Sabtu, 17 Januari 2009

Life Insurance

Life insurance has many uses, but its main use is to provide income for a dependent or a family as a result of the premature death of the primary wage earner Since most life insurance is sold to protect against the risk of premature death, the fear that survivors would suffer a loss of income and have debts to settle is the most important concern for purchasers of insurance. Over time, it is possible that needs may change. If a person made an insurance arrangement years ago, he or she should reevaluate the policy periodically. Some triggers for reevaluation are:

  • Marriage
  • Birth of a child
  • Purchasing a house
  • Planning for children's education
  • Children leaving home
  • Beginning a business
  • Planning for retirement

If the family is left without sufficient money to meet basic living needs or to prepare for future goals, they will have a financial crisis to cope with during a time of grief. Families with young children have a clear need for life insurance. If both spouses work, the loss of one income may cause the family immediate economic hardship and make it more difficult to realize future goals such as paying for the children's education.

A single person or a married person with no children may think that he or she does not need life insurance because no children are dependent on a parent's income. However, the individual needs to consider a partner or surviving family members' financial needs to cover the costs associated with his or her death. Life insurance basically comes in two forms.

  • One type pays only a death benefit-a specified sum of money-to the person or persons designated if death occurs within a specified period or "term." This is an immediate benefit on the occasion of death and for a certain amount of years after death.
  • The other, more permanent type comes with an additional feature that builds tax-deferred savings called "cash value." The cash value is the reason many individuals purchase life insurance policies because this is a benefit that the policyholder can enjoy and use during his or her lifetime. The cash value can help fund college, the purchase of a home, or a retirement.

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About Individual Health Insurance

Individual health care insurance provides coverage for only one individual, or family. In general, individual plans are more expensive than group insurance. You can obtain individual plans directly from a company who offers them. The company with whom you apply will evaluate you from a health standpoint, in terms of how much risk you present to them. Usually, they'll provide a questionnaire for you to fill out, asking various questions about your current and past health history. They will determine your risk accordingly, from which a premium will be generated.

Things to look for: Most individual plans fall under managed health care plans. Under this, you can opt for an HMO, PPO, or POS plan.

Guaranteed renewable: Your insurer cannot cancel your coverage if you become sick. If you continue to pay your insurance premium, coverage continues.

If available, group insurance is generally a better option, since it is usually more comprehensive and less expensive than individual insurance. However, individual coverage is ultimately better than being uninsured in the event of illness or injury. Although you may think you can do without health insurance, you are taking a major risk if you choose not to get coverage. An unexpected illness or serious injury can put you and your family under financial stress.

In a group insurance situation, the provisions of the policy are negotiated between the insurer and master policy owner (usually an employer or association). With individual insurance, you are directly in control of your policy. You can negotiate to have certain provisions included or excluded, and you can often choose your deductible amount and co-payment percentage. Keep in mind, however, that these things will have an effect on your premiums.

by Mark J.

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A Guide To Online Health Insurance Quotes

It is a fact that people in the 25-34 age group often don't have health insurance. This is not because they cant afford it, but is because they think that since they are young and healthy, they don't need insurance. This is most definitely not true. One catastrophic illness or accident could wipe out their financial stability in one moment. Having health insurance protects you from things that would otherwise devastate you financially and make it difficult or impossible to recover from.

Of course, the online health insurance business is a booming one. Getting an online health insurance quote is very easy and requires no obligation or someone coming to your home or office to bother you. If you don't have insurance or you want to supplement your current insurance, going online is a good choice. Online health insurance companies offer a variety of plans for diverse coverage needs, from individuals, to families, to small businesses. You can shop around for the best rate and compare different companies and health insurance plans.

It is a good idea to do a little bit of research on any online health insurance company you re considering. You will want to find out how long they have been in business, how stable their business is, and if they are licensed in your state, which they need to be for you to use their services. The best part about online health insurance is that they must report premiums paid to your state, and this amount is regulated by your state, so you will know that they cant overcharge you and you can rest assured that someone is making sure they aren't going to rip you off.

You also need to decide what kind of health care coverage you need. Will you need a prescription card to give you discounts on your prescriptions? Most people do. Will your insurance provide coverage if you are traveling? How about emergency and ambulance coverage? Will you need to have a referral to see a specialist, and can you go to a doctor that is outside of your provider network? It is extremely important to find out about the details of any health insurance plan before you buy.

One thing that is very hot with online insurance health and also with other insurance programs are HSA's. They are health Savings Accounts, and the money you lace in them ca be used for immediate medical expenses, saved for future medical expenses, or invested for medical expenses after retirement. This is just one of many health insurance plan aspects to consider when choosing an online health insurance company. Once you have made your choice based on your needs, sit back and let the online health insurance quotes roll in until you find the one that is best for you.

By Bob Hett. Bob Hett offers great tips and advice regarding all aspects of the health insurance industry. Get the information you are seeking now by visiting

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Jumat, 16 Januari 2009

Why Buy Life Insurance?

