Ever wondered why one would need life insurance especially as it is seen as an additional expenditure that one might not need. Well, we can surely find somewhere else for that money to go, and the real truth is, we may not really give it much thought until we have a family and begin accruing assets. Life insurance is an insurance policy, just like our auto or homeowner’s insurance, which offers us with added assurance that in any eventuality we will be covered financially. In the case of death, life insurance allows our family to ensure of our end of life needs, that includes burial or cremation at the least, and more depending on how much coverage we purchase.
As we live in the age of credit purchases, we bear a considerable amount of debt through our working years. This includes mortgage and car payments, as well as personal loans, credit cards, and student loans, just to name a few. A majority of companies offer their employees some type of life insurance coverage that can be purchased at a reduced group rate. This can either be a minimal amount or it can be twice your salary, it just depends on your personal situation and which options are available to you. A lot of people prefer to buy life insurance with their personal insurance agent for additional insurance that can be bought for varying amounts of coverage. This enables either the surviving spouse of family members to cover up burial expenses and any other outstanding debts of the decedent. Amounts of coverage vary and chosen based on what the individual would like to provide his or her survivors.
Premiums are based on what type of policy is selected and the age of the person seeking coverage. We are constantly getting mailers in our mailbox for a reduced rate policy if we act now, and frankly speaking, all those terms can be rather confusing. So what is the difference between a whole life policy and a term policy? A term policy is just that; when you are purchasing a definite amount of life insurance for a specified term, generally twenty years. The premium remains the same during this time period and does not build any type of cash value. On the other hand whole life insurance policies, do build cash value, and can be either borrowed against, or cashed in at various stages all through the policyholder’s whole life. Some policies require a physical exam and medical history questionnaire to be completed before coverage can be instated. Usually smokers pay higher premiums as well as people with chronic illnesses that include high blood pressure or diabetes.
Life insurance is a good idea, in particular if you don’t want to leave your family in a helpless situation facing bankruptcy because they can’t make ends meet without you. A number of companies specialize only in life insurance, and local insurance agents that can assist you clarify exactly what you need. Remember the older you get, the more it costs, so if you’re considering a term policy, make sure to buy it when you are young!
John Wellington provides readers with up-to-date commentaries, articles, and reviews for health, wellness [http://www.body-and-mind-magazine.com] as well as other related information.
Article Source: http://EzineArticles.com/?expert=John_Wellington
Saturday, 5 December 2009
Life Insurance Policy
Many types of insurance policies are out there for you to pick up the required one. All insurance policies help you to cover emergency big expenses with low payments or will assure an insurance cover for the family in case of an eventuality of accident or death. All these policies are great ideas helping millions of people to recover from the sudden financial deficiency to meet the unexpected situations like illness, accident and also death of an insured. There are personal insurances, home insurances and auto insurances. The most favorite and highly useful are personal insurances. Personal insurance schemes are further divided into many variations. The various schemes under this life insurance are many. This insured policy amount will be issued to the insurer if he survives the insurance term or it will be issued to the legal heirs after death.
• If the bread winner of the family meets an unexpected death, the dependents will be subjected to many sufferings. They will suffer in all fronts of life. At least to come out from the financial difficulties the life insurance cover is highly essential. Life insurance schemes as the name suggests provide the insurance cover for the life. In such cases of eventuality, the total policy amount with the bonuses accrued over it during the entire period of payments will be given to the legal heirs. One bigger advantage of this insurance scheme is that the dependents who claim the insurance amount need not pay any further installments.
• The Life insurance cover is extended to not only for the case of the death of the insurer, it gives financial support if the insurer becomes bed ridden with inability to do any activity. Loss of limbs and such greater pathetic situations are also covered under these insurance schemes.
• Depending up on the term of the payment, the insurer is eligible to get back the total policy amount with the bonuses for whole the years of premium payments. But the problem with such insurance policies is the insurance cover gets seized by the maturity of the policy. During the term of the policy, the insurance cover is applied and the legal heirs need not pay any further installments at the eventuality of claiming the insurance amount.
