Looking for auto insurance that covers any drivers?
Get car insurance quotes online for policy to cover other drivers rather than just you. Any driver you would like covered on your cars would have to fit the coverage eligibility and each company has its own rules and regulations on covering persons not included in the policy. In order to be sure, review carefully the details on “drivers covered” before allowing others to drive.
In general, anyone residing at your home address who will be driving your vehicles would have to be listed and included in order for auto insurance coverage to apply. Be cautious about the “excluded drivers” section which will specify anyone who it will definitely not cover. By signing the exclusion agreement, you are agreeing that those listed persons are not covered under any circumstance.
It is best to add anyone who will likely drive your cars in order to be sure; however, some companies will provide limited coverage for anyone who:
* does not reside in your household
* does not have regular access to your vehicles
* does not own the vehicle or is listed in the registration title
* is not using the cars for work place related purposes
If you’re unsure or have a special circumstance, you may want to speak to an agent to check and make sure that the policies will be covering anyone who drives.
Adding a driver to a car insurance policy:
Policyholders can contact their carrier to add drivers who will be driving their automobiles. The process should be quite simple. First you will need to gather basic information such as date of birth, and any history of convictions and accidents such as convicted drunk drivers.
High risk drivers may generate a higher rate because they may be considered more likely to be involved in an accident. Young, teen or 1st time new drivers with a learners permit may also cause high premiums and may impact not just the vehicle they will be driving but all on the policy. Although there are some benefits to adding multiple autos to a policy such as multi car discounts, you should weigh out the difference in price savings by quoting the addition of the driver to your current policy vs. buying a whole new policy for them.
Quotes are free at OnlineAutoInsurance.com and with one simple process, you may get the rates of multiple leading carriers to complete a premium comparison. Since there are such wide ranges of drivers such as those with expired driver’s license, elderly drivers or even the occasional imperfect driver with bad credit or no license at all, it is important to realize that there are companies out there that specialize in the high risk categories and can offer very reasonable rates.
Does auto insurance cover the car or driver?
When a driver purchases a policy, the liability portion will follow them to which ever vehicle they drive as long as it falls within the coverage guidelines. Other protection plans covering the vehicle itself such as comprehensive and collision will only cover the car specified in the policy and will not transfer to other cars.
DYNAMIC LIFE AND AUTO INSURANCE : Consider Auto Insurance Rates When You Buy A Car
This isn?t old news, but the type of car you buy effects your auto insurance rates. The more expensive or high-performance your car is, the higher your premiums will be. Why? It?s because the cost to repair a luxury or sports car is often significantly more than it is to repair an economy car. It?s a matter of mathematics. Less expensive automobiles are not as costly to repair if they?re involved in an accident. For some higher-end cars and trucks, just to replace a side-view mirror could cost a few hundred dollars.
How Rates are Set
Car insurance companies refer to the Insurance Services Office (ISO) when establishing coverage costs. The ISO is a reporting group for the insurance industry that publishes a statistical manual that rates vehicles based on the manufacturers suggested selling price, its loss history (if the car is not brand new), and in some cases the vehicles safety liability and theft level. The ISO establishes a number between 3 and 27 for each vehicle. The number assigned symbolizes the comprehensive and collision cost/coverage of that vehicle. The higher the number, the more costly it is to cover that vehicle.
Now let?s look at a few examples. If you have a car that is considered an economy car, yet the specific make and model you have has a high theft rate (i.e. it is stolen more often than other cars on the road), the number the ISO establishes for the car might be high. For sports cars, the ISO number is normally high because the faster the car, the more prone it is to traffic accidents; and in many cases, the cost to repair high-performance vehicles is significantly more than other vehicles. Sport utility vehicles (SUVs) are also weighed as high-liability vehicles. That?s because studies have shown that SUVs cause more damage in an auto accident than a standard economy or sedan model. In this case, some auto insurance providers increase the liability premiums for high-performance cars and SUVs.
Before You Buy, Research
If you want to keep your insurance from skyrocketing, it?s a good idea to do some research before you hit the dealerships. For starters, ask your existing car insurance company for an estimate on a few makes and models you?re thinking about test driving. The quotes you get back will give you an idea of how much it will cost to insure those makes and models. Having those quotes in hand will also help you keep your spending under control by reminding you that you also need to consider insurance rates when estimating how much you can afford on a new car.
Your age, where you live, and your driving record all play a factor in the cost of your auto insurance. Of course, the ultimate factor is the type of car you drive. The difference between insuring a four-door economy car will be significantly less than insuring a high-priced sports car. So, if you?re shopping for a new car, remember to keep your future auto insurance premiums in mind. It will help you make a more informed and affordable choice.
How Rates are Set
Car insurance companies refer to the Insurance Services Office (ISO) when establishing coverage costs. The ISO is a reporting group for the insurance industry that publishes a statistical manual that rates vehicles based on the manufacturers suggested selling price, its loss history (if the car is not brand new), and in some cases the vehicles safety liability and theft level. The ISO establishes a number between 3 and 27 for each vehicle. The number assigned symbolizes the comprehensive and collision cost/coverage of that vehicle. The higher the number, the more costly it is to cover that vehicle.
Now let?s look at a few examples. If you have a car that is considered an economy car, yet the specific make and model you have has a high theft rate (i.e. it is stolen more often than other cars on the road), the number the ISO establishes for the car might be high. For sports cars, the ISO number is normally high because the faster the car, the more prone it is to traffic accidents; and in many cases, the cost to repair high-performance vehicles is significantly more than other vehicles. Sport utility vehicles (SUVs) are also weighed as high-liability vehicles. That?s because studies have shown that SUVs cause more damage in an auto accident than a standard economy or sedan model. In this case, some auto insurance providers increase the liability premiums for high-performance cars and SUVs.
Before You Buy, Research
If you want to keep your insurance from skyrocketing, it?s a good idea to do some research before you hit the dealerships. For starters, ask your existing car insurance company for an estimate on a few makes and models you?re thinking about test driving. The quotes you get back will give you an idea of how much it will cost to insure those makes and models. Having those quotes in hand will also help you keep your spending under control by reminding you that you also need to consider insurance rates when estimating how much you can afford on a new car.
Your age, where you live, and your driving record all play a factor in the cost of your auto insurance. Of course, the ultimate factor is the type of car you drive. The difference between insuring a four-door economy car will be significantly less than insuring a high-priced sports car. So, if you?re shopping for a new car, remember to keep your future auto insurance premiums in mind. It will help you make a more informed and affordable choice.
DYNAMIC LIFE AND AUTO INSURANCE : How to Compare Auto Insurance quotes online
Comparing online car insurance quotes is easier than most people think. An estimated 30% prefer to talk to an agent, buy why? Most likely because they still need to learn how to do it online. It’s as easy as any other method out there and it’s actually faster.
Here’s how to compare auto insurance quotes online:
1. First you need to make sure you have available the required information for your quotes. No personal information is required; however, you do need to provide important info which will be used for the purpose of the rate quotation such as:
* Driver data such as dates of birth, marital status, driving record history about tickets or accidents within the past 7 years.
* Vehicle data such as garaging zip code, year - make - model and sub model (you may choose to enter the VIN number for automatic model matching)
* Coverage desired - there are many types of coverage available so be sure to know about them. For more information, visit the learning center to read about the available coverage options.
2. Once you have the required data and have made a decision about the type of protection desired, start the car insurance quote comparison online to receive instant rates by entering your zip code and hitting the “GO” button.
3. Answer the basic questionnaire about the cars and drivers on the policy which will only take minutes.
4. Once the form is completed it is time to compare auto insurance from the variety of companies. Keep in mind other factors than just price by looking a bit further into the company history. Ask a friend if they or anyone they know has any feedback on the carrier.
It really is simple. No computer skills are required. It’s just answering questions online instead of an agent. Don’t worry, if you have questions about the process, you may call the phone number included at the top right once you begin the comparison process. The best part is that you may choose to purchase your policy online or by telephone once an insurer is chosen.
Here’s how to compare auto insurance quotes online:
1. First you need to make sure you have available the required information for your quotes. No personal information is required; however, you do need to provide important info which will be used for the purpose of the rate quotation such as:
* Driver data such as dates of birth, marital status, driving record history about tickets or accidents within the past 7 years.
* Vehicle data such as garaging zip code, year - make - model and sub model (you may choose to enter the VIN number for automatic model matching)
* Coverage desired - there are many types of coverage available so be sure to know about them. For more information, visit the learning center to read about the available coverage options.
2. Once you have the required data and have made a decision about the type of protection desired, start the car insurance quote comparison online to receive instant rates by entering your zip code and hitting the “GO” button.
3. Answer the basic questionnaire about the cars and drivers on the policy which will only take minutes.
4. Once the form is completed it is time to compare auto insurance from the variety of companies. Keep in mind other factors than just price by looking a bit further into the company history. Ask a friend if they or anyone they know has any feedback on the carrier.
It really is simple. No computer skills are required. It’s just answering questions online instead of an agent. Don’t worry, if you have questions about the process, you may call the phone number included at the top right once you begin the comparison process. The best part is that you may choose to purchase your policy online or by telephone once an insurer is chosen.
DYNAMIC LIFE AND AUTO INSURANCE : Top 10 Things to Know About Life Insurance
Life insurance can be a great way to get protection for now and to plan for the future. After all, we want to make sure that our plans and loved ones are taken care of for as long as possible. Doing research ahead of time helps you get the best possible coverage at the right price. Here are some helpful facts and ways they can help you.
1. Shopping around can save money
As with most insurance, when it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. From research, to quoting, to buying a policy, there's never been so much information available. Even if you need to speak to an agent or company, shopping on the Internet first can make your discussion more efficient.
2. Having enough coverage is crucial
If you need life insurance enough to buy it, you also need to make sure you're not underinsured. It's important not to have too little coverage, because then you won't get the benefits you need. If you don't think you can afford life insurance, explore your options, because it's often cheaper than you'd expect. However, if you can't afford all the insurance you need right now, start with a smaller amount. You should be able to buy more at a similar price when you can afford it.
3. The healthier you are, the better the rates
It's true—healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., smoking, taking regular prescriptions, engaging in risky activities, and being overweight). Consider what small lifestyle changes you can make that will improve your health and possibly your rates.
4. Buying sooner rather than later can help
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be. In addition, it's harder to get life insurance if you have some of the conditions that come with growing older.
5. It's important to regularly review your coverage
The end of one year or the beginning of the next is a good time to examine your insurance needs. Any life change signals the need for a review of your overall financial plan. When it comes to life insurance, you'll want to make sure your coverage still matches the changes you've made. Marriage, the birth of a child, and impending retirement can all have an effect on the insurance you need and the coverage amount that's appropriate.
