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Life Insurance: What You Need to Know

Life insurance is something every person should have. After all, no one really knows when they will leave the earth and it’s important that loved ones are well taken care of in the event that this happens. However, it is important to note that there are different types of life insurance currently offered by providers. Hence, prospective policyholders would need to shop around and understand all the basic terms before signing up with any company. That being said, following are some of the things every person has to know before opting for life insurance.

What Type?

There are several types currently available right now: term life, whole life, cash value life and universal life.

Term life usually consists of a finite set of years chosen by the policyholder. Should he or she die within this specific time span, then only then could the family receive payment from the insurance company. This is usually offered for 5, 10 or 15 years and may even be renewed or continued if the specific amount lapses. Some policies allow for conversion to other life plan types should the policyholder choose to do so.

Next up is the Whole Life policy which covers the whole life of an individual. The payment for this type of insurance is slightly higher than the Term Insurance as it would be covering the rest of a person’s existence. Payment would also be done as long as a person is alive and the premium for month stays the same throughout. There are actually two parts for the whole life insurance. The first is the actual coverage of the policy while the other acts as a investment which earns interest over the years.

Cash Value Life is the most flexible of all insurance types. Basically, it also offers protection for policy-holders covering their entire lifetime. Unlike the whole life policy though, some premiums are subject to changes depending on different factors. Hence, the type of benefit this insurance affords also varies. That being said, few people tend to choose this insurance type especially since the economy seems to be working against it.

Universal Life

This is much like Whole Life plan in the sense that there are two distinct accounts – the actual policy and the investment. The only difference is that the rate of growth varies which means that policyholders have a better chance of getting more than they originally paid for. What’s great about this one is that there is a minimum payable amount for the insurance. This means that even if the company has financial problems, they are bound to provide the minimum amount stated. However, should the company experience excellent growth in investments, the policyholder would also experience a rise in their benefits.

Life insurance Requirements

Individuals applying for life insurance usually have to go through a series of physical examinations. This would let the company know how much risk they are taking in insuring this person before providing them with a quote. Other considerations would also include the person’s lifestyle, the health history of their family and sometimes their credit score.

Finding Cheap Life insurance

Ideally, individuals who want to find inexpensive life insurance should take a good look around. Ask for quotes from different companies online to get the best deal possible. If one is affiliated with other insurance companies, it might be a good idea to apply with them especially if they are offering bundle discounts. Other unlikely ways of lowering one’s insurance rates is living a healthier lifestyle like quitting smoking or holding off on alcohol consumption.

When it comes to life insurance, every person must realize that the requirements and regulations of companies vary. Hence, make sure to question them individually about what they can and cannot provide.

How Much Auto Insurance Policies Driver Must Have When You Live Between States

Auto insurance is essential and if you move back and forth between states for a major part of the year, you need to comply with the rules and regulations of the states. However, it is important to check for the rules governing both the states in order to have a clear idea of the coverage you need. States take their auto insurance laws very seriously and failure to comply with them can lead to suspension of your driving license and even a jail term. No matter which state you may drive in you will need to posses adequate auto insurance. The details of car insurance requirements are available with insurance company representatives. Alternatively, you can contact the Department of Motor Vehicles in both states to determine the amount of coverage required.

Many drivers are faced with the dilemma of having adequate auto insurance when they live between states most of the year. This also includes a number of businessmen, college students, and those who own two homes in different states. Some states require that you possess an insurance policy of the state your car is registered with. However, other states may require you to purchase a policy of the state that you are driving in. If you register your car in New York but purchase an insurance policy in the state of Georgia you will need to purchase another policy when you desire to drive in New York. Each state has its own laws, therefore, it is prudent to consult your insurance advisor before purchasing car insurance in any state. He or she will be in the best position to determine what policy will work best in your situation.

Often, drivers do not realize that the necessity for proper insurance when they are insured and registered only in their home state. Out of state car insurance is an option that many drivers have at their disposal. There are rules specially designed for out of state drivers, which once again varies from state to state. However, there is usually a threshold of 90 days in a year, whereby a driver that exceeds it must obtain suitable auto insurance in the state in which they are driving. The bottom line is that drivers who live between states often need to purchase out of state coverage and register their vehicle in that state as well. This ensures that drivers are adequately insured and do not take advantage of cheaper insurance in one state alone.

