All Insurance Kinds

All Kinds of Insurance

2008-09-06T15:48:00.000-07:00

Insurance Coverage at a Glance

Insurance

The number of people who claim that insurance is something you cannot take a step outside without seem to be equal to the number of people who disregard the opportunities insurance offers and call it a mere waste of money. On the surface, insurance is something you can do without unless or until you have something to lose. Come to think of it, how many of us don't? Thus, the question is not whether to insure or not, but rather what insurance company and policy to choose.

In the situation of loss, you get reimbursement from your insurance company and thank yourself for being wise enough to have purchased insurance. In other words, insurance is there for you to provide financial support to cover your medical, social, personal or other services you might need in case the worst has happened.

Insurance allows for protection against possible risks to your life, health, property, etc and compensation for the effects of the insured event. Life, Health, Business, Property, Auto, Travel are some of the aspects in our daily life most people feel the need for insuring. Insurance is not only about costly premiums and your hope that nothing you insured yourself against will ever come your way. It is mostly about your insurance company striving to actually minimize the risks, following the legal contract with certain conditions both you and your insurance company agree upon.

The notion of insurance is based on the principle of insurable interest, which means that you are entitled to insure any event (article) only under condition that you find a financial interest in the event (article) insured. It is vitally important that you make your own research into insurance coverage, insurance plan, insurance policy and its types, and grasp how it works, as well as what can and what cannot be covered by your insurance.

Kinds of Insurance

— Life Insurance
— Health Insurance
— Dental Insurance
— Property Insurance
— Car Insurance
— Travel Insurance

Life Insurance

No matter whether you belong to an optimistic or pessimistic lot, life tends to answer both expectations. One of our biggest worries in life is the well-being of our loved ones. Life insurance is a guarantee that if the day comes when you can no longer care for the people you love, they will still be supported financially and taken care of.

Life insurance (life assurance) is a certain contract between you (the insurance policy owner) and the insurer, according to which the policy owner is paid a reimbursement in case the insured event occurs (i.e. the policy owner's death). You, as the policy owner, agree to pay a fixed premium on a regular basis. Life insurance deals with such insured events as death and accidental death, excluding suicide, war and some other factors from the insurer's liability.

Whether you are single, married, a single parent, a stay-at-home parent, a business owner with self-supporting children, retired, or fall under some other category, life insurance applies to all situations and should be seriously considered to fit into your long-term plans and budget.

Health Insurance

Health belongs to indisputable values. No one wants to get sick as no one wants to get into trouble being unable to afford expensive medical treatment when required. Health is as costly as valuable at all times, and especially nowadays. Along with proper diet, exercise, peace of mind and preventive care, health insurance is a wise and necessary investment into your health.

Health insurance is an agreement between you and your insurance company (a government agency or a private organization), according to which the insurer pays medical benefits that are referred to covered services in case you, as an insured person, become sick or accidentally injured. Your health insurance policy lists medical services that are covered as well as services that are not covered and which you will have to pay for.

It is important to choose the most suitable health insurance plan. Private Health Plans are usually offered at work by your employers. Medicaid is a health care plan funded by government for families and individuals with low income. Medicare is another government funded health insurance plan offered for people aged over 65. Health insurance coverage pays for routine visits to your doctor, lab tests and other not very expensive stuff; however the major reason why you should be covered by health insurance is to get protection against enormous expenses of potential illness or injury.

Dental Insurance

A happy smile showing good disposition and healthy teeth is characteristic of success and vitality. There is no use promoting regular dental care and visits to the dentist. We are all aware of their necessity and high dentistry costs. Dental insurance covers the costs of routine dental care along with accidental damage to your teeth.

Dental insurance normally pays for general treatment such as dentures and crowns, root canal work, bridges, as well as emergency treatment. Cosmetic work, implants and braces are usually excluded. Dental insurance means discounts on dentistry costs, selecting a dentist you trust, fast and easy approval process and other benefits that are so helpful and comforting when you are at the dentist's.

Car Insurance

In most states, it is illegal to drive without car insurance. Thus if you are a car owner, automobile insurance is a must. The right kind of car insurance is any driver's second thought, the first logically being the safety of their car. Car insurance makes such driver's nightmares as road accidents and car-jacking not so desperate.

Car insurance is a contract between you and your insurance company, in which you agree to pay the premium, while the insurance company agrees to reimburse your loss as it is stated in your insurance policy. The insurance policy provides different kinds of coverage.

Bodily Injury Liability is applied to injuries caused to someone in an accident by the policyholder. If you are involved in a serious accident, you will need good liability insurance in case you are sued for a large sum of money.

Medical Payments coverage pays for injuries the policyholder and his passengers can get in a car accident.

Property Damage Liability pays for damage you can cause to another driver's car. It can also include damage to other objects of property your car might hit, for instance fences, telephone booths, lamp posts, etc.

Collision Coverage pays for damage to the policyholder's car, which may result from a collision. It should be noted that even if you are to blame for the collision, the costs of repairing your car will be reimbursed to you.

Comprehensive Coverage will pay you for the loss due to damage by fire, explosion, vandalism, flood, contact with animals or theft. In other words, comprehensive coverage presupposes reimbursement for damage caused by forces other than another car or object.

Uninsured and Underinsured Motorist Coverage reimburses you in case you are hit by an uninsured or hit-and-run driver and will also be helpful if you are hit as a pedestrian.

Property Insurance

It is impossible to foresee the disasters, but it is possible to be prepared and protected. Property insurance does not prevent risks of fire breaking out in your house or your office burglarized, but it allows for sure recovery from any disaster outlined in your insurance policy.

Property insurance protects you against such risks as fire, storms, flood, earthquakes, other weather damage and theft. Consequently, we speak about specialized insurance forms covering you for different causes: fire insurance, home insurance, boiler insurance, earthquake insurance or flood insurance. Property insurance covers the costs of repairing damaged property or replacing the property you lost.

There are two major ways to insure property: open perils and named perils. Open perils are meant to cover all possible causes of loss. Common exclusions are war, terrorism, floods, earthquakes and nuclear incidents. In its turn, named perils cover a specific cause of loss listed in the insurance policy, commonly it is such events as fire, explosion and theft.

