Comprehensive cover for less

Do not treat travel insurance as an after-thought. If you accept what the travel agents give you, you are likely to pay excessively on your premium. The table below illustrates the savings that can be made by shopping around with a typical travel agent compared with the cheapest travel insurance cover found through the travel insurance comparison tool - in this case, Insure4me.
With Insure4me there is a saving of £62.41 for the same family of four holiday compared to the typical travel agents’ cover. Notably, not only is this policy significantly cheaper but it is also more extensive – with higher limits on medical cover, cancellation cover and baggage cover and an equal amount of personal liability insurance available. Remember that the cheapest will not always be the most extensive and so you should pay close consideration to the levels of cover on offer.
Travel insurance cost for a family of two adults and two children spending two weeks in Menorca.

Medical cover
Personal liability cover
Cancellation cover
Baggage cover
Total Cost
Typical travel agent
£5m
£2m
£3,000
£1,500
£73.56
Insure4me
£10m
£2m
£5,000
£2,500
£11.15
* Sourced by moneysupermarket.com on January 17, 2009. Family of four featuring parents aged 35 & 30 with children aged 10 & eight. Statistics correct for the period Jun 06-20, 2009.
In case you're thinking this is a one-off example and that short-haul family travellers are the only ones that can benefit, think again.
There are huge savings to be made for all types of travellers using the travel insurance comparison tool, including single travellers looking to make lengthy trips abroad. Take a look at this example for a single male traveller spending most of the summer (85 days) travelling across the USA:
Travel insurance cost for a single male traveller, spending 85 days in the USA

Medical cover
Personal liability cover
Cancellation cover
Baggage cover
Total Cost
Typical travel agent
£5m
£2m
£5,000
£1,500
£313.99
Columbus Direct
£10m
£2m
£3,000
£1,500
£46.10
Flexicover Direct
£10m
£2m
£5,000
£2,000
£70.90
* Sourced by moneysupermarket.com on January 17, 2009 and based on a single male traveller aged 26, travelling from Jun 06-Aug 31, 2009.
Again, the savings to be made are significant – the travel agent's cover is more than £250 more expensive as the cheapest policy through the travel insurance comparison tool, though the travel agent's cover does offer a higher level of cancellation cover. However, you can secure a policy with another stand-alone provider – Flexicover Direct – that is still just a fraction of the travel agent's charge and offers more extensive medical and baggage cover, while matching the travel agent in all other areas. Remember to think about the value of your trip and the level of cover you really need before picking the right policy for you.
Using the price comparison tool only takes minutes and it could save you a sizeable amount, as the tables above illustrate. Consequently you should not accept travel insurance as an add-on to a flight or holiday package – treat it as a separate entity and don't accept anything less than the right cover at the right price.

Specialist insurances

There are a number of specialist travel insurance policies tailor-made for your needs. Among the options available are:
Family travel insurance - Combining policies for couples or families generally works out cheaper as the costs are higher 'per trip' than 'per person'.
Over 65s travel insurance - The likes of Select Travel Insurance, Flexi Cover Direct and Travel Insurance Discounts offer great packages for over 65s that compete with big guns like Saga. Prices vary depending on your age group, ie 65-69, 70-75, 75-80 and over 80. Use our over 65s travel insurance price comparison tool to compare policies for over 65s.
Gap-year travel insurance - Also known as backpackers’ insurance or long-stay insurance, these specialist policies can offer incentives that regular policies can't, including cover from three to 24 months. Furthermore, it can also cover working overseas, which is usually necessary for an extended trip and should cover you for cancellations if you fail your exams.
Pre-existing conditions - If you have a serious medical condition (or have had one in the past) you could find yourself receiving a huge travel insurance quote, especially in countries where medical treatment is high. There are a number of specialist insurers out there that will offer assistance such as Direct Travel, Help the Aged, Columbus, Saga and more. If the costs are through the roof it may be an idea to get a quote excluding these pre-existing conditions – though that is obviously at your own risk. Be careful about the judgment you make in those circumstances.
Winter sports insurance - This is an optional extra on a number of policies, but there is specialist insurance available that is ideal for skiing and snowboarding enthusiasts. Remember the cheapest might not be the best – check the policy to ensure all of your needs are covered - for example equipment, different sports, search & rescue, off-piste activities, etc.
To read more about the different types of travel insurance and what they cover read our in-depth travel insurance guide.

Annual multi-trip or single trip travel insurance

Many savvy travellers assume that annual multi-trip travel insurance always offers a better deal than single-trip travel insurance largely because travel agents often charge ridiculous rates for single trip insurance. However, this isn't always the case. In fact there are many single-trip policies that start from as little as a few pounds. A good rule of thumb is that if you make more than two overseas trips a year (or one short-haul trip and one long-haul trip) you are better off with an annual policy as it will generally work out more cost effective. However, single-trip travel insurance is a good idea if you're only going to go away on a short-haul trip once or twice a year.
For those looking to travel to the USA, annual policies often work out cheaper than single-trip policies. This is because medical cover in the USA is high and so buying specifically for this country will increase your premium.

What happens if the holiday company goes bust?

