The Different Elements Of A Car Insurance Policy

The phrase “car insurance” implies that what you are insuring is your car, but the realities of car insurance are a bit more complex than that. When you purchase a comprehensive auto insurance policy, you are protecting yourself from the costs of damaging your car, but that is just one element that makes up full automobile insurance coverage. You need insurance that can cover the legal fees that may result during a lawsuit if you take another driver to court after an accident…
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The phrase “car insurance” implies that what you are insuring is your car, but the realities of car insurance are a bit more complex than that. When you purchase a comprehensive auto insurance policy, you are protecting yourself from the costs of damaging your car, but that is just one element that makes up full automobile insurance coverage. You need insurance that can cover the legal fees that may result during a lawsuit if you take another driver to court after an accident. You need insurance that can cover the cost of prescription painkillers that you may need to buy for yourself if an uninsured driver runs a light and hits your car. These and hundreds of other possible costs that have nothing to do with your actual vehicle can be covered by so-called automobile insurance. The act of buying an insurance policy for your car is an act of making sure that it is financially safe both for yourself and for anyone else who you may encounter when you are behind the wheel.

You need to protect yourself from the potential financial hardship of paying for the medical bills of anyone who you injure in an accident, and the costs of repairing any public or private property that you may damage. In addition, before you can hit the road in most states you need enough insurance that you will be able to pay for your own medical care if you are injured in a crash caused by an uninsured motorist. So far, none of these important elements of a standard car insurance policy even mention the automobile itself!

A good collision or comprehensive insurance policy will cover at least some percentage of the cost of repair to your vehicle after physical damage. However, since not every state requires that you have this kind of insurance, don’t assume that physical damage is covered by your policy unless your agent tells you so directly. Physical damage coverage is just one element of a good automobile insurance policy, and many people consider it optional rather than necessary. The actual cost of insuring the physical form of your vehicle is almost always dwarfed by the costs of the other kinds of insurance that you need in order to drive safely, responsibly, and legally.

Other options that you will be likely to encounter when choosing a car insurance policy include things like medical payments coverage, which will help you meet the costs of medical attention after an accident. Of course, a traditional auto insurance policy includes a certain level of protection against the costs of treatment, but things like co-pays are not covered by body injury liability coverage or uninsured motorist coverage. This leads many people to take out additional insurance so that they know that they will not have a larger than necessary financial burden if a hospital stay is necessary for them, for a passenger, or for somebody else harmed during a crash.

Why It’s Important To Know All About Your Insurance Policy

It’s an accepted fact. There are things in life that we have no control over.
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It’s an accepted fact. There are things in life that we have no control over. Death is one. Unless we are planning a suicide, the where, when, what and how of our life’s end are things we simply have no prior knowledge of or power over. The same is true for accidents and illness. We don’t know when they will hit us. Of these three risks, however, death is more devastating as its effect on our family’s future is permanent.

Does this mean therefore that we are completely powerless to deal with this eventuality? Not really. Granted we have no idea when death will befall us, there is something we can do to soften its blow. We can plan. We can make sure that, if and when death happens, we are ready.

This in essence is what life insurance is all about. It’s our positive response to a negative risk. For this response to be effective, however, we must be sure it is the right one.

Simply put, our life insurance policy can only guarantee our beneficiary’s future as far as we allow it to. We need to make sure therefore that we purchase one that is well suited to our needs. More importantly, we need to understand the provisions of our policy.

This is the bitter lesson Barry Norman learned too late as illustrated in the case of Avco Financial Services Realty Ltd. V. Norman, a decision of the Ontario Court of Appeals.

Barry Norman and his wife Yvonne secured a one-year second mortgage loan from Avco in 1988 and arranged for a life insurance coverage as an addendum. His belief was, should anything happen to him or his wife, the policy would serve as settlement. Things went smoothly at first. In 1989, the mortgage and insurance were renewed for another year but in 1990, Norman’s wife no longer qualified for the insurance. She had fallen ill with cancer and died the following year. When the mortgage went into default, Avco sued Barry Norman for payment of the loan. He counterclaimed for negligence, alleging Avco failed to inform him that the insurance expired with each one-year term of the mortgage and had to be renewed. The court ruled in favor of Avco. Barry Norman should have informed himself of the insurance details when he renewed it for another year.

