Thursday, December 6, 2007

Pay as You Go car insurance?

by sas_scanderalex
You can pay as you talk with a cell phone plan, so why not pay as you drive auto insurance? It sounds like a good idea; but would pay as you drive auto insurance work for you? The idea behind pay as you drive auto insurance is simple. Basically its this- if you do not drive very much, you will not pay high insurance premiums. Advocates for this type of insurance policy think that there are many merits to this type of program. What if you car pool to work, or take public transit? You are not using your car very much so why are you paying high premiums. With a pay as you drive auto insurance premiums you would be able to quite literally pay as you go. Another situation where this plan would be of benefit is that of many retirees who have winter homes in temperate climates, the 'snowbirds' living in Florida or Arizona six months of the year and six months in New York or Toronto for example. Essentially the insurance companies would set an average driving amount for each car type. It could then be broken down into a cents per mile basis. If you wanted to us the pay as you drive auto insurance system you could purchase a set number of miles and you would be covered for insurance during this period. Pay as you drive auto insurance is an excellent idea for those individuals who do not use their car very much or try to find cost saving methods or environment saving alternatives. Currently this type of program is not yet available, but there are supporters in many states who are hoping to change that soon. Groups including Environmental Defense, the Conservation Law Foundation and even the U.S. Environmental Protection Agency are working to organize a national cooperative that would work with insurance companies to offer deep discounts for low-mileage drivers; halfway a step toward PAYD (Pay As You Drive) insurance. General Motors and On-Star Offers PAYD Rates. In mid-2004 General Motors Acceptance Corporation (GMAC) Insurance began offering mileage-based discounts to OnStar subscribers located in some states. The OnStar system reports a vehicle's odometer readings at the beginning and end of the policy term to verify mileage. Motorist who drive less than specified annual mileage can receive insurance premium discounts of up to 40%. PAYD programs are also currently available in Israel, South Africa and Holland. PAYD is gaining momentum, and will be coming to your area soon.

But will it ever arrive in the biggest Car Insurance market, the UK? There has been a lot of debate and forwarded working concepts but non yet approved. Discussions have been put in place and considerations made but for as far as the UK drivers are concerned, that is as far as it has gone. Perhaps the industry has too much to lose with this new money saving concept so it will be put off for a while, but as pressure and country's evolve into the new scheme it would be irrational for the UK to stay behind, fingers crossed peps.

Second to DIe Life Insurance

by sas_scanderalex
Usually, the death benefit from a second-to-die life insurance policy is intended to go to the children , a charity or pay taxes owed after both spouses pass away.

In the U.S. there is a marital deduction permitting you to leave an unlimited amount of assets to your surviving spouse with no taxes payable at your death. Those assets then become part of the estate of the spouse and if it includes a second to die life insurance policy it could help pay any taxes. In Canada, there is more lenient tax treatment.

There are also tax ramifications for small businesses, which is why business partners also purchase second-to-die policies.


With a second-to-die life insurance policy your beneficiaries can pay debts with the proceeds of your policy, so they won't be forced to sell your house or liquidate assets to pay the bill.

A second-to-die life insurance policy can help to construct a financial plan reducing the tax burden of wealthy individuals by creating trusts and using second-to-die life insurance as part of the estate-planning process.


1. Less expensive. Second-to-die life insurance is usually less expensive than life insurance but depends on the blend of the ages. The premium is based upon the joint life expectancy.

2. Estate Preservation. A second-to-die policy appeals to individuals who feel strongly about preserving their estates with the life insurance paying the taxes.

3. Easier to buy. It's easier to qualify for a second-to-die policy than for individual life insurance. Since both insures must die before the benefit is payable, the insurance company is less concerned that one of them might not be in good health.

* Builds your estate. In some cases, second-to-die life insurance is marketed as a way to build an estate, not just insulate it from taxes. Much like individual life insurance, the death benefit of a second-to-die policy can ensure that certain people receive money, even if you spend every nickel.

4. Second-to-die life insurance might make sense for people who don't have a lot of money but want to leave an estate for their children.

Sunday, December 2, 2007

Getting Low Car Insurance Rates

by Blake Allen
Nowadays there isn't anything more significant than having auto insurance and in some states it is even illegal to not have some kind of minimum coverage.

