it is made available to the broker. So it is actually possible to buy a lead and make the call while the prospect is still surfing the website. It goes without saying that these leads convert at a high rate. There are other good benefits from purchasing leads online. One of them is the high degree of customization that these companies offer. First of all there is no need to sign up for an expensive membership or pay a huge deposit in advance. You can simply sign up and log in to the site and begin buying leads. Most companies do not have a minimum purchase, so you can try a few leads first to see if they are worth it. Another benefit is the possibility of purchasing leads from your target group. You can filter the leads you want to receive by many criteria such as age, geography and income. This is nice to do if you specialize in a certain fragment of consumers.

Basics of Life Insurance

2009-08-21T11:21:00.000-07:00

Costs, sum insured, insurance premium, medical tests are a few things that everybody looks out for when they want a life insurance policy. It's not so simple to get a life insurance policy, everything does not only happen on paper with just a sign. Before giving the policy the insurance company arranges for a medical check-up, just to know about the person's current health. It is not mandatory for all the policies as there are some insurance policies that do not require a medical examination. Alternatively you will be asked some health related questions, sounds too simple but make sure that you read between the lines. At times the terms and conditions get neglected. The bonus of having insurance without medical exams is that it prevents you from the tiresome medical tests and you get the policy sooner. To top it you don't even need to experience any painful needles. Anyways let's not only concentrate on the advantages of the Life insurance no exam policies. The first drawback that we can count upon is the sum insured that is often less than that of any regular life insurance policy. Usually the range of the insured sum s restricted from $25,000 to $500,000. It's not only this but the insurance rates are also higher when compared to other policies.
For the ones who want a temporary insurance policy term life insurance is the best. Though they ensure you a financial stability but they do not congregate cash at the end of the term. Looking for more information's about term life insurance cost? You can opt for a life insurance agent or log on to the Internet for the research. These days lot of online quotes are also available but you need to fill a questioner before getting the access to these quotes and term life insurance cost calculators will calculate about the best options that you can have. Some questions that are to be answered are as follows :
# Your state #Date of birth #Gender #Usage of tobacco products #Weight #Height #Length of term #Coverage amount #Return of premium
It is you who has to decide upon the cost of the term life insurance and it is not difficult. It involves a simple calculation. Multiply the exact amount that you earn in a year to 15 and the product is insurance coverage that you need.

Terms of Life Insurance

2009-08-21T11:04:00.000-07:00

We're going to try and address the different types of term life insurance carriers without strange terminology and eye-glazing verbiage. Like we said...we'll try. The term life market is such that the type of insurance carrier isn't so much of a concern but for those that are brave and intrepid enough...let's look at the different types of insurance carriers. Again, term life insurance has really become a commodity over the past decade. This is great news. It really narrows the decision making to cost, amount of coverage, length of term, and the financial strength of your term life insurance carrier. Whether your carrier is structured as a Stock or Mutual carrier becomes less of an issue as the ability of that company to pay benefits during the course of your chosen term. That being said, let's look at the types of carriers.
Stock Life Insurance Company. This is model is your typical insurance company listed on stock exchanges. The stockholders fund the capital to offer life insurance policies to members and expect to make a profit typically in form of dividends. The stockholders are usually not policy holders and the venture is primarily driven by a profit motive. This is not necessarily a negative as your primary concern is to find the best-priced life insurance policy with a strongly-rated insurance carrier through our term life insurance quoting tool. This may be a Stock life insurance company model in the end.
Mutual Life Insurance Company. This model is structured quite differently although it can also be a corporation. With the Mutual Life model, the policy holders essentially own the company. The company is not in business to make a profit. There is a board of directors that manages the affairs of the company but any additional money collected in the form of premium above what is paid out as benefits will be returned to the policy holders as "over-charged" premium.
These are the two large models for life insurance carriers. There is not really a benefit to a person shopping term life insurance between the two models. It really depends on your particular situation (age, amount, length of term) as for a given person, one carrier may be superior over another one (regardless of type of carrier).
Government plans. The government is less of a factor in the term life insurance market as compared to other types of insurance (health, disability, etc). Government usually comes into play where there is little market for private (be it Stock or Mutual) insurers. Health insurance for people over age 65 is a prime example. Health expenses tend to double with each decades of a person's life. Qualifying for health insurance would likely be an issue for many older Americans or the cost would we prohibitively expensive. Life insurance, so far, hasn't fallen under the increasing arm of government.
There are other types of insurance carrier such as Reciprocal and Lloyd's of London but these are not as significant in the term life insurance market. Again, we recommend other factors to consider when purchasing term life insurance than the type of insurance carrier but we aim to provide all the information to you.