Know How Violations Cause Changes in Car Insurance Premiums

Some drivers regard insurance companies with great suspicion. They are convinced that, in the event of an accident, the insurance company is going to all it can to avoid paying the costs. While there are certainly some companies that may well be regarded as unreliable most insurance companies do try and provide a good service.

However they do have to contend with many dishonest individuals who make a living out of defrauding the insurance companies. The ultimate cost of these violations in the end is passed on to the consumer. This cost is baked into the monthly or half yearly payment made to keep an insurance active and is called a premium. The premium varies from insurance to insurance depending on how deep the coverage and what it covers etc.

But let us first look at the average driver like you or me. When we apply for a car insurance than what the insurance company does is to first look at our age because generally an older driver is more careful and the premium cost drops. Some companies may well have different levels of insurance each adjusted for a certain age bracket. Besides age other factors which come into play are gender, geographical location and what sort of driving record you have. Women drivers tend to have less accidents because they, unlike male drivers, do not take chances and are not as aggressive. As for location if you live in a rural area than you do not have the traffic congestion of a big city and there are fewer accidents. These are some of the reasons that premium costs are lower for those who fit such criteria. Your driving record is mostly a matter of public record and it is easy for an insurance company to see if you have a clean record or have been involved in accidents. This also affects your premium.

In today’s information society it is easy for an insurance company to access public records, as maintained by the courts and police system, and determine if you were the cause of an accident or if you are a victim. If you have been deemed negligent than your premium will go up. If you are the victim than hopefully you see no increase in your premium or at the worst a small rise. Some insurance companies apply a bonus system for the number of years you drive without any incident. If you have achieved a full bonus than you get a lower premium.

As a car owner it is possible to get a lower premium by being a careful driver and if involved in an accident to make sure that the police get all the facts if you consider yourself the victim. Never get behind the wheel if you have been drinking. If you are pulled over for a breath analyzer test than your premium will go up if the test exceeds the lawful limit not to mention the problems you may encounter with the police. You can also lower your premium if your insurance company encourages you to do more to safeguard your car with anti theft devices.

Tips to Save on Your Auto Insurance Today

Having auto insurance is definitely a good thing. Perhaps you yourself will agree that your car or vehicle is one of your most valuable assets and investments. Thus, it is just right that you find ways by which you can protect your car or vehicle. And one of the most popular ways is getting auto insurance.

But as you may know, auto insurances can really be costly. However, if you have the right strategies and tactics coupled with patience and resourcefulness, you will surely be able to save on your auto insurance today. For starters, here are some of the options that will help you get some savings on this type of insurance.

For one, it is best if you do your research and shop ahead. Know as much as you can before you close a deal. It is not enough that you have heard about auto insurance and you need to get it. You also need to understand even the basics of auto insurance, the plans, policies and purposes for which you need them. This way, you will better be guided as to what type of insurance will be best for you.

As a matter of fact, getting sufficient knowledge in this sense will save you money since you will only spend for the necessities. Since you are already knowledgeable, you will already know what to look for and not unnecessarily be lured into buying expensive insurance policies that you do not need after all. So in essence, you will get the best value for your money and save a significant amount of money in the process.

In terms of shopping ahead, that essentially means that you should find out more about the auto insurance policies and rates from various companies. As a matter of fact, you should go into the details and compare rates. You can just go to the website of the auto insurance companies and get information there. You can even send them a message to ask for free quotes.

Actually it is best to contact the companies directly so you can ask about factors other than the quotes. But of course, you have to find out which company gives the lowest and best rates for a specific type of auto insurance.

Then aside from getting quotes, it is equally important as well for you to get the details as to the policies and plans available. Get into the details. You can even set a meeting. Or if that is not possible, find out everything you need to find out through phone calls and the internet.

Another great way by which you can save on your auto insurance is through pursuing your discounts. As you may already know, insurance companies also offer various discounts. But one thing you may not know is the fact that the discounts are not applied on an automatic basis. Thus, you have to talk to your insurance company about this every once in a while to remind them. Then, in turn, you will be able to enjoy more savings.

Finally, if you do not want to go through all the tips mentioned above, you can always hire someone to do the job for you. And that essentially means that you can get an insurance agent. He or she will be the one to look for ways by which you can save on your auto insurance today.

