The Real Deal About Insurance

Do you really understand what insurance is? The common perception is that insurance is something you are either forced to have or you take to hedge your losses. Therefore most people obtain insurance begrudgingly. They feel like they haven't gotten their monies worth unless their company pays them something back.

Now let me tell you what insurance really is. Insurance is western civilizations answer to socialism or communism. In a socialistic or commune society the responsibility of the welfare of the individual is pooled by the entire society. It works great on paper, until you do the long math. When your income is taxed to pay your share of society's debt, the government is charged with administering this task and everyone knows governments are inefficient and can never run as well as companies. Governments have bureaucracies, companies trim the fat.

Paying money to an insurance company and pooling it with other policy holders is for your benefit and if you never have to use this benefit you will be better off in the long run. If you put in inflated or fraudulent claims you are just going to cause yourself and everyone else to have a rate increase. That rate increase is going to make someone else feel like they "have to get something for their money" and do the same thing as you. Rates will get higher and higher as we have seen them do in the past. This is called insurance inflation. If people only put in the claims that were necessary, rates would not go up or they would only go up nominally after periods of higher natural disaster, and they go lower after periods of normality. This is because insurance is actuarial rated based on very sophisticated formulas and statistics that take potential losses into consideration way before they ever happen.

An insurance company knows that during times of economic recession, claims start to rise. Everyone thinks they are the first to invent some kind of scheme or idea to make money from their insurance company. The truth is there is an old saying that pre-dates (although is mentioned in) the first biblical books that says "there is nothing new under the sun."

The best way to get money back from an insurance company is by not paying too much in the first place. There are thousand of companies to choose from and that fosters a lot of competition. Competition breeds lower prices, you just have to look for it. Shop your insurances out very thoroughly every year. To make it easier, call on independent agents or brokers that represent you and do business with many different companies. Make sure you are only getting rate quotes from A rated carriers or better and make sure your coverage's are quoted "apples to apples." Companies that are not complacent to the type of fraud I mentioned earlier are apt to have much better rates than companies that just drop you after your first significant claim. Look for a company with stricter underwriting guidelines. This will put you in with better company and you will pay tens of thousands of dollars less in insurance premiums over the years. Apply this savings towards your debt and live a better lifestyle than the people whom think they are smarter than a multi-billion dollar corporation and are always trying to make a quick buck on the backs of other policy holders.

For more information please visit Financial Sense Makes Cents or Hudson Valley Agents

David J. Bonne a 20 year insurance and financial planning professional. He is co-owner and Vice President of Hudson Valley Agents in Walden NY, a multi-line independent insurance agency. David specializes in helping people protect their wealth, assets, and life via disciplined common sense tactics and proper insurance and financial tools.

David J Bonne is a 20 year insurance and financial planning professional. David is co-owner and Vice President of Hudson Valley Agents in Walden NY and specializes in helping people protect their life and wealth. Please visit his blog at http://freetips.financial-cents.net ot go to his web site at http://www.hvagents.com

Travel Insurance For Business Trips

If you have ever tried to acquire a business travel policy, you will realize that they are fairly different from the regular travel policies. Insurance companies take cognizance of the fact that travel for business purposes may involve different kinds of risks as compared to travel for pleasure. Which is why they customize the business travel policies to match the risk assessment.

In a business trip, one is likely to carry certain kinds of equipment for work related purposes. Laptops, Palmtops, printers, cell phones, additional luggage to make a few are certain kinds of equipment that one may carry while on a business trip. Since these are high value items they are at a considerable high risk of theft and damage.

While developing a business travel insurance plan there are various factors to take into account to ensure that all the possible risks are covered and assessed. Some of the elements that are considered are the time taken to travel, the destinations that the business personnel is visiting and the purpose of travel. To give an example, a journalist traveling to Afghanistan will probably be offered a business travel plan with a higher premium as compared to a sales executive traveling to Boston to make a sales pitch. Some insurance companies may offer joint insurance plans.

Before and after you have chosen a particular insurance plan make sure that you go over the ‘booklet’ provided along with the insurance documents. A few minutes spent on the information may prove to be very useful if the need arises to file a claim.

This booklet contains useful data like the policy number that needs to be quoted in all communication that is made with the insurance company. Some insurance companies insist that the policyholder contact the company within a certain period of time of an incident if a claim is required. Which is why it is vital that this small book be with you all the time. Some companies have a 24 hour hotline which can be accessed in times of an emergency and if cash is required immediately. If the claim is mad on the basis of a medical situation relevant proof and documentation shall be required. Avoid sending the original bills and prescriptions and send only copies unless if is mandatory and mentioned in the policy guidelines.

Be careful also to review the document before deciding where you plan to stay since some companies stipulate that the policyholder should stay in company provided accommodation to be eligible for the claim.

Know your insurance better to be able to utilize it more efficiently and judiciously!

To find more information about business and business travel insurance visit http://comprehensive-business.com

6 Things You Can Do to Obtain Home Insurance Smoothly

Here’s a fact: Insurance companies do not want to sell insurance to people who are more likely to use it. Unfortunately, if you live in an area prone to flooding or earthquakes, there’s nothing much you can do to reduce damages. However, there are things you have power over. These include:

1)Remove items that are considered "potential hazards" - When you are exposed to things on your property that could cause liability claims, most insurance companies would have doubts of writing a policy. If your home has an unfenced swimming pool, a water slide, diving board or even a trampoline, you may be refused of coverage. However, some companies may still provide you with insurance, but you will have to pay more.