Throughout 2008, the threat of airlines and holiday companies going bust became an increasing concern with the likes of XL Leisure, Zoom and Silverjet among the high-profile casualties of the credit crunch.
Chances are that you will not be covered under a travel insurance policy if a company were to go bust as standard cancellation cover is not sufficient. Instead you need an option within a policy called standard airline failure (SAF) – only around 10 per cent of travel insurers include it in their policies though some do offer it for an additional charge.
There are ways to protect your holiday further against this risk, including booking as part of a package holiday and booking with a credit card. For more details on this subject read our article 'Lessons to learn from XL'

Travel insurance: our money saving tips

Savvy holidaymakers will shop around to make sizeable savings on flights, package holidays and accommodation. However, many of them overlook travel insurance (also known as 'holiday insurance') and simply accept it as an add-on. This is an expensive mistake because some travel agents in the UK can make more profit from selling travel insurance policies than they do from the holidays themselves.
This money saving article will examine how you can save cash on your travel insurance – whether you should choose an annual or single-trip policy, where to go for cheap travel insurance and more.
Quick links:
What do you need to cover?
What happens if the holiday company goes bust?
Annual multi-trip or single trip travel insurance?
Play your cards right
Specialist insurances
Comprehensive cover for less
What do you need to cover?
Before you think about what you need to cover you might ask – 'do I need cover at all'?
Though travel insurance is not mandatory, it is advisable to take out a policy as complaints about lost baggage are a common occurrence and medical bills in foreign countries can be astronomical for non-citizens. Medical claims are frequent with a third of UK tourists suffering from 'Delhi belly' while abroad according to Halifax, with almost two out of five travellers sick for two or more days losing around £42.42 per person a day off the cost of their holiday. If you're going to a country with poor medical facilities, ensure your policy includes repatriation costs.
The levels of cover available vary greatly and there's no point paying for something you don't need. Consequently here is our recommendation for the level of cover you should take out on a typical travel insurance policy:
Medical expenses (£2m)
Personal liability (£1m)
Cancellation (£3,000)
Baggage (£1,500)
Cash (£250)
Also make sure the travel insurance company has a 24hr emergency line and cover for legal costs.
Bear in mind however, that the amount of cover you need depends on your circumstances. For example, if you are taking a low cost flight for less than £50 is there really any point in securing cancellation cover? By the time you have paid off the excess you might only be claiming back £10. Additionally, be wary of ridiculous amounts of medical expenses cover – some will offer as much as £20m, when £2m is nearly always adequate.
It's also important to take out travel insurance as soon as you book your trip – particularly with the cancellation stipulation in mind. If you book your holiday months in advance but plan to wait until the last minute to secure your insurance then you won't be covered if you are forced to make a cancellation – perhaps due to a family bereavement or illness. So book your travel insurance to start immediately after booking your holiday to give yourself peace of mind and make sure your cancellation cover at least matches the cost of your holiday.
Also pay close attention to baggage cover. Typically a policy will cover around £1,500-£2,000 for lost baggage, which is nearly always sufficient. However, many policies have single-item limits, usually ranging from £200-£300, and there may be an excess to pay in the region of £50-£70. According to Age Concern Insurance Services, around a third of Brits don't bother to check the terms and conditions of their policy – so ensure you read the small print thoroughly and look for any notable exclusions.

Travel Insurance

There come times in your life when you want to have a chilling experience in Greenland or you dream of spending sunny afternoons at Bahamas but you are haunted by the very thought of travel hazards. Travel Insurance is just the perfect solution you are looking for to make your dreams come true. Travel Insurance provides you with coverage for the financial losses or medical expenses you incur while traveling either internationally or domestically. Travel Insurance can be a temporary one which you can get while booking your tickets to the destination or it can a Continuous travel insurance which you can get from your travel agent, tour operator, travel insurance companies or the likes.You can be student traveling abroad to study, a hard core adventure freak or a leisure traveler to avail such an insurance plan. The risks covered under the Travel Insurance plan includes: medical, accidental or overseas funeral expenses, damage, loss or theft of personal possessions and baggage, delayed departure or cancellation of flight, legal assistance, delayed baggage etc.One can also avail insurance with additional costs with special cover to risk associated with sports like skiing, traveling to high risk countries and the pre existing diseases. Apart from the single trip, annual trip, individual or family plan the different types of Travel Insurance you can avail are:1. Flight accident Insurance - This provides coverage for any serious accident or death happened while on the flight. It doesn’t include any kind of illness.2. Travel Protection or Trip cancellation plans – It covers the cost of cancellation of the journey owing to some ailment, injury or some other causes. This also provides coverage for damage to the baggage, protect against any loss and covers medical expenses, minor in nature.3. International Medical Insurance- This insurance plan provides you the coverage while you are traveling or living abroad. It may be short term or long term in nature. It reimburses all your medical expenses. To avail all such plans you need not go to a brick and mortar office of any of the insurance companies, you can even do it online. Care must be taken, whether the policy offered matches your needs or not. If you have any query regarding the various insurance schemes or any other related matter, please feel free to contact us.

