The Seven Things Seniors Should Know About FDIC Insurance – FREE Information
April 28, 2009
Older Americans put their money… and their trust… in FDIC-insured bank accounts because they want peace of mind about the savings they’ve worked so hard over the years to accumulate. Here are a few things senior citizens should know and remember about FDIC insurance.
1. The basic insurance limit is $100,000 per depositor per insured bank. If you or your family has $100,000 or less in all of your deposit accounts at the same insured bank, you don’t need to worry about your insurance coverage. Your funds are fully insured. Your deposits in separately chartered banks are separately insured, even if the banks are affiliated, such as belonging to the same parent company.
2. You may qualify for more than $100,000 in coverage at one insured bank if you own deposit accounts in different ownership categories. There are several different ownership categories, but the most common for consumers are single ownership accounts (for one owner), joint ownership accounts (for two or more people), self-directed retirement accounts (Individual Retirement Accounts and Keogh accounts for which you choose how and where the money is deposited) and revocable trusts (a deposit account saying the funds will pass to one or more named beneficiaries when the owner dies). Deposits in different ownership categories are separately insured. That means one person could have far more than $100,000 of FDIC insurance coverage at the same bank if the funds are in separate ownership categories. Click here if you need this info about Tesco Car Insurance Quote.
3. A death or divorce in the family can reduce the FDIC insurance coverage. Let’s say two people own an account and one dies. The FDIC’s rules allow a six-month grace period after a depositor’s death to give survivors or estate executors a chance to restructure accounts. But if you fail to act within six months, you run the risk of the accounts going over the $100,000 limit.
Example: A husband and wife have a joint account with a “right of survivorship,” a common provision in joint accounts specifying that if one person dies the other will own all the money. The account totals $150,000, which is fully insured because there are two owners (giving them up to $200,000 of coverage). But if one of the two co-owners dies and the surviving spouse doesn’t change the account within six months, the $150,000 deposit automatically would be insured to only $100,000 as the surviving spouse’s single-ownership account, along with any other accounts in that category at the bank. The result: $50,000 or more would be over the insurance limit and at risk of loss if the bank failed.
Also be aware that the death or divorce of a beneficiary on certain trust accounts can reduce the insurance coverage immediately. There is no six-month grace period in those situations.
4. No depositor has lost a single cent of FDIC-insured funds as a result of a failure. FDIC insurance only comes into play when an FDIC-insured banking institution fails. And fortunately, bank failures are rare nowadays. That’s largely because all FDIC-insured banking institutions must meet high standards for financial strength and stability. But if your bank were to fail, FDIC insurance would cover your deposit accounts, dollar for dollar, including principal and accrued interest, up to the insurance limit. If your bank fails and you have deposits above the $100,000 federal insurance limit, you may be able to recover some or, in rare cases, all of your uninsured funds. However, the overwhelming majority of depositors at failed institutions are within the $100,000 insurance limit.
5. The FDIC’s deposit insurance guarantee is rock solid. As of mid-year 2005, the FDIC had $48 billion in reserves to protect depositors. Some people say they’ve been told (usually by marketers of investments that compete with bank deposits) that the FDIC doesn’t have the resources to cover depositors’ insured funds if an unprecedented number of banks were to fail. That’s false information.
6. The FDIC pays depositors promptly after the failure of an insured bank. Most insurance payments are made within a few days, usually by the next business day after the bank is closed. Don’t believe the misinformation being spread by some investment sellers who claim that the FDIC takes years to pay insured depositors.
7. You are responsible for knowing your deposit insurance coverage.
Know the rules, protect your money. Read more other articles about Hartford CT Insurance.
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The Secret Guide To Motor Insurance And Car Insurance
April 28, 2009
Whether you’re buying clothing or shopping for car insurance, you always want to get the best value for your money. So, what’s the secret to finding reliable, affordable car insurance?
