Understanding Senior Life Insurance And How To Make A Good Choice

February 8, 2018 by Mary Fernandez Tagged life insurance, term life, whole life

Life Insurance – How to Choose

When looking at life insurance options, the choices available can seem bewildering and hard to understand. Most people have a problem determining where they should be starting. When you start looking at life insurance, you need to start by asking yourself a deceptively easy question: Do you need to have it?

funeral-life-insurance

Providing a detailed answer to this question will help you determine the type of insurance that you should get, if you are going to get any. The second thing you’ll need to understand is, how does senior life insurance work. If you determine that you are going to get it, the next step will be to learn about the different types available. This will help ensure that you are buying the right policy for your needs.

Do You Actually Need Life Insurance?

Your needs will vary from other people depending on your personal circumstances and the people who depend on you. If you do not have anyone dependent on your, you may not need to have life insurance. Additionally, if you do not provide a significant portion of your family’s income, you may not need to get life insurance.

However, if your salary is vital to supporting your family and paying recurring bills, you should consider life insurance. This is important because the insurance will ensure that the financial needs of your family are covered in the event of your death.

How Much Life Insurance Do You Need?

There is no rule of thumb when it comes to the amount of insurance you need because this depends on personal factors. The factors that you need to consider include your other sources of income, your debts, the dependents you have and your lifestyles. While there is no rule of thumb, there is a general guideline that you may find useful.

Consider getting a policy that is worth 5 to 10 times your annual salary in the event of your death. When looking beyond this guideline, it’s recommended that you speak with a financial planning professional. They will be able to better determine the level of coverage that you need.

The Types Of Life Insurance Policies

There are many different types of policies out there. This will include whole, term, variable and universal life insurance. It is important that you understand what each has to offer you.

‘Whole life’ will be a death benefit as well as a cash value insurance. The problem with this insurance is that it will cost more than the other types of insurance. With traditional whole life policies, your premium will remain the same until you have paid off the policy. The policy will be in effect up to your death, even once you have paid all of the premiums.

The reason why this insurance is so expensive it the large commissions and fees which limit the cash value of the policy in the early years. These fees are usually built into a rather complex insurance investment formula which leaves most people unaware of how much of their premium is going into their agent’s pocket.

‘Variable life’ is a form of permanent life insurance and builds up a cash reserve that can be invested in the options provided by the insurance company. The value of the cash reserve will vary depending on the success of the investments that are made.

When looking at universal life insurance, it is important to note that you can vary the amount of your premium. These policies will allow you to use part of the accumulated earnings from the policy to pay part of the premium costs. With these policies, you can also vary the amount of the death benefit. As you are getting a lot of flexibility with these policies, you are going to have to pay a higher administration fee.

There are some experts who state that if you are under 40 and do not have any family history of life-threatening illness, you should look at term life. This type of insurance will offer a death benefit, but does not include any cash value.

The Costs Of Life Insurance

When looking for the least expensive coverage, you should look at the group coverage offered by your employer. These policies will generally be term policies and will only offer you cover for as long as you are working for that particular employer. Upon termination, you could convert some of these policies.

When looking at the cost of other kinds of life insurance, you will note that the costs vary greatly. The costs will be affected by the type of policy you choose, how much you buy, the commission paid to the agent and the underwriter’s practices. The underlying costs of this insurance are based on actuarial tables that determine your potential life expectancy. High-risk people like those who have a dangerous hobby, are overweight or smoke will have to pay a lot higher premiums.

There are also generally large hidden costs in these policies. These hidden costs will include large commissions and fees. The problem is that you will only find out about these costs after you have bought the policy.

There are many different types of life insurance and a lot of companies that offer this.

It is recommended that you use a fee-only insurance agency, such as Senior Services, who will research the different policies for you for a fixed fee.

Your agent should not be affiliated with any one insurance company and should not receive a commission for any policy.

Top 10 Tips for Finding the Right Car Insurance

February 7, 2018 by Mary Fernandez Tagged auto insurance

Top 10 tips for Finding the Right Car Insurance

The rise in gas prices has affected the cost of owning a car.

