Thursday, May 27, 2010
Tuesday, July 28, 2009
Wednesday, July 22, 2009
Types of Life Insurance
Term life Insurance:
It provides life insurance coverage for a specific duration of time or specific number of years for a specified premium. This type of policy coverage does not accumulate cash value. It is commonly referred and considered pure insurance. It is pure insurance because the premium buys protection in the event of death and nothing more. Though it will not accumulate any cash value, it is 8 to 10 times cheaper than a permanent life insurance.
Permanent life Insurance:
It is a type of life insurance that remains in force until the policy matures. This will be in force provided that he owner continue to pay their premium when due. If the owner fails to pay the premium when it is due, the policy expires or policies lapse. Permanent life insurance cannot be canceled by the insurer for any reason except for fraud in the application. This type of insurance builds cash value that reduces the level of risk to the insurer over time.
There are two basic types of permanent insurance namely; universal life and whole life.
A universal life insurance is another type of permanent life insurance that is based on cash value. Universal life is intended to provide insurance coverage with greater flexibility in terms of the premium payments and the potential for a higher internal rate of return. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some of these changes require underwriting approval. The main benefits of a universal life are its flexibility, security and protection for love ones, tax-free death benefit and tax deferred account value growth.
A whole life insurance is a type of insurance whereby the insurance policy remains in force for the policyholders’ whole life. There are seven different types of whole life insurance namely; non-participating, participating, indeterminate premium, economic, limited pay, single premium, and interest sensitive. Whole life insurance is expensive. This type of insurance is like a force savings. You are not only paying for the insurance but for the investment portion of it.
It provides life insurance coverage for a specific duration of time or specific number of years for a specified premium. This type of policy coverage does not accumulate cash value. It is commonly referred and considered pure insurance. It is pure insurance because the premium buys protection in the event of death and nothing more. Though it will not accumulate any cash value, it is 8 to 10 times cheaper than a permanent life insurance.
Permanent life Insurance:
It is a type of life insurance that remains in force until the policy matures. This will be in force provided that he owner continue to pay their premium when due. If the owner fails to pay the premium when it is due, the policy expires or policies lapse. Permanent life insurance cannot be canceled by the insurer for any reason except for fraud in the application. This type of insurance builds cash value that reduces the level of risk to the insurer over time.
There are two basic types of permanent insurance namely; universal life and whole life.
A universal life insurance is another type of permanent life insurance that is based on cash value. Universal life is intended to provide insurance coverage with greater flexibility in terms of the premium payments and the potential for a higher internal rate of return. The flexibility of this policy allows you to change the amount of insurance as your needs for insurance change. Some of these changes require underwriting approval. The main benefits of a universal life are its flexibility, security and protection for love ones, tax-free death benefit and tax deferred account value growth.
A whole life insurance is a type of insurance whereby the insurance policy remains in force for the policyholders’ whole life. There are seven different types of whole life insurance namely; non-participating, participating, indeterminate premium, economic, limited pay, single premium, and interest sensitive. Whole life insurance is expensive. This type of insurance is like a force savings. You are not only paying for the insurance but for the investment portion of it.
Wednesday, June 10, 2009
Homeowners Insurance
There are 6 different types of homeowners insurance in general that are consistently utilized. Of these HO-3 is the most usual policy then it is followed by HO-4 and HO-6. Others less used, but still important, are HO-1, HO-2 and HO-5. Everyone is described below:
HO-1
A limited policy that offers varied degrees of coverage but includes items that are specifically included in the policy. These may be used to include a valuable object in the home, such a painting or certain types of jewelry.
HO-2
Similar to HO-1, HO-2 is a limited policy in that it will cover only specific portions of a home against damage. The coverage is ordinarily a "named perils" policy, which lists the cases that would be covered. As above, these factors must be spelled come in the policy.
HO-3
This policy is the most common one written for a owner and is designed to cover all aspects of the home, its structure and it contents. Also includes any liability that will arise from daily living. This includes visitors in the home that might encounter an accident or even injury on the premises. Covered aspects of liability must be clearly spelled out in the policy to insure proper coverage. The coverage is ordinarily called "all risk".
