Without a doubt, buying a home is always one of the greatest investments for many people today. It is however very important to note although the aforementioned is true, a home also comes with some great risks which will make a home insurance policy an integral part of this new investment. This type of insurance normally covers a number of things and normally goes beyond the “structure” and therefore every homeowner will find it important for risk management purposes.
Normally, the home insurance is a great tool when seeking to protect your home from what cannot be prevented. This gives you as the home owner the so much desired peace of mind while at the same time ensuring that your family is protected from any eventualities that might strike the home.
When buying a home insurance policy however, there are various things which one should consider as a matter of importance. These things are important in shaping the decision that you will make and this will help you to find not only the best insurance cover but also be able to save in the policy that you buy for your home.
[u]Things to Consider When Buying A Home Insurance[/u]
– The first thing that you will have to consider is on the type of home insurance that you really require. There are different options of home insurance coverage available all of which can be helpful but one will need to determine what they really want prior to the purchase of the policy.
The policy you opt for could be informed by your geographical location, prevailing risk factors and also the age of the home that you intend to insure. Whileas there are some other complex considerations; this will come top of the factors that one must bear in mind in the process of policy buying.
With many different types of home insurance policies available, you will have to choose whether you are buying a policy for a rented home or one that you own and how extensive the coverage should be.
– Do you need the mortgage protection insurance? The other consideration that every home owner might need factor in is that of the MPI or mortgage protection insurance and especially if your home was purchased through mortgage.
This kind of insurance is important as it helps to ensure that your family is protected and the mortgage is fully repaid in case you lose your job or die prior to the full mortgage repayment. The MPI is an ideal method that ensures your home is protected in case of any eventuality and especially the two aforementioned cases that could lender you or your family homeless through repossession.
– Consider whether to choose the actual cash value policy or replacement policy. The actual cash value (ACV) allows the insurance company to pay for the claims but at a lower amount due to the depreciation factors. This might be disadvantageous for any home owner especially if you loss everything in the insurable disaster as you might not be able to rebuild your home.
The replacement policy might be advantageous for you although this will come at a higher premium. Depending with the risk level, consider which best works for you.
Unfortunately, if you get into (and report) auto accidents and are frequently stopped by police and issued driving tickets, you’ll be paying much higher auto insurance rates than someone who maintains a clean driving record. Here are a few more ways your auto insurance rates are affected:
Auto insurance quotes are affected by the state you live in
If you live in a state where auto accidents are at an all time high, you’ll more than likely have to pay a higher insurance premium. For example, if you live in California or New York, your auto insurance rates will be much higher than someone who lives in Macon, Georgia. If you have a clean driving record, this may not seem fair. The main reason why car insurance companies charge higher rates in certain states is because their statistics show that they’re much more likely to receive a claim for insurance in those states, and that the average insurance claim size is larger. So, they need to be compensated for the money they spend on paying out insurance settlements and other related car accident fees. Also, if you live in a high-risk area were vandalism and thefts occur, you will more than likely have to pay higher auto insurance rates.
Your family’s driving record can affect your auto insurance rates
If you’re looking for multi-driver car insurance rates, many auto insurance companies offer discounts. It’s important to note that when you purchase car insurance for other people in your family, their driving records will be verified. If you or any of your family members have been in car accidents or have tickets, the insurance rates will rise and you’ll have to pay a higher insurance premium. Additional factors affecting your multi-driver auto insurance rates are number of drivers covered, location of home and its proximity to crime areas, miles driven per year by family member, age of each family member, school grades, credit scores, types of cars, occupations, whether or not the cars are parked in garages or on the street, if the cars have alarms and LoJack tracking devices, age and value of cars, etc.
Shop online for cheap car insurance quotes
The good thing about shopping around for auto insurance rates is that you can compare rates and save more. During your search, first decide what kind of coverage you’ll need for your car insurance policy and then choose the amount of coverage. Then compare each car insurance company’s offering. Every state has a minimum requirement for car insurance coverage but don’t stop there though because car insurance companies highly recommend that drivers avoid purchasing just the bare minimum. If you’re ever in a serious car accident and have only minimum auto insurance coverage, the liability and repairs could be costly, even if the accident isn’t your fault. Take a few minutes more to invest in comparing multiple policies and even speaking with multiple agents. What you’ll learn will save and protect you more in the long run. Selecting the right insurance policy and company is an important decision and should always be treated as such.
Nowadays, long term care insurance can be too costly and may not be a good investment for everyone. And sometimes, in most cases, people who have already bought a policy find out in the end that they can no longer afford it over time.
That’s why, before purchasing long term care insurance, it is very essential to consult not only your family but professionals like an attorney or a tax adviser to help you in reviewing important factors when dealing with LTCi. Doing so also helps you determine your ability to pay premium and your family’s commitment to attend to your health care needs in the long run.
With a reliable LTC insurance, there are specific policies which give aid in paying for medical care given either in a nursing home, assisted living facility, adult day care centre or in your own home. These policies pay the costs of care related to skilled care and treating chronic health problems as well.
