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Insurance

5 Illogical Justifications for Not Purchasing Life and Health Insurance Policies

When we purchase a health or life insurance, we are better prepared to face the worst things that life may throw at us. Some life and health insurance policies are affordable, although they may not provide complete coverage. However, we still spend a fraction of the money needed to pay for potentially huge expenses. It is clear that risks related to our health and life are quite obvious. Buying health and life insurance are justified, but here are some misconceptions that prevent people to purchase both policies.

  1. Bad things won’t happen to me: Happy and healthy individuals often shrouded with a false sense of invulnerability. They may think that they won’t get hurt, get sick or die too soon. They may think that when it is the time for them to die, it will happen peacefully in old age when they are sleeping. Unfortunately, many people suffer from life-altering injuries or illnesses. There’s 10 percent chance that we die before the age 65. There’s 33 percent chance that we will suffer critical health problems before age 65. Of course, there’s 100 percent chance that we will eventually die.
  2. I can’t afford insurance right now: It is true that many people are living on a tight budget. However, premiums for health and life insurance should be seen as discretionary expenses. Many insurers allow us to stop paying for specific number of months if things get tight. After a few months, we should be at better financial shape to re-start the coverage again.
  3. Saving money is better than giving it to the insurance company: This is one of the most common justifications among people who don’t pay insurance policies. People have worked hard to earn money and they don’t want to spend it for insurance premiums. Saving money may seem a reasonable thing to do, but there’s always a big risk of dying or getting sick too soon. It is important to ensure that we are still financially secure after having a serious illness.
  4. Life insurance isn’t needed, my spouse will remarry if I die: This sounds like a really illogical reason. This could be a sign of marriage troubles or distrust in the family. It won’t be a good thing to leave the spouse and children a mountain of debts, due to medical, funeral and loss of wages expenses. Caring and compassionate husband should make sure that their loved ones will be financially stable, no matter whether his wife will remarry or not.
  5. I already have group insurance at work: Group insurance often pays two times our annual salary. This may sound like a lot, but our loved ones will live more than two years. Group insurance under-insures us and a good life insurance policy should provide at least seven times the last annual salary. This will provide the surviving family members with enough time to make preparations.

In reality, these justifications don’t really make sense and it will be much more logical to keep ourselves financially protected at all times.

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Insurance

How to Save Money on Car Insurance

Car insurance is requires in many states and countries. All licensed drivers should have it and the plan should protect against asset damages and cover medical costs incurred by road accidents. However, before choosing car insurance we should look for ways to save money while getting the best possible coverage. Because car insurance can be used for a long period of time, it is possible that we simply pay too much for the coverage. In this case, we should do comparison shopping to ensure that we receive all possible discounts. We should make sure that we qualify for the protection. It means that we shouldn’t be over- or under-insured, because both situations could cost us a lot of money.

There are many things to consider when we use car insurance policies. As an example, the insurer will ask us about the car type, age, driving record, our home address and others. There are many factors that can determine the overall costs of car insurance. It is actually possible that we get car insurance policy that is much lower than what’s provided by typical providers. It is also a good idea that we check the insurance rates periodically. Car insurance plan could change perpetually, so it is a good idea to consider whether we should change our insurer and get a new one.

Often, these discounts could provide us with huge costs savings on our car insurance policy. It means that we should be able to determine what kind of discounts is acceptable for our situation. We should review our car insurance policy carefully to know that discounts that we receive are acceptable. As an example, our driving record could have a huge effect in our effort to reduce the overall costs of car insurance. If our driving record is devoid of any kind of accident or ticket, we should be able to qualify for good driver discount. We should be able to obtain lower premiums by using specific safety features, including the daytime running lights.

If we are able to maintain clean driving record, we could actually negotiate for lower insurance premium after a few years. The type of car is also a contributing factor to lower the overall insurance costs. In this case, we should try to be careful and find ways to improve our safety. It is imperative that we are able to maintain a clean driving record, so we won’t get ticket or even experience a damaging incident. Keeping our overall insurance costs low should be quite easy to do. Many drivers are lamenting that their car insurance costs are too high, but it isn’t actually a big problem.

Car insurance shouldn’t be considered as a financial burden. In fact, insurance should be seen as a way to protect us financially. This can be achieved only if we obtain the lowest possible premium and highest possible coverage. We should get the best possible value for our money in order to make car insurance acceptable for our situation.