Auto Insurance

2009-08-21T10:54:00.000-07:00

The Rio Grande plays an important role in the history between the United States of America and Mexico. This long river forms the fourth largest river body on the planet. After the war between Mexico and the U.S. for possession of Texas ended in an American victory, the Mexicans believed that the natural boundary with Texas would be the Nueces River.
The Americans believed the border to be the Rio Grande. In 1848, the U.S. forces invaded Mexico, and the final settlement was that the 1,000-mile-plus stretch of the Rio Grande would officially form the border between Mexico and Texas.
The Rio Grande offers many possibilities for travel. If you visit a border crossing point like El Paso, Texas, and Mexican counterpart, Ciudad Juarez, you can learn about the history on both sides of the border. Along the Rio Grande, border crossings are used for legitimate travel, business, and recreation by Mexicans and Americans.
The border also presents issues for crimes such as smuggling of drugs and illegal immigrants for the Mexican authorities and the U.S. Border Patrol.
Organizations like the Rio Grande Institute are taking positive steps to preserve the integrity of this important natural border (which is a treasure for Mexico and the U.S.). This river has historical, economic, political, cultural, and environmental significance for both countries.
In one of its efforts, the Rio Grande Institute is working with Mexican and U.S. stakeholders to restore the La Linda Bridge for ecotourism and other limited purposes

Car Insurance

2009-08-21T10:48:00.000-07:00

he cheapest car insurance company is going to change from person to person. This is because automobile insurance quotes are tailored to the individual driver. Some companies will be able to offer a certain driver a better deal than others. This doesn't necessarily mean that this company has the cheapest car insurance across the board; it simply means that for that specific driver they can offer the least expensive policy.
In order to find out which company can offer you the very best deal on automobile insurance you should take your search online and begin requesting quotes. There are two main reasons to take your auto insurance search online.
The first reason is that it is much more efficient. You can get up to five quotes at a time from a multiple quote web site. To get those quotes without using the internet you would have to visit five different car insurance agencies. It takes about twenty minutes to get the quotes online. It would take at least a full day to get those same five quotes from five different agencies.
The second reason to look online for your next policy is that the rate you are charged will be far less online. This is because insurance companies routinely offer their very best rates to their online customers. The reason for this is that the policies cost far less for auto insurance companies to write policies online than by any other method due to the fact that the consumer is doing most of the work.
The work involved is not exactly back breaking labor either. All the consumer will need to do to get a quote is enter some very basic information into an online form. As soon as the information is submitted the quotes will be generated.
The multiple quote site will then return up to five quotes at a time from the companies you have selected. This makes it extremely easy to compare the policies because they will be right in front of you, on your computer screen.
All that is left for the consumer is to choose the cheapest car insurance company and begin to pay the premiums. This can be done online as well, and if the customer is willing to pay for the policy up front they can save even more money as most insurance companies offer an additional discount for doing so

Employment

2009-03-12T03:09:00.000-07:00

The insurance industry had about 2.3 million wage and salary jobs in 2006. Insurance carriers accounted for 62 percent of jobs, while insurance agencies, brokerages, and providers of other insurance-related services accounted for 38 percent of jobs.

The majority of establishments in the insurance industry were small; however, a few large establishments accounted for many of the jobs in this industry. Insurance carriers tend to be large establishments, often employing 250 or more workers, whereas agencies and brokerages tend to be much smaller, frequently employing fewer than 20 workers (chart 1)
Many insurance carriers’ home and regional offices are situated near large urban centers. Insurance workers who deal directly with the public are located throughout the country. Almost all of those working in sales work out of local company offices or independent agencies. Many others in the industry work for independent firms in small cities and towns throughout the country