The lesson here is crystal clear. Don’t just purchase a life insurance policy. Talk to a licensed professional and make sure you get a policy based on what you want and that you understand all its provisions. If you are a mortgage borrower, don’t sign up for life insurance from your lender. This is not their main concern. If you worry about the mortgage, then get a higher coverage that will be able to cover both the mortgage and the needs of your family. Take charge of your insurance policy. This is one aspect of your life you need to have control over.

Advantages of a Whole Life Insurance Policy

There is a significant difference between whole life insurance and term life insurance. If you are considering a life insurance policy, be sure you research all policy options.
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To begin with, you need to understand that life insurance falls into two very broad categories: Whole and term. The basic difference between term and whole life insurance is this: A term policy is life coverage only.
In whole life insurance policy, as long as one continues to pay the premiums, the policy does not expire for a lifetime. As the term applies, whole life insurance provides coverage for the whole life or until the person reaches the age of 100. Whole life insurance policies build up a cash value (usually beginning after the first year). With whole life, you pay a fixed premium for life instead of the increasing premiums found on renewable term life insurance policies. In addition, whole life insurance has a cash value feature that is guaranteed. In term and whole-life, the full premium must be paid to keep the insurance.

With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. Besides permanent lifetime insurance protection, Whole Life Insurance features a savings element that allows you to build cash value on a tax-deferred basis. The policyholder can cancel or surrender the whole life insurance policy at any time and receive the cash value. Some whole life insurance policies may generate cash values greater than the guaranteed amount, depending on interest crediting rates and how the market performs. The cash values of whole life insurance policies may be affected by a life insurance company’s future performance. Unlike whole life insurance policies, which have guaranteed cash values, the cash values of variable life insurance policies are not guaranteed. You have the right to borrow against the cash value of your whole life insurance policy on a loan basis. Supporters of whole life insurance say the cash value of a life insurance policy should compete well with other fixed income investments.

Unlike term life policies, whole life insurance provides a minimum guaranteed benefit at a premium that never changes. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. The insurance company based on the overall return on its investments sets earnings on a whole life policy. In addition, while the interest paid on universal life insurance is often adjusted monthly, interest on a whole life policy is adjusted annually. Like many insurance products, whole life insurance has many policy options.

Make sure you can budget for whole life insurance for the long term and do not buy whole life insurance unless you can afford it. You should buy all the coverage you need now while you are younger, and if you cannot afford whole life insurance, at least get Term. That is why whole life insurance policies have the highest premiums it is insurance for your whole life, no matter when you pass on. The level premium and fixed death benefit make whole life insurance very attractive to some. Unlike some other types of permanent insurance, with whole life insurance, you may not decrease your premium payments.

Auto Insurance Guide- Get your Auto Insurance Policy

Auto insurance provides complete protection against losses happened as a result of vehicle accidents. Normally it includes car insurance and motor insurance. The customers purchase this insurance policy just to reduce the risk incurred due to accidents of cars, trucks and other vehicles. People can also secure their vehicles against theft, fire damage or accident damage.
Auto Insurance
Auto insurance provides complete protection against losses happened as a result of vehicle accidents. Normally it includes car insurance and motor insurance. The customers purchase this insurance policy just to reduce the risk incurred due to accidents of cars, trucks and other vehicles. People can also secure their vehicles against theft, fire damage or accident damage.

Auto insurance policy may cover insured party, insured vehicle as well as third party that are involved in the accident. Sometimes policy is valid for certain circumstances. Different policies are available for the customers and they can purchase anyone as per their requirements. Coverage levels can vary for each auto insurance policy.

Insurance is one of the essential things to secure you, your family as well as your vehicle. You’ve to just pay a certain amount of premium for a fixed period of time and then the insurer agrees to pay you for any kind of damages or loss of your vehicle. Cost of an insurance policy totally depends on the coverage because your policy covers more only if you pay more.

