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.

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