jacksonville mortgage refinancing: November 2012

Tuesday, November 27, 2012

The Way Insurance is Changing With the Times

Almost every state in US calls for the need of an authentic insurance coverage, while you intend to drive the vehicle, whether it is a car, or any SUV. The general aspects of Insurance Coverage include:

-Liability Cover against Bodily Injury. If a car driver knowingly or unknowingly hits any pedestrian, or any other person in any other vehicle, the injured person can sue the driver to recover medical and rehabilitation expenses and any damages thereof. The insurance coverage offers $15,000 to $30,000.One person injured paids upv to $15,000. Per accident is up to $30,000.

-Liability against Property damage. If damage to property is done in an accident, then, the driver is liable to pay the property owner certain amount as written in the Insurance coverage. Many states provide $5,000 worth of Insurance Coverage, whereas, some of the standard policies also dispense higher insurance coverage ,but is limited to $25,000.

-Coverage for Medical Reimbursement. Irrespective of who's caused the accident, or who was at fault, the medical benefits covered under the auto insurance policy offers facility to both the car driver, as well as injured to get their injuries treated. Generally, in many states, a car owner buys $5,000 of medical auto insurance coverage. However, in many of typical cases, a car owner can also purchase medical auto insurance coverage worth $ 10,000. No deductibles are charged on this insurance coverage.

Still there are many other types of auto insurance coverage, which though not required, are otherwise necessary. These include:

-Coverage against Collision Damage. This coverage entitles the car owner to repair any kind of damage caused in the accident. It is a no-fault coverage. Usually, the auto insurance provider will provide you with a $500 deductible, if not, you have specified the amount. Remember, Higher your deductibles, lower would be the premium amount.

-Coverage against Thefts and Other Hazards. This car insurance coverage would provide you safeguard against any kind of car theft, or hazards such as fire, flood, vandalism, or animal collision. The best thing of the coverage is that you decide your own deductible.

-Coverage against Uninsured/Under-insured Motorist. If a pedestrian is hit by a car driver who is not insured or the insurance amount is not sufficient enough to cover the damage costs, in such an event, the coverage proves very useful. Under the coverage, the injured person would also be entitled to reimburse medical bills, lost wages, besides, trauma.

Optional Car Insurance Coverage also includes:

-Extrinsic Medical Coverage -- This coverage provides $1 million insurance, and is utilized if the medical and rehabilitation expenses surpasses insurance policy.

-Loss in Income - This coverage entitles the insurer an amount equivalent to take-home pay, in case you are rendered unfit as the result of accident. This coverage is over and above disability insurance coverage will take over.

-Funeral Coverage -- Maximum limit of $2,500, in case car owner or any of family member expires as the result of car accident. The cost the coverage is about 50 cents
per $1500 worth of insurance.

-Coverage for Rental Car Replacement -- A minimum amount is allocated on daily basis, should your automobile is under repair as the result of accident.

-Coverage for towing and other labor costs -- The coverage costs at less than $5 a year.This for if you break down as a result of a flat tire(s), out of gas, or your car needs a jump start, or most anything that may occur.

The way insurance has changed

Auto insurance coverage is a significant aspect of your vehicle. It offers complete security to you, your family and your beloved vehicle. The insurance policies across country keep changing with times. Prior to 1980s, the common question which car buyers often asked to themselves was -- Is the car affordable for me? But things changed marvelously after 1980s, and the question has transformed into -- Can I afford the car, and on it, will I be able to afford auto insurance?

The auto insurance companies decide which car insurance policy is to be sent, and to whom. Remember! Every car insurance policy differs from the other and this difference is the result of thought process of auto insurance company.

As per the statistics collected and analyzed by auto insurance experts, on an average a household in US spends $7,500 over a 10-year period in auto insurance alone, and out of which, he or she claims approximately $500.00.One begins to wonder.

Different modifications and changes are making the headway in a car insurance market, and which can further affect you in any of the following three ways:

-The nature of sale of auto insurance is changing with times. Earlier, an insurance agent, working under an individual or a stand alone company or a conglomeration used to dispense the insurance policy. It was only during the early 1990s, that insurance companies started to dispense the policies directly to auto insurance holder. An insurance agent, on the other hand would charge 15 percent commission upright, and another 12 to 15 percent commission on renewal. The insurance commission was utilized by many other insurers in buying extra insurance coverage.

-Many states in US often change and regulate the sale and use of auto insurance deals. Every state appoints insurance regulators to keep a close watch on auto insurance coverage, based on two factors namely, rate setting and claims disbursement., the auto insurance companies have built up the reputation of not even dispense legitimate insurance claims, and this has resulted in wide amount of distress among the consumers. It is also felt and observed by insurance commissioners of different states that most common complaints concerning the auto insurance is claim handling.

-In generic sense, the very scope and role of auto insurance is undergoing massive changes. As people are accumulating wealth, they have more reasons to protect their virtues than any thing else.

How To Buy Life Insurance You'll Want To Keep

Not everything in life works out, including, sometimes, life insurance policies. If you stop paying premiums, your life insurance policy lapses - meaning coverage ends. If you stop paying for a term life insurance policy and exceed the insurer's grace period (possibly 30 days), your policy lapses. Make sure that's a consequence you intend: You're not insured after the grace period and can't "reactivate" the same life insurance policy.

