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The Financial Crisis And Your Auto Insurer

In what many experts have called the worst financial crisis since the Great Depression, millions of people have begun questioning whether their auto insurance companies are stable. They’re wondering if their insurers will have the financial resources available to pay claims. The economy continues to roil; headlines are splashed with news of high-profile bailouts. Drivers’ concerns are understandable. However, most of that concern is unwarranted.

There is a support structure in place that all but guarantees that claims will be paid. Below, we’ll provide a quick overview of the auto insurance regulatory structure. We’ll also explain how your insurer’s financial stability affects you and when you might want to make the decision to switch carriers.

Separating Fact From Fear

A lot of drivers are worried that the current financial crisis places their car insurance policies at risk. They’re afraid that carriers won’t be able to pay a claim in the event of a traffic accident. Some of this fear comes from the memory of property insurance companies being decimated in the wake of Florida hurricanes years ago. But, that situation was completely different. The equivalent for the auto insurance industry would require that every driver be involved in a catastrophic collision on the same day. In effect, an impossible scenario.

Auto Insurance Regulatory Structure

The underpinnings of the auto insurance industry are founded upon a strict regulatory structure. State regulators work closely with the industry in general as well as with each individual carrier. They do so to ensure that resources are always available to pay policyholders’ claims, even in the case of an economic and financial crisis.

Every auto insurance company is required by the state to set aside a given level of loss reserves. The purpose of these reserves is to pay claims. Insurers are also required to annually report their financial viability to the state insurance department. That way, state regulators can review the potential risk assumed by policyholders in light of each carrier’s financial status.

In the event that your carrier becomes insolvent or files for bankruptcy, the loss reserves remain available to pay immediate claims.

The Next Level Of Consumer Protection

Because an insolvent auto insurance company represents a potentially severe economic impact to a state, regulators have created another level of protection for consumers: state insurance guaranty funds. Car insurers are required to contribute funds to the pool. If a carrier becomes insolvent and its loss reserves are insufficient for paying its policyholders’ claims, the guaranty funds are used.

Should You Switch Auto Insurers?

Even though there is a regulatory structure in place to protect policyholders, it’s still worthwhile to review your auto insurer’s financial stability. If your carrier shows signs of impending insolvency, consider switching to a new insurance company. It’s also important to review your policy once or twice each year. Consider the rates you’re paying, the coverage you’re enjoying, the service you’ve received, and your current needs.

If your auto insurer is habitually late in paying claims or worse, refuses to pay many of them, it may be time to switch. You can often find lower rates with better coverage at insurers who are willing to compete for your business. If you decide to change car insurance companies, remember to keep your current policy in effect until you have signed a new policy. Then, cancel your old policy in writing.

The current financial crisis is unlikely to expose you to the risk of not having your claims paid. But, there may still be reasons to consider making a change.

6 Important Benefits Of Financial Planner And Financial Planning

Financial planning is darn important for every individual and institution, household or a company. Almost every individual or institution need services of a financial planner at some point in time; and whether it could be for child’s education, or plain savings, or for retirement planning, or for insurance, or for investment in mutual funds, whatever it be, it can only be dealt with the help of a qualified professional financial planner.

There are many finance planning tools such as asset management, real estate investment, personal banking, legal resources, etc. but you bet these tools will not match the expertise of a human financial planner.

Financial planning is a meticulous job and who else other than a professional financial planner can execute efficient financial decisions? A financial planner has the proficiency to deliver a tailored financial plan for every individual requirement. And the services of a financial planner is everyone’s need; be it to increase wealth, savings, health/life insurance, tax planning, real estate investment, mutual funds investing in shares etc all need the proper guidance and advice for your finances to make short term and long term gains rather than letting your money sleep in bank accounts. Here is most important six benefits you can gain from a financial planning:

* The foremost important advantage of opting the service of an expert financial planner and taking his financial planning seriously is that you will have a controlled monthly expenditure.
* Second is the monetary allocation; a smart financial planner after analysing your turnover(monthly or annual) will divide you monetary resources into expenditure, saving and investments under his financial plan that gives you a sense of financial direction instantly.
* A perfect financial planning should and must include some monetary allocation towards medical insurance/accidental insurance for you never know when an emergency would arise.
* The major benefit you derive of a financial planning is that it assures you to remain financially stable even after retirement.
* Saving some booty for a rainy day; a financial planner ensures you are in a position to face any kind of financial crunch, which is unpredictable.
* Financial planning without any investment/saving for children’s education is simply incomplete and sheer ignorance on the financial planner’s part.

A financial planning other than offering perfect security to your monetary resources also augments your knowledge about financial investments thereby helping you handle your wealth more economically and efficiently.

Financial planning is darn important for every individual and institution, household or a company. Almost every individual or institution need services of a financial planner at some point in time; and whether it could be for child’s education, or plain savings, or for retirement planning, or for insurance, or for investment in mutual funds, whatever it be, it can only be dealt with the help of a qualified professional financial planner.

There are many finance planning tools such as asset management, real estate investment, personal banking, legal resources, etc. but you bet these tools will not match the expertise of a human financial planner.

Financial planning is a meticulous job and who else other than a professional financial planner can execute efficient financial decisions? A financial planner has the proficiency to deliver a tailored financial plan for every individual requirement. And the services of a financial planner is everyone’s need; be it to increase wealth, savings, health/life insurance, tax planning, real estate investment, mutual funds investing in shares etc all need the proper guidance and advice for your finances to make short term and long term gains rather than letting your money sleep in bank accounts. Here is most important six benefits you can gain from a financial planning:

* The foremost important advantage of opting the service of an expert financial planner and taking his financial planning seriously is that you will have a controlled monthly expenditure.
* Second is the monetary allocation; a smart financial planner after analysing your turnover(monthly or annual) will divide you monetary resources into expenditure, saving and investments under his financial plan that gives you a sense of financial direction instantly.
* A perfect financial planning should and must include some monetary allocation towards medical insurance/accidental insurance for you never know when an emergency would arise.
* The major benefit you derive of a financial planning is that it assures you to remain financially stable even after retirement.
* Saving some booty for a rainy day; a financial planner ensures you are in a position to face any kind of financial crunch, which is unpredictable.
* Financial planning without any investment/saving for children’s education is simply incomplete and sheer ignorance on the financial planner’s part.