6. There are different types of life insurance
Different types of life insurance have different characteristics and are intended to accomplish different things. For instance, term life insurance is generally designed to provide the maximum amount of protection for the smallest premium dollar, but only for a set period. On the other hand, cash value life insurance offers benefits for your entire life and an investment and savings component, although at a much higher premium cost. In the majority of cases, term life insurance is the better choice.
7. You might pay more by choosing monthly premium payments
You may not realize it, but your life insurance might cost more if you pay your premium in monthly installments. Many insurance companies offer a discount if you pay your premium annually rather than monthly. Although the overall cost and benefits of the policy are more important than getting a discount, you might get a lower price by paying annually.
8. You shouldn't rely solely on the life insurance offered by your employer
Many employers offer their employees group life insurance. However, this coverage is usually not enough to adequately meet your life insurance needs. More importantly, group life insurance policies from your employer are not portable, meaning that if you leave your job, you lose your life insurance coverage.
9. You should tell the whole truth and nothing but the truth
If you lie or omit information on a life insurance application, your life insurance company may be able to terminate your coverage. They may also be able to charge you for the higher premiums you should have been paying, or deny claims. For this reason, make sure to answer all questions fully. There are many different life insurance companies, and even if you don't qualify for the best rate from one of them, you may still be able to get a good rate from another.
10. Buying more can be cheaper
Life insurance usually costs progressively less per thousand dollars at higher coverage amounts (e.g., $250,000). That means doubling your coverage generally won't double your premium. If your life insurance needs increase, be sure to explore your options. It may not cost as much as you think to buy more coverage.
1. Shopping around can save money
As with most insurance, when it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. From research, to quoting, to buying a policy, there's never been so much information available. Even if you need to speak to an agent or company, shopping on the Internet first can make your discussion more efficient.
2. Having enough coverage is crucial
If you need life insurance enough to buy it, you also need to make sure you're not underinsured. It's important not to have too little coverage, because then you won't get the benefits you need. If you don't think you can afford life insurance, explore your options, because it's often cheaper than you'd expect. However, if you can't afford all the insurance you need right now, start with a smaller amount. You should be able to buy more at a similar price when you can afford it.
3. The healthier you are, the better the rates
It's true—healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., smoking, taking regular prescriptions, engaging in risky activities, and being overweight). Consider what small lifestyle changes you can make that will improve your health and possibly your rates.
4. Buying sooner rather than later can help
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be. In addition, it's harder to get life insurance if you have some of the conditions that come with growing older.
5. It's important to regularly review your coverage
The end of one year or the beginning of the next is a good time to examine your insurance needs. Any life change signals the need for a review of your overall financial plan. When it comes to life insurance, you'll want to make sure your coverage still matches the changes you've made. Marriage, the birth of a child, and impending retirement can all have an effect on the insurance you need and the coverage amount that's appropriate.
6. There are different types of life insurance
Different types of life insurance have different characteristics and are intended to accomplish different things. For instance, term life insurance is generally designed to provide the maximum amount of protection for the smallest premium dollar, but only for a set period. On the other hand, cash value life insurance offers benefits for your entire life and an investment and savings component, although at a much higher premium cost. In the majority of cases, term life insurance is the better choice.
7. You might pay more by choosing monthly premium payments
You may not realize it, but your life insurance might cost more if you pay your premium in monthly installments. Many insurance companies offer a discount if you pay your premium annually rather than monthly. Although the overall cost and benefits of the policy are more important than getting a discount, you might get a lower price by paying annually.
8. You shouldn't rely solely on the life insurance offered by your employer
Many employers offer their employees group life insurance. However, this coverage is usually not enough to adequately meet your life insurance needs. More importantly, group life insurance policies from your employer are not portable, meaning that if you leave your job, you lose your life insurance coverage.
9. You should tell the whole truth and nothing but the truth
If you lie or omit information on a life insurance application, your life insurance company may be able to terminate your coverage. They may also be able to charge you for the higher premiums you should have been paying, or deny claims. For this reason, make sure to answer all questions fully. There are many different life insurance companies, and even if you don't qualify for the best rate from one of them, you may still be able to get a good rate from another.
10. Buying more can be cheaper
Life insurance usually costs progressively less per thousand dollars at higher coverage amounts (e.g., $250,000). That means doubling your coverage generally won't double your premium. If your life insurance needs increase, be sure to explore your options. It may not cost as much as you think to buy more coverage.
DYNAMIC LIFE AND AUTO INSURANCE : Anatomy of a Misleading Sales Pitch
A rash of policyholder complaints about misleading sales practices has fueled a growing number of class action suits against life insurance companies. The offending practices usually take one of two forms: "churning" (also known as "twisting") or promises of "vanishing premiums."
Churning and twisting
Once a policyholder has been paying into a whole life insurance policy for some time, its cash value builds up, making the policy more valuable. Some unscrupulous life insurance agents then convince their customers to use the built-up cash value of their existing policies to buy a "new, improved" policy - one with more coverage, different features, or a different payment schedule.
What these agents neglect to tell their customers is their existing policies are usually quite adequate for their needs, and when they use the built-up cash value to purchase a new policy, they start from square one in building up cash value in the new policy. This practice is called "churning" or "twisting." It's unethical - and illegal. Some agents churn because they earn a commission for each new policy they sell.
The fallout from churning isn't immediately apparent. A customer doesn't have to shell out any money up front because the built-up cash value of the existing policy pays the initial premiums of the new one. Once you use the cash value; however, it's gone.
Texas insurance commissioner Jose Montemayor says "churning" profits insurance agents at your expense. " If you bought the original policy at an earlier age, the new policy might cost more and offer less coverage. In addition, if you should die during the first two years of a new policy, the insurance company can contest claims for the death benefits," Montemayor warns. "Many companies pay larger commissions to agents for new policies than for renewals."
A policy's cash value is actual money the policyholder owns, although usually just on paper. Cash value can be used as security for a loan or converted into an annuity. If a policyholder decides to cancel a life insurance policy with built-up cash value, he's entitled to that money, minus the surrender charge.
Vanishing premiums
Life insurance companies take the money they collect in premiums and invest it - that's how they make their money. In the case of permanent life insurance policies such as whole life and universal life, companies then apply some of those investment earnings back to the value of your policy.
During the early 1980s, interest rates were high and it looked like they'd keep on climbing. So, life insurance companies projected the rate of return from investing today's policy premiums would eventually pay for any future premiums. Some agents told customers they would only have to pay premiums for a few years. The agents claimed returns on the insurance company's investments would pay for the policy after that.
As it turned out, those rosy projections weren't accurate. Interest rates fell, and customers who'd been told their policies would start paying for themselves kept getting bills in the mail. Angry policyholders protested, only to be told insurance company projections weren't guaranteed. In some cases, customers were able to prove they were not informed of that when they signed up for their policies.
The Missouri Department of Insurance claims since the mid-1990s, state regulators and class-action litigation nationally have secured hundreds of millions of dollars in policyholder awards for "vanishing premium" violations.
Texas insurance commissioner Jose Montemayor says some common sense can help protect you from "vanishing premium" or "churning" scams. "Ask yourself whether the agent has your best interest in mind or is just trying to get a higher commission," Montemayor says.
Churning and twisting
Once a policyholder has been paying into a whole life insurance policy for some time, its cash value builds up, making the policy more valuable. Some unscrupulous life insurance agents then convince their customers to use the built-up cash value of their existing policies to buy a "new, improved" policy - one with more coverage, different features, or a different payment schedule.
What these agents neglect to tell their customers is their existing policies are usually quite adequate for their needs, and when they use the built-up cash value to purchase a new policy, they start from square one in building up cash value in the new policy. This practice is called "churning" or "twisting." It's unethical - and illegal. Some agents churn because they earn a commission for each new policy they sell.
The fallout from churning isn't immediately apparent. A customer doesn't have to shell out any money up front because the built-up cash value of the existing policy pays the initial premiums of the new one. Once you use the cash value; however, it's gone.
Texas insurance commissioner Jose Montemayor says "churning" profits insurance agents at your expense. " If you bought the original policy at an earlier age, the new policy might cost more and offer less coverage. In addition, if you should die during the first two years of a new policy, the insurance company can contest claims for the death benefits," Montemayor warns. "Many companies pay larger commissions to agents for new policies than for renewals."
A policy's cash value is actual money the policyholder owns, although usually just on paper. Cash value can be used as security for a loan or converted into an annuity. If a policyholder decides to cancel a life insurance policy with built-up cash value, he's entitled to that money, minus the surrender charge.
Vanishing premiums
Life insurance companies take the money they collect in premiums and invest it - that's how they make their money. In the case of permanent life insurance policies such as whole life and universal life, companies then apply some of those investment earnings back to the value of your policy.
During the early 1980s, interest rates were high and it looked like they'd keep on climbing. So, life insurance companies projected the rate of return from investing today's policy premiums would eventually pay for any future premiums. Some agents told customers they would only have to pay premiums for a few years. The agents claimed returns on the insurance company's investments would pay for the policy after that.
As it turned out, those rosy projections weren't accurate. Interest rates fell, and customers who'd been told their policies would start paying for themselves kept getting bills in the mail. Angry policyholders protested, only to be told insurance company projections weren't guaranteed. In some cases, customers were able to prove they were not informed of that when they signed up for their policies.
The Missouri Department of Insurance claims since the mid-1990s, state regulators and class-action litigation nationally have secured hundreds of millions of dollars in policyholder awards for "vanishing premium" violations.
Texas insurance commissioner Jose Montemayor says some common sense can help protect you from "vanishing premium" or "churning" scams. "Ask yourself whether the agent has your best interest in mind or is just trying to get a higher commission," Montemayor says.
DYNAMIC LIFE AND AUTO INSURANCE : The Truth Behind Viatical Settlement Contracts
Viatical settlement contracts allow a person to sell their life insurance policy to a third party in exchange for a reduced amount of its face value. The amount you get back is dependent on your health, age, number of years your policy is in force, and death benefit. A major concern these days is that many life insurance settlement companies purposely try and mislead investors about what kind of return they should expect. They stretch the truth and play with numbers to make viatical settlement contracts sound like the best thing since sliced bread, but really, they are a gamble where you may risk your retirement nest egg on the odds of someone’s life expectancy.
Viatical settlement contracts are quite risky, so if you are considering purchasing a contract, you should approach it with caution. The U.S. Securities and Exchange Commission (SEC), whose mission statement says it functions to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, cannot regulate viaticals because they are not considered securities. States are working together more and more in an attempt to address the scam-artist issue when it comes to viatical settlement contracts, and many require viatical companies to be licensed.
One state that has taken a big step against fraudulent viatical contract activities is Florida. In Florida, viatical companies cannot “guarantee” investment returns, brokers are required to be licensed as life insurance agents, as well as to disclose transaction compensation, and if the company is in violation of viatical settlement provisions, they will be penalized.