History of insurance

2009-03-12T03:08:00.002-07:00

In some sense we can say that insurance appears simultaneously with the appearance of human society. We know of two types of economies in human societies: money economies (with markets, money, financial instruments and so on) and non-money or natural economies (without money, markets, financial instruments and so on). The second type is a more ancient form than the first. In such an economy and community, we can see insurance in the form of people helping each other. For example, if a house burns down, the members of the community help build a new one. Should the same thing happen to one's neighbour, the other neighbours must help. Otherwise, neighbours will not receive help in the future. This type of insurance has survived to the present day in some countries where modern money economy with its financial instruments is not widespread (for example countries in the territory of the former Soviet Union).
Turning to insurance in the modern sense (i.e., insurance in a modern money economy, in which insurance is part of the financial sphere), early methods of transferring or distributing risk were practised by Chinese and Babylonian traders as long ago as the 3rd and 2nd millennia BC, respectively.[8] Chinese merchants travelling treacherous river rapids would redistribute their wares across many vessels to limit the loss due to any single vessel's capsizing. The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. If a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender's guarantee to cancel the loan should the shipment be stolen.
Achaemenian monarchs of Iran were the first to insure their people and made it official by registering the insuring process in governmental notary offices. The insurance tradition was performed each year in Norouz (beginning of the Iranian New Year); the heads of different ethnic groups as well as others willing to take part, presented gifts to the monarch. The most important gift was presented during a special ceremony. When a gift was worth more than 10,000 Derrik (Achaemenian gold coin) the issue was registered in a special office. This was advantageous to those who presented such special gifts. For others, the presents were fairly assessed by the confidants of the court. Then the assessment was registered in special offices.
The purpose of registering was that whenever the person who presented the gift registered by the court was in trouble, the monarch and the court would help him. Jahez, a historian and writer, writes in one of his books on ancient Iran: "[W]henever the owner of the present is in trouble or wants to construct a building, set up a feast, have his children married, etc. the one in charge of this in the court would check the registration. If the registered amount exceeded 10,000 Derrik, he or she would receive an amount of twice as much."[1]
A thousand years later, the inhabitants of Rhodes invented the concept of the 'general average'. Merchants whose goods were being shipped together would pay a proportionally divided premium which would be used to reimburse any merchant whose goods were jettisoned during storm or sinkage.
The Greeks and Romans introduced the origins of health and life insurance c. 600 AD when they organized guilds called "benevolent societies" which cared for the families and paid funeral expenses of members upon death. Guilds in the Middle Ages served a similar purpose. The Talmud deals with several aspects of insuring goods. Before insurance was established in the late 17th century, "friendly societies" existed in England, in which people donated amounts of money to a general sum that could be used for emergencies.
Separate insurance contracts (i.e., insurance policies not bundled with loans or other kinds of contracts) were invented in Genoa in the 14th century, as were insurance pools backed by pledges of landed estates. These new insurance contracts allowed insurance to be separated from investment, a separation of roles that first proved useful in marine insurance. Insurance became far more sophisticated in post-Renaissance Europe, and specialized varieties developed.
Toward the end of the seventeenth century, London's growing importance as a centre for trade increased demand for marine insurance. In the late 1680s, Edward Lloyd opened a coffee house that became a popular haunt of ship owners, merchants, and ships’ captains, and thereby a reliable source of the latest shipping news. It became the meeting place for parties wishing to insure cargoes and ships, and those willing to underwrite such ventures. Today, Lloyd's of London remains the leading market (note that it is not an insurance company) for marine and other specialist types of insurance, but it works rather differently than the more familiar kinds of insurance.
Insurance as we know it today can be traced to the Great Fire of London, which in 1666 devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings. In 1680, he established England's first fire insurance company, "The Fire Office," to insure brick and frame homes.
The first insurance company in the United States underwrote fire insurance and was formed in Charles Town (modern-day Charleston), South Carolina, in 1732. Benjamin Franklin helped to popularize and make standard the practice of insurance, particularly against fire in the form of perpetual insurance. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. Franklin's company was the first to make contributions toward fire prevention. Not only did his company warn against certain fire hazards, it refused to insure certain buildings where the risk of fire was too great, such as all wooden houses. In the United States, regulation of the insurance industry is highly Balkanized, with primary responsibility assumed by individual state insurance departments. Whereas insurance markets have become centralized nationally and internationally, state insurance commissioners operate individually, though at times in concert through a national insurance commissioners' organization. In recent years, some have called for a dual state and federal regulatory system (commonly referred to as the Optional federal charter (OFC)) for insurance similar to that which oversees state banks and national banks.

Health Insurance

2009-03-12T03:08:00.001-07:00

It is a requirement that applicants must show that they are in possession of adequate and valid health insurance before issuance of visas to Norway. This is a requirement for issuance of visas in all Schengen countries.
The health insurance must cover expenses in connection with repatriation due to medical reasons, medical expenses and emergency hospitalisation. The insurance policy must be valid for all Schengen countries, and the minimum coverage must be 30.000 EURO.
The documents of the valid insurance must be brought to the Embassy at the time of endorsement of the visa. Thus, it is not a demand that the insurance is presented when applying for a visa.
As of now, there are at least 14 companies offering an insurance, which covers the requirements, see attached list. There might be other companies that offer the specific Schengen health insurance that the Embassy is not aware of. Applicants may use any insurance company, if this company can offer an insurance that fulfil the specified requirements.

What Life Insurance Is ?