This is why it is a good way to look for other ways you can cut related operating expenses.

The perfect place to start with this is car insurance.

automobile-accident

Insurance is a must have for all drivers, but many people tend to pick the first insurer they come across after buying the car and failing to look the details of the policy for years, which means they are pouring money down the drain. Here are some great ways of finding the right policy and cut your premiums.

1. Do a yearly rate check.

Find out the rates of other companies so as to ensure you are getting the best possible deal. You will find Insurance Departments in many state offering guides to available services, and you can easily find comparison tools online. You won’t be able to get your personalized immediately and you will need to call an agent, but doing a comparison online can be an easier way of finding the best deal for you.

2. Choose a top-rated insurer.

We did a survey with our readers on their car insurance and we were able to find companies that had good ratings did well, but there were some other that were better in some areas example payments, claims, etc.

3. Maintaining a good credit.

Do a regular credit check so you can see your score because having a low score might prove advantageous to you because it affects the premium.

4. Set the right deductible.

Having a higher deductible will reduce your premium, but you will need to pay out of your pocket if an accident happens. If you have a good driving record and haven’t been in an accident or it was not your fault, then you should gamble and opt for a higher premium. You can expect to make up to 40 percent in savings by using this strategy.

5. Review your coverage.

Check and ensure there is enough liability coverage for property damage and bodily harm. With time, the risks and costs will increase, and this should be the case with your coverage. Going for a minimal coverage will mean minimal protection.

6. Report reduce in mileage.

If you have changed your job, working now at home, or become unemployed, call up your insurer. You can qualify for less premium when you drive less.

7. Watch crash repairs.

Find out where the insurer sends you when you need repairs. A repair shop might be able to push you into using cheap replacement part instead of the original equipment made by the manufacturer (OEM parts). Non-OEM parts have been shown to fit poorly, don’t meet the federal safety standards, and prone to rust.

8. Choose the right car.

Another factor that will affect how much you are paying for insurance is the cost of repair and vehicle damage. When you are buying a new car, check and compare data on collisions by vehicle model. You can visit http://www.iihs.org/ so you can find this information. The dealer should be able to provide you with a booklet that has information or collision insurance cost as produced by the National Highway Traffic Safety Administration. The estimated insurance fees are considered a part of the owner cot information consumer Reports you can get online for all models of cars.

9. Beware of scams.

There are crooks out there ready to stage accidents, and this can lead to a claim against you. In order to avoid being in such a situation, you should always follow the good diving practices, and if you are involved in a crash, immediately start taking photos and call the police to report it.

10. Ask about discounts.

Discounts are easily available for those seen by the insurance company as lower risk or those who choose to go for the driver-training course. Installing safety equipment will also help in reducing insurance costs. Bundling your home and auto insurance is another way you can save, but you should first check the costs of separate and bundled then choose the option that is cheaper.

10 Tips on How to Choose Home Insurance

February 6, 2018 by Mary Fernandez Tagged home insurance, home policy

10 Tips Regarding Picking Your Home Insurance

girl at home on couch

1) Shop Around For Coverage Options:

When you own your own home, you might be required to get homeowners insurance by your mortgage lender. In order to find a potential policy, think about getting a number of different quotes. Make your comparison from various home insurance providers so you can assess their deductible, limits, and coverage. Be certain that you’re not sacrificing any of your protection just to get a cheap price. Given that you’ll eventually communicate with your insurer in moments of stress, think hard about choosing a company with reputable customer service that’s available for support 24/7.

2) Look Up The Ratings Of Every Company:

First Hand Insurance is a premiere source of objective and third-party ratings of nearly any insurer operating inside the United States. The rating analyses done usually involves both comparing a business to other companies as well as evaluating them in terms of general industry standards. In short, it assesses how an insurance provider is able to meet client obligations, like paying out claims. This can bring you peace of mind as you choose your homeowners insurance. For example, you might like to know that First Hand Insurance has earned an A+ reputation and rating.

