Tuesday, May 28, 2013

What Should You Think About When Getting Teen Auto Insurance?

There are many things you should think about when you are purchasing teen auto insurance. Many things you should think about are paying annually, the type of car your teen is driving, adding a named driver, and more.

Finding cheap auto insurance can be difficult. So your teenager finally got their driver’s license and you now need to find them good insurance. There is a Pass Plus exam that is offered right now. The Pass Plus is an intensive driver’s training course that is aimed at teens and new drivers becoming better drivers. When a teenager passes this exam you will automatically receive a 35% discount on your auto insurance. This is a big deal because teenagers are very expensive to put on your insurance.

The car your teenager drives will make a big difference to what your premiums are for them also. You can find the lists on the Internet which cars are the most expensive to insure and which cars are the cheapest to insure. If the car is not on the highest stolen list then it will be cheaper to insure for your teen. The theory is that the cheaper the car is then the cheaper the teen auto insurance will be.

Although you are looking for cheap auto insurance you also need to realize you must have the appropriate coverage for your child. Statistics show that teenagers have more accidents than adults because they have less experience driving. This is a proven fact. If your child is in an accident you should be sure that your insurance will cover the damages your teen may have done to the other vehicle. You don’t want to have an insurance claim that you cannot afford to pay and your insurance didn’t cover. Be sure of all of the coverage you have opted for your child. Don’t be looking for only the cheapest because this might put you in a bad position.

If you have a teenage daughter then you are in a little bit of luck. It is proven that girls and women get in less accidents then teenage boys and men. Because of this statistic, females are cheaper to insure. However, just because of the gender doesn’t mean that the insurance will remain at a low rate.

Maintaining a low auto insurance rate for your teenager also means that they are driving without being pulled over for traffic violations. The first ticket is usually a freebie and your teenager will be sent to defensive driving school. That is of course if the violation is something simple like speeding. Your rates will begin to drop every six months as your child drives without any tickets on their license. If your teenager begins to get tickets and pulled over then your insurance rates will begin to increase and you may not be able to afford to insure them.

When you are looking for cheap auto insurance for your teenager you need to think about many things. Consider the type of car your teenager will be driving and be sure your teenager is driving responsibly not getting pulled over.

Monday, May 27, 2013

Exclusions in Life Insurance

Life insurance policies also contain certain exclusions or restrictions. The main exclusions are:
  • Suicide Exclusion. Initially, life insurance contracts excluded suicide entirely. But this exclusion left dependents without protection, which defeated the purpose of purchasing the coverage. Also, it was incorrect to exclude suicide completely, because death by suicide is included in the mortality tables upon which premiums are based. So, the majority of life insurance policies issued today contain a time provision (usually two years) that restricts liability in the event of suicide. Although, occasionally, it is only one year or less. A typical provision is that in the event of suicide within this period, the liability of the company shall be restricted to an amount equal to the total of premiums paid, without interest, less any indebtedness.
  • Aviation Exclusion. Aviation exclusions are rarely found in life insurance policies, but among the types of aviation restrictions still in existence are: 1) exclusion of all aviationcaused or -related deaths, except those of fare-paying passengers on regularly scheduled airlines; 2) exclusion of deaths in military aircraft only or death while on military
    maneuvers; and 3) exclusion of pilots, crew members, student pilots and (sometimes) anyone with duties in flight or while descending from an aircraft (for example, parachuting). Companies that use these restrictions will usually cover you in the event of a civil aviation death for an extra premium. The exclusions or restrictions apply only to those
    unwilling to pay the extra premium.
  • War and Military Service Exclusion. In wartime, it’s common for companies to limit the death benefit paid to a refund of premium, plus interest—or possibly an amount equal to the policy’s cash value. Also, the policy’s benefits often are suspended during a war or an act of war. There are two types of restrictions or clauses that may be used: 1) the status clause, which excludes the payment of the death benefit while you are serving in the military; and 2) the results clause, which excludes the payment of the death benefit if you are killed as a result of war.
  • Hazardous Occupations and Avocations Exclusion. By today’s underwriting standards, few applicants are declined life insurance because of their occupations. Much of the underwriting attention in this area focuses on avocations or hobbies. If you participate in a hazardous hobby— such as auto racing, sky diving, scuba diving, etc.—then the amount of insurance you can get may be limited, or you may have to pay an extra premium. And the death benefit may be excluded if your death is a result of the hazardous avocation.

Sunday, May 26, 2013

What Do Flying Risks Mean? (part 2)

When losses occur in airline travel, they tend to be catastrophic. Even if the loss results from pilot error or mechanical failure (instead of terrorist attack), the end is usually the same: few, if any, survive. In these cases, health insurance or disability insurance—both worthwhile concerns when it comes to car risks—aren’t important.

There are many formulas for calculating how much life insurance a person needs. But, from the income-replacement perspective, there are two calculations that work for most people:
  • replace five years of the insured person’s earned income; or
  • pay off mortgages, car loans, consumer debt and other debtsrelated to daily living.

Basic term life insurance will usually cover these needs. Term is the least expensive form of life insurance in most situations.

