Life Insurance for Babies

Baby life insurance and insurance for juniors make up a program that has been devised to help make young ones become independent and handle important stages in their lives. Life insurance for babies continue for a certain number of years — say, 10 or 15—and concludes when the child reaches a certain age of maturity—say, 18 or 25.

An Overview of Life Insurance for Babies

Baby life insurance is a thoughtful action on the part of the parents. It is they that have to plan for the future of their child and make sure that as he grows up, he doesn’t have a paucity of funds to chase his dreams. Also, in some policies, companies insure the parents as well. This way, in case of untimely death of the parent, the company itself pays the premium of the policy.

Benefits of Life Insurance for Babies

Life insurance for babies is really helpful for them, so as they grow, they don’t have to work or take loans for completing their education and following a career of their choice. Also, you might think why should life insurance be bought for someone who’s just been born because it is not useful till the end of life? Well, life insurance is very expensive, and buying it at an age of 30 or 40 for oneself can prove to be pretty hard on one’s pocket.

The Cost of Life Insurance for Babies

If you have baby life insurance for your child, then it will be rather inexpensive. Also, if the policy is a whole life one and not a term one, then it will be highly beneficial for the child in a number of ways. This is because a whole life policy builds equity which can be used by a person at any stage of their life, like in paying a down payment for their home, or else for settling down with their family and also just passing on the money to kith or kin as they pass on.

Also, in taking baby life insurance, you as a parent will not have to worry about providing for the child when you are no longer able to work and support your family. This way, the child will have a sort of guardian provided by you in the policy and won’t have to work to make his way through college.

Considerations for Purchasing Life Insurance for Babies

However, there is a popular perception that baby life insurance policies are simply insurance products and not a savings scheme so they should be marketed as such. It is also believed that there are a lot of hidden costs in life insurance for babies. If money needs to be set aside for education purposes, then financial experts recommend a 529 plan rather than life insurance for babies.

What experts counsel is that parents should go in for a life insurance policy for themselves and should not in any case buy a life insurance for their kids if they themselves are underinsured. This is one condition where the needs of the parents should come before that of the children.

Obviously, the more mouths you need to feed, the more will be the opinions. It entirely depends on you and what you decide about purchasing a life insurance policy for your baby. The fundamental thing behind an insurance policy is actually to protect the income of the breadwinner of the family. The child in no way is the breadwinner, so logically the need for a policy at birth is not there.

If the future of the child is to be secured, then there are a variety of alternative investment options for you. They will definitely make you feel secure at having done the needful for your child or children.

Family Life Insurance

Your insurance policy depends on your age, health, retirement plans, income, and assets or wealth. Family life insurance is generally available for people who possess significant assets they want to safeguard for their family or the next generation.

Others also purchase life insurance for families to secure independence from other members of the family and not burden them when the policyholder gets sick or enters a nursing home.

Family Life Insurance Options

Life insurance for families hinge of three factors – coverage, cost, and benefits. The following types of life insurance policies are available in the US:

• Term – This type of family life insurance pays only when death occurs during the insurance term. This is usually the most affordable. Moreover, companies will charge you lower premiums for younger family members.
• Whole – Although a premium is set for the duration of the policy, this type offers families higher rates early on, when the risk of death is low, and lower rates when risk of death increases. This kind of family life insurance also has a cash value and can turn out to be more affordable for your family.
• Universal – This type marries the benefits of term and whole life insurance. Your family can borrow against its cash reserves that accumulate over time. Furthermore, your company will let you vary premiums and coverage amounts from one year to the next.
• Permanent – This offers families a lasting option, since the policy term does not expire after a period of time. The premiums for this type of family life insurance are higher. But if your company should reinvest your profits, you get paid dividends, which are not taxed, unless you use the cash value.
• Variable – Akin to an investment plan, this type of family life insurance can give you greater returns for your investment. However, since your insurance provider reinvests your profits in stocks and bonds, the cash value of your policy will depend on market performance.
• Single premium – If you have enough liquid assets, your can purchase family life insurance by making a single premium payment–which amount will, of course, be large, but could afford good security. This is a great option if you want to give an insurance policy to a member of your family as a gift. The main advantage is ZERO RISK of cancellation because of nonpayment. It often serves as a nest egg for families during better times, which can serve as a sort of contingency fund for the future protection of family members.
• Survivorship – This covers two family members under one policy. When one person dies, the remaining member gets no benefits. But when both pass away, the policy pays out. This is a great life insurance for families, parents in particular, who want a secure financial future for their children or dependents.

Life Insurance for Children

Insurance is simply preparation for the direct and indirect expenses of a future event. That is why many parents view taking out a child life insurance policy as too morbid to consider. However, there are several reasons why the subject of child life insurance should not be considered taboo in your family.

Whole Life Insurance for Children

Although most companies offer term child life insurance, which has small premiums and does not build cash, there are companies in the US that provide whole life insurance for children. If your insurance company can offer you a policy that does not expire when your child grows up, you can get the following benefits:

• Whole child life insurance allows them to get insurance at low premiums. Since premiums are guaranteed to stay at the same low rate for the rest of their lives, you give your child protection against the high premiums he or she would have to pay when life insurance is purchased during adulthood.
• Life insurance for children creates a financial safety net for them. Child life insurance can build substantial cash value over time. Your child will have the option to borrow against their policy, or cash it in if a future need should arise.
• Life insurance for children protects them against the added cost of changes in their health. Your child will probably take out a life insurance policy during adulthood–for which already higher premiums may be compounded by illness or sickness.
• Life insurance for children gives them benefits that can never be reduced or cancelled. Whatever health issues occur in your child's adult life, his or her child life insurance policy cannot be reduced or cancelled.

Term Life Insurance for Children

Even term child life insurance has its benefits. For example, it ensures future eligibility, which may be important if your family has a history of illness. If you take out an insurance policy on your child, he or she becomes automatically eligible for any type of insurance later in life.

Child Life Insurance Can Save Your Family

One of the main reasons why getting life insurance for children is a good decision is one that families often fail to accept – the death of a child. A child's death can be emotionally devastating, both to the parents and to the remaining children. It can be financially devastating too. Moreover, studies show that the possibility of dysfunction and divorce are high in a family that has suffered the loss of a child.

The family needs time to grieve and having a financial cushion can be a good way to buy time without depriving the family of the benefits of an income. Child life insurance can also pay for professional help and counseling for the family.

Looking for a lost life insurance policy? Tips to help you find it.

Have you ever wondered if you were entitled to the benefits from a deceased relative's life insurance policy or do you remember a great uncle telling you that you would be entitled to benefits from his life insurance policy?

If a loved one owned a life insurance policy at their death and you are a named beneficiary, chances are you are entitled to receive a benefit. But what happens if you are uncertain if you were named the beneficiary, are unable to locate the policy, or are uncertain if the policy even still exists? Many life insurance policies go unclaimed for just these reasons.

It may take some digging and some detective work but the following tips may help you find that lost life insurance policy; and, if you are not the executor or executrix of the deceased’s estate, obviously you will need to enlist this person’s help.

1. Check storage areas.

   Check safety deposit boxes, strong boxes, filing cabinets and other storage places to see if a copy of the insurance policy was left there.




2. Search for any insurance-related payments.

   Look for any insurance-related payments in bank statements, bankbooks, checkbooks, or credit card statements that could provide you with insight about insurance premium payments and the insurance company they were paid to.




3. Search through the mail.

   Look through the deceased's mail for old insurance premium bills and insurance policy notices that may have come through the mail in the last few years.




4. Review the deceased's income tax returns.

   Review the deceased's income tax return for any interest income and interest expenses paid to life insurance companies. Life insurance companies pay interest on accumulations on permanent policies and charge interest on insurance policy loans.




5. Information about other policies.

   If you come across any other life insurance policy the deceased may have had, even if it was no longer in effect, ask the insurer for a copy of the application form. Typically, life insurance applicants need to disclose details about any other life insurance policies in place at the time of their application.




6. Contact anyone with information about the deceased's finances.

   Try to get in contact with current and prior financial advisors and agents or companies that might know about the life insurance policy of the deceased (like lawyers, accountants, investment advisors, insurance brokers and credit card companies). Sometimes policies are stored in their files.


It could also be useful to send letters to some of the main life insurance companies, asking them if the deceased had a life insurance policy with them.