Travel Insurance

Traveling is one of the greatest pleasures of life, which makes it long-awaited and expensive. The more is the pity when things go wrong before or during your vacation. Besides your personal reasons you might suddenly need to cancel or postpone your travel plans, there are such things as trip delays, cancellations, interruptions, lost luggage, luggage damage, emergencies, travel agency bankruptcy, etc.

Travel insurance covers you for these unwanted challenges and provides reimbursement of the sum you invested in your vacation. For those who plan driving during their vacation, Car Rental Insurance may be very helpful, as your own Auto Insurance may not cover you in another country. No matter if it is your trip, your possessions, your luggage, or your health, the right travel insurance plan will save you money and nerve, and give you a chance to enjoy one of those greatest pleasures of life to the fullest.

Choosing an Insurance Company

When you know exactly what your insurance needs are, you should select a company which suits your needs best. It is a common mistake to regard an insurance company as a flourishing business with no direct control over the factors they claim payments for. The insurance industry supports programs reducing losses, preventing injuries and saving lives in order to hold down the costs.

Selecting the most suitable insurance agent or company for you, consider their experience with the particular insurance event you are concerned with, as well as their professionalism and stability. An agent or company representative should be able to provide you with a careful assessment of your insurance needs, and give you a selection of insurance products to meet your needs. Undoubtedly, an insurance agency or company you choose should guarantee advice, information and quality service in the case of loss occurrence.

Dental Insurance

2008-09-06T15:44:00.000-07:00

Dental Insurance

For most of us, dental procedures are a necessary evil. Very few lucky people have never experienced those unpleasant feelings at the dentist's waiting room and a slight shock at seeing the bill afterwards. However, even those few lucky ones face the necessity of visiting the dentist some time or other. Dental hygiene is far from being the only factor that influences the health of our teeth. Nutrition, genetic inheritance, general state of health, personal habits and stress, - all these things have a great effect on our dental health. In the society where a smile is a mandatory "dress code," the need for purchasing Dental Insurance or joining a Dental Discount Plan does not raise doubts.

It is likely that you get your dental coverage at work. If your employer offers dental coverage, try and find out if you have several types of dental plans to choose from. Most dental plans cover a maximum of $1000-$2000 of dental services per year, and you will have to pay for the rest of the dental expenses. If your employer does not offer dental coverage, you are advised to purchase an individual Dental Insurance policy.

Basic Dental Insurance coverage falls into three major categories:

Preventive and Diagnostic Dental Care

Nearly all Dental Insurance policies cover basic dental services such as checkups, x-ray pictures, cleanings, and some other procedures preventing tooth and gum disease. Since regular dental care prevents more serious potential problems, such coverage can be rather important.

Basic Dental Care and Dental Procedures

Basic dental procedures include fillings, fixing chipped teeth, tooth extractions, periodontal treatment, root canals, etc. However, with some Dental Insurance providers, some procedures can not be listed as basics, for instance, root canals. It is up to you to select a Dental Insurance provider who covers most items of basic dental care and dental procedures.

Major Dental Care

Major dental care usually includes dental surgery, denture work, orthodontics, and other serous expensive dental procedures. Some Dental Insurance plans cover a portion of major dental care costs.

Types of Dental Plans

Dental plans are contracts between the sponsor (an employer or organization) and the third party (an insurance company), according to which you can arrange your dental treatment into the most suitable pattern. Usually Dental Insurance plans do not cover the full cost of dental care. Dental care programs have some provisions that limit the amount the insurance company will pay. Common methods of payment limitation are deductibles, co-payments, and dollar limit programs. All limitations in dental coverage are stated in your dental coverage policy and appear to be the result of an agreement between the sponsor and the third-party. An average dental plan covers 100% for preventive measures, 80% for basic dental work, and 50% for major procedures.

There are various types of Dental Insurance plans ranging from covering only most basic dental care to complete all encompassing dental procedures. Indemnity, Dental Health Maintenance Organization (DHMO), and Preferred Provider Organization (PPO) managed care programs are the basic dental plan types.

If you choose Indemnity Insurance Plans, you agree to pay your insurance company an established monthly fee (around $14 to $26 per month), while your insurance company agrees to pay your dentist for dental services carried out. The policyholder is usually liable for 20-50% of the total service costs.

Dental Health Maintenance Organization (DHMO) is a pre-paid dental care plan, in which a fixed monthly fee goes to a participating dentist by DHMO for each patient assigned to the given dentist. The Dental Insurance policyholder may have to contribute to the cost of his/her treatment. These insurance plans normally deal with preventative and emergency care, thus varying from patient to patient.

According to Preferred Provider Organizations insurance plan (PPO), you can choose to visit dentists from a preferred supplier list at a large discount. With this insurance plan, you might pay about $25 per month. If for some reason you wish to apply to the dentist who is not covered by this dental plan, you can still get some discount, but not as much as when you stick to the dentists on the list.

Point of Service Plan (POS) is a Managed Care plan according to which a patient can receive treatment from a non-participating dentist at lower benefit levels.

Direct Reimbursement (DR): Using this type of dental plan, you choose your own dentist and treatment plan. After you have paid for dental treatment you received, you can submit the receipt to your employer for reimbursement. This is a straightforward plan that allows employees to avoid the complexity of lists, deductibles and paper work. However, this dental plan is often too costly for many small businesses.

Understanding Dental Insurance is important for both your health and your budget. You should be perfectly aware of what is covered in your policy and what is excluded, how much you will have to pay, what waiting periods there will be before your coverage starts working, etc. Most dental programs do not cover dental treatment solely for cosmetic improvements. Hospitalization is not usually covered either.

You can consult with your dentist not only about your dental care, but also about Dental Insurance claims. He/she can provide you with the necessary information and you will be able to prepare the claim yourself, or your dentist will help you by filing insurance claims for you. Dental coverage is there to help you reduce your dental expenses, but only your health and expert advice should be determinant in your dental treatment decisions.

Liability Insurance

2008-09-06T15:43:00.000-07:00

Liability Insurance

Understanding Liability Insurance

If future generations ever wonder what their predecessors' worst fears were, the fear to be sued would definitely rank high along with a few other most dreadful universal phobias. It is accepted to be always on the lookout for such risks. The more active and successful a person is, the greater his or her stress and fear can get. To tackle potential problems other people might bring, you will need Liability Insurance.