HO-4
This is unremarkably referred to as renter's insurance. Similar to HO-6, this policy covers those aspects of the living accommodations and its contents not specifically covered in the blanket policy written for the renter's complex. This policy can, as well, cover liabilities arising from accidents and injuries for guests and passers-by up to 150' of the renter's complex.
Extremely low in cost and high in coverage, this is an extremely recommended policy for anyone renting an apartment
HO-5
This policy, similar to HO-3, covers a home (not a dwelling or even apartment), the owner and its possessions. Liability that might arise from visitors or even passers-by. This coverage is differentiated therein it covers a wider scope and depth of incidents and losses than AN HO-3.
HO-6
As a form of supplemental homeowner's insurance, HO-6, a.k.a. a Condominium Coverage, is designed especially for the owners of condos. It includes coverage for the share of the building closely-held per insured and for the property housed in that of the insured.
Designed to span the gap between what the homeowner's association can cover in a blanket policy written for associate entire neighborhood and those things of importance to the insured. Occasionally the HO-6 covers liability for residents and guests on their private property. The liability coverage, contingent to the underwriter, premium paid, and more factors of the policy, can cover incidents up to 150' from the insured property, all valuables in the home from theft, fire or even water damage or even more forms of loss.
It's significant to read the Associations By-laws to determine the aggregate amount of insurance needful on your lodging.
Extremely low in cost and high in coverage, this is a extremely recommend policy for anyone owning a condo.
HO-1
A limited policy that offers varied degrees of coverage but includes items that are specifically included in the policy. These may be used to include a valuable object in the home, such a painting or certain types of jewelry.
HO-2
Similar to HO-1, HO-2 is a limited policy in that it will cover only specific portions of a home against damage. The coverage is ordinarily a "named perils" policy, which lists the cases that would be covered. As above, these factors must be spelled come in the policy.
HO-3
This policy is the most common one written for a owner and is designed to cover all aspects of the home, its structure and it contents. Also includes any liability that will arise from daily living. This includes visitors in the home that might encounter an accident or even injury on the premises. Covered aspects of liability must be clearly spelled out in the policy to insure proper coverage. The coverage is ordinarily called "all risk".
HO-4
This is unremarkably referred to as renter's insurance. Similar to HO-6, this policy covers those aspects of the living accommodations and its contents not specifically covered in the blanket policy written for the renter's complex. This policy can, as well, cover liabilities arising from accidents and injuries for guests and passers-by up to 150' of the renter's complex.
Extremely low in cost and high in coverage, this is an extremely recommended policy for anyone renting an apartment
HO-5
This policy, similar to HO-3, covers a home (not a dwelling or even apartment), the owner and its possessions. Liability that might arise from visitors or even passers-by. This coverage is differentiated therein it covers a wider scope and depth of incidents and losses than AN HO-3.
HO-6
As a form of supplemental homeowner's insurance, HO-6, a.k.a. a Condominium Coverage, is designed especially for the owners of condos. It includes coverage for the share of the building closely-held per insured and for the property housed in that of the insured.
Designed to span the gap between what the homeowner's association can cover in a blanket policy written for associate entire neighborhood and those things of importance to the insured. Occasionally the HO-6 covers liability for residents and guests on their private property. The liability coverage, contingent to the underwriter, premium paid, and more factors of the policy, can cover incidents up to 150' from the insured property, all valuables in the home from theft, fire or even water damage or even more forms of loss.
It's significant to read the Associations By-laws to determine the aggregate amount of insurance needful on your lodging.
Extremely low in cost and high in coverage, this is a extremely recommend policy for anyone owning a condo.
Monday, April 2, 2007
Driving Without Insurance
Before issuing a policy, insurance companies generally do a thorough investigation of a driver's record and prior claims history. They will check to see whether your the applicant has gotten any tickets in the past several years or whether he has reported an unusual number of accidents. When they discover that he doesn't have a prior claims history (because he hasn't had insurance), he'll probably be classified as a high-risk driver--even if he has a clean driving record.