You just have to make sure that you get a competitive and diligent insurance agent from a well known and well established company. This way, you can be assured that you will get the best services. You can have peace of mind that your insurance agent is an expert in the field and he or she knows what he or she is doing.

In the same manner, getting an insurance agent from a well established company has an advantage of having a wide range of connections. And that will always work to your advantage when you want to save on your auto insurance today.

Finding Auto Insurance Discounts: What You Should to Know

Finding auto insurance discounts can really be difficult and tricky; most especially so in states where automobiles themselves are pretty expensive. As you may know, the more expensive the automobile, the higher the insurance gets as well.

However, there are still ways to go about this if you just look hard and long enough. With proper preparation and research, you will surely be able to find the right car insurance plus great discounts and perks.

One of the first things that you should do when looking for cheap auto insurance or auto insurance discounts is to find out the basics about auto insurance themselves. You must know and understand the whole system first before going into particulars.

Once you learn about the basics and essentials when it comes to auto insurance and auto insurance discounts, you will be better able to decide on what type of vehicle insurance policy will fit your needs. Then afterwards, you will be better guided in finding the appropriate vehicle insurance coupled with the discounts that you need.

Although they seem to be offering almost the same policies, the truth is, various insurance companies also offer unique plans. Each company is finding a way to bait the pool of clientele.

Hence, you will see special offers as well as other perks and privileges. And these can apply to various conditions. For instance, some companies offer special offers and discounts for auto insurance that are available for certain owners of vehicles only. On the other hand, there are companies which offer price slashes and rate reductions for a wide range of vehicle owners and drivers.

Given this situation, it is imperative that you do your research first as to the policies that are offered by various companies. This way, you will find the auto insurance discount that will still fit your needs.

Another important thing that you have to remember when looking for cheap and discounted auto insurance discounts is that you should never sacrifice quality for the price. While it is true that there are really trade-offs because of the lower price for the insurance, the truth is, you can still get a good deal.

You must make it a point to find an automobile insurance discount that will still carry the basic features of an auto insurance policy that you are looking for. But more than the basic features, the discounted auto insurance of your choice should also carry the features, provisions and policies that you need and prefer.

In this regard, it would be best if you read reviews and ratings of car insurance policies and discounts first. There are actually a lot of these that you will find in specialty magazines and the World Wide Web. As a matter of fact, a lot of vehicle owners actually prefer reading the reviews and ratings online since it is much more convenient.

Expert reviews and user reviews will be of great help to you. The reviews done by the experts will give you a clearer idea about the technical details. They will also give you leads and references about what you should expect from auto insurance discounts and their purposes. On the other hand, the reviews by the experts will give you practical information. Bear in mind that these reviews are information by those who have firsthand experience.

The internet is also a good source of quotes. Get as much quotes from as many insurance companies as possible. This will actually be very helpful in finding auto insurance discounts that will fit your needs and preferences. You will then be able to get the best deal and bargain possible.

Finally, if you want to go through much hassle, you can just get an car insurance agent to do the job for you. Plus, you can also be assured that he or she knows what he or she is doing so you will most likely get what you are looking for. But of course, you will have to pay for his or her services.

How Traffic Tickets Affect Your Auto Insurance

Safe drivers are safer bets for insurance companies. Drivers who receive traffic tickets are logically assumed to not follow rules on the road. They have a higher probability of getting into or causing accidents. Such drivers are high-risk drivers for them. For such drivers it is in the interest of the insurance company to charge higher premiums.

A traffic ticket is not easily erasable. Even if you get a ticket in one state, it will be reflected in your record in other states as they are centrally connected. Your driving record will show your tickets for several years. At the time of determining your insurance premium, along with factors like age, gender, car, credit history, your driving record is also considered.

Premium rates may be lower for a clean driving record. It costs the insurance company money to check your driving record. It is not viable for them to check it very often. They do it once every 3 months or once a year before renewal of the contract. Thus there may not be an immediate change on your premium. Premiums may increase if a ticket is found on your record. However, after 3 years, the rates are brought back to normal.

The law in most of the states does not permit increasing the premium after getting just one ticket. But if a person gets many tickets in a short span of time, the insurance premium may increase.

