Have you Reviewed your Homeowners Insurance Policy Lately?

Posted on June 3, 2010 by Author

We’re all guilty of it. We get our homeowners insurance policy, pay the monthly premium, and then forget about it.  However, this may not be the best strategy, as it’s usually not very pleasant to find out that you’re not properly insured until a crisis happens.

It is important, regardless of where you live in the country, to take the time to review your homeowner’s insurance policy on a yearly basis. It doesn’t take long, and it could save you big in the event of a catastrophe.

Here’s what you’ll need to do:

  • Make sure you have the coverage needed. It is important to review your policy each year to ensure that your home and your possessions are adequately covered in the event of a disaster. In other words, make sure your policy covers you in the event of a total loss.

  • Pay close attention to policy limits and exclusions. Not all homeowner’s insurance policies are created equal, so check your policy to make sure that the exclusions and policy limits of your policy are reasonable and that your deductible is manageable.

  • Don’t assume your homeowner’s insurance policy covers all natural disasters. Ask your homeowners insurance company about natural disasters, such as floods and hurricanes. If your policy doesn’t cover these disasters (most don’t), take out another policy that will.

  • Update your home’s inventory. It is always best to have an updated inventory of the contents of your home in case you need to file a claim with your insurance company. It is often convenient to videotape the rooms of your home and narrate the contents, including their dates of purchase and their purchase price. Then, keep the video somewhere safe; preferably in a fireproof safe or safe deposit box.

  • Search several websites to ensure that you are still getting the best price for your homeowner’s insurance policy. But remember, cheaper isn’t always better! Take care to make sure that you are receiving a competitive rate on your policy, and that the company your policy is under is reputable and financially stable.
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Life Insurance and the Stay-At-Home Parent

Posted on June 2, 2010 by Author

As tradition once had it, mom stayed home and took care of the kids and saw to the house chores while dad was out making the bacon. In the modern age,  a change is taking place, and we are seeing a role reversal with some dads staying home as house husbands while the wife plays the role of  breadwinner.

It really does not matter which parent stays home, if this is how the family chooses to live. Obviously, they have the income to do so, and the kids get plenty of TLC and attention. It’s not like the stay-at-home parent doesn’t work. In fact, they have a pretty tiring and often difficult job, albeit with no monetary compensation. Still, stay-at-home parents work at it day after day as taxi drivers, housekeeper, laundry attendant, cook, confidante, comforter and even as teacher of life’s values as well as education, in the case of those who homeschool.

When it comes to life insurance, the spouse who does not work outside the home is often uninsured or under insured.

Insuring Your Stay-At-Home Spouse

These days, it’s a given that any family with children should carry some level of life insurance, just in case the unimaginable occurs. Unfortunately, a lot of families make sure to insure the working spouse while leaving the other with little to no coverage. This is acceptable, right? After all, if the non-working spouse happens to die an early death, there’s no income lost.  Unfortunately, This is a terrible assumption to make. There are plenty of reasons why you need to make sure that your non-working spouse has adequate life insurance coverage.

Your spouse provides a valuable service, taking care of the household needs, the child care, and often so much more. How will you handle this loss? Can you afford to pay someone to handle the chores and daycare or are you going to try and do it all yourself while still working a full-time job?  Adequate life insurance can help pay these expenses, at least until the kids are out of school or at an age where they can look after themselves and help out with the household tasks.

What about the kids? They have lost an important part of their lives. They may have emotional problems, and if attention is not paid, this could lead to trouble later on. In this case, you may find that you need to take some time off work to be there for the kids. The life insurance benefits can help to keep things going during this time, and if the kids need professional therapy, well, it can help with this too.

For the sake of your family, it is best to ensure that both parents are adequately covered by life insurance.

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The Risk of Life Insurance Company Failure

Posted on June 1, 2010 by Author

Life insurance companies are a business, like any other. We count on life insurance to be there for our families in the worst time of their lives. The idea that your life insurance company could fail is a harrowing thought.  It is possible for a life insurance company to go under. Fortunately, it isn’t common, and the risk is low.

Why Low Risk?

There is really only a handful of life insurance companies that have ever failed. The biggest and the best are reputable companies who have proven their worth and their staying power. While the risk of insurance company failure is low, the smart consumer will always know the possibility does exist, even if unlikely to actually occur. The best protection you can afford yourself and your family is to recognize the possibility and know in advance what to do should this eventuality befall you.