It is also important that you find ways in which insurance rates can be kept at an affordable price, or else no one is going to be able to afford it.

But that is why there is low car insurance rates available and there are many different factors that have to be taken into consideration when determining what the insurance is going to cost the driver of the vehicle.

This is why it is good for any driver to know their rights and to know the different factors concerned with this subject.

The factors that are normally looked at to determine your insurance rates are your driving record, age, car type, credit and location.

No matter where you are going to look for low car insurance rates, it is important that you compare prices and specifications.

If you are conducting your search online or offline, shop around and find the company that is going to be best for you and your pocket. Some companies are ludicrously expensive with car insurance; while other companies understand the need of the customer and how important insurance is to them, therefore they will offer a reasonable price.

Firstly, decide on what coverage you want and then go to different companies and ask them what they would charge. This will make your search a lot easier as you will already know what you want; now you are just looking for the price of it.

This may sound ridiculous, but your credit plays a major role in insurance. Low car insurance rates are easier to obtain when you have a good credit history.

Just about every company you go to is going to check your credit history and the worse it is, the more they are going to tell you to pay. Keep your all credit and accounts up to date.

Finding Cheap Car Insurance For Woman

by Blake Allen
Statistically it has been proven that female drivers are safer drivers than men, thus every piece of information that is provided when a female applies for car insurance is taken into consideration when a quote is been prepared and car insurance premiums are calculated.

o Female drivers over and above the age of fifty receive real cheap car insurance, as woman over this age has been proven to less likely claim.

o To be in possession of numerous policies with the equivalent company puts you in the run for a discount on you insurance premium. Should you possess more than one car, it is advisable to insure them with the same insurance company.

o Excess refers to the total amount of money which the policy holder should pay in order for a claim to be carried forth; the insurance company takes care of the rest.

o Where you are located will have some effect on the calculations of your premiums. Should you be located in the country side, your premiums would be less than those that reside in the city, as the crime and accident levels are way higher.

o On the application form for your car insurance you are asked a total of your mileage per year. Should your mileage fall under a limit set by the insurance company, you will find yourself with a discount on your premiums. This been that you do not spend too much time on the road and are at lower risk of accidents.

o You are asked to give a list of people that would be driving your car while you are insured. The less named drivers that you have would lessen your premiums. It is advised to have no names on the list at all.

o A 'no claim bonus' is the most efficient way of getting cheap car insurance for woman and can earn you up to 60% worth of discounted rates.

o Should your career the life threatening, you could end up with high premiums, while inactive office jobs are low risk which in turn receives low premiums.

Saturday, December 1, 2007

Travel insurance - is free always a good thing?

by Chris Rowlands
The majority of us have a credit card for one reason or another, whether it be for business purposes or purely for a little indulgence once in a while.

What you may or may not know is that many companies now offer "free" travel insurance to their cardholders. Almost 3 quarters of the credit card companies now offer this and many banks are now following suit with their current accounts packages.

The problem is - you may not be receiving the same level of cover you'd expect from a stand alone travel insurance policy. The financial ombudsman service is said to have noted a rise in complaints related to free insurance policies.

The cover can suffer from one of a few problems, firstly; lack of cover level in important areas such as medical/injury. Secondly; lack of range - you will usually find you don't receive the same all round comprehensive level of cover you'd receive from a stand alone policy. And last but not least - the duration of cover may only be based on a single trip policy outline and therefore not give continued cover should you need it.

Insurance experts are said to have reported that Medical cover is lacking on the majority of these policies and anything under £5 million is inadequate. Of course there are certain credit card companies who offer a high enough level of cover, however - weeding these out from the myriad of credit cards available today can be difficult.

There have been a few cases in which the free insurance policy has refused to pay out. This can be due to the credit card company not being informed of minor medical problems which occurred long before traveling commenced. In a recent case reported to the financial ombudsman the ruling was made in favor of the insured as it was deemed unreasonable for the client to report every minor health problem to the provider of the free insure throughout the year.

In the case of a standalone single trip policy there is usually no need to mention minor illnesses from which you have recovered at the time of applying for cover. This should therefore be the same across the board including free insurance policies.

As a good rule of thumb you should seek a minimum cover level of £1 million when traveling in Europe and at least £2 million when traveling in non EU member countries such as the USA. Anything below £1 million should be considered too little and this is where many free insurance policies fail the end user.

