Important questions to ask when choosing insurance coverage

When was the last time you sat down and actually thought about your insurance coverage? Let's face it, it's not exactly on the weekly "to do list" for a wide variety of reasons and so… it's not surprising that many are caught unprepared when an emergency happens. One thing to remember is that you don't have to live in an area susceptible to a major disaster (i. e. living in an earthquake or hurricane prone area) to suddenly realize that your current insurance coverage is woefully out of date. Purchasing insurance is clearly a daunting task for many, but because it's more or less a necessary evil I've listed a number of key factors to consider when you finally do take the time to make sure your coverage is up to par. Pre Existing Conditions and Full Disclosure Before being approved for any insurance coverage all applications are looked at by an underwriter. It's an underwriter job to pretty much look at everything about you related to your medical history, when you apply for any type of individual health insurance policy. Be honest about everything and be sure to disclose any pre-existing conditions because in most instances the underwriter will find out about them anyway and if they do and you failed to mention them you could get denied coverage. And even if the underwriter doesn't catch a pre-existing condition that you failed to mention and you do get approved you're still not in the clear. The reason, if you ever file a claim before payment they'll look at your history again and if they find out about your pre-existing condition at that time, not only will they deny your claim but you could also be guilty of fraud and have to pay a fine, maybe something even worse. Although many companies will not insure pre-existing conditions, some will but only with a 30, 60, 90, and 120+ waiting period while others are legally mandated to carry "guaranteed issue" policies. Prior to signing on with a company, get a detailed list of what is considered a pre-existing condition, the exclusionary period and the type of coverage that will be provided once the exclusion ends. Rate Comparison Of course, rates are important but remember to get quotes on policies that have the same type of coverage. Get a copy of all quotes so that you can see the type and amount of coverage in each category and then make sure that every quote you get is based on those same coverage amounts so that as the saying goes… you are comparing apples to apples. If you receive a quote that is way below quotes from other companies make sure it's legitimate by asking how they can offer coverage at such a reduced rate. The answer may be that a particular company specializes in a particular type of coverage and so they offer it at a substantially lower rate but then again… if it's too good to be true then it usually is. So remember, a good dose of skepticism will carry you a long way. Dealing with Independent Agents Many independent insurance agents are truly a treasure chest of valuable information about the insurance industry as a whole but perhaps even more importantly, they can also provide you with feedback from other clients about a given insurance company, their products and customer service. You're the Boss So Have It Your Way Because you and your family are the ones that will have to live with consequences of whatever coverage you decide to choose, it's truly imperative that you think through your wants and needs before deciding on the type of coverage to choose. One question you may want to ask yourself is… How important is it for you to the have the option of picking your own doctors? If it's not an issue, then perhaps an HMO would be a good cost-saving option to consider. On the other hand, if you have a favorite doctor and come hell or high water you want to see them then you may want to consider the pricier PPO. Regardless of what company you ultimately decide upon, it's imperative that its products and coverage options can grow with you and your changing needs. As a result, a company that specializes in catastrophic coverage may not be the best course of action if you're planning on having children. A few other important factors to consider when choosing coverage are: add-ons, deductibles, customer service and rate increases. Bundling or Add Ons Combining or bundling multiple coverage's together. If this is a feature that is important to you then you need to make sure it's an option your insurance company offers. An example of bundling or "add-ons" would be to combine short and long-term disability, drug coverage or dental and vision coverage into a single package. Deductibles and Co-Pay Always look at and ask about the small print. A few good questions are, "What are you co-pay options" or "Is there an annual cap on the co-pays?" or "Do the caps cover any 365-day period or do they follow the traditional calendar year?" You should always look into a companies standing with the Better Business Bureau and if it's important for you to have access to a local agent then make sure they have a local office. If not, give the company a call and get a feel for hold times, hours of operation and services offered via telephone and the internet. Unexpected Rate Increases Ask friends about their experiences with the company. Have they had any problems service or rate increases in the past two years? This will be a fairly decent measure of the possible rate changes that will await you in the future. 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Breakdown insurance

