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A Beginner's Guide To Renter's Insurance

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Most of us know that people who own their residences carry – as a matter of fact, are often required by mortgage companies to carry – homeowners insurance to protect their property, their possessions and any injury incurred by visitors. But what about people who are leasing their living space? Renter's insurance protects against loss or damage to your personal belongings when you occupy a rental property – anything from a studio apartment to an entire house or mobile home. Renter’s insurance can also provide liability protection for you in the event someone else is injured on that property.

Things To Consider When Choosing An Insurance Company

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When choosing an insurance company, there are several factors to take note of to help you make a wise and if possible, the best decision. Consider some of the factors below:



  • Check out a company’s ratings: What is the quality rating of the insurance company, as published by the main rating agencies in comparison with their peers?
  • The paying ability, financial strength, asset, etc of the company matters
  • Find out if the insurer is a specialist in this area of insurance coverage
  • Will it be possible to meet or speak with any of the insurance company's agent and will you be working from time to time with the same person (agent)?
  • Will the company be able to provide an insurance coverage that is adequate enough for your needs?
  • Is the insurance company's policy premium cost effective when compared to similar/other insurance companies?
  • What are the deductibles you are to pay?
  • What is the process and procedures for payment of claims?
  • Does the insurer give family discounts on premiums for multiple policies?
  • If closeness is going to be an issue, is there a local office nearby that will attend to you?
  • Complaints made against the insurance company: Consider the company's record for claim refusal. Your State's Insurance Commission may have a record of complaint.
  • The size and life span of the insurance company 
  • Seek assistance from a seasoned insurance professional 

Benefits of Insurance In Business

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 Anyone who is going into business today must be aware that to be successful, he/she has to take risk. But what of those kinds of risk you have no control over? What do you do to at least reduce the consequences of these uncontrollable risks in business? The answer is simple! Insurance! Make sure you insure your business to take care of those uncontrollable risks that may occur in the future.
As you read on, you will learn about the type of risk your business may face and the benefits of insuring your business.
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Types of Business Risks

There are many types of risks in business but the most common forms of risks include but are not limited to:
  1. Legal Risks-: This is the risk of a company or its officers being sued for misconduct or negligence. A business may be accused of non-compliance with rules and regulations or standard practices which may lead to a law suit and if found guilty, it may lead to serious financial and non-financial consequences. This kind of risk is applicable to all kinds of businesses but is more prominent in businesses that deal directly with customers.
  2. Physical Risks-: These are risks that act as physical threats to the existence and smooth operation of a business. For instance, fire disasters, explosions, flood, spillage etc. are typical examples of physical risks.
  3. Financial Risks-: From the moment a person invests a dime into a business venture, the person undertakes a financial risk because there are probabilities that the business wouldn’t do well and this may lead to a loss of investment. Also, in the course of running the business, some things may occur that would cause the business to lose some money and if not properly guarded against and managed, this may lead to the death of the business.
  4. Intellectual Property Risks-: This risk arises as a result of a company not taking sufficient steps to protect its intellectual property and inventions and as a result, it gets stolen and leads to a loss for the business.
  5. Economic Risks-: Remember the 2008/2009 Global Economic Meltdown and how it affected companies with many of them closing down? That’s a typical example of how economic factors can affect a business.
  6. Inherent Risks-: Inherent risks have to do with the nature of a business.
  7. Credit Risks-: This involves the debtors of a business and the probability that they wouldn’t pay their debts at the end of day leading to financial losses by the company.
  8. Market Risks-: This has to do with changing market conditions, buying patterns and changes in demands and trends that may affect the sales and profitability of a business.

Benefits of Insurance in Business Risk management

  1. Prevents And Minimizes Financial Losses-: Insurance helps you to reduce financial losses when unfortunate events occur. For instance, when there is a breakdown of equipment your company might not be able to function properly and this might lead to a loss of revenue but you can use a business interruption insurance policy to guide against this such that the insurance company covers for any losses incurred during the period.
  2. Promotes Continuity Of Business-: When some companies are hit with sudden and unplanned unfortunate occurrences, it may lead to the end of it if not properly managed but insurance helps to minimize risks so that the business continues to operate and grow regardless.
  3. Risk Sharing-: Insurance also helps to achieve risk or loss sharing in business. Such that when a company makes losses instead of profits, the insurance company can come to the rescue. Also, when businesses are hit with misfortunes, they may not be able to solely afford the costs of getting back up and running again but when the business is insured, the risks are shared between the company and in the insurance company such that both parties can collectively get the business up and running again.
  4. Protects Business Image-: When a business goes down, it is not only the business that suffers; the customers, stakeholders, shareholders and the public are affected too. Therefore, insurance helps to manage bad occurrences so that customers and every other person attached to the business can be protected.
  5. Protects The Business Against Debtors-: Sometimes, debtors also pose risks to the business and insurance can help to protect the business against defaulters.
  6. Effective Use Of Resources-: Insurance also helps to promote and ensure that resources are put to the best use. For instance, health insurance helps to ensure that employees are of perfect health and happy so that they can put in their best. Happy and healthy employees equals positive output.
  7. Provides Assurance To Stakeholders And Investors-: Also, when a company is insured, it provides a kind of assurance to people who may consider doing business with them. Insuring your company attracts shareholders and customers to your business.

CONCLUSION

The benefits of insurance to your business is limitless and boundless, so, you would be doing yourself a whole lot of good by insuring your business.

Renter's Insurance: What Does It Cover?

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 We all have so many questions about Insurance, the policy to buy and what it covers. I hope this article helps.
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A. Theft

1. General
An all-perils renter's insurance policy provides worldwide theft coverage for personal property. It doesn't matter where you travel to as an insured renter: Theft coverage travels with your belongings.
2. Car
An all-perils renter's insurance policy does not cover the theft of a vehicle. It does, however, provide coverage for personal property stolen with a vehicle or from a vehicle, and this applies wherever the vehicle is: in your home town, out of state or out of the country.
3. Bicycle
Bikes count as personal property, and as such, are fully insured. If you have an especially expensive model, it might be best to schedule it on the policy, as when insuring anything unique or of high value.

B. Mold

Coverage differs from one insurance company to another and from state to state. An all-perils renter's insurance policy typically provides a low set amount of coverage for damage caused by mold as long as it occurred from a covered peril. In a named-perils policy, mold coverage must be specifically included. If it isn't, mold coverage may be purchased through a rider.
The insured must make a good faith effort to remedy the problem as soon as it is detected. This includes contacting the owner or property manager of the structure. The owner is responsible for repairing and mitigating any mold, and dealing with the water leak or whatever caused damage in the first place. Both the tenant and owner policies could be used together to subrogate claims.
Subrogation is a term denoting a legal right reserved by most insurance carriers. Subrogation is the right for an insurer to legally pursue a third party that caused an insurance loss to the insured. This is done as a means of recovering the amount of the claim paid by the insurance carrier to the insured for the loss.

C. Water Damage/Flooding

An all-perils renter's insurance policy does cover water damage, if the damage is a result of a water leak inside the structure, like from a burst pipe or faulty water sprinkler. Damage caused by rising water from an exterior source, such as a flood, would not be covered by renter's insurance. Separate flood insurance would need to be purchased through the National Flood Insurance Program or a private carrier that offers flood insurance in the region where the dwelling is located (though you need only buy coverage for your belongings, not the building itself).