Shop around for the best deal. Get several car insurance quotes from different insurance companies before you buy or renew your policy. Insurance companies vary, so you could get a better deal somewhere else.
Don’t be afraid to switch. You can switch insurance companies whenever you want, even if it’s in the middle of your car insurance policy term. If you find a better rate, switch and save. Click here if you need this info about Tesco Car Insurance.
There are three types of Car Insurance:
Third party, which covers your legal liability if you damage someone else’s physical property (walls, vehicles, gates etc.) due to a driving accident.
Third party, Fire and Theft offers third party cover and adds on two useful pieces of cover – fire damage to and theft of your car, including damage caused by a theft or attempted theft.
A fully comprehensive policy includes Third Party, Fire and Theft and in addition will pay for damage to your own vehicle in the event of an accident. There are many extras, too, for example it will also give you cover when you drive other people’s cars – useful if you borrow someone’s car and their insurance does not cover you.
The following factors affect what you pay for your premiums.
Your age, your job, your driving record.
The car you drive. The higher the value of the vehicle, the higher the premium. High performance vehicles are also more expensive to insure than their stock standard equivalents.
Then there’s the location of the car. You’ll pay more if you keep the car in a high-crime area or park it on the street at night.
What you use the car for. You’ll pay more if, for example, you plan to use the car for business delivery purposes.
Then there is the excess structure that you choose. The higher the excess the lower the premiums.
Gear Locks, Satellite Tracking – will help reduce your premiums
If you are buying a new car ? Don’t forget to shop around for Insurance!
For a first-time car buyer, the process can be a difficult decision. Many buyers are not aware of the fact that they need to have insurance before driving their new car off the showroom floor. The financial institutions providing the finance for the purchase will insist on this, in order to ensure that their new asset is protected.
Don’t just accept the first offer that is given to you, get at least 3 quotes before making your decision. “Many banks or finance institutions are affiliated to an insurance company or brokerage firm. New buyers therefore may find themselves feeling pressurized to take insurance cover through the bank’s preferred supplier. It is important to know that this cannot be enforced and the decision lies with the client. This makes it essential to shop around for competitive quotes, to ensure that you are offered the best deal – from the perspective of both cover and price. For young drivers, this becomes imperative, as they are often penalized for their age and lack of driving experience, translating into higher premiums and excesses.”
Cash buyers are not exempt from the need to insure their new car. Thefts and hijackings are still a reality and the growing number of cars on the road puts all drivers at increased risk of being involved in an accident. Choosing an insurance product that is suitable in terms of budget, value adds, cover and excess payable is a careful decision that, with the right advice, can be made sensibly and safely.
Many young, first-time buyers find that purchasing insurance through a direct insurer is actually a simple process.
They are likely to receive a tailored insurance solution catering for their specific needs – with direct insurance, clients don’t pay any additional charges for getting what they want. Any driver about to embark on purchasing a new vehicle would do well to consider the time- and cost-saving benefits of direct insurance.” Read more other articles about Hartford Insurance.
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The Secret Behind Insurance Protection
April 27, 2009
At some stage in your life, it’s time to buy graded whole life insurance, you have a lot to ponder. The price cannot be the sole deciding factor. Most people begin looking for return of premium term life insurance by comparing the dollar amount, but this cost is really more challenging to add up because, with life insurance, you have to count on many things. For one thing, you are calculating the true cost over time.
Try factoring in inflation, and interest, it gets difficult to give an genuine estimation based on cost per thousand of death benefit. You’ll need to do more in the way of figuring out the honest “rate of return” and the honest rate of return on your savings and how that could affect your future.
The bottom line is, when it comes to insurance, the amount of premium is not the most important thing. Most rates are fantastically competitive when all of the elements are included.
Anyway, what good is a low rate if the company that you are paying a low rate to can’t afford to pay when your family files a claim? At that point, your family would probably have been better off with a higher premium. Make sure you follow a few simple guidelines so that your family comes out ahead.