What is being done to stop fraudulent viatical settlement companies
In an attempt to stop corruption, the SEC has a few suggestions when it comes to requirements for viatical companies:
* Make a full disclosure of all products
* Make a full disclosure of all their companies
* Financial statements for the company and the owners
* State risks associated with viaticals
* Make information available to investors
The Schemes
* Wet Ink. A 'wet ink' scheme is when a healthy person is persuaded by a viatical settlement company to apply for life insurance, then turns around, sells and receives a lump-sum payment. The policy is then resold to awaiting-investors. The ink is barely even dry before it’s sold off again. Wet ink schemes are another way to stimulate insurance fraud, as well as undermining the insurable interest rule.
* Clean Sheeting. 'Clean sheeting' is a term used to refer to terminally ill people who lie about their medical history to get approved for a life insurance policy. They apply for an amount barely under the limit before a medical exam is required and then once approved, sell the policy off.
Viatical settlement contracts in short
There is no guarantee when it comes to viatical settlement contracts. There are no guarantees on how much you will get back, not many regulations on them and also no data available to track and display the investment performance. A lack of control is what makes these types of investments so faulty—since some states have actual security regulators overseeing viaticals, and others just have the insurance department. As with all kinds of insurances, be sure to read the fine print and understand everything before signing off.
Viatical settlement contracts are quite risky, so if you are considering purchasing a contract, you should approach it with caution. The U.S. Securities and Exchange Commission (SEC), whose mission statement says it functions to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation, cannot regulate viaticals because they are not considered securities. States are working together more and more in an attempt to address the scam-artist issue when it comes to viatical settlement contracts, and many require viatical companies to be licensed.
One state that has taken a big step against fraudulent viatical contract activities is Florida. In Florida, viatical companies cannot “guarantee” investment returns, brokers are required to be licensed as life insurance agents, as well as to disclose transaction compensation, and if the company is in violation of viatical settlement provisions, they will be penalized.
What is being done to stop fraudulent viatical settlement companies
In an attempt to stop corruption, the SEC has a few suggestions when it comes to requirements for viatical companies:
* Make a full disclosure of all products
* Make a full disclosure of all their companies
* Financial statements for the company and the owners
* State risks associated with viaticals
* Make information available to investors
The Schemes
* Wet Ink. A 'wet ink' scheme is when a healthy person is persuaded by a viatical settlement company to apply for life insurance, then turns around, sells and receives a lump-sum payment. The policy is then resold to awaiting-investors. The ink is barely even dry before it’s sold off again. Wet ink schemes are another way to stimulate insurance fraud, as well as undermining the insurable interest rule.
* Clean Sheeting. 'Clean sheeting' is a term used to refer to terminally ill people who lie about their medical history to get approved for a life insurance policy. They apply for an amount barely under the limit before a medical exam is required and then once approved, sell the policy off.
Viatical settlement contracts in short
There is no guarantee when it comes to viatical settlement contracts. There are no guarantees on how much you will get back, not many regulations on them and also no data available to track and display the investment performance. A lack of control is what makes these types of investments so faulty—since some states have actual security regulators overseeing viaticals, and others just have the insurance department. As with all kinds of insurances, be sure to read the fine print and understand everything before signing off.
DYNAMIC LIFE AND AUTO INSURANCE : Your Life Insurance Company-How Good Is It?
Insurance companies keep tabs on you, and it is important that you keep tabs on them. If you see your insurance company in the news, be sure to find out why. It's important not only to concentrate on the policy you have, but also the company that provides it. The strength and stability of the company are important factors. To evaluate a company, you can use different tools offered by financial rating firms, industry associations like the Insurance Marketplace Standards Association (IMSA), or even your own state's insurance department.
What to look for
When you evaluate a life insurance company, remember these key points:
1. State licensing and complaints
Make sure the company is legally licensed to provide insurance in your city and state. You can check the Company's website for its license status or contact your state's insurance department to verify this information.
Each state has a different way of dealing with insurance companies and with complaints consumers file against them. Many compile a complaint report every year by tallying the total number of complaints and ranking them in relation to each company's market share. If you notice that many policyholders filed complaints against a certain life insurance company, you can check with your state insurance department to see why. Complaints can range from minor, such as a bad experience with an agent, to something more serious, like misrepresentation of a policy or problems with a claim. Keep in mind that a complaint may only prove that a customer was unhappy, not that the company did something wrong.
2. Financial strength ratings
Review your life insurance company's financial strength and stability ratings. Check with major rating companies, but remember that not all life insurance companies are rated by every service. There are five different ratings firms that issue financial strength ratings for insurance companies. They are Standard & Poor's, Fitch Ratings, A.M. Best, Moody's Investors Service, and TheStreet.com Ratings (formerly Weiss Ratings).
When a life insurance company is rated, the rating gauges its probable financial future. For example, if it receives a low rating, it generally means the company doesn't have many assets and/or financial reserves available. This could affect payment of claims or the life of the company. A financially troubled company could have trouble paying claims, or be sold or closed. It is a good idea to keep an eye on your life insurance company's ratings, because they can fluctuate at any time due to any number of circumstances. The typical fluctuations occur from bad financial decisions and investments, the loss of money, mergers, and even the news of a possible merger.
3. "Seal of Approval"
Throughout their history, life insurance industry officials have received great scrutiny from the press. As a way of strengthening public trust and support, a seal of approval called the Insurance Marketplace Standards Association (IMSA) designation was created.
IMSA membership shows that a company has passed a tough review of its practices and ethics. The assessment focuses mainly on marketing, sales, and customer service. To continue membership, a company must complete this test every three years. It should be noted that IMSA membership is a plus, not a reason to ignore other factors when considering a life insurance company.
What to look for
When you evaluate a life insurance company, remember these key points:
1. State licensing and complaints
Make sure the company is legally licensed to provide insurance in your city and state. You can check the Company's website for its license status or contact your state's insurance department to verify this information.
Each state has a different way of dealing with insurance companies and with complaints consumers file against them. Many compile a complaint report every year by tallying the total number of complaints and ranking them in relation to each company's market share. If you notice that many policyholders filed complaints against a certain life insurance company, you can check with your state insurance department to see why. Complaints can range from minor, such as a bad experience with an agent, to something more serious, like misrepresentation of a policy or problems with a claim. Keep in mind that a complaint may only prove that a customer was unhappy, not that the company did something wrong.
2. Financial strength ratings
Review your life insurance company's financial strength and stability ratings. Check with major rating companies, but remember that not all life insurance companies are rated by every service. There are five different ratings firms that issue financial strength ratings for insurance companies. They are Standard & Poor's, Fitch Ratings, A.M. Best, Moody's Investors Service, and TheStreet.com Ratings (formerly Weiss Ratings).
When a life insurance company is rated, the rating gauges its probable financial future. For example, if it receives a low rating, it generally means the company doesn't have many assets and/or financial reserves available. This could affect payment of claims or the life of the company. A financially troubled company could have trouble paying claims, or be sold or closed. It is a good idea to keep an eye on your life insurance company's ratings, because they can fluctuate at any time due to any number of circumstances. The typical fluctuations occur from bad financial decisions and investments, the loss of money, mergers, and even the news of a possible merger.
3. "Seal of Approval"
Throughout their history, life insurance industry officials have received great scrutiny from the press. As a way of strengthening public trust and support, a seal of approval called the Insurance Marketplace Standards Association (IMSA) designation was created.
IMSA membership shows that a company has passed a tough review of its practices and ethics. The assessment focuses mainly on marketing, sales, and customer service. To continue membership, a company must complete this test every three years. It should be noted that IMSA membership is a plus, not a reason to ignore other factors when considering a life insurance company.
DYNAMIC LIFE AND AUTO INSURANCE : Term Life Insurance vs. Permanent Life Insurance-Is Cash Value the Best Value?
If you're looking for life insurance, aside from considering how much you need, you'll find the need to understand and possibly choose between the two basic types: term life insurance and cash value life insurance.
The main difference between the two is that term life insurance covers you relatively inexpensively for a set period, whereas cash value life insurance covers you at a much higher cost for the remainder of your life. Cash value life insurance costs considerably more than term life insurance, depending on age and health, but adds a cash value component of debatable merit.
How do term and cash value life insurance work?
Term life insurance generally offers the most amount of coverage for the least amount of money, and is the appropriate choice for most people. The most common reason to buy life insurance is to replace a person's income in case of early death, and term life insurance is the cheapest and best way to do that. Term life insurance is also an especially good choice for people and families who are just starting out, because it's relatively cheap and provides a lot of protection when replacing income is most important.
Cash value life insurance, also called permanent or whole life insurance, offers protection for your entire life (as long as you pay your premiums) and more flexibility than term life insurance. However, it usually comes at a much higher price. For example, the premium for a cash value policy can easily be 10 or more times higher than a term policy with the same level of coverage. The feature that makes permanent life insurance different is its ability to gain cash value. A portion of the money you pay into your premium goes into a cash value portion that grows over time, and becomes available for your use after a certain period.
How does cash value work?
The portion of your payment that goes toward the policy's cash value is very large in the beginning, but decreases slowly as time goes on. That's because permanent life insurance payments are made up of two parts: the regular insurance premium, which is comparable to the premium amount for the same coverage in a term life policy, and the cash value, or "overpayment" amount. The overpayment money is invested by the insurance company and later used to pay for the higher costs of insurance as you get older. In this way, the company is able to keep your premiums the same instead of increasing them over time. At a certain time, this cash value amount becomes available for your use.
A very common way people use their cash value is by taking out a loan against their policy. This loan draws from the cash value amount and uses the face value (or death benefit) of the policy as collateral, and is usually not subject to credit checks. You don't have to pay it back, but the initial amount, plus interest, will be taken out of your death benefit if you die, resulting in a lower payout. Another consideration is that the loan amount may be taxable if it is worth more than what you have paid in premiums.
Although many insurance agents recommend cash value policies because of the ability to use the cash value portion, their tax-advantaged status, and their retirement and savings features, most people can gain these same advantages with other forms of retirement and savings without the drawbacks and high prices of cash value insurance. Also, remember that there are usually penalties, or "surrender charges" for canceling a cash value policy in its early years.
The cash value component of a policy can work differently and be used for different things depending on the type of permanent life insurance you choose. There are four main variations: whole (or ordinary) life, universal (or adjustable) life, variable life, and variable universal life.
Whole life insurance is a predictable policy that provides a guaranteed benefit, a guaranteed earnings rate on your cash value, and a level premium. You may also earn dividends based on how well the company performs. Whole life is the most basic kind of permanent life insurance.
