Colorado Marine Officer

Archive for the ‘insurance’ Category

For some reason I always seem to receive a lot of mail this time of year on the subject of “Life Insurance”. Most want to know the benefits or pitfalls of Term Life Insurance over Permanent Life Insurance.

Term Life Insurance is by far the most cost effective way of securing a life insurance policy available to the general public. Term Life Insurance covers a specific period of time – normally the policy will run for periods of 5, 10, and 20 years. As the age of the insured increases, the cost of the premium will increase. Premiums are calculated on the mortality rate, which is usually dependent on the persons age, sex and whether that person uses tobacco.

This type of policy allows the insured or the owner to pay a set premium for an agreed period. The Insurance company provides monetary benefits to the beneficiary in case of death of the insured during that period. Usually, the benefits received on the death of the insured is income tax free.

There are four parties in term life insurance: (1) the owner is the one who pays the premium; (2) the insured is the one on whose death, a death benefit (face value) will go to the beneficiary; (3) the beneficiary is one who will receive the proceeds of insurance on death of the insured; and (4) the insurer is the company providing the insurance. Depending on the Insurance company you choose, the premiums can be paid monthly, quarterly or annually. For example, Fred pays $50 dollars monthly to XYZ Company for insuring the life of Margaret (his wife) for a period of 10 years. Should Margaret die during the 10 years of the agreement, XYZ company will pay $25,000 to Joe (son of Fred and Margaret). Here the insured is Margaret, the owner of the policy is Fred, the beneficiary is Joe and the insurer is XYZ Company. If Margaret does not die during the 10 years, XYZ Company will not be liable to pay any money to any of the parties involved. Often the owner and the insured are same. That is, a person buys a policy to cover his own death and nominates a beneficiary. Husbands and wives often insure each other in case of death.

What is Term Life Insurance? It is a legal contract with terms and conditions and assumed risks. Sometimes there can be special provisions in the agreement like suicide terms, wherein on suicide of the insured, there is no benefit accrued to the beneficiary. Term Life Insurance is based on two concepts: (1) theory of diminishing responsibility and (2) Buy Term and Invest the Difference (BTID). With Term Life Insurance, the responsibility or liability of the insuring company reduces as the policy reaches its maturity. What makes Term Life Insurance the most cost effective type of insurance available to the public is that there is no cash value at the end of the period. Studies have shown that the mortality rate in Term Life Insurance can be as low as 1%. Hence the concept of BTID.

Rather than going for permanent life insurance (where on the expiry of the agreed period, the owner will accrue some cash benefit and there is a savings component in it) it is considered cheaper to buy term life insurance and take care of the savings components by investing in other areas.

With the present market giving good returns on investments, buying a term life insurance is a more attractive option than permanent life insurance.

Buying life and health insurance products is something that many of us keep putting off for as long as we possibly can. We know that we should buy into these insurance policies but we tend to shelf the idea, preferring to live for today rather than plan for tomorrow. Rather like an ostrich sticking its head in the sand, a lot of us it seems choose to take our chances in the hope that our circumstances will never merit the use of life or health insurance. But it can be an awfully big gamble to take.

Advantages of a life and health insurance policy

As we get older we often become more susceptible to health problems, disability and poor mobility; eventually of course we will all die. Both situations are naturally very distressing for family and dependants. However, the situation can be made worse if the ill / deceased was the main income producer and there are still bills to pay. The last thing anybody wants in this situation is to have the bailiffs knocking at the door, or your home repossessed because you cannot keep up your mortgage repayments.

A life and health insurance policy combines cover for the likely and the inevitable. By opting to take out a life and health insurance policy you and your family will have peace of mind that should you become critically ill or die during the term of the policy, your family and dependants will be financially secure. There will be no worries about bailiffs or repossession orders and through the health insurance side of the policy you’ll be able to select a level of quality health care to suit your needs rather than relying on treatment through the NHS.

Cover provided by a life and health insurance policy

The cover provided by a life and health insurance policy is quite comprehensive. On the life insurance side of the policy you will be able to choose between a term life insurance product and a reducing or decreasing life insurance product.

Term life insurance via the policy pays out a fixed lump sum upon the death of the policyholder, providing the insurance policy is still active. A reducing term life insurance policy is a type of insurance where the amount paid out upon death reduces to zero in line with the policyholder’s mortgage balance, and is suitable only as a financial instrument with which to pay off the mortgage in the event of an early death. If you want to leave your loved ones in complete financial security then a term life option on the policy is recommended.

The health insurance part of the mega insurance policy provides comprehensive health care. It will cover you for all diagnosis, treatment and recovery costs associated with the illnesses, disability and diseases noted on the mega policy. Health insurance also means that you do not have to wait for treatment on the NHS. Instead, you will be able to select when and where you want to receive treatment, so tailoring it to your own convenience.