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Insurance

5 Mistakes Students Do That Can Increase Car Insurance Rates

Younger people are more reckless than adults, making it easy for them to make mistakes after mistakes. In some ways, they still think a bit like children. They don’t think about the consequences of their actions and short-term comfort may often be their priority. Here are mistakes that people may do:

Drinking before driving

This is one of the most common mistakes that young people do. If students want to get an excellent deal on their car insurance policy, it is important to maintain a perfect driving record. Nothing ruins a driving record than a severe DUI case. This is a serious condition, because DUI isn’t only dangerous for personal or others’ safety, it is also against the law. About a third of fatal accidents are associated with driving under alcohol or drugs influence. Drinking before driving is an indication of negligence towards one’s own life and the society.

Allowing Friends to Drive the Car

For many students, this may sound like a harmless thing to do. As an example, students may want to be helpful and they let friends to borrow the car for some college-related tasks. Although no one is doing a bad thing, allowing friends to borrow the car has violated the rules as stated in the policy. The car insurance policy considers car and driver as a single entity. The car shouldn’t be driven by others and the driver sometimes isn’t allowed to drive other cars, depending on the policy. The insurance company will eventually find out if students do this too often and record can be affected.

Breaking Traffic regulations

If we break more than a couple of traffic regulations in a single year, our premium will skyrocket.

Driving Sports Car

More expensive and bigger cars represent higher risks. Maintaining and repairing them are also more expensive. We will need to spend more money if the car breaks down or if it gets into accidents. Sports cars often have powerful engines and reckless young driver will be tempted to drive rashly. Buying used cars may cause many insurance benefits and it is definitely more expensive to buy insurance policy for the first day of college.

Skimping on Coverage

College students could be tempted to obtain insurance with minimal coverage. We should know that this could be the wrong way to go. It is true that students will need to spend less, but minimal coverage will not provide them with the proper protection. Although they have been careful and cautious, many things could happen to the car and the student. Higher deductible is often associated with full insurance and this is also a good incentive if we want to become a more responsible driver.

These possible mistakes are things that they need to avoid before and after buying car insurance. In order to further reduce car insurance costs, students could look for free car insurance quotes.

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Insurance

Things That May Not Be Included in Pet Insurance

Many families have pets that they adore. They treat pets as part of the family and like other family members, keeping pets healthy can be quite expensive. Medical treatments can be quite costly and it’s a good idea to choose medical insurance. However, before buying pet insurance, there are components that are excluded. We may not know about this fact and we could simply think that the pet insurance provider has failed us. Here are things that may be excluded from the coverage:

  1. Illness that appears within first 30 days after the policy is purchased. This also applies to standard health insurance for people.
  2. Conditions or illnesses which arise due to the process of giving birth or pregnancy
  3. Dog that is included in the Dangerous Animal Acts. If the policy is applied for an especially fierce breed of dog, it will be considered as illegal and void
  4. Dental treatment, but it may depend on the policy
  5. Hereditary conditions and behavioural problems
  6. Pets that need to be killed under the orders of the courts
  7. Illegally imported pets
  8. Travel outside the country, unless specified within the policy. It is considered as a major issue in many claims. Consumers may fail to check this detail when signing their policies. People who intend to bring their pets to other country should re-check their policy and contact the customer support.
  9. Claims related to epidemic diseases, such as rabies
  10. Racing or guard dogs, although they could be covered under special insurance policies

People who plan to purchase pet insurance policy need to bear in mind that the insurer may specify maximum amount of payout. This could depend on the amount of premiums. As an example, insurers may stop paying if they have provided $10,000 for the current year. This amount is sufficient for a major surgery and various medications. Each individual policy is different, so it is important for pet owners to know about the limit of the coverage. This also applies for vehicle and homeowner’s insurance policies too, so pet owners should be aware of such limitation.

Companies may also a set of excess fee and this could depend on the type of coverage. Pet owners should choose the type of coverage that they consider as the best policy and preferably, also the best value for their money. Pet insurance policies are often time-limited, so it means that the fee will be paid for a specific contract length, such as 12 months. This also applies with car insurance. There are also insurers that provide policy for the lifetime of the pet. In this case, pet insurance provider should provide a proper guarantee. When choosing a lifetime pet insurance,

Unusual or rare breeds of pets could also require special insurance policy. Specific species of pets, such as snake could face bigger pet insurance costs. The value of the pet itself has direct effect on the insurance costs. Rare breeds are often expensive, so we need to prepare to pay for higher insurance costs.