Universal life insurance is a flexible option that lets you vary your premium payments. After the first premium, you can usually make payments at any time. If you have extra money, you can pay more. If you can't afford to make a payment, you can skip it or pay less. The cash value portion usually operates in a similar manner as with whole life insurance. A problem with universal life is that if you don't make enough payments, or the company does not perform as expected, your policy could lapse. Newer types of universal life policies include guarantees that this will not happen, so be sure that you explore this option. Universal life can be one of the cheapest forms of permanent life insurance.
Variable life insurance allows you to invest your policy premiums. The problem with this is that if the investments perform poorly, the death benefit and cash value will decrease. On the other hand, if the investments perform well, the death benefit and cash value can greatly exceed those of a normal policy. Variable life is one of the most risky forms of permanent insurance, although its rewards can be great as well.
Variable universal life insurance, as its name implies, is a combination of variable and universal life insurance. It allows you to vary your payments, invest your policy premiums, and vary your coverage amount. Variable universal life insurance is the most flexible type of permanent life insurance, and can be either risky or predictable, depending on how you use it.
Making the choice
Most financial planning experts recommend term life insurance in almost all circumstances. You could potentially benefit from a cash value life insurance policy, but it's very likely that you'll overpay for what you get in return. You can receive almost all the retirement and investment benefits of permanent life insurance through traditional means, such as a 401(k) account, IRAs, bonds, etc. Even if you can afford the premiums for cash value insurance, you're probably better off buying the same amount of term life insurance and investing the difference.
If you're still unsure, remember that many term life insurance policies offer a conversion feature. This option will allow you to change the term life policy to a permanent life policy, either during a set period or at any point in the term. Some policies even allow you to credit some of the term premiums you've already paid toward your permanent life insurance policy.
If you're ready to make your decision, remember that term life insurance is a relatively cheap way to get protection for a set period, and is almost always the better choice.
The main difference between the two is that term life insurance covers you relatively inexpensively for a set period, whereas cash value life insurance covers you at a much higher cost for the remainder of your life. Cash value life insurance costs considerably more than term life insurance, depending on age and health, but adds a cash value component of debatable merit.
How do term and cash value life insurance work?
Term life insurance generally offers the most amount of coverage for the least amount of money, and is the appropriate choice for most people. The most common reason to buy life insurance is to replace a person's income in case of early death, and term life insurance is the cheapest and best way to do that. Term life insurance is also an especially good choice for people and families who are just starting out, because it's relatively cheap and provides a lot of protection when replacing income is most important.
Cash value life insurance, also called permanent or whole life insurance, offers protection for your entire life (as long as you pay your premiums) and more flexibility than term life insurance. However, it usually comes at a much higher price. For example, the premium for a cash value policy can easily be 10 or more times higher than a term policy with the same level of coverage. The feature that makes permanent life insurance different is its ability to gain cash value. A portion of the money you pay into your premium goes into a cash value portion that grows over time, and becomes available for your use after a certain period.
How does cash value work?
The portion of your payment that goes toward the policy's cash value is very large in the beginning, but decreases slowly as time goes on. That's because permanent life insurance payments are made up of two parts: the regular insurance premium, which is comparable to the premium amount for the same coverage in a term life policy, and the cash value, or "overpayment" amount. The overpayment money is invested by the insurance company and later used to pay for the higher costs of insurance as you get older. In this way, the company is able to keep your premiums the same instead of increasing them over time. At a certain time, this cash value amount becomes available for your use.
A very common way people use their cash value is by taking out a loan against their policy. This loan draws from the cash value amount and uses the face value (or death benefit) of the policy as collateral, and is usually not subject to credit checks. You don't have to pay it back, but the initial amount, plus interest, will be taken out of your death benefit if you die, resulting in a lower payout. Another consideration is that the loan amount may be taxable if it is worth more than what you have paid in premiums.
Although many insurance agents recommend cash value policies because of the ability to use the cash value portion, their tax-advantaged status, and their retirement and savings features, most people can gain these same advantages with other forms of retirement and savings without the drawbacks and high prices of cash value insurance. Also, remember that there are usually penalties, or "surrender charges" for canceling a cash value policy in its early years.
The cash value component of a policy can work differently and be used for different things depending on the type of permanent life insurance you choose. There are four main variations: whole (or ordinary) life, universal (or adjustable) life, variable life, and variable universal life.
Whole life insurance is a predictable policy that provides a guaranteed benefit, a guaranteed earnings rate on your cash value, and a level premium. You may also earn dividends based on how well the company performs. Whole life is the most basic kind of permanent life insurance.
Universal life insurance is a flexible option that lets you vary your premium payments. After the first premium, you can usually make payments at any time. If you have extra money, you can pay more. If you can't afford to make a payment, you can skip it or pay less. The cash value portion usually operates in a similar manner as with whole life insurance. A problem with universal life is that if you don't make enough payments, or the company does not perform as expected, your policy could lapse. Newer types of universal life policies include guarantees that this will not happen, so be sure that you explore this option. Universal life can be one of the cheapest forms of permanent life insurance.
Variable life insurance allows you to invest your policy premiums. The problem with this is that if the investments perform poorly, the death benefit and cash value will decrease. On the other hand, if the investments perform well, the death benefit and cash value can greatly exceed those of a normal policy. Variable life is one of the most risky forms of permanent insurance, although its rewards can be great as well.
Variable universal life insurance, as its name implies, is a combination of variable and universal life insurance. It allows you to vary your payments, invest your policy premiums, and vary your coverage amount. Variable universal life insurance is the most flexible type of permanent life insurance, and can be either risky or predictable, depending on how you use it.
Making the choice
Most financial planning experts recommend term life insurance in almost all circumstances. You could potentially benefit from a cash value life insurance policy, but it's very likely that you'll overpay for what you get in return. You can receive almost all the retirement and investment benefits of permanent life insurance through traditional means, such as a 401(k) account, IRAs, bonds, etc. Even if you can afford the premiums for cash value insurance, you're probably better off buying the same amount of term life insurance and investing the difference.
If you're still unsure, remember that many term life insurance policies offer a conversion feature. This option will allow you to change the term life policy to a permanent life policy, either during a set period or at any point in the term. Some policies even allow you to credit some of the term premiums you've already paid toward your permanent life insurance policy.
If you're ready to make your decision, remember that term life insurance is a relatively cheap way to get protection for a set period, and is almost always the better choice.
DYNAMIC LIFE AND AUTO INSURANCE : Is Funeral Insurance for You?
Funeral insurance, also called burial or pre-need insurance, refers to a group of products intended to pay for final arrangements. Many people use funeral insurance as a way to ensure their funeral is arranged and paid for in advance, so the burden isn't left to their families or beneficiaries. It can also be used by parents to guarantee funeral funding for their children. The average cost of a funeral in 2007 was $6,500—with total costs reaching over $10,000—so a policy or contract to cover this expense can help provide peace of mind.
Three types of coverage for funeral expenses
There is no standard type of funeral insurance. The term funeral insurance describes any insurance policy or other legal contract purchased with the intent of providing for final expenses. The amount of funeral insurance coverage depends on how much you want final expenses to cost. In most states, the only people licensed to write a burial policy are life insurance agents and funeral directors.
Variations range from traditional whole life insurance to policies or agreements that only cover funeral expenses:
* Life insurance with family member as beneficiary—Many people who already have traditional life insurance simply purchase enough to include funeral expenses. But, if you do not have life insurance, you can purchase life insurance with the intention of using the proceeds to cover funeral expenses. You can name a family member as your beneficiary, and discuss your funeral plan with them.
* Life insurance with funeral director named as beneficiary—A funeral home may include a small whole life policy with a contract for funeral services, with the requirement that the funeral director is the beneficiary of the policy. In this way, you pay for part or all of your funeral expenses using a life insurance policy that you pay for—and the death benefit goes exclusively to the funeral home—not to your family.
* Pre-need contract with funeral home—A pre-need contract often covers the burial plot, grave marker, casket or urn, embalming or cremation, flowers and funeral cars. Some policies may not specify what the death benefit can be used for. In that case, the money can be used however the beneficiary decides.
Paying for funeral insurance
Depending on the type of policy or contract you buy, you may either have one, lump-sum payment, or continuing monthly payments. A contract with a funeral home will most likely include a payment plan.
Your coverage may determine what kind of payment schedule you have:
* Single-premium policy—Once you make the lump-sum payment, you have immediate coverage for the full death benefit. If you are over 70, you may only be offered a single-premium payment option.
* Graded death benefit—This means the coverage amount increases over time. If you choose a five-year payment policy, you may have a death benefit that is 30 percent of the face amount in the first year, 70 percent the next year, and 100 percent thereafter.
* Traditional whole life policy—The coverage amount stays the same as long as you pay the premiums, but coverage ends if you stop paying.
Tips for considering funeral insurance
* Determine whether you have life insurance or other savings that may be used for funeral expenses. Don't buy coverage that's not essential.
* Review your state's laws on pre-need insurance before you meet with a planner at a funeral home.
* Discuss a burial policy with your family and lawyer.
* Research different companies and options.
* Remember that insurance policies have a "free-look" period. This 30 to 60 day time period entitles you to review your policy and cancel it without penalty if you don't approve.
When you're ready to purchase
* Get all agreements in writing.
* Verify all licenses (insurance company and agent/funeral director).
* Be sure all documents are filled out in your presence. Never sign anything that has been altered or created without your consent.
* Ask your funeral director if they offer price guarantees, and if they don't, find out what their policy is.
* Be sure you have (in writing) that the services, arrangements and products that were sold to you or that you are agreeing upon are included in your pre-need plan.
* Check if funeral arrangements can be moved at any time to any funeral home—in case you move after buying your pre-need insurance.
* Find out if there is a policy cancellation fee or if you can be refunded for services and products if you do decide to cancel.
Use caution
Many states have given consumers added protection by creating laws that give them additional rights when it comes to pre-paying for funeral expenses. Some states ban the sale of some types of burial insurance policies, because many policyholders paid more in premiums than they got back in their death benefit. Others states created protections which prohibit checks to purchase burial insurance to be made out to the funeral home—they must be made out to the life insurance company. Some states specify that payments made ahead of time for pre-need contracts are placed into a fund which becomes your property and must be available to you at any time. Your state department of insurance is the best resource for local laws.
It is important to keep in mind that states felt the need to implement these protections because of significant problems with some types of pre-need contracts. For example, an irrevocable assignment transfers ownership of your contract to the funeral director, which means you cannot withdraw any payments you have made on this contract. Similarly, if you name the funeral director as the beneficiary of a life insurance policy for funeral benefits, the director is the only person authorized to spend the proceeds of your policy. Always be sure you understand the terms of the policy, and weigh the costs against the policy coverage.
