Life Insurance Critical For Mortgage Brokers

Home cover is the second most important insurance for consumers, it comes just behind car insurance which is a legal requirement.

This is according to Graeme Trudgill, the British Insurance Broker?s Association (Biba)?s corporate affairs executive, he said that the flooding of last year showed just how important home insurance is, it also brought to life that 25% of homeowners did not have adequate cheap home insurance policies.

Trudgill elaborated: “Home insurance is absolutely the second most important insurance you can buy. The first is motor insurance if you have a car because it is a legal requirement but home insurance is critical for several reasons.

“Firstly, if you have a mortgage there will be a contract between you and the mortgage provider which almost certainly says that you have to take out buildings insurance and if you don’t you will be in breach of your mortgage contract.”

All of people?s ?worldly goods and investments? are tied up in their home, if people do not hold sufficient home insurance policies they could lose everything if anything happened.

“Insurance premiums for buildings and contents insurance have hardly changed in the last ten years – they are very low, they are great value for money and it’s really competitive out there at the moment,” Trudgill concluded.

Another time when home insurance is vital for mortgage holders, according to Homebuilding and Renovating magazine, is during any renovation work on a house. Having a good home insurance policy will cover home owners in the event of a mishap, if people are not covered properly by their insurance they could suffer a significant financial loss if anything goes wrong with a renovation.

Editor of Homebuilding and Renovating magazine, Jason Orme, highlighted the importance of fully insuring a property during any ongoing renovation work, regardless of how big or small a project is.

During DIY work on a property, home insurance is not likely to be at the forefront of home owners minds, however this is an essential time to make sure you are properly covered. Accidents can often happen when decorating or renovating a property, spilled paint, damage to walls from mis-placed drilling or other damage caused by DIY work can cause the need for costly repairs, a good home insurance policy will cover you for this damage and will mean you do not need to put your hand into your pocket.

Mr Orme stressed that home insurance options should be fully considered even when bringing in professional to decorate or renovate your property for you. He said: “If you are undertaking substantial work and you need to move out then you need to [obtain] specialist renovation insurance – that’s very similar to the insurance people take out when they’re building their house,” he advised.

He continued: “If you’re doing a loft conversion or a small extension, that tends to be something that you can get specialist small-level [home insurance] for, possibly from your existing home insurance provider.”

If you do not have sufficient cover and anything should go wrong during any renovation work on your property, you will be fully liable for any reparation costs incurred. This is why it is important, not only to have home insurance cover, but to know exactly what it covers you for and to make sure all eventualities are covered.

Different insurers will offer varying levels of cover, it is important to check, before taking out your policy that you will be covered to the level you will require. Your insurer will be able to answer any questions you have about your policy and clarify which specific renovations you are insured for.

Pursuing Your Rightful Insurance Claim

Insurance is a process whereby simply following the rule of sharing losses, you get to protect yourself against major financial losses in the various tricky situations of life. In other words, by signing an insurance contract one party agrees to pay for another party’s financial loss resulting from the occurrence of a range of types of events.

Losses can be due to such things as a car accident, personal injury at work, damage to your property, major health problem, or anything else that might have a negative impact on your life. Under an insurance plan, you need to make regular premium payments to an insurance company. In return the company will indemnify you against the type of loss as stated in the policy.

There are various events in life where you get exposed to risk and it is such situations that determines the type of insurance you need to choose. There are basically three types of insurance policies you could choose from. Life insurance protects the dependents of a person and pays a sum in event of death of the insured person. Private Health Insurance helps to cover the hospitalization and other medical care costs incurred by the insured person. Property and liability insurance protects the property owner against any damage caused to property or any liability incurred from any person getting hurt on their premises.

We take up an insurance policy to protect ourselves against any untoward accident, personal injury, health problem, or property damage that could occur in the future. While some of these insurance policies are a statutory must (such as car insurance for drivers), there are many others which are optional. However, in many cases, insurance companies refuse to pay what the claimant considers a reasonable compensation claim. This can happen in cases of workplace injuries, and a whole range of injuries due to the negligence or incompetence of some other person, group or company. Seeking compensation for cases like this is where a good personal injury lawyer can help you.

The first thing you need to understand is that your insurance company’s decision is not the final word in regard of your insurance – especially in personal injury or work place injury cases. With proper organization and persistence, you can ensure that you get paid for your rightful claims. For this you need to be proactive, become familiar with your insurance policy, and get the advice and assistance of an experienced personal injury lawyer, car accident lawyer, workplace compensation lawyer, or whatever specialization seems most relevant.