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Insurance

7 Things That May Not be Covered By Travel Insurance Providers

When the holiday season is coming, we could plan to spend a relaxing moment with the whole family at distant places. We will prepare our holiday well and we may have chosen reliable and trusted travel agent. We are confident that these professional will arrange our trip and we may think that we have wisely decided where to go. We may have done everything necessary, but not purchasing travel insurance. It means that there’s nothing we can do when the holiday has turned into a disaster. In this case, we will need a travel insurance that can provide us with protection. Travel insurance is an important instrument on our holiday and we should try to choose wisely. We will need to shop around for the best coverage and rate. It is also a good opportunity to obtain guidance from insurance professionals. We should be aware that even if have purchased travel insurance, we shouldn’t feel 100 percent secure. There’s no insurance policy that’s able to cover all risks. It means that we need to evaluate travel insurance policies for things that they cover and don’t cover. Knowing these details should prepare us for bad things that can happen in our trip. It means that we need to find the best coverage for our travel. Here are things that may not be covered by travel insurance provider: Trip cancelled by tour operator: This could be something that’s beyond our control. Many insurers won’t pay us if the trip is cancelled by the tour operator. In this case, the only thing that we can do is to ask the operator for a refund. The cancellation could happen due to internal company issues, so we should choose a reliable operator. War and riot: War and riot don’t happen overnight. If we risk ourselves to travel to potentially dangerous areas, we shouldn’t be surprised if the insurer doesn’t want to pay us. Illness or death of a pet: Owners often need to leave their pets at home country. However, if their pet becomes ill or dies, they may want to cancel the trip. Unfortunately, insurers are not compassionate enough in such situation. We won’t be paid for cancelled trips due to this situation. Psychological issues: If we have psychological issues and want to cancel our trip, companies will exclude this thing from the coverage. This situation may cause us to become more depressed, but it’s something that we need to accept. Marriage problems: Some people may have sudden relationship upheaval before a trip and divorce could even happen. This may sound like a one in a million chance, it could still happen. If one of the spouses files for divorce, the whole vacation plan will be ruined and it needs to be cancelled. This is something that’s not covered by the insurance company. Visa refusal: This may happen sometimes and what we can expect to get is a cash-back from our airline. Again, the travel insurance company won’t agree for such cancellation.

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Insurance

Things That Should Be Included in Insurance Policy

Travel insurance is something that we shouldn’t forget to buy before a trip. When it comes to insurance, we should be very serious about it. In this situation, we shouldn’t take any chance. There are many things that could go wrong in distant countries. It could cost us a lot of money if there are problems, such as injury and sickness. Here are things that should be covered by a travel insurance provider:

Travel Curtailment

Problems can actually happen before we go to the airport. A family member could become injured or ill, causing the curtailment of the trip. This is the basic thing that insurance provider should offer. We must be reimbursed for a portion of the vacation that’s not used.

Travel cancellation

Some travel insurance companies don’t want to reimburse cancellation because of the tour operator have gone out of business. If we don’t get this kind of coverage, we should look elsewhere. Cancellation could also be caused by death in the family, sickness and other things. Travel insurance should be purchased when we book the trip and we need to make sure that it covers us immediately at specific days before departure. We should also know that waiver isn’t really insurance.

Personal Liability

Personal liability is an important part of travel insurance. In case of legal liability, the policy should provide us with proper coverage. Problems could arise out of one’s negligence, which cause 3rd party property damage and/or 3rd party injuries or deaths. Insurer may also provide us coverage against theft or loss of items, such as golfing equipments and laptops.

Delay of Flight and Baggage

This coverage is often included with the “time excess”. It means that the coverage is activated when the delay has exceeded specific time frame. This could vary depending on the insurance company.

Emergency services

It is important for insurance companies to provide coverage for emergency services. This can be very helpful for travellers who want to obtain reliable medical emergency services during unexpected situations, caused by illness or accidents. Emergency assistance could also be provided by medical referrals, interpreter, legal professionals and embassy officials. We should check hospitals that are included in the network when we plan to visit specific areas.

There are types of insurance policies that we may need to choose. As an example, annual policy could provide coverage for the whole year. Another option is to buy insurance per trip basis and this may be a more expensive option, due to the higher premiums. There could also be limitations on how many trips that are covered each year and how many days that are covered for each trip. This should provide us with a clear indication whether the insurance policy is ideal, based on the premium rates and amount of coverage. Another way to reduce costs is by choosing the family vacation insurance. This will cater to immediate families that travel together. The premium is usually lower than insurance policies for individuals.