D. Storage Units

An all-perils renter's insurance policy provides coverage for the contents of storage units, excluding autos. It does not matter where a storage unit is located. Most policies limit the amount of off-premise coverage to around 10% of the total personal property coverage. Limits on the types of covered perils still apply. In certain areas, perils such as earthquakes and hurricanes may not be covered. Flooding from external rising waters would not be covered under a renter's insurance policy, either.

E. Personal Injuries

Renter's insurance provides two main forms of coverage – liability and contents insurance.
The liability insurance portion of your coverage can protect you in case a visitor is injured on your property.
In the event of a lawsuit, your renter's insurance policy would cover the legal costs and any payouts that you would be responsible for if you are found legally liable. Some examples of payouts would be a medical bill directly related to the accident or replacement of a third party's property that was damaged in your home.
Depending on your policy, your family members may also be covered against personal injury. For example, if your son, who lives with you in your rented apartment, has a guest over and that guest suffers a slip-and-fall injury due to your son's negligence, your renter's insurance would cover the legal costs and medical expenses of the guest.

F. Pet Damage

Most renter's insurance does not offer coverage, or at least full coverage, for pet damage. A policy that does offer that usually includes clauses in the contract specifying the types of scenarios in which the coverage applies.
Usually, it has to do with someone else, or someone else's property. A good scenario is this: If your dog rips up the carpet in your own apartment, it may not be covered, but if the dog chews up the alligator suitcase belonging to a house guest, it may be. Basically, if your pet is legally responsible for damage to a visitor's belongings, or bodily injury to the visitor, chances are that the pet coverage will assume the liability.

G. Bed Bugs

Renter's insurance policies do not cover bed bug infestations. Bed bugs are typically included in the same category as other vermin, such as cockroaches and mice. Detecting and cleaning a bed bug infestation is considered a maintenance expense and a responsibility of a renter.
Providers of renter's insurance exclude bed bug or any other type of infestation for numerous reasons. One possible reason is the difficulty in determining the cause of the infestation; it could be due to negligence or carelessness on the renter's part.

H. Moving

An all-perils renter's insurance policy covers damage to items resulting from a covered peril during a move, such as theft. Fire and water damage would also qualify you to file a claim, but there are limitations and exceptions to this coverage. Most policies do not cover general damage to items resulting from a move, such as broken dishes or furniture.
If you hire a moving company, the company is responsible for getting the items moved without damage. Check into a moving company's liability insurance to make sure it offers replacement cost coverage on any damaged items; often, the moving company's insurance settles claims based on weight or the items' actual cash value.

The bottom line is, after you buy a policy, take an inventory of all of your personal belongings, and include photos, videos and appraisals. Store this list in a safe place; outside your home, a safe deposit box, a trusted friend or family member, or better still, send it as an attachment to your mailbox. By inventorying items, insured renters can be properly prepared in the event of a claim. In the event of a loss, report the claim to the insurance company as soon as possible.

Suitable Reasons To Purchase Renter's Insurance

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Renters insurance help cover the cost of replacing your stuff if it's unexpectedly damaged or ruined. That protection generally applies to certain risks (also referred to as "perils"), such as fire and theft. It is a policy that protects your home valuables.
If you're renting an apartment or home, you'll need an insurance policy to cover your belongings. Your landlord's property insurance policy covers losses to the building itself – whether it's an apartment, a house or a duplex. Your personal property and certain liabilities, however, are covered only through a renter's insurance policy that you, as a tenant, have to find and pay for. While 95% of homeowners have a homeowner's insurance policy, only 37% of renters have renter's insurance, according to a 2014 Insurance Information Institute poll conducted by ORC International.
Then begs the question: why do so few renters have insurance? One reason for this is that so many people incorrectly assume they are covered by their landlord's policy. Another reason is that people underestimate the value of their belongings. If you add up the value of just your clothing and electronics, it probably wouldn't take long to get into the thousands of dollars. One more often overlooked reason is liability: If someone is injured in your house – a friend, neighbor, or the pizza delivery person – they could sue you.
So, even if you thought you didn't need insurance, here are some good reasons why you should get a renter's insurance policy.
See Also A Guide To Renter's Insurance
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1. AFFORDABILITY:
The average renter's insurance policy costs $187 a year, according to 2011 figures reported by the National Association of Insurance Commissioners (NAIC) in 2013. Your actual cost will depend on factors, including how much coverage you need, the type of coverage you choose, the amount of your deductible and your residence. If you're in Mississippi, for example, you'll pay the most (average $252 a year); if you live in North or South Dakota, you'll pay the least (average $117 a year).

2. IT COVERS LOSSES TO PERSONAL PROPERTY:
A renter’s insurance policy protects against losses to your personal property, including clothes, jewelry, luggage, computers, furniture, and electronics. Even if you don't own much, it can quickly add up to a lot more than you realize and a lot more than you would want to pay to replace everything. According to esurance.com, the average renter owns about $20,000 worth of personal property.
Renter's policies protect against a surprisingly long list of perils. A standard HO-4 policy designed for renters, for example, covers losses to personal property from perils including:
  • Damages caused by aircraft
  • Damages caused by vehicles
  • Explosion
  • Falling objects
  • Fire or lightning
  • Riot or civil commotion
  • Smoke
  • Theft
  • Vandalism or malicious mischief
  • Volcanic eruption
  • Weight of ice, snow or sleet
  • Windstorm or hail
  • Damage from water or steam from sources including household appliances, plumbing, heating, air conditioning or fire-protective sprinkler systems
It is worthy to note that losses resulting from floods and earthquakes are not covered in standard policies. A separate policy or rider is required for these perils. In addition, a separate rider might be needed to cover wind damage in areas prone to hurricanes. And renter’s insurance policies don't cover losses caused by your own negligence or intentional acts. For example, if you fall asleep with a lit cigarette and cause a fire, the policy most likely will not cover the damage.
Read Also Why you should purchase a disability rider on life insurance

3. YOUR LANDLORD MAY REQUIRE IT:
Your landlord's insurance covers the structure itself and the grounds, but certainly not your belongings. A growing number of landlords require tenants to purchase their own renter's insurance policies, and they'll expect to see proof of purchase. This could be the landlord's idea, or it could be an "order" from the landlord's insurance company – the idea being that if the tenants are covered themselves, some responsibility can be shifted away from the landlord. If you need assistance finding or obtaining coverage, your landlord may be able to help.

4. IT PROVIDES LIABILITY COVERAGE:
Liability coverage is also included in a standard renter’s insurance policies. This provides protection if someone is injured while in your home or if you (or another covered person) accidentally injure someone. It pays any court judgments as well as legal expenses, up to the policy limit.
Most policies provide at least $100,000 of liability coverage, and between $1,000 and $5,000 for medical-payments coverage. You can request (and pay for) higher coverage limits. If you need more than $300,000 of liability coverage, ask your insurance company about an umbrella policy, which can provide an additional $1 million worth of coverage for about $150 to $300 a year.

 5. IT COVERS YOUR BELONGINGS WHEN YOU TRAVEL:
Renter's insurance covers your personal belongings, whether they are in your home, car,or with you while you travel. Your possessions are covered from loss due to theft and other covered losses anywhere you travel in the world. Check your policy or ask your insurance agent for details on what constitutes "other covered losses."