2)Make sure your home is not prone to "unsafe conditions" - Insurance companies check if you have installed fire-resistance materials and systems in constructing your home. The insurers would also inspect if you maintain your property regularly. When agents or insurers are deciding if they would write you a policy or renew your expiring insurance, signs of disrepair and unsafe conditions such as leafy roofs, cracked steps can result in problems obtaining insurance.

3)Train your pets - Insurance companies check if your pets are well mannered. This is because unleashed pets, unfriendly dogs or mean cats are potential causes of liability claims. As such, it is best to train your dogs early if you plan to purchase home insurance.

4)Get rid of your wood-burning stoves - Although wood-burning stoves have become the king of your kitchens, insurance companies feel that homes with such stoves are in more risk of fire. Most of the time, if your home is located far from a fire station, you may be rejected. However, for insurance companies that sell you a policy, be prepared to pay higher premiums.

5)Review your history of filed claims - As unfair as this may seem, most insurance companies deny coverage if you have filed heavy claims within several years. The insurers see this as a sign that you don’t do your part to protect your personal belongings and home. If you have filed several small claims every six months, you may likely be denied as insurance companies may feel you are engaging in insurance claims. To make sure your case is heard before being rejected, hire an independent agent to make a case to prove you are indeed a responsible homeowner and just happen to have a string of bad luck.

If you still considered all these tips to ensure a smooth insurance application, but still get rejected, check if your state provides a FAIR plan (Fair Access to Insurance Requirements), which could help people who has been turned down several times by various insurers. While these plans are usually more expensive compared to standard policies, this could probably be your last resort.

Shannon Kietzman is the author. She helps others determine how much is home insurance a month and how to best meet their home insurance needs through content creation.

Find Affordable Health Insurance

If you don't have health insurance, because of a layoff or other change in work, a divorce or a preexisting medical conditioned, don't give up. Efforts to expand health insurance coverage reportedly are becoming quite common. Proposals have been introduced in many states, and Illinois has approved, a plan to offer low-cost health insurance to children that began July 1, 2006.

Even under current law, it's possible to find coverage for you and your family, usually at a reasonable cost. Options to consider if you need health coverage but are too young (under age 65) to qualify for Medicare...

COBRA/STATE PLANS

For people who recently have lost group coverage, a smart choice may be to purchase a policy under COBRA, the temporary health benefits provision of the Consolidated Omnibus Budget Reconciliation Act of 1986. According to the rules, you can continue to be covered under your employer's insurance for up to 18 months at up to 102% of the former policy's expenses, depending on your circumstances. This amount includes both the employee and the employer's share, if your employer splits the expense with workers, as many do. (The extra 2% is for administrative costs.) COBRA usually is available only from companies that have at least 20 employees. (Your spouse and dependent children can be covered for up to 36 months.)

Paying the full tab can be a shock to someone who is accustomed to having an employer pick up most of the cost of insurance. However, while COBRA policies often are more expensive than those purchased privately on an individual basis, they usually have more comprehensive benefits.

What to do: Apply for COBRA through your previous employer. To get more information on COBRA, contact the US Department of Labor's Employee Benefits Security Administration, 866-444-3272.

Helpful: Many states require smaller companies and others not bound by COBRA to offer some type of continuation of coverage to employees. For a database on health-care coverage options by state call 703-276-0220.

INDIVIDUAL POLICIES

Individual insurance is regulated on a state-by-state basis. You must buy a policy sold in your home state. Rules for individual health insurance outside a group plan vary among states.

*Medical underwriting. In the vast majority of states, insurance costs are based on the applicant's health status. He/she will be assigned a rate class by the company and put into a pool with similar individuals who will be charged the same premium. Also, many states allow health insurers to issue elimination riders to people who have preexisting medical conditions. These riders allow you the option of picking a policy that covers all conditions or a less expensive policy that excludes certain preexisting conditions.

*Pricing based on guaranteed issue/community rating. "Guaranteed issue" laws state that a health insurance company cannot reject you for coverage based on any preexisting medical condition. Community rating laws say that everyone in the same geographic area pays the same price for coverage, regardless of age or health. It may be easier for people with medical problems to obtain coverage in states with such laws, but there is a price involved.

These laws make individual coverage in the state more expensive, on average, because insurers do not have the medical information to appropriately spread risk among the applicants. In these states, healthy young people are much less likely to purchase coverage. This makes coverage more expensive for those who do buy it.

Examples: A healthy, 25-year-old man living in the New Jersey suburb of Haddonfield could pay $467.16 per month for a comprehensive individual policy with a $1,000 deductible. If he lived in Pennsylvania in the suburb of Wayne (20 miles away), then he could buy the same policy for only $58.86 a month. A healthy, 60-year-old man in Wayne would pay $289.82 for that policy. A man of the same age living in Haddonfield would be charged the same $467.16 a month that the 25-year-old pays for the plan. These vast price differences are due to the community rating and guaranteed issue laws affecting individual insurance in New Jersey.

*Using rates obtained from eHealthlnsurance. All rates are subject to change.

What to do: Purchase private coverage from an independent health insurance agent licensed in your state.

HEALTH SAVINGS ACCOUNTS

For a tax-efficient way to pay for individual health insurance, consider a health savings account (HSA). You must choose a policy with a high insurance deductible - at least $ 1,000 for individuals ($2,000 for families) up to a maximum of $2,700 for individuals ($5,450 for families) as of 2006. Every year, you make your tax-deductible contribution up to the amount of the deductible. You withdraw money from the account to cover out-of-pocket medical expenses.

For people who create HSAs but don't need to tap them, the accounts can function like individual retirement accounts. The money can be invested to grow tax-deferred. After age 65, you can withdraw the money for any reason, but you will have to pay income tax if it is used for non qualified expenses.