Different states have systems that assign point values for traffic offenses. Depending on the points received, insurance companies can tag labels like high-risk driver or event reckless driver. Naturally the premiums for such drivers will be higher. If 15 or more points are accumulated, the license of such a driver will be suspended. A license suspension can have serious effects on your car insurance rates. If the traffic violations are frequent and serious the insurance company may refuse to renew your insurance contract altogether. The risk for the company may not be viable or sustainable in case there are too may violations.

Traffic violations, thus, costs you the fine as well as increased premiums.

A speeding ticket can be kept from your record. A driver can go for driving improvement classes or defensive driving classes. Once the program is completed, the record can be erased after producing the completion certificate. However, traffic school may not be possible if you are too many miles over the speed limit or for reckless driving. There is also a limit to the number of times you can attend it. The ticket can also be kept off the record, if the driver decides to contest it in court. The driver should not pay the fine until he has decided to accept or contest the charge. It is advisable in such a case to call the provider and inquire if such a ticket will affect the premium rates.

A clean record may thus result into substantial savings of 20% or more. Whichever way you look at it, it pays to obey the traffic rules.

Things to Consider When Looking Car Insurance for Teens

Car insurance for teenage drivers is usually an expensive affair that many parents tend to lose sleep over. It is important to look for ways to lower the premium since insurance companies consider teenagers high risk customers when it comes to auto insurance. Some providers insist that teenagers attend driving workshops to keep them safe on the road. Adding your teenage driver to the family auto insurance policy is what many parents tend do. However, it is important to understand the factors that affect car insurance for teenagers and look for ways to reduce premiums. For teenagers, a driving license spells more freedom and even more fun, while for the parents it is a matter of more expenses on insurance and sleepless nights.

Among the major factors that insurance companies consider when determining the premium for a teenage driver are the type of car and the purpose that the car is used for. It is important to understand from the viewpoint of the insurance company drivers below 25 are considered high risk and four times more likely to be involved in an accident, according to statistics from the National Highway Traffic Safety Administration. Adding a teenager to the parent’s insurance policy can often raise premiums by as much as 50 to 80 percent.

For affordable car insurance options for your teenager, the first thing to do is a bit of comparison shopping. Comparing rates will help you make an informed decision. As a parent, you may want to search for a separate policy for your teen. However, if you have a good claims record it would be prudent to include your teenager to your policy. Just make sure to ask for liberal discounts for being a loyal customer. Alternatively, those who drive less expensive cars may find it cheaper to opt for a separate car insurance policy for their teenager. Drivers who marry before the age of 25 may be considered for a lower premium by the insurance company.

One way to save money on car insurance for a teenager is to avoid new and expensive cars including sports cars. This will only increase your insurance rates. Teaching your teenager to be a responsible driver will go a long way in keep insurance rates low. Any accident involving your teenage driver could send your car insurance premium through the roof. Better grades at school could fetch you a better rate from insurance providers. In addition, many companies offer good-student discounts which could lower premiums by 5 to 10 percent. It would be wise to enroll in a driver’s education course and safe driver programs to find favor with the insurance company.

2012 price hikes may affect insurers

The cost of health insurance could grow at a slower pace next year, and that may squeeze profit margins for smaller insurers that focus on commercial coverage, according to a Wedbush analyst.

Analyst Sarah James said in a Monday morning research note that surveys of employers and insurers point toward slower price increases compared to 2011, when some elements of the health care overhaul, which aims to eventually provide coverage for millions of uninsured people, caused a one-time bump in rates.

James also noted that health care use has grown at a slower pace this year, and that will affect pricing negotiations for next year’s commercial business, which includes individual health insurance and employer-sponsored group coverage. The analyst estimates that the cost of insurance will rise in the 7-percent range next year, compared to increases of about 8 percent this year.

James drilled down on how pricing trends will impact different managed care companies:

—Coventry Health Care Inc.’s profit margins may be squeezed more because of its exposure to the commercial market and to states putting in place new rate regulations.

—Margins will be steadier for insurers with a relatively large Medicare business, such as Humana Inc.

—Big insurers with higher market share, such as UnitedHealth Group Inc., will also more easily be able to renegotiate contracts with care providers to accommodate for the slower price increases and help preserve margins.

Shares of health insurers rose in Monday morning trading as the Dow Jones industrial average jumped more than 2 percent.