7. Find out if the deceased was part of a group plan.

   Contact previous employers, alumni groups, professional associations or automobile associations to see if the policyholder had group insurance. They may have continued with their life insurance under this policy or purchased additional/supplemental life insurance benefits through their group policy.




8. Canadian Life and Health Insurance OmbudService.

   If you are unable to locate the life insurance policy using the steps listed above, you can contact the Canadian Life and Health Insurance OmbudService (CLHIO). The CLHIO is an independent service that assists consumers with concerns about life and health insurance products, and its participating companies represent the majority of life insurance companies doing business in Canada.
   
   CLHIO will require specific, relevant information about the deceased and then will send this information to all of its member companies. If any member company has a policy still in effect, they will contact you directly. The CLHIO has 2 basic requirements before undertaking a policy search: (1) There must be a reasonable basis to believe that a policy does exist and (2) Specific factual information about the deceased is available.




9. After all that searching, if you still cannot find the insurance policy...

   If all that searching and digging doesn't help you to find your policy, there are companies that can help you locate the lost policy. They act as "insurance policy locators". These companies are online registries and reminder services developed to ensure that named life insurance beneficiaries actually get the life insurance benefits for which they are entitled to receive. Keep in mind however; these services are not likely to be free of charge.

Ten things you should know about life insurance

1. Virtually everyone should have life insurance

   Only a few people don’t need life insurance; most people need it because they do not have the funds readily available to cover all debts and funeral expenses, they want to offset the loss of their income to their spouse and/or children, or simply because they want to leave additional money to extended family or a charity.





2. Get the most life insurance coverage at the lowest cost

   Of the many life insurance products out there, Term life insurance typically is known to offer you the most coverage for the least amount of money; and although there is no investment or saving component, there are many who would tell you to "Buy term, and invest the difference."
   





3. Avoid guaranteed issue life insurance policies, if you are healthy

   Guaranteed issue life insurance policies typically offer smaller insurance amounts and can be purchased without a medical exam. A guaranteed issue policy is available to everyone, healthy or not, but the ease of purchase is reflected in higher premiums as compared to term life insurance for the same coverage amount. Of course, a guaranteed issue policy is still worth having over no life insurance coverage at all.





4. Buy only what you need

   It's not a good idea to buy too little insurance, but buying too much is unnecessary and will only cause your insurance premiums to be higher. So before you buy, review your needs and what it is you want your coverage to achieve and go from there.
   
   You'll find that many industry insiders suggest that the amount of life insurance coverage you should buy should be five to ten times your annual, pre-tax, income.
   
   Still not sure? Try the kanetix Life Insurance Needs Calculator to get an estimate of how much life insurance coverage you might need.





5. Save money with one policy that covers two people

   If you're looking to get life insurance for yourself and your spouse or partner, then consider buying one joint policy, instead of two individual policies. The premium is usually about 15% less for a joint life policy than 2 single life insurance policies of the same coverage amount.
   
   
   





6. Avoid monthly payment plans if you can

   Save money by paying your annual premium all at once, instead of setting up a monthly payment plan. Almost all life insurance companies will charge you a little extra to cover the cost of administering your payments every month.
   
   





7. The ‘when’ of life insurance

   People often look to buy life insurance when they are planning on getting married, starting a family, buying a home, changing jobs, facing unemployment, starting up a business, or retiring. It is during these life event milestones when your life insurance needs are most likely to come to the forefront.
   
   For the last two years in a row, more people shopped online for life insurance on www.kanetix.ca in January, February and March than any other month in the year.





8. Average life insurance policy amounts

   According to 2007 industry statistics, more than 20 million Canadians own life insurance and the average policy amount owned was $156,200 for individuals and $312,200 for households.





9. Workplace life insurance is often not enough

   Your workplace life insurance coverage may not protect you and your loved ones as much as you think. Review how much your employer-paid life insurance provides and calculate whether this is enough to keep your family comfortable in the absence of your income.





10. Premium prices vary wildly across life insurers

    Compare the life insurance policies and prices of competing insurers because every company prices their policies differently. A real easy way to do this, without having to listen to a sales pitch is to compare premiums and policies online. It's a great way to compare life insurance prices and see what different companies have to offer.
    

Insurance for insurance sake

You are a proud owner of a Honda Civic. Like all proud owners you have taken an insurance policy for the car. The insurance policy is of an amount that ensures that if the car is a total loss (in an accident or it is stolen) you will get enough money from the insurance company to make good the loss.

When it comes to your life, do you take the same precautions as you did for your car? Remember, unlike a car, with your life you do not get a second chance. Have you taken enough life insurance to ensure that if you die too early your family will get a sum that will ensure that they do not have to make any adjustments in their life style? As a broad rule of thumb, you should have life insurance equal to at least 10-12 times your annual income

Most Indians just do not have enough life insurance that will satisfy the above criteria. In their defense they will claim that they cannot afford to buy that kind of life insurance amounts for themselves.

But this is a fallacy. Let's turn again to the car insurance example to understand why.

For the car insurance, at the end of an uneventful year, the renewal notice arrives in the post and you pay it. So it goes on and on till you sell that car. At that time if you have had no occasion to make a claim you consider it as your good fortune. You obviously do not rue the money that you spent on your car insurance and do not look for a return on the money spent on your car insurance. Obviously while fixing the premium for such car insurance the insurance company does not have to build in this element and hence the pricing is low.

However, most people have a very different behavior when it comes to life insurance. They still want to get something back if they do not die during the policy term. Most of us still consider insurance to be a tax planning tool and not as something that will help our family in case of our death. And when we decide to purchase insurance, we instinctively go for the "maximum bang for the buck" strategy, mixing our insurance and "investment" needs. The surging popularity of Unit-Linked Insurance Plans (ULIPs) is a classic case in point. Our instinct tells us to ask, "If I am paying this much towards my insurance, what am I getting in return?" What they do not realize is that whatever they get in return is only from what they pay. The price of any life insurance plan that provides returns will obviously be much higher than if you were to take a plan that pays out if you die (called a term insurance plan) but otherwise pays nothing (much like the car insurance).

It seems genuinely hard for most of us to grasp the concept of insurance as purely a death cover. A Plan B that will ensure that even if we, as primary wage earners in the family, are no longer there, the insurance payout that we paid for during our lifetime will ensure financial stability for our family.

If we were to indeed give maximum weightage to this latter aspect, our predilection for "getting something in return" from our insurance policy will cease. The result will be that more and more of us will realize the best insurance product is the one that only covers the risk of death i.e. a pure risk cover.

A term insurance policy is insurance for the sake of insurance. Taking a term policy means that you are declaring to the world:

"This instrument is ONLY in case I am not there to support my family. For saving money, creating wealth, reaching my financial goals such as my children's education or increasing my wealth during my lifetime, I shall take advantage of the very many pure investment tools that are available."

Because a term insurance plan doesn't try to disguise as an investment plan or any other savings tool, it is the cheapest form of insurance. In effect, you pay the least towards maximum cover. This allows you to be adequately protected against the risk of death.

There are compelling reasons why you should adequately cover yourself, and not just use your insurance as a tax-saving tool.
New illnesses and diseases appear every day. The chances that you could contract something terrible and hand in your card have never been as high. You need to ensure that whatever happens, your family isn't left holding a near-empty pot of gold.

The insurance payout your family receives in the event of your demise has to last them a long, long time. Which means you need to be insured for a large, large sum. Which type of policy do you think will give you such a large coverage at low prices?

The term insurance policy that you take is a necessity for your family. Do not make the mistake of considering it a luxury for you and sacrifice it! You NEED to have a term insurance policy. Let's put it this way - the knowledge that you have adequately provided for your family if you die, will give you great peace of mind...and increase your longevity!

Or, as the punch line in an ad from a leading insurance company says "Jeetey Raho!"

Here is a comparator that displays term insurance premium amounts for various insurers. The premium amounts are for a typical male, 30 years old, for a sum assured of Rs. 50 lakh.

