Decreasing Term Life Insurance

This life insurance is purchased for the purpose of making sure that the house you are buying is still paid for in the event of an unexpected death. Generally, it is referred to as mortgage life insurance, or decreasing term life insurance.

Although this is an older form of life insurance to protect the home, it is still around. The promise is that it provides more coverage up front when the most is owed on the home, and then it slowly decreases in value as the home is being paid off. Eventually, it is almost worthless for life insurance and any beneficiaries may actually receive nothing.

Like most forms of life insurance, the premiums remain the same for a period of up to 30 years. The problem is that the face value drops steadily until it is just about worthless at the end.

Regular Term Life Insurance

If you were to buy regular term life insurance to cover your death and provide for your loved ones and home, there would be quite a difference. Instead of losing value, a regular term life insurance policy retains the same face value throughout the life of the policy.

Although it may cost a little more, if you should die, your home would be paid for and your remaining loved ones would receive their share of the insurance proceeds, too. If you bought the term life insurance policy for $110,000, and you die while covered, your loved ones receive the full $110,000 and are able to pay off the remaining mortgage.

Regular Term Life Insurance Has Greater Value

As you can see from the above example, your premiums remain the same with regular term life insurance, but there is no decrease in the value. Obviously, it only make sense that if you have to keep on paying level premiums, that your insurance should remain the same, too.

Besides that, you may also have a lot of health and medical bills to pay for, too, as you get older. A healthy term life insurance policy should be able to cover it all. This type of life insurance ensures that you have money to cover some of those bills and possibly even provide your children – or grandchildren – with some inheritance money for college.

Although the decreasing mortgage life insurance may be the cheaper deal, it certainly is not the best deal. With a regular term life insurance policy, you are covering more than just the mortgage for your home, but you are also providing your family with the financial protection it will need for years to come. This includes providing them with a good income, enabling them to maintain their current lifestyle, paying your burial and medical bills – if there are any, and helping your children to enjoy life better.

HO-1

This is the original form of homeowner’s insurance. It covers the homeowner against 11 types of damage. This includes: fire and lightning, smoke, theft, vandalism, vehicle, volcanic eruptions, wind and hail, aircraft, explosions, riots, and damage from a building falling onto itself.

HO-2

This home owner insurance policy covers everything in HO-1, plus an expanded coverage. It adds: accidental discharge (or from freezing) of water or steam from heating, plumbing, and air conditioning, falling objects, weight of water, snow or ice, and damage from bursting pipes in a hot water heating system. Electrical discharges are also included.

HO-3

This version of a home insurance policy is designed to cover all insurance needs including liability. It includes all issues from HO-1 and HO-2. It does not include, however, coverage for floods, earthquakes and hurricanes. Some other specific situations may not be covered but they will have to be clearly indicated.

HO-4

Typically known as renters insurance, it provides coverage for all the items in HO-1 and HO-2. There is also liability coverage for guests, medical coverage, and some additional living expense coverage, too. It does not include any property damage.

HO-5

This home owner insurance policy type covers the same thing as an HO-3, but offers a wider coverage. It offers the widest possible coverage and includes about 15% more than what a HO-3 covers. It may also include things not covered by other home insurance policies normally, like art, jewelry, antiques and more. Because it is a package deal, it may be less expensive to buy this one, than it would to buy a basic policy and add a bunch of riders to it.

HO-6

This coverage is designed for condominium owners. It provides protection for the content within the walls of the condo, and for attached furnishings. Damage from fire, water, and smoke are covered, as well as offering liability within a distance of 150 feet. Its purpose is to provide coverage for things not provided for by the insurance policy of the condominium association.

HO-8

This policy is designed for the older home that may have some historic value. The home insurance policy only covers the repair value or the cash value – but not the replacement value. Replacement values could easily end up more than market value. It covers the basic 11 possible disasters of a HO-1.

Each of these numbers and the terms for them may vary slightly from one state and insurer to another. You will need to read the fine print to learn more precisely what is being covered by a particular home insurance policy.

