Do You Have Enough Insurance to Protect Your Family and Finances?

Home insurance, health insurance, car insurance—if you’re like the rest of us you have plenty of insurance bills to pay every month. And when the costs begin to add up, it’s easy to get frustrated and wonder if buying insurance is really worth it.

This is especially true if you don’t feel confident that you’re paying enough to protect your family and finance, while not overpaying for coverage that you don’t need.  Here are some helpful tips to set your mind at ease and let you know if you have the right amount of coverage…

Buying insurance for your home

Home insurance protects your family and finances on three fronts: structural damage, theft or damage of contents, and liability.

When buying insurance for your home the best protection comes through replacement cost coverage for the actual home. Replacement cost coverage will pay to fully rebuild your home if it is destroyed. Your home insurance premium will be higher, but it is well worth it to know that the total actual cost of your home is protected.

Most of the contents of your home will be protected under your home insurance policy. However, if you have very expensive items in your home such as watches and other jewelry, pricy works of art and collectibles, or antiques then you need to purchase a special rider to protect them.

Liability home insurance protects you when a person is injured on your property. Make sure that the liability coverage on your home insurance policy equals your total assets. If not, then you could lose whatever amount is not covered if you get sued.

Buying insurance for your health

Health insurance doesn’t just protect you and your family by providing coverage for hefty medical expenses such as serious injury and illness. Health insurance also makes it possible for millions of people to get the routine medical care that is essential to good health. When buying insurance for your health, there are a few questions that you can ask yourself to help you narrow your choices.

Are you and any covered dependents very healthy with no existing medical conditions requiring special treatments? If so, then you may be able to get by with a basic HMO, or health maintenance organization, insurance plan. Just remember that although these plans are among the most affordable, you’ll be limited as to which healthcare providers will accept your insurance.

Do you or a covered dependent require the attention of a medical specialist? Or, do you have a family doctor that you’d like to continue to visit? If either of these is true for your situation, then consider a more flexible, and a bit more expensive, PPO plan. PPO, or preferred provider health insurance plans allow you to pick which physicians you visit. Also, you won’t have to go through your primary every time you need to visit a medical specialist.

Buying insurance for your car

When it comes to buying insurance for your car, your state may have set minimums for coverages. You could simply buy the minimum coverage required by your state, but you’d probably be doing yourself a great disservice. It’s better to calculate what it will really take to cover your assets and use that as your guide.

For instance, you could save a few bucks per month dropping full comprehensive coverage on a paid for car. But if you don’t have the money in the bank to fully repair or replace that vehicle if it gets damaged, then you need to keep full coverage.

As for liability coverage (coverage that pays for damage done to the other driver’s body or property), being cheap now could mean serious trouble up ahead. The whole point of insurance is to protect you from financial ruin. When buying insurance for your auto, get enough liability coverage to protect all of your assets that aren’t otherwise protected.

There are tons of ways that you can learn to save money on car, medical, and home insurance. One is to shop around and compare rates and coverage from several different insurance companies before settling on a policy.

And when you can’t stand the idea of sending off another check, just remember that insurance is what can rebuild your home after a fire or pay for costly medical treatment for your spouse or child. That’s what makes every penny worth it.

When has ‘grandfathering in’ ever made anyone happy?

“Under the health reform law signed in March, health insurance plans must meet a variety of new requirements. But plans that existed before the law was signed can be “grandfathered in,” without necessarily having to meet all the new requirements.”
http://www.pbs.org/newshour/rundown/2010/06/republicans-business-lobby-criticize-new-ins…urance-rules.html

–I get that this will make it easier for the companies, but shouldn’t they have to eventually adjust to the new requirements? I think that there should be a longterm goal in mind of having everyone follow these specifications. Without equality how can we expect anyone to change from their current plans when they aren’t bogged down with specific rules? How can this new plan be successful if not following it is the best option. I guess once everyone over thirty now who has a healthcare plan dies, everything will be in effect. So we are only looking at fifty more years on inequality? Sound fair to you?

