Archive for the ‘Different types of insurance’ Category

A Primer On Insurance Products   no comments

Posted at 12:00 am in Different types of insurance

If you are looking to protect yourself, your property and your piece of mind, look into getting insurance. In some cases, like car insurance, it is mandatory, while it can just be a good investment in other cases. You will need insurance at some point in your life, so why not take a look at what you are getting into?

Car Insurance

If you drive a car, or plan to in the future, you are going to need insurance. This will protect you in the event of an accident, or if anything damages your car. Repairs can be quite expensive if you do not have insurance and you don’t even want to think about hospital bills.

Homeowners Insurance

To own a home, you are going to be required to have insurance on it. This will cover you in case your house burns down, or someone gets hurt while swimming in your pool. It is a great thing to have in case anything happens because you are going to be liable for the majority of things that happen at your home.

Renters Insurance

If you rent an apartment, it is a good idea to have renters insurance. This will allow you to be reimbursed for loss of property in your apartment. It could even cover you if you happen to lose all your clothes overseas or while on vacation. For the most part, it is a good way to protect yourself should anything ever happen at your apartment.

Flood Insurance

Floods can strike at any time. When the water rushes in, it could mean that your property and personal items are damaged beyond repair. Most homeowners and renters insurance policies may not cover damage from floods, so consider getting a separate policy.

If you are ever wondering how you will be able to protect your goods, you should consider getting insurance. Damages from an accident can range in the thousands of dollars, so make sure you are keeping yourself protected from any potential loss you may incur. It might not be fun to have to pay a premium each month, but you will be happy if anything happens and you have to make a claim.

Written by on January 1st, 1970

Life Insurance Types   no comments

Posted at 12:00 am in Different types of insurance

In many cases, an individual has to decide whether or not they will choose to carry life insurance. What many people do not realize is that life insurance can be broken down into three main categories: term, whole, and return of premium. The basics coverage of all three types is the same; however, the investment of each of the three types of life insurance are different.

Term life insurance is the most basic types of insurance. An individual would pay a specified amount of money for a determined amount of time. This monetary amount would not change over the life of the term. Twenty or thirty years are the two most common term periods. At the end of the term, the insurance would terminate unless it is renewed. No cash value is accrued with a term life insurance plan; however, it is the most inexpensive monthly plan.

Whole life insurance does not have a specific term agreement; this type of insurance can continue until death. The whole life insurance premiums are generally substantially higher than a term life insurance policy. The main investment difference is that whole life insurance accrues cash value. After having the policy for a specified amount of time, cash may be withdrawn against the policy. Upon death, whole life insurance tends to have the best benefits.

A return of premium life insurance policy is a relatively new concept. It is much like a term life insurance policy in that it is only good for a specified amount of time. At the end of the term the policy is ended unless it is renewed. A return of premium policy, however, tends to be close to double the cost of a regular term life insurance policy. If the individual dies before the term is fulfilled, it would be essentially the same as just a basic term insurance. If the individual is still living, however, they would receive back everything they have paid in premium costs.

For those who are disciplined enough to save, a term policy is generally considered the best investment. Because it is less expensive, the difference can be invested at higher rates. For those who do not save, one of the other two options might be the best. Whole life has very low rates while a return of premium policy has a 0% interest rate. At the end, however, there is money being returned.

Written by on January 1st, 1970

Different types of insurance   no comments

Posted at 12:00 am in Different types of insurance

Most people view insurance as a complete waste of money, but if they ever have to pay for something that would have been covered by insurance, they will wish they had coverage. There are several different types of insurance, but the majority of them are not legally required. People are strongly encouraged to carry insurance on anything that they could not easily afford to pay for on their own.

Auto

Auto insurance is one of the few types of insurance that is legally required. All drivers are required to at least carry liability insurance, which will essentially cover any damage that the policy holder’s vehicle causes, but it will not cover the policy holder’s vehicle. If people cannot afford to replace or repair their current vehicle, they should consider carrying full-coverage. If a vehicle is being leased or has a lien against it, every state requires the driver to have full-coverage insurance. The reason behind this law is that the government realizes that people are going to want to repair their vehicle before they pay their loan, but this practice will not work if the driver wants to keep their vehicle. People should always shop around for auto insurance since it is legally required.

Home

This is another type of insurance that is normally legally required. This insurance will cover any physical repairs from burglaries to storm damage. This type of coverage will also cover the homeowner in the event that someone gets hurt on the homeowner’s property and decides to pursue a lawsuit. No one wants to be stuck with paying for expensive repairs, and they definitely do not want to pay for someone’s injuries.