Insurer		20 years	25 years	30 years
AEGON Religare	Level Term Plan	10000	11573	13652
Aviva	Life Shield	15600	17650	20300
Bajaj Allianz	New Risk Care	18202	19270	20955
Birla Sun Life	Term Plan	13876	14719	NA
HDFC Standard Life	Term Assurance	14000	14650	16550
ICICI Prudential	Life Guard	13486	15028	17497
ING Vysya	Term Life Plan	12494	14591	17430
Kotak Mahindra Life	Preferred Term	11011	12584	14775
LIC	Amulya Jeevan	12850	14600	16800
Max New York Life	Level Term	13550	15250	NA
MetLife	Met Suraksha	12800	13800	NA
Reliance Life	Term Plan	11000	13350	16200
Sahara Life	Kavach	17945	NA	NA
SBI Life	Shield	12019	14566	NA
Tata AIG	Life Line	12100	13200	NA
Bharti AXA	Secure Confident	11950	13250	NA

Understanding and Controlling Your Finances

Life Insurance

Life insurance is a form of insurance that pays out when someone dies. Life insurance is a funny thing for three reasons:

1. You are never going to use a life insurance policy that you buy on your own life. After all, you will be dead when the policy pays out. Life insurance is therefore a gift that you give to someone else.
2. The chances of you dying "before your time" (say, before age 70) are pretty slim in this day and age. Therefore, the chances of a life insurance policy ever paying out at a time when it is really needed (for example, at age forty when you have a spouse and two teenage daughters depending on your income) are slim as well.
3. However, it is guaranteed that you will die at some point, and there is a fair amount of emotion around this particular fact of life.

These three facts make life insurance work like no other insurance policy ever will. The emotional component attached to death is, in and of itself, enough the alter the entire sales process and the types of conversation that happen during the sale.

Compare life insurance to an automobile insurance policy, for example. If you wreck your car the insurance policy pays you a check, so you get a direct benefit from the policy. The chances of you being in a wreck are pretty good - you see wrecks every day. Finally, if you wreck your car it is not the end of the world. You will simply go buy another one. Automobile insurance is therefore a commodity item that you purchase without emotion - you have to have it, so you buy it at the cheapest price you can find.

Not so with life insurance. If you do not know what life insurance is and why you do or do not need it, there are two things that can happen should a life insurance salesman happen to call:

1. You can be "guilted" in to purchasing insurance that you do not need.
2. You can be sold other components that are ancillary to life insurance at inflated prices.

The following sections therefore give you a brief introduction to life insurance and how to purchase it rationally.

What is Life Insurance?

As mentioned at the beginning of the article, life insurance is a form of insurance that pays a beneficiary in the event of someone's demise. You purchase a specific death benefit when you purchase the policy. You might buy a $100,000 life insurance policy, for example. You then assign that $100,000 benefit to a specific beneficiary, like your spouse. Should you die during the term of the insurance, then your spouse will receive $100,000. It is as simple as that.

Types of Life Insurance

There are two types of life insurance: 1) Term life insurance, and 2) everything else. Term life insurance is pure, unadulterated life insurance. "Everything else" is term life insurance bonded to some sort of savings component. It is called various things by various companies: "whole life", "universal life", and so on. Click here if you are interested in more specific descriptions of the different types of life insurance.

Let's say that you would like to buy $100,000 worth of life insurance. If you bought that as a term policy you might pay $15 per month. If you bought it as whole life, you might pay $100 per month. Depending on the company selling the policy, you will then be assured that the difference ($85 per month) will act as an investment that will "pay off the life insurance" and/or pay you a cash value at age 65.

The problem with everything besides term insurance is that the savings part is inefficient. Also, it is only as secure as the company issuing the policy. You would be much better off simply depositing the $85 in a stock mutual fund each month (as described in the article entitled "Investment Options"). You would, over time, make much more money that way.

There is now also a growing "mini-life" industry. This industry tries to attach special purpose life insurance policies to car loans, mortgages, etc. These too are totally inefficient. If you feel that insurance to cover your mortgage is important then comparison shop a normal term policy of the same value against the policy being offered by the mortgage company. You will be amazed at the price difference. Never buy mini-life policies until you comparison shop.

Who Needs Life Insurance?

Some people truly need life insurance. For others it is a waste of money. Let's look at some scenarios to see who does and does not need a policy.

Let's say that you are a single man or woman living alone in an apartment. Do you need life insurance? No. Who, exactly, would be the beneficiary? There is no one in your life who is dependent on your income. The only reason you might buy life insurance is the same reason you would buy a lottery ticket - you might win. You might, after all, die young. And if you had a life insurance policy and you did die young you could make someone very happy. Or you might buy a small policy to pay your funeral expenses at death. In that case $10,000 is all that you would need, and that would be one nice funeral. There are probably better things to do with your money while you are alive.

Let's say that you are a single man or woman living alone in a house with a $100,000 mortgage. Do you need life insurance? Maybe. The reason you might buy life insurance is to save your parents (or whomever else you have willed the house to) the problem of disposing of your estate. For example, imagine that you die. Your parents (or whomever) inherits the house. Now they want to dispose of the house, but it sits on the market for two years before selling. During that time they are having to pay the mortgage payments, and that might be a hardship. Therefore you might buy a policy to cover the expected payments over (for example) two years, or the entire mortgage.

Let's say that you are a married man or woman living alone in an apartment or a house. Do you need life insurance? If your spouse does not work and you want to provide for your spouse should you die, then yes. If your spouse does work but could not possibly support his or her current lifestyle should you die (for example, could not possibly pay the house payments), then yes. Otherwise, probably not. Having life insurance would be a nice remembrance if you were to die, but it is not essential.

What if you have kids and you provide income that they depend on? Then almost certainly, unless you are rich enough to be "self insured", you need life insurance. Yes yes yes. You need enough coverage to allow your spouse and children to live a comfortable life in the absence of your income.

How much life insurance do you need?

To calculate how much life insurance you need, you can use one of two approaches. You could estimate what you will make during the rest of your life and provide that. Simply take your yearly salary and multiply it by the number of years you have left before retirement. Using this approach you would probably buy way too much or too little insurance, depending on how much you make.

The other way is to examine all of the expenses that your family will incur should you die, and account for them. The calculator below will help you determine the correct amount of life insurance that you need.

Battle of the Sexes: Who Pays More For Life Insurance?

In a society where the battle of the sexes runs neck-at-neck for almost all cases, it's a hands-down winner in the race for who plays less for life insurance. The winner is women. But why?

A study by the Society of Actuaries done in February of 2001, concluded that testosterone wreaks havoc behaviorally and biologically on men's bodies, which leads to a higher risk of disease, as well as risk-taking behavior-like unsafe driving and drug and alcohol abuse. This is because testosterone promotes higher blood pressure while it lowers the effectiveness of the immune system. The greatest difference in mortality rates is seen at age 22, when testosterone is at its highest.

Traditionally, it was believed that women lived longer than men because most worked from home. But more recent studies have shown that women who are out in the working force actually live longer than those who are homemakers.

Additional studies have been done in an attempt to study demographic mortality rates of men and women. The conclusion of such studies showed that men typically have a higher rate of dying from cancer, diabetes mellitus, heart disease, strokes, pulmonary disease and infections-hence why men pay more for life insurance. The highest and more prevalent danger now, for both sexes, is cigarette smoking. Smoking takes more than nine years off a normal life expectancy, compared to a life expectancy of a non-smoker.

If risk-taking behaviors and bad habits are assessed early, and steps are taken to correct them, both men and women can expect to extend their life expectancy substantially. The better and healthier you are, the easier it will be to find affordable and adequate life insurance. If you are interested in receiving a life insurance quote, Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life insurance coverage for you and your budget.

Affordable Life Insurance For Asthma Sufferers

In the United States, asthma continues to be a growing concern not only for asthma sufferers, but for life insurance companies as well. The main concern of insurance companies is that half of all asthma deaths occur in people younger than 65. Though asthma is a very serious and potentially deadly condition, it is still possible for asthma sufferers to find affordable life insurance.

If you have asthma, it would be beneficial to shop around for different life insurance quotes. The severity of the asthma that you have, the persistence of it, and how well you respond to treatments, are all deciding factors for insurance companies when they are considering your policy. The National Institutes of Health have set goals for asthma treatment, and if you accomplish such goals, your premium may go down. The list includes:

• Low occurrences of wheezing, cough, shortness of breath and chest tightening
• Asthma symptoms not affecting your sleep
• Asthma not causing a disturbance in your work or school schedule
• Full participation in physical activities
• Hospital stays or visits to the emergency room that are not asthma triggered/related
• Asthma medication taking effect without causing adverse side effects

If you're an asthmatic and you apply for life insurance, your life insurance company will want to know the results of your pulmonary function tests (given by your doctor) and what your "peak flow meter" reading is (typically a self-test done at home). The tests will show how good you are breathing, which helps insurance companies see how much of a risk you truly are.