Three types of coverage for funeral expenses
There is no standard type of funeral insurance. The term funeral insurance describes any insurance policy or other legal contract purchased with the intent of providing for final expenses. The amount of funeral insurance coverage depends on how much you want final expenses to cost. In most states, the only people licensed to write a burial policy are life insurance agents and funeral directors.
Variations range from traditional whole life insurance to policies or agreements that only cover funeral expenses:
* Life insurance with family member as beneficiary—Many people who already have traditional life insurance simply purchase enough to include funeral expenses. But, if you do not have life insurance, you can purchase life insurance with the intention of using the proceeds to cover funeral expenses. You can name a family member as your beneficiary, and discuss your funeral plan with them.
* Life insurance with funeral director named as beneficiary—A funeral home may include a small whole life policy with a contract for funeral services, with the requirement that the funeral director is the beneficiary of the policy. In this way, you pay for part or all of your funeral expenses using a life insurance policy that you pay for—and the death benefit goes exclusively to the funeral home—not to your family.
* Pre-need contract with funeral home—A pre-need contract often covers the burial plot, grave marker, casket or urn, embalming or cremation, flowers and funeral cars. Some policies may not specify what the death benefit can be used for. In that case, the money can be used however the beneficiary decides.
Paying for funeral insurance
Depending on the type of policy or contract you buy, you may either have one, lump-sum payment, or continuing monthly payments. A contract with a funeral home will most likely include a payment plan.
Your coverage may determine what kind of payment schedule you have:
* Single-premium policy—Once you make the lump-sum payment, you have immediate coverage for the full death benefit. If you are over 70, you may only be offered a single-premium payment option.
* Graded death benefit—This means the coverage amount increases over time. If you choose a five-year payment policy, you may have a death benefit that is 30 percent of the face amount in the first year, 70 percent the next year, and 100 percent thereafter.
* Traditional whole life policy—The coverage amount stays the same as long as you pay the premiums, but coverage ends if you stop paying.
Tips for considering funeral insurance
* Determine whether you have life insurance or other savings that may be used for funeral expenses. Don't buy coverage that's not essential.
* Review your state's laws on pre-need insurance before you meet with a planner at a funeral home.
* Discuss a burial policy with your family and lawyer.
* Research different companies and options.
* Remember that insurance policies have a "free-look" period. This 30 to 60 day time period entitles you to review your policy and cancel it without penalty if you don't approve.
When you're ready to purchase
* Get all agreements in writing.
* Verify all licenses (insurance company and agent/funeral director).
* Be sure all documents are filled out in your presence. Never sign anything that has been altered or created without your consent.
* Ask your funeral director if they offer price guarantees, and if they don't, find out what their policy is.
* Be sure you have (in writing) that the services, arrangements and products that were sold to you or that you are agreeing upon are included in your pre-need plan.
* Check if funeral arrangements can be moved at any time to any funeral home—in case you move after buying your pre-need insurance.
* Find out if there is a policy cancellation fee or if you can be refunded for services and products if you do decide to cancel.
Use caution
Many states have given consumers added protection by creating laws that give them additional rights when it comes to pre-paying for funeral expenses. Some states ban the sale of some types of burial insurance policies, because many policyholders paid more in premiums than they got back in their death benefit. Others states created protections which prohibit checks to purchase burial insurance to be made out to the funeral home—they must be made out to the life insurance company. Some states specify that payments made ahead of time for pre-need contracts are placed into a fund which becomes your property and must be available to you at any time. Your state department of insurance is the best resource for local laws.
It is important to keep in mind that states felt the need to implement these protections because of significant problems with some types of pre-need contracts. For example, an irrevocable assignment transfers ownership of your contract to the funeral director, which means you cannot withdraw any payments you have made on this contract. Similarly, if you name the funeral director as the beneficiary of a life insurance policy for funeral benefits, the director is the only person authorized to spend the proceeds of your policy. Always be sure you understand the terms of the policy, and weigh the costs against the policy coverage.
DYNAMIC LIFE AND AUTO INSURANCE : Love, Marriage, and Insurance
Getting married is more than a union of lives and souls. It's also a union of financial responsibilities! Insurance needs are going to change when you get married, so make sure that you review your policies and get the most of out of your insurance—after all, it's an important part of protecting your new life together.
Car Insurance
Make sure to inform your auto insurance company or agent that you are married, because many auto insurance companies offer discounted rates for married couples. You may want to get quotes from both of your companies—and maybe some new ones when you're ready to merge your coverage. A multi-car policy could start saving you money right away—and check for other discounts like a low-mileage discount, if you carpool. Lastly, if you and your spouse will be driving each other's cars before you combine your coverage onto one policy, makes sure there's coverage for each of you as a permissive operator. You agent can help with that one.
Life Insurance
Life insurance might be the next thing to consider as you start your life together. Life insurance helps your spouse financially in the event of your death by covering debts you may have incurred, and is equally important to have if you are considering having children or even buying a new home. Discuss how much life insurance you need as a couple today, and make sure to regularly review your needs. Even if buying a life policy isn't in this year's budget, you can learn about the different types of life insurance for the future.
Health Insurance
Evaluate your health insurance plans, and decide if it's going to be better to keep individual plans, or make a change. For example, if you have a good employer-sponsored health insurance plan, it may be more cost effective to move your spouse over to your plan (or vice versa). You'll need to consider long-term plans as well as your immediate needs, if you're planning on starting a family. If you're a student, there are often health plans available on campus. And, if you have no coverage at all, you may want to consider a high deductible plan—just to have coverage for a major event.
Additional Homeowners Coverage
If you've just moved in together, or bought a new house, you'll quickly discover that you have a lot more stuff than before—and that doesn't even include wedding gifts, new furniture or wedding rings. Make sure that all your belongings are covered under your homeowners policy, and if you need to get additional coverage, don't delay too long.
It's important to note that homeowners insurance and renter's insurance, though they do protect the physical structure of your home and its possessions, they don't always cover jewelry or other expensive "one-off" items. Your homeowners insurance agent or insurance company, will be able to determine what kind of insurance coverage is best for your valuables, and may determine if a rider is needed on your homeowners policy to cover your valuables, such as jewelry.
Another factor you should discuss with your homeowners insurance agent when applying for your rider policy is whether the extension provides "actual cash value" or "replacement cost coverage." Though replacement cost coverage is more expensive than actual cash value, it provides more coverage because actual cash value factors in depreciation for the item. This means you will only be paid back what the item was worth at the time it was stolen or damaged, not the price you initially paid for it.
Car Insurance
Make sure to inform your auto insurance company or agent that you are married, because many auto insurance companies offer discounted rates for married couples. You may want to get quotes from both of your companies—and maybe some new ones when you're ready to merge your coverage. A multi-car policy could start saving you money right away—and check for other discounts like a low-mileage discount, if you carpool. Lastly, if you and your spouse will be driving each other's cars before you combine your coverage onto one policy, makes sure there's coverage for each of you as a permissive operator. You agent can help with that one.
Life Insurance
Life insurance might be the next thing to consider as you start your life together. Life insurance helps your spouse financially in the event of your death by covering debts you may have incurred, and is equally important to have if you are considering having children or even buying a new home. Discuss how much life insurance you need as a couple today, and make sure to regularly review your needs. Even if buying a life policy isn't in this year's budget, you can learn about the different types of life insurance for the future.
Health Insurance
Evaluate your health insurance plans, and decide if it's going to be better to keep individual plans, or make a change. For example, if you have a good employer-sponsored health insurance plan, it may be more cost effective to move your spouse over to your plan (or vice versa). You'll need to consider long-term plans as well as your immediate needs, if you're planning on starting a family. If you're a student, there are often health plans available on campus. And, if you have no coverage at all, you may want to consider a high deductible plan—just to have coverage for a major event.
Additional Homeowners Coverage
If you've just moved in together, or bought a new house, you'll quickly discover that you have a lot more stuff than before—and that doesn't even include wedding gifts, new furniture or wedding rings. Make sure that all your belongings are covered under your homeowners policy, and if you need to get additional coverage, don't delay too long.
It's important to note that homeowners insurance and renter's insurance, though they do protect the physical structure of your home and its possessions, they don't always cover jewelry or other expensive "one-off" items. Your homeowners insurance agent or insurance company, will be able to determine what kind of insurance coverage is best for your valuables, and may determine if a rider is needed on your homeowners policy to cover your valuables, such as jewelry.
Another factor you should discuss with your homeowners insurance agent when applying for your rider policy is whether the extension provides "actual cash value" or "replacement cost coverage." Though replacement cost coverage is more expensive than actual cash value, it provides more coverage because actual cash value factors in depreciation for the item. This means you will only be paid back what the item was worth at the time it was stolen or damaged, not the price you initially paid for it.
DYNAMIC LIFE AND AUTO INSURANCE : Promissory Notes: What You Should Know When Investing
Though promissory notes may be sold with some life insurance policies, it is important to be wary of promissory note scams which claim "high returns for a minimal investment." Remember to use good common sense and close scrutiny when evaluating claims made by promissory note sales agents. "If it sounds too good to be true, it probably is," warns Insurance.com Vice President Sam Belden. To help protect you and your investment when it comes to promissory notes, Insurance.com has listed some helpful tips below:
* If you are being pressured into making an immediate decision about buying promissory notes, there's probably something wrong—you should never be forced to make a split-second decision when it comes to your finances.
* You've heard the phrase "don't put all your eggs in one basket," and the same goes with your savings. It's not a good idea to put all your savings into one type of investment.
* If the investment sold is stamped "guaranteed" and it's from an off-shore insurance company, that should raise a red flag that something is fishy. Be sure to verify that the bonding company is legitimate.
* If the investment sold is stamped "guaranteed" or "no-risk" and advertises a high return-rate, also beware.
* If the promissory notes have a maturity of less than one year and have an above-market rate, be suspicious.
* Research the company you are buying the promissory notes from. Check with the state securities regulator and make sure they are properly registered—or that they are legally exempt from registration if not.
* Check up on your insurance agent. Most agents are required to be licensed by the state and the Financial Industry Regulatory Authority (FINRA) in order to sell promissory notes.
* If you are being pressured into making an immediate decision about buying promissory notes, there's probably something wrong—you should never be forced to make a split-second decision when it comes to your finances.
* You've heard the phrase "don't put all your eggs in one basket," and the same goes with your savings. It's not a good idea to put all your savings into one type of investment.
* If the investment sold is stamped "guaranteed" and it's from an off-shore insurance company, that should raise a red flag that something is fishy. Be sure to verify that the bonding company is legitimate.
* If the investment sold is stamped "guaranteed" or "no-risk" and advertises a high return-rate, also beware.
* If the promissory notes have a maturity of less than one year and have an above-market rate, be suspicious.
* Research the company you are buying the promissory notes from. Check with the state securities regulator and make sure they are properly registered—or that they are legally exempt from registration if not.