• Depending up on the term of the insurance policy, the monthly payments will be varying. The least expensive life insurance policies are term life insurance policies. Some of these insurance policies can be taken for life term. These types of policies will be effective only after the death of the insurer. The dependents or nominee of the insurer will get the policy amount after the demise of the insurer. The monthly premium will be much less for these types of policies.
• Other term life insurance policies are usually cover fixed periods like 5 years, 10 years, 25 years, etc.
Present day it is very easy to insure with an insurance agency with the online facility. You just log on to internet online facility and fill the application.
Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance [http://mcobi.org] site to help taking decision about auto Insurance.
Article Source: http://EzineArticles.com/?expert=Jon_Elton
• If the bread winner of the family meets an unexpected death, the dependents will be subjected to many sufferings. They will suffer in all fronts of life. At least to come out from the financial difficulties the life insurance cover is highly essential. Life insurance schemes as the name suggests provide the insurance cover for the life. In such cases of eventuality, the total policy amount with the bonuses accrued over it during the entire period of payments will be given to the legal heirs. One bigger advantage of this insurance scheme is that the dependents who claim the insurance amount need not pay any further installments.
• The Life insurance cover is extended to not only for the case of the death of the insurer, it gives financial support if the insurer becomes bed ridden with inability to do any activity. Loss of limbs and such greater pathetic situations are also covered under these insurance schemes.
• Depending up on the term of the payment, the insurer is eligible to get back the total policy amount with the bonuses for whole the years of premium payments. But the problem with such insurance policies is the insurance cover gets seized by the maturity of the policy. During the term of the policy, the insurance cover is applied and the legal heirs need not pay any further installments at the eventuality of claiming the insurance amount.
• Depending up on the term of the insurance policy, the monthly payments will be varying. The least expensive life insurance policies are term life insurance policies. Some of these insurance policies can be taken for life term. These types of policies will be effective only after the death of the insurer. The dependents or nominee of the insurer will get the policy amount after the demise of the insurer. The monthly premium will be much less for these types of policies.
• Other term life insurance policies are usually cover fixed periods like 5 years, 10 years, 25 years, etc.
Present day it is very easy to insure with an insurance agency with the online facility. You just log on to internet online facility and fill the application.
Jon Elton owns and operates a Car Home Life Insurance Quotes website to help while making decision about insurance. He also operates a Cheap Car Auto Insurance [http://mcobi.org] site to help taking decision about auto Insurance.
Article Source: http://EzineArticles.com/?expert=Jon_Elton
Insurance for Your Business
The importance of insurance cannot be over-emphasized and neither can the danger of paying for insurance you don't need. It is strongly recommended you solicit the advice of an in-dependent business insurance agent. Don't forget to SHOP! Talk to three or four independent agents and compare notes and prices. An insurance agent will lay out a vast array of insurance coverage much of which you simply may not need. Your situation will be unique and you must consider each insurance element carefully to ensure comprehensive coverage.
Whatever your final insurance program looks like, you should review it at least every six months. Your business can change rapidly, especially in the first few years and insurance needs change with it. Keep your program up to date by calling in your agent and reviewing your coverage. Make changes where necessary.
LIABILITY INSURANCE
This is probably the most important element of your insurance program. Liability insurance provides protection from potential
losses resulting from injury or damage to others or their property. Just recall some of the big cash awards you have read about that have resulted from lawsuits concerning liability of one kind or another and you will understand the importance of this insurance. Your insurance agent can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, make certain that the general policy does not include items you don't need. Pay for only the insurance you need. For example, your business may not need product liability insurance.
Do not confuse business liability coverage with your personal liability coverage, both of which you need. Your personal coverage will not cover a business-generated liability. Check to be certain.
Compare the costs of different levels of coverage. In some cases a $2 million policy costs only slightly more than a $1 million policy. This economy of scale is true with most forms of insurance coverage. That is, after a certain value, additional insurance becomes very economical.
KEY PERSON INSURANCE
This type of insurance is particularly important for the sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be necessary for others involved in your business.
SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a complex computer program used by aerospace firms. Al, the programmer, was involved in a severe automobile accident, became totally disabled, and SGC lost their programming capability. The problem was that the computer program written by Al was essentially the company's sole product. Modifications to accommodate the customer became impossible and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this situation. These losses could have been offset by key person insurance.
DISABILITY INSURANCE
You, as a business owner, should be covered by disability insurance whether or not you decide on key person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your business will continue to operate in the unfortunate situation where you are unable to work. Your disability insurance policy needs to provide satisfactory coverage. Particular attention should be paid to the definition of "disability," delay time until payments start, when coverage terminates, and adjustments for inflation.
FIRE INSURANCE
Fire insurance, like all insurance is complicated and you should understand what IS and IS NOT covered. For example, a typical fire insurance policy covers the loss of contents but does not cover your losses from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you're working out of a home office or you have a separate facility. You should discuss a comprehensive policy with your agent. Take the time to understand the details. For example, will the contents be insured for their replacement value or for actual value at the time of loss?
Consider a co-insurance clause that will reduce the policy cost considerably. This means that the insurance carrier will require you to carry insurance equal to some percentage of the value of your property. (Usually around 85%.) With this type of clause it is very important that you review coverage frequently so you always meet the minimum percentage required. If this minimum is not met, a loss will not be paid no matter what its value.
If you are working out of your home, your existing homeowner’s policy may not cover business property. If this is the case, have your insurance agent to add a home-office rider to your policy.
AUTOMOBILE INSURANCE
You probably already have automobile insurance but it might not include business use of your vehicle. Make sure that it does.
WORKER’S COMPENSATION INSURANCE
If you make the decision to hire employees, you will be required, in most states, to cover them under worker's compensation. The cost of this insurance varies widely and depends on the kind of work being performed and your accident history. It is important that you properly classify your employees to secure the lowest insurance rates. Work closely with your insurance agent.
BUSINESS INTERRUPTION INSURANCE
This protects against loss of revenue as the result of property damage. This insurance would be used, for instance, if you could not operate your business during the time repairs were being made as a result of a fire or in the event of the loss of a key supplier. The coverage can pay for salaries, taxes, and lost profits.
CREDIT INSURANCE
This will pay for unusual losses as the result of nonpayment of accounts receivables above a certain threshold. As with all policies, you must thoroughly understand the details so discuss it with your insurance agent. One of the largest providers of this coverage is American Credit Indemnity, Baltimore, MD. (800) 879 1224 (800) 879 1224 .
BURGLARY/ROBBERY/THEFT INSURANCE
Comprehensive policies are available that protect against loss from these perils, including by your own employees. Make certain you understand what is excluded from coverage.
RENT INSURANCE
This policy covers the cost of rent for other facilities in the event your property becomes damaged to the extent that operations cannot continue in your normal location.
DISABILITY INSURANCE
This insurance will pay you an amount each month slightly less than your current salary in the event you become disabled and are unable to work. Cost for this coverage varies considerably depending on your profession, salary level, how quickly benefits start, and when they end. Benefits paid are tax-free only if you, not your company, pay the premiums.
This list could be continued since it is possible to purchase insurance for just about any peril you can imagine ... if you can pay the premium! When considering your insurance coverage, use the following checklist:
INSURANCE COVERAGE CHECKLIST:
• Can you afford the loss?
• What coverage is required by Federal, state, or local law?
• What SPECIFIC items are covered by the policy?
• Are items to be insured for their replacement cost or original value?
• What SPECIFIC items are EXCLUDED by the policy?
• If there is a co-insurance clause, do you have adequate coverage?
• Have you chosen deductibles wisely in order to minimize costs?
• Do any of the policies you are considering duplicate or overlap one another?
• Do you need any insurance based on location, e.g., flood, earthquake?
Use the following checklist to review your insurance plans:
INSURANCE PLAN CHECKLIST:
• Employ an independent insurance agent rather than going to individual insurance companies. Ensure the agent shops for your insurance.