The price of insurance depends ultimately on the risk the insurer is taking on on behalf of the customer. Simply put, this will depend on the chance of the insured event occurring, and the likely cost of the outcome. The way insurers calculate this risk, and quantify the amount of the premium, is through the use of what is known as actuarial science. Using certain probability and statistical mathematical models, the insurance company can predict with a fair degree of accuracy, the approximate cost of future claims.

For example, supposing a someone wishes to insure their $100,000 home against fire. For argument’s sake, lets assume that 1 in a 1000 homes in this area burn down every year. This would mean that just to break even, on the mathematical model, the insurance company would have to charge $100 a year for the premium. What the insurance company will in fact do is charge something more than $100, say $120. This extra $20 will cover the overhead costs of the insurance company’s operation. It will also cover an amount for profit of the insurance company. The only other way the insurance company generates profits is by investing all the policy premiums it is paid. That way, all the premiums earn interest, or investment returns, while they are in the possession of the insurance company. While this method represents a significant income for the insurance company, the majority of insurance company’s funds do actually come from the payment of premiums.

It has been argued that those who pay premiums and do not have to make a claim lose out by effectively wasting their unused premium. In this sense, the insurance industry can not be held to produce any net gain for society, and therefore, the huge profits they generate are unwarranted. Defenders of insurance companies however claim that the peace of mind they offer to all their customers is a significant societal benefit which they provide. Simply knowing that you will be compensated if disaster strikes you is worth something to people, even if the disaster never strikes.

The funds the insurance company holds, from premiums that have not been claimed for payouts, is called its float. Massive profits can be generated from the float alone. While losses are just as possible as gains with all investments, the profits made from insurance company floats, for the five years ending 2003, was $68.4 billion. In the same period, insurance companies paid out $142.3 billion in insurance claims. Some do not believe that the insurance industry will be able to sustain itself for ever on profits generated by the float and so predict large premium rises for the future.

Insurance provides a way you can protect yourself against unpredictable risks, and therefore it can be very beneficial to you. Accidents, injuries, and old age can deprive you of physical health. Also natural disasters, robberies, or a whole host of different things can cause you to lose your possessions.

Nobody wants to think that unexpected things will happen, but sometimes they do. Insurance is an easy way of protecting yourself against financial losses caused by these problems. With good, comprehensive insurance, you don’t have to worry about the unexpected financial burdens that may be caused by these things.

If you’re just starting to think about insurance coverage, it can all seem a little confusing. There are so many different types of insurance available, and an even bigger variety in the types of policies you can get. The biggest challenge in finding the right insurance policy can be in figuring out what you really need.

A few types of insurance are required by law – if you own a car, for example, the law requires you to have auto insurance. One reason this is important is because if you cause an accident, you are liable for the injury and property damage of other people involved in the accident.

Many other types of insurance, such as life, renters, and travel insurance, are optional. Two common types of insurance are health insurance and home insurance.

Shopping around for insurance is much the same as any other type of shopping. You can compare products and prices, and look at the types of benefits you’re getting for your money. There are a few important things to consider when you’re shopping around for insurance coverage.

First, it’s good to consider whether or not the insurance policy meets your needs. What risks, items, and events does it cover? How much will be paid out if you make a claim – will it be the full cost of the item, or will you get less money as the item depreciates? What isn’t included in the policy? For example, if you insure your home contents, are you covered if you leave the house unlocked?

A second thing to consider is cost – what can you afford, and what will you get for your money? Will you save money with a direct debit payment? Will it cost more to pay monthly than if you pay yearly? Is your premium cost fixed, or is it subject to change?

It’s also very important to look at the flexibility of your policy. What happens if you miss a payment? Does coverage stop immediately, or will you have a “grace” period to give you time to make the payment? Will you receive any money back if you cancel the insurance policy?

Also, if you switch to a new insurer, will you lose coverage for existing problems? This last question is particularly important if you’re considering health insurance, as companies will charge higher premiums if you have an existing health problem.

Finally, remember to review your policy each time you renew it. This can be a very important point since it’s important that your insurance policy continues to meet your needs for as long as you have it.

No.  Collision insurance pays for damages to your car when caused by collision with another vehicle or object. Comprehensive insurance protects you against damage to your own car from such perils as fire, theft, glass damage, windstorm, flood,vandalism and other causes. Un-insured and Under-Insured Motorist coverage can be purchased so it is available to help with medical payments and other losses should an “at-fault driver” not carry enough insurance to cover all damages and recovery.

What is liability insurance?
Liability insurance is coverage for bodily injury you cause to another person or for property damage you cause to another’s property through negligent operation of your vehicle. Liability insurance also affords coverage if the accident was caused by a member of your household driving your vehicle or by a person using your vehicle with your permission.