In certain countries - such as America, medical treatment is extremely expensive and without a high level of cover you could find yourself out of pocket by thousands of pounds.

Many of us spend much time planning our holidays but little thought is put into taking out a holiday insurance policy. It is vital for peace of mind and to offer protection for yourself and your family - you should carefully consider taking out a policy if you do not already.

The insurance ombudsman also reported that travel insurance complaints overall were dropping but the free insurance related complaints continue to rise.

Remember - of you do rely on a free insurance policy; read through the terms and conditions carefully to identify any areas where you may be lacking vital cover. Carefully consider the pros and con's of a stand alone policy compared to a free policy, you will usually find you are better off with the former.

Home insurance - prepare for winter

by Chris Rowlands
Winter is fast approaching and many areas have already experienced the first frosts of the season - even a scattering of snow in places. The question is; are we ready for it?

A report issued by Sainsbury's urged Britons to prepare themselves and their property for the winter period.

Predicted strong winds and heavy rain could potentially cause much damage to properties that are ill prepared and lacking maintenance. Indeed after the flash flooding of summer - for which the majority of us were unprepared - we have hopefully learnt a vital lesson.

This is where home insurance is particularly valuable as few of us can afford to pay for extensive repair to our properties. You should ensure your property is well maintained to avoid the possibility of your claim being rejected.

Research recently carried out by the association of British insurers showed that 20% of UK homes need maintenance work.

In preparation for seasonal extreme weather conditions it is advisable to fasten down any loose objects such as garden furniture, TV aerials, guttering and roof flashings, etc. Care should be taken to ensure any loose roof tiles are secured and those that are missing replaced. Even a small leak in the roof of your property can over time lead to rotting of the timbers composing the structural support and cost thousands to put right.

In the report by the supermarket it was also noted that structural features such as the chimney and roof are often in a poor state of repair due to being out of sight and therefore out of mind.

It is important to read through your house insurance policy documents when you receive them to ensure you are fully aware of any limitations.

The role of life insurance companies

by Ioan Margineanu
Around the age of thirty, people are becoming more aware of the fact that they need to leave a legacy and that a few people rely on their existence. When you know that you have a family to support, you can't act like a teenager. But this is not enough. Once a person or more are waiting for you to provide for them, you need to assume a few responsibilities. You will soon realize that if something were to happen to you, they couldn't survive spiritually and physically. You can't do anything about the spiritual side, but you can make sure that your loved ones will have everything they need when you die.

When you realize that a life insurance is mandatory for your family, you need to find a life insurance company. This is not a complicated process, but it doesn't mean that you shouldn't choose your life insurance company carefully. The only element that stands between your family and a large amount of money that you had provided through a life insurance is your life insurance company. After you're gone, the company will have to make the last step and make sure that your family will get the amount promised. This is why you should make sure that you get a good life insurance company that tries to work for your best interest. Besides handing the money after your death, your life insurance company also deals with a lot of other legal issues while you are still alive.

Because you don't have to know everything about life insurance policies while you are still alive, your life insurance company should be able to tell you everything about the process. You can choose between a few types of insurances and each one can have advantages and disadvantages. Because you can't take these decisions alone, you need to talk with a company who wants the best for you, not for their profit. There is a certain code of ethics that should be respected by life insurance companies. While they could get a higher profit if you choose a certain program, it doesn't mean that that program is the best choice for you. Your life insurance company should be able to tell you this and after a quick analysis of your situation and they should guide you to a plan that suits your situation best.

Another factor that can be influenced by your life insurance company is the price. You will have to make a few payments throughout the insurance and the value of what you pay and what your family can get at the end can be sometimes better if you know what life insurance company to choose. This means that you can make a good deal if you know where to search for and you won't get the same prices everywhere. However, you should make sure that you find the best price to quality ratio, don't try to get with the cheapest life insurance company only to save a few bucks.

In the end, choosing your life insurance company can be a crucial step in getting a good life insurance policy and sleeping easily at night. You won't worry about anything if you make a good deal on the premiums and if you know that your policy will cover your family for many years. If you want to make a good job when you are searching for life insurance policies, think twice before hiring the fist life insurance company that comes your way.