Life Insurance policy and tax benefits

With all the credit instruments on the downhill, ‘Insurance’ has emerged as the favourite investment option today! And going by the content of the insurance advertisements that are constantly bombarded from our TV, everyone needs insurance!! Then there is the tax factor too!!

Of all the insurance types, what comes to our mind first is the Life Insurance. So we start hunting for an insurance policy that agrees with our requirements. But if our main requirement is to get tax benefits from the policy, we should consider the following points before selecting a policy.

Pros

There are several benefits of taking a life insurance policy in completing the tax saving process because this will help an investor on two fronts – getting a cover as well as ensuring that there is a tax benefit on the investment made for the purpose.
• There is the insurance cover that is available for anyone who makes use of this benefit, so there is some bit of the financial planning process that is taking place with the use of the life insurance route.
• The insurance cover can be quite significant for someone who wants to ensure that he/she gets a higher amount of cover especially for those who are young and this can be easily done for a small amount.
• The overall payment is spread over several years, so there is no pressure in just one year and this also makes the process smoother because it is a long-term investment. This reduces the one-time burden on the person making the investment and the good part is that the tax benefit will be available for all the years as long as the amount is within the overall limit.
• Most types of policies are covered under the tax benefit, so there is no major restriction as far as the type of cover is concerned. This allows the investor to get what they want along with the ensuing tax benefits.

Cons

There are also some negative factors that are involved when a life insurance policy is chosen for the purpose of claiming the tax benefits. This also has to be considered while making the final decision.
• In the search for tax benefits, people often end up buying insurance that they are not able to afford or are taken to the extent that they do not need. Several people have a higher cover than what their position requires and hence it is something that can be avoided.
• Most insurance premiums are recurring payments that have to be made year after year and this can cause a strain in the financial situation of a person in the coming years because the position some time down the line might not have been visualised earlier. Thus a premium that is affordable this year need not be affordable after a couple of years.
• The notion of insurance as a savings option often leads to a situation where the return from the effort is actually lesser than what could have been obtained. When the insurance route is also used as an investment route then the overall return often does not match up against pure investment choices.
• Many people also end up with a lower amount of insurance than they actually need because of the nature of the policies bought. Since they buy insurance for the purpose of completing their tax requirement the actual cover that is taken is actually very less. This is because when it comes to term policies the premium is very less even for a large amount of cover. A person thus could be paying a large amount of premium but they might not be having the required amount of cover.

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insurance co FAQ

Who do you contact roughly an insurance company paying claims on an individual who isn\’t even a contributor?
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Who\’s responsibility is it to notify you when your insurance co drops your dr?
We hold be going to like peas in a pod dr, and we hold have like insurance, for years. I go yesterday and found out they are no longer a participating dr. Therefore that call in, and my previous one, be considered \’out of…

Why does a form insurance co. recompense solely 80% and you settle 20%.?
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Why does insurance co. want 10 years of medical store after auto misfortune? Can this be used against me?
I was just this minute in an auto chance and sustained minor soft tissue injuries. I was told it be cervical sprain and a rib out, although I\’m still not exactly sure how that is possible. Anyway, the insurance…

Why does the insurance company be paid offer when dealing wit ha baggage?
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why saloon insurance co. increase your premium, when you inform them move of your address? Is it a trick ?
Insurance companies have unbelievably sophisticated actuarial models based on traffic pattern, accident notes and population shifts to determine, usually on a zip code by closure code basis, how much risk is involved contained by traveling in a…

Why would a insurance co. put a lender on a claim check along beside the homeowner?
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Worker\’s Comp SLU (Scheduled Loss of Use) Payment in New York State?
My husband will be one year from his surgery in October. Does anyone know how much time the insurance co. has to pay an SLU payment from when the judgement is made? Or what your personal experience was? Thanks. It sounds like a limb was lost…

