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November 8, 2017, 11:26 am

What is Too Little Life Insurance? Too Much?

by: The Financial Blogger    Category: Insurance

If you are thinking about getting life insurance, or if you are evaluating a policy that you already have, you probably already know there are two main life insurance types: term life insurance and permanent life insurance. Both can provide coverage for the people in your life who would need help if you weren’t around any more. But both options are generally not right for each customer.

Without much forethought, it’s easy to get a life insurance policy that is too big, or too small, for your unique needs. In the first case, you can pay way too much money over the lifetime of your policy. In the other case, your dependents may not have the financial help they need when you pass on. These decisions have long term consequences. Do some reading, get some quotes, and obtain the best life insurance policy for you and yours.

Too Much Life Insurance

One of the most common causes for an individual having too much life insurance would be when they choose permanent life insurance, without actually needing it. There are variations to this model, but generally a permanent life insurance policyholder will 1) pay more money each month to ensure a death benefit to loved ones and dependents, no matter how long the policyholder lives, and 2) have money taken out of each monthly payment to save or accumulate cash value.

This savings component create a permanent life insurance policy’s cash value. Depending on the type of permanent life insurance you have, you might use this growing balance for income, to act as collateral for borrowing, or to increase the death benefit that will eventually go to someone you care about.

Typically, permanent life insurance policies are selected by people with estates, high net worth, those with complex investment needs, or those who want to make sure that their chosen policy benefits those who need it.

For all of these reasons, permanent life insurance can be a great option for many kinds of people. But for others, it may be a little too expensive and complex. This policy might seem like the only way to know for sure that your death benefit will have the effect you desire, but this assurance can usually be achieved other ways. Some of these people may be better served with more affordable and simpler term life insurance.

Too Little Life Insurance

37% of parents with children living at home do not have life insurance, according to the 2015 Bankrate Money Pulse survey. Among the remaining 63% that do have life insurance, one-third have less than $100,000 of coverage. That might seem like a lot of money, and it might be when considered as a lump sum. But $100,000 or less may not be enough to cover the living expenses of a people or people who have, up until this time, depended on you for their support.

If you find yourself in this situation, it’s time to get realistic about how much life insurance coverage your dependents, family, and loved ones actually need. For policyholders of term life insurance plans, additional coverage is probably more affordable than you think, and can certainly provide a better financial solution than insufficient coverage.

For people who purchased life insurance without thinking too much about the details, the end result is frequently too much, or too little coverage. If you haven’t bought life insurance yet, make sure you carefully consider your needs and the needs of those who will receive the death benefit of your policy. In the end, you can have just the right about of life insurance for your unique situation.

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October 18, 2016, 11:28 am

Tips on Caring on Your Pet Following Surgery

by: The Financial Blogger    Category: Insurance

 

Many people view their pets as family member and not just an animal they have been entrusted to take care of. There will come times in your life with your pet that they need you more than ever like following a medical surgical procedure. Getting an insurance policy for your pet can help to reduce the out of pocket costs you have during this time. Be sure to visit Pet Insurance U for a breakdown of the pet insurance policies out there.  In some cases, the animal that you care for will need to undergo surgical procedures to correct defects or injuries. Following the medical procedures, you will have to take extra special care of your furry family member in order for them to recover properly. Here are a few tips on caring for your animal following surgery area.

Confinement is Key

One of the first things that you need to do when trying to help your pet recover from surgery is to confine them to one area until you see how things are going to go. Usually, the vet will give you dog medicine when the surgery is through to help with their pain and discomfort. You never know how your pet will react to the medicine, so it is best to confine them until you see how they are going to react.

Monitor Food and Drink Closely

Another very important thing that you need to do when trying to help your pet recover from surgery is to monitor that amount of food and water they consume. The last thing you want is for your pet not to get the nutrients that they need in this vital time. You need to make sure that you feed the most vitamin rich food that you can in order to make sure that they recover as quickly as possible. You need to make sure that your pet stays well hydrated during this time as well because this will help them feel better.

Carefully Handle Them

Yet another thin that you need to be careful of when trying to help your pet recover is the way you handle them. If you have to move them for any reason, then you need to be very careful in order to not injure them or hurt them in anyway. You need to speak with your vet to get an idea of how to handle them during the post op portion of their recovery. The more you know about the proper handling techniques, the easier it will be for you to ensure their health and well-being.