Within the past three years, if you haven't suffered from any "exacerbating asthmatic episodes," where you were required to go to the doctor, emergency room, or take off of school or work, your application will appear more favorable. As a result you could potentially qualify for a standard or preferred life insurance policy. As long as you maintain a healthy and active lifestyle, your insurance rates should be affordable. However, if medication isn't working for you, that's when you may see an increase in your insurance rates.

Asthma attacks and higher rates
The plan laid out by the National Institutes of Health is ultimately what a person with asthma who is looking to buy life insurance needs to strive for. If the last series of asthma attacks were so severe that you needed medical treatment, then you will have to wait longer to get the better rates. The longer it's been since a severe attack, the easier it is for you to get a more affordable policy. Also, life insurance companies tend to look down and become leery of policyholders who have frequent, though less severe, attacks. In the eyes of the life insurance company, this could mean that the medication is failing and a new treatment may be needed.

A smoker and an asthmatic?
Asthmatics who are smokers may have one of the most expensive policies. Not only will the policyholder be charged with smoker rates (up to three times the amount of non-smoker), but also, they will be charged a surcharge on their life insurance policy because they are an asthmatic. Regardless if you smoke or not, it is still important to visit your doctor at least twice a year to have your asthma monitored. This will not only be beneficial to your health, but it will also show the life insurance company that you are taking care of your condition.

A list of the medications you are on should also be given to your insurance company-Even though they may use the amount and kinds of medication you are on as an indicator of how severe your asthma is, a list should be given to your insurance agency. If you are taking a lot, it may seem that by giving them this information, your rates will automatically skyrocket, but remember, their main concern is how well you respond to the treatment. If you recently switched medication, it would be a good idea to hold off on applying for life insurance for a year or two, just so you can establish a history with the medication and show that you are meeting your goals.

Auto Insurance Reviews

Complete an auto insurance review prior to committing to buying a policy by visiting OnlineAutoInsurance.com. Reviews of insurance companies’ premium rates, financial strengths and history.

The first step to reviewing top companies such as Progressive, GMAC, Infinity and more is to obtain their rate quotes. Why go any further if the rates are not within your budget or allowable spend. Narrow down choices by completing an online auto insurance quotes comparison and seeing side by side rates from a variety of quality insurers by visiting OnlineAutoInsurance.com and answering a single a set of questions.

Once the premiums are displayed, consumers may review their choices of companies and make a choice of three or four carriers for which to continue on with auto insurance reviews.

These are things to consider when completing each insurer’s review:

1. Consider the price and weigh it out in comparison to coverage being offered and offers from other companies in order to get a feel for it’s competitiveness. Keep in mind that not always is the “cheapest” better because it may be worth paying a few extra dollars to ensure satisfaction.
2. Financial strength is an important factor which should be considered as part of reviews. Each of the auto insurance carriers are assigned a letter grade by AM Best, an independent company which grades based on a few factors “A++” being superior.
3. Customer feedback is a quick insight to an insurer. If you know someone who’s had a certain company in the past, ask them what their experience was and ask if they’ve ever had a claim to get a feel for their experience. Visit your state’s department of insurance for complaint history.
4. A major reason for customer dissatisfaction is the “long lines” for service. A good tip for getting a feel of service is to pick up the phone and call the customer service line to see how long your expected wait times would be. Keep in mind that Monday’s are expected to be busy because it’s the back to work day and many people call in; better yet, if the company’s service is open throughout the weekend, take a mental not of that because it’s definitely a plus.
5. Keep in mind that top rated auto insurance companies are one’s that are “admitted” by the state which a policy is being offered. A state approved company is backed by a state fund which offers the policyholder added assurance that in the event of a company going bankrupt, a sort of “insurance” for insurers will be around to pick up any unpaid claims.

The above reviews should be done prior to the commitment of policy purchase. For more tools, tips and guides for United States consumers, Visit OnlineAutoInsurance.com and take advantage of theLearning Center available at no cost or obligations.

Auto Insurance Ratings of Companies

Ratings of the abundant amount of auto insurance companies out there by multiple factors such as rates and financial strength. Carriers are rated just like how movies are; subjected to a measuring standard and then given a score. Standards are established to a threshold of sustainability in the financial market or consumer market and each carrier is compared to this standard to reflect the company’s strength. There are other factors that many insurance companies are measured to other than their financial status. Other areas such as the types of policies offered, quality of service, and pricing. Both financial and company service measurements are done by third party organizations so as to ensure objectivity to the measurements and to avoid any type of bias in the reports.

One reputable organization that rates the industry is A.M. Best. They rate insurance companies based on their financial strength. A.M. Best has three types of financial ratings: Financial Strength Ratings, Issuer Credit Ratings, and Debt Ratings and each of the types of ratings having their own standards and measurements that are compared to the respective carriers. The Financial Strength Rating measures the strength of the company financially and their likelihood to continue to meet their obligations to policyholders if anything were to occur. The Issuer Credit Ratings is an abstract rating of a company in their ability to meet large obligations. And the Debt Rating is a rating placed on the company’s health based on their returns from debt in projected future time. A.M Best uses a rating system of letters, A++ being the best and E or F being the worst scenario.

Another rating that insurers are measured to is the ratings provided by J.D Power. Their ratings rate the companies based on the types of policies offered and if they offer flexibility in the choice of policies, pricing, billing and payment, and contacting the insurer. J.D Power bases their ratings off of customer surveys and questionnaires of the respective carriers and ranks the results in the basis of 1-5, 5 being the best.

Auto insurance company rates and reviews

The ratings provide a good report for consumers as to the company’s financial standing in the market and customer’s feelings towards the company. Ratings, along with auto insurance rates can be used by consumers in ranking the companies based on their interpretation of the readings, what consumers value most from a company, and what other’s have said. Similar to a consumer’s credit score when they are planning to purchase or take out a loan, the motorists may utilize these scores in choosing which carrier they feel the most comfortable with before signing a policy. Ratings are a good way of gauging which company to choose but one of the most important variable in selecting an insurer is the quote that they will be giving to the consumer. OnlineAutoInsurance.com provides quotes for many of the companies that are rated and will generate a quote to the consumer so as the consumer may have not only the ratings but also quotations to make the best choice.

Comparison chart for car insurance ratings

The rating and review process is provided to consumers by AM Best using the following comparison chart:

• A++ and A+ (Superior) = superior ability to meet their ongoing obligations to policyholders
• A and A- (Excellent) = excellent ability to meet their ongoing obligations to policyholders
• B++ and B+ (Good) = good ability to meet their ongoing obligations to policyholders
• B and B- (Fair) = fair ability to meet their ongoing obligations to policyholders
• C++ and C+ (marginal) = marginal ability to meet their ongoing obligations to policyholders
• C and C- (weak) = weak ability to meet their ongoing obligations to policyholders
• D (poor) = weak ability to meet their ongoing obligations to policyholders

Finding Cheaper Car Insurance from Top Rated Companies

Here’s how to find cheaper car insurance without having to compromise quality, coverage or the customer service of a carrier. Pinpoint the top company offering low rates, by making an instant side-by-side online comparison on the many important aspects such as price, financial strength and others, from over a dozen insurers.

Finding an affordable coverage provider offering great service was like finding a needle in haystack in the days before the Internet came along. Today the World Wide Web does wonders when it comes to conducting such daily tasks. Take finding reasonably priced top rated auto insurance for example. The old procedure was to take a day off and set aside a few hours to phone or drive around gathering quotes from a few top companies.

Today, the whole process has evolved. Shoppers can log into sites like Online Auto Insurance which offer the ability to answer a basic questionnaire in regards to vehicles, drivers and coverage to instantly get back quotations from over a dozen top companies such as GMAC, Infinity, Progressive and many more. Technology has come a long way. No more need to take a day off to shop for car insurance. Now it can be done during a few minutes such as a lunch break.

How does this help me find cheap rates from a top company?

By being able to compare the rates of all those companies at the same time, one can weed out the expensive insurers and narrow down a few to further look into other important details such as “coverage offered” and “financial strength”. A carrier can be considered in the “top” category if it is financially stable and is admitted to conduct business in your state. An admitted company gives policyholders an extra degree of protection in the even of the inability to pay out a claim because they are backed by a state fund which can step in in such event.

Is the Type of Car You Drive Raising Your Insurance Premiums?