Liability Insurance offers protection against third party claims, which means that payment is maid to someone who suffers loss caused by an insured person. It helps protect you from being held responsible for physical or personal injuries to people while they are on your premises. Intentionally caused damage is not covered by Liability Insurance policies. On purchasing Liability Insurance you agree to pay the insurance premium. In return, your insurance company agrees to pay for expenses such as medical bills of the injured person, rehabilitative therapy, lost wages, etc. or pay money on your behalf to someone whose property you might damage. When you purchase Liability Insurance, you also get legal defense.

Frequent Liability Insurance examples are Liability Insurance for drivers, malpractice insurance, and business Liability Insurance. It is a common practice for car owners to carry Liability Insurance along with Comprehensive and Collision insurance, which protects them from losses they might cause if they get in accident. Professional Liability Insurance will cover loss from errors and negligence. Business Liability Insurance will protect your business from injury claims, advertising claims and property damages.

Liability Insurance saves your money and covers the injuries of others. However, the more coverage you need, the more expensive this insurance will get for you. Mind also that history of past accidents, malpractice or other faults greatly increases the cost of Liability Insurance.

Liability Insurance for your Business

Liability Insurance is a must for all businesses. Even if your business is not prosperous enough to make people want to sue you, Liability Insurance is essential. It covers injuries to your employees and customers as well as legal charges in case you are sued for injury caused to someone on your premises. Some Liability Insurance can cover you from claims of personal injury, such as libel or other abuse undermining your reputation. Even if you think your business does not involve anything in the least dangerous and you take all preventive measures, the right Liability coverage can be very helpful. Remember that you are obliged to pay for injuries and property damages caused by your employees. You may even be held liable for injuries that unauthorized visitors who enter your business premises might get. Thus, carrying Business Liability Insurance protects you from financial crash and eases nervous strain.

Types of Business Liability Insurance

General Liability Insurance (Commercial General Liability)

You need this coverage to protect yourself from injury or property damage claims. In the insured event you will have ample cover to protect your business.

Professional Liability Insurance

Carrying Professional Liability policy is often a legal requirement. It protects you from claims of your clients who suffer losses resulting from your malpractice, advice, errors or negligence.

Product Liability Insurance

If you produce and sell goods, service or repair works, Product Liability Insurance protects your business in the event your product causes injury or damage to another business or person. The level of risks as well as the amount of coverage depends on your business type and products you sell. Though the need for Liability Insurance is not so obvious with some businesses, the right policy can save a policyholder a lot of money in the long run.

Some of Business Liability policies include: Commercial General Liability Insurance (CGPL); Business Automobile Policy (BAP); Employers Liability and Workers Compensation; Manufacturers and Contractors Liability (M&C); Owners, Landlords and Tenants Liability Insurance Policy (Ol&t); and Physicians, Surgeons and Dentists Professional Liability.

Personal Umbrella Insurance

This type of insurance pays for causing harm to other people, and protects an insured person's assets. It provides coverage beyond your Homeowner or Auto policy and extends liability coverage when the liability protection on other policies is gone. If there is a young driver in your family or you are an owner of such assets as some recreational facilities, personal watercraft, or a swimming pool, the right Umbrella Insurance policy will give you the liability protection you require.

Comprehensive Personal Liability (CPL), Homeowners Insurance Policy, Personal Automobile Policy (Pap), Personal Umbrella Liability, and the Uninsured Motorist Endorsement comprise the list of Personal Liability policies.

Assessing your Liability Needs

Like any serious decision and investment, shopping for Liability Insurance requires a thorough research. You should consult organizations in your production sphere as well as small business owners to find out what types of liability coverage are often claimed for. It is important to learn the liability risks for your industry or business, take into account the recent legal actions in your industry area and evaluate the possible risks of being sued. Having determined what is necessary to insure yourself against in your current business situation, you should talk to your insurance agent or broker about the level of protection you need.

You should compare liability coverage to select the best available package of policies for you or your business. Since every person's and every business' needs are unique, finding a specialist broker with experience in your sphere or industry is well-advised.

Travel Insurance

2008-09-06T15:41:00.000-07:00

Travel Insurance

Before we set out for a trip, we usually have to answer many different questions. Some of them may be as simple as whether or not to pack that blue weatherproof jacket. Others require more concentration and knowledge to give the right answer. The questions of security and reliability always spring up when we have a good mind to travel far from home.

Most people tend to feel a little tense and nervous before leaving for their place of destination. It is natural to seek protection of health and travel investment. If a sudden change in plans, such as illness, accident, or other unforeseen circumstances occurs, you might have to cancel or cut short your travel plans. If you are not covered by Travel Insurance, you will face considerable financial losses, i.e. your travel investments and medical expenses not covered by your health insurance.

Most of your travel concerns can be covered by Travel Insurance. Illness, disablement or injury, legal issues and accidental death, emergency evacuation, flight cancellations, departure delays, loss, theft or damage of personal possessions are the common risks covered by Travel Insurance. In addition, we all have to admit that nonrefundable airline tickets, frequently occurring financial difficulties of major airlines and tour operators, along with political unrest do not make the situation with traveling less unpredictable.

Some travel activities in themselves may carry high risks and lead to additional expenses. Travel Insurance companies offer protection for the adventurous engaged in sports and extreme sports. They cover a variety of winter and water activities, like skiing, scuba diving, and even sky diving and bungee jumping. Taking into consideration the latest weather disasters, adding insurance cover for hurricane or floods can also be a wise decision.

Insurance companies will adjust your Travel Insurance policy in compliance with your requests and potential risks you might face during your trip. Having analyzed your intended holiday activities and risks you want to secure yourself against, make sure you purchase a Travel Insurance package which covers it all.

Types of Travel Insurance

Two major types of Travel Insurance include Medical and Disability cover and Non-medical cover. Medical and Disability cover deals with hospital and medical expenses overseas, loss of income due to illness or injury and death and disability expenses. Non-medical cover embodies lost and damaged luggage, theft, and cancelled flights.

As there are different types of travelers with their unique needs along with varied types of trips, Travel Insurance policies introduce at least six major types of coverage. The coverage and limitations of each type may vary depending on the given insurance company and policy.