2009-03-12T03:07:00.001-07:00

Life Insurance

Life Insurance is an agreement between an insurer and a policy payer in which the policy payer, which is usually the insured, is ensured to have his beneficiary or beneficiaries paid a death benefit by the insurer in the event of his death. The policy payer will gradually pay the benefit through payment of premium. This premium is either paid on a monthly basis or on lump sums. Life policies determine the coverage of the insured person’s life. The contract between the policy owner and the insurer limits the events that are covered by life policy. A death of an insured is the usual event covered by insurance. Some other events that are included in the life policy are sickness, accidents, and untimely deaths.

The stipulations of an insurance contract normally limit the obligations and liability of the insurer to the policy payer. Exclusions are written off in the contract to delimit the coverage of the life insurance policy purchased by a policy owner.

Life-based insurance contracts are classified in two: protection insurance and investment insurance. Term life insurance is an example of protection insurance policy. In this insurance, only a specified event and term is covered by the insurance policy. In the occurrence of the specified event, the beneficiaries of the insured will be paid the insurance claims. Whole life insurance is an example of investment insurance. In this policy, the insured will be covered by insurance throughout his lifetime. In the event of his demise, the beneficiaries will be paid death benefit.

The individuals that concern insurance contracts include the insurer, policy owner, the insured, and his beneficiaries. The insurer is the party that will pay death benefits to the beneficiaries of the insured in the event of the insured’s death. The policy owner is most oftentimes also the insured person. However, in certain cases, the policy owner is only the purchaser of the insurance, and the insured is a different person from the policy payer. For example, a wife buys insurance for her husband. The husband is the insured person, while the wife is the policy payer, since she is the person responsible for paying the monthly insurance premiums. The beneficiaries will receive the death benefits only in the demise of the husband – the insured person. Beneficiaries are usually the dependents of the insured who will receive insurance claims at the occurrence of the death of the insured. Beneficiaries may either be individuals or organizations.

Generally, the cost of a life insurance for a policy payer will be based on the insurance company’s calculation of insurance policy prices considering altogether the funding of insurance claims to be paid, the administrative costs, and the profit for insuring a person. The price of the insurance is normally based on mortality tables that are computed by actuaries. These actuaries are the ones responsible for the calculation of these tables with the use of actuarial science that is based on probability and statistics. Life expectancies are also essential to computation of insurance prices.

The occurrence of the insured’s death will have his beneficiaries be able to receive the death benefits upon their presentation of proof of death. Life insurance companies typically require death certificates and insurer’s claims before they pay the beneficiaries the insurance benefit. In some cases, insurers investigate on a suspicious death of the insured to determine if they are obligated to pay the death benefits to beneficiaries

Why You Need Life Insurance

2009-03-12T03:06:00.000-07:00

Why You Need Life Insurance

If you have a spouse or a family, term life insurance deserves some serious consideration. You will definitely want your family to be protected and taken care of in the case that you should pass away, especially if you are the breadwinner of the household. Although term life insurance builds no cash value over the period of time you pay the premium, it can provide significant coverage for your loved ones in the event of your death. The funds received from the death benefit of your term life insurance plan can help cover the costs of your funeral, cover leftover medical bills, and help provide a financial cushion during your family’s time of loss.

Term life insurance is, in fact, the simplest form of life insurance there is. It was designed to provide temporary and affordable life insurance protection for those families or individuals on a limited budget. This type of insurance is quite affordable with the typical cost for a healthy 30-year-old nonsmoking male is about $2,500 per year for about $50,000 in death benefits. Of course, as your age increases, your premium will also increase, but only after the term expires. With term life insurance, you will pay the set premium you originally agreed upon for the lifetime of the term.

Many families who are attempting to pay off their mortgages and other debt will invest in term life insurance policies as additional back up should anything happen to one spouse during this time. With today’s economy, most households are barely able to afford daily expenses on two incomes, so life insurance protection is essential should one of the incomes be lost due to death. Another reason many people invest in term life insurance is to make sure that their spouse and children are taken care of. Many parents opt for term life insurance for the child-raising years and let the term expire once the kids are off to college.

Term life insurance, although extremely beneficial should you pass away and leave your family without your income, is not intended as a long-term investment since it does not accumulate any cash value. The primary use of term life insurance is to cover financial responsibilities of the policyholder in the event of his or her death. The money issued by the insurance policy can cover funeral costs, take care of any outstanding bills, or even supplement the family’s income during their time of adjustment.

If you are a healthy individual without any current form of life insurance, you should definitely think about purchasing a term life insurance policy. This will help give you the peace of mind that your family and loved ones will be taken care of should you pass away and leave them without your income. Although the loss of a family member can be devastating, why add the stress of additional financial burdens such as your extended debt, funeral expenses, and loss of income on top of it? With term life insurance, you can rest assured that your family will receive the benefits if you die within the lifetime of your policy.