Why the bail out spelled disaster

Nouriel Roubini, or “Dr. Doom” as he has been dubbed by the media as well as those who have read his economical predictions, has said we are not out of the recession yet. In my opinion, we are just getting our feet wet right now. Americans have got to learn how to spend and save money wisely. Living beyond our means has caused these bail outs of big businesses. Sally Mae and Freddie Mac shouldn’t have been too big to break. Even now, they should be forced to downsize. Companies should not be able to operate above their means without the consequences. The american people live through these consequences while the governments and companies they see on the news are thriving and living above their means. The government encourages us to spend our money by giving us tax rebates to get the market going. The sad thing is that instead of saving their money, people use this “free money” to buy couches and school clothes and barbeque grills.
This new health insurance jump is coming too soon. People cannot afford to spend lots of money on insurance when they are already struggling to make ends meet. Life insurance, health insurance, car insurance, homeowners insurance, everything is important and valuable and you need it, but that is at least $500 dollars out of your pocket a month, not to mention the house note and the utilities. Something has got to change . People, find affordable coverage from smaller companies that you know can sustain your needs. If you are looking for life insurance, this is a good one, http://www.onedollarglobeinsurance.com/ if you need another type, let me know and I will help you search for a company that you can trust.

Mike

NMC wants $1M insurance policy on president

“TRAVERSE CITY — Northwestern Michigan College officials propose doubling President Tim Nelson’s life insurance benefit to $1 million, a perk that would cost taxpayers thousands of dollars extra in premium costs.”

This would mean that the same amount of money that goes to Nelson’s beneficiary will go to the community college. Nelson isn’t getting any more money, this is just a way to get money for the school. However, their policy payments will go up and taxpayers will not be happy. This article also says that this amount far outdistances the highest life insurance benefits given at other community colleges. When asked about why they wanted to increase it by such a large margin, the school said that they care more about their school than other community colleges. I am guessing they are planning for the future. That is something we all have to think about at times like these.

check out the article here:

http://www.record-eagle.com/local/local_story_307092552.html

Insurance company owner admits mail fraud, gets six-year sentence

“Frank Whitbeck, 61, the owner of the failed Signature Life Insurance Co. of Little Rock, Ark., entered a guilty plea to one count of mail fraud and was sentenced to six years in prison. He also was ordered to pay $3.8 million restitution and fined $12,000 He also faces three years’ supervision after completing his prison term. Whitbeck claimed his company had made secured loans, but according to the U.S. attorney’s office, he diverted the money to other business interests and himself.”

I just can’t believe this. All I can say is, welcome to America, home of the prisoners.

What Are the Different Types of Homeowner’s Insurance Available?

Homeowners Are Pulled in Many Directions When Trying to Find Good Home Insurance

Ok so in several previous posts here, here and here, I talked about homeowner’s insurance and dealing with the company through which I have my homeowner’s, Liberty Mutual.

I’ve learned a lot of good stuff that I’ll be sharing with you periodically; today I’m going to cover different types of home insurance people will be looking at.

So what are the different types of home insurance available to consumers?

Currently, the ISO has seven standardized homeowners insurance forms in general and consistent use. Of these HO-3 is the most common policy followed by HO-4 and HO-6.

Others that are less used, though still significant, are HO-1, HO-2, HO-5, and HO-8. Each is summarized below:

HO-1

A limited policy that offers varying degrees of coverage but only for items specifically outlined in the policy. These might be used to cover a valuable object found in the home, such as a painting.

HO-2

Similar to HO-1; HO-2 is a limited policy in that it covers specific portions of a house against damage. The coverage is usually a “named perils” policy, which lists the events that would be covered. As above, these factors must be spelled out in the policy.

HO-3

This policy is the most commonly written policy for a homeowner and is designed to cover all aspects of the home, structure and its contents as well as any liability that may arise from daily use, as well as any visitors who may encounter accident or injury on the premises. Covered aspects as well as limits of liability must be clearly spelled out in the policy to insure proper coverage. The coverage is usually called “all risk”. Also called an “open perils” policy.

HO-4

This is commonly referred to as renters insurance or renter’s coverage. Similar to HO-6, this policy covers those aspects of the apartment and its contents not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150′ of the domicile. Common coverage areas are events such as lightning, riot, aircraft, explosion, vandalism, smoke, theft, windstorm or hail, falling objects, volcanic eruption, snow, sleet, and weight of ice.