Making Sense of Travel Insurance: Tips to Understand How to Protect a Vacation Investment

Travelers looking to protect their travel investment and ensure certain items are covered during an upcoming trip can easily be confused when trying to navigate the cluttered travel insurance product marketplace. Travelers should not expect the worst when heading out for a little rest and relaxation; but, they should know that the right travel insurance can safeguard one’s vacation investment, and prepare their family for lost baggage, unexpected illness or whatever else comes their way.
Squaremouth.com’s CEO Chris Harvey provides answers and clarity to its customers’ top questions surrounding the myriad of travel insurance issues and travel insurance products available on the market. Questions ranging from what qualifies as a pre-existing condition to can I purchase travel insurance after I have departed are all covered in this part two Q&A Squaremouth.com series.
Visit Squaremouth’s “Help and Advice” section for answers to these and more questions, as well as an insider’s look at the industry. What travelers learn today about travel insurance may surprise them – and it will leave them better protected.
A Sampling of Squaremouth Customers’ Top Q&As:
What is the latest date I can buy a travel insurance policy?You can typically buy travel insurance up to the day before you leave; however, for policies that include cancellation, it is better to buy as soon as possible after your deposit: the cost is usually the same and you maximize your benefits. If you wait, you run the risk that something will happen before you buy your insurance and you won’t be covered.
What qualifies as a ‘pre-existing’ medical condition?A pre-existing medical condition can be any reason to cancel, interrupt or delay your trip due to a medical condition that existed before you bought insurance. If your heart disease, high blood pressure, asthma or epilepsy is solely controlled though medication, and remains so within what’s called the “look back” period, this will not be deemed ‘pre-existing’ for insurance purposes. Some plans require you to insure the full pre-paid, non-refundable trip cost to be eligible for pre-existing medical condition cover, refer to the policy certificate for full details of the plan you have chosen.
Can I buy insurance after I’ve left on vacation?If you only need medical and medical evacuation coverage, you can buy ‘international medical insurance’ policies during a trip. Standard travel insurance policies must be purchased prior to departure.
What’s the difference between trip ‘cancellation’ and trip ‘interruption’ benefits?The ‘cancellation’ benefit covers you if you have to cancel your trip before your departure date. Trip ‘interruption’ covers you if you have to cut short a trip you are already on.
If my trip is insured on my credit card, should I buy more travel insurance?Check to see exactly what coverage you already have — since what you think you have and what you are actually covered for are usually very different. In fact, credit cards cover accidents but typically exclude illness — which helps if you break a leg skiing but not if you have a heart attack on the green. Usually, you are reimbursed only for what was bought with the card.
Why should I buy insurance independently, rather than through a tour operator?Most experts recommend that you purchase through a third party. A tour operator usually sells policies designed expressly for them. They reap a high commission on those sales, which often leads to higher prices for you and fewer benefits than you will find on the open market.
Using Squaremouth.com, travelers may purchase third party travel insurance products online or call its licensed insurance experts for detailed assistance. The site displays policies in a format that allows for side-by-side comparison, sorts policies by price, benefit or carrier, and instantly lets consumers buy their choice of coverage.

A Game Plan for Your Insurance in 2009

It’s time to mark your calendar, whether it’s made out of card stock and hangs on the walls or if it’s a fancy web calendar, because it’s a new year, and it’s time to make sure that you have the right types of insurance once again. If you have a type of insurance that you don’t need or haven’t re-shopped your insurance policies, you could be wasting a lot of money. If you don’t have insurance that you do need, you could be putting yourself at a lot of risk.
Here are some steps to make sure that your insurance is ready to go for 2009 and beyond:
Check Up on Your Life Insurance - If you’re in relatively good health, mark a date on your online calendar to re-shop your life insurance quotes online. If you have whole-life, consider switching to more affordable term insurance. If you don’t have any children or have adult children that aren’t dependent on your income, ask yourself if you really need life insurance at all. If you have a wife and kids and don’t have any life insurance, you should beat yourself up, get a quality term insurance policy so that your family is protected.
Reconsider Your Car Insurance - If you have a vehicle and are paying for collision and comprehensive insurance, make sure that it actually makes sense to do so. If your vehicle is worth less than $5000, and you’re paying for these extra insurances, you should probably not be wasting your money by insuring something of such little value. If you’ve bought a new car and are only carrying minimal insurance, consider upping it.
Review Your Health Insurance – If you’re getting employer provided health care, you’re probably stuck where you are, but if you buy your own health insurance, you should probably go out and check and make sure you’re with a good company. Not all health insurance companies are the same and there are some that are notorious for turning down claims, and there are others that provide great customer service, so make sure you’re with a good company by reading reviews of it online.
Eliminate Wasteful Policies – If you are paying for pet insurance, mortgage-life insurance, cancer insurance, or any other policy that most people don’t have, you might be insuring something that’s really un-necessary. If you get cancer, your health insurance will pay for the bill, you don’t need a separate policy that will pay your bills if you get cancer. It’s kind of like signing up for both Flickr and Facebook for photo sharing, they do exactly the same thing, so there’s not much need to do both.
Finally, you should check up on yourhome insurancepolicy. Make sure that it will cover the current value of your home. Although the market is down a bit, some have still appreciated significantly in the last 5 years, so make sure the dollar amount on your policy matches the value of your home.