The Benefits of Life Insurance

2009-03-12T03:05:00.002-07:00

The Benefits of Life Insurance

Many people never think about taking out life insurance, as most people don’t like to think that they might suffer an untimely death. But the reality is that life us unpredictable, and if you do die prematurely, how will your family cope financially?
Life insurance offers your family financial protection, so that they don’t have to deal with financial troubles on top of the grief of losing you. If you have dependents, or a large debt, such as a mortgage, you should seriously consider taking out life insurance so that you ensure that your loved ones won’t be faced with financial difficulties.

The benefits of life insurance are numerous – it can be used to pay any death taxes, be put towards legal and funeral costs, pay off any existing debts or be set up in a trust fund style to pay for your children’s continuing education costs.
Some life insurance policies also offer a guaranteed value, meaning that if you choose to cancel the policy for whatever reason, the guaranteed value will be returned to you. This guaranteed value is also sometimes paid to your beneficiary on top of the policy value, depending on the type of policy you originally took out.
Taking out life insurance while you’re young also has its benefits. The premiums will be lower, and assuming you continue to make your regular payments, you’re covered for life, even if you develop a condition or illness that might have excluded you from taking out coverage later in life. It’s much easier to get life insurance coverage when you’re younger, and for a lower premium, as you’re far less likely to be suffering from anything that may either increase or exclude you from taking out a policy.

Of course, it’s important to have the right cover for your situation. It is wise to talk to a financial advisor or planner before taking out any life insurance coverage to ensure that you and your family will be adequately covered in the event of your death.

Both Permanent Life Insurance and Term Life Insurance policies are offered by most insurance companies. Permanent life insurance generally requires lower premium payments, and your beneficiary is guaranteed payment if you should die. Term life insurance only covers a specific period of time, usually 5, 10, 20 or 30 years. If the policy lapses without renewal, your beneficiary will not receive any benefit if you die during the lapsed period.

It is important that you take the time to understand exactly what your insurance needs are before taking out a policy. Often, a combination of both permanent and term life insurance is needed to ensure adequate coverage for your family.
Life insurance provides peace of mind, for both you and your family. While nobody ever wants to think about dying early, it is an important thing to consider when you have financial responsibilities and/or dependents who rely on your income. If you are insured correctly, your family can focus on dealing with your death, rather than worrying about where they are going to find the money to pay for their day to day living on top of your funeral and other emergency expenses

What Kind of Health Insurance is Best for You?

2009-03-12T03:05:00.001-07:00

Health Insurance

When it comes to choosing health insurance, many of us just pick the one that will take the smallest bite out of our paycheck each month. Choosing health insurance on the basis of premium cost is one way to go about making a choice, but it could end up costing you a lot in the long run. Before you make a decision that will affect you and your family’s health care for years to come, take the time to research your options and choose the one that will offer the benefits that your family needs.

There are a number of different types of health insurance, each suited to a particular need or type of use. Choosing the right one is a matter of knowing the kind of coverage that will suit your family’s needs the best.

Indemnity Insurance
Indemnity insurance, also known as fee-for-service health insurance, is the oldest type of health insurance. The insurance company establishes a schedule of fees that lists how much they will pay providers for various procedures. The subscriber – that’s you – is free to choose from any doctor they want, including specialists, to provide the medical care that you want. The doctor bills the insurance company, who pays the amount set out in the fee schedule. You’re then responsible to pay the rest out of your pocket. Usually, you’ll be responsible for a deductible – an amount you pay out of pocket each year before the insurance coverage kicks in – and may also have to pay a co-pay when you visit the doctor. Indemnity insurance offers you the most flexibility, but in general, you’ll pay far more for that flexibility.

Preferred Provider Organizations
Preferred Provider organizations, or PPOs, are networks of doctors and health care providers who agree to accept certain fees for certain services. With a PPO, you choose a doctor or medical provider from within the network when you need medical attention and your cost will be lower than if you choose a doctor who is not a part of the network. You don’t need a referral to access specialist services, and don’t usually have the advantage of having a primary care physician to manage your health needs. Your out of pocket expenses will include a deductible that you have to meet before insurance coverage kicks in and a co-pay when you visit a doctor or provider. If you choose a doctor outside the network, you’ll also end up paying the difference between what the plan will cover and what the doctor charges, as well as, typically, a higher co-pay.