Comprehensive Travel Medical Insurance will be helpful for people who don't have any medical insurance at home. Long-term travelers without their health coverage and citizens living and working outside their country of permanent residence should consider purchasing this type of insurance. It covers assistance in finding local medical help, emergency medical transportation, hospitalization and emergency medical and dental treatment, bringing a family member or friend to your bedside, consultation and monitoring by World Access medical staff, repatriation of remains, escorting children back to their departure point, return of vehicle, etc.

Emergency Travel Medical Insurance is recommended for people whose health plan at home doesn't cover them if they travel to another country. This type of insurance covers emergency services abroad. Check your existing coverage, as most health insurance plans in the USA may include their own provisions for emergency services abroad. It is a common practice for trips of less than 30 days.

Medical Evacuation Insurance is mostly for adventure travelers, cruise passengers and people who travel to enjoy their favorite sports activities, like trekking, scuba diving, etc. This insurance covers emergency evacuation to receive urgent medical treatment in the immediate medical facility or back in the United States, due to a bad physical injury or illness. Today, travelers get to very remote spots of the world and though such serious cases are seldom reported, it is easy to imagine that medical emergency evacuation back to the United States from, say, the Himalayas can cost $35,000 if an injured person is not insured.

Trip Cancellation and Interruption Insurance is the most common type of Travel Insurance. This insurance type covers non-refundable payments and the cost of getting home if a trip is canceled or interrupted due to unforeseen events. Typically, it covers you, a member of your family or your companion for illness, injury, or death. Some policies may also cover reasonable accommodations for travel delays, some essential items you buy if your luggage is delayed, and lost or stolen luggage. Most policies exclude trip cancellation in the event of war or terrorism, natural disasters, tour operator's default or travel to destinations which are subject to political unrest.

Supplier Default Insurance refunds deposits or payments you lose to the bankrupt airline, cruise line, tour operator or other travel provider. This type of Travel Insurance has become unpopular with many insurance companies since September 11, 2001, since the risk is considered too great for them to handle. If Supplier Default Insurance is offered, you will see that insurance companies cover only certain travel suppliers.

Rental Car Insurance is designed to cover damage or theft to a car that you rent as well as liability to other people you might injure or cars you might damage. Mind that your Auto Insurance coverage is in effect only in your home country, and if you are traveling overseas, find out the Auto Insurance requirements for the area you travel to.

Travel Insurance Tips

You can purchase Travel Insurance through a travel agency or some travel supplier. You can also choose to go to an independent agent or an insurance broker to take assistance in comparing the price quotes of various companies and getting the best deal. When you buy your holiday package or airline ticket through a travel agent, you will be encouraged to purchase Travel Insurance from an insurance company your travel agency cooperates with. You can also apply directly to some insurance company or consult with any insurance company you have other policies with. Adding Travel Insurance to a health policy you already own is cheaper. It is likely that an insurance agent will offer you Comprehensive Travel Medical coverage. You can get your Travel Insurance from your credit card or bank. However, those policies are often limited, and don't cover you from many serious risks on your trip.

Evidently, the more you invest in your vacation or trip, the more protection you require. Most of us cannot afford losing considerable travel investment, which is often non-refundable. However, Travel Insurance is not only for protection against financial loss. It also protects you and your family or companions from unforeseen circumstances on your trip, which ordinary insurance policies don't offer protection from. Getting more than one quote for your Travel Insurance means more coverage and more security. An opportunity to enjoy your trip leaving all your worries to insurers stands high, and it usually pays to feel secure covered by Travel Insurance.

Homeowners Insurance

2008-09-06T15:39:00.000-07:00

Homeowners Insurance

Homeowners Insurance Basics

Your home may or may not look like a castle. Whatever the case, that old saying is true: your home is your most valuable and expensive asset and should be protected. Homeowners Insurance (also called Home Insurance or Hazard Insurance) offers financial and liability protection of your home and possessions. You can also come across an abbreviation of HOI, which stands for Homeowners Insurance in the real estate industry. Basically, HOI is the type of Property Insurance that covers private homes.

You need Homeowners Insurance to cover the structure of your home, your personal belongings, the cost of living expenses in case your home gets damaged and you have to move to some other place for the repair works period. It also covers liability claims and health costs that result from property loss and injury caused to other people.

Purchasing enough Homeowners Insurance provides sufficient coverage necessary in the event of a total loss of your house and its contents due to disasters. It is also important that you are insured in case someone gets injured on your premises and sues you, or in case you or your family members cause damage to other people's property. Some policies also include damage caused by household pets.

Homes should be insured for 100% of its value so that in the insured event your insurance company will pay you the exact amount your house costs to rebuild it. If you don't have enough Home Insurance, you will be paid only some portion of your house's values, which may be insufficient for replacing or repairing lost or damaged property. The rule of 100% insurance replaced the earlier recommendation to insure one's house to cover 80% of the costs. While former statistics showed that the total destruction of a house was unlikely, recent statistical data of weather disasters and its devastating results demonstrates quite another picture. Note that your home's worth should be determined by the cost of replacing the structures and the contents inside the house.

Types of Homeowners Insurance Coverage

There are basically four types of Homeowners Coverage found in a standard Homeowners Insurance policy:

1. Coverage for the Home's Structure (Coverage A - Dwelling Coverage) and coverage for unattached structures such as garages, sheds and barns (Coverage B - Other Structures Coverage)

This coverage insures the structure of your home and other unattached structures on your premises from such perils as fire, lightning, explosions, theft, vandalism, snow, ice, smoke, accidental water overflow from your plumbing, damage from vehicles, falling objects and some other mishaps. Pay attention to possible coverage exclusions that might require additional endorsements or an additional policy to cover.

2. Individual Property Coverage (Coverage C - Personal Property Coverage) This coverage protects your personal possessions from the same perils as the coverage for the home's structure. Policyholders should make an inventory of their belongings, which implies recording of the serial numbers, dates and costs of purchases for the furnishings, jewelry, artwork, household appliances and other things. Inventories should be stored either in an incombustible safe or on a computer outside the building. The total value of the insurer's belongings is normally established at half cost of the home structure's coverage.