How to Rent a Car and Not Get Ripped Off

Renting a car can often be an expensive proposition. If you’re on vacation, or your car is stuck in the shop getting repaired, you can get stuck paying quite a bit of money renting a car. Fortunately with some due diligence, there’s ways that you can make renting a car much less expensive. Here are some tips to save money on car rentals.
Broken Car? – If your vehicle is at the dealership or in the shop getting fixed, ask if they have a courtesy car that you can borrow. Quite often the place fixing your car will let you borrow one of theirs while your vehicle is getting fixed. When my 95 intrepid was in the shop, the local dealership lent me an ’04 Alero to drive around, and didn’t’ even charge me for it! Not every dealership will be this nice, but it doesn’t hurt to ask, and it sure beats paying for a rental car!
Weekly Rate – In most cases, you won’t be able to borrow a car for free, so if you do have to rent a car, ask about getting a weekly rate. The discount often makes renting a vehicle for a week cheaper than renting a car for five or six days. It might make sense to hold onto the vehicle for an extra day to save some money.
Discounts – Ask the car rental place what sort of discounts they have. A lot of rental companies offer discounts to AAA members and members of other organizations such as the AARP.
Corporate Rates – A lot of larger companies can get a corporate discount. Check with your HR or travel department and see if you’re allowed to get the corporate rate for personal rentals. Be sure to check what it would cost you normally though, sometimes the corporate rate is higher than what you or I would normally pay.
Fill Up The Tank – When you’re done using the vehicle, make sure to fill up the tank to where it was when you got it. Most rental companies charge upwards of a $4.00 per gallon fee to refill the tank! Don’t over fill it though, otherwise you’ll end up paying too much that way too.
Insurance – Make sure that your car insurance covers your usage of a rental car before going. If you think that you’re covered and end up not being covered, you’re exposing yourself to huge amounts of risk and liability. Make sure that your insurance is in order to avoid some very costly bills if you were to get in an accident.
Last Minute Rentals – Quite often car rental companies will lie to try to boost their sales. Sometimes they’ll say they only have full-sized vehicles when they have plenty of less expensive vehicles to go around. If you go in the store, they might lie to you, but their website will be honest.
Take Pictures When Returning – When you return your vehicle, use your cell-phone camera, a digital camera, or a disposable camera and take a few quick pictures of the exterior of the vehicle. This way you’ll have proof that you returned the car in good condition. Car rental companies will take a quick look at the car when you return it, but the contract will say that they have the right to go back later and say it doesn’t. If you have proof that you returned it in good condition, they can’t come back later and try to extort money from you.

Having Trouble Making Your House Payments?

One of the most feared situations in which one can be found is to be in a position of not being able to make mortgage payments. That goes for anyone in any country around the world. Given the economic unrest around the world, other nations like the UK find themselves in a similar predicament as evidence by this report: UK Mortgage Crisis
If you are looking for practical advice, this will serve you well no matter of which country you are a citizen:
Talk About It. Inaction is your enemy. You need to pick up the phone and call your mortgage company. Do not wait until you are months behind. Rather, take action as soon as you think that you might be missing your first mortgage payment. The mortgage companies have already anticipated these issues and have created programs to help those in your situation. Not only do you stand to lose your home if you do not talk about this and confront it, but they are next in line to lose money. This is because they will not get what the house is worth on a foreclosure and the expenses that they have in executing this action will eat any profits they might otherwise realize.
Do Something. Not only do you need to avoid inaction, but you also need to take additional actions beyond contacting your mortgage company. Your family needs to get involved and understand the serious nature of what you are facing. A foreclosure not only puts a mark on your credit, but it also leaves emotional scars as well. It is imperative that you speak openly to your family and then, make a plan to gather money to help meet your financial obligations. Start with a part-time job to bring in extra income. Work extra hours at your existing job. Look for items in your house that you no longer need and sell them. And way that you can uncover in helping you make extra money will help.
Cut Back. Some consumers are having difficulty paying their credit card and other high-interest debt. We see them choosing a debt consolidation program in order to help them. The best advice here is to find a reputable company in which you can trust. There are many unethical and down-right unscrupulous companies that would love to take your money with very little to show in terms of progress in paying down your debt.
This bit of advice has more to do with examining your expenses for areas in which you can make reductions. There are a lot of unnecessary expenses in most households. One example of this might be your cable tv channels. Or you might look at that extra cell phone that really is not all that important. You will be surprised at how little you miss these expenses and how much, in turn you add back to your income by cutting them out. View all of your expenses in this manner.
The time for ease and inaction is gone. Effort and hard work are needed to help you through these times. You will be amazed at the amount of results you will begin to see from your efforts, however.

Insuring Your Future?

The common hue and cry from across our nation has to do with the multitude of bankruptcies and loan defaults. However, joining this chorus are the voices of those in other nations who find themselves in similar circumstances. Evidence of this fallout is all around us as seen in this report from our friends in the UK: UK Report.
Rather than focusing on pointing fingers and laying blame, our time would be better spent talking about how to work ourselves out of our dire circumstances.
Dark Times. We do not need to be reminded of how badly things are becoming. Most of us are already well aware even though we are regaled every day from media outlets. It appears that we are nowhere near the end of this process (believing that it is a process and not a permanent state). The sad truth lies in the numbers of those who have already succumbed to financial collapse and are hurting because of it. But, there are still others who are fighting for survival. This process of keeping our heads above water and making things work provides a challenge all its own. The work place opportunities that have shrunk in certain sectors like manufacturing have caused an increase of major proportions in others marked by the increase in applications of those who have been let go.
Light at the End. Fortunately, history tells us that, as sure as the rising and setting of the sun, we will come out of this. No better example of this exists than in the years following the stock market crash and depression of the late 1920s. Indeed it was World War II which jump-started our economy and began a steady growth pattern that continued for decades. While we look for another agent of change to begin the process, we pray that it will not be another world war. Our main question is “when will it begin to improve?”
Starting Over. Once the engines of finance are roaring again we will see many opportunities from which we can rebuild and profit. In the private sector, demand for products and services on a global level will lead the way. Government’s role in this process will be to make the process easier and shorter by reducing taxes and laws that hold us back.
Whatever your outlook is, you need to do what it takes to survive in the short term, discover ways to save money for important things, and be cognizant of changing fortunes that help you make wise decisions when it comes to insuring your valued assets