Buying the best home insurance policy for your needs requires that you shop around. Get several home insurance quotes and then compare them carefully. Talk with an insurance agent to see what your special needs might be and find out where you might save money in order to get your best home insurance deal.

What Is A Health Savings Account?

A health savings account is a health insurance plan with a special savings account attached to it. The health insurance plan needs to be a high deductible health plan (HDHP) and the Government specifies the amounts of the deductibles. For a single person, the deductible must range between $1,100 and $5,500, and for a family, it must be between $2,200 and $11,000).

An especially useful benefit of a health savings account is that any money that is put into the savings account is tax deductible. The amount of money that you can put into it is limited annually, but it is higher than your deductible. This allows you to make even more money in interest. If you are over 55, then you can put a larger amount into it, which will help you build an even larger saving for retirement, if you want.

You are given full control over the account. You can withdraw money for other purposes if you want, but this money is no longer tax deductible and there is a charge for it.

Who Can Benefit Most From A HSA?

A HSA is a great way to provide for your healthcare coverage. This type of health insurance plan is especially useful when you are young and in good health. By taking the money you need for your deductible and placing it into an interest-earning account, you are seeing growth in your “investment” and can still use it for your deductible if you should need it.

Besides the interest, though, you also save by being able to deduct it from your taxes each year. This account can build to give you money for your retirement, when you can draw it out at a much lower tax rate. All money that is used for medical purposes is tax exempt.

Why Should You Use A HSA?

A health savings account gives you the protection you need for your private health insurance, and it is able to give it to you at a lower rate – because of the high deductible. A supplemental health insurance can give you even greater protection for those other forms of health problems you might encounter. In some cases, an employer can also make contributions directly into your HSA.

All of the money in an HSA remains under your control. Usually, the insurer provides you with a card that is used like a debit card. You have access to your money at all times. The insurer gets a receipt of all of your purchases and keeps records of qualified deductions and deductible amounts. Once you reach the annual deductible maximum, the insurer pays the rest.

HSA health insurance plans are proving to be popular. Be sure to shop around for your best coverage and then carefully compare health insurance plans against each other. You also want to investigate the health insurance company to make sure that it is good and will be there when you need it.

1. Get Driver’s Education for Better Auto Insurance Rates

If you have not already taken a course in driver’s education, now would be a good time. Auto insurance companies do give a discount to those who have successfully completed this course. In some cases, if your driving record has become tarnished, you may be required to retake the classes – which may help you get better rates again.

2. Buy A Safer Car

Although sports cars or classic cars have a better look, they do not come with low insurance rates – or any insurance discounts. You will get reduced car insurance premiums if buy a car that is newer and has safety features – like anti-lock brakes and airbags.

3. Avoid the Most Stolen Cars

Your insurance company will probably raise your premiums if you buy one of the top 10 most stolen cars. Their risk is higher, and you will be the one to pay for it. Avoid these cars and get a better insurance rate. Your insurance agent can tell you which cars are on their list.

4. Add Security Devices

Cars are being stolen all the time. Anything that can slow down a car thief, or at least make them look at another car instead, is something your insurance company appreciates. Ask your insurance agent about the best devices that will give you the greatest amount of savings.

5. Get Automatic Payments

When your auto insurance company has to send you a bill each month, you may be paying up to $5 more per month. You can eliminate this fee by getting billed electronically, or by paying quarterly or semiannually.

6. Combine Your Policies at the Same Company

Another way to get a discount on your auto insurance is to get all your insurance through the same company. They appreciate your service and will give you a discount for combined policies.

7. Over 55 Discount

Many insurers give you a discount once you reach the age of 55. If you are older than that, look over your car insurance bill to see if it has been applied. Talk to your insurance agent if it is not.

Most insurance companies now use your credit report to formulate your premiums. Although there are other factors, you can be sure that a bad credit report will probably raise your premiums. By working to get a better credit score, you can reduce your car insurance payments and save even more money.

