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Tuesday, September 16, 2014
Friday, September 12, 2014
Why Companies Need Contractors Liability Insurance
Regardless of if, you are a standard specialist or a
sub-contractor, contractors liability insurance is one kind of insurance
policy plan that you cannot afford to do company without. Not only will
almost all jobs require your company to provide proof of general
liability insurance before allowing it on their residence, but also
ignoring to protect your resources with this wide-ranging kind of
company insurance policy leaves you exposed to sometimes-catastrophic
obligations if incidents or accidents happen during a job.
Contractors liability insurance policy has a number of important types of insurance coverage, that jointly guarantee witnesses, customers, sub-contractors, and employees against these types of claims:
* Marketing Harm (i.e., libel and slander)
* Individual Injury
* Physical Injury
* Items and Completed Operations
* Property Damage
In every case, the contractors liability insurance contains legal and judgment costs caused by statements being registered against the covered specialist. This generally contains the other entire person's hospital costs, earnings lost, and all suffering and pain that could have been sustained.
Examples of the Types of Claims Covered
Advertising Injury
Such a claim is protected by many contractors' general liability policies, but it's probably one of the most rare to actually be registered. Marketing injury is defined as damage continual due to another person's use of slander or libel against the complainant. If you are a specialist, one example might be a sub-contractor submitting an claim against a standard specialist on the assumption that his professional reputation and earning potential has been damaged by damaging reviews and advertising started by the normal specialist.
Individual Injury
A couple of the more-common statements made against contractors, bodily injury and accidents statements happen anytime a third celebration (e.g. a customer or bystander) is unintentionally harmed on a job website as caused by negligence on the part of the specialist. Harm statements sometimes can include psychological and psychological injury that outcome from either irresponsible or purposeful acts by the accused.
Damage to Property
The most-prevalent claim observed on job websites, residence damage statements develop from damage or loss of residence because of the covered person's activities. Such actions might be either purposeful (whereby the harmed celebration may additionally submit an accidents claim for psychological and psychological injury) or random, and are occasionally registered due to loss or accidents that happen after the specialist has already completed the project. One common illustration of this would be a plumbing technician who is charged because water pipes he installed begin dripping and causing harm to the walls and flooring near them.
Products and Finished Services
Products and completed solutions insurance policy is very critical to contractors, because it contains the statements that happen should a client considers that a job was not done properly. This might be by way of a foundation that eventually divides or a wall that breaks at some point after a job has been finished.
Contractors liability insurance policy has a number of important types of insurance coverage, that jointly guarantee witnesses, customers, sub-contractors, and employees against these types of claims:
* Marketing Harm (i.e., libel and slander)
* Individual Injury
* Physical Injury
* Items and Completed Operations
* Property Damage
In every case, the contractors liability insurance contains legal and judgment costs caused by statements being registered against the covered specialist. This generally contains the other entire person's hospital costs, earnings lost, and all suffering and pain that could have been sustained.
Examples of the Types of Claims Covered
Advertising Injury
Such a claim is protected by many contractors' general liability policies, but it's probably one of the most rare to actually be registered. Marketing injury is defined as damage continual due to another person's use of slander or libel against the complainant. If you are a specialist, one example might be a sub-contractor submitting an claim against a standard specialist on the assumption that his professional reputation and earning potential has been damaged by damaging reviews and advertising started by the normal specialist.
Individual Injury
A couple of the more-common statements made against contractors, bodily injury and accidents statements happen anytime a third celebration (e.g. a customer or bystander) is unintentionally harmed on a job website as caused by negligence on the part of the specialist. Harm statements sometimes can include psychological and psychological injury that outcome from either irresponsible or purposeful acts by the accused.
Damage to Property
The most-prevalent claim observed on job websites, residence damage statements develop from damage or loss of residence because of the covered person's activities. Such actions might be either purposeful (whereby the harmed celebration may additionally submit an accidents claim for psychological and psychological injury) or random, and are occasionally registered due to loss or accidents that happen after the specialist has already completed the project. One common illustration of this would be a plumbing technician who is charged because water pipes he installed begin dripping and causing harm to the walls and flooring near them.
