Insurance – Auto, Life, Home Owner, Health

None of us knows how much time we have left on this planet. The good news is that your chances of living longer have never been better. Most people nowadays are likely to live to around 75 to 80 years of age. The bad news? You can never forecast when you're going to be hit by a bus or succumb to a mystery virus.

So you should always make sure there is sufficient life insurance and cover against your succumbing to a serious illness or losing your livelihood that you can provide for your family.

So you should always make sure there is sufficient life insurance and cover against your succumbing to a serious illness or losing your livelihood that you can provide for your family. Life insurance won't replace you, but it will replace your money-earning capacity.

As well as buying life cover, you can purchase critical illness policies that pay out a lump sum if you have a serious illness, such as a heart attack or cancer, and survive for a month. Some policies also pay if you die during the policy period. The same huge range of prices exists, so never, ever go for the first quote you get.

Some policies, known as permanent health insurances or income protection plans, promise to pay a monthly sum until your normal retirement age if you can't work due to illness or injury. These policies can be expensive, especially for women because insurers think women are ill a lot more often than men.

So how much life insurance should one have?

This will depend upon the factors - your age, the number of dependents you have, your income and your outstanding debts.

People with young families need life insurance more than people in their forties and fifties whose children have left the family home. For a young family, the loss of a parent could mean that the surviving partner must try to maintain the family's standard of living for 18 years or until the youngest child becomes independent. So a realistic level of life insurance cover is a must. For parents in their forties and fifties protection is still important, although cover does not have to be so extensive.

The more dependents you have, the more cover you need. However, insurance bought to cover the cost of bringing up your children should be timed to end when they become self-supporting, usually at 18.

The level of replacement income your partner will need if you die will be an important factor when determining the amount of cover required.

If you die, it is imperative that your surviving partner is not left with a financial millstone such as a large mortgage. Life insurance should clear such debts in the even of your death.

If I take out life insurance, will I need to have a medical?

Not necessarily. You may be asked a few medical questions when you complete the insurer's application form. If the insurer needs further details, it may consult your doctor or ask you to have a medical. If you have suffered from illness in the past or are excessively overweight, your premiums may be increased to reflect the greater risk you represent to the insurance company. In some cases an insurer may refuse cover altogether.

The world's largest insurer is looking at "options" after it's stock fell 45 percent in a week's time, and even 18 percent in one day. AIG has netted losses of about $18,000,000,000 over the last three quarters, linking its problems to credit default swaps tied to the present crisis in the subprime mortgage market.

Robert Wilumstad, who took over as AIG's cheif executive in June, has implied that he is willing to shed some of the company's less profitable ventures, stating "We are conducting a comprehensive review of all AIG's businesses with the objectives of improving results, reducing AIG's risk profile and protecting our capital base."

The good news for AIG insurance customers is that this downturn has not affected the quality of the AIG insurance franchise. The bad news, however, is that this is obviously not over. After raising $20 billion dollars two months ago, analysts say it still may not be enough for the financial giant to recover its loss. AIG is also reportedly seeking $40 billion dollars in emergency funds to help the company avoid a credit rating downgrade, which would make it EVEN HARDER for the company to raise money. The problems don't seem to be ceasing soon, as investors are becoming increasingly fearful of bailing out tumbling high-dollar stocks.

The bigger effect on the economy and the unemployment rate seems imminent, as the situation can be summed up by chief executive Wilumstead's words from about a month ago, "a less complex AIG would be a better competitor." What will happen remains to be seen, an announcement is expected later in September.

In this environment it is fair for families to question whether or not the insurance that they have paid into for years and years will be there when they need it. The upheaval of the financial services industry which sparked the demise of Bear Stearn's, Lehman Brothers, Fannie Mae, Freddie Mac Merrill Lynch and AIG, the first insurer to go off the board, is sparking fear amongst the owners of insurance policies and it is quite understandable.

While Senator's Obama and McCain are running around trying to make political hay from the situation by blaming this person or that for the problems we find ourselves in, many of us are looking for real answers to real questions that will affect our lives and our families. We're not looking for a promise to do this or that that will probably be forgotten in a week or two.