Call the insurance company and speak with the customer service representative. Refrain from flaring up and keep all essential documents ready with you in regard to the claim you are filing. In case you fail to get a satisfactory response from the customer representative, you can talk to their supervisor or someone higher up the hierarchy ladder. If all the above steps fail to get you the proper response, you can file a written complaint against them.

Many a times it might be difficult for you to spare so much of time seeking your rightful due. This is especially true if your personal health condition prevents you from pursuing your claim with the insurance company. In such cases, you need to hire the services of a professional lawyer specialized in the field of insurance disputes. Remember that your best insurance is a insurance disputes lawyer who knows the system in and out and will eventually win the case for you.

Why You Should Get The Cheapest Ladies Car Insurance

Car insurance companies establish the total amount you can pay for your premiums as a result of attempting to analyse the level of a risk you might be. To provide an example, men below the age of twenty five will typically pay a lot more to their coverage than females from any age or males more than the ages of twenty five. The reason for this is because statistics reveal that males in that age band are involved in more accidents and accidents cost insurance companies money. Unfortunately, there is not a good deal you will be able to do to change your age or gender nevertheless there are more solutions to acquire reduced premiums.

If you’re able to make yourself look as less of a risk you may be eligible for discount rates. There are lots of rate reductions available for any number of different things. College students that keep up a good grade point average, anybody able to keep a clean driving license, driving a vehicle utilising plenty of safety features, taking an advanced driving course, any one of those things that make you eligible for a discount on your insurance plan. You may be able to find alternative discounts your insurance issuer gives through simply calling your agent and asking particular questions. A couple of minutes spent on the phone may uncover a considerable number of special discounts that you just never would’ve thought of if you had not taken any time to inquire.

The fastest way to get a lower policy rate is to simply complete some comparison shopping. Folks perform comparison shopping everyday irrespective of whether it’s to avoid wasting 50 pence in the supermarket or trying to make a decision on a large ticket product that could save them much more money. Folks evaluate prices on almost everything as they buy in the store however many people do not make some time to search around for the most effective policy rate on their vehicle insurance. The reason is probably simply because folks don’t know where to begin. The only tool you need to locate the best price is your computer as well as the Internet.

Now, you will be able to drive around any local area and try from one insurance company to another to locate low cost car insurance. Regrettably, you’ve got to gather all the information from each, bring it home, and try to check everyone so you’re able to obtain the best deal. If you don’t need to deal with each one of these issues then it’s best to look online for your cheap car insurance. You’ll see that lots of the websites today gives you a means to compare every one of the companies in one place. So after you put in all your insurance policy coverage information, nearly eighty companies will appear with quotes.

Still, before you jump in it is vital to gather all the very best information that gives you a greater possible opportunity to acquire special discounts. Consider it like how you carry out tax returns. You try to find everything that will add money right? Well in this instance you are looking in the places which can help you receive inexpensive car insurance. Among the many ways to undertake this is by changing the excess amount. If you’re at present using a ?250 excess, raise it to ?500. This alone will be able to lower your estimates or month-to-month costs if you are making payments. Though, in the meantime we recommend setting to one side some cash just in case an unlucky circumstances occurs.

There are many other methods to discovering reductions, but you only ought to read over everything. If you are with the armed forces, you don’t need to fail to notice that cheap car insurance reduction. What about the fact that you will have multiple policies? Are you married? Twenty-five years of age or older?

In the end you only need to keep one footstep ahead of your car insurance providers if you want exceedingly cheap car insurance. In the meantime, you must also follow the easiest path to identifying the top deal. We are pretty certain when you make use of a comparable quotes website, you will not undergo any trouble obtaining cheap car insurance for you and your family.

The truth is everything is actually in front of you. Obtaining cheap car insurance isn’t about merely having the lowest policies. Instead you’ve got to find the most suited cover and cost at the same point in time. If you will be able to do this then you will be well on your path to acquiring the top car insurance policy.

How To Buy Life Insurance You’ll Want To Keep

Not everything in life works out, including, sometimes, life insurance policies. If you stop paying premiums, your life insurance policy lapses � meaning coverage ends. If you stop paying for a term life insurance policy and exceed the insurer’s grace period (possibly 30 days), your policy lapses. Make sure that’s a consequence you intend: You’re not insured after the grace period and can’t “reactivate” the same life insurance policy.

If you stop paying on a whole life insurance policy, you may have more leeway. If you have accumulated cash value within the policy, your insurer will likely draw down the cash value account to cover premiums.