The cash value of the insured personal belongings in the event of property loss is the original cost of the property item, minus devaluation. If you bought most of your possessions a few years ago, their current depreciated value will be much less than the total sum it would take to replace them. Bearing this in mind, it could be wise to obtain an extra endorsement (Guaranteed Replacement Coverage), which can significantly increase this coverage. You may also need additional coverage in case you own expensive jewelry, fine artwork, antiques, collectibles, firearms, musical instruments, some costly equipment, and other items, which cost more to replace than the limits of your Specific Personal Property coverage allow.

3. Legal Responsibility (Coverage E - Personal Liability Coverage)

This coverage offers compensation for legal expenses and medical costs when you are found liable for damages or injuries to others on your property.

Insurance companies usually recommend $300,000 of the combined legal and medical expenses for a single occurrence. You can also choose to buy more liability coverage in the form of a Personal Umbrella Liability policy. Some insurance companies can include a Medical Payment Coverage section as well. For example, if a visitor suffers minor injury on your premises, Medical Payments Coverage would cover minor medical costs, such as exams and X-rays.

4. Coverage for Temporary Living Expenses (Coverage D - Loss of Use Coverage)

This type of coverage insures you for temporary living expenses, restaurant meals, car storage and even pet kennel expenses, for a certain period of time while your damaged home is being repaired or rebuilt. This coverage tends to pay up to 20% of the sum your home's structure is insured for.

Types of Homeowners Policy

There are several commonly used standard forms (policies) for Homeowners coverage:

HO-1 or Basic Coverage, is the type of packaged Homeowners Insurance policy meant for protection of home, detached structures, and personal property from losses caused by the following disasters and perils: fire or lightning, wind or hail, explosion, riot or civil unrest, aircraft, vehicles, volcanic eruptions, smoke, theft, vandalism or malicious mischief and self-damaging instances (e.g. damage by glass material that is part of the building, a part of the building falling, etc).

HO-2, or Broad Coverage, includes the disaster circumstances of HO-1, and adds some more specific disasters, like snow, falling objects, freezing of or accidental discharge of water from plumbing, heating, air-conditioning, or from within a household appliance, and electrical surge damage.

HO-3, or Special Form, is the most commonly purchased Homeowners coverage. It protects your home and unattached structures from loss or damage due to any peril except for specifically excluded ones. The only perils this form does not cover you for are flood, earthquake, war, and nuclear accident. Carefully read your policy to understand the exclusions. You may also wish to cover exclusions with additional endorsements.

HO-4, or Tenant's (Renter's) policy, insures your household contents and personal possessions (but not the building) against the risks of the HO-2 policy. It also offers additional living expenses coverage, medical payments, and liability protection. Renters do not own the building they live in, therefore they have no need to insure it.

HO-6, or Condominium Coverage, is similar to the Tenant's policy and offers broad coverage and liability protection for the insured condominium unit. This coverage is designed for condominium unit-owners willing to insure items not covered by the association policy. It does not cover the condominium structure itself, as the structure should be covered under a Special Condominium policy through a condominium association.

HO-8, or Older Home policy, is offered for older homes with historic value. Basic coverage from disasters is limited to repairs or cash values of the insured items. This policy does not cover rebuilding or replacement costs, since some parts of the home bearing historic significance can make these costs higher than their current market value.

The above-named policies can have variations. For instance, special policies are used to cover mobile homes. Besides Renter's Insurance that covers the renter's property within the building, there is Landlord Insurance that covers the dwelling itself, but not the property.

Explaining Homeowners Insurance Application

Get ready to provide your insurance company with all sorts of personal information when applying for Homeowners Insurance, i.e. the date of birth and marital status, previous addresses, your Social Security number, current occupation and employment history, etc. The insurance company will be interested in your credit, criminal and insurance history, as well as your "loss history" to determine what home insurance claims you have already made.

Then, many factors determine how much you will have to pay for your Homeowners policy, i.e. the amount of premium. Everything is important: the age of your home, its general condition, location, the square footage, the number of rooms, the number of people living in your house, what heating system is used, the proximity of your house to fire station, etc. If your house is located in a high risk area, such as a coastline, you will have to pay more. The owners of pools or trampolines should also expect to be charged more. In case you intend to rent a part of your house, or use your home for some business purposes, your liability will increase.

Along with cost-increasing factors, there are things you could do to save money. Everything that helps make your house safer belongs to cash savers in this case: removing trees and other objects from striking distance of your house, equipping your home with alarm systems, smoke detectors, deadbolt locks, etc.

The Homeowners Insurance policy is an extended and quite complicated document that requires an elaborate study and thorough understanding. The awareness of the protection your Home Insurance provides and exclusions it contains is a part of responsibility you take as a home owner.

An insurance professional will offer you assistance in determining your individual insurance needs. Co-operating, you will work out what type of Homeowners Insurance you need, what items will be covered and what will be excluded on your policy, the deductible and premiums you will pay for the coverage, how much it would cost to replace your home and belongings, and whether you need some special coverage added to the basic policy.

Life Insurance

2008-09-06T15:36:00.000-07:00

Life Insurance

Life Insurance is literally a matter of life and death, since purchasing Life Insurance is basically planning for after the death. When healthy and well, people from all walks of life prefer not to think that one day they would pass away. However planning for after the death may be as important as planning other significant actions in life.

Have you ever wondered how your loved ones would manage when you are no longer with them? There are plenty of things theAy may be dependent on you for. While your love and personal assistance are invaluable and cannot be replaced, financial support and an opportunity to pay debts can be an important way to show you care even after your death. Obtaining Life Insurance, you ensure that in the event of your death your family is taken care of.

Life Insurance will be most helpful to your family when they have to pay off credit card debts, mortgages, car loans, estate taxes, checks funding your children's education, etc. If your family's savings are insufficient, Life Insurance can provide support for legal, medical and funeral costs. It can even create an estate for your heirs.

Life Insurance is a policy provided by an insurance company, according to which in exchange for your premium payments, the insurer is obliged to pay a certain sum (a lump sum or portions of smaller sums) to your beneficiary (persons you choose) in the event of your death.

Types of Life Insurance

There are two major types of Life Insurance, each of which can be further broken down into several basic categories: Term Life Insurance and Permanent Life Insurance.