So lets clear a few things up.

State laws are designed to protect the interest of policyholders first, before investors. The number one job of state insurance regulators is to make sure that the insurance companies that operate within their state are financially sound. If there is the possibility that a company will not be able to fulfill the promises it made to it's policy holders, the regulators will step in.

The regulators have numerous actions they can take to prevent failures. This includes taking over management of the insurance company through a conservation or rehabilitation order with the goal of being able to get the company back into a strong financial position.

Claims from individual policyholders are given priority over other creditors. In the event that there is not enough money in the insurance companies accounts to pay a claim, the state has a safety net in place to protect the consumer and it's called the state guaranty fund.

Every state has a fund of this type. Insurance companies pay for the fund with a fee of 1-2% of the net insurance it sells in that state. So every state is different. If an insurance company is unable to pay a claim, the guaranty fund will pay instead subject to certain limits. These limits are different for every state but upon investigation $300,000 for property casualty and $500,000 for life insurance and annuity contracts seem to be the norm.

Each state has its own plan though and it can vary substantially from those limits I mentioned above. For instance, some states don't cover annuity benefits at all, and some do. Some may have a limit per person, or a limit per policy so someone may own three policies and get paid for all three.

It is important to remember that these do not replace your current policy, more so back up your policy with another type of substitute coverage. If you have a $2,000,000 life insurance policy, you may only collect $500,000 if the state is required to use the state guaranty fund to pay you.

Client's assets invested in variable annuity separate accounts are not subject to creditors and are segregated by law and protected although still subject to market performance.

Fixed annuity accounts and all fixed products are invested in the insurer's general account and subject to creditors. These assets may be used upon the approval of state regulators for liquidity concerns of the insurance company.

Death benefits on both annuities and life insurance are funded in part by the insurers' general account and may be reduced if the insurer goes into receivership.

If there was ever a time to educate yourself about your state's policies for paying a claim from the state's guaranty fund, it is now. Insolvency is an unfortunate reality. Things may calm down or may get worse. I will not be the one to predict that, but I want all to understand that when it comes to your ability to collect a claim from a troubled insurance company, your state has an option and it's best to understand your states particular rules and claims paying practices.

Boat insurance is a necessity not luxury. It protects you from several problems and ensures that the boat is protected too.

The field of marine or boat insurance offers many policies and it is important for you to choose the right policy and coverage.

Before investing in boat insurance you should think about:

1. The kind of coverage you want. Jot down details like type of boat, year of manufacture, no of owners, use and so on as well as record. Go through various insurance company profiles online and offline to locate leading insurers who do offer insurance coverage for the model of boat you own.

2. Once you have a list of insurance companies then contact then online or offline or through authorized agents. Ask for a brochure and policy draft so that you can determine aspects like coverage, facilities, premiums, and so on.

3. Make a comparison of at least 3-4 insurance policies. Compare costs as well as coverage. This will help you locate a policy for the boat that offers maximum coverage for an affordable sum.

4. Take the help of a customer care person or insurance agent. They will be able to get you the most suitable insurance policy for your boat. Since, they will be able to match your personal needs to insurance coverage offered by companies.

5. Know what coverage the kind of boat you own needs. Log on to the World Wide Web and educate yourself on boat insurance, deductibles, ways to get savings and more. Even something as simple as clean driving record, safe parking of boat could get you extensive savings on boat insurance.

6. Find out what agreed value/stated value; actual cash value; and exclusions and deductibles mean and how hey affect you.

7. Ask about umbrella policy. Umbrella policies are affordable around USD 150-500 per million.

8. Most policies define navigation limits. Understand what it means as well as terminology like brown water and blue water.

9. Ask about state and area limitations this will restrict use of the boat to certain areas.

10. Buy a boat insurance policy from a company that has a good rating and is known to practice fair business norms.

To enjoy ownership of a boat you need to ensure that your insurance policy works for you and that your interests and the boat are well protected.