Finding A Cheapest And Best Life Insurance Policy

Looking for the top rated life insurance companies to buy a good life insurance policy to safeguard your family in times of uncertainty but little tight on budget. If the answer is ‘Yes’ then it is advisable to make an investment in your insurance scheme wisely by comparing quotes for various available plans offered from all leading insurance companies. Find out how much insurance you need to protect your family by making comparison Over 50 Life Insurance quotes.In today’s fast-paced world, when life is so uncertain quality life insurance has become a necessity rather than a fad which standout as a great financial tool offering various benefits to the insured person as well as the beneficiary of a policy. It is a legal agreement between two parties – the insurance company and the policyholder where company is ensuring for financial support to the insurer’s family in the form of paying a lump sum amount of money. In the return, the policyholder agrees to pay a certain sum of money every month or year or quarter (as per the contract terms) called premium.
To cope with a personal loss like a financial crisis,
Life Insurance for Over 50
is an ideal way comes into picture that make your loved ones financially secured even in your absence. When it comes to life insurance policy, there no dearth of choices in plans ranging from universal cover to term, whole, and endowment policy. It depends on many factors including health, age, income, number of dependents, outstanding loans related information of policyholder.
Choosing the best and cheapest life insurance policy to safeguard you and your family in tough times can be a serious challenge. Make enough research before trying to shop around for low cost life insurance. An internet is the best place to begin with your research. Over the internet, there are many online portals available offering policy comparison facility where you can compare life insurance for over 50 quotes offered by all leading companies. When buying policy make sure to conduct a comparison so that you can pick one of the cheapest and best plans.
Many people consider low cost life insurance on account of financial constraints to get assured. There are certain factors you should remember while making investment in insurance policy – reliability, price, flexibility, premium and financial benefits. Ask the service provider if there is any special offer available with the policy or not. Choose you policy by considering all your personal needs and preferences.
Looking for the top rated life insurance companies to buy a good life insurance policy to safeguard your family in times of uncertainty but little tight on budget. If the answer is ‘Yes’ then it is advisable to make an investment in your insurance scheme wisely by comparing quotes for various available plans offered from all leading insurance companies. Find out how much insurance you need to protect your family by making comparison over 50 life insurance quotes.
In today’s fast-paced world, when life is so uncertain quality life insurance has become a necessity rather than a fad which standout as a great financial tool offering various benefits to the insured person as well as the beneficiary of a policy. It is a legal agreement between two parties – the insurance company and the policyholder where company is ensuring for financial support to the insurer’s family in the form of paying a lump sum amount of money. In the return, the policyholder agrees to pay a certain sum of money every month or year or quarter (as per the contract terms) called premium.
To cope with a personal loss like a financial crisis, life insurance is an ideal way comes into picture that make your loved ones financially secured even in your absence. When it comes to life insurance policy, there no dearth of choices in plans ranging from universal cover to term, whole, and endowment policy. It depends on many factors including health, age, income, number of dependents, outstanding loans related information of policyholder.

10 Important Reasons For Taking Out Life Insurance

Insurance in general is designed to protect you and your family from disasters and the financial burden which so often follows. There are many different types of insurance of which the basic and most important is considered to be life insurance which provides for your family after your own death.

Since there are certain financial commitments you have to meet throughout life you need also to provide something even in death to secure the family home, to assist the family to meet expenses for a while, to provide for dependent parents or to provide security for your spouse and possibly children.

These financial obligations might include things like your funeral expenses, unsettled hospital and other medical bills, mortgages, business commitments and providing for the education expenses of your children.

Just how much insurance you need will vary depending on your lifestyle, income and financial needs, debts, and how many dependents you are supporting. As a general rule you should have insurance coverage that is five to ten times your present annual income.

An important part of your financial planning, whole life insurance provides peace of mind for any uncertainties in life.

1. Life insurance correctly planned will provide funds in the event of premature death to deal with monies due, mortgages and day-to-day living expenses. It provides protection for the family you leave behind and acts as a cash resource.

2. It gives security for your hard earned estate on death by providing a tax free cash sum that can be utilized to pay estate and other death duties.

3. Life insurance plans can also have a savings or pension provision that can help to fund you in retirement.

4. In some cases policies have riders such as restricted coverage of term insurance or critical illness for a child or spouse. There are particular rules considering eligibility for riders that you will need to determine clearly.

5. In case of bankruptcy the cash value, as well as death benefits, of any insurance policy is exempt from creditors.

6. Holding a valid insurance plan is considered as having a financial asset and this improves your credit rating when you arrange health insurance or a home loan or business loan.

7. Term life insurance has double benefits as it protects and you can get your money back at important points in your life.

8. Life insurance can be arranged in such a manner that it will cover even the expenses of your funeral.

9. Insurance protects your business from financial loss or any liabilities in case a business partner dies.

10. It can go a long way towards keeping a family’s standard of living if one partner dies unexpectedly.

Insurance forms a vital part of good financial planning but you do have to evaluate your personal risk and your longer term commitments.

Benefits Seniors With Life Insurance For Elderly Couples

Senior couples should plan for the future of their families with life insurance for elderly plans. A financial advisor who specializes in finances for seniors can help to assist couples find the right policy. An advisor has the experience and knows the companies with in-depth knowledge to recommend the right plan, customized to individual needs. They can still help couples to receive a good rate on life insurance for elderly packages despite health issues and age. This benefits many senior couples who have a difficult time securing life insurance, and who are concerned about the future stability of their spouse, children and grand children.