: Who knows, you are going out for a long drive, and your car breaks down midway. Experts say that there is more than 10% chance of breaking down each year if your car is more than 3 years old. It is worse in the winter. You can avoid breakdowns by taking precautionary measures like re-servicing your vehicle each month. However, getting your breakdown insurance is a good option to protect you financially if your car vehicle breaks down when it is least expected to. Types of Breakdown Cover Roadside Rescue: If your vehicle breaks down outside a specific distance radius from your home, breakdown insurance would pay for the servicing amount except the charge for new parts. The company will provide you with other helps. However, the incident is at your home or within specified radius of your home, and then it won’t be covered. Home Rescue: It covers the same as the roadside rescue; it extends the coverage to your house.

It includes getting your vehicle checked at the local garage. Recovery Plus: It covers both home and roadside breakdowns. It provides a hire car to either return home or continue your journey.

And also it covers the cost of alternative transport to enable your journey or return home to be completed. If the breakdown happens a set of miles away (specified in the policy), accommodation in a local hotel while awaiting completion of repairs will also be provided. Continental Cover In UK, European Rescue Breakdown covers roadside breakdown in continental driving. It covers the charge of repairing or bringing your car back to UK in case your car can’t be repaired. However, it doesn’t cover the charge of new parts. So, it is always wise to have this insurance, if you are driving across Europe as you can face fees for roadside assistance charge for every kilometer your car is being towed. Partners and Family Some policies also cover spouse or partner; however check it with the insurance company. Some companies look whether your spouse or partner is living with you at the same address. Family cover includes you, a partner and usually two children under 21 living at the same address as you. Check whether your policy covers all the persons traveling in the car. You need to wait nearly 25 minutes to an hour for a roadside assistance. Some policies fix the number of calls to five or six each year. You may get more if you have a joint cover or family cover. If you exceed the limit you must pay for the assistance. Policies do not cover the cost of new parts. Some policies do not cover trailers and caravans. Animals are usually not covered.

Whole life insurance

: Whole life insurance, also known as “cash-value” insurance is a basic and consistent type of permanent life insurance which remains in effect your entire life at a level premium. This life insurance is a good choice got you if you do not expect your life insurance needs to diminish over time. A portion of your premium goes into a reserve fund called ‘cash value’ that builds up over the years your policy is in affect. Your reserve fund is tax-deferred and you can borrow against it, until you withdraw it. The premiums must generally remain constant over the life of the policy and must be paid periodically according to the amount indicated in the policy. You may also have the option of a single premium ----- paying all of the premiums at once with a single lump sum. Your cash values will grow to equal the amount of the death benefit when you turn to age 100. Although, whole life insurance is very expensive, and if you're on a limited budget, you may not be able to afford all the insurance coverage you actually need. But the plus point is that the death benefit is guaranteed as long as premiums are met. Also death benefit will never decrease if you don't borrow against it. Whole life insurance policy's returns will fluctuate with the markets and will usually follow returns available from other investments like equity mutual funds. However, if you decide to quit your policy, your cash value can be paid in cash or paid-up insurance. Whole life insurance is most suitable for you, if you want to: • use it as a tax and estate planning vehicle, • accumulate cash value for a child's education or retirement, • pay final expenses, • provide money for a favorite charity, • fund a business buy/sell agreement, • provide key person protection. Before buying the whole life insurance, you need to think carefully about choosing your level of coverage. Too often people make the mistake of insufficiently covering or even worse, financially overextending themselves. This would be a tragic error with whole life insurance policy because defaulting on premium payments can mean policy cancellation and the loss of your entire investment. So be careful and make sure you: • pick a life insurance policy that has a guaranteed cash value starting at the very first year, • choose the one with the highest cash value in the very first year, • consider "participating" insurance policies which can pay dividends, increasing your policy's value by boosting both the total cash value and the death benefits, • beware of any insurance policy that levies "surrender charges" when you cancel. • if you ever need to stop paying premiums, your policy lets you use the accumulated cash value of the life insurance policy to pay the premiums, thus keeping your coverage current. Discover How Easy Life Insurance Shopping Can Be: SubmitYourNewArticle/netquote. php