Insurance

Divorce insurance: What is that?

As much as you will not really want to think about it, money is going to govern your equation with your partner in a major way. As much as it would be effectually the last thing on your mind, you should learn about divorce insurance if you are soon to tie the knot. And, today we will do just that—tell you a thing or two about divorce insurance.

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What is divorce insurance?

It is very important to clarify at the very onset that divorce insurance is not a prenuptial agreement—rather, it’s a payout which the policy holder receives once the divorce is finalized. Once the necessary fees are paid, you will not really have to worry about getting into financial ruin after divorce. A prenuptial agreement, on the other hand, documents the way in which assets will be distributed right after marriage. The divorce insurance policy, will, in no way, replace the prenuptial agreement.

Now, this particular insurance policy is yet to gain mileage in the financial market because many are still apprehensive of the financial wisdom of investing in such a policy.

Finding out a few nuances of this particular insurance policy

Though Americans, in general, are apprehensive of securing this policy, it should be pointed out that there is a high percentage of American weddings that end up in divorce. It was in the year 2014, when it had been estimated that around 44 percent of marriages ended up in divorce—and that too, most of them didn’t even last 9 years. There are many below the poverty line who file for divorce as well. What more? As per stats, divorces can even end up costing 70 percent of one’s net value.

A divorce insurance policy can be bought by the couple to save each other. Even your relative can buy the policy for you.

One of the best attributes of this particular policy is that it doesn’t discriminate between those in their first marriage and those in their second or third marriage. The unit of coverage cost is the same.
The difficulty of choice or indecision is palpable. How do you bring up the issue in front of your partner? How do you tell him/her that you are going to invest in divorce insurance while you start talking money? The key is to strike a balance between over-pragmatism and callousness. In fact, the key is to be pragmatic and discuss stats with your partner and of course, the feasibility of the policy as well.

Find out about premium rider

You should remember that there are policies that need you to be at least 4 years in wedlock in order to receive your payout. If you think four years is too long a time then you can opt for a premium rider. With the premium rider you can have 50 percent of the payout in case you’re up for legal separation. The remaining 50 percent can be claimed if you actually end up divorcing.


Car Insurance: What Should Your Policy Offer You?

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There are some factors that you will want your car insurance policy to cover. But that doesn’t always happen. You don’t always get what you think you might get from a policy. Some of them only give you minimal levels of cover. And that’s why you should always read the small print and be aware of how much cover you’re getting.

Fire and Theft

Are you covered if your car gets damaged by fire and theft that’s the fault of someone else? If you’re not, then you don’t have much cover. Many people assume that their car insurance policy will cover them in the event of their car getting stolen. But that’s not always the case. Fire and theft cover is not something that all policies have. And getting this level of cover will usually cost you a little extra money. But that’s definitely worth paying for in most instances. You should compare prices and find the best deal out there.

Flexibility Over the Repairer

Some policies will demand that you have your car repaired at a certain garage. Insurance companies do this because they have an agreement with certain garages. It’s a mutually beneficial deal because the garage will also point their customers in the direction of the insurer. But this isn’t always a good thing for people with insurance policies. It means that you can’t shop around and look for deals because you have to use the repairer that the insurance company tells you to. Ideally, you should find a policy that provides you with the flexibility to make your own decision. No one wants to be told where they have to get their car repaired.

Cover for Medical Bills

Some insurance policies will cover the cost of your medical bills if you get injured in a crash. These injuries can be very severe, and the cost of the medical bills can be huge. So, you should definitely find out if you get this level of cover from a policy before you sign it. Not all policies will give you this cover, but it’s worth finding one that does if you possibly can. Then, you’ll be able to get the very best treatment and get back to driving as usual in no time. If you search through all the options, you’ll be able to find at least one suitable policy that covers potential medical bills.

Courtesy Car Provision

When your car breaks down, you can be left in a tricky situation. Even if the insurance provider is covering the costs of the repairs, you’ll still need to find a way to get around. So, find a policy that provides you with an adequate courtesy car in the event of your car being out of action. It’s one of those details that might not seem that important. But when you don’t have a car, and you need to get to work on time and take the kids to school, a courtesy car can seem like a real saviour. So, ensure this is part of your next policy.