Auto insurance is expensive because it is the best way to secure you and your automobile. Main types of auto insurance are as follows:
Fully Comprehensive auto insurance policy
Third party (fire & theft)
Third party insurance
Specialized car insurance

People mostly purchase fully comprehensive auto insurance policy as it covers all types of cases like theft, accident and other damage. It is an expensive policy but whenever you go to buy this one you should try to get 100% security for your vehicle. Third party insurance is cheapest than others and it offers coverage only if you’re at fault and hit other party. It is the best option in case you owned an old vehicle.

Specialized car insurance is for the 25 years old vehicles. These vehicles require special services so these are categorized as classic. An individual can choose the best as per his/her requirements. But whenever you go to purchase these policies you’ve to be sure about the source from where you’re going to buy the insurance policy. You should first make you budget means how much you can afford to pay for auto insurance policy premium.

After deciding your budget, make a decision on amount of coverage that you want for each accident. You should tell your requirements to different insurance companies and agents. You should discuss your problems with the companies. Then choose the best among them means select that company which is ready to give more coverage. You can also search on Internet for the best service providers.

Competitive Term Life Insurance – Updating Your Policy

If you are in your 40’s and 50’s, there is great news when it comes to competitive term life insurance rates. Let’s take a look at how your situation could affect your life insurance rates.

Use Competitive Term Life Insurance To Reassess Your Needs

Couples who think that they no longer need to look for competitive life insurance prices after their children reach 18 years of age, may want to check current market prices. Many term life insurance policies are purchased to …
Competitive Term Life Insurance
If you are in your 40’s and 50’s, there is great news when it comes to competitive term life insurance rates. Let’s take a look at how your situation could affect your life insurance rates.

Use Competitive Term Life Insurance To Reassess Your Needs

Couples who think that they no longer need to look for competitive life insurance prices after their children reach 18 years of age, may want to check current market prices. Many term life insurance policies are purchased to protect the family financially while the children grow up. After a child reaches 18 or so, policies may not be updated.

Even if your financial situation shows you are close to paying off your mortgage and your children’s education expenses, you may still benefit from looking for a competitive term life insurance policy. Most policies are better priced today than they were a decade ago, because people are living longer.

Remember that a competitive term life insurance quote will get you the best deal available on the market. Because, if you are still somewhat short of assets, term life insurance can provide ready funds in the event of the death of a partner.

How Do I Look For Competitive Term Life Insurance?

When you are trying to determine how much life insurance you need to purchase, determine how much income would be lost if a spouse were to die. With this number in mind, calculate your numbers to see how much capital you would need to replace that income through an investment.

Other conditions when shopping for competitive term life insurance are; the health of a parent, financial commitments that may have been made and the needs of any children still living at home.

You need to yearly reassess your financial goals. Before making any major financial decision, meet with your accountant or lawyer for advice. You need to bring everything up to date, including getting quotes for your family, of the most competitive term life insurance.

Car Insurance Legal Expense Cover – The Policy Essential

Like many people buying car insurance, you shop around and buy online. You’ve found a really good, cost-efficient deal. So when it comes to the final checkout, do you choose to tick Yes or No in that Legal Expenses Cover box? It will add a little more to the total, and it’s not an absolute requirement, so you may be tempted to leave it out. Not least because it’s definitely not the most well-known part of insurance! It is, however, something we think you really should conside…
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Like many people buying car insurance, you shop around and buy online. You’ve found a really good, cost-efficient deal. So when it comes to the final checkout, do you choose to tick Yes or No in that Legal Expenses Cover box? It will add a little more to the total, and it’s not an absolute requirement, so you may be tempted to leave it out. Not least because it’s definitely not the most well-known part of insurance! It is, however, something we think you really should consider adding if it’s not in the policy as standard. And here’s an example of why:

Earlier in the year Jake, one of our freelance writers, was involved in a car accident. His Golf Mark I is his pride and joy, and he’s spent many happy weekends working on it. So naturally, he wanted total insurance coverage for every eventuality – even legal expenses.