Health Maintenance Organizations
HMOs, sometimes called managed care organizations, first came into being in the mid-1970s. They operate on the principle that prevention is the first step to good health. In order to ensure that patients get necessary care, HMOs generally require that you choose a primary care physician who manages all of your care. Your primary care physician will make referrals to specialists if needed, and you always have the option of seeking a second opinion. The HMO is generally the least expensive type of insurance as far as out of pocket expenses are concerned. In generally, your financial responsibility will be confined to a co-pay whenever you visit the doctor. HMOs encourage annual physicals, eye exams and screening tests in the name of preventing illnesses and early diagnosis and treatment.

Those are the major options. Others include discount health plans, long term care plans and point of service plans. Each has its own advantages and disadvantages, so shop wisely before deciding on one coverage.

Unemployed Health Insurance

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If change jobs or become unemployed, can I bring my coverage with me?

If you switch employers, you have the right to carry your group health insurance coverage with you to a new job for up to 18 months under the Consolidated Omnibus Budget Reconciliation Act (COBRA).

You must pay the full premium, but at group rates that are far cheaper than the individual rates you would pay for similar coverage. Health insurance under COBRA is available if you are in the following situations:

1. You leave a company and become unemployed or self-employed for up to 18 months.

2. You are a widow or widower or child of an employee who dies while working for the same company for three years or more.

3. You are the divorced spouse or child of an employee who has left the company he or she was employed at for at least three years.

4. You are the child of an employee who left a job and have not yet reached age 23.

NOTE: If you need COBRA benefits, you must fill out the appropriate forms from your employer's benefits department within 60 days of leaving your job. If you do not act within that time, you may be denied coverage.

One of the biggest concerns self-employed workers often have is locating, as well as being able to afford, health insurance for to help cover their medical expenses. Health insurance rates and deductibles tend to be high for the self-employed worker, leaving many self-employed workers without medical coverage in which they could afford. The following paragraphs will discuss some of the health insurance options available for self-employed workers.

Please keep in mind that some of the laws regarding health insurance for the self-employed will vary from state to state. However, COBRA, or Consolidated Omnibus Budget Reconciliation Act, is a federal law. It simply requires any company employing more than 20 employees to permit those terminating their employment to continue their current health insurance coverage for a minimum of 18 months. This is good news for employees leaving a company in order to pursue self-employment. COBRA will enable these workers ample time to find other health insurance arrangements to best meet their individual needs.

One option a person pursuing a self-employed career can consider for health insurance is being added to a spouse's policy. If a spouse is gainfully employed, by a company that provides health insurance options, it is very likely it would be less expensive to be added to that policy, as opposed to trying to find one independently. Some companies are even offering health insurance coverage for domestic partners.

If a self-employed worker does not have a spouse or a domestic partner, there are other options they can consider when it comes to health insurance options. Some states now allow self-employed works to present themselves as a "group of one", thus purchase a health insurance policy at group rates. The premiums for "groups of one" are most generally less expensive than premiums on a typical individual policy.

Important Decision for Health Insurance

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Health Insurance Decision

Health insurance may be one of the most important kinds of insurance. For many Americans, a really bad accident or illness can put you in the hospital for months, leaving you and your family in debt for the next 20 years from rising costs of doctors, hospitals, drug companies, and medical laboratories.

You are forced to rely on either the good fortune of not getting ill or injured, or insure your future and purchase health insurance. Chances are eventually you will need the services of a physician and a stay in the hospital.

There are several options available in which you may acquire heath insurance including individual policies, group coverage, and government benefits.

You can purchase an individual insurance policy either directly from an insurance provider or through agents and brokers. Unfortunately purchasing individual or family insurance policies can be highly expensive. Some applicants with significant health problems will find that they might not be able to obtain an insurance policy, and if they are successful it is likely to be filled with many exclusions and restrictions.

Group insurance policies are sold to an organization of people who share a common interest. The organization may be a corporation, union, trade association, club, religious society, or any other identifiable collection of people an insurance company is willing to recognize as a group.

The main benefit of purchasing group policies is that you can usually get a premium rate because the group has power in numbers. When purchasing health insurance in a group, preexisting conditions are likely to be covered. Many health insurance policies will exclude identified medical conditions that existed prior to the health insurance going into effect, referred to as preexisting conditions.

Often there preexisting condition make it impossible for certain people to obtain a health insurance policy. Often there is only one way around such a problem. Somehow join a group that is large enough to have negotiated a concession from the insurance carrier whereby the company gives up the right to exclude such preexisting conditions. This concession is the difference between obtaining coverage or risking health as a member of the uninsured.