• Talk to and get quotations from at least THREE agents and pick the best one for you.
• Use money saving comprehensive policies, if possible.
• Perform periodic (every 6-months) reviews of your insurance program.
• Have business assets professionally appraised to determine coverage needs.
• Ensure existing personal insurance coverage includes business-related activities and add riders as necessary or obtain additional coverage.
http://www.TotalBusiness.com is a Website that provides business owners with the information they need in order to successfully start, manage, grow, and sell their businesses.
The site features over 3,000 articles and 60 guides on business topics such as starting a business, financing a business, sales and marketing, building a website, setting up an office, hiring employees, and selling a business. The site also contains articles on legal and accounting issues affecting businesses and allows business owners and entrepreneurs to get free expert advice from local lawyers or accountants. The site contains over 1,000 business forms and agreements that are helpful to business owners and provides a business directory with over 1,700 merchants who provide services specifically for small businesses.
Eran Salu, JD,MBA,CPA is the Founder and CEO of TotalBusiness.com
Article Source: http://EzineArticles.com/?expert=Eran_Salu
Whatever your final insurance program looks like, you should review it at least every six months. Your business can change rapidly, especially in the first few years and insurance needs change with it. Keep your program up to date by calling in your agent and reviewing your coverage. Make changes where necessary.
LIABILITY INSURANCE
This is probably the most important element of your insurance program. Liability insurance provides protection from potential
losses resulting from injury or damage to others or their property. Just recall some of the big cash awards you have read about that have resulted from lawsuits concerning liability of one kind or another and you will understand the importance of this insurance. Your insurance agent can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, make certain that the general policy does not include items you don't need. Pay for only the insurance you need. For example, your business may not need product liability insurance.
Do not confuse business liability coverage with your personal liability coverage, both of which you need. Your personal coverage will not cover a business-generated liability. Check to be certain.
Compare the costs of different levels of coverage. In some cases a $2 million policy costs only slightly more than a $1 million policy. This economy of scale is true with most forms of insurance coverage. That is, after a certain value, additional insurance becomes very economical.
KEY PERSON INSURANCE
This type of insurance is particularly important for the sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be necessary for others involved in your business.
SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a complex computer program used by aerospace firms. Al, the programmer, was involved in a severe automobile accident, became totally disabled, and SGC lost their programming capability. The problem was that the computer program written by Al was essentially the company's sole product. Modifications to accommodate the customer became impossible and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this situation. These losses could have been offset by key person insurance.
DISABILITY INSURANCE
You, as a business owner, should be covered by disability insurance whether or not you decide on key person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your business will continue to operate in the unfortunate situation where you are unable to work. Your disability insurance policy needs to provide satisfactory coverage. Particular attention should be paid to the definition of "disability," delay time until payments start, when coverage terminates, and adjustments for inflation.
FIRE INSURANCE
Fire insurance, like all insurance is complicated and you should understand what IS and IS NOT covered. For example, a typical fire insurance policy covers the loss of contents but does not cover your losses from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you're working out of a home office or you have a separate facility. You should discuss a comprehensive policy with your agent. Take the time to understand the details. For example, will the contents be insured for their replacement value or for actual value at the time of loss?
Consider a co-insurance clause that will reduce the policy cost considerably. This means that the insurance carrier will require you to carry insurance equal to some percentage of the value of your property. (Usually around 85%.) With this type of clause it is very important that you review coverage frequently so you always meet the minimum percentage required. If this minimum is not met, a loss will not be paid no matter what its value.
If you are working out of your home, your existing homeowner’s policy may not cover business property. If this is the case, have your insurance agent to add a home-office rider to your policy.
AUTOMOBILE INSURANCE
You probably already have automobile insurance but it might not include business use of your vehicle. Make sure that it does.
WORKER’S COMPENSATION INSURANCE
If you make the decision to hire employees, you will be required, in most states, to cover them under worker's compensation. The cost of this insurance varies widely and depends on the kind of work being performed and your accident history. It is important that you properly classify your employees to secure the lowest insurance rates. Work closely with your insurance agent.