What to do Should Your Life Insurance Company Fail

If the unlikely does occur, it is important for you to know what to do. Should your life insurance company unexpectedly fail or you see the signs that it’s heading in that direction, you need to be aware of what comes next. First, your state is going to try and help the insurance company to save itself. If this action fails, the state will take over, liquidating the company’s assets.

The good news is that most states have a guarantee association that will protect policy holders. Typically, you will be covered up to $100K. You might lose any benefits that exceed this, but your policy will be bought, and you can reinvest in another life insurance plan, should you choose to do so. It is also an excellent idea to put a good portion of said money aside for the inevitable; allotting even more financial protection for your family.

The best defense is a god offense. The first thing you should do is to choose a reliable and reputable insurance company to begin with. Little known hole-in-the wall companies can be a great success, but are also just as likely to face failure. If you are happy with your company, but don’t feel you have adequate protection or are afraid of what might happen in the future, you can always choose to carry multiple policies with different companies.

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Fender Bender? What to Do

Posted on May 31, 2010 by Author

Everyone knows its common sense not to just drive off after a car accident. However, some people do just that, and you’d be surprised how many people don’t quite know the correct protocol following a wreck. Here are the dos and don’ts that can help you and the other persons involved to get help, have your damages paid for and avoid unnecessary entanglements with the law.

  • Never leave the scene of an accident. Whether you hit a parked car or were involved in a serious fender bender with others on the road, stay put.
  • Check to see if anyone was injured. If so, call for medical help immediately.
  • If it is a parked car, try to find the owner somewhere in the vicinity. If you can not locate the car’s owner, take responsibility by reporting the accident and ensuring your insurance and vital information is available to the owner. Leaving a note with your contact info is a good idea.
  • Assess the damage of each vehicle involved and exchange insurance and other important information with the other drivers. You also need to get license plate and VIN numbers, and it is a good idea to ask to see driver’s licenses and registrations. Do not give false information. This could easily land you in hot water.
  • This is not the time for you and the other party or parties to squabble. Save the story for the police. You and the other persons need to be concerned with damages, injuries and gathering information.
  • Be sure to get the names, addresses and phone numbers, as well as other contact info for any other passengers in the involved vehicles and any witnesses at the crash site.
  • Call the police. In some places, they may not come to every accident, depending on the seriousness, but typically they do show up. Your insurance company and that of the others is going to want a police report.
  • Videotape or photograph everything immediately. Use a camera phone or digital camera, if on hand. For those who do not own either of these, keeping a disposable camera handy is a great idea. Document the position of the cars, all damage done and any location landmarks and present obstacles.
  • Notify your insurance company and that of the other involved party, should they be at fault, to ensure that all claims are handled in a timely manner.
  • Get a handful of written estimates for damage repair. The insurance company is going to want to see a price range and will choose the most inexpensive route they can. If your car is totaled, you might simply receive the current cash value of your particular car. When it comes to your own policy, know the details, especially exclusions.
  • If the damages exceed $750.00, you will have to report the accident to your state’s Department of Motor Vehicles within 10 days. Failure to do so could find you without a license to drive.
  • Don’t sign any statements between you and the other party regarding fault or promise of payment or anything releasing the other party from further liability if they have promised to pay something. Let the insurance company handles this. That’s their job, after all. You could wind up paying more than you are liable for if you enter into such and agreement without the mediation of your insurance provider.
  • After filing your claim, follow-up. You want to be kept up to speed and the insurance company should not take long to get in touch with you. However, if you feel they are not getting on the ball, so to speak, contact your state’s Department of Insurance right away.

So, you had an accident. You don’t want it to affect your life for years to come, any more than it has to. Following this protocol will save you a lot of time, money,  hassle and headache and unnecessary  legal problems too.

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Health Insurance: What to Look for in an Ideal Policy

Posted on May 28, 2010 by Author

Health insurance is a vital part of anyone’s  insurance portfolio. A good policy should contain some standard basics and additional perks. These are what make certain health insurance policies ideal; better than the other guys. Unfortunately, many plans today fall short of being ideal. Some even fall short of being remotely useful. Health insurance is an investment in your health and your life. You will want to get the most out of the policy you purchase. Here is what to look for:

The Basics

The basic anatomy of an ideal health insurance policy should include the following:

International Coverage

Injuries and illness can occur anytime, anywhere. If you’re ever out of the country, you certainly do not want to put your health and life at risk because you don’t have the medical coverage.