Coventry rose 89 cents, or 3.2 percent, or to $28.97; Humana rose $1.75, or 2.5 percent, to $71.86; UnitedHealth was up $1.08, or 2.4 percent, to $45.97; while WellPoint Inc., another big insurer, climbed $1.57, or 2.4 percent, to $67.36.

UnitedHealth kicks off third-quarter earnings reports for big health insurers on Oct. 18. Publishes Money-Saving Guide on Motorcycle Insurance

Motorcycle insurance is most essential for riders across the USA. One of the country’s leading online insurance services,, recently released a money-saving guide for motorcycle owners aimed at helping them save on escalating insurance costs. According to David, manager of, some people avoid motorcycle insurance, which is one of the biggest mistakes that anyone can make. There are several ways to find affordable insurance and remain fully protected from any financial disaster in the event of an accident, where out of pocket expenses could become a problem to deal with. David says, “Some people ignore the importance of motorcycle insurance due to lack of sufficient thought and the failure to foresee the consequences. Today we have a number of providers in a market that is very competitive. This is a major plus point since insurance providers do their best to attract new customers and retain old ones with special offers and discounts”

When asked about ways in which owners could reduce their motorcycle insurance bill David said, “There are so many ways but in brief, the first thing is to maintain a good riding record with no speeding tickets and involvement in accidents. This will put you in the low risk category with your insurance provider. Another way is to pay a higher deductible that you can afford and lower your insurance bill even further. It is equally important to avoid making claims for minor problems if you can afford to pay out of your own pocket. This will make you eligible for the no-claims bonus every year when you renew your motorcycle insurance policy.”

The guide highlights a number of other areas where motorcycle owners can cut costs on insurance. For the most part, an insurance policy will cover medical costs, physical damages, and even pay for damage to accessories in some cases. David adds, “Undoubtedly, motorcycles aren’t as safe as cars, which is why insurance is very important. Wearing a helmet does not protect you fully. All it takes is a bit of research and comparison of quotes from various insurance providers to get the best deal.”

The guide also points out important factors that motorcycle owners must share with their insurance company. Those who ride less frequently and clock less miles must bring it to the notice of their insurance provider who may then automatically offer discounts. All those who seek to reduce their motorcycle insurance bills ought to shop around for the best prices online.


Why Car Insurance For Hybrid Vehicles Can Be Expensive

There are so many benefits of owning a hybrid vehicle, especially when it comes to saving on fuel bills and protecting the environment as well. The number of hybrid vehicle owners could be much higher. However, many refrain from buying these vehicles due to the high cost of insurance. For the most part, hybrid car insurance is significantly costlier than the cost of coverage for other vehicles. One of the main reasons why there is a difference is that insurance premiums are based on the cost of the car. Hybrid vehicles are costlier; therefore, insurance premiums tend to rise.

Another reason that influences the cost of hybrid car insurance is the fact that owners are more likely to be on the road due to savings on fuel and generally tend to clock more miles. This would include even short trips. For insurance providers, this puts hybrid owners in the high risk category. Most owners live in urban areas and are vulnerable to accidents due to the increased flow of traffic and extra time spent driving through gridlocks. Drivers tend to become more aggressive when commuting through high traffic and are therefore vulnerable to accidents, which has a great impact on the insurance premium.

Hybrid cars are still new to the market and required mechanics to have specialized skills while spares are costlier too. A qualified mechanic may not be accessible for miles in the case of a breakdown or accident, which is why insurance companies pass on the extra costs to hybrid car owners. Repairs are costlier too. Service centers and garages need to install special equipment to deal with repairs and replacements and pass on the added costs to the consumer, thereby influencing the rate of hybrid car insurance once again. In addition, insurance companies end up having to pay a large sum for repairs, replacements, theft, and any claims made by the owner. Therefore, these companies prefer to charge a higher premium in order to recover costs.

Although hybrid car insurance is undeniably costlier than traditional car insurance, there are several ways that owners can reduce their insurance bills. To begin with, there are a few models of hybrid vehicles that attract a lower premium as compared to others. The key is to shop around and compare quotes from various insurance providers. Some providers offer discounts purely for the fact that the vehicle is eco-friendly. However, there are several other factors including the safe equipment installed, good driving record, higher deductibles, and more.