Term Insurance

Term Insurance is a temporary Life Insurance policy providing coverage for a specified period. It was designed to provide Life Insurance protection for fixed periods on a limited budget. Being a Term Life Insurance policyholder, you pay an annual premium to cover the risk of death. This type of Life Insurance has no cash value, i.e. no benefits are paid when the policy is expired or the insured person dies after policy expiration. If the insured dies during the specified period of time, his/her beneficiary will receive the value of the policy. Term Insurance is used by those seeking coverage for a specific need, which will have ended by a certain date in the future.

Renewable Term is Term Life Insurance type which can be renewed at the end of the specified term without evidence of insurability. Some renewable policies offer fixed premium rates for a fixed number of years, after that they are renewable at a higher premium rate. These policies are often purchased by young people who take an advantage of an inexpensive policy, however as they get older, their premium rates get more costly.

Level Term guarantees a lump sum paid on the event of death. This sum remains the same for the whole term period. The premiums you pay also tend to be level for a specified period. Level terms divide into annually renewable term, 5-year renewable term, 10-year term, 15-year term, 20-year term, 25-year term, 30-year term and term to a specified age, the most commonly purchased terms being 10, 15, 20, and 30 years.

Increasing/Decreasing Term policy is often purchased by those having financial obligations (e.g. a mortgage or a loan) that tend to decrease over time. In this type of Term Life Insurance, the amount of the death benefit protection decreases over the term period, while premium sums usually remain the same.

Convertible Term allows the policyholder to convert from the Term policy to a Permanent Life Insurance policy without additional evidence of insurability. The premium is based on the insured person's age and health at the moment when the policy was obtained, and the premium remains level for the term period.

Return of Premium Term Insurance (ROP) stands out as a special type of coverage. It combines low premiums for protection during specified terms with a guaranteed refund of the premiums you pay during the level term period, on condition the insured person is still living at the end of the term.

Some people get their Life Insurance through work. Usually Term Life Insurance that provides coverage for a group of employees is purchased by an employer or professional association. The costs of premiums for Group Life Insurance are typically lower than those for Individual Life Insurance policies.

Permanent Insurance

Permanent Insurance policies offer protection throughout your lifetime, and include an option of building cash value. This reserve of cash can be withdrawn or borrowed by the policy owner, often with favorable tax treatment.

There are several types of Permanent Life Insurance available. They differ in flexibility of premium payments, the way the cash value is invested and the death benefit guarantees. The following are major Permanent Life Insurance types:

Whole Life Insurance is a form of Permanent Insurance which covers you for your entire life, does not have to be renewed and does not expire provided you regularly pay premiums. The premiums for this type of policy remain level throughout the life of the insured. The amount of premiums in early years of the policy is considerably higher than in Term Life policies, which result in developing cash values. The cash value increases every year. You can take loans or withdrawals; however it will reduce the death benefit. Whole Life Insurance type is helpful to cover needs that do not tend to diminish with time, like paying taxes.

Universal Life Insurance has an advantage of more flexibility than Whole Life Insurance. It offers flexibility in premium payments and death benefits, as well as an opportunity to change both of them if circumstances change. The policy owner may pay premiums at any time in any amount. No matter whether you prefer to skip payments or to pay in lump sums, premiums must be sufficient to cover the cost of the policy and provide the death benefit.

Universal Life policies distinguish the protection element, the expense element, and the cash value element. You may also withdraw or borrow the cash value at any time. However, loans and withdrawals can reduce the death benefit and alter the performance of the policy.

Variable Life is a form of Life Insurance with a wider selection of investment products, including stock funds. The death benefit and the cash value are not predetermined or guaranteed, but fluctuate according to the investment performance of a separate account fund. The death benefit does not normally fall below a specified minimum. The policyholder pays a level premium for life.

Variable Universal Life Insurance has the premium and death benefit flexibility of Universal Life Insurance and the investment flexibility and risk of Variable Life Insurance. This policy type allows you to invest the cash value of the policy in some investment options and change the death benefit. Note that increases in death benefit may require evidence of your health.

Understanding your Life Insurance Needs

There are certain steps you should take when choosing Life Insurance policy. First off, you should determine your Life Insurance needs. They depend on such factors as your marital status, the number of your dependents, your financial obligations, your career, and basically the aims you pursue. Logically, the more responsibilities you have and the bigger your family grows, the more consideration you should give to Life Insurance purchase.

Life Insurance may be necessary as a part of your estate planning, as an essential means to support your dependents, as a way to pay debts, income taxes, or funeral expenses. How many people depend on you financially and what standard of living would you like to maintain for your survivors? Income replacement is the major reason why many Americans buy Life Insurance package. Long-term needs of your dependents have to be thoroughly considered: mortgage, debt pay offs, income for children, income for the surviving spouse, college education funds and probably some additional emergency fund.

If you are a single person with no dependents, the question of your Life Insurance needs may resolve itself to debts, credit cards or student loans, medical bills, funeral expenses, and supporting elderly parents depending on you for support. Purchasing Life Insurance at a young age is cheaper. If you are a single person with dependents, your Life Insurance consideration can be debts, expenses for your surviving dependents, education costs for surviving children, medical bills and funeral expenses. For couples with no children it is important to consider mortgage and car payments, as well as debts, medical bills and funeral expenses. Couples with children often need child-rearing expenses and their children education costs covered, let alone mortgage payments, debts, medical bills and funeral expenses.

After determining your Life Insurance needs, you should choose the most appropriate policy type for you. Since your needs may change as time passes, your Life Insurance program should also be regularly reassessed. You are recommended to review your policy every time there is a significant event in your life, for instance marriage, divorce, the birth or adoption of a child, a purchase of a house or business, income change, etc.

When it comes to purchasing Life Insurance, the choices are varied. It is important to make a research into insurance market, Life Insurance companies, types of coverage they offer and significant pricing differences. Your choice may be quite difficult as there over 1,500 Life Insurance companies in the United States offering various Life Insurance policies. Setting high standards for the financial solidity of insurance companies is a must when it comes to choosing the right insurance company and policy for you. And last but not least, shop to find the best combination of price and Life Insurance coverage benefits.