Life and Health

Life and health insurance are always optional, but they should be carried by nearly everyone. Life insurance will cover funeral expenses, and it will leave the survivors in a better financial state. Health insurance is important because if people end up with a ton of medical expenses, they will save a substantial amount of money. Most people can probably afford a doctor’s exam, but there are not too many people who could afford to be in a hospital for even a few days.

While not every type of insurance is required by law, people should carry all of them unless they want to risk losing hundreds of thousands of dollars. People will find that insurance can seem like a tedious expense, but if something does happen, they will be glad they had coverage. When shopping for insurance rates, people will want to receive life insurance quotes from local agents as well as online companies.

Written by on January 1st, 1970

How Much Does Insurance Cost   no comments

Posted at 12:00 am in Different types of insurance

Have you ever wondered how your insurance company comes up with the price it charges you for your insurance policy? Maybe you are curious as to why one type of insurance is priced higher than another, or why your friend pays less than you for the exact same car insurance policy. Here is a look at some factors that go into pricing your insurance policy.

Risk Of Claim

How likely are you to file a claim? The higher a risk you pose, the more you are going to pay for your insurance policy. Factors that make you a bigger risk can be age, credit score and whether or not you have ever filed a claim in the past.

How Much Would Have To Be Paid Out

The insurance company is going to pay for damages, but the more they cost, the more they will charge you to help cover the costs. For example, a newer car may cost more to insure because the parts may be more expensive to acquire should they need to be replaced. On the other hand, your renters insurance policy is going to be cheaper because the cost of goods is generally lower and claims may not be made as often.

Deductible

If you want to lower the price of your insurance, consider raising the amount of your deductible. The deductible is the amount that you have to cover before insurance kicks in. The less they have to pay, the less you have to pay. A 1,000 deductible on damage is going to cost less than a 500 deductible because you are shouldering more of the burden.

Discounts

There are many discounts that a provider may offer. From a good student discount, to a no-claims discount, there are many ways to lower your insurance cost. You can always look into each specific provider to see what they offer and if it will effect the cost of your insurance. You can find out about these discount when you are comparing insurance quotes online.

When it comes to insurance, the bottom line is that you will pay more if the insurance company has to pay more, or if you pose a risk to possibly cost more. If you can lower your risk, and shoulder more of the cost, you can lower your coverage costs. However, just make sure you are getting the proper coverage regardless of the cost.

Written by on January 1st, 1970

Facts about Homeowner’s Insurance   no comments

Posted at 12:00 am in Different types of insurance

Homeowner’s insurance is a requirement by lending institutions in order to acquire a mortgage when purchasing the home. This insures that the institution gets their money back if there is a fire or other serious incidents that destroy the home. It also gives the homeowner peace of mind that the contents of the home are covered as well. You never know when something can happen to destroy the home and everything in it. All homeowner’s, whether the home is paid off or not, should carry it.

Homeowner’s insurance costs no more than car insurance costs for a year. You can save money on homeowner’s insurance if you combine different insurances, such as car insurance and homeowner’s insurance together. Most insurance companies give a large discount for the combinations. Homeowner’s insurance can come with various deductibles. Choose a high deductible to save more money. If your deductible is low, your insurance will be much higher.

Homeowner’s insurance is not required by law, but you cannot obtain a loan for a home unless you carry the insurance. Choose an insurance company with a well-known name to cover your home. There is a difference between saving money and making bad decisions. Choosing an insurance company just because their rates are lower does not mean you will save money. It depends on the reputation of the insurance company. Will the company be there for you when you need them most? If the answer is iffy, you could pay in low level coverage that does little good when you lose your possessions.

Homeowner’s insurance will be added into the amount of the mortgage so there is no need to save for it each month. When the house is paid in full that luxury will disappear with it. Do not forget to change your budget after the mortgage is gone so that you put aside the proper amount of money each month to cover the premium when the insurance bill comes due.

If the home is in a flood area, it is likely that the homeowner’s insurance will not cover flooding. Flood insurance will be added to the mortgage as well because it will be required by the bank. Homeowner’s insurance generally covers theft, fire, water damage and smoke damage, among other things. It will also cover accidents that occur on the property. Allowing homeowner’s insurance to lapse is a bad decision because there is a high chance that it will be needed at some point during home ownership.

Written by on January 1st, 1970