Life insurance is considered to be the cornerstone of solid financial planning. Investments and savings plans are important to long-term financial success, but death is a lot less predictable and always inevitable. So life insurance is necessary to solving the financial dilemmas you leave behind. Life insurance can help solve some of the following.

  1. To replace income for your dependents. People rely on you and your income. Once you're gone, they will still be relying on you but there will no longer be any income. This is the most important reason to have life insurance.
  2. To pay final expenses. If you pass away and leave any outstanding debts in your wake, these debts will become a burden on your family. They can use the money they get from your life insurance to pay off these debts.
  3. To create an inheritance for your heirs. Even if you have no other assets at the time of your death, you can name your heirs as beneficiaries on your life insurance so you can at least leave them something.
  4. To create a source of savings. When you purchase a cash value life insurance plan, you are going to be forced to pay a regular premium towards the plan. In turn, creating a savings plan for your beneficiaries that matures upon your death.
  5. To make a significant charitable contribution. If you want to really leave a lasting impression once you're gone, you can name a charity as a beneficiary and they will receive a portion or all of your life insurance compensation.

Life insurance is integral if you do not want to worry about your family if something happens to you. As you can see, there are many reasons why you should be paying a small regular premium towards a life insurance plan.

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A Guide to Finding the Right Health Insurance Company

There are many people in America today that are in dire need of health insurance for either themselves or for their entire families. This can be for many reasons. Sometimes their employers do not provide health insurance. Other times, the people are self employed. For either of these situations, you must obtain health insurance on your own. It is often hard for people in these situations to determine which health insurance company to go with. If you happen to be one of these people, then please read on for a guide to finding the right health insurance company.

There are various ways to look for a health insurance company. The easiest way is to go online and type "health insurance company" into the search engine. Then press enter. A whole list of health insurance companies and their websites should pop up. Try to select a website that lets you compare health insurance company to health insurance company. You may also call individual health insurance companies, but this tends to be more time consuming. This can be done by finding their numbers in your local yellow pages.

When choosing a health insurance company, first decide on if you want your coverage to be for PPO or for HMO. HMO stands for health maintenance organization. With an HMO, you can only see a limited list of doctors or doctors that are contracted with the HMO health insurance company. PPO stands for preferred provider organization. A PPO plan means you can select to see certain doctors on a list, as well as doctors that are not in the network, but they still accept the type of health insurance.

Next, you need to decide how much coverage you need because this affects the price you with pay monthly to the health insurance company. Some coverage is very limited and does not include emergency room visits, lab work, x-rays, etc. Also, some coverages have varying deductibles for emergency room visits. Deductibles can vary from $100 to $2500. The cheaper the deductible, the higher your monthly payments are for the health insurance. Also, some coverages require co pays for doctor visits. The cheaper the co pay, the higher your monthly payment. Lastly, this is the same for prescription drug coverage. You must keep in mind how much you can afford to pay monthly in conjunction with what type of coverage you need.

Hopefully this guide to finding the right health insurance company was helpful to you. There are a lot of important aspects you must consider when selecting a health insurance company. Your health and perhaps your familys health depend on you making the right decision. Utilize this information carefully to help you make a wise decision.

by Bob Hett

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Minggu, 11 Januari 2009

Insurance for Newbies

Insurance is the coverage offered by an insurance company to an individual or an organization against a specified loss in return for the earlier premiums received from the policy holder. A premium is a periodic amount of money charged by the insurance company to provide active coverage.

The premium is usually collected on a monthly or half-yearly basis. The insurance company will normally terminate the policy, if the policy holder fails to make the scheduled payment. To renew this lapsed policy, the policy holder will have either have to pay the balance of the insurance premium or get reinstated. The chief advantage of an insurance policy is the feeling of financial security that it offers to the policy holder.

The different types of insurance polices broadly defined include; Health Insurance, Life Insurance, Auto Insurance, Homeowners Insurance and Appliance Protection.

The premium for the same service can vary depending upon the service provider and a host of other factors. The premium amount is primarily based on statistics. Individual habits and history can also play a role in influencing the insurance companys decision on the cost of the premium. For instance, a younger driver with a sports car might have to pay a higher insurance premium than a middle-aged driver who drives a regular sedan, due to the higher probability of risks.

Because of the variability in rates and the variability in the formulas that individual companies use to determine rates, is very essential to get several insurance quotes before purchasing an insurance policy. Every insurance policy will have its own merits and demerits. However, the lowest premium quote price need not necessarily be the best insurance policy, since it may offer only a lower level of coverage. So, one will have to understand the different clauses and complexities in the policy. One will also have to do a check on the reputation of the insurance company, by considering factors such as percentage of rejected claims and timely reimbursement.

An insurance agent or broker would be aware of the different insurance schemes offered by various companies. The agent will also be of great assistance in calculating the insurance premium estimate based on the basic information obtained and help in determining the best insurance policy for you the first time insurance purchaser.

by Marcus Dubois

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