COVERAGE FOR SERIOUS MEDICAL PROBLEMS

In most states, you can be turned down for individual coverage if you have a serious medical condition (e.g., HIV or cancer). Fortunately, most states have developed some way to provide hard-to-insure people with access to private individual health insurance coverage.

Thirty-three states provide high-risk pools. You can apply for high-risk pool coverage through an insurance agent or directly to the state. Coverage costs more than private coverage because all the people in the pool have serious medical problems, but the rates are capped, usually between 125% and 200% of the average individual market premium. For instance, in a state where a healthy person pays $100 a month, someone of the same age in the risk pool might pay $150.

Twelve states use other means of providing hard-to-insure people with access to individual coverage (for instance, requiring coverage through a designated health insurance company of last resort). Five states - Arizona, Delaware, Georgia, Hawaii and Nevada - offer no individual coverage options for those who are hard to insure.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about Health Insurance? Be sure to see what Carson Danfield reveals at Health Insurance

How To Save On Homeowners Insurance

Don't confuse the market value of your house with rebuilding costs.

The land under your house isn't at risk from theft, windstorm, fire and the other hazards covered in your homeowner's policy. So don't include its value in deciding how much homeowners insurance to buy. Just as an example, let's say that your house has a current market value of $250,000. Of that price, perhaps $100,000 may be directly related to the value of the land, while the remaining $150,000 would be the actual value of the house.

If you insure your house for the full market value of $250,000, you're wasting $100,000 of insurance on the land. Instead, you should insure your home for the amount it would take to replace the house, but don't include the cost of the land. This could result in a substantial reduction in the cost of your premiums.

Increase Your Deductible

A deductible is the amount of money you pay towards a loss before your insurance policy begins to pay a claim. The higher deductible, the more money you can save on your premiums. In most cases, you'll probably want a deductible of at least $500. If you can afford to increase your deductible to $1,000, you may save as much as 20 to 25 percent on your premiums.

Buy your home and car policies from the same insurer

Many insurance companies that sell homeowners insurance also provide car insurance. If you buy both policies from the same company, they may give you a discount that could be as high as 15 to 20%. Be certain to verify that the combined price is lower than buying the different coverage's from different companies.

Make your home less risky

Check with your insurance agent or company representative what you can do to make your home more resistant to hail, windstorms and other natural disasters. You might find that you can save on your premiums by adding window shutters, reinforcing your roof or installing stronger roofing materials. Older homes can be modified to make them better able to withstand earthquakes. In addition, consider modernizing your heating, cooling, plumbing and electrical systems to reduce the risk of fire and water damage.

Improve your home security

You can usually get discounts of at least 5 percent by installing a smoke detector, burglar alarm or dead-bolt locks. Some companies offer to cut your premium by as much as 15 or 20 percent if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations. These systems are usually advertised at attractive prices for equipment and installation, along with a monthly monitoring fee.

Before you buy such a system, make sure your insurance company offers a premium discount and evaluate the value of adding such refinements.

Check out all available discounts

Many insurance companies offer several types of discounts. For example, since retired people normally stay at home more than working people, they're less likely to be burglarized and may detect fires sooner, too. Retired people also have more time for keep their homes in good condition. If you're at least 55 years old and retired, you may qualify for a discount of up to 10 percent at some companies. Some employers and professional associations administer group insurance programs that may offer an even better deal than you can get on your own.

Keep a good credit record

Establishing a solid credit history can cut your insurance costs. More and more insurance companies are using credit information to price homeowner's insurance policies. In many states, your insurance company must tell you about any adverse action, such as a higher rate, at which time you should verify the accuracy of the information on which the insurer relied.

Be sure to protect your credit rating - pay your bills on time, don't obtain more credit than you need and keep your credit balances as low as possible. Check your credit record on a regular basis and have any errors corrected promptly so that your record remains accurate.

Stick with the same company

If you've kept your insurance coverage with the same company for several years, you may receive a special discount for being a loyal, long-term policyholder. Some insurance companies will reduce their premiums by 5 percent if you stay with them for three to five years and by 10 percent if you remain a policyholder for six years or more. Be sure to periodically compare your premium price with that of other companies to be certain that you're getting the best deal.

Review the limits in your policy and the value of your possessions yearly

You don't want to purchase insurance coverage you don't need, but you do want to make sure that you do have sufficient coverage. For example, you may be insuring a rare painting that you purchased years ago for $5,000. Perhaps that painting has now appreciated in value to $15,000, so you'll want to increase your insurance coverage to include the actual current value.

On the other hand, you may be insuring belongings that have declined in value over the years, so a downward adjustment in insurance coverage may be in order.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about how to save on homeowners insurance? Be sure to see what Carson Danfield reveals at Home Owners Insurance

Specialty Insurance - Is It Worth Having?

Insurance marketers become creative geniuses when it comes to thinking up policies to pitch to consumers. Here is the lowdown on some newer types - and if they are worthwhile...

POLICIES WORTH HAVING

*Trip insurance. Many people don't realize that their health insurance may not cover them if they become ill when traveling overseas. Trip insurance reimburses you for emergency medical expenses and a medical evacuation. It also covers cancellation or interruption of a trip due to your illness or bad weather, such as a hurricane or tornado, as well as luggage that is lost or damaged in transit.

Coverage typically runs between $100 and $200 per trip, depending on the destination and the traveler's age.

*Pet health insurance. This insurance is becoming cost-effective as more advanced and expensive treatments are made available for pets. A pacemaker for a dog could cost several thousand dollars.

Ask your veterinarian about the best policies. You can obtain coverage for dogs, cats and other critters. Premiums can run $200 to $1,000, depending on the pet's age and breed and where you live.