How to Protect Collectables and Family Heirlooms

A lot of us have prized possessions, collectables, and other items that we would like to protect and keep safe as long as possible. This might be a favorite baseball card from growing up, movie memorabilia from the early 19th century, or a precious family heirloom. These items may have made it around for a few decades, but you want to make sure that they’ll be around for the next few decades as well.
There are several options for you to protect precious possessions. The first thing that you should do is get some sort of protective case if you can. With baseball cards, you can put them in protective plastic sleeves which will prevent them from being damaged. With three dimensional objects, you can consider getting a transparent plastic case which will hold the item in place and give it a protected outer-coating. This will help minimize its exposure to oxygen and protect it from the elements.
If you have a piece of art that you want to protect, consider letting a museum take care of it for you. Individuals often loan museums famous works of art to keep on displayed, and if your piece of art is in a museum, you know that it’s climate controlled and well-gauged. One of my extended family members has a piece of Charles Schultz art at a local museum and it’s been there for years. It’s in great condition too.
You can also consider getting a fire-proof safe for whatever it is that you want to protect. You never know when you’ll be the victim of a house-fire or another natural disaster. You’ll want to protect your financial documents and precious heirlooms in this event. By keeping the item stored in a fire-proof, sealed case, you will ensure that your collectables are protected from these types of disasters.
Finally, you should also consider whether or not the object of your affection is really worth protecting. You might have an autograph of someone famous that you think is worth a lot of money, but after researching and see the sheer number of autographs for sale from the same person, you might decide that it’s really not that valuable after all.

Should You Get Pet Insurance?

Recently, I spent a rather large sum of money taking my dog to the veterinarian on a Sunday evening, only to discover he had an allergy attack which was simply and quickly cured by a dose of Benadryl. Granted we love our dog and seeing him with a swollen snout and hearing him breathe with obvious effort scared us. Even though we forked over $90 to get the diagnosis, we were grateful he was okay. This wasn’t the case for some other pets that shared the waiting room with us that night.
Many people consider their pets to be a member of the family. In that regard, pets are often spoiled and enjoy the same comforts as their human counterparts. Pet owners have been known to take it to the extreme in some cases. We’ve already read a story or two about the billionaire who left everything to Fluffy the cat or the millionaire dog that now lives alone in a palatial estate. I used to think people who purchased pet insurance were in the same category. However, realistically those who are willing to do whatever it takes to make sure their pet is healthy, may find pet insurance a good policy to have if they otherwise could not afford a large bill in emergency situations. It is relatively inexpensive, costing on average between $15 and $28 a month, depending on the type, age, and breed of the animal. Coverage is generally divided between basic and premium.
When shopping for a plan, you should pay attention to what it will cover, such as which illnesses, injuries, and treatment options are included in the plan. Pre-existing conditions are usually not covered. Most plans will carry a deductible of $50 or more and require a co-payment. Typically, most plans will obligate you to pay the amount in full at the time of service and then file a claim for which you will be reimbursed at a later time. Owners, who wish to insure more than one pet, may be able to get a discount on the insurance plan. There also may be discounted programs available through animal-related organizations.
Purchasing insurance for your pet is really no different than buying it for yourself or your family. You need to shop around and compare plan benefits to get the best policy for you. Make sure the monthly premium payments are within your budget and before signing any agreements, be sure the company is legitimate and you are confident you are clear on what benefits are included.

Benefits of a Debt Free Lifestyle

Eliminating their debt and becoming debt free has become the target of millions of people around the country. Many people have found that the accumulation of debt can carry a significant cost in today’s economic environment. As interest rates continue to rise and obtaining credit becomes more difficult to obtain, maintaining large amounts of debt will cost them even more. The only way for a person to find financial freedom and begin rebuilding their savings is to become debt free as quickly as they can.
Keeping More Of Your MoneyOne of the biggest benefits to reducing credit card debt and becoming debt free is having more of your money to save or spend on other items that you need. Once you have eliminated your debt, you will not be spending a significant portion of your salary to paying for debt and the interest added onto the debt. For many people, paying their debt obligations reduces their take-home pay by a significant amount and prevents them from purchasing the things that they want or need at the time. Once you have eliminated your debt, you will find that you have much more disposable income to spend or save how you like.
No More Interest ChargesThe elimination of interest payment accrual is another great benefit of becoming debt free. Interest on the debt is a large portion of the amount that you will be paying to eliminate the debt and can add a significant amount to the total amount of debt that you owe. As long as you have a debt to pay, the lender will continue to add interest charges to the balance, creating a cycle that can be very difficult to break. Credit card debt is one of the biggest culprits for creating an endless cycle of debt because of the high interest rates associated with the credit cards.
Reduced StressPeople that are able to eliminate their debt often experience less stress because they are able to efficiently manage the financial matters in their lives. Money matters and large debt obligations are cited as some of the greatest causes of conflict in the home for people across the nation, causing arguments and even divorces for people that cannot find a way to manage their debt effectively. The reduction in the stress in your life from eliminating large amounts of debt is a great reason to become debt free as quickly as possible and attempt to remain debt free indefinitely.
Many people do not believe that real debt relief solutions are possible and do not even try to reduce the amount of debt in their lives because they believe that they will be fighting a losing battle. It is possible to eliminate your debt and remain debt free for a significant period of time if the person is serious about taking the steps to eliminate their debt. Debt elimination will not occur overnight, but with the proper actions positive results can be seen in as little as two months.