Affordable Annual Deductible

Whatever your policy maxes out at for out-of-pocket expenses, be sure it is an amount you can afford. Having an out-of-pocket deductible that you can not pay is comparable to not having insurance at all, as the insurance company won’t cover everything, and might not cover anything until the deductible is met.

Maximum Coverage

Find yourself a policy with no set limits. You really do not want one where the coverage can be exhausted. You never know what life will bring you way, and you want to be well-prepared, even for the worst possible scenario. If you can not find a limitless policy, try obtaining one that allows $1 Million per claim or $2 Million per lifetime, which is still more than you will probably need. It’s better to be safe than sorry.

No Referral Required

Why should you and your family have to see one doctor just to beg for a referral for treatment from a specialist because your primary care physician is not equipped to handle what ails you? You should be able to pick up the telephone and make an appointment without a lot of extra hassle. Health issues are hassle enough!

Coverages

A good health insurance policy will cover physician expenses, hospital expenses, surgical expenses and major medical, a high maximum benefit for those unexpected medical problems. These should also include very little out-of-pocket costs, comparatively speaking.

Perks

Depending on where you are in life and what you might be planning in the future, there are some additional perks that make a health insurance policy ideal. Not all policies will include everything, and of course, you won’t want a perk you won’t be using. Still, it’s great to have the option.

Preventative Care

Prevention is better than a cure, so you will certainly want a policy that allows for regular check-ups and screenings.

Mental Health

If you have a need for psychiatric care or therapy or there is a history of such things within your family or your spouse’s family, this is a good policy provision to have… you know, just in case.

Prescriptions

With the exception of certain generics, Rx drugs can cost an arm and both legs. The average American certainly can not afford this. Since not every medication on the market has a cheap generic version and some doctors do prefer to prescribe name brands, save you money and your health by ensuring your plan covers prescriptions.

Maternity Coverage

Planning to start a family? Maternity coverage is a smart move. It costs a lot of money to have a baby, let alone to raise one. You don’t want to get started on the wrong foot with a newborn and a ton of sky-high medical bills too.

Vision & Dental

Your eyes and your teeth are two parts of your body that you really want to take care of. Unfortunately, these are often ignored or taken care of only when the person has the cash or credit to pay for service. Vision and dental coverage can eliminate the procrastination and help you to get the regular check-ups you need.

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Life Insurance and the Importance of Choosing a Beneficiary

Posted on May 27, 2010 by Author

Life insurance is a gift; a monetary legacy you leave behind to help your loved ones at the time of your unfortunate demise. It is one of the kindest things you can do for your family, setting them up for the future. Without life insurance, debts could go unpaid and your family could find themselves struggling just to get by. This can be a difficult and stressful situation, especially if financial stability was what they were used to prior to your death. Hopefully, there is some savings to fall back on, but life insurance is a smart move in addition to any other assets that exist.

Your Beneficiary

Choosing a beneficiary is not a task one should take lightly. You need to give this careful thought and consideration. If you are in a strong marriage, your spouse is the obvious choice. If your spouse is no longer living or you are divorced when you take out your policy, you might consider adding one or all of your children as beneficiaries. Practice caution with this. You want the benefits to go to a responsible person. However, singling out one child could cause family conflict, unless all is discussed and explained openly. Even then, there could be issues.

If your children are young, consider seeing to it that the money is put into a trust that they can take ownership of when they are of a certain age. The money can then be overseen by a trustworthy trustee, to help take care of their needs until they are old enough to take care of themselves.

For those without children or a spouse, you can choose a friend or other family member or even a charity to name as your beneficiary. The choice is yours. So long as you trust the person and they had nothing to do with your cause of death, benefits will be paid out shortly after your death is verified. Then, it is up to the beneficiary to decide how the money will be used. Hopefully, it is used to pay off your final expenses, any remaining debts and then the remainder of the money can be used for other purposes.

Fine Details

Keep your life insurance policy updated. Make sure you have the coverage that will be needed in the end. See to it that the information for contacting your beneficiary is always up to date, including and social security or necessary identification numbers (as in the case of a charitable organization). Otherwise, the benefits might not wind up being paid as planned.

Because life can be so unexpected, you need to ensure that as life changes, the beneficiary is always up to date. Unfortunately, the beneficiary you name could pass on before you, a relationship could end, etc. You want top be prepared, so always stay on top of things.