*Credit card surveillance. Although it isn't really insurance, credit card monitoring protection through your bank card issuer ensures that you are notified of any change in your credit profile - unusual spending, card applications or changes of address.

Cost: $30 to $75 a year.

New trend: Identity theft insurance. A credit card company will protect you against phony charges - you are liable for only up to $50. But they won't help you fix the mess that identity theft often creates. Identity theft insurance reimburses you for expenses such as lost pay while you are straightening things out.

According to industry research, the average ID theft victim spends hundreds of hours restoring his/her financial reputation. If you have credit card surveillance, you probably don't need personal identity theft coverage unless you have many cardholders in your household or business. Annual coverage costs vary. Check with your credit card issuer or insurance company. A growing number of employers also are offering identity theft insurance as a perk.

POLICIES TO AVOID

*Terrorism insurance. This insurance started to appear after 9/11 to play into Americans' fears of a terrorist attack. Insurance that focuses strictly on terrorism is geared toward businesses and covers such costs as relocating a firm or replacing damaged equipment. Even then, business-interruption insurance is a better option - it also covers fires, floods, etc.

*Water line protection. Very few people need this niche coverage, which pays for damage caused by leaks in the water service line that runs from the curb valve into the home in towns that have public water. The coverage is worth considering only if your neighbors have experienced problems due to age of the pipes or geological issues.

Also: Check for duplicate coverage.

Example: One of my friends had to have his house jacked up to replace the water pipes below it, but he didn't need water line insurance because the $11,000 cost was partially covered by his homeowner's insurance.

*Accidental death and dismemberment insurance. This insurance pays out if you are killed accidentally. Don't waste your money on it. Regular life insurance covers you when you die.

*Disease-specific coverage, such as cancer insurance, also should be avoided.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about Specialty Insurance? Be sure to see what Carson Danfield reveals at Specialty Insurance

Overcoming Big Insurer Excuses for Not Paying Claims

To combat fraud, many insurance companies are getting tougher on claims submitted by consumers.

But while some insurers delay payment to raise justifiable questions about claims, others drag their feet or deny payment for no apparent reason.

Here are the most common excuses insurance companies give when limiting or denying auto, home and health insurance claims - and the best ways to fight back...

AUTO INSURANCE

*"Your car isn't worth as much as you say it is." Insurance companies base their car-value assumptions on industry data that is similar to the information found in Kelly Blue Book. Keep in mind that Kelly Blue Book provides only average values of vehicles and that individual cars can be worth significantly more or less, depending on their condition and included extras.

Examples: Your car may have been garaged ... have low mileage ... or have expensive options, such as a sunroof or a V8 engine.

To support your claim for higher reimbursement: Check the classified ads in your local paper. If you find a half dozen cars that are similar to yours selling for more than the value listed in Kelly Blue Book, collect as much data as you can and send it to your insurer. Your insurer may relent.

*"Your car can be repaired for a lot less." Some insurers set out to reduce all claims payments by a set percentage, even when the amounts are legitimate. Of course, most insurers won't say this openly. Instead, the company might say that the $3,500 estimate you received is too high and that your car can be repaired for only $2,500.

Helpful: Don't be intimidated. If you visit three repair shops, and the lowest bid was $3,500, insist that your insurer pay the claim in full. And don't be pushed into using a cheap repair shop chosen by the insurer. I've never seen a policy that requires policyholders to go to a particular repair shop.

If your insurer still balks, say you'll turn the matter over to your attorney. This may make the insurer pay up. If the difference between you and your insurer is a few thousand dollars, it will cost the company more to hire a lawyer than to pay you off.

HOMEONVNEWS INSURANCE

*"The problem cited in the claim is due to previous damage or normal wear and tear." This is a favorite ploy of insurers that want to avoid paying up.

Solution: Challenge the company to prove that it does not cover these claims. Ask where in the policy it says so. Also, ask for proof it was "wear and tear" or previous damage. Insurance policies are written by the insurance company. If the language they rely upon is vague or ambiguous, you can collect - courts hold that ambiguity is always against the insurance company.

Example: A couple from Texas had their roof and window air conditioner damaged by a hailstorm. The company's adjuster acknowledged that the air conditioner had been hurt by hail but insisted the hail hadn't damaged the already old roof.

The couple canvassed their neighbors and found that other families' insurers had paid for new roofs. The couple called the insurer with the information. The insurer then reversed itself, knowing that its policy language was the same as that of the other insurance companies that paid.

Under the typical homeowner's policy, you are entitled to the full cost of repairing or replacing a damaged roof, even if the roof is old.

*"You may fix or replace the damage for less than you claim." Some insurers will use this line as a trial balloon to see how low it can cut a claims payout before you complain. As long as you have a replacement policy and can show that it is impossible to replace an item for the amount the insurer is offering, stick to your guns.

*"We're delaying payment because the cause of the claim is suspicious." It's bad enough your house was damaged by fire, but now the insurer is holding up payment because it has questions about the fire's cause.

It's one thing if payment is temporarily delayed because of an investigation to rule out arson. But if arson is suspected, the fire department usually conducts its own inquiry.

If the fire department hasn't found it necessary to check the origin of the fire, ask the company directly if it is accusing you of arson.

If the answer is no, tell the insurer you expect the money to be forthcoming promptly or you will refer the matter to your attorney. If the answer is yes, call your lawyer immediately.

Important: Don't worry if you inadvertently caused the fire. People cause fires every year by falling asleep in bed while they're smoking, and many companies pay up anyway.

*"No receipts, no coverage". Ideally, it's best to have a written inventory of everything in your house.