What are the advantages and disadvantages of life insurance no exam policy?

Life insurance gives you the option to prepare for the worst scenario as early as today. Nobody knows what tomorrow may bring and life insurance protects your loved ones that you may leave behind in the event of your untimely death.
Insurers have their own way of ascertaining their applicants for life insurance coverage. Your health condition is among those factors that affects your eligibility for such coverage. However, not everyone is blessed with perfect health which prevents them from ensuring their family to a sustainable life after an inevitable death. It is in this reason, that most insurance companies have given birth to life insurance no exam policy. Life insurances that don’t require medical exams would be a great option to those who are suffering from a variety of ailments.
With life insurance no exam policy, you are still guaranteed of coverage even when they are currently suffering from an illness since they won’t have to go through a medical examination to determine if they’ll qualify for it. However, it must be remembered that you are still required to honestly state your medical condition. Any concealment would result to a cancellation of your policy thereby endangers your family of not receiving any death benefit.
Life insurance no exam policies are available in term packages only. This means that such coverage is good for a specific period of time. Death benefit is given to the beneficiaries only when the policy holder dies with in the term. If the insured lives beyond the specified term, no death benefit is given out. Moreover, not all applicants get to qualify because of the high risk nature of this type of policy. It is only granted to those whose forms pass through thorough scrutiny made by the insurance carrier.

TYPES OF INSURANCE:

Below are some kinds of insurances.LIFE INSURANCE:
Life insurance policy insures the life of the insured. The insurance company is legally bound to provide a monetary benefit to a decedent's family or the beneficiary after the death of the policyholder. The proceeds are paid to the beneficiary either in a lump sum amount or an annuity
MEDICAL INSURANCE:Medical insurance is also called medclaim. Under this policy the insurance policy pays the amount to the insured for his health purpose. This amount covers the cost of medical treatment.
DISABILITY INSURANCE:There are two types of disability insurance.One is simple disability insurance and the other is total disability insurance. In case of simple disability insurance,a financial support on monthly basis is provided by the insurer to the policy holder if he is unable to work due to an injury or an illness. But permanent disability insurance provides the reimbursement if a person becomes permanently disabled.
GENERAL INSURANCE:It includes automobiles insurance, business insurance, property insurance etc.
Automobile insurance:In UK this insurance is called motor insurance. It compensates the loss or damage occurred to the vehicle. But in United States auto insurance policy is essential to legally operate a vehicle on public roads.
Business insurance:Business insurance protects the businesses against risks of losses and damages and compensates in case of loss
Property insurance:This type of insurance protects the property against the risks like fire, theft etc. This category also includes fire insurance, flood insurance, earthquake insurance etc
Fire Insurance:It is an insurance covering the damage to the property caused by fire.
Flood Insurance:This type of insurance pays the policy holder in case of any loss or damage to the property due to flood. It protects the property against the flooding.
Earthquake Insurance:This insurance compensates any damage to the property caused by earthquake.
IMPORTANCE OF INSURANCE:Insurance plays an important role in sharing the risks of people in an affordable form.It helps the people to quickly recover from damages and losses.

Business Growth Insurance

We are happy to welcome you on our site dedicated entirely to small business insurance. Here you can find all the necessary information you need to know about business insurance and find ways of reducing your small business insurance expenditures. In these hard times of uncertainty when the economy is plagued by the consequences of the financial crisis, saving money on business insurance may actually keep your business on track and help reduce your expenditures. To get the best offers on business insurance, all you have to do is choose the area you work in, and you will be given a list of top insurance companies near you. So stop wasting your time and learn how to save on business insurance today!
Posted by genni at 10:04 PM 0 comments

Variable universal life insurance

Variable Universal Life Insurance (often shortened to VUL) is a type of life insurance that builds a cash value. In a VUL, the cash value can be invested in a wide variety of separate accounts, similar to mutual funds, and the choice of which of the available separate accounts to use is entirely up to the contract owner. The 'variable' component in the name refers to this ability to invest in separate accounts whose values vary—they vary because they are invested in stock and/or bond markets. The 'universal' component in the name refers to the flexibility the owner has in making premium payments. The premiums can vary from nothing in a given month up to maximums defined by the Internal Revenue Code for life insurance. This flexibility is in contrast to whole life insurance that has fixed premium payments that typically cannot be missed without lapsing the policy.
Variable universal life is a type of permanent life insurance, because the death benefit will be paid if the insured dies any time as long as there is sufficient cash value to pay the costs of insurance in the policy. With most if not all VULs, unlike whole life, there is no endowment age (which for whole life is typically 100). This is yet another key advantage of VUL over Whole Life. With a typical whole life policy, the death benefit is limited to the face amount specified in the policy, and at endowment age, the face amount is all that is paid out. Thus with either death or endowment, the insurance company keeps any cash value built up over the years. However, some participating whole life policies offer riders which specify that any dividends paid on the policy be used to purchase "paid up additions" to the policy which increase both the cash value and the death benefit over time. With a VUL policy, the death benefit is the face amount plus the build up of any cash value that occurs (beyond any amount being used to fund the current cost of insurance.)
If investments made in the separate accounts out-perform the general account of the insurance company, a higher rate-of-return can occur than the fixed rates-of-return typical for whole life. The combination over the years of no endowment age, continually increasing death benefit, and if a high rate-of-return is earned in the separate accounts of a VUL policy, this could result in higher value to the owner or beneficiary than that of a whole life policy with the same amounts of money paid in as premiums.
Contents[hide]
1 Regulation of VUL Providers
2 Uses
3 Contract Features
4 Premium Flexibility
4.1 Maximum Premiums
5 Investment choices
6 Tax advantages
7 Risks of Variable Universal Life
8 General Uses of Variable Universal Life
9 Criticisms of Variable Universal Life
10 References
11 External links