This certainly proved to be the right decision after the accident. The car was hit from the rear, so some of the vehicle damage could be fixed. The insurance company worked fast to deal with the claim. Unfortunately, Jake also suffered a broken wrist and some whiplash. If he hadn’t taken legal expenses cover, the bill for a solicitor to pursue his compensation claim would have been solely his responsibility. Fortunately, since he had the cover, Jake was able to get his compensation quickly. Working as a freelance writer, Jake doesn’t have the safety net of employer sick pay. Lost hours mean lost money. Jake was out of work for a month – and a month’s wages. With legal expenses cover, however, Jake was able to claim for loss of earnings and will receive compensation for them any day now.

The total cost of this peace of mind and earnings security? An extra Ј2 a month on his premium, surely a worthwhile investment for anyone’s money!

Fully comprehensive car insurance ensures that your vehicle is well taken care of, but how about the driver? Jake’s accident was not his fault, but he had to spend a month off work. Without legal expenses cover, the cost of getting compensation would have fallen to him. With it, he was as well protected as his beloved car, and didn’t have to worry about being able to afford to make a claim.

Take another example of a typical accident: you are unharmed, but your car has to wait in the repair shop for two weeks while parts come in. Without replacement car hire as part of your insurance deal, you will have to rely on public transport – not the reason you bought your own vehicle! With legal expense cover, you can use a hire car and know that your trouble and inconvenience will be compensated.

All you need to do when you claim on your legal expenses policy is to provide the accident details in the same way you normally would – all the paperwork will be taken care of for you. It’s possible that you may need to speak to your solicitor, or appear in the stand in the event of the case going to court, but you won’t ever have to pay any legal fees.

And the cost is low, sometimes even free. Admiral include it as standard. Most insurers do make a charge, but it averages around Ј20 a year – for example, More Than charge Ј17.85, and Budget add an extra Ј24. Consider the legal battles that have resulted from accident claims in the past – especially those where serious injuries and claims were involved. Compensation – and costs – can run into millions. No-one can doubt that in cases like these, legal expenses cover is a worthwhile addition to any policy.

So next time you buy car insurance, make sure your policy includes legal expenses cover. Take it as an extra if it’s not part of the standard package. You’ll barely notice the extra cost, but you’ll certainly be aware of the benefits if you ever need it.

Should Your Life Insurance Policy Be Written In Trust?

According to one of the largest UK life insurance companies, just 1% of life policies are written in trust. That is disgraceful and reflects poorly on the financial industry.

Let’s explain.

If your life insurance policy is “Written in Trust” then, in the event of a claim, the insurance company pays out directly to the beneficiaries you name on the policy. The significance of this is easily missed.

It means that if the policy is “Written in Trust”, the proceeds fro…
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According to one of the largest UK life insurance companies, just 1% of life policies are written in trust. That is disgraceful and reflects poorly on the financial industry.

Let’s explain.

If your life insurance policy is “Written in Trust” then, in the event of a claim, the insurance company pays out directly to the beneficiaries you name on the policy. The significance of this is easily missed.

It means that if the policy is “Written in Trust”, the proceeds from the policy never form part of your legal estate and are not subject to Inheritance Tax. The importance of this is illustrated by the following figures:

Take Mr A. He’s a widower and wants to leave everything equally to his two sons. He owns his home which is currently worth Ј245,000 with a Ј10,000 outstanding mortgage. His investments are valued at Ј52,000 and his car and other chattels are worth Ј18,000. He also owns a life insurance policy for Ј100,000 which is not written in trust. We assume that the costs of administering his estate and obtaining probate would be Ј5,000.

If Mr A were to die now, his estate would be worth Ј400,000 less Inheritance Tax. Inheritance Tax is currently levied at 40% on the value of his estate over and above Ј275,000 – that means that the taxman will walk off with Ј50,000 and his sons would each receive Ј175,000.

Now lets assume exactly the same figures except that in this case the life insurance policy is “Written in Trust” with Mr A’s sons as equal beneficiaries. Because the life insurance company pays out directly to his sons, they each receive Ј50,000 straight away and non of the money is included in Mr A’s estate. This means that his estate is now worth Ј300,000 and the taxman can only walk away with Ј10,000. Each of his sons receives Ј20,000 more and tax-free!

So simply by signing a few forms, Mr A saves Ј40,000 tax!