6. IT MAY COVER ADDITIONAL LIVING EXPENSES:
If your home becomes uninhabitable due to one of the covered perils, your renter's insurance policy may cover “additional living expenses,” including the cost associated with living somewhere else temporarily, food and more. Check with your policy to find out how long it will cover additional living expenses, and if it caps the amount the company will pay.

In fact, the whole summary of the matter is that renter's insurance provides coverage for your personal belongings, whether they are in your home , car or with you while you're on vacation. In addition, renter's insurance provides liability coverage in case someone is injured in your home or if you accidentally cause an injury to someone.
Make sure you understand what exactly your policy covers,and ask your agent about any available discounts, deductibles and coverage limits. For example, be sure you know whether your insurance provides replacement cost coverage (RCC) for your personal property or actual cash value (ACV). The first will pay to replace your 15-year-old carpet, say, with a new one, at current market rates, while the second will only reimburse you for the value of a carpet that's 15 years old. Needless to say, RCC costs more.

Etisalat recharge card code: How to recharge your Etisalat Line

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This is a short post on how to recharge Etisalat line through USSD code. There are many ways to recharge your Etisalat number but we are more interested in explaining how to load your Etisalat mobile number through USSD code. You could decide to recharge via ATM, Quicktelller, Bank mobile apps, etc.... 

How to Deactivate FB account temporarily | Close Facebook Account Now!

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How to Deactivate FB account temporarily | Close Facebook Account Now! - There mare reasons why you should deactivate your account. One of which may be addiction - You can deactivate your Facebook account if you are feeling too addicted to it. We know how addictive Facebook can be ... so, this guide will help you deactivate your FB account for the mean time and you could reactivate it whenever it pleases you.

How do I deactivate or permanently delete my Facebook account?

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How do I deactivate or permanently delete my Facebook account?: Deactivating or deleting Facebook is an option you have to choose when deciding to leave Facebook. If you choose to deactivate your FB account, you can always return to Facebook and recover all your information. But be very careful if you choose to delete your Facebook account permanently because you will not be given the chance to regain your account. If you are sure about deleting your account, then you must download and backup your data from Facebook.

Can U Deactivate or Delete Your Facebook Account?

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Can U Deactivate or Delete Your Facebook Account? The answer is yes, you can decide to deactivate your Facebook account anytime and on any device you use in accessing your account. I'll show you how to deactivate your account in this blog post. Just read on!!!

Can U Deactivate or Delete Your Facebook Account?
Can U Deactivate or Delete Your Facebook Account?


When it comes to leaving Facebook, there are two choices you need to choose from: Either choose to delete Facebook account permanently or deactivate your Facebook profile temporarily.

What You Should Expect When Suing An Insurance Company

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Are you trying to sue an insurance company? Her are some things you should expect when doing it:
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  • You should hire a lawyer, likewise the insurance company. Your goal is to hire a qualified lawyer who is experienced in suing insurance companies. You should also make sure the lawyer has good references and recommendations.
  • Your lawyer and the lawyer for the insurance company will investigate and examine facts and the history of the dispute through a process called “discovery”. Discovery involves exchanging documents and conducting “depositions”. A deposition is a formal fact-finding process, under oath, conducted by the insurance company’s lawyer.
  • You and the insurance company spend money on court costs, experts, discovery and travel.
  • At some point during the case, your lawyer will prepare you for a “deposition.” When you are a “deponent”( an individual who under oath or affirmation, gives an out-of-court testimony in a deposition), you swear to answer questions truthfully. Your lawyer should protect you from unfair questions during a deposition by making “objections.”
  • If you do not settle, and your case goes to trial, you will be required to be a witness and testify in court.
  • A lawsuit can take several years to resolve. You will have to be patient and wait for the outcome.
  • You should be able to trust your lawyer to handle the case with occasional “check-ins” to keep you posted on the status.
  • You most likely will have to participate in mediation/settlement discussions.
  • You will have to weigh settlement offers and make decisions throughout the case.
So, you should be prepared before suing an insurance company.
Read Also:  Can you sue an insurance company

Can You Sue An Insurance Company?

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Filing a policy claim with your insurance company can be an arduous and intimidating process. Many people feel pressured and helpless when a massive insurance corporation refuses to pay on a policy, and think there is no way to contest it. The good news is that, if your insurance company refuses to pay on a policy, you can contest it. An insurance companies must obey the law like everyone else. It is important to know your rights to sue an insurer. Then begs the question; can you sue an insurance company?

Deactivate or Delete Facebook Account Permanently Now

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Ensure to downloaded a copy of your Facebook data before deactivating or permanently deleting it. You should also be aware of the fact that you can gain access to your Facebook account after you’ve deactivated it. But be very careful, you won’t get the chance to change your mind after you’ve deleted your Facebook account permanently. So, make certain that you want to delete account permanently.

Cheap Etisalat Data Plan For Android, Windows, Blackberry And iPhone - May 2017

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Etisalat data plan for Android, iPhone and Blackberry devices for the month of May 2017
You can subscribe to Etisalat Nigeria data plan with as low as #50 for 10MB and you can get 1GB Data for just #1,000 to browse the internet for 30 days.

How to Deactivate Facebook Account Temporarily

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How to Deactivate Facebook Account Temporarily: You can deactivate your Facebook account if you are feeling too addicted to it. We know how addictive Facebook can be... so, this guide will help you to deactivate for the mean time and reactivate it whenever you want to.

Reasons To Shop Around For Your Insurance

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Life, as we all know, happens, and at different stages in life, you’re going to need different protections from your insurance. That’s why an insurance checkup is often in order. Doing it annually may seem like a waste of time, but it could bring about some big savings. That’s particularly true if you have too much insurance. Even being underinsured can cost you if the unthinkable happens, but making sure you have the right level of insurance is not the only reason a checkup is important. It may be funny, but just as the human body needs check-up, your insurance need check-up too. From taking advantage of reduced rates to ensuring you are getting all the discounts accumulated and way over-due, here's a look at some reasons why shopping around for your insurance can save you money.

1) To Take Advantage of Rate Changes

Taking a look at it, one of the most important reasons why you want to do an insurance checkup is to save money. Rates can change more often than you can blink, driven by a wide range of variables and reasons, some of which are out of the control of the insured. Take homeowner's insurance for one example. If crime in your neighborhood decreases, so will your homeowner's insurance premium. Shopping around is the only way you will know if lower rates are available.

2) Your Status/Situation Has Improved

The timing of your insurance purchase can also have an impression on your rates and is another reason why you want to shop around fairly often. Take homeowner’s insurance again as an example. If you bought the policy after a rash of crimes or a big storm and things improved, your premiums could be cheaper. With auto insurance, the same logic applies. You may have signed up for your policy when your credit score had taken a hit, but now you’re in a better financial position and your debts are paid off and your credit score has improved. Or it may be that you had points on your driver’s license that are now gone. In both instances, by shopping around you are going to save money, and in some cases, lots of it.

3) Your Insured Items Got a Lift/Boost

Whether you own a home, car or fine art, what you pay for insurance will be based on the perceived risk. The more that risk is mitigated, the less you will pay in insurance. Take health insurance for an example. Someone who is healthy will pay less for insurance than someone who is sickly. But if that sick person got better, then his insurance should be reduced. The same can be said for an automobile or home. If you just bought a security system for your home or automobile, that is going to lower your risk and thus your premiums. But if you don’t shop around or at the very least let the insurance know about the upgrades, you won’t be able to save.