Preventing Health Care Fraud and Abuse; Administrative Simplification; Medical Liability Reform

Title II of HIPAA defines numerous offenses relating to health care and sets civil and criminal penalties for them. It also creates several programs to control fraud and abuse within the health care system.However, the most significant provisions of Title II are its Administrative Simplification rules. Title II requires the Department of Health and Human Services (HHS) to draft rules aimed at increasing the efficiency of the health care system by creating standards for the use and dissemination of health care information.
These rules apply to "covered entities" as defined by HIPAA and the HHS. Covered entities include health plans, health care clearinghouses, such as billing services and community health information systems, and health care providers that transmit health care data in a way that is regulated by HIPAA
Per the requirements of Title II, the HHS has promulgated five rules regarding Administrative Simplification: the Privacy Rule, the Transactions and Code Sets Rule, the Security Rule, the Unique identifiers Rule, and the Enforcement Rule.

Health Care Access, Portability, and Renewability

Title I of HIPAA regulates the availability and breadth of group health plans and certain individual health insurance policies. It amended the Employee Retirement Income Security Act, the Public Health Service Act, and the Internal Revenue Code.
Title I also limits restrictions that a group health plan can place on benefits for preexisting conditions. Group health plans may refuse to provide benefits relating to preexisting conditions for a period of 12 months after enrollment in the plan or 18 months in the case of late enrollment.[1] However, individuals may reduce this exclusion period if they had group health plan coverage or health insurance prior to enrolling in the plan. Title I allows individuals to reduce the exclusion period by the amount of time that they had "creditable coverage" prior to enrolling in the plan and after any "significant breaks" in coverage.[2] "Creditable coverage" is defined quite broadly and includes nearly all group and individual health plans, Medicare, and Medicaid.[3] A "significant break" in coverage is defined as any 63 day period without any creditable coverage.[4]
Some health care plans are exempted from Title I requirements, such as long-term health plans and limited-scope plans such as dental or vision plans that are offered separately from the general health plan. However, if such benefits are part of the general health plan, then HIPAA still applies to such benefits. For example, if the new plan offers dental benefits, then it must count creditable continuous coverage under the old health plan towards any of its exclusion periods for dental benefits.
However, an alternate method of calculating creditable continuous coverage is available to the health plan under Title I. That is, 5 categories of health coverage can be considered separately, including dental and vision coverage. Anything not under those 5 categories must use the general calculation (e.g., the beneficiary may be counted with 18 months of general coverage, but only 6 months of dental coverage, because the beneficiary did not have a general health plan that covered dental until 6 months prior to the application date). Unfortunately, since limited-coverage plans are exempt from HIPAA requirements, the odd case exists in which the applicant to a general group health plan cannot obtain certificates of creditable continuous coverage for independent limited-scope plans such as dental to apply towards exclusion periods of the new plan that does include those coverages.
Hidden exclusion periods are not valid under Title I (e.g., "The accident, to be covered, must have occurred while the beneficiary was covered under this exact same health insurance contract"). Such clauses must not be acted upon by the health plan and also must be re-written so that they comply with HIPAA.
To illustrate, suppose someone enrolls in a group health plan on January 1, 2006. This person had previously been insured from January 1, 2004 until February 1, 2005 and from August 1, 2005 until December 31, 2005. To determine how much coverage can be credited against the exclusion period in the new plan, start at the enrollment date and count backwards until you reach a significant break in coverage. So, the five months of coverage between August 1, 2005 and December 31, 2005 clearly counts against the exclusion period. But the period without insurance between February 1, 2005 and August 1, 2005 is greater than 63 days. Thus, this is a significant break in coverage, and any coverage prior to it cannot be deducted from the exclusion period. So, this person could deduct five months from his or her exclusion period, reducing the exclusion period to seven months. Hence, Title I requires that any preexisting condition begin to be covered on August 1, 2006.

Health Insurance Portability and Accountability Act

The Health Insurance Portability and Accountability Act (HIPAA) was enacted by the U.S. Congress in 1996. According to the Centers for Medicare and Medicaid Services (CMS) website, Title I of HIPAA protects health insurance coverage for workers and their families when they change or lose their jobs. Title II of HIPAA, known as the Administrative Simplification (AS) provisions, requires the establishment of national standards for electronic health care transactions and national identifiers for providers, health insurance plans, and employers. It helps people keep their information private.
The Administration Simplification provisions also address the security and privacy of health data. The standards are meant to improve the efficiency and effectiveness of the nation's health care system by encouraging the widespread use of electronic data interchange in the U.S. health care system

Home insurance

Home insurance provides compensation for damage or destruction of a home from disasters. In some geographical areas, the standard insurances excludes certain types of disasters, such as flood and earthquakes, that require additional coverage. Maintenance-related problems are the homeowners' responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets.