Before purchasing your LTCi, it is a must to: (a) Determine if you are a candidate in need of long term care. Make a good evaluation of your health and medical needs. Seeking advice from your personal physician also helps a lot for you to easily figure out what kind of care you will need. (b) Make sure to budget the expenses you are about to face. Costs of premiums are currently very dependent on the level of care you need, where you plan to receive it and how long. If you think you are a good candidate for long term care, it is better if you start at a younger age and in still in good health. Although it is likely to increase over time, our initial premium will be less than if you buy later in life.
Also, remember that receiving care in your own home, in a nursing home or assisted living facility can be costly, especially if you need care in a long time. Therefore, it is also very vital you determine who and how you will pay your expenses. You options may include you and your family, Medicaid, long term care insurance or any of the foregoing. If you have Medicaid, you do not need long-term care insurance. But, if you think your family cannot attend to your needs especially for a long period of time, you might have to consider long-term care insurance.
In terms of paying for long term care, you can pay for care out of your own pocket, through government-funded programs like Medicaid and Medicare, with the help of your employer, and through benefits. If you have the funds to support for the expenses, you can do so and pay out of the pocket. But, for people who have average income, seeking assistance from Medicaid, Medicare and benefits is more likely an option to take. Just be certain to qualify for the eligibility criteria set by Medicare and Medicaid, in particular.
Long term care insurance plays a very significant role in lives, most especially in times of disability and chronic illness. Thus, make sure to purchase the appropriate long term care insurance policy that best answers your medical needs. If you worry about the costs, getting a long term care quote is a big help.
According to the National Health and Nutrition Examination Survey (NHANES) 2001 to 2004, about two-thirds of adults in the U.S. are overweight and almost one-third are obese. If this were to continue, everyone in the U.S. could be overweight in forty years time. Some groups are already heading in that direction. For example, 80% of African-American women are overweight. Some 90% of Mexican-American men could be overweight in 25 years time. But there will probably be one or two people who resist the lure of the land of plenty and stay thin. We’ll probably never actually get to 100%. Whoopee!
Why should this matter? Well, there’s a proven link between being overweight and life-shortening conditions such as stroke, congestive heart failure, cancer and osteoarthritis. It would be fair to say that life insurance companies get very interested when you start talking about behavioral risk factors and mortality rates. Now add in the fact that overweight women who smoke are five times more likely to die young than non-smokers.
So the life insurance companies have produced a type of list. They classify people according to their risk of dying. If you’re a “super preferred” you’re disgustingly healthy with no bad habits. You’re going to live decades longer than anyone else so you get the lowest premiums. But if you’re only “preferred”, the premiums have started to rise because you have a shorter life expectancy. The average U.S. life pays the “standard” rate. And then come all the others with depressing titles suggesting you may die tomorrow.
How does this affect you? Well, your premiums will be high if you are overweight. The rates will rise further if you have high blood pressure or high levels of cholesterol. If there’s a family history of cancer, stroke, heart disease or anything else dealing out death, more increases. And then some companies double the rate if you’re a smoker.
What should you do? Well, never lie about it. That gives life insurance companies the right to cancel the policy. The companies want real evidence that you’re prepared to change your lifestyle. Obviously, you can’t do anything about your family history, but you can quit smoking and lose weight. Make regular visits with your local health provider and have blood tests to show improving levels of cholesterol and lipids, keep records of falling blood pressure, etc. With evidence of continuing motivation for better health, you can resubmit your application for a life policy and negotiate a premium reduction.
Some types of insurance are compulsory, such as motor insurance for anyone who owns a car. Other insurances are requirements of those we deal with, for example mortgage lenders who will usually insist that customers have buildings cover.
Most insurance, however, is voluntary. Individuals get to pick and choose what cover they want. These decisions are often easy to make, such as buying travel insurance for an overseas holiday, but this is not always the case. Each person will have their own priorities and preferences. Many will buy insurance cover for expensive personal items, such as mobile phones, that may be worth a few hundred pounds, but not insure the most valuable asset ”” their own life. Recent research  found that only one in three Britons have any life cover at all.
When considering insurance needs, it’s important not to forget life cover. A loss of life can bring financial hardship to those left behind. They may be burdened with debts, have difficulties meeting everyday living costs and be left with no funds to pay for home repairs and other larger expenses. A Government survey  discovered that 28% of all UK households have no savings at all and a further 18% have less than •£1,500. How would one of these families cope financially after the death of their main breadwinner?
Experts have predicted that, in 2009, UK families were underinsured by a massive •£2.3 trillion (that’s •£2,300,000,000,000) . This has been called the ‘protection gap’ and is a shocking amount, particularly as life cover is readily available and can be very affordable. It’s relatively easy to check online for the cost of cover and the various options available. Lots of factors influence the cost, including how much cover is needed, the cover term, age (premiums are lower for younger ages) and personal circumstances (for example, health, occupation, pastimes and overseas travel).
So, as research has shown, the answer to the question “do I need life cover?” will, for many people, be a resounding “yes”.
 – Scottish Provident Financial Safety report, 2010.
 – Department of Work and Pensions Family Resources Survey – United Kingdom 2008-09
 – Swiss Re Term and Health report 2009