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Products, Insurance

Can I get life insurance? – The facts!

family covered by life insurance
family covered by life insurance

Hey listen? No-one wants anything but the very best for you, but of course we all know our time on this earth is limited. Even Barack knows he’ll have to leave office in time right? But if we have families then it makes sound financial sense to take out life insurance.

But there are times when for whatever reason we won’t be able to get cover. It may because we’re in poor health to begin in which case you just might not bother. As George W once said: “you’re either with us or against us”. So be aware some insurance companies do insure those not in the best of health. But how do companies determine what cover you may be afforded. Tell you what let’s look at it from their perspective?

This process of giving you the once over is the underwriting process! Every insurance company has a different way of doing this. Generally though the process comes out of the same concept. What are the risks in insuring you and how great are those risks? Well they will almost certainly look at your lifestyle, occupation and income. You can add to that:

    family life insurance
  • Dread it! – your age!
  • Gender
  • Marital Status
  • Height and Weight
  • Dangerous Hobbies or pastimes
  • The purpose of the Insurance
  • Yes – do you have a history of smoking
  • History of health in your family

What else will happen?

Like it or not your medical records will be passed over to the insurance company and you’ll undergo a medical. If you suffer from an illness or are disabled then they’ll ask for a doctor of your own choice to carry out an examination.

And If I’m not sure where I stand health wise?

There’s no need to worry as you can use the services of an impaired health specialist. They know all about the underwriting process and can help point you in the right direction in order to get the correct insurance. These experts can sometimes negotiate with the insurer to get you the best deal possible. They can frankly, present your case in the most enlightening way

So what happens next?

Insurance companies will look closely at all the information you provide and then give you a rating. This is based upon the risk you give them and the probability of having to make a payout within a certain timeframe. It’s really all about crunching the numbers but this all goes into the mix before they decide what premium you should pay based on this information. The truth is some companies can be quite aggressive in their approach and other companies will be a bit more relaxed.

Are there other things I can do to help?

Women talking to doctor

Yes there are and one of them is to talk to your own doctor. In actual fact you should really alert to the fact an insurance company will be asking to see your medical records. His or her opinion can have a great bearing on insurance especially if you already have health problems. Try and life a good lifestyle as this will almost certainly help you in the long run anyway apart from simply getting life insurance cover. Timing can also be a huge factor if you can manage things that way. What you should really do is carry out lots of research and shop around as much as possible. Life insurance is like any other product. Get value for money! And just a note to say if you do have health issues then re-insurance is available whereby another insurance company shares the cost of cover. There’s much information on this online and it can help alleviate your worries knowing there are companies out there who can help in this situation.

Remember, in the case of life insurance you are planning ahead and taking care of your family in the best way you can. If anything should happen to you then you know they’ll be looked after for the long term!

Products, Insurance

Hazard Insurance

house protected by a large red umbrella

Unless you have infinite funds at your disposal the chances are you’d be hit hard if you needed to finance the rebuilding of your home! And as we all know depending on what state you reside in, natural disasters do strike from time to time in the States. A Hazard insurance policy can safeguard you against such disasters including fires, tornado damage or flooding. But this priceless type of insurance can also become complicated if not explained properly

Explain More to Me

This type of insurance policy can cover all sorts of things from earthquakes to vandalism, wind damage to fire. In California you can even purchase a policy to cover only earthquakes. So you can check as to what specifics you can cover under Hazard Insurance. This policy can also go together with your homeowners insurance to give you complete all round cover if you so wish. In fact, taking both of these as one unit is certainly advisable. You need however to ensure the policies aren’t covering the same things. So carry out a thorough check before putting a signature to the contract.

What Else Do I Need to Know?

If a building or dam is vandalized in the building process these may not be covered under some insurance policies. Policies covering huge damage naturally will carry a higher premium. Comprehensive insurance policies will take under their wing physical damage and the resulting liabilities. You should remember Hazard Insurance only takes care of actual physical property damage!

How Do They Calculate it?

This depends on the age of the property, its appraisal value and any possible natural hazards. Your mortgage lender or insurance provider will explain this further.

How Does This Effect Purchasing a Mortgage?

 
Hazard Insurance concept, protecting home with sheild

The overall function of Hazard Insurance for lenders is to completely safeguard their investment. Almost all lenders will insist you get the very smallest level of Hazard insurance before you take out the mortgage itself.

It’s a fact most people take out homeowners insurance as well simply to get liability protection, though the former’s coverage could change to property insurance according to the terms included. Make sure you double check everything. Hazard Insurance will give you just enough cover to rebuild the property should the worst actually happen.

Can You Clarify Hazard and Homeowners Insurance

Just to be clear Hazard insurance safeguards you financially from both theft and damage. It’s usually bought anyway as part of your Homeowners Insurance Policy. But Homeowners Insurance has liability insurance built in used to pay things like legal costs or medical bills for someone injured on your property.

What About the Different Types Available

Well it’s true there are various types of Hazard Insurance to cover various levels of help needed in rebuilding or repairing. Guaranteed or extended replacement cost will finance a house rebuild even if it goes over the limit of your policy. A replacement –value policy gives you enough cash to be able to purchase a new item. Cash value policies pay what it originally cost you to purchase something.