Many health insurance companies require a close look into the health of an individual applicant during the underwriting of the application. This usually includes a complete physical examination. If you are unfortunate and have poor health, you should be aware that group members are often able to obtain insurance without this detailed investigation into their health.

There is also a large negotiating power of a group, the bigger the better. Group members often allow members to receive better total benefits at a lower rate. This not only refers to premiums but also with regard to expenses that individuals must pay themselves.

Groups pay a lower rate overall, and a lower deductible means less money out of your pocket should you have to file a claim.

It doesn’t matter whether you purchase group or individual insurance, the options you have regarding the different types of health insurance are generally the same. These types include traditional health insurance, health maintenance organizations (HMOs), and preferred provider organizations (PPOs)

Health Insurance Plans

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Health Insurance Plans

Of the different types of managed care health plans available in the United States, Fee-for-Service (FFS) plans are more similar to traditional health insurance than any other plan type. More so than other managed care options, the FFS plan provides a high degree of freedom and flexibility for policy owners. FFS plans include an extensive provider network that may cover the entire country, but policy owners can opt to visit non-network providers.

How does an FFS Plan Work?

Owners of an FFS policy pay a fairly low monthly premium, and have virtually unrestricted choice when it comes to selecting doctors and specialists to visit. However, each visit requires payment of a co-pay fee that typically amounts to approximately 20% of the cost of the visit. The insurance company pays the remaining 80% of the fee.

In addition to premiums and co-pays, the FFS plan also includes a yearly deductible that does not carry over from year to year. The average FFS plan has an individual deduction of approximately $250, with a family deduction of $500.

In addition, most FFS plans also place a cap on how much a policy holder must pay in out-of-pocket expenses each year. For example, if your cap is $1,000, your insurance carrier will pay 100% of your medical expenses (as long as they are among those covered) once you hit the cap of $1,000 (which includes co-pays but not necessarily your deductible) in any given year.

What’s covered by an FFS Plan?

There are two main types of FFS plans, and each covers different types of medical expenses (similar to traditional non-managed care insurance).

Basic FFS Plans cover doctor’s visits, in-patient hospital procedures, surgery, and related healthcare visits. Some plans may also cover out-patient hospital procedures and diagnostic procedures.

Major Medical Plans cover expenses relating to chronic illnesses

Comprehensive Plans combine Basic and Major Medical Plans to provide complete coverage in the same policy.

Similar to most other managed care plans, alternative treatments such as homeopathy and acupuncture are typically not covered by an FFS plan. One major feature of FFS plans, however, is that preventative healthcare visits and procedures are not covered. This includes routine health check-ups, vaccinations, and well-woman and well-baby visits among other things.

Who should use an FFS Plan?

Of all the managed healthcare plans, FFS plans provide the most flexibility and the greatest degree of consumer choice. This aspect of the FFS plan makes them particularly popular with all types of people.

However, this flexibility comes at the price of co-pays and deductibles being included in the costs of the plan. This in turn means that FFS plans can quickly become expensive for people who use healthcare facilities often, and for people who like to focus on preventative healthcare (since preventative visits are not covered at all).

In short, FFS plans are most suitable for people who rarely visit doctors or specialists and who are normally in good health, but want health insurance to provide some security in case they need medical care due to future accident or unexpected illness. These plans are much less suitable for families with children, as children tend to need more frequent medical attention, and a family may incur considerable out-of-pocket expenses before reaching the cap each year.

Protecting yourself with a Life Insurance

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Protecting yourself

There are many ways that one can protect oneself financially. People can always store money in banks to save them or one can also just try to accumulate as much wealth as possible. While these possibilities are good in themselves there is a far easier way to make sure that your family is protected as much as possible financially after you pass on. The big problem that people are afraid of these days is dying and leaving their loved ones with the enormous burden of trying to take care of the unfinished business that you have left when you died. Leaving your family with so many financial issues to deal with is probably one of the worst things that one can do for their loved ones. It is for this reason that it is important to purchase a life insurance policy.

A life insurance policy is the contract of insurance between the insured individual and the insurer, which is usually an insurance company. Under a life insurance policy, the insurer undertakes to pay the insured a certain amount of money upon the occurrence of an event insured against. A person usually purchases a life insurance policy in order t protect themselves financially from the happening of something that could cost them their life. In a way, people purchase them in order to get some security when this event prevents them from being able to earn a living. There are times for example when a person acquires a terminal disease. A person who does not have a life insurance policy will have many problems to deal with, the terminal illness merely being one of them. Upon his death, the family members left behind would have to take care of the funeral expenses and hospital expenses that the person would have left behind. In cases, of sudden death, it would even be much more difficult since the family would not be able to prepare for the sudden loss and the sudden reality of having to face many payments at the state of grief. A life insurance policy protects the family from all of that. With a life insurance policy, the family will have less problems to deal with and could therefore focus on grieving for the loss of a loved one. The proceeds from a life insurance policy usually cover a lot of the miscellaneous expenses that the family would have to pay at that time. The funeral expenses would be taken care of and some of the proceeds will allow the family members to have enough money to be able to adjust to the loss of one of their own.