Products and Finished Services
Products and completed solutions insurance policy is very critical to contractors, because it contains the statements that happen should a client considers that a job was not done properly. This might be by way of a foundation that eventually divides or a wall that breaks at some point after a job has been finished.
We specialize in Contractor Insurance Liability and provide the
most liability coverage at extremely competitive prices. We cater to
both existing and new contractors for Insurance. Our quotes are provided
back to you within a few hours in most Cases. Read More on Contractors liability insurance
Article Source:
http://EzineArticles.com/?expert=Melissa_A_Henderson
What a Reliable Valuation Could Mean for Your Business Insurance Premium
Running a business requires plenty of time and dedication. It
also means that you need to have reliable business insurance. In order
to know exactly how much you need to insure your business for, it is
best to get a reliable valuation. This will not only help you to get
accurate business insurance but could help with your business insurance
premium in years to come.
How exactly does valuation work? Valuations are conducted by valuation companies and provide you with the overall value of your business as a whole. This will include all of the assets within it. The company that you choose to hire will go through an extensive process to make sure that they valuated each item and the property as a whole accurately. Once the valuation has been completed, you will be given the information and a certificate that has captured the findings. From here, you will be able to insure your business accurately.
Knowing how much your business is worth can greatly affect your business insurance premium. For all you know, you may be paying too much or too little for your insurance per month. If you are paying too much, you will be able to save money and put those extra savings back into the business. If you are paying too little, you will not be covered adequately by your insurance and, subsequently, they will not be able to pay out what you need were a problem to arise.
When you do decide to insure your business property, you will need to look at a variety of different aspects. You can choose to get an overall insurance to cover the business as a whole and also to insure specific aspects. The industry that you are in will determine exactly what you should insure in your business. Basic insurance will cover you for weather issues, theft and damage. In some cases, this insurance will be more than enough to cover all of your needs were you to run into any problems. However, if you do work in a specialized field, it is best to seek the advice of the professionals with regard to other insurance policies that you may need to take out in order to cover all of your assets. These policies may include:
Protecting your business and its assets should be your top priority, which is why you need to get business insurance that will cover every aspect. This is possible once you have had a comprehensive valuation.
How exactly does valuation work? Valuations are conducted by valuation companies and provide you with the overall value of your business as a whole. This will include all of the assets within it. The company that you choose to hire will go through an extensive process to make sure that they valuated each item and the property as a whole accurately. Once the valuation has been completed, you will be given the information and a certificate that has captured the findings. From here, you will be able to insure your business accurately.
Knowing how much your business is worth can greatly affect your business insurance premium. For all you know, you may be paying too much or too little for your insurance per month. If you are paying too much, you will be able to save money and put those extra savings back into the business. If you are paying too little, you will not be covered adequately by your insurance and, subsequently, they will not be able to pay out what you need were a problem to arise.
When you do decide to insure your business property, you will need to look at a variety of different aspects. You can choose to get an overall insurance to cover the business as a whole and also to insure specific aspects. The industry that you are in will determine exactly what you should insure in your business. Basic insurance will cover you for weather issues, theft and damage. In some cases, this insurance will be more than enough to cover all of your needs were you to run into any problems. However, if you do work in a specialized field, it is best to seek the advice of the professionals with regard to other insurance policies that you may need to take out in order to cover all of your assets. These policies may include:
- Crop insurance
- Earthquake insurance
- Boiler insurance
- Flood insurance
- Builders risk insurance
Protecting your business and its assets should be your top priority, which is why you need to get business insurance that will cover every aspect. This is possible once you have had a comprehensive valuation.