* Check up on your insurance agent. Most agents are required to be licensed by the state and the Financial Industry Regulatory Authority (FINRA) in order to sell promissory notes.
DYNAMIC LIFE AND AUTO INSURANCE : Mortgage Protection Insurance Offers Limited Benefits
Mortgage protection insurance refers to a type of decreasing term life insurance policy where you pay a non-changing premium for the duration of your mortgage. If you die while the policy is in effect, the insurance pays off your mortgage. The lender can become the beneficiary of the policy if the borrower paying for the policy defaults on the loan.
Mortgage protection insurance cost factors
If the outstanding balance of your mortgage is high, your premium will be high as well, and your premium will remain the same even as the balance decreases. This is because you are more likely to die as time goes on, increasing the likelihood that your life insurance company will have to pay on your policy.
Mortgage protection insurance can be purchased either at the same time you buy a home, or at any time in the future. As with other types of life insurance, your age, smoking status and value of your death benefit (the amount left on your mortgage) are taken into account when a life insurance company reviews your application and sets a price.
Mortgage insurance options
Mortgage protection insurance policies will only pay the balance of your mortgage at the time of your death (or maybe a little more if you paid ahead on your mortgage). If you want to give your beneficiaries a choice of how to use the insurance money, consider level term life insurance instead. A regular decreasing term life policy—one not marketed as a "mortgage protection" policy—can be used for the same purpose, and may also cost less.
Depending on your insurance company, joint mortgage protection insurance may be available that covers both you and your spouse and pays out when either of you die.
If you refinance, see if a new policy will get you a better premium. If you default on your mortgage, check with your life insurance company and see if they will extend your coverage.
Mortgage protection insurance and private mortgage insurance
Though they have similar names, these two types of insurance are not related. Private mortgage insurance (PMI) is typically required by the lender when you purchase a house and make a down payment of less than 20%. "Lenders take a risk when a buyer puts down less than 20%," says Sam Belden, Vice President at Insurance.com. "Private Mortgage Insurance is a way for lenders to protect themselves if a buyer didn't put much down and ends up in foreclosure."
Although PMI makes it easier for you to get a loan and can help you get a house without waiting to build up savings, it pays the lender, not you. It does not reduce the amount of money you owe the lender. It is not a substitute for life insurance or mortgage protection insurance, which will pay off all or most of your mortgage in the event of your death.
Mortgage protection insurance cost factors
If the outstanding balance of your mortgage is high, your premium will be high as well, and your premium will remain the same even as the balance decreases. This is because you are more likely to die as time goes on, increasing the likelihood that your life insurance company will have to pay on your policy.
Mortgage protection insurance can be purchased either at the same time you buy a home, or at any time in the future. As with other types of life insurance, your age, smoking status and value of your death benefit (the amount left on your mortgage) are taken into account when a life insurance company reviews your application and sets a price.
Mortgage insurance options
Mortgage protection insurance policies will only pay the balance of your mortgage at the time of your death (or maybe a little more if you paid ahead on your mortgage). If you want to give your beneficiaries a choice of how to use the insurance money, consider level term life insurance instead. A regular decreasing term life policy—one not marketed as a "mortgage protection" policy—can be used for the same purpose, and may also cost less.
Depending on your insurance company, joint mortgage protection insurance may be available that covers both you and your spouse and pays out when either of you die.
If you refinance, see if a new policy will get you a better premium. If you default on your mortgage, check with your life insurance company and see if they will extend your coverage.
Mortgage protection insurance and private mortgage insurance
Though they have similar names, these two types of insurance are not related. Private mortgage insurance (PMI) is typically required by the lender when you purchase a house and make a down payment of less than 20%. "Lenders take a risk when a buyer puts down less than 20%," says Sam Belden, Vice President at Insurance.com. "Private Mortgage Insurance is a way for lenders to protect themselves if a buyer didn't put much down and ends up in foreclosure."
Although PMI makes it easier for you to get a loan and can help you get a house without waiting to build up savings, it pays the lender, not you. It does not reduce the amount of money you owe the lender. It is not a substitute for life insurance or mortgage protection insurance, which will pay off all or most of your mortgage in the event of your death.
DYNAMIC LIFE AND AUTO INSURANCE : Talking to Your Parents About Insurance
Are your parents adequately protected against financial loss? What if your parents' home burns down and there is insufficient insurance to cover the entire loss—can they come live with you? What if one of your parents is held liable for someone's injuries, but does not have liability insurance—will he or she be financially ruined? What if a parent becomes seriously ill and needs long-term care—will he or she have the financial resources to pay for care? What if one of your parents dies unexpectedly—will the surviving parent have enough money?
If you're a member of the baby-boom generation, your parents may be of an age where these concerns may be troubling you. The only way to get the answers and ease your worries is to have a heart-to-heart talk with your mother and father. This may not be easy for some people, but if you shy away from this topic, the consequences could be devastating. Your parents were there to talk to you about the tough issues—now you need to be there for them. How you choose to approach them will depend on the type of relationship you share (e.g. adversarial, open and warm). Here are some tips on how to break the ice:
Prepare for resistance
Your parents may find inquiries regarding insurance intrusive, regardless of the fact that you're trying to help. They may feel it's none of your business, or that it's demeaning for you to assume they haven't made the proper arrangements. Be prepared to explain that you're simply concerned about their well-being and don't mean to be nosy or presumptuous.
Keep it private
A discussion about insurance involves issues that are personal. Broaching the subject in a restaurant or other public setting is inappropriate. Keep the conversation private, and choose a setting where your parents feel comfortable—at their own kitchen table over a cup of coffee, for instance. Also, don't rush the conversation. Even though you shouldn't expect to finish or resolve anything during the initial exchange, be sure you've set aside enough time to comfortably address everyone's concerns.
There's safety in numbers
If you have siblings, encourage a group discussion. If your parents see that all of you feel the same, they may be more open to speaking freely and considering your advice. If that's not possible, at least talk to your siblings about your parents' situation. Of course, if you have a sibling who is particularly good at rubbing your parents the wrong way, then perhaps you will want to exclude him or her from the discussion.
Be direct
Sometimes, the best approach is to put all your cards on the table from the get-go. If this is an option for you, find the right time and place, then just say, "Mom and Dad, we need to talk..."
The "I have a friend" approach
If a more subtle method is to your liking, you might describe an experience (real or hypothetical) that illustrates the consequences of not being adequately insured. For example, you could say something like: "Joe's father went into a nursing home a few years ago. His father didn't have long-term care insurance, so now Joe has to sell his father's house."
Discuss your own plans
Another indirect strategy is to talk about your own insurance needs or plans. Once the discussion is under way, you can steer the subject in the direction of your parents' insurance needs.
Ask for their advice
Parents are used to giving advice to their kids, not getting it from them. Start by asking them what they think you should do about a particular insurance issue. For example, you might ask if they think you should increase your life insurance now that a grandchild has been born, or drop the collision coverage on your 10-year-old car. From there, you can divert the topic to their own insurance needs.
Ask a simple question
Another "lead-in" approach involves asking a seemingly innocent question, such as: "Who is your insurance agent?" or "do you keep your insurance policies in case of an emergency?" Whatever answer your parents give will be an opening for you to ask other questions that are on your mind.
Bring in the big guns
Perhaps not during the first discussion, but at some point in time you may want to make an appointment with your (or your parents') insurance agent for an evaluation of your parents' insurance situation and needs.
Be patient
Realize that this process takes time. Your parents may need to think things over, and it may take several discussion sessions to work out all the details.
Follow your parents' wishes
Finally, remember that just because your parents have agreed to let you help doesn't mean that you can take charge and do things your own way. You should act only when and how your parents want you to.
Issues to talk about
Once you have successfully begun a dialog with your parents about insurance, make sure you cover all the pertinent issues. Here are some you should not miss:
* What policies do they currently have?
* Do they have policies they no longer need?
* Do they need policies they don't have?
* What are the details of their current policies?
* Do their current policies provide adequate coverage? Too much coverage?
* How much can they afford to pay for premiums?
* If there are beneficiaries, are the proper persons named? Have the proper designation forms been completed?
* Who should be responsible for paying the premiums, you or your parents?
* Where are the policies kept?
* Who is their insurance agent?
In addition, make sure you address each type of insurance that may be important for your parents, which may include:
* Health insurance
* Long-term care insurance
* Life insurance
* Homeowners insurance
* Auto insurance
* Disability insurance (though this may not be important unless your parents have job earnings to replace)
If you're a member of the baby-boom generation, your parents may be of an age where these concerns may be troubling you. The only way to get the answers and ease your worries is to have a heart-to-heart talk with your mother and father. This may not be easy for some people, but if you shy away from this topic, the consequences could be devastating. Your parents were there to talk to you about the tough issues—now you need to be there for them. How you choose to approach them will depend on the type of relationship you share (e.g. adversarial, open and warm). Here are some tips on how to break the ice:
Prepare for resistance
Your parents may find inquiries regarding insurance intrusive, regardless of the fact that you're trying to help. They may feel it's none of your business, or that it's demeaning for you to assume they haven't made the proper arrangements. Be prepared to explain that you're simply concerned about their well-being and don't mean to be nosy or presumptuous.
Keep it private
A discussion about insurance involves issues that are personal. Broaching the subject in a restaurant or other public setting is inappropriate. Keep the conversation private, and choose a setting where your parents feel comfortable—at their own kitchen table over a cup of coffee, for instance. Also, don't rush the conversation. Even though you shouldn't expect to finish or resolve anything during the initial exchange, be sure you've set aside enough time to comfortably address everyone's concerns.
There's safety in numbers
If you have siblings, encourage a group discussion. If your parents see that all of you feel the same, they may be more open to speaking freely and considering your advice. If that's not possible, at least talk to your siblings about your parents' situation. Of course, if you have a sibling who is particularly good at rubbing your parents the wrong way, then perhaps you will want to exclude him or her from the discussion.
Be direct
Sometimes, the best approach is to put all your cards on the table from the get-go. If this is an option for you, find the right time and place, then just say, "Mom and Dad, we need to talk..."
The "I have a friend" approach
If a more subtle method is to your liking, you might describe an experience (real or hypothetical) that illustrates the consequences of not being adequately insured. For example, you could say something like: "Joe's father went into a nursing home a few years ago. His father didn't have long-term care insurance, so now Joe has to sell his father's house."
Discuss your own plans
Another indirect strategy is to talk about your own insurance needs or plans. Once the discussion is under way, you can steer the subject in the direction of your parents' insurance needs.
Ask for their advice
Parents are used to giving advice to their kids, not getting it from them. Start by asking them what they think you should do about a particular insurance issue. For example, you might ask if they think you should increase your life insurance now that a grandchild has been born, or drop the collision coverage on your 10-year-old car. From there, you can divert the topic to their own insurance needs.