Some people are tempted to increase their life insurance coverage or buy special insurance if they know they are going to be flying a lot—for business or pleasure—during a given period of time. However, travel life insurance (often marketed through airport kiosks or some on-line travel services) is usually not a very good bargain.

Travel life insurance is different than trip insurance (sometimes called “travel insurance”) offered by some travel agents. Trip insurance protects the cost of your travel and accommodations against illness, disability, mechanical problems or other interferences. If you are mugged in a foreign country while on vacation, travel insurance will help cover your loss.

Also read: What Do Flying Risks Mean? (part 1)

Saturday, May 25, 2013

What Do Flying Risks Mean? (part 1)

Nervous airline passengers don’t understand that all travel is risky and safety is a matter of relative risk. In other words, an activity is usually considered safe only as contrasted with some other activity. Absolute standards of safety are hard to establish…and are often more
arbitrary than most people realize.

A few basic measures can improve your odds of surviving an airplane flight. These include:
  • stick with commercial airlines;
  • make your trips long ones;
  • don’t fly in bad weather;
  • avoid high-traffic or high-risk airports; and
  • pay attention to instructions you get on the plane.
Of course, none of these guarantees you a perfectly safe flight; and it’s hard to follow a set of “basic measures” when you plan a trip and have to rely on others to get you there.

When you have to get from Point A to Point B, you rarely set out to do so with a set of precautionary guidelines. You simply try to get to point B the quickest and cheapest easiest way you can. Think about driving to work; if you have to be there by 9 A.M., you drive during the riskiest time of the day—when everyone else is commuting to work.

So, flying on commercial airlines—and even on commuter airlines— is safer than most people think. And it’s safer in many cases than driving the same distance. But how do you protect yourself against even this relatively reasonable risk?

The aswer is Life insurance. This is because Life insurance can serve many purposes; the simplest is to replace the earning power that you offer your family or other interested parties (business partners, etc.). In this context, life insurance protects against precisely the sort of catastrophic loss that an airplane wreck poses.

Also read: What Do Flying Risks Mean? (part 2)

Friday, May 24, 2013

Tools for the First Time Buyer


If you’re a first time-buyer, the agent wants to hook you in immediately so that
you will attend carefully to the sales pitch. He or she does that in a variety of
ways, most of them shady.

Agent: “Look at these statistics showing that you and your husband have a four
out of five chance to end up in a nursing home. Your children will not want to
take care of you, either.” The agent knows that these statistics will certainly
frighten you, and hopes that you’ve recently spatted with your daughter as well.
Your rebuttal: “My children and even my grandchildren have assured us that
we will never spend a day in a nursing home. Both of our children have large
winter and summer homes with enough room to take care of us if that time
ever comes. In the interim, we have the kids’ old rooms to house live-in help if
one of us needs ongoing care.”

Agent: “If you can’t afford the premium, how will you afford long-term care
when you need it?” Two thousand dollars a year sounds like a lot of money to
most of us, even though our life insurance may cost considerably more. Besides,
the agent knows that death is inevitable, even if the need for long-term
care may not be.
Your rebuttal: “The insurance company takes risks. Well, I take risks in my
life, too. At this stage of the game, I feel that I have complete knowledge of all
the facts. I’m a grown-up and I can handle the risks.”

Agent: “You have to buy now because you’ll be too sick later to qualify for the
coverage and you’ll need it for sure.” Look around you, the agent is implying,
see all your sick neighbors and friends? That twinge you have today may be the
harbinger of a condition that will prevent your buying the insurance. Then
you’ll regret not acting.
Your rebuttal: “Mr. Agent, if you hurry down to the local convenience store
before it closes, you can buy a lottery ticket and win $10 million. Better hurry
or you’ll regret not acting.”

Agent: “Aren’t you embarrassed and don’t you feel squeamish when your
friends and neighbors talk about the long-term care insurance that they’ve
purchased, which will keep them out of the poorhouse?”
The agent is playing to your 13-year-old self, when you wanted to do everything
that your best friends did and have what they had.
Your rebuttal: “We don’t envy our neighbors, and we don’t expect to go to the
poorhouse, either. We have three healthy and happy children who respect and
keep in constant contact with us. Many of my friends and neighbors wish they
could say the same.”

Agent: “Look at these brochures, which show you that you’ll have to pay about
$7,000 a month just for a double room at the nursing home down the block.
And how about these pictures from another nursing home over in the next
town? Do you want to live like this?” Bringing out photos from the most expensive
and the least appealing nursing home alternatives is intended to shock
you right into bringing out your checkbook.
Your rebuttal: “The fancy nursing home brochure is pretty, but there isn’t a
nursing home in the United States that can provide care 24 hours a day, 7 days a
week, with sensitive and caring individuals. I know that fact to be true. We witnessed
the rapid turnover of help when our parents were in a nursing home, and
we also observed many unskilled personnel who were insensitive. We want to
stay at home, but if not, we’ll look for the best alternative when the time comes.”