According to the 2007 “U.S. Individual Life Insurance Persistency Update” by LIMRA International and the Society of Actuaries (SOA), the overall annual lapse rate is 3.5 percent for whole life insurance, 7 percent for term life insurance, 4.6 percent for universal life insurance (UL) and 5.7 percent for variable universal life insurance (VUL).

Some folks pay for decades and decades on their life insurance policies and then throw in the towel and lapse their policies. What happened?

There are countless reasons someone might decide to lapse a life insurance policy. Most have to do with no longer having the discretionary income to continue paying premiums. John Dressner, Senior Vice President of LIFE Foundation, a nonprofit consumer-education organization, says, “Lapses are usually not for lack of desire for coverage but because of financial conflicts.”

Life insurance experts have seen people lapse life insurance policies when a job loss, divorce, large medical expense or business loss means budgets must tighten. Or they buy a new television rather than pay their life insurance premiums. (True story.)
Other times, policyholders are replacing their current policy with a new one.

Sometimes the decision to lapse is more emotional: The benefits seem too far off in the future.
And sometimes policyholders lose contact with the agent who originally sold them the life insurance policy, so they feel nobody is available to address their questions about lapsing it.

Dressner points out that “someone bought it for a reason, because they wanted the protection.” If you’re thinking of lapsing a current life insurance policy, think carefully about whether you’d want coverage in the future, when buying a new policy may result in higher life insurance rate due to your age and possible health problems.

While there are no studies on the exact reasons people have lapsed their policies, we can learn from past life insurance buyers who jumped ship. Here are some tips for life insurance shopping based on lapses by other buyers.

Choose a guaranteed level premium for the entire period you need coverage.

If you’re looking at term life insurance, consider buying a policy with guaranteed level premiums for the entire period you want to be insured, rather than face an increase after your guaranteed-premium period ends. The LIMRA/SOA study shows that lapse rates spike after the guaranteed-level premium periods. Perhaps policyholders were satisfied paying the level premiums but weren’t willing to continue at a higher life insurance rate.

Consider this: Among buyers of 10-year level term, 40 percent dropped their policies when the guaranteed-premium period ended, and 30 percent of holders of 15-year level term stopped paying when the premiums went up.

Further, those who pay “substandard” rates (issued due to ill health) abandon their policies in larger numbers after initial rate-guarantee periods, according to LIMRA and SOA.

Buy enough life insurance coverage for your needs.
Are you buying a life insurance policy with a small face amount? Think carefully about whether that policy is sufficient coverage for you, because history shows that almost half of people with whole life insurance policies of $5,000 or under abandon them within the first year (over 45 percent do, according to the LIMRA/SOA study). People with larger whole life insurance policies are far more likely to hold on to them.

This trend extends to other policy types. For example, buyers of annual renewable term policies under $200,000 lapse them more in the first five years than buyers of larger policies. (After year five the gap closes.)

The difference in life insurance policy size is quite noticeable with UL, where about 33 percent of those with policies under $15,000 lapse their policies in each of the first three years, as opposed to about 5 to 10 percent of those with larger face amounts.
If you’re buying whole life insurance, commit long-term.

The highest lapse rates for whole life policies are in the first five years. After that, lapse rates settle down at between 3 to 5 percent for whole life policies, according to LIMRA and SOA. Don’t throw away your money by paying into a whole life policy for one to five years, only to abandon it.
Make sure you understand what you are buying.
This is true especially if you are looking at universal life and variable universal life, which can have many “moving parts” that affect your premiums due and death benefit.

Match your coverage to your life stage.
If you’re under age 30 and buying a life insurance policy, consider carefully whether you’re committed to paying that premium bill. Others like you, age 20 to 29, abandon their policies in higher numbers than older buyers, according to LIMRA and SOA.
Find the easiest way to pay.

Consider paying your premium bill through electronic funds transfer from your bank account. Policyholders who pay that way are more likely to keep their policies, perhaps because they never have to sit down and write a check.

Add a “disability waiver of premium” rider to your life insurance policy.

Life insurance experts see many policies lapse due to a disability that puts the policyholder out of work. A disability waiver of premium rider will cover your premium payments in this case.

Shop for a good life insurance rate from the start.
If you will be issued a policy with a smoking or “substandard” rate, make sure you can keep up with premium payments. People in those rate classes lapse their policies more often in the first five years. For example, about 18 percent of smokers with whole life policies lapse them in the first year as opposed to 11 percent of nonsmokers, according to LIMRA and SOA.

No matter what rate class you fall into, knowing that you secured a competitive life insurance price will make paying your premium bill easier.