4) You Have Too Much Coverage

Whether it is on purpose or by mistake, often people end up with too much insurance coverage whether that’s for their health, home, automobile or life. Insurance is supposed to give you some peace of mind, but that doesn’t mean you have to overpay for it. While you may not have to check up on your insurance every year to make sure you have the proper coverage, it is something you should want to do more often than not. After all, you don’t want to have a full coverage on your automobile if it's more than 10 years old or $1 million coverage on a $50,000 condo.
On the flip side, being underinsured can also be a costly mistake. The last thing you want to happen is have a major disaster and not have enough insurance to cover the repairs. If we're talking about health insurance, not having enough of it could end up bankrupting you.

5) You’re Missing Out on Discounts

Insurance companies are in a cutthroat industry, and they want your business and will go to great lengths to attract and retain you as a customer. Meaning that discounts are all over the place. Whether you are shopping for homeowner's insurance, health insurance or for car insurance, insurers are going to offer you discounts that can range from single-digit to double-digit percentage savings. There are discounts for your age, risk, how many products you have with the company, whether you are a member of a particular group and so on. If you don’t shop around for your policies, you could be leaving money on the table in discounts and deals.

Suffice me to say that insurance is a necessary evil that is needed to give you peace of mind and although that peace of mind comes at a cost, it doesn’t have to be too much of a cost if you shop around for your insurance. Whether it's homeowner's, automobile, health or life insurance, going over your coverage, discounts and rates annually can results in big savings. Not to mention that it can ensure you have the right coverage for your individual needs. Doing nothing isn’t an option unless you want to miss out on potentially big savings.

Questions High Networth People Should Ask About Insurance

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Many high net worth families fail to acclimatize their insurance portfolios to protect their assets as their wealth grows. This is not bizarre as life has a way of getting very busy. A lot of people think once they have an insurance agent who has set up a comprehensive insurance program, it is on auto-pilot but life happens and things irrevocably change, thus it makes sense to review and update your insurance program from time to time to make sure you in fact actually have comprehensive insurance coverage.

Term Life Insurance And Universal Life Insurance Compared

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You've come across Term Life and Universal Life insurance policies and you are wondering whether there is any difference? Well, read on...

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TERM LIFE INSURANCE

Term Life Insurance is a temporary insurance which will usually terminate after a specified period of time. This type of insurance has a low premium compared with other types of life insurance.
Term insurance provides life insurance coverage for a particular period of time for a specified premium. For example, a $100,000 20-year term policy for an annual premium of $1,000 is a contract that allows you to protect your beneficiaries for the next 20 years. At the end of 20 years, the coverage either ends, or you can continue the coverage at a much higher premium. Term Life Insurance is the most basic of insurance policies. It is nothing more than an insurance policy that provides protection for accidental death and possibly debilitating injuries for a specified period of time. If you or your beneficiaries do not make any claims during the term of such a policy, the policy will typically expire worthless. Generally, term life insurance is cheaper to buy during the earlier years of life, when the risk of death is relatively low. Prices rise in accordance with increasing risks and advancing age.Term insurance provides life insurance coverage for a particular period of time for a specified premium. For example, a $100,000 20-year term policy for an annual premium of $1,000 is a contract that allows you to protect your beneficiaries for the next 20 years. At the end of 20 years, the coverage either ends, or you can continue the coverage at a much higher premium.

UNIVERSAL LIFE INSURANCE

Universal life insurance is flexible coverage which will be temporary or permanent depending on how the policy is funded by the policy owner.  Universal life insurance has a cash value which can be withdrawn by the policy owner, and can be invested in either a fixed interest or variable sub=account.  In a variable sub-account the cash value is invested in assets such as stocks and bonds.  How long the policy lasts will depend upon a number of factors including the premium payments made to the policy as well as the performance of the sub-account.
Universal life insurance falls under a broader category of policies sometimes referred to as cash-value, or permanent, insurance. These types of insurance policies combine death benefits with a savings component or cash value that is reinvested and tax deferred. The savings portion is accumulated throughout the life of the policy and can sometimes be cashed in at some future point. Because these policies are permanent, any early termination of the contract by the policy holder is subject to penalties. During the earlier stages of your life, a large portion of the premium paid to this policy is routed to the savings component. During the later stages of life, when the cost of insurance is higher, less of the premium is devoted to the cash portion and more to the purchase of insurance.
For example, if a 20-year-old adult purchases term insurance, his or her premiums might be $20 per month. With a universal policy, the same 20 year old might pay $100 a month, with $20 of that going toward death insurance and the remaining $80 going to the savings component. When the person reaches age 45, term insurance might cost $50 per month; however, with universal insurance, the person would still pay $100 a month, although a lower portion of this would go into the savings component.
Universal life insurance is a form of "permanent"  lifetime insurance. You'll pay a higher premium for that $100,000, but you'll have so much more flexibility. The insurance company will create a "cash value" account in this policy, and offer a guaranteed minimum interest rate on the growth. Part of your premium is used to pay for the annual cost of insurance, and the other part goes into a growing cash account that you can access at any time. Other benefits include:
1)  Adjustable coverage, so you can increase or decrease the death benefit as your needs change.
2)  Flexible payment options, so you'll be able to increase, decrease, or even stop your premium payments as your circumstances change.
3)  Growing cash value, so you'll have a "bank account" inside your policy that you can access for emergencies, college expenses, supplemental retirement income, or any other cash needs you may have.

CONCLUSION

According to most unbiased experts, term life is more appropriate for the average individual looking to insure him or herself against unforeseen events. However, this does not mean that term life is better for everyone. For example, individuals looking for the tax advantages associated with cash-value plans are not concerned with the prohibitive costs related to those plans, and individuals who start families later in life and need insurance to protect their loved ones may also decide that cash-value insurance is more suitable than term life.

Insurance Coverages You Didn't Think You'll Need

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We all know we need automobile, homeowners and probably renter's insurance coverage, but, do we really know what kind of coverage our policies offer? The chances are, unless you are well-versed in the ins and outs of insurance, there are a few types of insurance you didn't think you needed, when in fact, you might. Here are a few of the most-needed and least understood insurance types.

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1) Personal Electronic Equipment InsuranceIf you own expensive gadgets like TVs, speakers or other home electronics, you may want to consider Personal Electronic Equipment Insurance. This type of coverage is larger than what a standard home insurance policy will cover for damage or loss, including those that take place during an installation on stereos, computer equipment, flat-screen TVs and audio equipment. Depending on the policy, it may even cover the repair and replacement of the items.

2) Scheduled Personal Property InsuranceScheduled Personal Property (SPP) is handled as a "floater" to your home insurance policy, and assigns specific value amounts to prized items like artwork, jewelry, expensive handbags, designer clothing and furs (You will need to hire a professional appraiser to assign a value to the items). A common misinterpretation is that your homeowner's insurance policy will take care of these items in the event that you have a fire, are a victim of theft or other disaster which destroys the valuable contents in your home. While that is true, the replacement limits covered under a standard policy are typically much lower than the value of the property that was lost or damaged. For example, a wedding ring lost in a fire might be replaced at a maximum amount of only $1,500, according to the Insurance Information Institute. Furthermore, SPP will cover valuables that are lost during travel, are accidentally misplaced, and even, wedding rings that slide down the drain.