Life Insurance Age Limits have Been Extended

It the past it was not uncommon for life insurance plans to have a cut off limit after the age of 69. Recently, insurance packages can be received for couples who are up to 89 years old. It’s important to ask for advice and recommendations from a financial advisor as early as possible, as rates for life insurance still vary based on age brackets.

A financial advisor can help elderly couples find a plan that suits their financial needs. Many seniors are on a fixed or limited income, and an advisor can research and secure plans for as low as $20 a month. This provides a significant advantage to elderly couples who still want to enjoy their golden years, and provide for their families.

Explaining the Difference in Insurance Plans

Financial advisors are allies in matters of money and safeguarding assets. Many seniors will want to understand the differences between individual and creditor life insurance plans. The advisor will make sure that seniors are fully informed and satisfied with their rates and plans before committing to a policy.

Other insurance options such as last-to-die coverage, which is offered at a lower rate, will be presented to the couple to assist with estate planning. This type of policy can provide a pay out of tax free death benefits upon the passing of a spouse. Although the topic of life insurance can be a sensitive matter, a financial consultant has the compassion and experience with these important matters, to make clients feel comfortable when discussing the future after the passing of a loved one.

Do you have health issues?

In the senior years, many elderly couples have had health issues and they worry about being denied a life insurance plan. The financial consultant will be able to offer a plan, including a simplified life insurance plan, which does not have medical tests. The consultant will find the best plan where the couple can answer “no” to the most health questions possible, as the less questions asked, equals the highest premiums. A financial consultant works around the couple’s obstacles to guarantee them the policy that they need to secure their assets, and help their families survive after they pass on.

A Guide To Understanding Different Insurance Policies

Life insurance is a contract between an insurance policy holder and an insurer, where the insurer agrees to make certain payments to the company. The insurance company agrees to pay a sum of money to a person of your choosing if you die. There are different types of life insurance policies available in market. Here in this article we will provide basic information about some of the most common Insurance Policies.

Insurance is one of the most popular financial instruments that offer savings as well as protection. It is a financial agreement between a policyholder and the insurance company. Taking an insurance policy means the insurer will compensate the policyholder for financial damages occurred to him, against the payment of periodical charges called premiums.

The cost of buying insurance largely depends on the range of coverage and terms of the policy. If a policy covers multiple risk factors, it will be more expensive. Before buying insurance, it is essential to understand its different types, some of which are:

Life insurance: Life insurance policy offers financial indemnity to the beneficiary against the death of the policyholder. Indian insurance companies offer several types of life insurance policies. Life insurance policies are particularly useful for individuals who have dependents or financial liabilities.

Home insurance: This is a type of property insurance that offers financial protection against damage to the building and its contents. Home insurance covers damage due to eventualities such as fire, theft and earthquake. An entire list of such eventualities will be mentioned in the policy disclosure agreement. Home insurance is also called homeowners insurance.

Auto insurance: Since buying auto insurance is a legal requirement in all Indian states, it is also one of the most popular insurance products. Most states also require customers to buy third-party insurance. Third-party insurance ascertains that you have enough finances to pay for damages caused to another person or property. One can also buy collision or comprehensive insurance policies that offer extended coverage. With an ever-increasing number of insurers providing car insurance, it becomes difficult to identify the best. Such situation requires buyers to compare car insurance quotes from different insurers and decide the one that suits them best.

Health insurance: Health insurance provides financial cover against sickness and disability to the policyholder. The Indian government has launched several programs to ensure healthcare facility to low-income families, government officials, veterans and senior citizens. The others may utilize the services of private health insurance providers.