If you stop paying on a whole life insurance policy, you may have more leeway. If you have accumulated cash value within the policy, your insurer will likely draw down the cash value account to cover premiums.

According to the 2007 "U.S. Individual Life Insurance Persistency Update" by LIMRA International and the Society of Actuaries (SOA), the overall annual lapse rate is 3.5 percent for whole life insurance, 7 percent for term life insurance, 4.6 percent for universal life insurance (UL) and 5.7 percent for variable universal life insurance (VUL).

Some folks pay for decades and decades on their life insurance policies and then throw in the towel and lapse their policies. What happened?

There are countless reasons someone might decide to lapse a life insurance policy. Most have to do with no longer having the discretionary income to continue paying premiums. John Dressner, Senior Vice President of LIFE Foundation, a nonprofit consumer-education organization, says, "Lapses are usually not for lack of desire for coverage but because of financial conflicts."

Life insurance experts have seen people lapse life insurance policies when a job loss, divorce, large medical expense or business loss means budgets must tighten. Or they buy a new television rather than pay their life insurance premiums. (True story.)

Other times, policyholders are replacing their current policy with a new one.

Sometimes the decision to lapse is more emotional: The benefits seem too far off in the future.

And sometimes policyholders lose contact with the agent who originally sold them the life insurance policy, so they feel nobody is available to address their questions about lapsing it.

Dressner points out that "someone bought it for a reason, because they wanted the protection." If you're thinking of lapsing a current life insurance policy, think carefully about whether you'd want coverage in the future, when buying a new policy may result in higher life insurance rate due to your age and possible health problems.

While there are no studies on the exact reasons people have lapsed their policies, we can learn from past life insurance buyers who jumped ship. Here are some tips for life insurance shopping based on lapses by other buyers.

Choose a guaranteed level premium for the entire period you need coverage.

If you're looking at term life insurance, consider buying a policy with guaranteed level premiums for the entire period you want to be insured, rather than face an increase after your guaranteed-premium period ends. The LIMRA/SOA study shows that lapse rates spike after the guaranteed-level premium periods. Perhaps policyholders were satisfied paying the level premiums but weren't willing to continue at a higher life insurance rate.

Consider this: Among buyers of 10-year level term, 40 percent dropped their policies when the guaranteed-premium period ended, and 30 percent of holders of 15-year level term stopped paying when the premiums went up.

Further, those who pay "substandard" rates (issued due to ill health) abandon their policies in larger numbers after initial rate-guarantee periods, according to LIMRA and SOA.

Buy enough life insurance coverage for your needs.

Are you buying a life insurance policy with a small face amount? Think carefully about whether that policy is sufficient coverage for you, because history shows that almost half of people with whole life insurance policies of $5,000 or under abandon them within the first year (over 45 percent do, according to the LIMRA/SOA study). People with larger whole life insurance policies are far more likely to hold on to them.

This trend extends to other policy types. For example, buyers of annual renewable term policies under $200,000 lapse them more in the first five years than buyers of larger policies. (After year five the gap closes.)

The difference in life insurance policy size is quite noticeable with UL, where about 33 percent of those with policies under $15,000 lapse their policies in each of the first three years, as opposed to about 5 to 10 percent of those with larger face amounts.

If you're buying whole life insurance, commit long-term.

The highest lapse rates for whole life policies are in the first five years. After that, lapse rates settle down at between 3 to 5 percent for whole life policies, according to LIMRA and SOA. Don't throw away your money by paying into a whole life policy for one to five years, only to abandon it.

Make sure you understand what you are buying.

This is true especially if you are looking at universal life and variable universal life, which can have many "moving parts" that affect your premiums due and death benefit.

Match your coverage to your life stage.

If you're under age 30 and buying a life insurance policy, consider carefully whether you're committed to paying that premium bill. Others like you, age 20 to 29, abandon their policies in higher numbers than older buyers, according to LIMRA and SOA.

Find the easiest way to pay.

Consider paying your premium bill through electronic funds transfer from your bank account. Policyholders who pay that way are more likely to keep their policies, perhaps because they never have to sit down and write a check.

Add a "disability waiver of premium" rider to your life insurance policy.

Life insurance experts see many policies lapse due to a disability that puts the policyholder out of work. A disability waiver of premium rider will cover your premium payments in this case.

Shop for a good life insurance rate from the start.

If you will be issued a policy with a smoking or "substandard" rate, make sure you can keep up with premium payments. People in those rate classes lapse their policies more often in the first five years. For example, about 18 percent of smokers with whole life policies lapse them in the first year as opposed to 11 percent of nonsmokers, according to LIMRA and SOA.

No matter what rate class you fall into, knowing that you secured a competitive life insurance price will make paying your premium bill easier.

Amy Danise is a staff writer for Insure.com. Visit Insure.com for a comprehensive array of comparative auto, life and health quotes, including a vast library of originally authored insurance articles and decision-making tools that are not available from any other single source. Insure.com is dedicated to providing impartial insurance information to consumers. Visitors can obtain instant insurance quotes from more than 200 leading insurers, achieve maximum savings and have the freedom to buy from any company shown.

jacksonville mortgage refinancing

Tuesday, November 27, 2012

The Way Insurance is Changing With the Times

How To Buy Life Insurance You'll Want To Keep

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