You need to come to a valuation company that can provide you with
an accurate assessment of your business. Here at Assetval, we can
provide you with that service. You can rest assured that once we have
completed your valuation, you will have all of the information that you
need to get accurate insurance. If you require any more information
about our services, you can contact us on 011 704 1785:
http://www.assetval.co.za/
Article Source:
http://EzineArticles.com/?expert=Kenneth_Nel
http://www.assetval.co.za/
Wellness and Financial Security
For the past decades up until now, wellness as an industry have
grown so much and have developed into several branches. An example would
be nutrition or food where grocery items such as precooked meat, pasta,
etc. are being labeled with their caloric value aside from the
expiration date. This is to make consumers aware of the nutrition that
they get when they consume a particular food. Some groceries even
included color coding where a red label means it contains a high amount
of a certain nutrient which is more than the needed percent daily
intake. On the other hand, green emphasizes balanced nutrition content.
People today are being more cautious about their health since they are exposed about certain diseases which can be seen through hundreds of television commercials and radio announcements as well as from publications such as newspapers and magazines. Most of these ads are sponsored by large drug companies that aim to sell their products to the public. Also, the commodity that is being sold can cost a lot compared to other brands and even much more expensive when put against generic brands. Let us be honest and ask ourselves why do we need to purchase and consume these drugs? Obviously the answer is "for wellness"
Health Insurance is a commodity that we pay through premiums which can be reimbursed when certain conditions such as illnesses occur. Some circumstances could need medical attention and having a policy to cover the costs will be able to save you from the risk of paying medical services out of your hard earned savings. Mason and Associates Insurance Services provides custom designed coverage that will surely meet your needs. Not only do they assist with small business health insurance, but as well as helping out a business in managing costs by designing a plan that meets the goal of the company. They do the leg work for financial security while you do the work for your health and physical well-being.
Another branch of the wellness industry is fitness, which can be again divided into little sub-parts. Two main sub-categories are totally different from each other, but can be incorporated in terms of use. The first sub-part is sports nutrition wherein food and drinks are used to enhance the performance of the person. And the second part is physical activity where the person is exposed to exercises such as resistance training, yoga, Zumba and even bodybuilding. The two categories when used in unison, becomes more effective in achieving your fitness goals.
People today are being more cautious about their health since they are exposed about certain diseases which can be seen through hundreds of television commercials and radio announcements as well as from publications such as newspapers and magazines. Most of these ads are sponsored by large drug companies that aim to sell their products to the public. Also, the commodity that is being sold can cost a lot compared to other brands and even much more expensive when put against generic brands. Let us be honest and ask ourselves why do we need to purchase and consume these drugs? Obviously the answer is "for wellness"
Health Insurance is a commodity that we pay through premiums which can be reimbursed when certain conditions such as illnesses occur. Some circumstances could need medical attention and having a policy to cover the costs will be able to save you from the risk of paying medical services out of your hard earned savings. Mason and Associates Insurance Services provides custom designed coverage that will surely meet your needs. Not only do they assist with small business health insurance, but as well as helping out a business in managing costs by designing a plan that meets the goal of the company. They do the leg work for financial security while you do the work for your health and physical well-being.
Another branch of the wellness industry is fitness, which can be again divided into little sub-parts. Two main sub-categories are totally different from each other, but can be incorporated in terms of use. The first sub-part is sports nutrition wherein food and drinks are used to enhance the performance of the person. And the second part is physical activity where the person is exposed to exercises such as resistance training, yoga, Zumba and even bodybuilding. The two categories when used in unison, becomes more effective in achieving your fitness goals.
Things You Probably Don't Know About Car Insurance
Auto insurance has been around for as long as people can
remember. Now that everybody knows how to choose a good company having
excellent reputation and strong financial condition, it seems that all
car owners can always purchase coverage from the right insurers. It is
indeed important to choose the best company you can get; you can do this
by conducting little online research to find information about any
particular company' claim ratio, customers satisfaction rating,
financial strength, available discounts, and more.
Nonetheless, there are other things that you probably don't know about auto insurance as briefly outlined in the following passages.