Working by and large insurance co. in b\’lore target also is at hand but i don\’t own any contact within b\’lore pls he?
Probably you must be staying in a residential locality. First try to establish contact through phamplets showing your address, phone no. etc. and the your expertise in a one segment resembling Fire, Motor, Marine,…

Are their any guaranteed lowload duration insurance co\’s out in that that doesnt increase your premiums?
i have a policy beside 10 year term after the 10 years the amount is increased to high-ranking any suggestions please help

Best car insurance FROM EXPERIENCE?
am in nj. hartford was good, it was the insurance co. of someone who hit me. i have Geico, my friends as well. no problems yet

Can a form insurance co. ask you to nick a drug check upon signing up or is the employer trying to verbs somet
My friend has worked for a company for 6 months. He be promised health ins. after 90 days. He keep asking for his insurance and finally they gave him a dissertation with a acct number…

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Years and years ago there be a life insurance company name \”Maccabees\”. It has gone through several names change. In 1961, it changed its name to MACCABEES MUTUAL LIFE INSURANCE COMPANY. It is…

More insurance co questions please visit : InsuranceFreeFAQ.com

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How to Choose Your Caravan Insurance

Caravan insurance is an essential part of protecting your valuable asset. A caravan gives you the open road to explore, provides you with a way to get away from the hectic life you live and, it helps you create a unique way of life for your family. It also needs insurance protection to keep it providing this to you. When you insure your caravan, look for an insurance provider that offers the highest level of coverage to you and is well known for being able to provide quality, reliable service.

Having the right type of caravan insurance is essential. You may require two key types. One type of insurance is Touring Caravan or Trailer insurance. This type of insurance is the most commonly used as it is used for all types of caravans that are mobile or moved. The second is for onsite caravan protection. On site caravan insurance is designed for those caravans that do not move and are permanently at your site.

Coverage Under Caravan Insurance:

In Touring Caravan or Trailer Insurance, the premiums you pay will be based on a moving vehicle. This type of insurance is right for folding trailers, campers, demountable camper units, and slide on campers as well as horse floats. This type of insurance provides for coverage based on the agreed value of the caravan. It usually provides protection of all types when you are on the road or off, but is limited to use within Australia. Your basic policy will include a small amount of cover for the contents of your caravan, but you may want to consider adding additional value onto the policy here to cover your contents based on what you have in it. Most policies also provide you with temporary accommodations when you cannot stay in your caravan.

With on location caravan coverage, instead of motor vehicle insurance, you possess more of a home kind of insurance protection. This kind of protection gives many similar advantages, though. For example, the caravan insurance will be based on an agreed value that is fixed upfront. A majority will give you standard caravan content insurance however this could be a minimal number especially for static locations.

Questions for Your Provider:

When getting caravan insurance, it is essential to consider the costs of the plan but also the amount of covered provided to you. Not all things are inclusive in many of these policies. Be clear with your insurance provider on what is included and what is not.

* What is covered under the comprehensive motor coverage? Areas like accidental damage, fire, flood, keys, liability, storms, theft, vandalism and glass damage are usually included.

* What is not covered? In most situations, the cost of hiring a motor vehicle will not be covered, accidents outside of Australia will not be covered, and accidents that happen because of road cuts, punctures, bursts or braking will not be covered. Most policies provide do not cover mechanical failures either.

* How do you file a claim?

* What method is used to calculate the value of the caravan to determine the amount of cover needed?

Get a good overview of what is available from the company and choose the best policy for you from there.

Ways to Save on Caravan Insurance:

The best way to save on caravan insurance is to shop around and get quotes from several insurance companies to compare. This process only takes a few extra minutes, but will provide you with a clear picture on the real needs you have and the costs out there.

Most insurance providers offer discounts for no claims for an extended amount of time. Also, premiums are often reduced for those who are over the age of 55, which can help you to get a much lower payment.

Beware Before Signing:

With all insurance policies, know what the policy covers and what it does not. Spend some time talking to several insurance companies to find the best rates available.