But if you neglected to follow through on this chore, don't despair. Homeowner's policies don't require that you have receipts for damaged or stolen items, only that you show some proof of what you owned.

Helpful: Go through family photos, looking for pictures that show the items. You can also ask relatives and friends to check their photos for pictures that show people grouped around specific furniture and paintings.

Also, get sworn statements from friends and relatives and from merchants who sold you the items, attesting to the existence of those items.

HEALTH INSURANCE

*"We won't pay because this treatment isn't medically necessary." This is particularly troublesome with certain HMOs, which can be very tightfisted about what procedures they will cover.

Helpful: Put pressure on the insurer, starting with your doctor. Also, contact your employer's benefits department, and then call the insurer. If this doesn't work, say you'll contact your state insurance department or the media.

*"This treatment isn't covered because it's experimental." The problem is that policies can be ambiguous about which treatments are considered experimental and which are considered standard.

Helpful: Enlist the help of your physician in defending treatments.

Example: One insurer recently refused to pay for a migraine sufferer's stay at the Mayo Clinic because it said the treatment she was given was experimental.

Her doctor referred to his medical school textbooks, which described the treatment he ordered as "classic." He also found that in 49 other states, the treatment was considered routine.

The insurer reversed its decision.

*"We're not paying the entire bill because your doctor charges too much." Insurers balk at paying bills that exceed the "usual and customary" fees for the service in an area. The problem is determining what is usual and customary in your region because insurers are notoriously closemouthed about this.

Helpful: Call your doctor's office, and ask the billing manager how much other insurance companies have paid for the same procedure.

Also find out whether your doctor did multiple procedures but billed you as if it was just a single one. Clarifying the bill can often lead to a larger payment from the insurance company.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about Overcoming Big Insurer Excuses for Not Paying Claims? Be sure to see what Carson Danfield reveals at Big Insurer Excuses

Life Insurance to Meet Your Very Specific Needs

When most people set out to buy life insurance, they choose either a term or cash-value policy. But policy choices and strategies are much, much more diverse today. Here are some strategies to consider..

L0WERING THE COST OF INSURANCE

*Combination of term and cash-value policies. Buying both types of policies is ideal when an individual or family wants a large amount of coverage and the savings benefit of a cash-value policy, but can't afford the high premiums.

Owning two types of insurance can work for first-time insurance buyers - or when owners of an existing cash-value policy want more coverage, but at an affordable price.

*First-to-die policy. Dual-career couples save 20% in premiums by buying one first-to-die policy, rather than two separate policies.

How it works: Death benefits are paid upon the death of the first spouse.

First-to-die policies can be cash-value or blended policies. Be sure the savings feature is worthwhile for your needs and that the policy's interest rate is favorable.

ESTATE PLANING

Life insurance can protect heirs in the event of death of the breadwinner and can help them pay estate taxes.

*Second-to-die policy. When one spouse dies, federal estate taxes are avoided because of the unlimited marital deduction. The death of the second spouse is another matter, and estate taxes can run as high as 55%. A second-to-die policy is indirectly used to pay the estate taxes due when the second spouse dies.

Important: Neither spouse can own this policy, or enjoy any of the powers of ownership, such as the right to change beneficiaries, The policy must be in the name of an heir or trust, which must also pay the policy's premiums.

*Credit shelter trust. This is to protect the lifetime exclusion of the first spouse to die, which is $1,000,000. A credit shelter trust is often used when an estate exceeds the exclusion.

Strategy: Name the credit shelter trust under your will as the beneficiary of your life insurance, or the surviving spouse may be able to disclaim proceeds into the credit shelter trust. Assets avoid taxes in both spouses' estates and are still available to survivors.

OTHER SITUATIONS

*Cash-value insurance policies offer protection against creditors in many states. Check with your lawyer or accountant. Another way to protect assets from creditors is to have a trust own your cash-value insurance policy. Trusts are untouchable when creditors seek assets.

*Funding divorce commitments. A spouse negotiating for alimony may want to have that covered by a term life insurance policy on the paying spouse. The beneficiary should own the policy to maintain control.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about Life Insurance? Be sure to see what Carson Danfield reveals at Life Insurance

The Disability Insurance Trap

One out of every four Americans will miss at least 90 consecutive days of work because of an injury or sickness between the ages of 35 and 65. Disability insurance can help prevent such medical disasters from becoming financial disasters.

However, disability insurance is usually obtained through deeply flawed group policies offered by employers. Employees with such group coverage often aren't adequately protected.

Here's what to watch out for and how to get the best coverage...

PROBLEMS WITH EMPLOYER PLANS

The employer-sponsored disability policies in which all or part of the premiums are paid by the employer, generally claim to replace 60% or 70% of an employee's income when he/she is disabled beyond the typical 90 or 180 day elimination (or waiting) period. However, these promises are empty and deceptive. Insurers are allowed to reduce the benefits they pay dollar for dollar for any benefits the disabled employee receives from his state workers' compensation program ... Social Security disability program... the state's disability program ... and even cash settlements received for pain and suffering if the employee was injured in an accident that caused his disability.

Even worse: Any money these insurers pay out to group disability policy holders is taxed. Beneficiaries end up with only a small fraction of what they thought they were insured for.

Other drawbacks...

- An employer might eliminate its disability plan at any time.

- An employee may not be able to take this disability policy with him if he quits or is fired.

- If a claim is ultimately denied, an employee in the group plan must appeal the denial in a timely manner, then sue in federal court to recover only his past-due benefits, some interest and attorney fees if the court allows. The horror of group disability litigation is that there is no trial by jury, no recovery for emotional distress and no opportunity to seek punitive damages under the Employee Retirement Income Security Act (ERISA). The carrier is required to pay only what it owed - this is like robbing a bank and returning the money years later without any penalty or jail time.