1. Women usually pay less premium fee
In most cases, men drive more aggressively than women do. One of the most important variables that determine your overall insurance premium is whether you are considered safe or high risk driver. The general assumption is that there are more male high-risk drivers than the female ones. As expected, any insurance company is extremely careful when checking your personal data including driving history. High risk driver are more likely to file claims or be involved in accidents either minor or major. Based on the assumption that high-risk category is mostly filled with men, insurer usually charges less premium fee to women.
2. Education level does have its roles in this industry, even when you are customer
Education level and professions are important variables to calculate insurance estimates. Some people consider this a discriminatory practice, and some states indeed ban the use of occupation and education level information as variables in determining insurance premium. However, it does not change the fact that it is the standard practice for years. Some insurers do not use such method, but others simply argue that occupation and schooling do play their roles, based on real statistics. It basically suggests that someone who has a college degree gets better bonus than a high school graduate receives. A bachelor also needs to pay more than someone with a master's degree, and so forth.
Occupation also matters. Some professions involve high stress levels, lack of sleep, frequent overtime working, etc; for car insurance company, such things can be easily related to high risk of accidents. Some of high-risk professions include lawyers, doctors, architects, salespeople, business owners, real estate brokers, etc. On the other hand, low-risk occupations may include scientist, artist, accountants, nurses, pilots, and teachers.
Regardless of your education level and occupation, please ask the company if certain discounts are available for certain professions and academic degree, too. If you don't have a college degree, simply go with the insurer that does not use this particular method. If you have any academic degree, however, it is good to take advantage and get the provided discounts.
3. Credit score is still a major factor
The use of credit score as variable to determine the price of premium fee that every customer has to pay every month is quite controversial. Some states prohibit insurers from using customers' credit information. This practice, however, is still very common. Your current credit score is used for predicting the level of your financial responsibility in the future. A bad credit score is a red flag indicating that you probably will not be able to pay the insurance premium fee in timely manner. This will result in more expensive premium; people with more money can often pay less. Such practice is illegal in some states including California, Massachusetts, and Hawaii.
4. Your money does not stay still
Similar to almost all financial institutions, auto insurance company wants to capitalize upon the already existing capital. In simpler words, the company takes your money and invest it but not on your behalf. The most difficult part of this process is of course attracting new customers. It has tough competition in the market, and your business probably has better deals with other companies in the area. To win the competition, every car insurer has to offer competitive prices yet not too cheap to anticipate payout that you may request in the future after filing claims. Once again, it takes some calculations to figure out the right premium for your particular risks. In most cases, auto insurance company only hopes to manage to reach break-even point from the money that you pay every month.
5. Different place, different price
Another major factor that helps determine premium fee is location or your address. Each state has its own rules about minimum liability coverage, traffic violations fines, etc. Moving to a different state, although not very far from your current address, can affect the premium too since the new location probably has different laws that affect coverage and it has different insurance companies in the existing market as well. Certain locations such as big cities may require you to pay more expensive premium especially if the city has high record of accidents, vehicle theft, etc.
6. Young and old pay most expensive premium
The youngest driver purchases coverage for the most expensive price. The premium will decline steadily until the driver turns 25. From this point, the premium will probably stay flat for quite a while, usually until the driver reaches 55. The premium will once again increase as the driver is old enough to be considered senior; the driver has to pay the most expensive price again at age 75.
Nonetheless, there are other things that you probably don't know about auto insurance as briefly outlined in the following passages.
1. Women usually pay less premium fee
In most cases, men drive more aggressively than women do. One of the most important variables that determine your overall insurance premium is whether you are considered safe or high risk driver. The general assumption is that there are more male high-risk drivers than the female ones. As expected, any insurance company is extremely careful when checking your personal data including driving history. High risk driver are more likely to file claims or be involved in accidents either minor or major. Based on the assumption that high-risk category is mostly filled with men, insurer usually charges less premium fee to women.