Is there a catch? No – all the documentation is standard and is provided totally free of charge by the life insurance company. Your broker through whom you buy the policy, should complete the documentation for you, again free of charge. All you have to do is give the details of the beneficiaries to the broker and sign the form. Solicitors are not required. In the event of a claim, the life insurance company then has to pay out directly to the beneficiaries. Job done! Poor Mr Taxman!

Even if your policy is designed to repay a mortgage, it should be “Written in Trust” for your partner. Then, rather than your estate receiving the money and using it pay off the mortgage, the money can be paid directly to your partner. This saves legal delays, solicitor’s and probate fees and loads of hassle. Your partner can then use the money to personally pay off the mortgage. Whether this also saves you Inheritance tax will depend on the value of your estate and how you have structured your Will.

So we believe that a life insurance policy “Written I Trust” is a win win situation. And there aren’t many of those around these days! We can’t see any drawbacks.

Bye the way, no matter what you decide to do, always ensure that you have an up-to-date Will.

Top 5 Ways To Save Money On Your Life Insurance Policy

There are different types of life insurance available, and a choice of levels of cover depending on your needs and circumstances. The cost of life insurance can vary based on many factors…
Save Money On Your Life Insurance Policy
Life insurance is a very important type of insurance policy, and enables us to provide our loved ones with valuable financial security in the event that we die unexpectedly. Life insurance is designed to pay out a lump sum to the named beneficiary in the event that we die within the term of the policy (subject to exclusions and conditions), which gives our loved ones one less thing to worry about at an already stressful and upsetting time.

There are different types of life insurance available, and a choice of levels of cover depending on your needs and circumstances. The cost of life insurance can vary based on factors such as the level of cover taken, your age, your medical history, your gender, and your lifestyle. There are certain factors that can really push up the cost of life insurance, and making some changes can help you to keep costs down considerably. There are a number of steps that you can take to try and keep life insurance premiums down:

1. Give up smoking. If you are a smoker you will be classed as a high risk customer to a life insurance policy, as the chances of contracting a life threatening disease, such as cancer, are vastly increased. By gibing up smoking for at least twelve consecutive months you could enjoy a healthier lifestyle, save a fortune on the cost of cigarettes, increase your life expectancy, and reduce your life insurance premiums.

2. Improve your diet and exercise. Anyone that is seriously overweight will also be classed as an increased risk to life insurance companies, as this is a condition that can bring with it a number of serious and potentially life threatening problems, such as increased risk of heart attacks. By making improvements to your diet and stepping up the exercise you could start enjoying a better lifestyle and you could reduce the cost of your life insurance premiums.

3. Turning veggie could help! Although vegetarianism is not something that all life insurance companies take into account when setting your premiums, there is now life insurance available that offers reduced rates to those that are vegetarian or that eat only fish.

4. Make sure you compare a number of policies. Cutting the cost of your insurance cover isn’t all about your personal circumstances and lifestyle. You also need to remember that the cost of cover can vary widely from one insurance provider to another, so make sure you take the time to compare a number of policies and see which one offers the best value for money.

5. Choose the most affordable policy. The cost of your premiums will also vary based on the type and level of cover that you take. For instance, term life insurance cover will be cheaper than whole of life insurance cover. Select your policy based on the amount that you can afford to spend on premiums, but do be careful not to underinsure, as you could otherwise end up paying premiums on something that your loved ones will not really benefit from ultimately.

How To Choose The Right Life Insurance Policy

Life insurance – what is it & how does it work?

Life insurance is the simplest, most popular and cost effective way to financially protect any dependants in the event of your death. While it won’t help those left behind to get over their loss, the benefit of a lump sum, in most cases tax-free, will guarantee your family aren’t deprived of funds during an already stressful time.

With the cost of life insurance at an all time low, now is the perfect time to arrange cover….
life insurance
Life insurance – what is it & how does it work?

Life insurance is the simplest, most popular and cost effective way to financially protect any dependants in the event of your death. While it won’t help those left behind to get over their loss, the benefit of a lump sum, in most cases tax-free, will guarantee your family aren’t deprived of funds during an already stressful time.

With the cost of life insurance at an all time low, now is the perfect time to arrange cover. For those in good health, a policy that was taken out six years ago can be replaced today for significantly less, despite the fact that being older, one is in theory at greater risk. The industry over-reaction to the threat of AIDS initially caused premiums to rocket skywards, but when the expected epidemic failed to materialise, costs fell rapidly from the mid 1990s onwards.