Ask other people what they think of the company
When you get a quote you may have more than one insurer to choose from. Due to the automation available through the internet, we can now search complaint records for just about any company in the world. This is true of insurance companies since there is a scare of fraud on the part of the insurance company and the insured. See if you find any negative press on a national claims database to see if any of your potential companies has an outrageous amount.
Remember that all companies have had complaints at one time or another. Look at the amount of business and the number of complaints. For example if a company has 100 complaints but has issued over a million policies then it will be quite a bit more reputable than a company that has 25 complaints but that has only issued 13,000 policies. You can check with the State insurance commissioner
If the company has a low amount of complaints it is because it is very likely to pay on any filed claims. We hope these resources can help you get started and feel much more comfortable in analyzing your quote.
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Useful Information For You To Consider About Health Insurance
April 23, 2009
If you are tired of thinking about the best online term insurance prices, then you’re not going to like thinking about hospital insurance either. However, many people find that they need it.
Hospital expense insurance covers the expenses acquired on a patient’s hospital stay, provided he/she already has pre-existing coverage in this regard.
Nobody has ever lived a lifetime without a bout of illness and a consequent hospital stay. This is something foreseeable as no one is perfectly unaffected to illnesses. And every hospital stay one has brings with the discharge order a mind boggling bill – the psychological effect of which is more than enough to send back the fitness-regained patient for another few days for treatment in the same hospital.
When it comes to health related issues, no one could keep a check on the cash flow. After all, in such circumstances, it is the question of life and health that supersedes the financial issue. But with the proper insurance in place, one could rest easy knowing that they do not face certain impending financial disaster that could always be one illness away.
Hospital expense insurance is one form of the health insurance that pays for the expenses incurred for the patient’s room and board costs. The coverage also compensates financially for incidental expenses such as x-rays, the use of the operating room, anesthesia, drugs and laboratory charges.
When it comes to payment, some insurance providers prefer to pay the claim in an indemnity style where the insurer pays a preset dollar amount for each day that the patient is hospitalized. Some players, on the other hand, pay specific percentages of the hospital bill, some of the most common plans having 80% insurance coverage while the patient pays 20% of the final bill, or still some others paying different splits like 70/30 or 90/10 regardless of what the amount the bill indicates.
The lower the percentage that the insurance policy picks up of the final bill, the lower the premiums will be for that policy. Proportionally, the higher the percentage, the higher the cost. These costs will also vary by company.
Generally, at the time of the payment, the insured is paid a claim that amounts to a fixed percentage of the policy amount minus the deductibles. Distinct hospital expense insurance policies follow different schemes and hence the payable amount varies a lot. The client should ideally see if the “stop-loss” or “coinsurance maximum,” which limits the insured person’s liability is at an acceptable limit. If the right policy is in place, the out-of-pocket cost to the client will be minimal. Also look for those insurance providers who offer a maximum benefit cap.
Practically, there are a large number of hospital expense insurance policies which are rejected on technical grounds. The reality is that, for the insurance companies, their aim is to make earnings and by denying one a hospital expense insurance policy claim, actually the company is gaining profits in larger numbers. Insufficiency or disagreement in the information provided by the customer is one of the grounds in which they deny a insurance policy claim. Hence, the customer should ensure that he/she provides the correct and updated information to the insurance companies.
Also, the customer must be thorough with the rules and regulations that define the hospital expense insurance policy. See to it that all relevant documents and papers are in place. Remember, a missed piece of documentation is a valid ground for refusal of a claim.
Before buying any hospital expense insurance policy, the customer ideally should be doing a bit of research on the insurance scene of his/her place of stay. One can also go by references if you have a trusted relative or you know anybody who has successfully claimed the hospital expense insurance before. In this regard, browsing the insurance company’s informational booklets facilitates for an easy comparison of synonymous policies and their rates.