2. Education level does have its roles in this industry, even when you are customer
Education level and professions are important variables to calculate insurance estimates. Some people consider this a discriminatory practice, and some states indeed ban the use of occupation and education level information as variables in determining insurance premium. However, it does not change the fact that it is the standard practice for years. Some insurers do not use such method, but others simply argue that occupation and schooling do play their roles, based on real statistics. It basically suggests that someone who has a college degree gets better bonus than a high school graduate receives. A bachelor also needs to pay more than someone with a master's degree, and so forth.
Occupation also matters. Some professions involve high stress levels, lack of sleep, frequent overtime working, etc; for car insurance company, such things can be easily related to high risk of accidents. Some of high-risk professions include lawyers, doctors, architects, salespeople, business owners, real estate brokers, etc. On the other hand, low-risk occupations may include scientist, artist, accountants, nurses, pilots, and teachers.
Regardless of your education level and occupation, please ask the company if certain discounts are available for certain professions and academic degree, too. If you don't have a college degree, simply go with the insurer that does not use this particular method. If you have any academic degree, however, it is good to take advantage and get the provided discounts.
3. Credit score is still a major factor
The use of credit score as variable to determine the price of premium fee that every customer has to pay every month is quite controversial. Some states prohibit insurers from using customers' credit information. This practice, however, is still very common. Your current credit score is used for predicting the level of your financial responsibility in the future. A bad credit score is a red flag indicating that you probably will not be able to pay the insurance premium fee in timely manner. This will result in more expensive premium; people with more money can often pay less. Such practice is illegal in some states including California, Massachusetts, and Hawaii.
4. Your money does not stay still
Similar to almost all financial institutions, auto insurance company wants to capitalize upon the already existing capital. In simpler words, the company takes your money and invest it but not on your behalf. The most difficult part of this process is of course attracting new customers. It has tough competition in the market, and your business probably has better deals with other companies in the area. To win the competition, every car insurer has to offer competitive prices yet not too cheap to anticipate payout that you may request in the future after filing claims. Once again, it takes some calculations to figure out the right premium for your particular risks. In most cases, auto insurance company only hopes to manage to reach break-even point from the money that you pay every month.
5. Different place, different price
Another major factor that helps determine premium fee is location or your address. Each state has its own rules about minimum liability coverage, traffic violations fines, etc. Moving to a different state, although not very far from your current address, can affect the premium too since the new location probably has different laws that affect coverage and it has different insurance companies in the existing market as well. Certain locations such as big cities may require you to pay more expensive premium especially if the city has high record of accidents, vehicle theft, etc.
6. Young and old pay most expensive premium
The youngest driver purchases coverage for the most expensive price. The premium will decline steadily until the driver turns 25. From this point, the premium will probably stay flat for quite a while, usually until the driver reaches 55. The premium will once again increase as the driver is old enough to be considered senior; the driver has to pay the most expensive price again at age 75.
Insurance companies
do not actually hide the aforementioned information from customers. You
can always ask about many things to your company, or you can work with
an independent agent instead of a captive one. Insurance is a must-have
thing; no driver is allowed to drive without it. To make sure that you
purchase from the best insurance company, arm yourself with knowledge about how it works and ask helps from independent agent when you have to.
Article Source:
http://EzineArticles.com/?expert=Javier_V_Boix
5 Things to Check Before You Buy Family Holiday Insurance
When you go on a family holiday, one of the most important things
to organise before you set off is a decent family holiday insurance
policy. If something goes wrong on your travels, it can be the only
thing standing between you and a financial crisis. In some cases,
medical bills abroad can add up to thousands of pounds, even for minor
injuries, so it really is not worth taking the risk.
However, when you buy your policy, there are a number of areas you should look at very carefully so that you know exactly what you are covered for. Here are five key things to keep an eye out for.
1. What Activities Are Covered?
Family holiday insurance policies may provide cover for various activities that are common on holidays, such as swimming and snorkelling. However, when it comes to more extreme sports like skydiving or bungee jumping, you may find that you are not covered. If you then take part in one of these activities and injure yourself, you may have your claim for medical costs refused.