Advantages of Term Life Insurance

The advantages of buying term life insurance will probably first be seen in your wallet. It costs much less than whole life to be able to buy the same amount of coverage. This enables you to buy a lot more coverage with term insurance than you ever could with whole life.

Less commissions for the insurance agent is a second factor on your wallet. This is another reason that the insurance is less expensive. In essence, you are buying pure insurance when you buy term insurance, and this gives you the lower price tag.

Disadvantages of Term Life Insurance

One disadvantage to term life insurance is its short duration. Since you can buy term life insurance for only a few years at a time (even for just one year), it does have to be renewed eventually. When you do, you may get a rather good surprise (shock) at the increased price – depending on how old you are when you renew. Once you turn about 55, there is a rather sharp increase in the monthly premium.

Some might think that there is a second disadvantage, but again it depends on how you look at it. With term life insurance, once the policy is ended, there are no benefits. With a whole life policy, however, you may have access to savings (cash value). Of course, if you are able to save, then it would be worth more money to you to invest elsewhere because you get a low interest rate on a whole life insurance policy.

Things to Watch Out for with Term Insurance

Term insurance is clearly the low cost champion on the block. The one thing that you will have to watch for, though, is to make sure that you have a guarantee of both convertibility and of guaranteed renewability. Having both could be very handy one day.

What could happen is that you may get some medical condition that could render you uninsurable. Term life insurance does expire after the deadline. A potential problem is that without a renewability clause the insurer does not have to offer you a new policy – and you may not be able to get it anywhere else.

Convertibility means that you have the right to convert your term life insurance policy into a whole life insurance policy when the policy expires. This turns it into a permanent policy and nothing will be able to cancel it – unless you fail to pay the premiums.

Term life insurance is the ultimate way to go – just make sure that you take the right precautions and make sure that the right words are in the policy. This will enable you to sleep better – and your family, too.

Learn About Credit and Insurance Scores

Many insurance companies, including those that sell homeowner’s insurance, use a system to determine the risk involved by insuring you. Besides having a credit score, you also have an insurance score – which is different.

Insurance scores start out with your credit score and then have other figures added to it. This would include past costs to other insurance companies and includes auto, health, home, and other kinds of insurance, too. The exact formula will change from one company to another, but it is clear that your past insurance experiences are part of the formula.

You can improve your insurance score by starting out with your credit score and improving it. Then, you may be able to improve your insurance score by keeping the number of your claims down – if possible.

Find Out About Past Problems and Insurance Claims

Another thing that may raise your insurance premiums is the number and type of claims that your home has had before. While the past cannot be changed, insurance companies generally know that if a home had a lot of claims in the past (even if it was a different owner), then it probably will continue to do so.

You can change this pattern, by finding out what type of claims have been submitted in the past, then working to get a permanent solution to the problem. Take evidence of the corrected problem to your insurer and you may be able to have your rates lowered.

Take Time for Modifications to Lower Your Insurance Rates

Insurance rates are also partly determined by a lack of, or the presence of, safety or preventative features. If you increase the security around your home, you can be sure to see a decrease in your home insurance premiums. Find out what brands and type of security devices, smoke and fire alarms, etc., will give you the largest discounts before you buy.

Only Insure According to Your Needs

Home insurance only needs to cover the structures on your property – not the land itself. Since nothing can happen to the land, this will help keep your costs lower – where they need to be. Also, you will have a better investment if you insure according to replacement value rather than for actual value. Although actual value is cheaper, it may not give you enough to rebuild your home later – especially if you have an older home.

One other thing – pay off your mortgage. A home owner insurance company will often charge less once the mortgage is paid because they believe that an owner will take better care of their home once they own it completely.

Each of these tips will enable you to lower your home insurance prices a little more. For more ideas, talk to your home insurance agent and stop spending more than you need to.

The Purpose of Supplemental Health Insurance

Supplemental health insurance is those options that are available to cover things that you may or may not need. While a general health insurance policy will provide you with a lot of coverage, there are definitely some gaps where you are not covered. If you want that coverage, for things like cancer, then you need to have it added onto your health insurance plan.