Ask a simple question
Another "lead-in" approach involves asking a seemingly innocent question, such as: "Who is your insurance agent?" or "do you keep your insurance policies in case of an emergency?" Whatever answer your parents give will be an opening for you to ask other questions that are on your mind.
Bring in the big guns
Perhaps not during the first discussion, but at some point in time you may want to make an appointment with your (or your parents') insurance agent for an evaluation of your parents' insurance situation and needs.
Be patient
Realize that this process takes time. Your parents may need to think things over, and it may take several discussion sessions to work out all the details.
Follow your parents' wishes
Finally, remember that just because your parents have agreed to let you help doesn't mean that you can take charge and do things your own way. You should act only when and how your parents want you to.
Issues to talk about
Once you have successfully begun a dialog with your parents about insurance, make sure you cover all the pertinent issues. Here are some you should not miss:
* What policies do they currently have?
* Do they have policies they no longer need?
* Do they need policies they don't have?
* What are the details of their current policies?
* Do their current policies provide adequate coverage? Too much coverage?
* How much can they afford to pay for premiums?
* If there are beneficiaries, are the proper persons named? Have the proper designation forms been completed?
* Who should be responsible for paying the premiums, you or your parents?
* Where are the policies kept?
* Who is their insurance agent?
In addition, make sure you address each type of insurance that may be important for your parents, which may include:
* Health insurance
* Long-term care insurance
* Life insurance
* Homeowners insurance
* Auto insurance
* Disability insurance (though this may not be important unless your parents have job earnings to replace)
DYNAMIC LIFE AND AUTO INSURANCE : Personal Or Commercial Car Insurance, Which Is Right For You ?
If, like many Americans, your family car is also used for purposes that could be considered commercial use, you may want to steer yourself into a chair and look over your insurance policy.
You'll need to consider buying a commercial policy or making sure that your existing personal auto policy covers the vehicle for business use. Whether or not you need a commercial policy depends on how you use your vehicle and what company you have it insured with. Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.
If you're not sure whether business use is covered on your personal policy, it's important to call your insurance company or agent. The Progressive Group of Insurance Companies has put together these four questions you may want to ask:
• How do companies determine "commercial use"? One definition could include "engaging in transporting goods for compensation or a fee," which includes pizza or newspaper delivery, catering, door-to-door consulting services, landscaping or snowplowing services, logging business, day care/church van services or farm-to-market delivery. People who do these kinds of work should consider purchasing a commercial vehicle policy.
• Do you need more liability coverage than a personal auto policy provides? Generally, a commercial auto policy offers higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
• Do you need special coverage for situations encountered while conducting business? Commercial auto policies usually offer these coverages, and they're normally not available with personal auto policies. These include hired and nonowned auto coverage and coverage for towing a trailer for business use.
• Do you need to list any employees as drivers? Commercial auto policies allow you to list anyone that you employ. You don't have that option with a personal auto policy. In general, you'll need commercial auto coverage if the vehicle you use is owned by a corporate partnership or driven by employees, or if it's used to haul tools or equipment weighing more than 500 pounds, make deliveries or heavy enough to require state or federal filings.
You'll need to consider buying a commercial policy or making sure that your existing personal auto policy covers the vehicle for business use. Whether or not you need a commercial policy depends on how you use your vehicle and what company you have it insured with. Every company has different guidelines and may surcharge for business-use coverage on a personal auto policy.
If you're not sure whether business use is covered on your personal policy, it's important to call your insurance company or agent. The Progressive Group of Insurance Companies has put together these four questions you may want to ask:
• How do companies determine "commercial use"? One definition could include "engaging in transporting goods for compensation or a fee," which includes pizza or newspaper delivery, catering, door-to-door consulting services, landscaping or snowplowing services, logging business, day care/church van services or farm-to-market delivery. People who do these kinds of work should consider purchasing a commercial vehicle policy.
• Do you need more liability coverage than a personal auto policy provides? Generally, a commercial auto policy offers higher limits of liability, but less or no coverage in areas that are typically not associated with commercial auto risks.
• Do you need special coverage for situations encountered while conducting business? Commercial auto policies usually offer these coverages, and they're normally not available with personal auto policies. These include hired and nonowned auto coverage and coverage for towing a trailer for business use.
• Do you need to list any employees as drivers? Commercial auto policies allow you to list anyone that you employ. You don't have that option with a personal auto policy. In general, you'll need commercial auto coverage if the vehicle you use is owned by a corporate partnership or driven by employees, or if it's used to haul tools or equipment weighing more than 500 pounds, make deliveries or heavy enough to require state or federal filings.
DYNAMIC LIFE AND AUTO INSURANCE : Classic Car Insurance Quotes Online-find The Right Firm For Your Classic Car
You're looking for classic car insurance quotes online? The truth is, it's generally much more difficult to get classic car insurance than regular insurance, because of several different difficulties. First of all, classic cars are much harder to value than a regular car.
The money you get for a classic car in the event of an accident or a theft is generally the value you agree upon with the insurance company. Also, a classic car is much more likely to be targeted by car thieves, which puts a much higher risk level on the classic car insurance company.
With that said, it certainly is possible to find class car insurance quotes online. Here are some tips to help you find the best one before you get started.
The most crucial part of finding the best classic car insurance company for your auto is to look around and be patient. There are certainly numerous companies nowadays that will offer insurance for your classic cars, but all firms are not created equal.
Keep in mind, many of the big name insurance companies will not even deal in the classic car insurance arena, because of the high risk involved. Therefore, you usually will have to focus on companies that focus exclusively on the classic car insurance area.
Keep this in mind when looking: very likely, you will have to match up with certain criteria before you can obtain classic car insurance. Here are some of the most common: you very often need to be at least 25 years of age, have at least 10 years of driving experience, and a great driving record.
Due to the high risk of the cars involved, many of the companies are quite choosy about who they select to insure. If you don?t match one company's criteria, however, don't lose hope. Keep looking, and you will almost certainly find a company you can obtain insurance with, albeit at a higher price.
The best place to start looking is the internet for classic car insurance quotes. Trying to call each company can be somewhat of a hassle, and the internet can instantly provide you with literally hundreds of results at the click of a button.
One final tip: when searching for classic car insurance quotes online, always try to find a company that has many years of experience dealing in the classic car insurance arena. Don?t go with some fly by night company you?ve never heard of before.
The money you get for a classic car in the event of an accident or a theft is generally the value you agree upon with the insurance company. Also, a classic car is much more likely to be targeted by car thieves, which puts a much higher risk level on the classic car insurance company.
With that said, it certainly is possible to find class car insurance quotes online. Here are some tips to help you find the best one before you get started.
The most crucial part of finding the best classic car insurance company for your auto is to look around and be patient. There are certainly numerous companies nowadays that will offer insurance for your classic cars, but all firms are not created equal.
Keep in mind, many of the big name insurance companies will not even deal in the classic car insurance arena, because of the high risk involved. Therefore, you usually will have to focus on companies that focus exclusively on the classic car insurance area.
Keep this in mind when looking: very likely, you will have to match up with certain criteria before you can obtain classic car insurance. Here are some of the most common: you very often need to be at least 25 years of age, have at least 10 years of driving experience, and a great driving record.
Due to the high risk of the cars involved, many of the companies are quite choosy about who they select to insure. If you don?t match one company's criteria, however, don't lose hope. Keep looking, and you will almost certainly find a company you can obtain insurance with, albeit at a higher price.
The best place to start looking is the internet for classic car insurance quotes. Trying to call each company can be somewhat of a hassle, and the internet can instantly provide you with literally hundreds of results at the click of a button.
One final tip: when searching for classic car insurance quotes online, always try to find a company that has many years of experience dealing in the classic car insurance arena. Don?t go with some fly by night company you?ve never heard of before.
DYNAMIC LIFE AND AUTO INSURANCE : Car Insurance Claim Settlement Insights
How the liability system actually works, in the world of insurance claims, is a joke because what America’s motor vehicle law’s are supposed to accomplish often has little (if anything) to do with reality!
DEFINING NEGLIGENCE AND FAULT: Negligence, for the purpose of a motor vehicle insurance claim settlement, can be defined as weather the motorist allegedly held at fault for an accident did that which he should have done (or not have done) resulting in harm or injury to you the claimant.
The concept of “Negligence” is based on a various legal doctrine’s of “The Law“. By those doctrine‘s, it’s held that a “reasonable man” has an obligation to exercise a certain degree of care and diligence and when he fails to uphold that duty (and if it should result in harm or injury to another’s body or property) it’s a legitimate reason for the harmed or injured party to be “made whole” again. That is, to be compensated with money for his “damages” by the party that caused them. In short, the term “Negligence” (especially when applied to motor vehicle accident claim cases) refers to a level of conduct or behavior that fall’s below the acceptable standard established by “The Law” for the protection of others against harm.
Thus, in motor vehicle accident liability situations the determination of whether a given motorist is “negligent” is based on the judging party’s assessment of two fundamental questions: #1. Did the given motorist do what a prudent person would have done (and would have been expected to do) in a similar situation as the one at issue? #2. Would a prudent person, acting with due care, have avoided the accident and/or injury that occurred?
These two may read and sound good - - but in reality they're pure hogwash!
HOW NEGLIGENCE IS SUPPOSED TO INFLUENCE YOUR ABILITY TO COLLECT: Under prevailing law governing motor vehicle accident matters in most states (with the exception of true no-fault states), the concept of negligence is of critical significance since the amount of your recovery (and/or your entitlement to any in the first place) will depend upon the degree of your contribution to the accident.
An assumption of “The Law“, which governs how much money the injured victim is going to be awarded, is that the accident represents harm done by one person to another. The decision as to whether there had been negligence (who is at fault) should always involve careful consideration of the circumstances of a given accident, and what a normal prudent person would have done.
There is allegedly a direct connection between the level of your “negligence” and your right to be compensated. The doctrine of negligence or fault, is supposed to be fundamental in motor vehicle accident insurance claims settlements but the gut question is: "HOW DOES THE SYSTEM ACTUALLY OPERATE IN THE REAL WORLD OF DAY-TO-DAY PRACTICE WITHIN THE FRAMEWORK OF THE INSURANCE CLAIMS INDUSTRY"?
The answer to that is: "It’s rarely a consideration"!
IN SUMMARY: In the real world of claims settlement “Compromise” (which has absolutely nothing to do with “The Law“) is more often than not the order of the day.
It’s commonly accepted among claims professionals (because it makes their work life so much easier) is that in any given case there’s almost always a likelihood of a payment. What this boils down to, in the world of insurance claims, is this: Irregardless of “The law“, practically no claim is without merit or totally lacking in value (especially if that value is to “get ride of it” - - because it’s taking up the time of several employees, their filing cabinets, offices, and/or specific areas, of the insurance company). After having spent 38 years on that firing line I must tell you, "That concept bubbles and boils, all day long, under every member of the claim team and has absolutely nothing to do with The Law“.