Additional Coverage to Consider:

With caravan insurance, there are various types of protection available to you to add to the policy. One of the most important areas to consider is not just getting additional types of cover but getting more of it. Contents are generally covered by the basic policy at about $1,000, but this may not be high enough. Also, think over what types of events are covered by your contents insurance.

In addition to this, you may want to consider Hire Car Cover, which will provide you with protection to pay hire car costs. This policy is generally an add-on to the original and basic policy.

Windscreen Option is an additional option which can be added on to your caravan insurance. If you have a windscreen or window glass incident, and that is the only area that has been damaged, the insurance policy will provide you with replacement costs or repairing costs.

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Top Ten (Ok Sixteen) Insurance Saving Tips

Crazy4MoneyClips offers cost savings advice to millions of Americans annually.  One area that people often think about but approach hesitantly when thinking about cost saving is insurance.   If you get yourself a good agent that you trust, you should be able to talk to them about taking steps to lower your insurance rates.  Below are sixteen easily taken steps that can save you money.  Keep your money in your money clip.

1) Raise your deductibles on your insurances.  The higher your deductibles the lower your insurance premiums

2) Only make claims when they are sizable.  If you make claims on many small items, this will drive your rates up over time.

3) Pay annual insurance fees to secure reduced rates.

4) Buy term life insurance not whole life insurance.

5) Use same company for all insurance needs for volume discounts.

6)  Ask what special discounts may be available.  For instance, you can save money with the following special discounts: home safety, safe driver, senior.  There may be others available that you may qualify for as well.

7) Get quotes from multiple carriers.  It never hurts to see what your options are.  In fact, you may find pricing varies significantly.

8) If you have a teenager, make sure the teen drives the oldest car.  At least if you want the best insurance rates.

9) Insure your house not the land.  Most people insure their house and their land, but your land is not at risk for fire or tornado damage.  Save some money and insure just your house.

10) Check on Low Milage Discounts.  If you don\’t drive much, take advantage and get a lower insurance premium.

11) Check for Alarm System Discounts.  Most insurance companies will reduce rates if you have an alarm system installed.  Do the cost benefit analysis to see which will save you the most money.

12) Safe home means lower premiums; alarms, smoke detectors, deadbolts, sprinklers.

13) Stop Smoking; fires are cause by cigarettes so smokers pay more.  It\’s a hard one, but the fringe benefit is pretty good.  You get to live longer and spend the money you save.

14) Go for group coverage.  You will always get better coverage if you have a body of people to negotiate with.  Check into affinity groups, alumni groups, work policies, etc.

15) Live in a high risk area – look for private insurance.

16) Check your credit score – yes, it could impact your insurance rates.

If you want more information on any of the following go to www.crazy4moneyclips.com and check out their blog.  Their goal is to keep your money in your money clip.

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Low cost insurance: where to draw the line

The most popular topic of discussion when you think \”insurance\” is ‘low cost insurance\’. Since insurance rates depend on so many factors unique to each person you\’re never sure whether you are getting yours at a good price or not. In the quest for good coverage at lowest possible prices, often people end up overlooking important facts that can ruin their chances of getting adequate compensation when they need to claim, defeating the purpose of \”cheap insurance\”. Here are some things to consider while deciding on a low cost insurance policy.

Never shop only for \”low price\” – Look for a company that answers your questions, has good customer service and handles claims fairly and efficiently. It is very important to check an insurance company\’s claim handling history and then decide whether they are worth investing in or not.

Keep your deductable amount manageable – It is a known fact that the higher your deductible, the more money you save on your premium. However remember at all times, you have to be able to pay the deductible to make a claim, so fix an amount that you can comfortably shell out at a short notice.

Don\’t buy the cheapest insurance just because your Insurance agent says so. – Buy the coverage that meets your needs best, run your insurance policy through a fine comb to learn what you are being covered for and what is being left out. Often policies from two companies cost different because of differences in coverages offered.