BUSINESS INTERRUPTION INSURANCE
This protects against loss of revenue as the result of property damage. This insurance would be used, for instance, if you could not operate your business during the time repairs were being made as a result of a fire or in the event of the loss of a key supplier. The coverage can pay for salaries, taxes, and lost profits.
CREDIT INSURANCE
This will pay for unusual losses as the result of nonpayment of accounts receivables above a certain threshold. As with all policies, you must thoroughly understand the details so discuss it with your insurance agent. One of the largest providers of this coverage is American Credit Indemnity, Baltimore, MD. (800) 879 1224 (800) 879 1224 .
BURGLARY/ROBBERY/THEFT INSURANCE
Comprehensive policies are available that protect against loss from these perils, including by your own employees. Make certain you understand what is excluded from coverage.
RENT INSURANCE
This policy covers the cost of rent for other facilities in the event your property becomes damaged to the extent that operations cannot continue in your normal location.
DISABILITY INSURANCE
This insurance will pay you an amount each month slightly less than your current salary in the event you become disabled and are unable to work. Cost for this coverage varies considerably depending on your profession, salary level, how quickly benefits start, and when they end. Benefits paid are tax-free only if you, not your company, pay the premiums.
This list could be continued since it is possible to purchase insurance for just about any peril you can imagine ... if you can pay the premium! When considering your insurance coverage, use the following checklist:
INSURANCE COVERAGE CHECKLIST:
• Can you afford the loss?
• What coverage is required by Federal, state, or local law?
• What SPECIFIC items are covered by the policy?
• Are items to be insured for their replacement cost or original value?
• What SPECIFIC items are EXCLUDED by the policy?
• If there is a co-insurance clause, do you have adequate coverage?
• Have you chosen deductibles wisely in order to minimize costs?
• Do any of the policies you are considering duplicate or overlap one another?
• Do you need any insurance based on location, e.g., flood, earthquake?
Use the following checklist to review your insurance plans:
INSURANCE PLAN CHECKLIST:
• Employ an independent insurance agent rather than going to individual insurance companies. Ensure the agent shops for your insurance.
• Talk to and get quotations from at least THREE agents and pick the best one for you.
• Use money saving comprehensive policies, if possible.
• Perform periodic (every 6-months) reviews of your insurance program.
• Have business assets professionally appraised to determine coverage needs.
• Ensure existing personal insurance coverage includes business-related activities and add riders as necessary or obtain additional coverage.
http://www.TotalBusiness.com is a Website that provides business owners with the information they need in order to successfully start, manage, grow, and sell their businesses.
The site features over 3,000 articles and 60 guides on business topics such as starting a business, financing a business, sales and marketing, building a website, setting up an office, hiring employees, and selling a business. The site also contains articles on legal and accounting issues affecting businesses and allows business owners and entrepreneurs to get free expert advice from local lawyers or accountants. The site contains over 1,000 business forms and agreements that are helpful to business owners and provides a business directory with over 1,700 merchants who provide services specifically for small businesses.
Eran Salu, JD,MBA,CPA is the Founder and CEO of TotalBusiness.com
Article Source: http://EzineArticles.com/?expert=Eran_Salu
Personal Loan Insurance
There are several factors which you can not control, that can cause you to be unable to make payments on a loan that is your responsibility.
You may get sick or be involved in an accident that takes you out of work for an extended period of time. It could be that your employer has had to cut down on the number of people he employs or the wages have had to be lowered; or if you are self-employed, there is a chance that your business has not earned you enough to keep up your payments.
It could be that your expenses have increased or interest rates have risen since you first received your loan and this has made it difficult for you to make your payments.
Worry about such things may be heavy on the mind of some people who are of retirement age or well beyond retirement age and also for the people who have small children.
These are some of the reasons why loan insurance, an insurance policy that protects against the possibility of one's inability to make repayments, is offered. You will usually be offered loan insurance every time you take on credit, however, it must be understood that you are not obliged to take loan insurance and you cannot be denied credit for not taking it. When you do decide to use the loan insurance, it is wise to shop around for the best rates, as they will vary from provider to provider, and you should not go with the first insurer you contact.