Advantages of Life Insurance

1. Provide financial security to you and your family.
2. Can cover medical, educational, and daily living expenses.
3. Life insurance payouts are not taxable.
4. The best insurance policy can provide liquidity to pay off personal loans or business loans.
5. Life Insurance can help you to retain your Business from the loss of a key employee.
6. Life Insurance can be useful in paying estate taxes, along with other estate settlement amounts.
7. It creates a long-term savings opportunity with a reasonable rate of return.
8. Insurance policy also provides some optional benefits such as critical illness benefits, additional term benefit, accidental death benefit and waiver of premium benefit.
9. Life Insurance helps replace a charitable gift.
10. Insurance gives security to both individuals and businessman.

Read and compare insurance policies carefully. Also, read the list of exclusions and damages that are not covered under the policy, before signing the insurance agreement.

Three Reasons For Buying Life Insurance

We live in economically uncertain times and finding financial security has become increasingly tough. Baby boomers have seen their life savings dwindle during the 2007 economic crash. Worldwide natural calamities and political upheavals have made life more fragile than ever. That’s why it is important now, more than ever, to consider buying a life insurance policy.

Life insurance is used to resolve the financial gap that would occur if an earning member of the family or a stay-at-home spouse were to die unexpectedly. The loss of income this would incur would have a severe impact on the family’s financial status. For instance, if you died with outstanding loans or mortgages, the burden of paying off those loans would fall on your family. Calculating just how big a financial impact your death would have on your family is the key to life insurance planning.

1. Purchase life insurance for its numerous benefits

The first obvious reason to buy a life insurance policy is to protect your loved ones from a financial catastrophe. But life insurance has many more benefits you should consider:

Your life insurance coverage can serve as a partial replacement of income to the surviving members of your family, whether it is a spouse, your children or elderly parents who depend on your income.
Life insurance can pay for your funeral expenses. Burial costs and funeral services can be very expensive; death benefits can help offset those costs.
Life insurance can be used to pay off estate taxes. If you have a large estate, your beneficiary could use the coverage to pay off estate taxes and avoid liquidation of assets.
You can use your life insurance as an inheritance to pass on to your children or grandchildren so that they have a good start in life.
You can use your life insurance policy to make a generous donation to your favorite charity. Many people designate proceeds to their church or a relief organization.
If you are an elderly couple, death benefits from your life insurance policy can offer greater financial security to a surviving spouse. It can compensate and prevent a surviving partner from eating into retirement funds to pay for unexpected medical costs.

2. Purchase life insurance because it is totally affordable

This is the best time to purchase term life insurance. According to the Insurance Information Institute, from 1994 term life insurance premiums have plummeted 50 percent for standard-risk term insurance. A term life insurance policy is the most affordable life insurance policy.

Term life insurance is the most basic insurance policy you can buy and the simplest to understand. You pay a premium based on your age, sex, health, lifestyle, occupation and other factors that may be incorporated into a life insurance company’s underwriting process. In return, your family will receive a predetermined death benefit after you die.

If you are young and in good health, there’s a good chance you’ll be applicable for the best life insurance rates. You’ll be able to lock in those rates for a long time if you take a level term life policy covering a 30-year term period.

3. Purchase life insurance because it is convenient.

Let’s face it. Convenience plays a huge factor! Most of us lead very busy schedules and are driven by convenience. We need a process that is convenient and quick. Online life insurance quote providers offer just what you need�”convenience. Such providers will take just a few moments of your time. You will be required to fill in an online questionnaire. Once this is submitted, you will instantly receive the best life insurance quotes from top-rated life insurance companies that suit your personal situation.

Most of us are tech-savvy these days and the introduction of an electronic life insurance application process is paperless and can be done in the convenience of your own home or office. With e-signature, the entire process can be done online without having to meet a life insurance agent.

Conclusion

Life insurance is a competitive business. The underwriting process differs from company to company. Some companies offer a more specialized look into unfavorable health conditions and therefore can offer you better premium rates than others. Since online life insurance quote providers have an expansive database that holds information from hundreds of life insurance companies, they can easily locate companies that �favor� your pre-existing health conditions or your smoker’s status.