ADVANTAGES OF INDIVIDUAL COVERAGE

It is best to purchase your own individual disability coverage through an insurance agent, whether or not you are covered through your employer's group plan. You will be given the maximum benefit you're owed, tax free, even if you get other forms of compensation for your injury ... you, not your employer, have control over the coverage ... and if necessary, you can take the insurer to court, get a trial by jury and seek not only the benefits owed but also punitive damages if your state allows.

The downside is cost. A 55-year-old man in good health might spend $280 per month for a well-designed disability policy that replaces 60% of wages up to $4,000 a month after a 90 day waiting period. A 55-year-old woman might spend around $325 (women are more likely to become disabled, thus their coverage will cost more). For a 45-year-old man, the cost might be $199 a month. For a woman, it might be $281 a month.

Two ways to cut the cost of your coverage...

*Increase your waiting period from 90 to 180 days. This should reduce premiums by about 20% compared with a 90-day wait, but this strategy makes sense only if you can afford to live half a year without income. With a six month waiting period, you begin to accrue payable benefits in the seventh month and would get a check at the 225th-day (seven-and-a-half month) mark.

- Women should ask their agents to check whether unisex policies are available. These might cost 10% to 20% less.

MUST-HAVE FEATURES

Expect an insurer to offer coverage for up to two-thirds of your current wages, not to exceed $15,000 per month.

Three provisions that you also should insist on having...

-"Own occupation" protection. Without this provision, your insurer could reduce benefits by the amount you're capable of earning, even in a line of work that doesn't appeal to you.

Example: A stroke makes it impossible for a woman to continue her career as a surgeon. Without "own occupation" protection, her disability insurer might argue that she still could work as a janitor and then reduce her benefits by the $2,000 a month she could earn in that job. With "own occupation" protection, the woman receives her full benefit for as long as she can't perform surgery.

- Non cancelable and guaranteed renewable to age 65. With this clause in the contract, your insurance company cannot terminate your coverage until you turn 65, even if your health deteriorates. Guaranteed renewable policies also have fixed premiums.

- Total disability and partial disability coverage. Some individual policies provide for both total and partial disability benefits.

Example: A woman has a heart attack but still can work 20 hours per week. If her policy covers only total disability, her insurer will not owe her a dime. With total and partial coverage, she will be compensated based on the percentage of her income that she has lost.

RECOMMENDED FEATURES

- Cost-of-living adjustments. This feature increases your monthly benefits after disability strikes to keep pace with inflation. It's highly recommended for those younger than 40 but not vital for those over 50 - inflation won't have as much time to deplete the value of their benefits. Expect a policy that provides an annual 3% to 6% increase in benefits to cost 8% to 12% more than the disability policy that doesn't provide such an increase.

- Future increase option. It makes sense to add on more disability coverage over the course of your career to keep up with your increasing wages. A future increase option gives you the right to buy more coverage at the initial contract rate, even if your health declines. This provision typically isn't available past age 50.

WHAT TO AVOID

- "Except fraud" provision. If an "except fraud" clause is written into your contract, your insurance company can attempt to take away your policy at any time by claiming that you materially misstated your medical, financial or occupational status when you applied for coverage. Insurance companies sometimes use this clause to deny benefits to honest policyholders when they find the slightest hint of an error on the application.

Better: Ask for a "two-year contestability policy" instead. After your contract has been in force for two years, the insurance company cannot contest any statements in your application.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years.

Want to learn more about the disability insurance trap? Be sure to see what Carson Danfield reveals at Insurance Trap

The benefits of personal accident insurance

Most people think that they will be lucky enough not to fall victim to an accident. But the truth is that accidents can and do happen to anybody at anytime - usually when least expected. For example, did you know that in the UK every year 2.7 million people turn up at hospital accident and emergency departments seeking treatment because of an accident at home. Or that almost 4,000 people die each year in accidents at home*?

If you are unlucky enough to have an accident that results in a serious injury, you may not be able to return to work quickly. And, if you have to take an extended leave of absence from work, your income could suffer greatly. The good news is that personal accident plans can offer tax free, lump sum cash payments to help you out financially �" if you’ve suffered from a loss of income or in some other way - should the unexpected happen.

Many insurers offer standalone personal accident insurance policies; however, limited personal accident cover is also often included in motor and travel insurance policies. The benefits of standalone policies is that the cash payments are larger and there are usually fewer restrictions. For example, if the cover is under your travel insurance, the accident must have occurred whilst travelling.

Personal accident plans usually provide cover for a range of injuries arising from accidents, including permanent disablement. This could include, but is not limited to, quadriplegia, paraplegia, total and permanent loss of use of one or two limbs and complete and irreversible loss of sight in one or both eyes. Some plans will also provide cover for fractures, dislocations and even burns.

Furthermore, if you have to spend time in hospital after an accident, some plans will also provide cash benefits for hospitalisation as well. If an accident resulted in one of the above injuries, the cash payments could be used towards the cost of replacing your lost income through to the cost of a holiday to aid in your recuperation.

Most accident plans will also include an accidental death benefit providing a generous cash lump sum to your estate in the event of death caused by an accident, while plans only offering accidental death benefits are also available. The amount paid can vary and often plans will have different levels of cover. Some plans even pay out differently depending on the circumstances of the accident (i.e. accidental death as a result of a road traffic accident). Cash payments with this cover can help your family with the often unexpected financial burdens brought about from such things as a loss of income, funeral expenses and even to cover the potential impact on your loved ones' incomes during bereavement.