To conclude, how much the customer may need to shell out along side the claim amount so as to pay the hospital bill directly depends upon the hospital expense insurance policy he/she picked out. And that requires a good practical application of discerning senses and yes, a bit of common sense as well. While it might not be as easy as great online term insurance rates, it isn’t as hard as you might think.
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Discount Auto Insurance – Is It Important To Compare Prices?
April 22, 2009
With the state of today’s economy, many people are finding it necessary to cut back on their monthly budgets as saving money is now more important than ever. All of the bills which a person has are still going to exist, yet finding the best way to cut back on the amount paid for them is important. This is why discount auto insurance is becoming more popular than ever.
Cheaper auto insurance is one of the best resources that a person can turn to when they are looking to save more money. Discount auto insurance means that a person will reduce the amount of money that they are paying on a monthly basis which over time can build up. This auto insurance is discounted because it is offered with less coverage than more inclusive plans may be.
When a person is planning on getting Discount Auto Insurance, however, they should be very careful to make sure that they will still have enough coverage to protect themselves. Finding an accurate price range for auto insurance payments should be taken care of and then finding the plan with the most amount of coverage available for that price is recommended.
The amount of coverage which is necessary for a driver to have will be different in every state, however. The laws of that state will determine what the bare minimum amount of discount auto coverage will be before it is offered to any clients. These different minimums can make the savings for some people much bigger than for people in other states.
The more coverage that a person has, the better off they are in the case of an accident. More areas of potential damage will be covered along with more money being paid out in each of these areas. The higher the amount of damage caused, the bigger the needed payments will be. Auto insurance will cover up to the portion that any client is paying premiums on.
All of this shows that when a person is looking for Cheap Auto Insurance, they should not only be trying to get the cheapest premiums available, but that they should be looking for the insurance company which will provide the most amount of coverage for their money. In many cases, for only a little more every month, a person can have more coverage.
If a decision is made to use discount auto insurance, a person needs to make sure that they will still have enough protection in the case of an accident. While saving money can be great, if the insurance is not good enough to provide for the damage which an accident may cause, a person will only end up losing even more money than they were saving.
Discount auto insurance will be a great way for anyone to begin to save more money for their budget, especially if they are already a good driver. Many people have never gotten involved in an accident and this means they may be paying for unnecessary insurance. Cutting back on these premiums can still leave them with coverage but allow them to save more money every month.
By Joseph Welusz
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Secrets How Make You Get Low Cost Insurance Policy
April 20, 2009
Many beginner may find that it really confusing to choose an insurance policy that will suit your needs the best as you may come across large number of choices. But there is nothing to worry about, as this is not that difficult a task but it is very important though.
Modern technology like Internet has made the very difficult task of getting free insurance quotes from impossible to possible. With the help of Internet you can get free insurance quotes, at the click of the mouse, tailor made for your needs.
The first thing that you should do is get in touch with a good insurance agent in your own area so that you can acquire all the information about the things related to the insurance policy. This can make you get a good discount and so you will have to pay fewer rates for premiums.
1. Have the maximum deductible sum because higher the deductible sum lower will be the annual rate that you have to pay.
2. Number of cars is also a factor in getting a discount. If you own more than one car than you are likely to get multiple car discounts.
3. Mingling all insurances can make you land up with insurance policy with fewer premiums. If you combine your life, car, home insurance policy into one than you can get insurance policy at lower rates.
4. Almost all the insurance companies/firms/agencies/enterprise offer great discounts to good student. If you want an auto insurance policy for your child who is in college or school then having good grades will land him with good bargains.
5. If your vehicle has side air bags, On Star, ABS brakes as safety devices in your car then your insures can give you more discount. This means you will have to pay low rates for your premiums.
6. If you are currently serving in military or you are retired military personnel then you are eligible for a lucrative discount.
7. If you have taken driving classes or defensive driving classes then it higher your odds in securing a good discount with the insurance company/firm/enterprise/establishment.