HO-5

This policy, similar to HO-3, covers a home (not a condo or apartment), the homeowner and its possessions as well as any liability that might arise from visitors or passers-by. This coverage is differentiated in that it covers a wider breadth and depth of incidents and losses than an HO-3.

HO-6

As a form of supplemental homeowner’s insurance, HO-6, also known as a Condominium Coverage, is designed especially for the owners of condos. It includes coverage for the part of the building owned by the insured and for the property housed therein of the insured. Designed to span the gap between what the homeowner’s association might cover in a blanket policy written for an entire neighborhood and those items of importance to the insured, typically the HO-6 covers liability for residents and guests of the insured in addition to personal property. The liability coverage, depending on the underwriter, premium paid, and other factors of the policy, can cover incidents up to 150′ from the insured property, all valuables within the home from theft, fire or water damage or other forms of loss. It is important to read the Associations By-laws to determine the total amount of insurance needed on your dwelling.

HO-8

It is usually called “older home” insurance. It lets house owners with higher replacement cost than the market value insure them at the lower market value rate.

Hope this helps you out and, as always, feel free to comment with any questions!

China is Spreading Life Insurance to Rural Areas

From http://www.onlyfinance.com:

“China LIFE Insurance, which is the largest insurer in China is to branch out small amounts of life insurance policies in rural areas. Nine provinces in China will be the testing points.

This is good news to China who have felt the effects of the credit crunch. However, China Life Insurance has claimed that it is not involved with the other insurance companies that have been hit by financial struggle.

Rural China Will Be Getting Life Insurance

The nine provinces consist of areas such as Qinghai, Sichuan, Gansu, Henan and Hubei. During the testing period the insurer is allowed to provide nine different types of insurance policies, which will range from personal accident insurance, traffic accident insurance and life insurance. These policies will be sold to both groups and families.

The insurance regulator urges the insurers to expand its coverage as well as explore effective promotional plans to these testing areas.

The CIRC stated that the insurer is not only providing insurance, but it is a way of reporting statistics and materials.”

Non-Resident Insurance Agent Licensing Bill – Pass or No Pass?

As of today, this hotly debated bill has been passed.

According to the article, the NARAB Reform Act from David Scott (D-Ga.) and Geoff Davis (R-Ky.) e would provide for nonresident insurance agent and broker licensing while preserving the rights of states to supervise and discipline insurance agents and brokers.

This legislation modifies the original NARAB provisions of the Gramm-Leach-Bliley Act , which means that this private, non-profit entity managed by a board composed of insurance regulators and marketplace representatives isn’t going to be so private anymore with greater federal regulation.

For more details and the nitty gritty of this story, check it out here.

Cost Tops Consumers’ List of Excuses for Not Getting Life Insurance

To better understand why so many Americans do not have the life insurance coverage they say they need, the LIFE Foundation commissioned a survey that examined people’s reasons for not making a purchase. These are the top three reasons:

— 58% haven’t purchased a policy because they say it is too expensive — 23% say they just haven’t gotten around to it — 22% say they don’t know enough about it to buy…Read More Here

Life Insurance Premiums in China Expand 67% in First 7 Months

Here’s an excerpt from the article on Xinhuanet.com:
“Life insurance companies in China, both domestic and foreign-funded, collected 481.89 billion yuan (70.55 billion U.S. dollars) in premiums in the first seven months of this year, up 66.7 percent year-on-year, the China Insurance Regulatory Commission (CIRC) said on Thursday.

The growth rate was 2.3 percentage points higher than in the first half alone, it said.

In terms of life insurance premiums, the total included 203 billion yuan for China Life, up 54 percent, 61.4 billion yuan for Ping An’s life insurance company, up 30 percent, and 43.7 billion yuan for Pacific Insurance’s life assurance branch, up 58 percent.

In July alone, these three collected premiums of 12.8 billion yuan, 7.5 billion yuan and 4.8 billion yuan, respectively, up 98 percent, 48 percent and 55 percent over the year-earlier level.

Luo Yi, an analyst with China Merchants Securities, attributed the fast growth to sales of investment-oriented policies through banks, which could result in risks such as exaggeration of investment returns and weak supervision…” Read More Here.