3) Burial InsuranceYou've probably seen and heard of people arranging for burial plots before death, but you can also buy a burial insurance policy that will help cover the costs of your funeral. Burial insurance policies are typically sold through independent life insurance brokers, and in some cases, funeral homes. The premium is usually only a few dollars each week or month, and the payout is dependent on the age of the insured at the time of death (The policy will usually pay more the younger the insured is at the time of death). While it may sound morbid, having a financial plan for the costs to cover your death is a fact of life. According to the National Funeral Director's Association, the average cost of a funeral in 2009 was $6,560.

4) Dog Bite InsuranceNo dog owner wants to think that his or her furry friend could harm another individual, but dog bites do happen. Funny right? Well, according to the Insurance Information Institute, "more than 50% of them happen on an owner's property, and they account for one-third of all homeowner's insurance liability claims." While most homeowner's and renter's insurance policies will cover dog bite liabilities, we live in a society filled with strife, and laws differ by state around owner liability. If your dog bites a person and you are sued, standard coverage limits included in your existing policies may not be enough to protect your personal assets. To increase limits, you can purchase an umbrella liability policy, which will cover you above and beyond the liability coverage amounts in a standard insurance policy.

5) Flood Insurance: While most homeowner and renter's insurance policies protect against natural disasters like fire, wind damage, hail and other perils, flood insurance doesn't fall under the list of covered incidents. To secure protection against flood damage, you need to purchase a separate flood insurance policy.

6) Wedding Insurance We all want to have that dream wedding, right? Well, a lot of money goes into having a wedding, including hiring vendors and paying upfront deposits in order to secure services well in advance of the big day. Wedding insurance is intended to cover any missteps that can happen when it comes to your wedding like replacing lost funds if the caterer you secured with a deposit stops returning calls, replacing item costs if your tailor ruins your custom-made dress during alterations, if the wedding gifts are damaged or you have to suddenly postpone the event due to death or illness. It is often sold through the same insurer you use for your homeowner's, renter's or auto insurance coverage.

To round this off, Insurance is based on protection from the unknown. Whether it's an unpredictable pet, prized possession or pending marital vows, make certain that you understand exactly what is covered in your current insurance policies to determine whether you may need to take on extra coverage, for financial peace of mind.

Questions On Life Insurance You Should Ask

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If you're in the market for life insurance, you might have been tempted by those ads claiming that "for just a few dollars a day, you can protect your family with $1 million in life insurance!" It sounds like a good deal, right? These adverts typically refer to term life insurance. As its name implies, term life insurance provides protection for a limited amount of time - or a specific "term" of years, such as 10, 20 or even 30 years.
It's fairly simple; if you die while your policy is active, your family will receive a death benefit, but the many types of term insurance and options can be confusing. Is term life insurance likely to do the trick for you? Start by asking yourself the following questions.

1. What am I trying to accomplish?
Before you purchase any kind of life insurance, think about why you're buying it. Are you protecting your family in case of an early death? Have you taken on additional debt that requires you to provide coverage? Are you looking to leave an inheritance to a charity?
Understand that in most cases, term insurance policies do not pay a claim - most people who buy term insurance "outlive" their policy's term. As a result, if you're shopping for insurance to protect financial obligations you may have for a very long time - possibly for the rest of your life - consider exploring another type of policy, called permanent insurance.
If you're in a cash crunch and have immediate obligations to your family, business partners, or lenders, term insurance can provide you with a quick, simple, short-term solution.

2. What's available?
Most people will have access to at least one of the two types of term insurance policies: group or individual.
  • Group - Most companies offer their employees some form of term life insurance as an employee benefit. This is called Group term insurance, because you're getting protection as part of a larger group. Usually it's deducted right from your paycheck and the only requirement for coverage is to complete a brief questionnaire with details of your health history. Here are some of the advantages of group term insurance:
    • It's easy - You can usually sign up for a policy when you take a new job and enroll in your company's benefits program. You may also have an opportunity to sign up during the annual enrollment period at your company; when you may sign up for other benefits, such as medical, dental, or an employer-sponsored retirement plan.
    • No medical - Most group plans don't require a physical exam. A statement of good health, along with a medical history, is usually all that's required to secure coverage.
    • Automatic payments - Through payroll deduction, you'll hardly feel the financial hit of paying premiums every month.
  • Individual - As the name implies, an individual policy is one in which you apply for coverage on your own. You - or typically a family member - will own the actual policy. In order to obtain an individual policy, you'll probably have to undergo a medical exam of some sort, provide a detailed medical history, and give the insurance company permission to look into your medical records and perform a background check on any driving offenses and criminal activities. This might sound a little invasive, but there are some great benefits to owning an individual life insurance policy.
    • It's portable - If you take a new job at a different company, you don't have to worry about losing your life insurance protection.
    • Level premiums - Generally, individual policies can be structured to have level premiums for the duration of the policy; typically this is a 10-20, or 30-year period.
    • Flexibility - If you ever want to upgrade or convert your term policy to a permanent policy, you might have more options available with an individual policy than you would with a group plan.
3. What if I don't die?
Ludicrously, some people who buy term life insurance get upset when they find out that if they don't die, they don't get anything back.
If this is a concern for you, it's important to get an understanding of what will happen to your policy as you near the end of the term.
  • Premiums go up - Many term policies offer level premiums for several years (10, 20 and even 30 years, for example). As you approach the end of that term, you may have the option of keeping your policy. If you do, you can expect a hefty jump in your premium.
  • Might need a new policy - If you are still healthy at this time in your life and you want to keep the coverage, it may be best to apply for a new policy.
  • Drop in coverage - Perhaps you only wanted your policy to cover you as long as you had a mortgage, or until your children's college education was paid for. If that's the case and you have no other obligations to protect, you might want to let the coverage expire.
  • Upgrade the policy - Most term policies come with a "conversion privilege". This allows you to essentially trade in your old term policy for a new permanent policy.
4. How can I upgrade this policy?
As mentioned previously, most term policies allow you to convert from a term policy to a permanent one. This is a great feature that provides future flexibility but because some policies have limitations, you should familiarize yourself with the conversion rules of any policy you're considering.

When can I convert?
The conversion privilege might have a time limitation on it, to age 70, for example. Some policies allow conversion during the entire term of the policy.

What can I convert to?
The most generous term policies allow you to convert to any type of permanent policy available, such as whole life, universal life, or variable universal life. Some term policies may force you to convert specifically to just one type, and some companies may not offer all types, which can also limit your options down the road.

5. Where do I buy a policy?
Chances are you'll probably hit the major internet search engines first when looking for information about buying a policy. A number of online distributors can provide you with a term insurance policy. These distributors typically focus on finding the lowest cost policy, given the personal information you provide.
For a more personalized experience, you might consider finding a professional. An insurance agent/broker will help you understand all the different variations of insurance - both term and permanent - and should be able to answer any questions you might have. You can find one by visiting any of the major company websites or combing through your local phone books, but probably the best way to find a representative is to ask around for a referral from a friend or business associate.
Finally, for group coverage, you can check with your employer. If you're self-employed, you may have access to a group plan through a professional association, or you may even be able to put a group plan in place for yourself and your employees.

After going through these questions, you will be able to decide for yourself if that million-dollar coverage ad is really what you need to provide for you and your family. If it's not, don't be afraid to pass it by - there are hundreds of policies waiting to provide you with the peace of mind you're looking for!