Life insurance premiums vary from person to person, with factors such as age, gender, current and previous health, lifestyle, term required, occupation and smoker status all having an influence. Risk is assessed with the use of what’s known in the industry as ‘mortality tables’ to determine the premium for a particular individual, to which a ‘loading’ may be added which takes further account of other factors relating to medical history and lifestyle.

Whole of life versus term life insurance

Life insurance can be split into two main types, known as ‘whole of life insurance’ and ‘term life insurance’. In essence, as the name suggests, whole of life insurance provides cover for the lifetime of the policyholder, whereas term life insurance provides cover for the duration of an agreed period in time. For all policies it’s crucial to ensure that premium payments are kept up to date to keep cover in place.

Whole of life insurance

Whole of life insurance tends to be the more expensive option, though often has the advantage of being more flexible. It can fulfil many purposes including personal protection, family protection and inheritance tax planning, and can be combined with a term life insurance policy to cover specific debts as required.

Typically, policyholders’ contributions are invested and life insurance benefits are ‘purchased’ using the investment fund. The fund’s performance, along with other factors, has a significant effect on the level of future benefits. As the policyholder’s age increases the cost of the insurance increases, thus reducing the sum in the investment pot. The investment element varies from insurer to insurer; some are more generous payers than others, making the expert advice of an insurance broker or independent financial adviser invaluable in choosing such a policy. Some plans require contribution until the policyholder’s death, some for a set period of time, and some up until a certain age is reached, with additional options available to cover specific illnesses or disability. The common factor throughout is that cover is maintained for the life of the policyholder, making whole of life insurance a very popular way to leave dependants a nest egg.

One great benefit of whole of life insurance is that the guarantee of a payout on the policyholder’s death, at whatever point in time that may be, removes much of the guesswork involved in other types of life insurance. As long as premiums are maintained, cover is assured. Although the more expensive option, it’s important to note that premiums are lower than those one would pay in later life by repeatedly renewing term life policies.

Term life insurance

A simpler option, term life insurance offers basic cover for a set number of years, usually at low cost. A term life insurance policy requires a regular premium payment and pays out a lump sum on the policyholder’s death providing this occurs within the term of the policy. Death outside of the term to which the policy applies won’t result in a payout, meaning the loss of any investment made, making it particularly important to be sure that cover is adequate and the term is appropriate.

Some policies can be extended to provide critical illness cover; full disclosure of all medical conditions, existing and historic, is vital when arranging this to avoid a denial of payment just when it’s needed most. It’s also imperative to be certain exactly which conditions the policy covers, as insurance companies are notoriously specific as to the illnesses they’ll pay out for!

Term life insurance cover can be further categorised into these types:

Flat-rate (or level) cover – offers a set amount of cover for the policy term, fixed from the outset.

Decreasing (or mortgage protection insurance) cover – cover decreases over the term of the policy, often inline with a diminishing mortgage debt.

Family income benefit – pays out a regular income rather than a lump sum during the policy term.
Increasing term assurance – premiums and benefits increase each year, usually in line with inflation, allowing the protection of a lifestyle.

Convertible term assurance – gives the option to convert to a whole of life policy without giving new information about your health.

How much cover do I need?

It’s important to correctly identify your dependants’ financial needs to establish just how much life insurance cover to arrange. A general rule is to choose a policy providing at least ten times your salary, but more may be appropriate, with the amount varying depending on how you intend it to be used. Basically you decide how much you want your dependants to receive in the event of your death, and your premiums will be determined accordingly.

Don’t overlook factors like:

• Mortgage repayments
• Replacing the primary earner’s salary
• Replacing childcare
• Education expenses
• Outstanding debts
• Support for a business partner

What do I need to look out for?

Before signing anything, look carefully at the terms and conditions of your proposed life insurance policy giving particular attention to any regulations pertaining to payouts. Some policies may not, for example, pay out if death is caused by participation in certain dangerous sports or activities.