Never Underinsure – By doing so, you defeat the entire purpose of buying insurance in the first place. If you have to shell money from your pocket for repairing damages to your car AND shelling a deductible to get a claim addressed, it\’s entirely your loss!

Not all multi-policies save you money – Some insurance companies will reduce your premium by 5 percent to 15 percent if you buy two or more insurance policies from them- for example auto and home insurance. But make certain this combined price is lower than buying the coverages from different companies.

Get lots of Liability coverage – If you are found guilty in an accident, you want to be able to pay up the other party without mortgaging your assets. High liability insurance is always a good idea. In fact Umbrella insurance is also highly recommended to provide extra liability coverages especially if you are dragged into a lawsuit.

Look for any value added benefits/ features one insurance company offers better than the other – You might need that rental car service while your car has gone for repairs. Did you sign up for it while buying your auto insurance policy? One company might offer lower rates, while another might give you better, more comprehensive coverage also throwing in a lot of free services. Choose carefully.

Do not confuse life insurance with a savings account – An \”Accidental death / Travel accident\” insurance will have very limited coverage; it will not pay your dependants anything if you die due to natural causes. However, full life insurance coverage will not only cover both but a whole lot of other scenarios as well.

Negotiation works – If while shopping around, you come across lower rates, bring them to the notice of your present insurance company; chances are they will throw in an additional discount or two rather than lose a long standing customer. It\’s a win win situation for you as you stick with a company you trust and get better rates with them.

Summing up, while it\’s a great idea to look for value for money insurance, choose carefully; factor in important considerations like customer service, claim handling reputation and coverages offered by the insurance company you wish to go with. Insure wisely so that you do not lose money when you really need it.

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Read This Before Choosing Your Life Insurance Policy

In the current economic times that we are in, it becomes important for all of us to ensure that we get the best value for our money. In the effort, you need to cut down on all unneeded expenses and save on all possible fronts. Surprisingly, many people fail to understand how even a small amount that you save in your insurance premium adds up to a big saving by the time your policy matures. So let’s look at some tips to get the cheapest yet the best life insurance quotes from market.

Have a clear idea of your insurance needs as it will help you in making an informed decision at the time of choosing your life insurance policy. Research the market and decide the type of policy you need. Broadly, there are two types of life insurance policies: term insurance and whole life insurance. You need to properly know about both to do a comparative analysis and choose the right one.

Give up smoking for a better life insurance quote. Not only does smoking negatively affect your health, but it also hurts your pocket in more ways than are apparent. Being a non-smoker can lower your life insurance premium by as much as 50%! The simple logic here is that non-smokers are medically supposed to live longer than smokers. Most insurance companies categorize a non-smoker as a person who has lived without smoking for 12 months.

Go online. If you go to the Internet, there are so many websites that offer free premium comparison tools. So instead of spending hours over the phone with financial advisors, simply check and compare hundreds of insurance providers in quick time.

Avoid taking huge cover amounts. While it’s good to think about your family and try to leave a lot of cash for their security and wellbeing, it’s actually imprudent to pay for something that they’re probably never going to need. If you care for your family and think about their future there are better ways than paying exorbitant premiums.

Act quickly. The younger you are, the better your life insurance quote is. Remember, your premium amount is inversely proportional to your overall health and it grows with your age. So don’t wait too much to get the policy because possibility of illness grows with age and that negatively affects your premium rate.

Put your money in safe hands and let the professionals do their job. Life insurance is not just about premium charges and claim amount; it’s a lot more than that, and that is why you need expert professionals. So don’t pay attention to any offer that comes your way from groups that are not specialized in life insurance. Insurance companies have been doing their jobs for ages now, and they are rather effective at it.

Check for discounts. Evaluate the additional features that different insurance providers offer to choose the best one. Keep in mind that life insurance is a very competitive market and these companies need your business.

Finally, last but perhaps the most important piece of information is to carefully choose your provider. It is very important that when you or your loved ones need to get the insurance amount there must be a proper structure in place so that they don’t have to run from pillar to post.

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