A health insurance supplement is designed to provide money for things that your main health insurance policy does not cover you. Generally, it pays so much per day up to a maximum total amount for the accident or injury.

Who Needs Supplemental Health Insurance?

People that need supplemental health insurance are primarily those who believe that they are more susceptible than normal to certain potential health problems – like cancer or some other disease. Generally, though, you will have to be able to specify which disease you want to be insured for because these supplements are often purchased for specific diseases.

Other situations, such as being paid for work time lost due to illness, is great if you suspect that you may be prone to getting a specific illness. Of course, this particular option is great – if you can afford to keep making the premiums. If you are out of work, however, and need medical treatment, that may be difficult.

Supplemental Health Insurance Options

The supplements that are available can offer you a lot of protection. Here are some of the options you have in supplemental health insurance.

• Income Protection – This supplement will enable you to receive an income while you are under the care of a doctor or in the hospital. It will help you to stay financially afloat during illness.
• Specified Disease Insurance – covers you for named diseases only. If it is not named – you are not covered. This is a good way to be covered for those diseases that may be in your family – like diabetes, cancer, heart problems, and more.
• Emergency Sickness Hospital Income – this pays you more while you are in the hospital. Since most health insurance policies only provide about half of the bill, this is a great way to reduce those bills even more.
• Disability from Sickness Coverage – if a sickness leads to a disability, then this supplement will enable you to receive money while you remain disabled.

Supplemental Health Insurance May Provide Extra Care

If you get a high deductible health insurance policy, and supplemental health insurance, then you may be able to cover most of your needs for health insurance. The supplemental insurance will pay you some for regular doctor’s visits and other things. This can reduce your doctor’s bills and enable them to be covered even with high deductible.

With any health care insurance, you always want to compare prices to make sure you are getting the best deal. If your health insurance comes through your work, then you simply need to tell them to add the health insurance supplement of your choice – after you know what it will cost you. Medicare recipients also have the option to get Medicare supplement health insurance, as well, including long term care.

A number of states recognize the severity of this type of problem and already require drivers to purchase one or both of the uninsured motorist or the underinsured motorist coverages. Many states do not require it, but do allow insurance companies to offer it.

What Happens when You Have An Underinsured or Uninsured Motorist?

If you have an accident and the driver of the other vehicle is either underinsured or uninsured, then claims will still need to be filed. You will need to inform your own insurance company – before the other guy does.

However, the situation is a little reversed from normal after that. Your own insurance company actually becomes the insurer of the other party since they will be paying on behalf of the other driver. This usually means that you need to get a lawyer to act on your behalf so that you get the amount you are supposed to get at the settlement.

How Much Uninsured or Underinsured Motorist Coverage Is Needed?

In states where it is mandatory, there are minimums that are established. You will have to get at least that much coverage. In other states where it is optional, you will be able to purchase up to the amount of liability that you already have, but you will want to talk to your insurance agent as to how much is recommended.

Uninsured Motorist Property Damage and Uninsured Motorist Bodily Injury May Also Be Purchased

Some states also enable you to be insured for property that is damaged by uninsured motorists. At the same time, however, you will also have to get uninsured motorist bodily injury coverage, too. These are not allowed in all places.

When you have an accident with an underinsured motorist, the other insurance company will pay for damages up to the limit amounts. Once that has been paid, then your own insurer will cover the amounts beyond that up to your own limits.

A Word of Caution about Settlements

When you have an accident with an uninsured motorist or an underinsured motorist, you need to decide very quickly how you will proceed. If you try and talk to the other driver and work out a settlement, then you will not be able to talk to your insurance company and try to make a claim on your uninsured motorist insurance.

Uninsured motorist insurance is a great thing to have. It really is not optional to those who understand what can happen without it. By having the coverage you need – even if others do not have it – you protect yourself, your family, and your vehicle.