Choosing a beneficiary is an important part of owning a life insurance policy. consider your options carefully and choose wisely.

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Hazardous Occupation Life Insurance

Posted on May 26, 2010 by Author

Hazardous occupation life insurance is obviously not for all of us. While sitting behind a desk, meeting deadlines and dealing with hassles can often be stressful and feel like a hazard, your life is not really on the line. However, there are people out there who risk their lives every day, working dangerous and difficult jobs that they often love very much. For those in these occupations, hazardous occupation life insurance is important if you have a family and the bills have got to be paid.

What Kind of Job is Considered a Hazardous Occupation?

Construction, roofing, major manufacturing, anything requiring climbing to heights or heavy lifting. If you do road work or electrical work, you will want to consider hazard insurance. Those working with heavy equipment will also want this insurance too.

It goes without saying that those in law enforcement, the medical field and those who fight fires are definitely candidates for hazard insurance. They put their lives on the line each and every day to help save the lives of others. Their families need that added peace of mind to know that things are covered should the unthinkable occur.

Deep sea fishing employees are out there and they choose this occupation knowing the risks. Nonetheless, the job pays well, is hard work and provides the public with the delectable seafood that they love. This job is loaded down with risks, so hazardous occupation insurance is a must for those who need to prepare for the future of those who depend on them. Oil rig workers, over-the-road truckers, farmers and farmhands are further examples of hazardous occupations. There are many people out there in occupations that must be done but are extremely dangerous.

Costs: Financial and Beyond

Anyone who works any kind of job that comes with its share of risks should consider adding hazard cover to their life insurance. There is a price difference, but when you think of the value that these kinds of occupations add to the world, the economy and the lives of the people, there really is no comparison. On top of that, most hazardous jobs pay quite well, and your family will definitely need help to keep going and get back on their feet if and when the time comes.

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Health Insurance for College Students

Posted on May 25, 2010 by Author

For those who are planning for a higher education, parents and students need to be aware that many colleges and universities now require students to have a health insurance plan in order to attend that school. If a school does not require it, you will often find that some majors and programs do, especially for those looking to study for a career in the medical field or working with children. High-risk programs that require some field study will also often require some kind of medical coverage. Some family insurance plans do have a provision for full-time college students attending accredited schools. This means the family can continue to carry insurance on the student until they are 18, 19, and sometimes up to 21 years old. However, at some point, the student is going to need their own coverage while they are still in school.

Schools

Some college and universities offer coverage themselves. Typically, students will e required to either purchase a policy from the school’s plan or provide proof that they are covered under an existing insurance plan. To be eligible for insurance from the school, a student must be attending part- or full-time and enrolled in a degree program. Students can also get coverage for their spouse and children with such policies.

Individual Coverage

For students who can not get coverage directly through their school, it is important to look for an affordable individual health plan. Students can often find these plans with discounts for college students.

Many student plans can also cover maternity expenses, psychiatric expenses and other medical expenses for an added cost. Medical insurance is a good thing for a college student. With the rampant frequency of illness and being on a campus with hundreds or thousands of other students, it is important to know you’re covered just in case. Paying for your own insurance is a great lesson in self-sufficiency as well.

Whether a school requires insurance coverage or not, a student should have it. It will help to save their health and will give their parents a little less worry.

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Vital Things to Know About Filing an Insurance Claim

Posted on May 24, 2010 by Author

Typically, it is pretty easy to initially submit a claim for your insurance benefits. You contact your local agent, submit a claim form and have the damages assessed by an adjuster. In many cases, once this is done, it is pretty cut and dry, just a matter of waiting for your check to arrive. In some cases though, the claim can be delayed or denied and there are things you need to know that could make the difference between winning a losing your claim.

Claiming Benefits

Once you file a claim, you hope the insurance company gets right on it. If they don’t, you can call your state’s insurance department and try to light a fire under the insurance company’s adjusters. You want to watch making too many insurance claims too. If your claims are legit, there should not be much of a problem, however, there are a lot of scammers out there who have gone after insurance money they really were not entitled to and that has made it difficult for the rest of us. A number of claims in a short period of time can easily send up a red flag. You want to ensure that your claims are necessary, as insurance companies do not prefer high-risk customers, and if they consider you a high-risk, you will most likely see your premiums skyrocket.