There are many companies these days that offer life insurance policies. People need to know that it is important to understand the policies in order to not be victimized by technicalities and procedural problems. A life insurance policy is there to protect first and foremost the insured and his family. It is still a business however, and some of those who offer may not be as good as others. It is therefore, very important to purchase a life insurance policy from reputable insurers who will honor the contracts faithfully.

Life Insurance Summary

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Life Insurance Summary

Term life insurance

Term life insurance is a pure risk type of insurance that builds no cash value for premium payments. The premiums for this type of insurance generally increase each year as the insured person gets older. This is designed for the purpose of covering temporary insurance needs like loan payments, costs of education, and funeral costs. Term life insurance quotes are typically lower than any other type of insurance because term life insurance covers an insured person for only a specified term of coverage. Whole life insurance, on the other hand, covers the whole life of a person and assures the insured that his beneficiaries will be paid a death benefit anytime he dies within his lifetime.

Term life insurance is ideally purchased for the purpose of covering debts, business insurance, or check replacements to guarantee that the beneficiaries of the insured will still be secured with financial resources upon the death of the insured individual. This is also purchased to secure the needs that will be gone even before the insured’s death.

Life insurance companies commonly base their insurance premiums on the risks of insuring a person. This is also the same reason why the quotes of term life insurance increase as the insured individual’s age increase. The probability that a person will die at any given point in time increases in proportion with the person’s increase in age. The older a person gets, the more likely his death is to come. The aforementioned are the reasons why term life insurance quotes are higher than whole life insurance quotes.

Term life insurance on average has only one-year-term coverage. People, however, are not very much inclined to purchasing insurance policies that increase prices rapidly. To address this, life insurance companies have created policies that cover longer terms, say 10 or 20 years. 10-year or 20-year term life insurance has initial premiums that are stable in the mentioned period. Necessary increases in premiums are done only when these terms elapse. The policy owner is also given the option to renew or drop the insurance.

Causes of Death and Term Life Insurance

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Causes of Death and Term Life Insurance

There are many reasons to buy life insurance, but most people make the investment to make sure their loved ones are taken care of in the midst of tragedy. Though few want to consider an untimely death, these delicate issues need to be tackled while someone is buying term life insurance.

Many term life insurance policies have special provisions in place for deaths not caused by medical complications or natural causes. Those who enter into these contracts need to be aware of what situations could keep their family from collecting benefits and what riders could offer them more protection.

Suicide Provisions

Suicide is a sad and terrible event for any family. The pain of the loss is amplified by the many questions the act raises. In this time of sorrow, many families may need the help a life insurance plan can provide.

Most companies write suicide clauses into plan contracts. Generally, this rider states that the plan must have been active for two years prior to the date of death in order for the beneficiaries to collect benefits. If that amount of time has not passed, the policy is voided and the money is usually forfeited.

Foul Play

Many insurance contracts also reserve the right to withhold claims because of foul play. If the death of the insured was suspect, the insurance company may wait to fulfill the terms of the policy until an investigation has been performed.

This may seem like something out of a movie, but sadly, murders for insurance money have occurred in real life. If there is any possibility that the beneficiary has played a role in the death of the policyholder, they can be denied their payout.

Insurers use the evidence of police and governmental investigations and their own researchers to make a decision on these claims. Some contracts even give the insurer the right of denial of claims if the beneficiary has not been charged with a crime.

Accidental Death Riders

Most term life insurance policies cover all types of accidental death, but some have extra accident riders. These clauses allow the applicant to request more death benefits go to the beneficiary if their death is the result of an accident. This may cause a rise in the cost of the premium, but not as much as raising the benefit for other causes of death.

The insurance company is responsible for determining whether the cause of death was in fact an accident. Some of the reasons for denying an accidental death claim should be listed in the contract under the rider or easily explainable by a company representative.

One can also purchase accidental death and dismemberment insurance privately or through work. It can work in conjunction with term life insurance to provide extra benefits to those who are in a dangerous line of work.

Making Claims

Fortunately, these extenuating circumstances are rare. Purchasing term life insurance is an excellent way to protect loved ones and only minimal attention needs to be given to these gruesome details. While it is important to understand these terms, planning benefits for loved ones deserves more attention.