Having An Understanding Of Life Insurance Premiums

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Once you've made a decision to buy permanent insurance, you then need to figure out what kind of policy to purchase and what amount of premium to pay. Unlike term life insurance, which has a set premium based on the amount and duration of coverage, the premium for a permanent policy depends on how the coverage is designed and what assumptions are used to prepare the hypothetical illustration. Premiums also vary depending on the kind of permanent coverage; for example, whole life has less flexibility than universal life. Additionally, the premium can change over the time you own the coverage.
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How Is Premium Calculated?

The premium for a life insurance policy is calculated using illustration software provided by the insurance company. The premium amount is determined by a number of variables including your age, sex, health rating, assumed rate of return, payment mode, additional riders, and whether the death benefit is level or increasing. How long the policy is designed to last, as well as the assumed non-guaranteed rate of return, can have a significant effect on the premium. Some policies are calculated to last to expected mortality or age 90, while others may be modeled to last until age 121.

Premiums

When you receive a hypothetical illustration all of the following premiums, along with some explanations, will be included. You will have to read through the illustration to locate them, since the ledgers in the illustration will be based on the planned premium.

The Planned or Target premium is the amount modeled by the software and is based on the variables the insurance broker enters into the program, including an assumed rate of return. The assumed rate of return is important, since a higher non-guaranteed return results in a lower premium and vice versa.
The No Lapse Guarantee premium is the amount that must be paid to ensure that the policy will stay in force for a set number of years, regardless of actual policy performance. During the no lapse period, the insurer guarantees the coverage will continue, even if the cash value drops to zero. However, once the guarantee period ends, the policy could lapse unless a significantly higher premium is paid. The no lapse period can range from as few as 5 years even up to age 121. In exchange for the guarantee, contracts with longer guarantee periods tend to build significantly less cash value than does the same contract using the target or other non-guaranteed premium.
The Guideline Premium and the Cash Value Accumulation tests were devised to provide an IRS-approved way to determine the tax treatment of a life insurance policy. The guideline premium test requires a policy to have at least a minimum amount of at-risk death benefit (insurance that exceeds the cash value). The corridor amount is greater when the policy holder is young and decreases as a percentage of the total death benefit as one ages, eventually dropping to zero by age 95. If the premium exceeds these guidelines, then the policy could be taxed as an investment rather than as insurance.
The Modified Endowment premium is the amount that makes an insurance policy a Modified Endowment Contract (MEC). Under the Technical and Miscellaneous Revenue Act of 1988, distributions from a policy determined to be a MEC, such as loans or cash surrenders, are potentially taxable and could be subject to an IRS 10% penalty tax. However, the death benefit remains income-tax free. A policy can become a MEC when the combined premiums paid during the first 7 years that the policy is in force exceeds the 7 pay test premium. The illustration software automatically calculates the 7 pay premium amount. The IRS has established these measures to help curb abuses where insurers sold policies with a nominal amount of insurance that were really designed to build a large amount of tax-free cash value. The 7 pay amount varies by age and kind of policy.
The Minimum premium is the amount that must be paid to put the policy in force. This amount is usually not sufficient to keep the coverage in force for life, unless the insured is very young. This premium may be used, for example, when a 1035 exchange from another policy is pending or the policy is owned in a trust and when issued gifts will be made to provide additional funding.

Which Premium Amount Should You Pay?

The amount of premium you should pay really depends on how you design the coverage.
Whole life policies build a large cash value and tend to have higher set premium. Current assumption universal life policies have flexible premiums and assume fixed interest rates of return. Variable universal life policies, in contrast, offer the greatest risk reward potential, allowing the cash value to be invested in mutual fund sub-accounts.
To build the most cash value in a policy, you want to pay the maximum allowed premium and select a level death benefit that helps minimize the amount of insurance you are buying. If you want leverage (death benefit), universal and variable policies illustrated with a high rate of return, increasing death benefit and low premium provide the highest payout at death. A policy with a level death benefit, for example $500,000, includes your cash value as part of the death benefit. A policy with an increasing death benefits would pay $500,000, plus any cash value.
Whole life and no-lapse universal policies offer guaranteed death benefits. However, the policies will have a higher premium offering less leverage.

In other words, when designing permanent life insurance coverage, the right premium really comes down to why you are buying the coverage. Is it for protection, cash value accumulation or both?

Reasons To Own Life Insurance In Irrevocable Trust

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People buy life insurance for many reasons, and it offers some unique features that are not found in many other financial products. For example, leverage, especially in the early years of a policy, where you pay a small premium to lock in a large death benefit or the ability to time liquidity to an event (the death benefit).

Irrevocable Life Insurance Trust (ILIT)

An irrevocable trust can't be modified or terminated without the permission of the beneficiary. The grantor, having transferred assets into the trust, effectively removes all of his rights of ownership to the assets and the trust. This is the opposite of a revocable trust, which allows the grantor to modify the trust.
An Irrevocable Life Insurance Trust (ILIT) is created to own and control a term or permanent life insurance policy or policies while the insured is alive, as well as to manage and distribute the proceeds that are paid out upon the insured’s death. An ILIT can own both individual and second to die life insurance policies. Second to die policies insure two lives and pay a death benefit only upon the second death.
An ILIT has several parties -- the grantor, trustees and beneficiaries. The grantor typically creates and funds the ILIT. Gifts or transfers made to the ILIT are permanent, and the grantor is giving up control to the trustee. The trustee manages the ILIT, and the beneficiaries receive distributions.
It is important for the grantor to avoid any incident ownership in the life insurance policy, and any premium paid should come from a checking account owned by the ILIT. If the grantor transfers an existing life insurance policy to the ILIT, there is a 3-year look back period in which the death benefit could be included in the grantor's estate. There can also be gifting problems if the policy being transferred has a large accumulated cash value. If there is a question about the grantor being able to obtain coverage and you want to verify insurability before paying the expense of having a trust drafted, have the grantor apply for coverage and list the owner as a trust to be named. Once the insurance company has made an offer for a new application, properly listing the trust as owner can be submitted, replacing the initial application. The policy will then be issued to the trust.

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Once established and funded, an ILIT can serve many purposes including the following:

1) Minimizing Federal and State Estate Taxes

If you are the owner and insured, then the death benefit of a life insurance policy will be included in your gross estate. However, when life insurance is owned by an ILIT, the proceeds from the death benefit are not part of the insured's gross estate and thus not subject to state and federal estate taxation. If properly drafted the ILIT can, however, provide liquidity to help pay estate taxes, as well as other debts and expenses, by purchasing assets from the grantor’s estate or through a loan. Also, lifetime gifts can help reduce your taxable estate by transferring assets into the ILIT.

2) Avoid Gift Taxes

A properly drafted ILIT avoids gift tax consequences since contributions by the grantor are considered gifts to the beneficiaries. To avoid gift taxes it is crucial that the trustee, using a Crummey letter, notify the beneficiaries of the trust of their right to withdraw a share of the contributions for a 30-day period. After 30 days, the trustee can then use the contributions to pay the insurance policy premium. The Crummey letter qualifies the transfer for the annual gift tax exclusion by making the gift a present rather than future interest, thus avoiding the need in most cases to file a gift tax return.
In 2015 you can give $14,000 a year to as many people as you like. The $14,000 encompasses all gifts. A married couple can give an individual a combined $28,000 annually, gift-tax free. There is no limit to the total number of gifts a couple may make. You can also give someone more than $14,000 a year with the excess being applied toward your lifetime estate tax exemption of $5,430,000.