Does Colorado law specify amounts of liability insurance a driver carries?
The minimum amount of liability insurance required by Colorado law is:

When you are choosing or customizing the right Health Insurance package for you, make sure that you consider your usage of previous health insurance plan. Bear in mind that you have to choose the health insurance that will make a big difference on your monthly price. Also, consider that deductibles are only applied when you are hospitalized and that most Health Insurance plans cover doctor visits, physical exams, prescriptions drugs, and your lab work with a co-pay before you meet the deductible. The hospitals will offer you different payment methods, choose the best one to also have the best amount for deductibles. Some Health Insurance company offers like two years of health insurance guarantee. Thus, this will save you from expensive interest rates. Learn how to play with health insurance deals. Always keep in mind that it is your health at stake here. More over, do this in such a way that you will just save
yourself from too much expenses, but also will help you in every step of the way with regards to your health

We never know what will happen in the future, health insurance is one of protection to anticipate health problems which can be happen the future, because as we know the costs for health care become more and more expensive. If you are interested to have health insurance, we should first know about the health insurance itself.

Many insurance companies offer health insurance around us. They offer their product very intense to the consumers, some of them use advertising in mass media, but some of the also came door to door of customers place to give explanations about their products. Basically, health insurance is an insurance protection for health care costs if the insurance participants experienced problems in the future. Coverage of the insurance are varies, but usually there are some security hospital treatment, drugs, and accidents. Of course, the insurance also provides insurance if participants died.

Usually the insurance company has worked and collaboration with hospitals or other medical services. Therefore, we recommend before deciding insurance options, you should read the rules and list of co-operation with the insurance hospital. Because so many choices, there are some insurance companies are reducing the consequences benefit which make price to pay consumers become cheaper. You should consider the choice of insurance for benefits that will you be get in the future. Also better to ask you relative experience about an insurance company that they every got before, and knowing the benefit that they ever realize when they got health problem. By choosing the good company which base on our family or relative experience will make it more safe to choose good health insurance.

Colorado law concerning insurance coverage for un-insured and under-insured motorists allows consumers to decide whether to purchase optional coverage. However, insurance providers must offer this option with any new or renewal car or motorcycle policy. Although insurance is mandatory for all drivers in Colorado, there are people driving who pay only minimum insurance, or whose insurance has lapsed, or who are driving with no insurance. If you are involved in a serious accident, and the negligent driver has low insurance limits, or does not carry insurance, bodily injury damages are not covered by your policy unless you have purchased this additional insurance.
Where can I get Un-insured or Under-insured motorist coverage for my vehicles? All insurance providers in Colorado must offer un-insured/under-insured motorist coverage as optional coverage on a new or renewal automobile or motorcycle policy. If you reject optional uninsured motorist coverage, you must do so in writing.
The minimum amount offered must be at least equal to the insured’s “bodily injury liability limits” in the primary policy. Ask your insurance agent for information about adding this coverage to your policy or increasing the amount of coverage.

As years pass, Health Insurance becomes one of the most significant things that we need to have. More over, as more people need it, Health Insurance costs continue to grow as well, thus, making Health Insurance companies think of new Health Insurance packages that will suit not only the needs of the consumers but their budget as well. The Health Insurance packages before are already pre-packaged, meaning, consumers can’t alter what is in it or what it offers and that type of packaging can end up paying for things that we are not able to use. But as companies grow, they realize that in order for their Health Insurance packages to be successful, it needs flexibility, so that people can get Health Insurance that will suit their needs and financial capabilities. I have to warn you with companies offering Health Insurance packages that cover everything at a very low cost per-month. You might get scammed. Remember that what you are getting is a Health Insurance and not just simple packages. There fore the prices will be much different from other insurances or maybe more expensive. No matter which company you go with or get your Health Insurance from, the prices will still be a Health Insurance package. The only thing that will make a difference here is how these Health Insurance companies complete their package and offer it in the best price as much as possible. One example of Health Insurance company is the Assurant Health that offers health insurance plans where you design your own plan. It is one and the only Health Insurance Company that offers a customizable Health Insurance package. This company offers more than five plan design and all those type of plans can be customized. By customizing your plans, you have an option of choosing co-pay or no co-pay option, prescription drug coverage deductible, dental discount plan, dental insurance, and many more. If you are after simple to use and easy to understand health Insurance plans then Assurant Health Insurance Company can help you.

There are many people still underestimate the insurance companies. Moreover, insurance related to home or a place to live. Home insurance not yet fully trust can provide benefits, whereas, the external risks of natural disasters floods, landslides, and the recent tornado continued to stake out the building of our house. So, do not delay until the disaster came because the house will also need protection like you do on other valuable objects, such as cars or motorcycles.

Secure. That’s where the role of insurance. Not merely provide physical protection of course, but also the intangible or financial. One of the advantages to customers of insurance is, you as a customer will receive financial compensation if the insured object directly exposed to the risks listed in the summary of the insurance policy. You will also receive the fees the insured had issued after the accident, such as the cost of cleaning the rubble of damaged buildings or architects or surveyors fees to renovate or rebuild their homes after the accident the insured. You will memeroleh excellent after-sales service without having to wait for the catastrophe, such as inflation forecast information as an insurance policy renewal notice to the building and all the contents of a house is insured with the insured value and fair enough, check the condition of the building free of termites or pests attack the house, the latest information from the insurance
and membership automatically.