Auto insurance

Main article: Vehicle insurance

A wrecked vehicle
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. Auto insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car.
Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.
An auto insurance policy comprises six kinds of coverage. Most countries require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements. Most auto policies are for six months to a year.
In the United States, your insurance company should notify you by mail when it’s time to renew the policy and to pay your premium.

Types of insurance

Any risk that can be quantified can potentially be insured. Specific kinds of risk that may give rise to claims are known as "perils". An insurance policy will set out in detail which perils are covered by the policy and which are not. Below are (non-exhaustive) lists of the many different types of insurance that exist. A single policy may cover risks in one or more of the categories set out below. For example, auto insurance would typically cover both property risk (covering the risk of theft or damage to the car) and liability risk (covering legal claims from causing an accident). A homeowner's insurance policy in the U.S. typically includes property insurance covering damage to the home and the owner's belongings, liability insurance covering certain legal claims against the owner, and even a small amount of coverage for medical expenses of guests who are injured on the owner's property.
Business insurance can be any kind of insurance that protects businesses against risks. Some principal subtypes of business insurance are (a) the various kinds of professional liability insurance, also called professional indemnity insurance, which are discussed below under that name; and (b) the business owner's policy (BOP), which bundles into one policy many of the kinds of coverage that a business owner needs, in a way analogous to how homeowners insurance bundles the coverages that a homeowner needs.

Principles of insurance

Commercially insurable risks typically share seven common characteristics.
A large number of homogeneous exposure units. The vast majority of insurance policies are provided for individual members of very large classes. Automobile insurance, for example, covered about 175 million automobiles in the United States in 2004.The existence of a large number of homogeneous exposure units allows insurers to benefit from the so-called “law of large numbers,” which in effect states that as the number of exposure units increases, the actual results are increasingly likely to become close to expected results. There are exceptions to this criterion. Lloyd's of London is famous for insuring the life or health of actors, actresses and sports figures. Satellite Launch insurance covers events that are infrequent. Large commercial property policies may insure exceptional properties for which there are no ‘homogeneous’ exposure units. Despite failing on this criterion, many exposures like these are generally considered to be insurable.
Definite Loss. The event that gives rise to the loss that is subject to the insured, at least in principle, take place at a known time, in a known place, and from a known cause. The classic example is death of an insured person on a life insurance policy. Fire, automobile accidents, and worker injuries may all easily meet this criterion. Other types of losses may only be definite in theory. Occupational disease, for instance, may involve prolonged exposure to injurious conditions where no specific time, place or cause is identifiable. Ideally, the time, place and cause of a loss should be clear enough that a reasonable person, with sufficient information, could objectively verify all three elements.
Accidental Loss. The event that constitutes the trigger of a claim should be fortuitous, or at least outside the control of the beneficiary of the insurance. The loss should be ‘pure,’ in the sense that it results from an event for which there is only the opportunity for cost. Events that contain speculative elements, such as ordinary business risks, are generally not considered insurable.
Large Loss. The size of the loss must be meaningful from the perspective of the insured. Insurance premiums need to cover both the expected cost of losses, plus the cost of issuing and administering the policy, adjusting losses, and supplying the capital needed to reasonably assure that the insurer will be able to pay claims. For small losses these latter costs may be several times the size of the expected cost of losses. There is little point in paying such costs unless the protection offered has real value to a buyer.
Affordable Premium. If the likelihood of an insured event is so high, or the cost of the event so large, that the resulting premium is large relative to the amount of protection offered, it is not likely that anyone will buy insurance, even if on offer. Further, as the accounting profession formally recognizes in financial accounting standards, the premium cannot be so large that there is not a reasonable chance of a significant loss to the insurer. If there is no such chance of loss, the transaction may have the form of insurance, but not the substance. (See the U.S. Financial Accounting Standards Board standard number 113)
Calculable Loss. There are two elements that must be at least estimable, if not formally calculable: the probability of loss, and the attendant cost. Probability of loss is generally an empirical exercise, while cost has more to do with the ability of a reasonable person in possession of a copy of the insurance policy and a proof of loss associated with a claim presented under that policy to make a reasonably definite and objective evaluation of the amount of the loss recoverable as a result of the claim.
Limited risk of catastrophically large losses. The essential risk is often aggregation. If the same event can cause losses to numerous policyholders of the same insurer, the ability of that insurer to issue policies becomes constrained, not by factors surrounding the individual characteristics of a given policyholder, but by the factors surrounding the sum of all policyholders so exposed. Typically, insurers prefer to limit their exposure to a loss from a single event to some small portion of their capital base, on the order of 5 percent. Where the loss can be aggregated, or an individual policy could produce exceptionally large claims, the capital constraint will restrict an insurer's appetite for additional policyholders. The classic example is earthquake insurance, where the ability of an underwriter to issue a new policy depends on the number and size of the policies that it has already underwritten. Wind insurance in hurricane zones, particularly along coast lines, is another example of this phenomenon. In extreme cases, the aggregation can affect the entire industry, since the combined capital of insurers and reinsurers can be small compared to the needs of potential policyholders in areas exposed to aggregation risk. In commercial fire insurance it is possible to find single properties whose total exposed value is well in excess of any individual insurer’s capital constraint. Such properties are generally shared among several insurers, or are insured by a single insurer who syndicates the risk into the reinsurance market.