8. If you are a good driver and have never been involved discount in an accident then some insurers will give you good discount for that.
9. If you have a vehicle of your own your then you can also get inexpensive auto insurance premiums by exploring few other alternatives.
Listed above are just few measures by which you can get cheap auto insurance rates. The best thing to do would be to take the help of your insurance agent in getting good deals. Doing a little search work online for insurance rates will definitely help you in getting a good insurance policy. Read more other article about Free Car Insurance Quotes and Rental Property Insurance.
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Preparing Our College Student By Health Insurance
April 19, 2009
Health Insurance for college age students is tremendously neglected. Rumor is that half the students on any given college campus are running around without any insurance. Many students put their health on the back burner because they don’t to hassle with the expense. The truth is, they can find cheap health insurance. Ok, so it’s not as cheap as Ramen Noodles and Pizza, but hey, there is no reason for a college student to go without – health insurance that is. The careless routine so often associated with college life rapidly wears at the immune system and earns them a ticket to the doctor.
Knowing your child’s insurance status prior to landing at the physician’s door is the answer. Before that milestone birthday of 18 rolls around, pay your health insurance provider a call. Most likely, if they are planning on being enrolled as a student full-time, they will be covered. For students with a part-time status, look to see what options your provider will offer.
Location, location, location isn’t just a term associated with the real estate world. It is vital that you look into the location of your child’s college. Does your insurance cover the doctor’s and hospitals nearby? If the answer is no, it would be wise to give the college or university a call. More often than not, the school’s private insurance is reasonably priced and gives students access to most local physicians and health facilities.
Location, location, location isn’t just a term associated with the real estate world. It is vital that you look into the location of your child’s college. Does your insurance cover the doctor’s and hospitals nearby? If the answer is no, it would be wise to give the college or university a call. More often than not, the school’s private insurance is reasonably priced and gives students access to most local physicians and health facilities.
If health insurance offered by the college isn’t your cup of tea, try a service such as Health Plan One. Known as the “one-stop-shopping world of health insurance”, Health Plan One will provide you with all local insurance offerings, their prices, and any additional information you would be seeking. The prices are bottom of the barrel, and the service is top-notch.
If health insurance offered by the college isn’t your cup of tea, try a service such as Health Plan One. Known as the “one-stop-shopping world of health insurance”, Health Plan One will provide you with all local insurance offerings, their prices, and any additional information you would be seeking. The prices are bottom of the barrel, and the service is top-notch.
Preparing our children for living on their own can be quite daunting, but it doesn’t have to be hard. With a little homework and a quick call to HealthPlanOne, you can find affordable health insurance for your college student. Education is your child’s pathway to the future…make sure they have the best health insurance to keep their body healthy and their mind sharp. Find more article about Online Car Insurance Quote and UK Car Insurance
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Noxious Ants’ Bites Sent Boy Into ICU!
April 17, 2009
Yeah! You read it right. That’s nothing wrong with your eyes either. And of course this is not a lame joke. A few ants really sent a 13 years old boy into the ICU, bed-ridden for at least a few hours. I’m really shocked to read it in The Star newspaper this morning. How could this be happening? I mean…it takes only a few tiny ants to send a relatively Goliath-sized boy (in the ants’ view) sprawling in the hospital’s ICU! I wonder if this is nature‘s latest warning against our intrusions?
Yesterday, this poor student-Low Kean Beng was admitted to the Seberang Jaya Hospital’s intensive care unit (ICU) after being bitten by poisonous ants at his school compound in JalanRaja Uda. So right now, these ants are terrorizing the school huh! You see, Kean Beng was taking shelter from the blazing heat under two shady trees at about 5.30p.m. on Monday. Then the ants started their assault on him. Suddenly poor Ah Beng felt sharp stings on his hand and leg…and that’s when all hell break lose for our Ah Beng!