Owning or leasing a car is more expensive today than in automobile history. Though gas prices are the usual culprit, you may not realize that you have considerable control over the cost of your insurance premiums.

When you purchase an automobile insurance policy from an agent, there are many behind-the-scenes actions that determine the rate of your policy’s premiums. After you leave your initial consultation with an agent, the agent consults with an actuary. This actuary statistically computes your risk to the agency, and thereby assigns you premiums based on that risk. Among the risk factors discussed between your agent and the actuary are your driving history, age, health, and credit score. What you may not know is that they also do research on the type of car you drive to find out that car’s incidence in accidents and thefts.

Each year, the Highway Loss Data Institute and the Insurance Institute for Highway Safety perform a joint research project on the insurance losses incurred by various makes of vehicles. In 2007, they found that small, fast convertibles are the leading make that causes traffic accidents. They found that these vehicles attract young drivers who enjoy the speed and maneuverability of small cars. Furthermore, these vehicles’ lower prices are often more affordable to young drivers than are trucks and SUVs.

To illustrate the popularity of small cars with young drivers, 35% of Scion tC drivers are under twenty-five years old. Other examples of high-speed cars enjoyed by young drivers include the Mitsubishi Lancer, the Acura RSX, the Subaru Impreza WRX, and the Nissan Sentra SE-R.

If you drive one of these cars and are over age 25, you may feel it is unfair to be paying higher insurance premiums because of younger reckless drivers—especially if you have a clean driving history and drive the car responsibly. Unfortunately, insurance premium calculations take into account the average accident rate of cars driven by nationwide insured drivers. Furthermore, most insurance agencies use the same statistical calculations to set their premiums. Therefore, you are out of luck if you’re seeking an agency that does not take into account the driving habits of those under 25. However, if you drive your small vehicle responsibly and incur no accidents for the next five years, it is a good bet that your agency will gradually lower your premiums.

Small, speedy cars are not the only vehicles subject to higher premium rates. Cars that have a strong history of theft also figure into higher rates. For example, the Dodge Charger has a history of frequent theft across the nation. This history has prompted insurance actuaries to attach higher premium rates to this car’s policies than for less stolen vehicles. If these vehicles were stolen, they would cost more to reimburse. In other words, actuaries raise these premiums as a risk-management strategy, to prevent the insurance agency from paying great money in case these vehicles follow the national trend and are stolen.

Predictably, vehicles that have lower rates of theft are less expensive to insure. Examples of vehicles with low theft histories include the Mercedes Benz E Class 4WD, the Buick Ranier, and the Subaru Forester. Their theft histories are so low that during 2007, merely .6 out of 1,000 insured vehicles were stolen. Because of this low theft incidence, insurance actuaries set premiums that are appreciably lower than those for frequently stolen vehicles.

What the least stolen cars have in common is that they are family-style cars. That is, they are mainly SUVs that have first-rate security systems and are typically parked in home garages. Furthermore, they are not often used for commuting to and from work, as with the majority of small sports cars. In addition, they are mainly driven by parents of young children who do not have reckless driving habits.

Insurance actuaries additionally take into account how many models of your car are currently on the road. For instance, the 1995 Honda Civic has a high rate of theft simply because it is one of the most commonly driven cars in the nation. In other words, this particular Civic model prompts higher premiums than other models of its brand because there are more insured vehicles of that model stolen per year.

Another premium-raising factor is your vehicle’s publicity. The Cadillac Escalade, for one, attracts thousands of thieves. This is largely because it has been featured on popular television shows and pictured with celebrities. The Escalade for 2007 had a whopping claim rate of 13.2 per thousand insured, all due to theft. Moreover, it is more common for thieves to steal the entire Escalade vehicle, whereas they more often steal parts from the equally expensive Lancer Evolution. Therefore, if you are driving a high-publicity vehicle such as the Escalade, be prepared to have costlier insurance premiums.

This assorted automobile data illustrates the benefit of putting more thought into the car you decide to own. Do your research before even thinking about financing your new car. Does the car have a high-desirability factor that makes it fair game for thieves? Does it have a high-peforming security system? Is it a fast car popular with young, reckless drivers? Putting yourself in this mindset will diminish the chances you are charged high premiums that drain your finances. If you do not have the means to pay for an Escalade’s annual $1,000 premium, set your eyes on a less frequently stolen vehicle.

To best secure your chances of obtaining lower premiums, consult with your insurance agent before you purchase a new vehicle. The agent can give you up-to-date advice on the cars whose average premiums are within your budget. You should also ask your agent if the vehicle has high repair costs, especially if you are going to be frequently commuting or driving in metropolitan areas. Becoming a more informed consumer will equip you with more power over your finances than you ever imagined.

Comparison Secrets of Auto Insurance

With the current economic climate, it is now more important than ever to comparison shop when it comes to your auto insurance needs. Comparison shopping makes sense because you work hard for your money, and want to spend it intelligently while also being able to save as much as possible. With so many great auto insurance carriers online, you can do your comparison shopping any time, day or night. You can even do it in your pajamas at 3 am! When you use a site like Online Auto Insurance, you can get multiple auto insurance quotes from a number of reputable auto insurance carriers. The best part is that one of these carriers may be able to help you save a significant amount of money compared to what you are currently paying. Think of what a timesaver using this site is going to be! No more navigating around a whole bunch of different sites. No more waiting for pages to load and entering your auto insurance information numerous times. Now, with just this one site, you can take advantage of one stop shopping while still getting multiple offers for auto insurance.

In some parts of the US, a typical auto insurance quote has decreased by 10% from just a year ago. One report states that an average consumer received an auto insurance quote for one year in the amount of about $2,300 last year. That is down nearly 2% from the year before. While this may not sound like much, even a small discount in auto insurance rates sounds better than the 6% increase consumers experienced the year before.

So in order to be a smart auto insurance comparison shopper, keep the following things in mind. Keep a copy of your current auto insurance policy close by so you can compare policies side by side. Be safe and informed when it comes to making auto insurance decisions.

Have a Copy of Your Current Policy Handy

Having a copy of your current policy is extremely helpful when it comes to shopping for auto insurance. Auto insurance premiums vary widely among different companies even for the same kind of coverage on the same vehicle. You can comparison shop much more quickly if you have the information you need right in front of you when you are ready to look at auto insurance. Some other things to have on hand when comparison shopping for auto insurance include your social security number and driver’s license. Also, remember to ask each auto insurance company for coverage that is identical to what you currently have now, so you have a basis for comparison for “apples to apples” type of comparison.

You can expect the different auto insurance companies to ask you a number of questions about your vehicle and the drivers who will be using it. This is done so that they can give you an accurate quote, so make sure you give them complete information. Once you have received several auto insurance quotes from different auto insurance carriers, print out a copy of each one and then you will be able to compare them side by side to see what matches and what doesn’t. If the policies aren’t similar to what you already have, it is time to ask questions of the auto insurance carrier to find out why not.

Be Safe and informed

Don’t even think about canceling your current auto insurance policy before you have signed on the dotted line for your new one. You may hate your current auto insurance rate and think it is too expensive, but you don’t want to be uninsured for even one day. Being an uninsured driver is risky for you and your family, not to mention totally illegal, so don’t even go there.

Your colleagues at work, friends and family may be able to offer some good advice or recommend an auto insurance company, but you also need to take into account the information provided to you by the auto insurance agents you talk with. They are professionals with access to all of the latest information in auto insurance, and they can give you timely and accurate information. There are a huge number of auto insurance companies out there, and not all of them are as reputable as you would like them to be. All of these auto insurance companies want your business, so you need to carefully evaluate all the information they give you before you make a decision. Being selective is a good thing when it comes to buying auto insurance. After all, these are the people you are trusting to provide you and your family with safe and adequate coverage.

Knowing what you want before you start comparison shopping for auto insurance is an important step, as well. If you know what types of coverage you need and the deductible amount you can be comfortable with, you can make a good deal on your auto insurance policy. Being informed about what you want and need is just as important as listening to the input of auto insurance agents and others around you.

Shopping online for auto insurance can be a smart and efficient way to comparison shop. You can find out a lot of information as well as get accurate quotes quickly. One excellent site to start your auto insurance comparison shopping with is Online Auto Insurance.