3) Government Benefits

Having the proceeds from a life insurance policy owned by an ILIT can help protect the benefits of a trust beneficiary who is receiving government aid, such as Social Security disability income or Medicaid. The Trustee can carefully control how distributions from the trust are used so as not to interfere with the beneficiary's eligibility to receive government benefits.

4) Asset Protection

Each state has different rules and limits regarding how much cash value or death benefit is protected from creditors. Any coverage above these limits held in an ILIT is generally protected from the creditors of the grantor and/or beneficiary. The creditors may however attach any distributions made from the ILIT.

5) Distributions

The trustee of an ILIT can have discretionary powers to make distributions and control when beneficiaries receive the proceeds of your policy. The insurance proceeds can be paid out immediately to one or all of your beneficiaries or you can specify how and when beneficiaries receive distributions. The trustee can also have discretion to provide distributions when beneficiaries attain certain milestones, such as graduating from college, buying a first home or having a child. This can be useful in second marriages to ensure how assets are distributed or if the grantor of the trust has children who are minors or need financial protection.

6) Legacy Planning

The generation-skipping transfer tax (GST) imposes a tax of 40% on both outright gifts and transfers in trust to or for the benefit of unrelated persons who are more than 37.5 years younger than the donor, or to related persons more than one generation younger than the donor. A common example is gifting to grandchildren instead of children.
An ILIT helps leverage the grantor of the trust’s generation-skipping transfer (GST) tax exemption by using gifts to the trust to buy and fund a life insurance policy. Since the proceeds from the death benefit are excluded from the grantor’s estate, multiple generations of family -- children, grandchildren and great grandchildren -- may benefit from the trust assets free of estate and GST tax.

7) Taxes

Irrevocable trusts have a separate tax identification number and a very aggressive income tax schedule. However, the cash value accumulating in a life insurance policy is free from taxation as is the death benefit so there are no taxes issues with having a policy owned in an ILIT. If properly designed, an ILIT can allow the trustee access to the accumulated cash value, by taking loans and/or distributions at cost basis, even while the insured is alive. However, once a death benefit has been paid, if the proceeds remain in the trust, any investment income earned and not distributed to the beneficiaries could be taxed.
 
In conclusion, ILITs are a powerful tool that should be considered in many wealth management plans to help ensure that your policy is used in the best possible way to benefit your family and even with the federal estate and gift tax exemption at $5.43 million, it is still possible to owe state estate taxes. Many states begin taxing your estate at $1 million or less.

Why You Should Buy Disability Rider On Life Insurance

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When buying a life insurance policy does it make sense to also pay for a rider that waives the premium payment if you become disabled? According to the American Council of Life Insurers the majority of individual life insurance policies in force include a rider that waives the premium upon total disability. However, most people really don’t understand how the riders work or if it is a cost effective benefit.
A ''rider'' is an add-on provision to a basic insurance policy that provides additional benefits to the policyholder at an additional cost. Standard policies usually leave little room for modification or customization beyond choosing deductibles and coverage amounts. Riders help policyholders create insurance products that can meet their specific needs.

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 What is a Waiver of Premium?

When you buy a life insurance policy, for an additional fee, a rider can be added to the contract that waives the premium payment if the insured becomes totally disabled. In other words, the insurer pays the planned premium. For a term policy, this would simply be the cost of insurance but in a permanent policy the insurer would also be making additions that help build the cash value.
The cost of the rider depends on several factors including the amount of insurance and kind of policy as well as the insured’s age, occupation and health rating. With term policies the cost of the rider could be an additional 10-15% of the planned premium. The cost in a permanent policy varies depending on the design and kind of coverage (whole life, universal life, etc.). The rider commonly adds an additional 3-6% to the premium.

How Does the Rider Work?

The waiver of premium rider is underwritten separately when applying for life insurance and is usually issued to individuals between the ages of 18 and 60. However, the rider is not automatically issued and for individuals in higher risk occupations, such as a fireman or police, an insurer may offer the life insurance coverage with a favorable rating, but exclude the rider. Or the cost of the rider could be more expensive based on the insured’s occupation or risky hobby, such as rock climbing.
Once eligible, the rider pays a benefit to age 65 or for the planned premium period. The planned premium period is how the policy was issued based on the hypothetical illustration. For example, the benefit could stop on a whole life policy that was scheduled to be paid up at age 55 or after 20 years on a level term policy. The limited waiver period can be a problem with a permanent policy that was illustrated with premium payments that extend beyond age 65 because the policy may be underfunded and eventually lapse.
To qualify for benefits, most riders have an elimination period of four to six months during which the insured must be totally disabled. The premium may also have to be paid during the elimination period, depending on the company later reimbursed. If the insured has a recurring disability, due to the same problem, once the initial elimination period has been met, subsequent claims will not require a new elimination period. However, if the claim is for a new ailment a new elimination period will be imposed.

What Qualifies as Disabled?

The definition of disability is included in the policy. For example, many insurers define total disability as the inability to perform the substantial and material duties of one’s regular occupation. In addition, the disability must be due to an accidental injury or a sickness and pre-existing conditions may be excluded. The loss of sight as well as the loss of use of a hand or foot may also qualify the insured for benefits.
Definitions are very important and do differ by insurer. For instance, a liberal definition may allow the insured who was not working, but instead a full time student, when the disability occurred to collect benefits. Also, many riders allow the insurer to review the insured’s status periodically as well as change the definition of disability after a stated period of time, three to five years, for example. The change is usually to a wider definition of disability, such as the inability to perform the substantial and material duties of any occupation for which the insured is reasonably suited based on education, training or experience. Thus, upon review, the insurer could argue that benefits should end well before age 65, depending on the insured’s ailment.

Should You Buy a Rider?

Purchasing a rider to waive the premium can be an expensive way to get a limited amount of disability income coverage. If you have group long-term disability coverage and/or are eligible to purchase an individual policy you should weigh the cost and benefit of the rider. If you have limited disability coverage or coverage is unavailable due to a health issue or could be very costly based on your occupation, then purchasing a rider that waives the premium could make sense.

Conclusion

Before automatically buying a rider you need to read the fine print and understand the how the rider works and what kind of benefit you could receive. Paying the added cost for the rider can make sense if you need the life insurance to stay in force and would have difficulties making the premium payments if you were out of work.

Disability Insurance: A Brief Introduction

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Disability Insurance also called disability income insurance, protects your income if you become unable to work for several months or longer due to illness or injury. The income provided by a DII policy can help you maintain your standard of living and pay your medical bills while you recover – or pay them until the policy terminates, which may be at age 65 or when you die, if you don’t recover. It can also protect anyone who has cosigned on a loan of yours but who can’t really afford to make the loan payments on your behalf, such as a parent who cosigned for your private student loans, which may not offer forbearance, deferral or forgiveness if you become disabled.
We all ask questions such as: Why do I need a disability income insurance? Doesn’t the federal government pay benefits if I become disabled?
Yes – the Social Security Administration’s disability insurance program, also called SSDI, does pays benefits. Individuals must be eligible from their FICA payroll tax contributions, and the SSA has strict definitions of disability and low monthly benefit payments. While SSDI is certainly better than nothing, since not everyone will qualify for it or be able to maintain their usual standard of living off its benefits, private disability insurance is an appealing alternative or complement. If you collect benefits from a private disability insurance policy, you can still collect Social Security disability benefits!