Health Insurance

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Health Insurance

Good health is a great asset. Radiant health has become a synonym of beauty, happiness and success, - everything people have ever strived for. We are concerned about our health, we do things for the benefit of our health, we restore and strengthen our health, and we even drink the health of people we care for. It is a universal custom to give and receive good wishes of health and well-being. Doing so, we realize that health is the most important and desired thing in life, and we generously wish our close ones good health for their lifetime.

Today, maintaining good health is getting more and more expensive. It turns out more expensive to have poor health though. Costly medical care, treatment and procedures, tests, medications, surgical and hospital treatment expenses tend to add headache to already existing health problems of a patient. Health Insurance is an efficient method to cure this headache.

You may not be able to afford expensive medical services when you fall sick without good Health Insurance. Health Insurance guarantees you that the insurer will pay the medical costs in the case you become sick due to covered causes or accidents. The US health system is practically based on Health Insurance that comes in a variety of options.

Types of Health Insurance

Most Americans use Group Health Insurance obtained at work. Usually, the employer pays a portion or all of the medical costs should his/her employee get sick. Group insurance is the least expensive Health Insurance kind. Some employers offer only one Health Insurance plan and some may offer a choice of plans. According to the Consolidated Omnibus Budget Reconciliation Act (COBRA), if you happen to change your job, you are entitled to carry your Group Health Insurance coverage with you to a new work place for the period of up to 18 months.

If you are a part-time worker or work for a small business, your employer may not offer Health Insurance, or you may find that your insurance plan is too limited. In this case, you have an option to get Group Insurance through membership in a professional association, labor union, or a club, or you can buy an Individual Policy.

There are basically two types of Health Insurance: Fee-for-Service (Indemnity) and Managed Care. Health Insurance policies may vary from low cost to all-inclusive, meeting different demands of customers. Which Health Insurance type and plan you choose largely depends on your needs, preferences and budget. Fee-for-Service is a traditional health care policy kind. As the name implies, insurance companies pay medical staff fees for each service provided to an insured patient. Fee-for-Service Health Insurance offers a wide choice of doctors and hospitals. Choosing any doctor you trust, changing doctors any time you like and going to any hospital in the country are some of the advantages of this policy type.

Fee-for-Service coverage falls into Basic and Major Medical Protection categories. Basic protection deals with costs of a hospital room, hospital services, care and supplies, cost of surgery in or out of hospital, and doctor visits. Major Medical Protection covers costs of serious illnesses and injuries, which usually require long-term treatment and rehabilitation period. Basic and Major Medical Insurance coverage combined are called a Comprehensive Health Care Plan. It is vitally important to know your insurance policy, since some services can be limited and some not covered at all.

The insurer does not pay all your medical bills. You pay a monthly premium and an annual deductible before the health plan starts paying part of your bills. After you have met your deductible amount for the year, you start sharing the bill with your insurance company. Usually, it is your 20 percent (coinsurance) and the insurer's 80 percent. Proceeding with the payment of each bill's percentage, you reach your plan's maximum. This is the time when the insurance plan will pay 100 percent of the covered medical expenses for the rest of that year period.

In order to receive payment for Fee-for-Service claims, you or your doctor will have to fill out forms and send them to your insurer. It is important to keep track of all your medical expenses, such as receipts for your medications, etc. If your major preference in choosing health care plan is flexibility and you have no strict budget limits, you should consider purchasing an Indemnity plan.

Managed Care

If choosing the most suitable Health Insurance plan your major goal is to minimize costs, a Managed Care plan may be the best option for you. The basic Managed Care principle is providing lower medical costs in exchange for more limited choice. There are three types of Managed Care plans: Health Maintenance Organizations (HM0s), Preferred Provider Organizations (PPOs) and Point-of-Service (POS) plans.

The major differences of Managed Care from Fee-for-Service plans lie within two facts: the number of doctors and hospitals who participate in managed plans is limited, and you have to either find out which plans include your specialists or learn which plans your specialists have already joined. The other aspect of no little significance is that in order to keep costs low, your chosen doctor is encouraged to supervise the types of services you get and might need to approve of a hospital or a specialist you have to see, thus depriving such plans of flexibility indemnity plans offer.

Health Maintenance Organizations (HMOs) plan has an advantage of low premiums. With HMOs plan, you select a primary care physician to service your health needs and refer you to other in-network providers when required. This health care plan pays benefits only when you apply to doctors and hospitals in the HMO network. Coverage for out-of-network services is usually provided only for emergencies. Preferred Provider Organization (PPO) is a combination of HMO plans and Fee-for-Service plans. Like in HMOs, PPO medical treatment is fully covered if provided by a doctor or hospital referring to the PPOs network. Insured individuals receive basic medical care and pay fixed premiums on a monthly basis.

Using PPO plan, you are not obliged to choose a primary care physician and do not require referrals in order to see other specialists. However, if you want to apply for medical treatment outside the plan's network, you will be paying more than people using health providers from within the PPO plan. Thus, with PPO plan, you will be able to choose between freedom of choice paying more medical bills yourself and an opportunity to recieve medical services at a lower cost from the network physicians.

Point-of-Service (POS) Plan:

If you decide to enroll in a POS plan, you will have to choose a primary care physician (PCP) from within the health care network who will supervise your health care. The primary care physician of your choice can make referrals to other providers in the plan and outside the network. If your physician makes a referral out of the network, the plan pays all or most of the bill. Members of POS plan can also refer themselves outside the plan. However, in this case your Health Insurance company will offer you only some portion of coverage. If you refer yourself to a health care provider outside the network and the medical services are covered by the plan, you will have to pay coinsurance.

With POS, you have more freedom and are not limited to HMO network providers only. Network care co-payments are quite low and there is no deductible. Paperwork for medical visits within the health care network is normally completed for you. However, there is a deductible for non-network care, and non-network co-payments are rather high. Employing doctors and services outside the network, you have to fill out the forms yourself, as well as send bills for payment, and keep an account of health care receipts.

Other Types of Health Insurance

Picking the right health plan for you, take into consideration some other, more specific Health Insurance types as well. They usually serve particular consumer needs and can be cheap or costly, depending on the policy. For instance, there is full-service Health Insurance, which covers all illnesses and allows treatment anywhere you choose, Catastrophic Health Insurance, Hospital Indemnity Insurance, Disability Insurance, Long-term and Short-term Health Insurance, etc. There are also Medicare and Medicaid, - federal Health Insurance programs.