Some insurers might reject his application at that point. An insurance company has no obligation to issue a policy to a driver who they feel poses an unreasonable amount of risk. Other insurers will issue a policy, but it may be at a higher premium than they would charge a driver who is not considered high risk. Some insurers do not penalize a good driver who has gone without insurance, but your son shouldn't count on finding one without a great deal of research.
There are even insurance companies that specialize in high-risk drivers. You've probably seen or heard their advertisements on television, on the radio, in newspapers, and in magazines. These insurers often claim they'll insure anyone, but your son should probably make them a last resort. The premiums on policies issued by high-risk insurers tend to be much higher than those from standard insurers.
If the applicant lives in a state that has a compulsory insurance law (requiring him to have at least some level of liability coverage), his state may have created an assigned-risk pool to provide coverage for high-risk drivers. If he has trouble obtaining insurance coverage, he can contact his state's assigned-risk pool directly or ask an insurance agent for more information.
Some insurers might reject his application at that point. An insurance company has no obligation to issue a policy to a driver who they feel poses an unreasonable amount of risk. Other insurers will issue a policy, but it may be at a higher premium than they would charge a driver who is not considered high risk. Some insurers do not penalize a good driver who has gone without insurance, but your son shouldn't count on finding one without a great deal of research.
There are even insurance companies that specialize in high-risk drivers. You've probably seen or heard their advertisements on television, on the radio, in newspapers, and in magazines. These insurers often claim they'll insure anyone, but your son should probably make them a last resort. The premiums on policies issued by high-risk insurers tend to be much higher than those from standard insurers.
If the applicant lives in a state that has a compulsory insurance law (requiring him to have at least some level of liability coverage), his state may have created an assigned-risk pool to provide coverage for high-risk drivers. If he has trouble obtaining insurance coverage, he can contact his state's assigned-risk pool directly or ask an insurance agent for more information.
Monday, March 19, 2007
Burglary and Your Homeowners Insurance
After leaving your home, do you worry that you forgot to lock the door or if you left a light on to make your home appear occupied? Gone are the days when your parents trusted the world with an unlocked front door, as evidenced by the fact that burglaries affected 1out of every 39 homes last year. It's an unfortunate event that ravishes a family's sense of security and frequently frustrates victims as they fight to replace the possessions that were stolen or damaged. Most burglary victims will testify that making a claim on your homeowners insurance policy after a burglary is a process that is very similar to shopping for a new quote. You need to determine what you once had and accurately assign it a value. Unfortunately, when most people shop for homeowners insurance, they erroneously guess a value for all their possessions and focus solely on controlling the cost of what seems like just another bill. Can you accurately list from memory everything in your house? How many necklaces and rings do you have; DVDs in your movie library; and exactly what type of digital camera is it? Most people struggle to answer such questions, let alone in a situation of post-traumatic burglary anguish.
Creating an inventory of your personal property is a habit that should coincide with your annual review of your homeowners policy. Before you even compare new homeowners rates, simply go room to room and document every item. Try to get serial numbers when possible and gather as much detail as you can: when, where, and for what price you purchased each item. Previous victims will tell you that pictures and videos of the larger ticket items and any supporting receipts are invaluable in the process of making a theft claim on your policy.
According to the Insurance Information Institute, standard homeowners insurance policies generally value personal property at 50% to 70% of the coverage on the structure of the home. Of course, as we mentioned above, a home inventory will make determining the value much easier and absolute. The more valuable possessions like jewelry, collectables, and antiques are protected by a standard policy, but there are usually limits to what a company will pay for these. To insure these items to their full replacement value, consider adding a personal property rider to your policy. Although this will add to the cost of your premium, the extra coverage will be much broader for these items. For example, a diamond engagement ring would be covered in the event of a burglary or even if you lost it during a vacation. Riders can be added during the quoting process, or at any time thereafter, but they generally require an appraisal to underwrite.
As you review your homeowners insurance policy this year, spend some time on your personal possessions with the same attention to detail that you might if your home was burglarized. You are certain to uncover areas where you are under covered and will most likely discover opportunities for potential savings.
