Life Insurance

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance.

How much insurance a person needs would vary, depending on lifestyle, financial needs and sources of income, debts, and the number of dependants? An insurance adviser or agent would recommend that you take insurance that amounts to five to ten times your annual income.

As an important part of your financial plan insurance provides peace of mind for any uncertainties in life.

1.   Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.

2.   It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.

3.   Life insurance can have a savings or pension component that provides for you during retirement.

4.   Some policies have riders like coverage of critical illness or term insurance for the children or spouse.

5.   Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.

6.   In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.

7.   Life insurance can be planned such that it will cover even your funeral expenses.

8.   Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.

9.   Insurance protects your business from financial loss or any liabilities in case a business partner dies.

10. It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.

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Auto Insurance Quote

Buying auto insurance today requires as much dexterity as buying the automobile itself. It is important to know the factors that an auto insurance company considers when offering quotes.

For a variety of reasons, including an increase in the speed and cost of auto wrecks, auto insurance soon became an important purchase for responsible individuals.  Not long after, the federal government mandated that auto insurance be carried, at least minimally, by all car owners. The increase in the need for auto insurance over the last 10 years has led to increases in the complexity of insurance, while at the same time, amplifying the need to be more cost conscious in auto insurance purchases.

1. Portray yourself as a ‘safe’ candidate: Insurance companies are interested in managing risk.  Consequently they offer drivers who are less likely to get into wrecks or at a minimum into wrecks of less severity, a lower insurance quote.

-Maintain a clean driving record, free of traffic violations or accident claims.

-Install anti-theft devices in your vehicle.

-Attend a Drivers Safety Training program.

-Buy a ‘safe’ vehicle. The National Highway Traffic Safety Administration (NHTSA) and The Insurance Institute for Highway Safety together collect information on safety related aspects of different vehicles. Buy an automobile that is officially designated as ‘safe’.

-Park your vehicle in a garage.

2. Show your Credit worthiness: As a risk management entity, insurance companies are also worried about getting paid on time.  If you can show yourself to be credit worthy, there is less risk of you not making your payments on time, thus warranting a lower rate.

-Maintain a good credit score and clear up any errors on your credit.

-Cut down on the total number of outstanding credit cards to 2 or 3.

3. Practice Financial Wisdom: The way in which you structure and pay for your policy can lower the risk that an insurance company faces with respect to you as a customer.  By taking steps to lower their risk, you receive a lower insurance quote and policy.

-Opt for automatic payment deductions from your bank account or your credit card to avoid getting charged for mail payments.

-Increase your deductibles on comprehensive and collision policies to reduce on the rates.

-Get loyalty discounts by buying your home and auto insurance from the same company.

4. Assess your Insurance Needs accurately: This is obvious, the more coverage you get the more it will cost you.  Add-ons are killers in the insurance business, strip your policy down to just the minimum of what you need.

-If your vehicle is not used much or you have an old car with little market value, opt for minimum liability alone.

-After fulfilling the legal mandate on auto insurance, insure according to your needs alone.

-Give up smoking; it can help you get better quotes.

-Change your occupation if you can help. A delivery boy carries a higher risk than a storekeeper.

Car Insurance

Easy Routes to Cheaper Car Insurance

1) Shop around and buy online: Figures show that many people simply renew their current policies without shopping around.

2) Policy type: do you really need a comprehensive policy with all the extras? Going for a third party fire & theft policy can reduce your premiums hugely, and is definitely worth considering if your car isn’t an expensive model.

3) No claims discounts: Nearly all policies feature a discount that increases for every year you don’t make a claim. The higher the discount available, the more you could save. Also look at insurers offering a ‘no claims bonus for life’ feature, where your current discount level can be fixed forever, even if you have to make a claim somewhere down the line.

4) Excess: The excess on a policy is the amount of a claim you have to pay before the insurer pays the rest. Choosing to have a higher than standard excess level will usually mean lower premiums.

5) Security: Fitting your vehicle with an alarm, immobilizer, or other security devices can lead to premium reductions.

6) Pay annually: Many insurers charge you interest for the privilege of paying in monthly installments. Pay annually if you can afford it to avoid this, or look for one of the companies who don’t charge extra for monthly payment.

7) Mileage: The more mileage you run up every year, the more your insurance will cost.