It is therefore essential that you know exactly which activities you are covered for when you travel. Check through the list carefully as you may be surprised: often, activities that you thought would be included may not be.
2. What Are the Per-Item Limits?
If you have cover for lost or stolen personal possessions, you will usually have a maximum amount, which may be in the region of £1,000 or maybe more. However, you should also check whether there is a maximum per-item limit, because this will often be lower. This means if you take an expensive item like a laptop, should it get stolen you will only be able to claim for the maximum per-item limit. You need to know whether the cover provided is enough, and if it is not, you may want to leave your expensive items at home.
3. Is It Cheaper to Get a Multi-Trip Policy?
If you are planning to have more than one family break this year, you may want to find out whether it is cheaper to get a multi-trip policy. If you travel abroad two or three times a year, it could work out less expensive - so do your sums before you purchase anything.
4. Are Pre-Existing Medical Conditions Covered?
Family holiday insurance policies often have exclusions when it comes to pre-existing medical conditions, so check what these are before you buy your policy. It may be that you cannot get cover for your condition, or you may need to pay extra.
5. Do You Need All the Cover?
Sometimes insurers provide different packages with different levels of cover. You should check the level of cover you really need before buying one. For example, the least expensive will often provide just medical expenses, and the more expensive may cover other events like cancellation cover and missed-departure cover. You have to ask yourself what is most suitable for your situation and choose a policy accordingly.
Family holiday insurance is one of the first things you should purchase when you plan a trip. However, make sure you are aware of all the details of a policy before you buy it, focusing especially on these five areas to help you find the most suitable one for your needs.
However, when you buy your policy, there are a number of areas you should look at very carefully so that you know exactly what you are covered for. Here are five key things to keep an eye out for.
1. What Activities Are Covered?
Family holiday insurance policies may provide cover for various activities that are common on holidays, such as swimming and snorkelling. However, when it comes to more extreme sports like skydiving or bungee jumping, you may find that you are not covered. If you then take part in one of these activities and injure yourself, you may have your claim for medical costs refused.
It is therefore essential that you know exactly which activities you are covered for when you travel. Check through the list carefully as you may be surprised: often, activities that you thought would be included may not be.
2. What Are the Per-Item Limits?
If you have cover for lost or stolen personal possessions, you will usually have a maximum amount, which may be in the region of £1,000 or maybe more. However, you should also check whether there is a maximum per-item limit, because this will often be lower. This means if you take an expensive item like a laptop, should it get stolen you will only be able to claim for the maximum per-item limit. You need to know whether the cover provided is enough, and if it is not, you may want to leave your expensive items at home.
3. Is It Cheaper to Get a Multi-Trip Policy?
If you are planning to have more than one family break this year, you may want to find out whether it is cheaper to get a multi-trip policy. If you travel abroad two or three times a year, it could work out less expensive - so do your sums before you purchase anything.
4. Are Pre-Existing Medical Conditions Covered?
Family holiday insurance policies often have exclusions when it comes to pre-existing medical conditions, so check what these are before you buy your policy. It may be that you cannot get cover for your condition, or you may need to pay extra.
5. Do You Need All the Cover?
Sometimes insurers provide different packages with different levels of cover. You should check the level of cover you really need before buying one. For example, the least expensive will often provide just medical expenses, and the more expensive may cover other events like cancellation cover and missed-departure cover. You have to ask yourself what is most suitable for your situation and choose a policy accordingly.
Family holiday insurance is one of the first things you should purchase when you plan a trip. However, make sure you are aware of all the details of a policy before you buy it, focusing especially on these five areas to help you find the most suitable one for your needs.
Patrick Chong is the Managing Director of Insuremore. We provide
low cost travel insurance and offer a range of policies including family holiday insurance,
annual, multi-trip and single-trip insurance. For all your travel cover
needs, Insuremore can help you in the quickest and most cost-efficient
way.