Contact me for a review of your current coverages and homeowners policy needs.
robmtchl@bellsouth.net
Life Lessons Scholarship Essay Contest Winner: Jermaine Suggs
See the Video:http://www.life-line.org/video/suggs/suggs.html
Imagine being in college and approaching midterms and a call comes to the payphone in the lobby of the dorm. The voice on the other end is telling you that your grandmother has died. Then, after all the crying and the casket is lowered on Sunday, you return back to school and try to concentrate when your heart is throbbing and aching. On Tuesday, two days after burying a grandmother the pay phone rings again, this time the voice is reluctant to say what is wrong it just says come home immediately. Upon reaching home the house is like it was last week crying, and sobbing everywhere and then you are approached by your mother and she barely says over the sniffing and weeping, "Jermaine, your father died today."
It seemed like the sky was falling and the sun was surrounding me, my legs were heavier than they had ever been in my life, my head seemed as if it was filled with water, and instead of me crying, I just turned and ran, I ran until my legs hurt, and I kept running until my chest told me I could no further. I fell right there in the grass maybe two feet from the highway. I quit school; I even gave up on life.
The death of my father caused us to lose everything, his business, my ambition, and my siblings' closeness because of our new financial strain. My father was in the Army National Guard for over fifteen years, but in last two years he had let his life insurance drop and the amount of money owed to the Internal Revenue Service for taxes accrued from his business. If it was not for the life insurance of my grandmother we would not have been able to bury my father.
I live in the black belt in Alabama, a place known for its rich soil, and unfortunately, its degree of poverty throughout a four to five county area. If my father had life insurance it would have softened the blow tremendously, since his debt in turn became ours. I knew that college of course was out of the question my mom still had a younger sibling to look after as well as my niece who my mom had taken in. So, I got a job and that's what I have been doing for the last three years working with hopes of attending college.
A common saying among Christians is "A person can take nothing with them into the after-life." I would like to amend that saying by adding that even though nothing can be taken into the after-life something can be left behind; call it an after-death blessing and its name is LIFE INSURANCE
If you are unsure about your families protection, contact me and I will help. robmtchl@msn.com
Imagine being in college and approaching midterms and a call comes to the payphone in the lobby of the dorm. The voice on the other end is telling you that your grandmother has died. Then, after all the crying and the casket is lowered on Sunday, you return back to school and try to concentrate when your heart is throbbing and aching. On Tuesday, two days after burying a grandmother the pay phone rings again, this time the voice is reluctant to say what is wrong it just says come home immediately. Upon reaching home the house is like it was last week crying, and sobbing everywhere and then you are approached by your mother and she barely says over the sniffing and weeping, "Jermaine, your father died today."
It seemed like the sky was falling and the sun was surrounding me, my legs were heavier than they had ever been in my life, my head seemed as if it was filled with water, and instead of me crying, I just turned and ran, I ran until my legs hurt, and I kept running until my chest told me I could no further. I fell right there in the grass maybe two feet from the highway. I quit school; I even gave up on life.
The death of my father caused us to lose everything, his business, my ambition, and my siblings' closeness because of our new financial strain. My father was in the Army National Guard for over fifteen years, but in last two years he had let his life insurance drop and the amount of money owed to the Internal Revenue Service for taxes accrued from his business. If it was not for the life insurance of my grandmother we would not have been able to bury my father.
I live in the black belt in Alabama, a place known for its rich soil, and unfortunately, its degree of poverty throughout a four to five county area. If my father had life insurance it would have softened the blow tremendously, since his debt in turn became ours. I knew that college of course was out of the question my mom still had a younger sibling to look after as well as my niece who my mom had taken in. So, I got a job and that's what I have been doing for the last three years working with hopes of attending college.
A common saying among Christians is "A person can take nothing with them into the after-life." I would like to amend that saying by adding that even though nothing can be taken into the after-life something can be left behind; call it an after-death blessing and its name is LIFE INSURANCE
If you are unsure about your families protection, contact me and I will help. robmtchl@msn.com
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