Check out their free auto insurance quotes and see if you are currently paying too much for the coverage you need. You might be happily surprised to find out how much you can save by switching auto insurance companies

Twelve Ways to Save Money On Your Auto Insurance

Probably just about everyone you know complains about how much their auto insurance costs. This shouldn’t come as a surprise, since most people pay at least a couple hundred dollars every year for their auto insurance. Of course, your policy premiums can cost you a lot more than that because of your driving record, age and a number of other factors. So is there actually any way to pay lower auto insurance premiums and save some money?

You can’t go without auto insurance if you own a car, because it is illegal in most states. You are also required to have a minimum amount of liability coverage, too. Of course, smart drivers usually have more than the bare minimum of auto insurance coverage if you want to have protection that is adequate and appropriate for your personal needs. So what do you do to save yourself money? You can reduce the cost of your auto insurance in a few simple steps and not cancel your policy outright. Below are twelve ways to reduce the cost of your auto insurance. However, not all of these ideas will work for you, but chances are good that you will find one or more that are appropriate for your needs.

Twelve ways to save money on auto insurance:

1. Shop around
You don’t have to keep the same old auto insurance policy forever. It pays to shop around, especially when your policy is getting ready to be renewed. If your policy premiums are going up, you might find that you can get the same type of coverage for cheaper than you are paying now. Auto insurance prices vary widely among different auto insurance companies even though they are all regulated by the same state agency that dictates auto insurance range limits.

2. Make Sure your Credit Score is Good
Every auto insurance company is going to look at your credit report when the offer you an insurance quote. The reason for this is because there is a relationship between people who have a poor credit history and engage in driving behaviors that put auto insurance companies at risk. People who pay their bills on time and have a good credit score find that they pay less for auto insurance than people who don’t.

3. Increase your deductible
Raising your auto insurance deductible is another simple way to lower your auto insurance premiums. Increasing your deductible can reduce your overall auto insurance costs by as much as ten percent. You can increase your deductible from $250 to $500, and your premium will go down. However, you need to keep in mind that you will have to have the financial resources to pay your higher deductible if you get into an accident.

4. Drive less
This may sound like a no-brainer, but many auto insurance policies will give you a discount if your meet their low-mileage requirements. This can usually be around 7500 miles a year. If you think you can qualify for this, go for it! Some ways you do this are to use public transportation or carpool for your daily commute, and take the train or fly if you plan on going on vacation.

5. Drive Safely
Again, a total no-brainer, but if you have a clean driving record for a specific period of time, you can get a “safe driver” discount. Most auto insurance companies require a three year period in which you have had no accidents, speeding tickets, convictions for drunk driving, and any other moving violation. Most drivers can qualify for this discount by driving defensively and making careful driving decisions as your go about your daily life.

6. Don’t use your car for business
When you use your car for business purposes, you will usually have higher premiums because it means the auto insurance company must assume more risk on your behalf. If you don’t have to use your car for business, then don’t.

7. Buy a lower profile car
Auto insurance companies rate vehicles on a risk scale. This means that sports cars, high performance vehicles and other flashy rides are considered to be at the high end of the risk scale. This is because these vehicles are more likely to be stolen, and the people who drive them tend to make poor driving decisions, including reckless driving and speeding, just to name a few. If you drive a high profile vehicle, be prepared to pay more for auto insurance than if you driver a sedan or some other type of lower risk vehicle.

8. Store your car in a garage at night
Auto insurance companies will give you a discount if you store your car in a garage at night. This is because cars that are in a garage run less risk of being vandalized, stolen, or hit by another motorist. The discount for this is usually small, but every little bit helps when it comes to lowering your auto insurance premiums.

9. Move To Another Area
People who live in rural communities tend to have less crime and less traffic congestion than people who live in more urban city areas. This is because urban vehicles can be stolen, vandalized, be involved in an accident and be subject to more wear and tear than rural vehicles. Consequently, auto insurance companies will charge less for rural drivers. Of course, you can’t move just to save money on your auto insurance, but you can consider that an issue if you are thinking about moving from one area to another.

10. Install safety and anti-theft devices
Auto insurance companies offer discounts on safety devices like automatic seat belts, anti-lock brakes, and airbags. They also offer discounts for anti-theft devices like alarm systems or tracking systems that will track your vehicle if it is stolen.

11. Check into multifamily/multipolicy discounts
Most auto insurance companies offer discounts if you use them for other types of insurance, as well. For instance, you can have your home and auto insurance through the same company. There can also be discounts for insuring more than one vehicle with the same company.

12. Other discounts
Most auto insurance companies offer a myriad of discounts based on various criteria. Ask about discounts for being an AAA member, taking defensive driving courses, or being a loyal customer.
You never know until you ask!

The Top Ten Insurance Myths You Need to Know!

Myth #1: Hey, You're Paying the Premiums... Insurance Should be Bought and Used for Every Accident and Disaster.

Insurance is designed to protect one from catastrophic disasters. An insurance rule of thumb: If you can pay for the loss or damage without a financial hardship then pay it, otherwise expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn't necessary. Sometimes the risk is worth taking rather than paying a premium.

Myth #2: If I am Alive, I Must Need Life Insurance!

Life insurance is designed to take care of one's dependants after the caregiver's death. If you have no dependants, then you probably don't need life insurance. This includes children and retired persons... usually they don't have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary.

Myth #3: I'm the Breadwinner in the Home, So Only I Need Life Insurance.

Have you seen the cost of childcare lately? Add that along with housekeeping, food preparation, home accountant, and school transportation. From that list alone one can see how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship.

Myth #4: Whole and Universal Life are the Best Life Insurance Choices Since I Can Get My Money Back.

Term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Lean more about Term, Universal, and Whole Life at Life Insurance Policy Basics.

Myth #5: Flood Insurance is Only for People Who Live in a High Risk Area.

Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Check with your insurance agent to learn more or find additional information at Why didn't my policy pay for damage caused by a flood?

Weekend Insurance Tip: Decide if You Should Accept Worker's Compensation Insurance Benefits

If you have ever had a job, you have probably heard of worker's compensation insurance. Maybe you have even received worker's compensation benefits from your employer. Most employees don't even think much about the worker's compensation insurance that their employer provides, but that may a big mistake for some.

Generally, employees feel it is great to get benefits if they get hurt at work but accepting your employer's worker's compensation insurance may not always be the best choice for everyone. There are pros and cons to accepting worker's compensation insurance and if you don't understand how it works then you cannot make the best choice for yourself.

Online Auto Insurance Quotes Tips

1. Know who in your family will be covered by your auto insurance policy. Check to see if your current policy is accurate, in regards to this information.

2. Be able to list your current auto insurance policies' details of coverage.

3. Write down your vehicles' VIN number.

4. List the make, model, and year of your car.

5. View your current policies' deductibles and coverage before going online for an auto insurance quote.

6. Be honest about your moving violation tickets.

7. Pay close attention to the auto insurance quotes' coverage expiration.

8. Understand your state requirements for auto coverage to remain legal.

9. Pick an effective date; when you would like your new auto insurance policy to take effect.

10. Expect a licensed, insurance professional to contact you promptly concerning your quote request.

11. Getting online auto insurance quotes can be an effective way to save money.

Disclaimer: Always consult a financial profession to determine what coverage is right for you.

A Life without Life Insurance

For whatever reason, buying life insurance has been reduced to an afterthought. Many of us are uncomfortable with facing our own mortality. Yet others do not see the value of life insurance because they are single, or will not live to receive the tangible benefit of having this coverage, unlike health insurance. Maybe you have been turned down for coverage because of a health condition, but most still can qualify for a graded death benefit policy.

Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.

Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.

Life Insurance Uses:

• Death Benefit
• Provide income to pay off the mortgage in the event of death
• Replace lost income that your spouse and children would otherwise miss
• Make sure that future college tuition can be paid
• An effect way to pay off children and spouse who do not participate in family business
• To pay possible Estate Taxes
• To provide liquidity when many assets are tied into Real Estate

Understanding Auto Insurance

Have you ever looked at your auto insurance policy and saw numbers such as 50/100/50 and wondered what they mean? Or have you seen symbols such as UM, and never bothered to ask because you did not want to be perceived as not knowledgeable! Well anyway I hope you learn something new today.

Auto Insurance Liability Coverage

Seeing numbers like 50/100/50 is nothing new on the auto insurance policy. The first 50 or $50,000 is the maximum amount your policy will pay for bodily injury in a single auto accident, for any one person, which you are legally responsible for damages. These people must not be in your car to be eligible to collect under this section of your coverage. The 100 or $100,000 represents that highest amount your insurance policy will pay all parties in one accident, for which you are legally obligated to pay. It does not matter if two or twenty people are injured. The last 50 or $50,000 is the most your auto policy will pay for the physical damage to a vehicle you damage. Those Benz's are getting expensive!