How Much Coverage I will Need?

protecting home with hands - hazard insurance concept

The rule of thumb is the more expensive the house – the more insurance you’ll need. Liability insurance isn’t compromised by house size however. Most experts believe $330,000 worth of liability coverage should be more than enough to meet your needs.

Important Things to Note!

All of these things will take on varying degrees of importance according to where you live. IF you face a greater risk of things like earthquake tremors or serious flooding then you’ll have to take out separate policies to cover these. Your Homeowners Insurance won’t be enough to deal with this. Also remember if you have unusual and valuable possessions like pieces of art or other collectibles you’ll be advised to take out what they call ‘A floater’ to cover them. This is because Hazard Insurance limits the coverage on such valuables.

As with most things of this type you should endeavour to get the very best advice. It’s always best to follow the trends resulting from recent disasters or acts of God in other states. The best mortgage lenders and insurance providers will go out of their way to ensure you understand everything clearly.

Products, Insurance

Car Insurance

protecting a blue car with hands
protecting a blue car with hands

There are joyous things in life like a lovely summer’s day or eyeing the most beautiful scenery. Looking for car insurance isn’t one of them! And yet whether we view it as a chore or not affordable car insurance is a necessity. So we need to give it the time it deserves and this means shopping around for the best car insurance quotes we can find.

It’s important to note to an insurer you’re not a person, you’re a set of risks. An insurer bases its premium on a number of “risk factors,” including some things unrelated to driving a car, including your occupation, who you are and how you live. Automotive insurance can also be misleading so remember what seems to be the same product can have different prices, depending on the company. Most states in America require only a minimum of auto-insurance liability coverage, but you should look for more coverage than that.

In the UK the average car insurance policy costs around £3,100 for young males and £1,800 for young females, while motorists in all other age groups pay around £500 for their cover. It isn’t altogether cheap these days and yet a low price is certainly not a bargain if an insurer takes forever to service your claim. Research the insurer’s record for claims service, as well as its financial stability.

The level of excess can be a major factor in the final price you’ll pay depending on the required cover basically, the level of excess is the amount the driver is responsible for when they make a claim. For example, if the motorist’s excess stands at £100 and they make a claim which costs £150 to fix, the insurer will cover £50 of the cost and the insured driver will be responsible for the other £100.

young man driving a red car

In most cases the excess is usually higher for drivers under the age of 25, but this differs depending on insurers and in many cases drivers can choose their own level of excess as this will affect the price of cover. For example, if a driver chooses a very low level of excess, their car insurance is likely to be more expensive. Many young drivers choose a high level of excess to help bring down the price of their policy.

For each consecutive year a driver has car insurance without making a claim they will earn one year’s worth of what is termed no-claims discount (NCD). NCD is used to calculate the amount of discount an insurer will give for a good claims history. This can also have a big bearing on the car insurance quote.

After driving safely for a number of years a motorist may build up a substantial NCD. Some insurers allow drivers to protect their NCD with the payment of a small extra premium. Car Insurance providers can provide discounts to reward behaviour that reduces risk. But it’s true to say Americans waste money every a year because they forget. If your vehicle is not fitted with an approved immobiliser, compare car insurance quotes with and without one fitted. It may be cost-effective to have one installed. Also restrict the drivers on your car insurance policy. In particular, minimise the number of young drivers under twenty-five.

Once you’ve found what you feel is the best car insurance cover for you personally, then you can add what you think are important extras. Some will vary from one online car insurance provider to the next. You will however find things like breakdown cover, legal protection insurance or free windscreen replacement in the price of their policies. Always check the small print and make sure you are getting value for money. If for example there’s no breakdown cover included you may be able to purchase it as an add-on. Don’t be afraid to ask continual questions if buying vehicle insurance over the phone.

You should always bear in mind when deciding to go on holiday, a motorist may wish to drive their car to another country.

However, their policy may only cover them in the UK and sometimes, the European Union. Yet again always check the small print.

a very large umbrella protecting a car

Sadly it’s a fact of life finding car insurance for new drivers can sometimes be demoralising as it can be very expensive. In this case it’s even more important to contact a number of car insurance companies and make the time to thoroughly research your needs. If you have recently passed your driving test in the UK, investigate whether it would be cost-effective to complete the Pass Plus training programme to qualify for car insurance discounts. Pass Plus is an established training course aimed at new drivers. You can find more information on this at www.directgov.co.uk

You can help reduce the cost of car insurance by driving a more compact vehicle with a smaller engine. If your car was very cheap, it may be cost-effective to have third-party, fire and theft insurance instead of fully comprehensive cover. Compare car insurance quotes.

Of course if you can pay for your car insurance in one lump sum then this in turn will help save money. If paying instalments then make sure the monthly payments are right for you over what will probably be a ten month period in the Uk.

Following these golden rules will make the job of purchasing the right car insurance much more enjoyable. There’s a wealth of insurance providers out there all waiting for your business. Remember Insure right – drive for a lifetime!!