Download Flash Share (Gionee Xender) App APK for Blackberry, Windows & Android Devices

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Flashshare or Flash Share is a mobile phone application for Android operating system. It is a flash transfer app installed for free on most Android devices e.g Lenovo, Samsung, iTel, Infinix, Gionee, TECNO phones etc. 

SGIO: Car & Contents Insurance App - Personalise Information Plus Get Policy Reminder Alert

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SGIO Insurance app is available on Android Store and iTunes shop. Decide to download this amazing Car insurance and content insurance app which has a 2 secure, fast and easy login access options. You could decide to login via fingerprint or through a 4 digit PIN. 

Term Life Insurance App - Download & Use Term Life Insurance Quoting App To get Lowest Term Life Insurance Products

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Term Life Insurance Quotes App is an an insurance app that instantly gives you the chance of getting the lowest cost for term life insurance products. Download and use Term Life Insurance App for maximum benefit.

Generali Insurance App - Get Claims For MTPL or Casco Insurance

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Download Generali Insurance App and get  to register your household or vehicle claim for MTPL or Casco Insurance in a fast and convenient manner. The Generali Insurance App is not limited to Generali Insurance customers but others who are insured in any other insurance companies which have in one way or the other been affected by customers of Generali Insurance Company.
These people can register claim to MTPL insurance by following a simple step to easily register and get claims in REAL TIME.

Book: Insurance Tips - Get Free Insurance Tips With Insurance Tips App

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Insurance Tips App is an Android app available for free download, you want to get real in Insurance? Download Insurance Tips app and get free but useful tips. This insurance app provides you with useful insurance free tips to remember whenever you wish to start or renew your insurance policy. It could be motor insurance policy, cheap car insurance,  insurance car, motorcycle insurance, travel insurance, health insurance, pet insurance or general insurance policy.

How To Purchase Health Insurance

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If you’ve always been covered under your parents’ plan, a spouse’s plan or through your employer, and you are shopping for Health Insurance, then its going to be difficult to know where to start. Questions running through your mind will be: How do I get good coverage at an affordable price? What pitfalls do I need to look out for? It’s a complicated subject, but we’ll give you a helping hand to get you started. This article furnishes you with the steps you should take to shop for health
 insurance if you’re in the market for an individual or family plan and if you’re under age 65.

How to Purchase A Health Insurance

These steps can help guide you to the best coverage for you (and your family, if you are looking for them, too) at a price you can bear.



1. Check out the insurance plans your existing providers accept.
Do you already have a primary care physician or specialists whom you like and want to retain? If so, start your search for health insurance by calling those offices and asking them which plans they prefer, which other plans they accept and if there is any intention of changing what insurance they accept in the near future. Calling your providers directly is not only easier than contacting insurance companies to ask if your providers are in network; it also means getting the most current information and the scoop on any upcoming changes. You don’t want to choose a plan from a particular insurance company because your doctor appears to be in the network, only to learn that the insurer’s list of in-network providers is outdated and incorrect – or your doctor is leaving the network next year.
It’s very possible that not all of your current providers accept the same insurance. If that is the case, you’ll have to make some tough decisions about which providers you want to keep seeing at in-network rates, which you might be willing to replace with different providers in your new insurance network and which ones you can afford to pay for at out-of-network rates. If you find yourself in this situation, ask your current providers about their cash and out-of-network rates to see what costs you might face if you have to choose an insurer that only has some of your providers in its network. You’ll also want to make sure any prescription drugs you take on a regular basis are covered by the plans you’re considering, especially if the medications are expensive or don’t have generic substitutes.

How To Purchase A Health Insurance



2. Check out your options on the exchange.
If you’re not getting health insurance through an employer, there are two markets from which you can purchase it: the government market and the private market. You should consider both to see where you’ll get the best coverage for your budget.
 
To see what your options are on the exchange, go to HealthCare.gov and enter your zip code. From there, you can click to be taken to the official website of your state’s health insurance exchange, if your state has one (click here to find out), or to the federally facilitated marketplace at HealthCare.gov, if your state doesn’t have its own exchange. You’ll need the information listed in this checklist to apply for an exchange-based plan. One of the advantages of choosing a plan through the exchange is, if your household income is low enough, you may qualify to receive a subsidy to help pay your insurance premiums.


Normally, you can only enroll in an exchange plan during open enrollment. However, you can use the exchange outside of the open enrollment period if you have a qualifying life event, such as: You get married or have a child; you lose your existing coverage because of a layoff, divorce or other qualifying reason; or you receive benefits from Medicaid or the Children’s Health Insurance Program.
If you need to buy insurance in, say, June, and you don’t meet one of the special criteria, you’ll have to go to the private health insurance market and purchase a short-term plan. This plan won’t count as the required insurance you need to avoid tax penalties, but it will protect you against high healthcare costs until the next open enrollment period, since private insurance uses the same open enrollment period as marketplace insurance.


3. Compare your choices in the private market.
Unlike in the past, insurers offering Affordable Care Act-compliant plans can’t charge you higher premiums or refuse to cover you if you have a pre-existing condition so don’t assume that an off-marketplace plan will provide less coverage or cost more. To see what your options are, you can go directly to health insurance company websites or use comparison shopping sites. You will typically need to provide information such as your gender, date of birth, smoker status, household income, household size and zip code. If you have a spouse or children, you’ll likely have to provide their information as well. The sites will then show you a list of plan choices and some of the most important details about each plan, such as the monthly premium cost, primary care co-pay, deductible, out-of-pocket maximum and covered prescription drugs. These sites may show you both marketplace and off-marketplace plans; keep in mind that you MUST buy a marketplace plan through the marketplace to be eligible for a subsidy.



4. Consider using an insurance broker.
If you didn’t find a clearly good option shopping on your own in the public and private health insurance markets, if you’re so overwrought you don’t even want to try or if you just don’t have a lot of time, consider getting expert help. Using a health insurance broker won’t cost you a penny, and the broker will do all the hard work of finding the best plan for your situation. Unlike a captive insurance agent, a broker is independent, meaning he or she can offer you plans from many different companies. An insurance broker gets paid by commission from the insurance company whose plan you buy, and the plan will not cost you any more if you buy it through a broker than if you buy it on your own.


Don’t confuse a licensed agent or broker with an exchange navigator; the latter cannot recommend a plan based on your needs, has not gone through a criminal background check and may have less expertise. That being said, a navigator can still be informative about your options on the ACA exchange, and you might feel that one is more impartial since he or she doesn’t receive any commission based on which plan you choose.


Conclusion

You need to have health insurance coverage to avoid tax penalties, which for 2015 was 2% of your annual household income above the tax return filing threshold, with a maximum of the national average cost of bronze plan premiums, or $325 per adult and $162.50 per child under 18 – whichever is higher. More important, you want to have coverage so you can afford to visit a doctor when the need arises.
Having insurance and seeing a doctor regularly will help you prevent illness and catch and treat health concerns early, when they’re easier to deal with physically, emotionally and financially. Don’t let a lack of health insurance lead you to a health crisis or medical bankruptcy. Also, make sure to check your coverage options annually at open enrollment time to see if a less expensive or better value plan is available.

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