Auto Medical Coverage

By now you probably grabbed your auto insurance policy! Look for a number between $1000 - $5000. Underline or highlight this number because it is important to you. This number pays necessary medical and burial expenses up to that dollar limit. The benefit covers you, and anyone in your auto only, regardless of fault in an auto accident.

Uninsured Motorist Coverage

Maybe the most misunderstood concept in auto insurance history is Uninsured Motorist Coverage. This coverage in your policy covers your bodily injury if you injured in an auto accident, the court rules in your favor for bodily injury, and the other driver is classified as an uninsured driver. Are you wondering who is an uninsured driver? An uninsured driver is any of the following:

• A person who does not have enough liability insurance according to the laws of that state (e.g.. Indiana 25/50/25)

• A driver who hits your vehicle and their identity remains a mystery

• A person who has no insurance and cannot pay the judgment against them

• An individual whose insurance company is broke or refuses to pay

Auto Physical Damage Coverage

This section of your auto insurance policy covers damage to your vehicle. If someone in another vehicle hits your auto it is called a "Collision" Otherwise if hail, theft, explosion, fire, etc., destroys your car it is "Other than Collision" or commonly referred to as "Comprehensive Coverage." What is next, pay the deductible and file the claim and get your car fixed. Your insurance company goes after the bad guys. Remember if you are involved in an accident to call your insurance company first. Some people do not realize that your insurance company will represent you in court! You usually pay for that right in your policy, so use it!

Insurance: Just Married

Insurance is a major concern when you say "I do." Couples need to be aware of their responsibilities to one another, in regards to insurance. There are certain insurance coverage's that should be discussed in particular by married people.

Life Insurance can be used to protect against the lost of one's present and future earnings. Also, you might have recently made a major purchase such as a bigger home or luxury vehicle. It is important to review your current life insurance coverage, because to most, it is necessary to protect their spouse from financial ruin in the event of an unexpected demise.

Health Insurance can lead to endless discussion, when it comes to married people. When both spouses have health insurance at work, the total family cost is one of many factors that should be discussed. This is the perfect time to review one another's coverage and compare apples to apples when applicable. Married couples need to decide to stay with their health insurance policy or join with their spouse's plan. This is not usually an issue if someone is self-employed, the group health insurance of your spouse often makes more sense than an individual policy. Decide whether the Company's PPO, POS, or HMO makes sense for your particular situation.

Disability Insurance, short-term and long-term may have been included in your employee benefits. However if this is not to the case, spouses need to discuss how they will be able to pay the mortgage and bills if one or both of them became disabled. This is a plug for reading your employees' benefit book. Auto and Homeowners Insurance takes credit into account. Remember if your spouse has bad credit, it can negatively influence the cost of your policies, that will be written in the future upon renewal.

Buying Insurance as married folks can lead to bitter discussion. However if no discussion is ever made, then chaos can come from doing nothing. To never have that talk about buying additional life insurance might lead to a default on the mortgage when the other spouses dies. Choosing the wrong group health insurance may lead to greater out of pocket expenses. Please read and know what benefits you are entitled to under your individual and group plans.

Health Insurance and Uninsurable

Sometimes individuals will find themselves uninsurable for individual health insurance. When this occurs, individuals may feel there is no where to turn. While coverage may not be as comprehensive, you still have options to consider.

Terminal cancer patients and diabetics using insulin are probably not eligible for an individual health insurance. Sometimes when people are turned down for insurance, their questions on available coverage may be left unanswered. Do not despair, the web has most of your answers.

You may seek health insurance coverage from your state. Your state health insurance plan probably will not be as good but it beats nothing. The price will probably be less, however most state plans have only one option. The catch is you must be denied coverage by one health insurance company in your state to apply. Call your state insurance department for more information.

Another option would be a HealthCare Savings Plan. These health plans are not insurance but negotiated fee for service with participating doctors and hospitals. Advantages of such a plan include no waiting period and no exams.

If you find yourself denied for individual health insurance, you still can get coverage. If you are eligible for group health at work, by law you will not denied coverage. Otherwise you may qualify for your state health insurance plan or apply for an Alternative Health Insurance Plan

Long Term Care Insurance: Staying at Home

Long term care insurance is much more than nursing home insurance. Yet many of us have been sold on this idea that "you do not want to be in a Medicaid nursing home and broke." Hopefully after reading this article, you will see long term care insurance in a different light.

It is true that a nursing home's cost can be financially devastating. According to the 2000 ACLI Study, "Can Aging Baby Boomers Avoid the Nursing Home" the average nursing in the US costs $44,100 a year and care in your home is $15,743. Long term Care Insurance polices have been sold on the premise that the cost of the nursing home is going to bankrupt you.

People can relate better to receiving long term care help at home. While it is hard to believe that no one knows someone in a nursing home, it is possible that it may not register. It is unfortunate, but often when people are put in nursing homes, a phenomenon called "out of sight out of mind" can take place. We do not attempt to forget people, but when Ms. Johnson does not call you anymore, you may soon do the same. The reason we illustrate that point is because we all can visualize someone at home, who has a RN nurse or assistant visit them 4 or 5 hours a day, but maybe not at a nursing home.

Long Term Care Insurance protects you not just in the nursing home. The reason to investigate Long Term Care Insurance, is because you can control your environment, and dictate when the nurse will come to your home. If the state is paying for it, they will tell you when the nurse will see you. Besides do you want to have to choose between receiving care and your prescription drugs. Sure people may say that was a horrible thing to say, but it is possible. When you become sick and need long term care, it is too late to qualify for coverage and no knows how long they will be sick. Long Term Care Insurance can allow you the freedom from worry, depending on the coverage you select. Most polices will even train someone to be an informal caregiver, whether it is a family member or friend.

Remember Long Term Care Insurance is more than coverage for nursing home. It provides benefits of care that can take place in one's own home. The picture of someone becoming broke and going in a nursing home is not as vivid as someone needing care at home. The nursing home is usually the last straw, but to be at home and worrying about needing long term care can be emotionally damaging and financially devastating.

Group Health Insurance Quote Tips

Group Health Insurance is necessary to attract and keep good employees. While employers may not like the cost of group health, they should be aware of the benefits to the company and overall morale. There may be things you as an employer can do to alleviate some of this costly pain. Also, all Group Health companies and insurance agents that offer them are not created equal.

The cost of this health insurance versus the need for solid employees should be weighed. There a perception that many in this country that employees will take a cut in pay if they were to be guaranteed a group health plan. There is a simple explanation for this reasoning. People know they will have to go the doctor. Women need to have mammograms and pap smears, the children need their shots and physicals, and men need their prostrate examined, people realize these services cost money. Employees often would prefer that you take money out their check for group health then for them to write a check each month for it.

It is the job of to keep your group health cost to a minimum. If you already have a group health plan, you can raise the deductible to discourage overuse of coverage by your employees. However a dramatic raising of group health deductible or co-payment may cause some rumbling among your employees. Yet it is t is a good idea to start with a lower deductible, so you can absorb rate increases. (Your group health rates will go up) Also know beforehand what networks are in your area, and what health networks most of your employees' doctors belong to.

It is very important to review and understand your group health quotes that you will receive. Any insurance agent or broker that provides you with initial group health quotes over the phone, without having your employees fill out any applications, is doing you a disservice. Unless the agent is the Great Houdini, no one in our field can give you a firm, group health quote without a thorough underwriting. Group Health Insurance is too complicated to be taken this casual. Remember, look for an agent that gets to know your particular situation, understand your needs, and has the group health benefits that meet your expectations.

Is going with the biggest named group health insurance companies, the best choice? Choosing the "big name" companies over less known, group health insurance companies with reputable ratings, may not be in your employees and yours' best interest. All group health plan are not designed the same. If XYZ, group health companies pays 80% for a mammogram and ABC, group health company pays all, could it make sense to you to check the other benefits of the health plan?

Employers realize that they must offer group health to attract and keep quality employees. There are a few hints that can keep group health costs down. It is important to realize that an initial group health quote, with no underwriting is worthless and probably should never be used. The listings of the benefits of the group health plan would be meaningful. While big companies have good "branding," do not overlook smaller group health companies with good ratings.