Agent: “Your accountant, who referred me to you, will be disappointed if I have
to tell him that I left this appointment without a signed application.” You owe
it to your accountant to buy a policy from me. He will think less of you if you
don’t act fast.
Your rebuttal: “Don’t be concerned. I will help my accountant deal with that
disappointment. I will also tell him about the high-pressure tactics you tried to
use during our interview.”


Thursday, May 23, 2013

Insurance Companies: Never Ask These Questions! (3)

Will I be covered by a group or an individual policy when I buy from
an association like AARP?
The differences between group and individual policies can be very significant
in terms of portability and coverage options. Saving a few dollars
through a group plan may not be the best option for a healthy applicant.

If I am to be covered under a group policy, will the insurer provide me
with a copy of the master policy? Will the certificate I may receive be
derivative of that master policy?
Long-term care insurance policies are complicated and detailed. You
need to see exactly what benefits you’re buying and what conditions will
trigger them.

What fees are being paid to those who manage the group plan?
Your group discount may not be as good a deal as it appears. If the insurer
has enough of a margin to give up to 3 percent in fees to the group,
you may be able to find another policy in the individual market that has
better benefits for almost the same premium.

If I have bought from a group trust, what fees are being paid to sponsors
or directors?
Did the sponsor or director shop in your best interest or their own? Was
the bidding rigged to favor an insider?

Is my call to the group insurer being recorded? What information is
going into the computer? Can I get a copy of the notes they’ve taken
of our conversation?
Your agent has an obligation to keep your personal information private.
But does the intake person on the telephone have the same obligation?

Also read:

Wednesday, May 22, 2013

Insurance Companies: Never Ask These Questions! (2)

What range of bone density levels are in your underwriting guidelines
to determine whether an applicant can receive preferred, standard,
rated, or no coverage at all?
Unfortunately, osteoporosis becomes a fact of life for many of us as we
grow older. Each insurer’s underwriters have their own guidelines for acceptable
bone density levels. It may pay you to shop around for a company
that doesn’t penalize you if your bone density is not ideal.

Will you pay for any expenses that are payable under my Medicare
Some forms of indemnity coverage will pay the full daily benefit regardless
of what Medicare pays for.

How many claims have you had under your temporary insurance
Temporary insurance receipts, sometimes called binders, can be unclear.
You need to know just what is covered and what your limits are.

How many different policy series has the company written since it began
writing long-term care insurance?
If your company introduces a new policy series, it may mean that the existing
policy is not properly priced. Long-term care insurers are reluctant
to raise premiums for fear of losing market share. Instead, they prefer to
eat their losses on the old series, but roll out a new contract and justify
higher premiums by adding enhancements and bells and whistles.

What is the ratio of your actual claims versus anticipated claims?
If the actual claim exceeds the anticipated claim, the insurer has several
options: increase the premiums, tighten underwriting, resist questionable
claims, and reduce service capabilities.

What percentage of your in-force business contains a nonforfeiture
A low percentage would indicate the cost is too expensive and the extra
premium would be better spent to increase existing benefits.

Also read:

Tuesday, May 21, 2013

Insurance Companies: Never Ask These Questions! (1)

When you go shopping for long-term care insurance, you don’t have to have all
the answers. You just need to know how to ask the right questions.

Will asking these questions make the insurer pause? So what? You’re
spending significant dollars to buy significant potential coverage. You have
a right to look closely into the details of your purchase. In some cases, you
will be asking about basic policy features the insurer has already included;
in others, you will be addressing more problematic areas. In all cases, the
most consumer-friendly insurance companies understand that long-term
care coverage is a new product for most people. They will welcome your

Here are some you should ask:

If your policy excludes claims resulting from treatment for alcoholism
or drug addiction, will it pay for a dependency that results
from physician-prescribed medications?
While you may have agreed that you will not qualify for long-term care
benefits if your disability is caused by an addiction to drugs or alcohol,
an addiction to a physician-prescribed painkiller may be a shared responsibility.
Look at your policy to see how your insurer would treat this

Do you automatically provide waiver of premium for both home care
and nursing home coverage without an additional premium if the feature
is not included in the basic policy?
Some insurers treat home care differently from nursing home care when
it comes to waiving benefits. Do you want to be subjected to a special
waiting period before your premiums are waived because you choose to
be cared for at home and not in a nursing home?

When on a claim do the provisions of your inflation rider still apply,
or does the maximum daily benefit in effect at the start of any claim
remain constant?
When you bought your policy, you selected a benefit that would pay you
for several years, often three, four, or five. You may also have bought an
inflation rider, to protect yourself in the very long-term against rising
costs. Now you need the long-term benefits, but have discovered that
each year the cost for your care is increasing by 3 percent to 5 percent or
more. Will the inflation option rider you purchased continue to be operative
while you are on claim?

Who in your company will have access to my medical data contained
on my policy application and information obtained from my doctors?
Your medical data is your own business. It’s private. Your agent has a legal
obligation to respect your privacy, but what about the company’s paper
handlers? Does the insurer have a privacy protection policy in place that
prevents unauthorized employees from having access to your records?

Also read:

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