Medicare is a public Health Insurance program for American retirees of 65 and over as well as for some disabled citizens. Medicaid is a federal program providing health care coverage for people with low income, disabled and families with dependent children. Each state normally determines who should be covered by Medicaid and what medical services should be provided.

Car Insurance

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Car Insurance

The importance of Car Insurance is not overestimated. Let's face it: owning and operating a car requires a great amount of responsibility and - Auto Insurance. You can't drive a car without a valid Auto Insurance policy, and if you are found driving without one, you will be severely fined or even sentenced to jail. Drivers tend to grumble about their Car Insurance monthly at policy renewal times and the only time they speak about their Auto Insurance more kindly is when filing an Auto Insurance claim if they get in an accident.

Most of us do not question the necessity of being covered by Auto Insurance. The statistics and common sense prompt us to be careful and forward-thinking. In the United States, within a five-year period over 25 percent of all car drivers somehow got involved in car accidents. Car crashes-related expenses of Americans amount to over $720 million annually. Every 13 minutes one person dies in a car accident. Every 26 seconds a car is stolen. We believe in your luck, but bearing all this in mind, safe driving and the right Car Insurance coverage are more than necessary.

Before you start shopping for Car Insurance, you are recommended to study your state's Auto Insurance requirements in order to learn how much coverage you need by law and then determine your own Car Insurance coverage needs that go beyond the legal minimum.

Types of Car Insurance

The major Auto Insurance types include:

Liability (Bodily Injury Liability Insurance and Property Damage Liability Insurance):

The only states that don't require liability coverage are New Hampshire, Tennessee and Wisconsin, and if you don't reside in one of those states, this coverage is imperative.

Liability Car Insurance protects your bank account in case you are liable for damaging the other person or his/her car. It covers any injuries or damages to property that you might cause during an accident.

In case you get in an accident and you are at fault for other people's bodily injuries or death, Bodily Injury Liability (BI) will cover medical bills, pain or suffering, loss of income of another party in an accident and a legal defense if they file a lawsuit against you. Mind that Bodily Injury Liability does not cover you or other people on your policy and is strictly limited to the terms and conditions of your policy.

Property Damage Liability (PD) will provide you with legal defense and cover you if you get in an accident and your car happens to damage someone else's property: another party's car, a house, a fence, or any other property. It is important to have enough coverage for the amount of damage your car might do to another party's property.

Collision: This coverage protects you regardless of who is at fault for an accident. It will pay for any repairs your car requires as well as for the replacement of its market value if after an accident your vehicle is beyond repair. The principle difference between Collision and Liability Insurance coverage is that Collision covers damage caused to your own car while Liability pays for damage you cause to the other party. Basically, the safer a driver you are, the less you need this type of insurance.

Comprehensive (Fully Comprehensive Insurance Coverage):

This is the most expensive optional coverage. However, finance companies and lessors require that the car owner insure their car fully comprehensive. This coverage pays for repair works or the replacement of your car if it is stolen or damaged. Comprehensive coverage protects against disasters, such as theft, falling trees, and most acts of nature, fire, vandalism, animal accidents, etc.

Many Car Insurance companies choose to insure only 80% of the value, refusing to cover 100%. It is done to prevent fraudulent losses of cars when some car owners just feel like recovering their fininacial position. Therefore, it is necessary to thoroughly scrutinize what is covered and what is not covered in your policy.

There are several other types of Car Insurance. For instance, Medical Payments Coverage pays medical bills and funeral costs following road accidents. Injured person (including cases when it is a pedestrian or biker) is covered regardless of who is at fault for the accident. Medical insurance may or may not include disability insurance and pain and suffering compensation. Personal Injury Protection (PIP) is very similar but can also cover the cost of care after the accident and up to 80% of lost income.

Uninsured or Under-insured Drivers Insurance pays any costs due to damage and injuries caused by a driver who is uninsured or underinsured. It also covers damages by hit-and-run accidents. This type of coverage is a good idea, taking into account that abut 17% of drivers fail to have an adequate insurance coverage.

There are also Glass Replacement Insurance, Towing and Labor Coverage and Rental Reimbursement Coverage, and other Car Insurance low-cost additions, which you can add to your policy as your situation requires.

Choosing the Right Car Insurance Coverage

Americans pay about a thousand dollars as their Auto Insurance premiums annually. However since individual Car Insurance coverage needs can be quite specific, Auto Insurance premium rates also vary. They depend on the driver's age, his/her driver's record, the type and the age of the car, the car's safety features, the driver's location and many other factors. It all counts: your occupation and the state you reside in, the neiborhood you park your car in, the density of traffic in the area you live and work, the cost of your car and whether you have had a history of accidents and offences. All these factors make up the actual sum of the premium you pay. When making up your mind as to what coverage to purchase, your ultimate goal is to shop around and get the best available cover at the best available price.

Remember that the declared value of your car at the time you acquired your policy may not be the exact amount you receive in the insured event. It is well-known that all cars go down in price and eventually worth less than their initial value. Thus, if you were involved in an accident and your car was declared a total loss, you should understand that in all likelihood you would be offered less than your car costed you. Many Insurance Companies will now offer you a replacement car of similar type, age and mileage to the one you have lost.

With many Insurance Companies it is possible to get a discount if you have two or more policies with them, and many companies offer benefits, such as a free courtesy car in the case your own car is non-operational due to an accident. However, logically, the more benefits your Insurance Company offers, the higher is the price that you have to pay. According to Consumer Reports, when you see that the cost of your premium runs up to 10% of your car's value, you should consider giving it up.

You may choose the most convenient form and time to finance your premium with monthly or quarterly payments, or you may pay every six months. However, the longer is the time between payments, the more it adds up the cost.

It is important that you thoroughly study and understand your policy, since some types of policy wording can be rather tricky. Make sure you know your policy well and ask questions before you purchase it. Normally, it pays to get as much insurance coverage as you can painlessly afford, since even the smallest accident and eventual slight damage might end up in heavy expenses.