3) Be Mindful Of The Location:

If you’re currently in the market for a home purchase, consider that its location might have a strong influence. This could strongly affect how much you’re going to pay for your home insurance. For instance, if the house sits in a small town that relies on volunteer firefighters or the nearest fire station isn’t within 5 miles, you might start seeing rates go up. Premiums might also be more for a house in a region or geographical spot susceptible to various natural disasters, such as tornadoes or wildfires. Crime rates and construction or renovation costs can also be regional factors that impact insurance rates.

4) Take Advantage Of Available Discounts:

Many businesses offering homeowners insurance also offer discounts for any behaviors that might mitigate risks, so why not take advantage of them? Water safety systems, burglar alarms, smoke detectors, and storm shutter installation are all things that might save you money on your home insurance coverage premiums. A handful of homeowners insurance providers, such as [Example Company], also offer discounts to consumers that are buying a new home. You can also improve your rates by boosting your credit score. When your credit score is higher, then your perceived risk is not as great.

5) Get Online:

Going online is by far the most efficient way of starting your research. Just go the search engine you trust and type in the query “homeowners insurance quotes” to start filling your screen with useful information and choices. Additionally, a number insurance companies actually started and grew up online, meaning that they offer folks like you affordable and convenient ways to both purchase and then manage your policy.

6) Know What The Costs Are:

Keep in mind that you need your home insured not for market value but for replacement cost. Market value is what someone would pay for your home, whereas replacement cost is more about what expenses would be necessary to rebuild or repair the home in full. Consider various costs that might be involved, ranging from inflation to transporting materials to the home site.

7) Compare The Potential Deductibles:

As you begin building up your policy, you finally get to set things like the deductibles your homeowners insurance comes with. A deductible is what you would personally pay out of pocket for any claim. Higher deductibles can mean you get lower monthly premiums, but you’d also be shelling out more of your own money before you see your insurance company pay anything out. On the other hand, lower deductibles mean you pay less from your own pocket in the event of a claim, although your homeowner rates are going to be higher every month. Both cases have their benefits and drawbacks, so it’s up to you to weigh the various pros and cons while you consider your individual circumstances and financial security.

8) Get To Know Your Home:

If you just bought your home not so long ago, be sure that you get a full claims history report from whoever is selling it to you. This particular report should detail previous home damage, including floods, fires, and other incidents. You can get a good clue about the frailties of the home that might raise your homeowners insurance rates. You might even find things that make it hard for you to get insurance in the first place. The biggest database the insurance industry uses is the Comprehensive Loss Underwriting Exchange, which provides you a history of damages to your home that might have resulted in claims filed.

Disclosures will outline the dates of payouts, the kind of claim, and the amounts involved, along with other pertinent or useful information. Your premiums can be impacted by factors like the age of the plumbing, electrical, or other components, so getting as much information as you are able helps you gauge possible issues and complications. Keep in mind that a newer home is often going to be in far better shape than an older one, meaning that they are quite often cheaper to insure.

9) Answer All Questions With Integrity And Honesty:

When you get your quote and are sifting through home insurance coverage options, it is crucial that you be honest. Your future insurance provider is going to give you far more reliable coverage and protection when they have accurate information. For instance, consider the possibility of a kitchen upgrade because you’re dying to have a new back-splash. Your home value is likely to see an increase, so your coverage ought to reflect that in order to keep your protection current. In a similar vein, should you intend on a home office, then you need to make sure your liability coverage is appropriate. For example, should a client visit and slip on a vinegar floor solution that you didn’t towel dry up, may end up in a law suit. Giving incorrect information doesn’t just lead to inaccurate quotes, but even risks insurers canceling your very policy.

10) Know What Your Coverage Is:

Unfortunately, the number of homeowners who do not understand their very own coverage happens a lot more than you think. If you think about it, it’s actually rather understandable. A run of the mill homeowner’s insurance policy is quite the complex piece of reading. Often outlining many various nuances of what is and is not covered, and it’s never exactly a turn-pager you can’t put down.