If you do decide to use the personal loan insurance, you can rest a little easier knowing that if certain events not in your control occur, your loan payments will be paid on your behalf.
You must be aware of the conditions and exclusions included in the policy agreements before you agree to any type of personal loan insurance. Too many people pay for loan insurance without much prospect of ever benefiting from it and sometimes without even knowing whether or not they have it. These are some of the reasons you should thoroughly research all offers you receive for personal loan insurance before agreeing to take it.
Some people actually agree to loan insurance coverage without knowing they are receiving it, because lenders are anxious to add it to your account as a way of increasing their own revenues.
No matter how impractical it seems, sometimes these personal insurance policies will state a requirement that you take the first job you are offered after losing your present one, with no regard to the level of pay being offered.
If you were to be given time to search for a better paying job, it is entirely possible that you would be able to find a new job that is a more suitable match for your work experience and pay level.
It is always best to have direct knowledge about the insurance you are paying for, and if it is not something you want, do not buy it. If you discover that insurance has been added to your account without your express knowledge or permission, notify your lender and have it canceled with no delay. No one wants to pay for something that they don't intend to use and especially if they did not request it be intiiated in the first place.
Alisdair Cosgrove loves to write about finance issues and advise on how people can save money on their personal finance outgoings and can find more of his articles at the UK site Glitec, offering loans and also a great deals on unsecured loans. Visit Glitec Finance today for a great loan offer and to read more articles from Alisdair.
Article Source: http://EzineArticles.com/?expert=Alisdair_Cosgrove
You may get sick or be involved in an accident that takes you out of work for an extended period of time. It could be that your employer has had to cut down on the number of people he employs or the wages have had to be lowered; or if you are self-employed, there is a chance that your business has not earned you enough to keep up your payments.
It could be that your expenses have increased or interest rates have risen since you first received your loan and this has made it difficult for you to make your payments.
Worry about such things may be heavy on the mind of some people who are of retirement age or well beyond retirement age and also for the people who have small children.
These are some of the reasons why loan insurance, an insurance policy that protects against the possibility of one's inability to make repayments, is offered. You will usually be offered loan insurance every time you take on credit, however, it must be understood that you are not obliged to take loan insurance and you cannot be denied credit for not taking it. When you do decide to use the loan insurance, it is wise to shop around for the best rates, as they will vary from provider to provider, and you should not go with the first insurer you contact.
If you do decide to use the personal loan insurance, you can rest a little easier knowing that if certain events not in your control occur, your loan payments will be paid on your behalf.
You must be aware of the conditions and exclusions included in the policy agreements before you agree to any type of personal loan insurance. Too many people pay for loan insurance without much prospect of ever benefiting from it and sometimes without even knowing whether or not they have it. These are some of the reasons you should thoroughly research all offers you receive for personal loan insurance before agreeing to take it.
Some people actually agree to loan insurance coverage without knowing they are receiving it, because lenders are anxious to add it to your account as a way of increasing their own revenues.
No matter how impractical it seems, sometimes these personal insurance policies will state a requirement that you take the first job you are offered after losing your present one, with no regard to the level of pay being offered.
If you were to be given time to search for a better paying job, it is entirely possible that you would be able to find a new job that is a more suitable match for your work experience and pay level.
It is always best to have direct knowledge about the insurance you are paying for, and if it is not something you want, do not buy it. If you discover that insurance has been added to your account without your express knowledge or permission, notify your lender and have it canceled with no delay. No one wants to pay for something that they don't intend to use and especially if they did not request it be intiiated in the first place.
Alisdair Cosgrove loves to write about finance issues and advise on how people can save money on their personal finance outgoings and can find more of his articles at the UK site Glitec, offering loans and also a great deals on unsecured loans. Visit Glitec Finance today for a great loan offer and to read more articles from Alisdair.
Article Source: http://EzineArticles.com/?expert=Alisdair_Cosgrove
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