A tiny compromise is more often than not the order of the day: Especially in cases of questionable liability, but only if that compromise will position the insurance company so they can steal the claim for less money than it would cost them if an attorney took on your case and it dragged on, for a loooong period of time, to a bitter end.
But, one way or the other (as to your responsibility for the accident) the fact that you’re at fault, weather you are or not, will be heaped on you by the adjuster to reduce his settlement offer of your claim. Unfortunately, he’s often very successful in this subterfuge, which is nothing less than legal larceny, and because you (in total and bitter frustration) call it quits, pack it in and give up the chase.
QUESTION: "Is that The Law in action"?
ANSWER: "Hardly"!
It’s only when faced with a determined claimant, who is willing to wait and haggle and won’t go away, that the adjuster handling your case will finally be told, by his immediate supervisor, “Look, I’m sick and tired of seeing this same case come up on diary, crossing my desk again and again, month after month.” In other words he wants his adjuster to dump it.
Take it from Dan Baldyga who was on that firing line for 38 years as an Adjuster, Supervisor, Claims Manager and Trial Assistant - - adjusters are normally assigned 50 to 100 new claims a month. That means, just to stay even, they must close that many each month.
The Claims Individual (directly over him) to avoid the ever present problem of being buried alive with cases piling up on his desk one on top of the other, finally tells his adjuster, “Get rid of it".
This he would rather do than have it gathering moth balls, heaping frustration on all those associated with the case and maybe even having you (the claimant who refuses to disappear) to become so agitated and disappointed that the case ends up, one day down the road, in litigation.
This scenario has nothing to do with the theory and philosophy of negligence law. What it comes down to is a mockery of “The Law”, by the insurance claims industry, in their effort to manipulate a payment so they can close a case as cheap as humanly possible.
All of them are motivated by the same general thought, “To hell with the law, get rid of it and let’s move on”!
DEFINING NEGLIGENCE AND FAULT: Negligence, for the purpose of a motor vehicle insurance claim settlement, can be defined as weather the motorist allegedly held at fault for an accident did that which he should have done (or not have done) resulting in harm or injury to you the claimant.
The concept of “Negligence” is based on a various legal doctrine’s of “The Law“. By those doctrine‘s, it’s held that a “reasonable man” has an obligation to exercise a certain degree of care and diligence and when he fails to uphold that duty (and if it should result in harm or injury to another’s body or property) it’s a legitimate reason for the harmed or injured party to be “made whole” again. That is, to be compensated with money for his “damages” by the party that caused them. In short, the term “Negligence” (especially when applied to motor vehicle accident claim cases) refers to a level of conduct or behavior that fall’s below the acceptable standard established by “The Law” for the protection of others against harm.
Thus, in motor vehicle accident liability situations the determination of whether a given motorist is “negligent” is based on the judging party’s assessment of two fundamental questions: #1. Did the given motorist do what a prudent person would have done (and would have been expected to do) in a similar situation as the one at issue? #2. Would a prudent person, acting with due care, have avoided the accident and/or injury that occurred?
These two may read and sound good - - but in reality they're pure hogwash!
HOW NEGLIGENCE IS SUPPOSED TO INFLUENCE YOUR ABILITY TO COLLECT: Under prevailing law governing motor vehicle accident matters in most states (with the exception of true no-fault states), the concept of negligence is of critical significance since the amount of your recovery (and/or your entitlement to any in the first place) will depend upon the degree of your contribution to the accident.
An assumption of “The Law“, which governs how much money the injured victim is going to be awarded, is that the accident represents harm done by one person to another. The decision as to whether there had been negligence (who is at fault) should always involve careful consideration of the circumstances of a given accident, and what a normal prudent person would have done.
There is allegedly a direct connection between the level of your “negligence” and your right to be compensated. The doctrine of negligence or fault, is supposed to be fundamental in motor vehicle accident insurance claims settlements but the gut question is: "HOW DOES THE SYSTEM ACTUALLY OPERATE IN THE REAL WORLD OF DAY-TO-DAY PRACTICE WITHIN THE FRAMEWORK OF THE INSURANCE CLAIMS INDUSTRY"?
The answer to that is: "It’s rarely a consideration"!
IN SUMMARY: In the real world of claims settlement “Compromise” (which has absolutely nothing to do with “The Law“) is more often than not the order of the day.
It’s commonly accepted among claims professionals (because it makes their work life so much easier) is that in any given case there’s almost always a likelihood of a payment. What this boils down to, in the world of insurance claims, is this: Irregardless of “The law“, practically no claim is without merit or totally lacking in value (especially if that value is to “get ride of it” - - because it’s taking up the time of several employees, their filing cabinets, offices, and/or specific areas, of the insurance company). After having spent 38 years on that firing line I must tell you, "That concept bubbles and boils, all day long, under every member of the claim team and has absolutely nothing to do with The Law“.
A tiny compromise is more often than not the order of the day: Especially in cases of questionable liability, but only if that compromise will position the insurance company so they can steal the claim for less money than it would cost them if an attorney took on your case and it dragged on, for a loooong period of time, to a bitter end.
But, one way or the other (as to your responsibility for the accident) the fact that you’re at fault, weather you are or not, will be heaped on you by the adjuster to reduce his settlement offer of your claim. Unfortunately, he’s often very successful in this subterfuge, which is nothing less than legal larceny, and because you (in total and bitter frustration) call it quits, pack it in and give up the chase.
QUESTION: "Is that The Law in action"?
ANSWER: "Hardly"!
It’s only when faced with a determined claimant, who is willing to wait and haggle and won’t go away, that the adjuster handling your case will finally be told, by his immediate supervisor, “Look, I’m sick and tired of seeing this same case come up on diary, crossing my desk again and again, month after month.” In other words he wants his adjuster to dump it.
Take it from Dan Baldyga who was on that firing line for 38 years as an Adjuster, Supervisor, Claims Manager and Trial Assistant - - adjusters are normally assigned 50 to 100 new claims a month. That means, just to stay even, they must close that many each month.
The Claims Individual (directly over him) to avoid the ever present problem of being buried alive with cases piling up on his desk one on top of the other, finally tells his adjuster, “Get rid of it".
This he would rather do than have it gathering moth balls, heaping frustration on all those associated with the case and maybe even having you (the claimant who refuses to disappear) to become so agitated and disappointed that the case ends up, one day down the road, in litigation.
This scenario has nothing to do with the theory and philosophy of negligence law. What it comes down to is a mockery of “The Law”, by the insurance claims industry, in their effort to manipulate a payment so they can close a case as cheap as humanly possible.
All of them are motivated by the same general thought, “To hell with the law, get rid of it and let’s move on”!
DYNAMIC LIFE AND AUTO INSURANCE : Car Insurance Tips
Dealing with the ins and outs of auto insurance can be very tricky and confusing. The following recommendations could help you figure out some of the more complicated points of auto insurance:
• You must determine the appropriate coverage. Half of your auto insurance bill will cover liability and that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you have a clean driving record, you would think you would pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage.
• Shop around for insurance. In most states, there are hundreds of insurers competing for business, so it’s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers. Do some work with your insurance provider to get more than one quote. It pays you to shop around, especially if you feel you’ve been paying too much.
• Look for insurance discounts. Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance. Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices.
• Consider taking a higher deductible. You could lower your insurance bill by increasing your deductible. But make sure you can pay the higher deductible if you file a claim.
• Look into “stacking” coverage if you file an insurance claim. Stacking uninsured/underinsured motorist coverage means that you can collect from more than one of your auto insurance policies. Most states prohibit this, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation. Check your insurance contract to see if it's allowed. You will more than likely pay a higher insurance premium if you have stacked coverage. It could be 10% to 30% more depending on the litigious nature of the state in which you reside.
• Check with your insurance provider BEFORE buying a car. Your premium is based in part on the car’s sticker price, the cost to repair it, its safety record and the likelihood of theft. Avoid shopping by price alone. You want an agent and a company that answer your questions and handle claims fairly and efficiently.
• Notify the insurance company as soon as you change companies. You need to cancel your old policy on the same day, but don’t cancel your old policy until you’ve lined up a new contract. It’s important because some states like New York will fine you for the number of days you go without insurance. Most auto insurers specify that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.
• Pick the insurance payment option that best fits your budget. Most companies will give you the ability to pay over time, but that comes at a price. Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. The more you break down your payments, the more the cost adds up.
• You must determine the appropriate coverage. Half of your auto insurance bill will cover liability and that has to do with how you are going to use the vehicle, such as for commuting to work and your driving record. If you have a clean driving record, you would think you would pay less for insurance than you would if you had a speeding ticket on your record. You can control the other half of your premium which covers damage or loss to your vehicle, comprehensive and collision coverage.
• Shop around for insurance. In most states, there are hundreds of insurers competing for business, so it’s possible to save hundreds of dollars by obtaining quotes from different auto insurance providers. Do some work with your insurance provider to get more than one quote. It pays you to shop around, especially if you feel you’ve been paying too much.
• Look for insurance discounts. Many insurers will give you a discount if you buy two or more types of insurance from them, for example auto and home insurance. Ask about discounts for air bags, anti-lock brakes, daytime running lights and anti-theft devices.
• Consider taking a higher deductible. You could lower your insurance bill by increasing your deductible. But make sure you can pay the higher deductible if you file a claim.
• Look into “stacking” coverage if you file an insurance claim. Stacking uninsured/underinsured motorist coverage means that you can collect from more than one of your auto insurance policies. Most states prohibit this, but there are about 19 states that either allow stacking or don't address the issue either through legislation or litigation. Check your insurance contract to see if it's allowed. You will more than likely pay a higher insurance premium if you have stacked coverage. It could be 10% to 30% more depending on the litigious nature of the state in which you reside.
• Check with your insurance provider BEFORE buying a car. Your premium is based in part on the car’s sticker price, the cost to repair it, its safety record and the likelihood of theft. Avoid shopping by price alone. You want an agent and a company that answer your questions and handle claims fairly and efficiently.
• Notify the insurance company as soon as you change companies. You need to cancel your old policy on the same day, but don’t cancel your old policy until you’ve lined up a new contract. It’s important because some states like New York will fine you for the number of days you go without insurance. Most auto insurers specify that you can terminate your policy any time you want by informing your company in writing about the date you wish that coverage be terminated or you can do that over the phone.
• Pick the insurance payment option that best fits your budget. Most companies will give you the ability to pay over time, but that comes at a price. Your payment could increase a few dollars each time you pay by installment. Insurers can accept payments monthly, quarterly, or every six months, what ever is most convenient for you. The more you break down your payments, the more the cost adds up.
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