Innovation has played a part in the personal accident market with insurers targeting specific groups of people with different versions of personal accident plans. For example, as slips and trips are more common amongst individuals aged 60+, one insurer has offered affordable cover for fractures and dislocations as a result of accidents, with multipliers if injury is caused as a result of a personal assault. If you fit into this age group and took out this cover, you could find the cash payment particularly useful if your accident resulted in a hip fracture that may severely restrict mobility. What’s more, with hip fractures generally having long waiting lists in the NHS, the same insurer even offers a choice of a cash payment or immediate private hospital treatment for the injury �" the choice is yours.

Children can also usually be covered on personal accident plans but often they only receive a portion of the adult benefit (i.e. 50% of adult benefit). Some personal accident plans also provide telephone helplines for you to call upon should you need support during such a difficult time. And, the standalone plans are relatively low-cost starting from around £5 a month for a single policy.

There is no denying the fact that anyone can be a victim of a personal accident and the financial after effects could, in turn, be great. But luckily, there are low-cost personal accident plans available to provide you with real peace of mind �" whether you choose a comprehensive personal accident plan or an accidental death cover plan.

Andrew Regan is an online, freelance author from Scotland. He is a keen rugby player and enjoys travelling.

Common Life Insurance Traps and How to Avoid Them

Beware these common traps made with life insurance that can reduce its value to your family ... or leave you paying a bundle to the IRS.

Trap: Owning too much life insurance, too long. During the years you are working and raising a family, you probably need a substantial amount of life insurance to protect your family against the possible loss of your income.

But as your senior years approach - with your children grown, the mortgage paid off and retirement accounts funded - your insurance needs may be sharply reduced.

For many, the justification for owning life insurance is to finance estate taxes. But this need has been reduced by recent tax law changes that increase the estate and gift tax exemption amount for individuals to $1 million.

By paying for unneeded insurance protection, you pass up the opportunity to acquire higher yield investments.

STRATEGY

Review your insurance needs in light of changes in your personal circumstances and in your estate tax exposure. If you find that you own too much insurance, consider..

*Swapping your life insurance for a tax-deferred annuity issued by an insurance company to obtain an increased investment return. This can be arranged through a tax-free exchange, which enables you to avoid any taxable gain on the disposition of the insurance policy.

*Donating your insurance policy to charity. You'll get a tax deduction for the cost basis in the policy-generally, the amount of premiums you've paid into it.

*Making a gift of the policy to your child or grandchild. The policy benefit will be tax free to the recipient, giving the child a valuable head start on financial security. The gift also will remove the policy from your taxable estate, assuming you survive three years after the gift.

You can avoid paying gift tax on the transfer by utilizing your annual gift tax exclusion (currently $10,000 per recipient, or $20,000 when gifts are made by a married couple) and, if necessary, using part of your estate and gift tax exempt amount.

*Cashing in the policy. This will put cash in your pocket, but you will realize taxable income to the extent that the amount received for the policy exceeds what you paid into it through premiums.

Estate tax planning: If you find you still need some life insurance to finance potential estate taxes, consider using a second-to-die policy that covers both you and your spouse and pays its benefit on the death of the survivor.

The estate tax marital deduction lets all of one spouse's assets pass estate tax free to the surviving spouse, so it is on the death of the surviving spouse that a couple's estate tax liability becomes due.

A second-to-die policy can provide funds to finance such an estate tax bill at substantially less cost than that of buying two insurance policies to cover each spouse separately.

TRAPS

*Owning insurance on your own life. This can cause insurance proceeds to be subject to estate tax at rates of up to 55%, because when you die owning a policy on your own life the proceeds are included in your taxable estate.

Avoid this trap by having the policy beneficiary own it, or by creating a life insurance trust to hold the policy and distribute the proceeds according to your instructions.

You can still finance the premiums on the policy by making gifts to the policy owner (beneficiary or trust), using your annual gift tax exclusion to shelter the gifts from tax.

Benefit: When insurance on your life is owned by the beneficiary, the insurance proceeds will be estate and income tax free.

Related mistakes to avoid...

*Owning insurance on your own life and naming your spouse as your beneficiary. The insurance proceeds will escape estate tax on your death due to the unlimited marital deduction - but if your spouse dies owning the proceeds; they will be taxable in his/her estate.

*Owning insurance on one person's life and naming a third person as beneficiary.

Example: One spouse owns insurance on the other spouse's life, and names a child as beneficiary.

The trap here is that because the policy owner controls the designation of the beneficiary, the payment of the benefit to the beneficiary is deemed to be a taxable gift made by the policy owner.

Again, avoid this trap by having the beneficiary own the life insurance policy, or by having a life insurance trust own the policy.

Important: If you set up a life insurance trust to own insurance, be sure the trust is drafted by a specialist in the area. Trust documents drafted by nonspecialists can easily contain mistaken bad language that fails to comply with technical requirements, thus causing the trust to fail.

*Borrowing against life insurance. It can be tempting to borrow against life insurance, because policy loans can provide a tax-free source of cash and carry a low interest rate.

But a couple of traps may result from borrowing against insurance...

*When you borrow against insurance you reduce the insurance benefit for which you presumably bought the insurance, leaving your family more exposed to financial risk.

Dangerous scenario: Typically, interest on a loan against insurance is not paid in cash but is charged against the policy. If the loan is not repaid and the interest compounds, the loan can grow until it equals the policy's value. Then the policy will terminate, and you will realize taxable income in the amount of the unpaid loan (a "forgiven debt") minus your basis in the policy even though you receive no cash income with which to pay the tax.