The nightmare started with itchiness and became serious with Ah Beng feeling dizzy and feverish! Ah Beng’s limbs started to swell and eventually he vomitted. Shit! What kinds of ants are they? Luckily one of the school staff members was kind enough to send him to the hospital! But the worse comes to worst. Doctors needed to know which species of ants actually stung Ah Beng so that they could prescribed the suitable antidote to save AhBeng’s vanishing life! The clock is ticking, can Ah Beng’s dad managed to find the correct culprits-ants? What if the ants had evanesced?
Ah Beng’s dad rattled back to the school hoping he could grab a few ants to salvage his son’s life! He searched the whole school yard but he still couldn’t locate the ants. When hopes seems to be fading away…suddenly he sensed something is crawling on his skin…the ANTS!!! Off he zoomed back to the hospital to rescue his little boy. Could he make it? Or would his effort turned futile?
…Of course this story has a happy ending. Ha 
Ah Beng’s dad managed to get back just in time and the doctor could administer the proper antidote for him. In the end, poor Ah Beng was discharged after about 3 hours when his condition stabilised upon being given not 1, not 2 but 3 injections! OMG! Those ants are really serious about killing Ah Beng huh. Too bad, their endeavour was foiled.
And the ants which were identified as the evildoers are known locally as semut Selangor(tetraponera rufonigra). And these lethal ants could be found on dry tree trunks and branches in tropical countries, especially South-East Asia. Of course not all are venomous. Then again…did someone actually applied venoms onto the ants’ mandibles in order to get rid of Ah Beng? Maybe due to some rivarly with his dad? We need to bring in the CSIs! Seriously!
Ok! I have to admit that I had fabricated and retouched the original story to a certain extent! Yeah, I wanna add in more spices to make it sound…incredulous? I’ve exaggerated it to make it a little melodramatic! Ha Anyway this is still a true story. Read the original story from The Star here! Sorry for misleading you guys moments ago! Honestly I’m glad there is no fatality in this freak incident.
This reminds me of the ant’s bite that bot my dearest wife and me suffered not too long ago. A few weeks ago, my wife’s leg was bitten by a tiny, whinny harmless-looking ant. Moments later her leg started to itch and then voila it swelled! My wife actually had to break the “bubble” so that it could heal faster. But then, teh damage was still there because my wife could still felt the nagging itch. Then later, I was the next victim. I was bitten by this cute, little red ant. I have no idea at all how it could crawl all the way onto my arm and sank its “fangs” into my flesh. Then the same thing happend…the must-have itching and swelling…the rest is history…
So guys, please beware of these little menace ok. You’ll never know what they are capable of. The worst thing is you might get killed by them, maybe because of allergic. Don’t let your guards down and never let their “cute” form-factor fool you, because in their eyes we are only a piece of meat! Ha
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A Day At Chiropractors Office
April 10, 2009
Have you ever wondered what it’s like to go to the chiropractor? winter of 2004 I found out.
Back in 1986 I had a very bad car crash. In theaccident I broke my back and my neck. It was really bad however, I recovered somewhat and got mobile.
I was able to resume most of the activities I did before the crash, well at least until the year 2001.
I can’t explain why, for some undiscovered reason I had a retrogression and had to undergo lower back surgery.
All went well. except I had lost 30% flexibility in my neck and back. I was going through physical therapy but it was not really helping very much. So my Doctor told me suggested that I go to a Chiropractor’s. My doctor didn’t call them chiropractor though; he called them bone and joint manipulators. The Dr. had his secretary set up the chiropractic meeting for me.
A few weeks later I found myself in the lobby of a nice clean Chiropractor’s office. This was my first time and I didn’t know what to expect. I was apprehensive about the whole ordeal.
I was in chronic pain and I really didn’t want anybody bending and folding me in any way shape or form. So as you can image how cranky I was when I went to the receptionist’s window. “Can I help you”, the slender blond haired older women from behind the glassqueried in a pleasant and friendly voice.