How to Win a Legit Claim

If your insurance covers a loss and you have, in fact, experienced said loss, through no fault of your own, do not be afraid to file a claim. Just be prepared to deal with a few hassles, headaches and roadblocks.

The first thing you need to do, before you ever have to think about filing a claim, is to read your policy thoroughly and get to know it well. You need to know what your policy says, what it covers, and all the small details, so you are prepared when you have to file a claim. This way, you are not caught off guard and can use your knowledge to win your benefits.

Next, when it is time to file a claim, be sure to document everything. This can not be stressed enough. In the beginning, it is a good idea to have documented whatever it is that your policy covers by taking photos and/or video and by writing down all of the pertinent details such as identification numbers and value. When a loss or damage occurs, you need to repeat the process. Written documentation of all the important details of the event, as well as photo and video documentation will help you to prove that your claim is, in fact, legit.

Always keep copies of all police and official reports, as well as any written repair estimates. You are going to need these. When it comes to estimates, get several professional opinions and be sure that their written report itemize everything that the estimate covers, so that you are not later surprised by hidden costs. As for repairs, make sure you do all that you can to fix things for the short-term to minimize further damage, until the major repairs can begin. The insurance company likes to see this. You, the customer, trying to minimize their loss.

Always make your claim as quickly as you can. If you wait, the insurance company has more leverage and you just might be denied. They are going to want to know why you waited. You may not be at fault, but this does look suspicious to the insurer.

Avoid using the word “lawyer” until you have to. Insurance companies tend to change their tone when you use this term. Avoid it early on and try to settle the claim yourself. Call the State if you have to. However, if all else fails and you are not seeing the results you know you are entitled to, hire an attorney and let the law work for you.

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Obama, Healthcare Reform, and the Poor

Posted on May 21, 2010 by Author

Obama’s plan for healthcare reform is making waves. On both sides of the political ticket, there are many who think it is a good idea, although each side has their own reasons why and what they think would work. Still, even if those in congress think this new healthcare plan is a good thing, regardless of their reasons, maybe they government should really ask the people who live in this country what they think of the plan. Some are all for it, some do not like it a bit, some are middle of the road, some are indifferent, and there is a small group that is a little bit scared. This group does not fully understand the new bill. They have simply heard that they will have to pay for health insurance or face penalties under the law. They know that health insurance costs a fortune and for the poor, even cutting the cost of health insurance does not ease the burden of the idea of trying to afford more than one’s limited budget allows.

The Poor Can Breathe a Sigh of Relief

When you’re poor, low-income, living on a fixed income, you typically get a routine going with the bills and that is that. You know you’re going to be broke when all is said and done, but you are used to, got the hang of things every month and at least you have what you have. For the poor, we are happy with just that. However, let someone throw in an unexpected or inconvenient expense, and that’s when the stress begins. Money does not grow on trees. You can not make a turnip bleed. Whatever cliche you want to use, the bottom line is poor is poor is poor, especially in today’s economy. We live with what we have and finding more is not very easy.

When it comes to the Obama Healthcare Plan, the poor can breathe a huge sigh of relief, and they do not have to wait until 2014 to do so. They can understand right now that there are provisions within this law that will both help them and protect them.

The Details

Healthcare reform is going to bring about some big changes in medical insurance. There will be state and federal “markets,” open to all citizens for purchasing the insurance coverage they need. For those who can not possibly afford a policy, government subsidy will be available. The new plan will bring new and strict regulations with it and will make it easier and cheaper for Americans to obtain health insurance and for those with pre-existing conditions not to face denials and exclusions.

If you lose you job or your income is cut, you can apply for the subsidy and for financial hardship that will keep you from facing the tough penalties for not being insured. If your income is low enough that you can not even file an annual tax return, the government says you won’t be subject to the mandate. In that case, you will likely keep your state medical assistance or Medicare. If the cheapest plan available is still more than 8% of your income, no problem, the government is not going to hold you to it. The subsidy will be there to protect you in this case as well.

These subsidies allow you to purchase affordable insurance so you will have medical coverage without having to pay the expense out of your own limited funds. This applies even if you’re employer offers insurance, but you just can not afford it (poverty level and  income guidelines apply).

Penalties

For those who could still face the mandates and associated penalties, the good news is that these penalties will be adjusted based on the cost of living. The penalties will not exceed 2.5 percent of your individual or total household income.

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