*If you borrow against insurance and then transfer the policy to another person, the policy benefit may become subject to income tax.

Wby: When a policy that has been borrowed against is transferred by gift, the recipient is deemed to have purchased the policy by assuming the outstanding loan obligation, with the amount of the assumed loan being the purchase price.

And, under the Tax Code, when an existing life insurance policy is purchased the policy benefit becomes taxable income to the purchaser if the purchase price exceeds the donor's basis in the policy.

Example: A parent owns a $500,000 insurance policy on his/her own life that has a $100,000 cash value. He has a cost basis of $60,000 in the policy. He borrows $90,000 from the policy to reduce its cash value to $10,000, then makes a gift of the policy to a child.

The result is that the child is deemed to have purchased the policy by assuming the $90,000 loan obligation. Therefore $410,000 of the policy benefit will be taxable income to the child when paid out, instead of being tax free.

Bottom line: Loans cause problems, so it's best not to take out loans against life insurance.

If you've already taken out loans against life insurance, review them with an expert for any unexpected problems they may cause.

Carson Danfield is an "Under the Radar" Internet Entrepreneur who's been quietly selling various products for the last 8 years. Although you've probably never heard of him there's a good chance you've visited his websites in the past and even purchased some of his products.

Want to learn more about Life Insurance Traps? Be sure to see what Carson Danfield reveals at Life Insurance Traps

Choosing the Right Pet Insurance Company

If you are a pet owner then you should seriously consider getting the proper pet insurance to cover the expenses involved in taking care of an animal. This is the best way to insure that you will be able to afford the unexpected expenses and will be able to provide the best care possible for your pet.

Animals are just like humans in that they are prone to diseases and accidents. Veterinary care is extremely expensive and will get even more expensive for emergency services. If your pet happens to need emergency services then you will be very glad to have pet insurance to help cover these costs. There are a few things that you can do to ensure that you have chosen the right policy for your needs and your pet's needs.

First of all, it is important to know everything you can about different policies. You need to compare different policies and what services they offer for a certain price. Know what your needs are and pick a policy in accordance with those needs. Be sure to carefully read through all terms and conditions on a few different policies. There are many hidden things in insurance policies so be sure that you are choosing exactly what you are looking for.

As a word of advice, never choose the policy with the cheapest price. It is more important to focus on the amount of coverage that the insurance will provide. There is no point in paying even for cheap insurance if it won't cover any of your expenses in the future. Often times if your animal gets sick then you end up paying more with the cheap insurance than you do with insurance that has higher premiums.

Just like with people, veterinarians believe that preventative care is the best prevention for diseases. It is important that your insurance will provide the necessary vaccinations, the necessary screenings and will provide all routine care that your veterinarian recommends. Be sure that you actually take your pet in for the proper screenings and vaccinations as well. If you are going to pay for the insurance that covers them you really want to make sure that you utilize this coverage. In addition, these vaccines are vital in making sure that your pet stays as healthy as possible.

If you truly love your pet and want it to be in your family for a long time then it is important to take care of its health. In order to never be caught in a situation where you cannot afford the care you should get pet insurance. This way you know that you will always be covered. Pet insurance premiums are generally quite low and generally cover many things. They will cover anything from annual vaccinations to cancer treatments. This is the best way that caring for your pet will not put you in financial hardship.

Milos Pesic is a veterinary doctor who runs a highly popular and comprehensive Pet Insurance web site. If you want to know more about Pet insurance, Dog insurance, Cat insurance, Pet insurance Online and much more visit his site at: http://pet-insurance.need-to-know.net

Comparing Pet Insurance Plans

Pet insurance has become quite a popular thing to invest in for pet owners. Pet insurance is similar to having human health insurance. In case your pet gets ill you have the insurance to help you handle the medical bills. However, if you are thinking about health insurance you need to examine all the possibilities that are offered. Be sure to compare the offerings and their prices.

There are more and more options from different insurance companies for pet insurance. Therefore it is smart to do the same research you would when looking for human health insurance. There are so many different variations so you need to know what you are looking for. It is easiest to do this research online as it is easy and the best place to get all the information you need.

There are a lot of websites that have comparison lists. These lists have all the insurance companies and the plans they provide. This way you can go through the list rather easily and be able to choose more wisely because you have all the information. Pick a few key points that you are not willing to compromise on which will help you eliminate many of the plans. Then you can focus on the other extras that you can get and at what price.

Different people desire different things out of their pet insurance. Be sure that you know exactly what you are getting when you get pet insurance. For example, it is important to know if kennel costs will be covered if you decide to board your pet for a weekend. You should also know if you can take your pet to any doctor that you choose or if there is only a certain approved list of doctors. Preventative care is also on the minds of many pet owners. Many of them want to have the insurance cover all check ups, shots and any other measures taken to prevent illness. These are just some of the many small details that you need to look into when buying pet insurance.

Not only do you need to look at the services offered by the specific companies but you also need to look into the company itself. It is important that they have a good reputation and are credible. You can often find this out by asking your veterinarian for good recommendations or ask if they have ever worked with a specific company before. They are the best source to tell you how an insurance company works and well they service their customers.

There are many people who simply take the easy road and get the cheapest insurance that they can. However, if you do this you'll end up regretting it in the end. You want to make sure your new pet insurance covers the costs that you have anticipated and that the company will work with you when a claim needs to be made.

Milos Pesic is a veterinary doctor who runs a highly popular and comprehensive Pet Insurance web site. If you want to know more about Pet insurance, Dog insurance, Cat insurance, Pet insurance Online and much more visit his site at: http://pet-insurance.need-to-know.net