Article Source:
http://EzineArticles.com/?expert=Patrick_Chong
Things You Need to Know Before You Buy a Term Plan
Having dependants is a matter of responsibility and we need to
ensure that we take this up well. Earning enough financially, offering a
good quality of life and taking good care of your family dependants is
the major aspect of this responsibility.
But the responsibility does not just end here. You also need to ensure that the dependants in your family are also taken care of well and lead the same quality of life even in case you met with an unfortunate early death. So, we need to buy term insurance which will provide the necessary risk cover to deal with such situation. Buying any term insurance is not going to solve the problem and you need to be prudent while making a choice of term insurance plan.
To buy the right policy, you need to be aware of the following:
1) Do I need a risk cover?Term insurance is required if you have family members either children, spouse or parents who are dependent on you and you do not have enough savings to cover the cost of living for the family for the rest of life and any ongoing/future loan liabilities.
2) How much risk cover is adequate?
The higher the risk cover you choose the higher would be the premium on the plan. Be sure that the term cover you choose is adequate to help your family sustain the same quality of life as they are pursuing today. Thumb rule says that you should be covered for an amount that is 5-10 times the annual income.
3) Benefits of term life insurance
You need to be sure of term life insurance benefits before buying one. A term insurance is a pure vanilla insurance product that offers risk coverage in the event of an unfortunate death of the insured. Buying term life insurance is cheaper when compared to alternate insurance product like unit linked insurance policies (ULIP) and endowment policies. By paying a relatively small insurance premium, the risk coverage that can be obtained is much larger than for ULIPs. Like other life insurance policies, you also enjoy term insurance tax benefit.
4) Do I need additional cover beyond pure life cover?
A pure vanilla term plan offers risk cover only against death of the insured but there are other situations in life when a risk cover would be as important like suffering from critical illness or accident leading to permanent disability. There are riders that come with a term plan and if you think these riders will add value you can add it your term plan cover.
5) What is the right age to purchase a term insurance?
The earlier you buy a term plan, the better it is for you. If you have started earning it is advisable that you buy a term plan. Buying early gives you the benefit of lower premiums.
But the responsibility does not just end here. You also need to ensure that the dependants in your family are also taken care of well and lead the same quality of life even in case you met with an unfortunate early death. So, we need to buy term insurance which will provide the necessary risk cover to deal with such situation. Buying any term insurance is not going to solve the problem and you need to be prudent while making a choice of term insurance plan.
To buy the right policy, you need to be aware of the following:
1) Do I need a risk cover?Term insurance is required if you have family members either children, spouse or parents who are dependent on you and you do not have enough savings to cover the cost of living for the family for the rest of life and any ongoing/future loan liabilities.
2) How much risk cover is adequate?
The higher the risk cover you choose the higher would be the premium on the plan. Be sure that the term cover you choose is adequate to help your family sustain the same quality of life as they are pursuing today. Thumb rule says that you should be covered for an amount that is 5-10 times the annual income.
3) Benefits of term life insurance
You need to be sure of term life insurance benefits before buying one. A term insurance is a pure vanilla insurance product that offers risk coverage in the event of an unfortunate death of the insured. Buying term life insurance is cheaper when compared to alternate insurance product like unit linked insurance policies (ULIP) and endowment policies. By paying a relatively small insurance premium, the risk coverage that can be obtained is much larger than for ULIPs. Like other life insurance policies, you also enjoy term insurance tax benefit.
4) Do I need additional cover beyond pure life cover?
A pure vanilla term plan offers risk cover only against death of the insured but there are other situations in life when a risk cover would be as important like suffering from critical illness or accident leading to permanent disability. There are riders that come with a term plan and if you think these riders will add value you can add it your term plan cover.
5) What is the right age to purchase a term insurance?
The earlier you buy a term plan, the better it is for you. If you have started earning it is advisable that you buy a term plan. Buying early gives you the benefit of lower premiums.
Compare term insurance
plans online and get higher sum assured to cover your family at a
lowest cost. We provides best offers from leading insurers in India.
Article Source:
http://EzineArticles.com/?expert=Rajesh_Thakur_Singh
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