Whole Life Insurance

Whole life insurance, also called permanent insurance, is the basic form of life insurance. A whole life insurance policy offers level premiums and level coverage for life. They also have a cash value that grows over time and which may be withdrawn when needed. A basic whole life policy will only provide you with the face value of the policy on death, and if you have borrowed any money, it will be subtracted from the face value.

Other variations of a whole life policy may give you a few options such as:

• Pay premiums for limited time – 15 or 20 years.
• Premiums returned at a specified time.
• Premiums and cash value returned at a specified time.
• Pay a single premium when purchased.

Universal Life Insurance

This variation on a whole life policy separates the cash value from the death benefit. This gives you the option of how you want to deal with the two. At various times you can alter the amount of the death benefit and enable your premiums to give more toward the savings element, or vice versa.

This option allows you to either build your cash value faster, or your death benefit. The premium is flexible and may even be skipped on occasion, if there is enough money available to make the monthly payment in the way of interest. You can make larger or smaller payments depending on your choices. Larger payments can be used toward the savings when the market is good, or you can increase your death benefit when the market is not the best.

Variable Life Insurance

Variable life insurance gives the buyer the greatest amount of flexibility and safety of any life insurance policy. There is the same division between the death benefit and the cash value, but you have greater options as to what can be done with the cash value money.

You can use it and invest it in the various programs for investment that are open to that particular insurer. This can include the stock market, money market funds, bonds, annuities, and more. As a hedge against poor investing, though, you do not have access to the cash value part of your policy – without canceling it. All interest gained is tax deferred until you take it out. This form of whole life is the most expensive and your premiums can be raised.

Variable Universal Life

This type of whole life insurance policy is a combination of universal life and variable life insurance. You are the one in charge of the value of the cash associated with the policy, and it is based on both the economy and how well you are able to manage the investment portion of the policy.

Literally everything is at stake on this one, and you want to get it only if you can handle your own investments well. Even the insurance (death benefit) is at risk. Added fees do apply, which makes it also more expensive than a standard whole life policy.

Find Out What Your Insurance Needs Are

Each condominium association will have its own rules and regulations about what kind of condominium insurance that you need to have. It will be different than what would be required if you had a single residence. Generally, a HO-6 policy, which is for condo owners, should be sufficient.

Most condominium associations have their own master plan, which covers most outside features. This covers nearly everything that is outside your door – the sidewalks, the elevators, the hallways, stairwells, etc. Once inside the door of your condo, however, you become liable. It may also be necessary to provide additional coverage for some things outside if your condominium association’s coverage is not enough.

Know What Events Are Covered and What Is Not

Outside, most everything is covered. You will need to be covered, though, for those things that might damage your possessions, furniture or fixtures. Things like a fire, smoke damage, water damage (someone’s shower above you springs a leak), theft, or the possibility of someone being injured inside your condo are all things that you need to be covered for.

You will not be covered in the event of an earthquake, hurricane or flood. These three things are always extra. If you live in an area where these are common, then you will need to get this coverage, too.

Insure Your Personal Possessions

Personal possessions are things that you will need to have itemized before your condominium insurance will cover you. Your household contents needs to be inventoried and various details recorded including receipts and photos – for best results. A video walk-through may make it a little simpler. Be sure to keep this information in a safe place outside your condo – like in a safe deposit box.

Items that have a higher value than normal, such as art, jewelry, collections, antiques and other costly items, will most likely need to have their own special coverage. Each item will need to be appraised and then it can be added as a rider onto your condominium insurance policy.

Condominium owners are also responsible for any fixtures and modifications. You should also add into the insurance coverage that you need the special items such as the appliances, hot tubs,  cabinets, etc.

Learn How to Reduce Your Condominium Insurance Costs

Getting condominium insurance does not mean it has to be expensive. By getting several insurance quotes, you can find what you need, at the price you want. You may be able to save some money, too, if you increase your deductibles and get it through an insurance company you already have insurance with.

Another possibility would be to get your condominium insurance through the insurance company that your condominium association uses. Since they already are aware of what is covered – they may be able to give you further reductions by eliminating unnecessary coverage.