 

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April 19, 2016, 7:11 am

Protect your Hog: a Motorcycle Insurance Comparison Guide

by: The Financial Blogger    Category: Insurance

One of the caveats of riding a motorcycle is that riders face a higher risk of getting into an accident when compared to drivers of standard cars. Yes, there is nothing that can compare to riding a motorcycle on an open road with the wind hitting your face, but you have to remember that you’re also subject to a greater amount of personal risk due to the lack of sufficient protection from external forces. Motorcycles are also harder to control when compared to a standard car, which is even more apparent during hazardous road conditions, such as when it rains or if there’s snow on the road. If you use a motorcycle on a daily basis, you need to know about the different types of insurance plans out there and which ones would be the most suitable for your needs.

 

Comprehensive Physical Damage Insurance (CPDI) for Motorcycles

While most states require a motorcycle rider to have some form of liability insurance, what happens when your bike gets damaged in a non-accident related event? Instances like this occur not as a result of the actions of the motor vehicle owner; rather, because of external events outside of their control. For example, hitting a deer is considered a frequent motorcycle accident in Georgia, especially during night biking. Theft and vandalism of particular motorcycle models is rampant in Los Angeles. Severe weather and hail are also other common external culprits behind why bikes get damaged. If you live in a state where these incidents occur, it is highly recommended that you acquire comprehensive physical damage insurance for your motorcycle since this can help immensely in paying for damages to your bike.

 

Collision Insurance

Collision insurance is another type of insurance that you should consider getting since it involves damage resulting from hitting another vehicle. This type of insurance will either help you pay your bike repairs or give you the equivalent cash value of your motorcycle in case it was damaged irreparably during the accident. Do note though that the cash value uses the current value of the bike based on usage. The present value is calculated using the number of years that the bike has been in use, divided by the estimated lifespan of the motorcycle. The percentile outcome of the calculation is the amount that the insurance covers.

 

Bodily Injury Liability Insurance

This type of insurance covers the medical bills of the injured party during a motorcycle accident. For example, if you suddenly lost control of your vehicle and hit a pedestrian, their medical bills would be covered by your liability insurance. However, bodily injury liability insurance does not cover your medical expenses. If you also sustained injuries in the accident, you will need to rely on your personal health insurance coverage to pay for the treatment of your wounds.

 

Nearly all U.S. states require liability insurance for motorcyclists. Before you consider any other type of insurance package, you should have a good liability insurance plan in place. Without it, you’re likely to be sued by the person you accidentally hurt, and this can lead to a lengthy, expensive court case.

 

These are the top three types of insurance that all motorcycle riders should at least consider before using their hogs on the road. If you want a more extensive motorcycle insurance comparison, you can visit sites like CoverHound, which shed further details on other types of motorcycle insurance available. Medical payments insurance and uninsured motorist coverage for motorcyclists are some of the other insurance options that could be useful depending on your needs.

 

Should I get them all?

The best possible scenario for any motorcyclist is to have a comprehensive protection package that includes liability, replacement, accident and physical injury insurance. However, not everyone can pay for such a thorough policy. You should first get liability insurance, and then accident insurance, since this helps to cover the most common incidents that you’re likely to encounter. More extensive insurance plans can be added on an “as needed” basis depending on your perceived needs.

 

Just remember, while riding a motorcycle down an open country road is one of the best experiences imaginable, you should not be reckless in traveling without any form of insurance.

 

While some of these insurance plans are optional, hopefully this comparison guide has enlightened you to the different types of policies available. Remember, don’t be foolish and leave home without a proper insurance package. You may think that you’re an excellent rider, but accidents can happen to the best of us, no matter how careful we are.

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February 26, 2016, 3:08 pm

Most Affordable Life Insurance on Fixed Income

by: The Financial Blogger    Category: Insurance

If you are on a fixed income, your options are limited as far as life insurance policies go. The most affordable life insurance for you is always the one you can get earliest at the best price. This article will discuss some of the ways in which you can get an affordable life insurance policy while on a fixed income.

Term Life Insurance

A whole life insurance policy is only worthwhile if you are already extremely young and likely won’t meet your end for some decades. This is because you will be entitled to the lowest premiums.  Never wait to take out life insurance because the longer you wait the more it will cost you. For most people, term life insurance offers better value for money as it only covers a set number of years. This set period is enough for the majority of people thinking about AARP life insurance.

Shop Around

It seems like the most common piece of advice around, but it remains the best form of advice around. Always shop around for the best deals because the premiums differ between every insurer. You will find that even five local insurers can have wildly different prices. This is down to the way insurance costs are calculated. It’s all about calculating the amount of risk the company takes on by insuring you. Each insurance company lends different weights to each point, such as whether you smoke and what sort of health complications you’ve experienced in the past.

Financial Stability

Generally, you want the best prices. But you also want to make sure the insurance company is going to last out the policy. The insurance industry is more crowded than ever before. There are more new insurers than ever before. They may offer more affordable policies, but there are no guarantees they are still going to be there twenty years from now. Stay on the side of caution and go with a company with a solid reputation of success.