Do I need Long Term Care Insurance?

Long term care is becoming a major concern not just for the elderly but for all Americans. We are all one moment away from an injury or illness that could require long term care treatment. Yet even if we are fortunate enough to go through life without ever needing personal care, it is reasonable safe to suggest that a family member will.

The image of someone sitting in a nursing home away from their loved ones is a fixture in our minds. However a substantial amount of long term care administrated in the United States is done in one's home. We need to ask are these images of Grandpa by the window in Cherry Acres part of the reason people do not protect against the need of long term care? It could be part of the problem ,but many more seem to be in denial or misinformed. Some people are under the impression that long term care insurance is nursing home only insurance, which only helps to reinforce pictures of Grandpa in the nursing home. While long term care insurance can cover the costs of a nursing home, it also can pay for adult living facilities, adult day care, respite care, hospice, and home care.

The question is who is going to administrate the help needed and pay for it? Many people believe that Medicare will pay for care or that they automatically qualify for Medicaid. Medicare only covers about 17.8% of nursing home costs on a national basis according to WebMD medical News by Patrick McCoy, CLU Legal, article 1601.50107, 1999. Also, based on the number of assets you have in your possession, you may not qualify for Medicaid. So you will be flipping the bill through personal savings or insurance until you are almost destitute. While others believe their family members will take care of them, you mist realize you are taking a big risk. Your family members may not be willing to take care of you 24 hours a day, or quit, or lose income because of you. We are all exposed to the possibility of needing care, and believe me long term care insurance can be more than just nursing home coverage.

Major Medical Health Insurance Definitions

Common Health Insurance Terms that you have seen but may have been afraid to ask.

Co-Payment: This is the amount of money you must pay for services rendered regardless of co-insurance and the deductible. (i.e. Jim goes to the doctor for a physical and is required to pay a co-payment of $15 for the services rendered.) Get Free Health Insurance Quotes for permanent plan individual or family insurance health plan from local insurance agents.

Deductible: Before the health insurance company will pay for procedures that exceeds office limits, or you are required by your insurance to pay first, you must pay the stated deductible and then the health policy will begin to pay. (i.e. Jim's doctor performs open surgery and the procedure costs $15,000. Jim has a deductible of $500 and is required to pay it before his health insurance pays.)

Coinsurance: You and your health insurance company have agreed to share the cost of paying for procedures up to a certain dollar limit called a Stop-Loss. Once the Stop-Loss is exceeded, your health policy will pick up the bill for covered procedures. (i.e. Jim has a 80/20 % Coinsurance and a $10,000 Stop-Loss. This means that Jim is required to pay 20% or $2000 of $10,000 of procedures in a given calendar year above his deductible. In the above case, Jim pays a $500 deductible and $2000 for his Coinsurance, his health insurance pays $12,500.)

Buy Online Health Insurance

There is a clinical arrogance by insurance agents that individuals do not buy health insurance online. Secretly these licensed individuals have been living in a bubble recently. As people have got more advanced in learning about their finances and general well being, often the knowledge they have obtained has been from the internet. (Get Free Health Insurance Quotes for permanent plan individual or family health plan from local insurance agents.)

To be honest, the movement towards going online has allowed many of us to seek answers to questions to have captivated. Health insurance is very important to all of us. Very few of us are willing to self-insure ourselves; generally it does not make good economic sense.

So why would people by health insurance online? People are comfortable with the internet and it resembles a mass dictionary. Often individuals do not want to take the time to sit down with an insurance agent. Maybe they had a bad experience or feel that a website will provide them with all of the necessary information to make an informed decision.

Regardless of whether you as an agent agree that individuals are unwise for making health insurance over the internet, you will have to continue to compete with the online entity. Take the time to educate everyone in your path concerning this life long needed product, otherwise see some of your profit go to insurance agencies profiting from the internet.

The History Of Life Insurance

Risk protection has been a primary goal of humans and institutions throughout history. Protecting against risk is what insurance is all about.

Over 5000 years ago, in China, insurance was seen as a preventative measure against piracy on the sea. Piracy, in fact, was so prevalent, that as a way of spreading the risk, a number of ships would carry a portion of another ship's cargo so that if one ship was captured, the entire shipment would not be lost.

In another part of the world, nearly 4,500 years ago, in the ancient land of Babylonia, traders used to bear risk of the caravan trade by giving loans that had to be later repaid with interest when the goods arrived safely. In 2100 BC, the Code of Hammurabi granted legal status to the practice. It formalized concepts of “bottomry” referring to vessel bottoms and “respondentia” referring to cargo. These provided the underpinning for marine insurance contracts. Such contracts contained three elements: a loan on the vessel, cargo, or freight; an interest rate; and a surcharge to cover the possibility of loss. In effect, ship owners were the insured and lenders were the underwriters.

Life insurance came about a little later in ancient Rome, where burial clubs were formed to cover the funeral expenses of its members, as well as help survivors monetarily. With Rome's fall, around 450 A.D., most of the concepts of insurance were abandoned, but aspects of it did continue through the Middle Ages, particularly with merchant and artisan guilds. These provided forms of member insurance covering risks like fire, flood, theft, disability, death, and even imprisonment.

During the feudal period, early forms of insurance ebbed with the decline of travel and long-distance trade. But during the 14th to 16th centuries, transportation, commerce, and insurance would again reemerge.

Insurance in India can be traced back to the Vedas. For instance, yogakshema, the name of Life Insurance Corporation of India's corporate headquarters, is derived from the Rig Veda. The term suggests that a form of "community insurance" was prevalent around 1000 BC and practiced by the Aryans.

And similar to ancient Rome, burial societies were formed in the Buddhist period to help families build houses, and to protect widows and children.

Modern Insurance

Illegal almost everywhere else in Europe, life insurance in England was vigorously promoted in the three decades following the Glorious Revolution of 1688. The type of insurance we see today owes it's roots to 17th century England. Lloyd's of London, or as they were known then, Lloyd's Coffee House, was the location where merchants, ship owners and underwriters met to discuss and transact business deals.

While serving as a means of risk-avoidance, life insurance also appealed strongly to the gambling instincts of England's burgeoning middle class. Gambling was so rampant, in fact, that when newspapers published names of prominent people who were seriously ill, bets were placed at Lloyd’s on their anticipated dates of death. Reacting against such practices, 79 merchant underwriters broke away in 1769 and two years later formed a “New Lloyd’s Coffee House” that became known as the “real Lloyd’s.” Making wagers on people's deaths ceased in 1774 when parliament forbade the practice.

Insurance moves to America

The U.S. insurance industry was built on the British model. The year 1735 saw the birth of the first insurance company in the American colonies in Charleston, SC. The Presbyterian Synod of Philadelphia in 1759, sponsored the first life insurance corporation in America for the benefit of ministers and their dependents. And the first life insurance policy for the general public in the United States was issued, in Philadelphia, on May 22, 1761.

But it wasn't until 80 years later (after 1840), that life insurance really took off in a big way. The key to it's success was reducing the opposition from religious groups.

In 1835, the infamous New York fire drew people's attention to the need to provide for sudden and large losses. Two years later, Massachusetts became the first state to require companies by law to maintain such reserves. The great Chicago fire of 1871 further emphasized how fires can cause huge losses in densely populated modern cities. The practice of reinsurance, wherein the risks are spread among several companies, was devised specifically for such situations.

With the creation of the automobile, public liability insurance, which first made its appearance in the 1880s, gained importance and acceptance.

More advancements were made to insurance during the process of industrialization. In 1897, the British government passed the Workmen's Compensation Act, which made it mandatory for a company to insure its employees against industrial accidents.

During the 19th century, many societies were founded to insure the life and health of their members, while fraternal orders provided low-cost, members-only insurance. Even today, such fraternal orders continue to provide insurance coverage to members as do most labor organizations. Many employers sponsor group insurance policies for their employees, providing not just life insurance, but sickness and accident benefits and old-age pensions. Employees contribute a certain percentage of the premium for these policies.

Final Thoughts

Even though the American insurance industry was greatly influenced by Britain, the US market developed somewhat differently from that of the United Kingdom. Contributing to that was America's size, land diversity and the overwhelming desire to be independent. As America moved from a colonial outpost to an independent force, from a farming country to an industrial nation, the insurance business developed from a small number of companies to a large industry.

Insurance became more sophisticated, offering new types of coverage and diversified services for an increasingly complex country.