I was really trying not to sound crabby as I shouted out, yes I’m here to see the Dr.; I mean bone and joint manipulator. She smiled and ask me to fill out a few insurance form, then said told me to please have a seat.
It seemed like an hour or two but finally a nurse came out and called me. I was half way into a nod by that time and I didn’t’ hear her the first time. After a moment the nurse announced my name. I woke up and answered, “I’m here”. Follow me please she said as she turned and headed toward the examining rooms in the back of the clinic. I go up and followed her to a small room that had a small medical table in the center and a few doctor looking things on a small table on the right side. Please sit down and the Dr. will be with you in a minute the nurse told me then she went away.
Ten minutes later the chiropractor came in. “Hello, I’m Dr. Sheppered” he introduced. “Your records show that your having a bit of a lower back problem.” Before I could say a word he told me to lie down on my stomach on the table. I did, and without saying a word he started to pull bend and twist me into positions I didn’t even know I could get into.
All in all I was there about thirty minutes, although it felt like forever I really didn’t’ feel any better, as a matter of a fact I felt worse. However,I was back there in two weeks ready and willing to go through the torture again.
This visit to the chiropractor was the same as the last. Again I didn’t feel any better. I didn’t feel any better.
The next time I visited the chiropractor told me that if I was not getting better by then that I probably was not going to. I was amazed with his truthfulness. Anyone else would have just kept making appointments and receiving that insurance money. Even though I didn’t benefit from my visits to a chiropractor please don’t think you won’t. I would advise that you see a Dr. if you have incapacitating pain and if he refers you to a chiropractor, go. Chiropractors know what they are doing and can help you. you.
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Everything You Were Afraid To Ask About Getting Great Online Term Insurance?
April 8, 2009
I’d like to spend a few moments discussing shopping for affordable online term insurance. Since it can be a tricky subject, I don’t tend to write a lot about the “do it yourself” online term insurance business. Since there is a permanent need for most people, I tend to write a lot about permanent insurance. I know that some people won’t buy permanent insurance though. Either, they don’t see the need, or they they don’t understand it.
Whatever the reasons, I wanted to talk a bit about it. If you’re going to buy it, you might as well understand the fundamentals.
Term insurance rates have come down tremendously in the last few years. This is largely due to modernization and medical advancements. Advances in medicine mean longer lifespans and longer time horizons for insurance companies to invest those premium dollars.
In fact, the most popular buyers of life insurance, which are age 25 to 44, have seen their chance of death drop 10%!
By making airbags standard, improving crumple zones and strengthening side impact beams, fatalities – as well as insurance rates – have gone down. Early detection of potentially life threatening illness also help to drive down the cost. Additionally, there is competition driving down the costs of insurance. The Internet makes it incredibly easy to think about great online term insurance rates and since you can buy most types of term policies either by phone or over the ‘net, there’s incentive for insurance companies to be competitive in their pricing.
The increases in lifespan has produced an interesting side-effect. Most term policies don’t pay a claim because the insured outlives the term. So insurance companies can afford to lower their online term insurance and hope that they can make up for it in their lapse rate or “the float” (the money they make by investing their reserves that are not yet paid out as claims).
I can totally see how this can cause a buying frenzy, and since the Government is willing to back up consumers with a State Guarantee Fund and lots of associated regulations, consumers have generally been care-free about who they buy their insurance from. After all, once you buy the policy, the rate is the rate and as long as it is from a fairly large insurance company (which is what substantially all of the quote engines run these days), people just don’t worry about whether the money will be there when they need it. The presumption is: it will be there because it has to be there.
Many people, as a result, are price driven and are not as concerned about the fundamentals of the company.
Even still, it’s a good idea to be concerned with the strength of the company. This will give you a good idea of whether or not the company can even afford to pay their claims. After all, what good is a good deal if your family is left “holding the bag” (an empty bag at that)?
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