The Name of the Game

In order to get affordable life insurance on a fixed income you have to go out of your way to shop around. Make it clear what your income is using an online calculator so only policies you can actually afford come up. This will save you a lot of time and effort. Finally, remember to call the insurance company to double-check the terms and conditions and to ensure the offer is still valid.

 

 

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January 19, 2016, 8:47 am

Making Sense of Online Insurance Comparison Sites

by: The Financial Blogger    Category: Insurance

 

With CNN echoing what a lot of us have long felt – that insurance premiums are seemingly getting higher with each passing year – it’s become increasingly more important to comparison shop car insurance quotes before you finally settle on a coverage. And thankfully today, it’s much easier to research car insurance costs than ever before. The Internet is packed with solid car insurance comparison websites that can help you find the right coverage at the right price – no matter your type of vehicle or situation.

 

Let’s make sense of online car insurance comparison sites below.

 

Using Insurance Comparison Websites

While shopping online for car insurance, it’s critical that you input the right information. Quotes are only as accurate as the information you provide, and so it is important that you enter your details carefully, and not just rough estimates. Once you feed in your details, you will see a number of car insurance quotes. These are mainly listed from the cheapest to the most expensive. As you review your online quotes, here are a few things you should be on the lookout for:

 

  • Does the quote include a discount for purchasing online?
  • Does the quote only apply to new clients and not existing ones? – This is especially important if you find that the cheapest quote is with your existing insurance provider as this rate may not be valid for you.
  • Does the quote have a no-claims discount?

 

Many online car insurance comparison sites offer the ‘basic’ insurance policy so it may not have provisions for no-claims benefit, legal expenses or windscreen cover. If you want to cover these risks, go for comparison websites that list offers beyond the minimum and basic policies.

 

Price isn’t Everything

It’s easy to get attracted to the cheapest coverage you see, especially when you’re comparing several car insurance quotes online. However, purchasing cheap coverage may cost you more in the long run if your policy does not provide the extent of coverage you need. Compare the quality of coverage as well as the price. Quality insurance comparison sites allow you to compare the benefits of each policy by factors such as:

 

  • Whether windshield coverage is included
  • Whether you get a discount if you pay by direct debit
  • Whether a courtesy vehicle is included

 

Car insurance shopping means striking a balance between the cost and quality of the coverage. Make sure that you consider all the benefits that are important to you, and remember that most car insurance comparison websites only acquire quotes from a small subset of insurance providers.

If you want to get the cheapest car insurance, you have to gather quotes from multiple car insurance comparison websites and compare the quotes from the insurance providers and not the comparison sites. Then you can go for the cheapest option that offers the coverage you want.

 

When you use most online comparison sites, you will click through to the insurance provider’s website to complete a purchase. However, there are other sites that offer full service purchasing within them, like CoverHound’s auto insurance quotes online comparison site. But regardless of the comparison or insurer site you use, there’s a good chance they’ll try offering you add-ons before you check out. Be weary of these add-ons. Make sure there are no other alternatives and that you actually need them before purchasing.

 

Know How the Website Makes its Money

Most comparison websites are not in the business of selling the products themselves; they will usually show you prices and details from insurance providers, and make their money either by:

 

  • Charging for advertisements that appear on their site
  • Charging for sponsored listings – some companies are likely to pay to have their insurance products appear at the top of the search results
  • Charging for click-throughs where a site will earn a commission when a website visitor clicks through to the insurance provider’s website and successfully purchases a product

 

Of course, as we mentioned above with CoverHound, this is not always the case.

 

How to Use Comparison Websites

  1. Know the type of policy and coverage you want. Use comparison websites to get insurance quotes, and not to find out the quality of a policy. Once you have an idea of the policy coverage you want, you are in a better position to find a great deal on comparison sites.
  2. Look at the pre-filled answers. Comparison websites make assumptions to make the process of finding quotes easier for you. This includes the use of pre-filled answers for a standard set of results. Always make sure that the details are right, or you may find out that you are not covered when you make a claim.
  3. No spam. It is your right to opt out of email and other marketing by ensuring that you check or uncheck related boxes. If you don’t, you are likely to get both phone calls and marketing emails, so read every page carefully.
  4. Check before your purchase. When transferred to the insurance provider’s site, always verify that all information is correct. Doing this ensures that you are purchasing the right insurance coverage.

 

 

 

Finally…

Read policy documentation before you purchase. If the documentation is not included in the car insurance website, go to the insurance provider’s website. If no information is available, don’t buy the coverage. You need to make sure that your insurance coverage does cover when you make a claim.

 

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