The internet has several websites that are insurance directories. These showcase leading insurance companies as well as a wide range of boat insurance policies. There are online tools that enable users to get multiple quotes for boat insurance and to compare insurance products. Articles and boat insurance tips are hosted to educate boat owners. These sites are user friendly and will answer questions and clarify doubts for no fee.

So before purchasing boat insurance you must know what your options are and get the most comprehensive insurance coverage for the lowest cost possible.

It can be a thoroughly baffling business conducting your own motor insurance search for the best buy. Although it is a very competitive market, and this means that there is a clamour of providers all claiming to offer the best deals in motor insurance, the sheer number of insurers and the proliferation of different insurance packages makes choosing a potentially hit-and-miss affair. This is when an experienced, professional insurance broker can come to the rescue and help you make an informed and reasoned choice - ensuring you get not only the insurance cover you need, but also the best value for money into the bargain.

The first thing an insurance broker will need to establish is the best type of car insurance that best suits your needs. If the vehicle is old, worth very little and you simply cannot afford any better insurance, then the discussion with the broker can be kept very short as you opt for the cheapest possible, most basic, third party cover. This will ensure that you meet the minimum legal requirement for insurance - your liabilities for any injuries you cause others (including passengers in your own car) and damage to third party property will be adequately covered.

The search can be similarly short and straight forward if you need the slightly wider protection offered by cover against the risks of third party, fire and theft claims - which means that you would at least be compensated up to the value of your vehicle if it is lost or damaged through fire or theft.

The insurance broker will truly come into his own, however, if your search is for fully comprehensive motor insurance. Since there are more than a hundred companies offering comprehensive motor insurance, each with a number of different packages and each package offering various optional extras. A successful search, in this case, relies on your deciding just what elements you are likely to need.

The principal feature of comprehensive insurance, of course, is that it offers protection for a considerably wide range of risks, even when the loss or damage has been caused by the policy holder's own fault. Therefore, this will cover accidental damage to your own car, including the loss of or damage to any personal possessions left in the vehicle; personal accident benefit for serious injuries you might sustain in an accident; and cover for any medical expenses you incur.

Although these are the core benefits generally included in all forms of comprehensive cover, it is important to remember that insurers differ with respect to the maximum levels of benefit payable and to the additional features available under the policy. Some of these might be optional extras, for which an additional premium will be payable, and could include: no claims discount protection; the provision of a courtesy car if your own needs to be taken to a garage for repairs or following a theft; breakdown or roadside assistance; legal expenses cover or even an extension of the insurance cover while driving abroad.

With a selection from so many variables, therefore, a motor insurance search for the comprehensive cover that suits you, your car and your particular needs could well benefit from the advice of an experienced insurance broker.

It's not just California insurance customers-all insurance consumers are constantly seeking ways to lower their insurance costs. The rub is this: with lower premiums come reduced services, more complicated plans, and higher out-of-pocket deductibles and co-pays. These factors can combine to make life most complex when you need it to be the simplest-in the wake of a traumatic accident or severe illness. Due to these complications, many California insurance consumers opt to stick it out with higher premiums, choosing convenience over financial wisdom.

One of the positive developments of the past decade has been a vehicle designed to assist Americans in their quest for medical self-management and lower insurance prices.Health Savings Accounts (HSAs) are a relatively new development in the California insurance market, allowing consumers to accumulate tax-free savings toward the resolution of future medical problems. These plans link a low-premium, high-deductible insurance plan to a tax-free health savings account, which is directed by the account owner, rather than an insurance bureaucrat in an office miles away. Over three million Americans are already taking advantage of these new insurance plans, happy with a choice that finally offers financial wisdom and convenience.

Each year, holders of HSAs can contribute $2900 for individuals or $5800 for families. These contributions are completely tax-free, as are the earnings they produce. And as long as any withdrawals are used for documented, legitimate medical expenses, they are tax-free as well. That fact remains true even if the withdrawals are used for alternative or preventive measures that most standard health insurance policies don't cover.

And HSAs are employer-independent, following the policyholder from job to job and from the workforce into retirement, completely eliminating the hassle and nervousness of suffering through "probationary periods" every time a career change necessitates a difference insurance policy.