In the case of index-linked policies which allow for economic change, it’s important to establish whether the policy is linked automatically or whether there’s the need to opt-in to linkage each year; failure to do so could result in being locked out of future linking.

Though life insurance payouts are usually tax-free, there are circumstances where taxes will apply. A life insurance policy can be placed ‘in trust’ to protect revenue and provide payment more quickly, though this is a complex issue which needs professional advice for clarity before proceeding.

A joint-life policy is a popular and often less expensive option for couples which covers the two of them simultaneously, with options for payout on a first-death or last-survivor basis.

How much will it cost?

The cost of each different policy offered by a life insurance company varies widely, and depends on a number of factors: the type of policy, the length of the policy term, the size of the death benefit, the flexibility of the policy, number of people covered by the policy and so on.
The only certainty is that the longer you delay getting life insurance, the more expensive the premiums will be!

Homeowners Policy: Why You Should Review It Annually

Whether you have upgraded or remodeled the home, added a deck onto the back, turned the home into a rental property or realized that you may have problems with flooding in your area, there are several reasons to review your home insurance policy every year to assess whether the coverage still meets your needs.
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Most Homeowners insurance companies will simply send out a reminder for a renewal of your home insurance policy when the end of the year is up for your insurance coverage. Many will also automatically renew your policy unless you call and let them know that you want to change or cancel that policy. This makes it easy for many homeowners to simply begin sending in the next set of payments for another year without reviewing the policy to make sure it adequately reflects their needs for the year.

Whether you have upgraded or remodeled the home, added a deck onto the back, turned the home into a rental property or realized that you may have problems with flooding in your area, there are several reasons to review your home insurance policy every year to assess whether the coverage still meets your needs.

Even if you have just begun a new home insurance coverage policy, it is important to review the policy as soon as you receive it to make sure the policy has the correct coverage amounts and coverage needs you have asked for. Remember that this policy will be in place for an entire year and will most likely cost between $300-$2000 so be sure that you are getting what you want.

If you asked for personal liability of others in the amount of $100,000 and the policy only shows $50,000 don’t be afraid to call the insurance agent back to have this problem corrected. The problem can simply be solved by issuing a new policy or a policy change.

Once the year time period has expired on your current policy and you are getting ready to renew again, it is always a safe bet to call the insurance agent and ask if the replacement cost value has gone up on your home or on anything in your home.

Remember that the financial market continues to increase and with this rates of building and replacement tools will go up, so there is no shame in calling to ask if the figures on your policy need to be changed.

If you have done any renovation of the home in the last year, such as replacing countertops or flooring, or even adding on a deck, it is important to inform the insurance company of these changes. This protects you from being underinsured in case of damage or loss.

If you have acquired any major purchases of personal property, it is also important to contact the insurance company about changing the coverage amount on your interior belongings. This could include major electronics equipment like an LCD television, a personal computer or laptop, an expensive piece of jewelry or fur coat, or even new furniture or a new piece of artwork.

It is also important to review your insurance coverage policy every year to determine if you have adequate peril coverage and liability insurance. Although some basic plans cover certain types of natural disaster and others cover personal liability, you may want to consider adding on specific insurance clauses for flooding, hurricanes, or tornados if you live in a high risk area.

If you started a plan out with little or no hurricane insurance but realized that the previous year brought major hurricanes to your area, then you may want to reconsider the amount of coverage. As well, some policies do not require homeowners to have personal liability insurance but this is a good idea if you are planning on having others in your home quite often.

This could include construction workers who are remodeling a kitchen or bathroom or even a babysitter or housekeeper. You will also want to change your policy if your children are starting to get older and invite over friends to play in the yard or to spend the night. Personal liability insurance will cover any accidents that happen while others are in your home.

One final reason to review your insurance policy each year is to assess discounts or possible price quote deductions that you may be able to receive. When you purchased the home it may not have had a security system installed, fire sprinklers or been equipped with up to date smoke and carbon monoxide detectors.

But if you have installed this equipment over the past year, it is a good idea to call and inform the insurance company to see if you this makes you eligible for a discount. You may also be able to receive a discount if you started receiving car insurance from the same company, turned a certain age, or began a membership to a certain club or organization that the insurance company recognizes and gives discounts to on a regular basis.