Cashing in your life insurance benefits to pay for retirement – Is that a feasible option?

For majority of the Americans, retirement planning and life insurance are entirely different things. They nurture the notion which says retirement planning is for your future and life insurance is for the future of your beneficiaries. However, there are some expert financial advisors who recommend life insurance as a perfect way of planning for retirement. Due to the hefty costs involved, the strategy is controversial but if you’re good at it, there are many benefits that you can reap.

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Whole life insurance plans – Best way to support retirement savings

Among the different types of life insurance available, whole life policies are promoted as the best way to support your retirement savings. When you purchase permanent life insurance plan, irrespective of whether they’re universal, variable or whole life insurance, a portion of your premiums go to a separate account which builds cash value along with/in addition to the death benefit of the policy.

One of the core benefits of permanent life insurance is the ability to borrow or withdraw money against the cash value of the policy. You may use the proceeds to pay off your mortgage payments for a few months or to support your family when you lose your job or to continue funding your retirement. A point to be noted is that withdrawals and loans will decrease your death benefit unless it’s repaid. On the other hand, there are tax perks on getting cash from your life insurance. As per the IRS, distributions through borrowing are 100% tax-free!

Tax benefits – But with a twist!

There are tax benefits to using a portion of your cash value to finance your retirement. If someone has $40,000 coming from his IRA or 401(k) every year and another $30,000 in Social Security payments, the total $70,000 is deemed as taxable income. However if that $40,000 is coming from life insurance, then the taxable income would only result to $30,000. Not only would that $40,000 be not considered as taxable income, there are even high chances that the person would fall in a lower income tax bracket and the tax on Social Security income could also be lower.

Despite all this good news, most advisors recommend against utilising life insurance to fund retirement and the key reason is that this is a costly way to invest money. The costs of insurance, commission and marketing costs, subaccount costs, premium taxes will soon add up and will eat away your returns. This high cost related to life insurance plans lead to a drag-on performance.

Consider maxing out other assets first

Though this doesn’t mean that none should consider financing their retirement through life insurance, yet if you have other retirement savings like IRAs and 401(k)s, maxing out those first will be a better option. Wise advisors aren’t a big fan of using life insurance to fund retirement. According to them, life insurance should initially be seen as a primary way of protecting your business or family (if something were to happen).

In case you’re older and you have a huge net worth on your life insurance policy, you are eligible to reaping the highest tax savings from life insurance withdrawals. Tax savings are innate tax savings. On the other hand, if you don’t require life insurance yet and you don’t think you’ve reached peak earnings, a Roth IRA would be a better deal. If you still don’t contribute the maximum to your IRA and 401(k), make sure you include these into your budget before raiding your life insurance payments.

Hence, if you have been wondering about whether to cash in your life insurance savings for funding your retirement, you should take into account the above mentioned factors.


Car Accidents: What Happens To The Medical Bills?

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When you find yourself in a car accident, the first thing that comes to mind is the medical implications. You need to get any injuries treated, and money takes a backseat while that happens. However, you’re going to have to pay up for those medical bills in the near future.

Here’s the deal: if you don’t get the wheels in motion quick enough, you’re going to be responsible for those payments. If you then can’t pay them, the bills might end up with a collection agency, causing you serious hassle. So, we’ve got a few quick tips to ensure you don’t end up in this position.

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Insurance & Attorneys

Firstly, you’re going to want to contact your insurance company, and seek an attorney for car accident claims. The quicker you do this, the better. Your insurance company will give you an indication of how much they’ll be willing to pay out. Also, you can contact Sean Park if hurt or injured in a car accident, and you might get compensation out of it. The most important thing to remember in this scenario is to contact them early.

Insurance Clauses To Be Aware Of

You better get ready for your insurance company to do everything they can to avoid paying out. That’s just the way it is! If you’ve broken any insurance clauses along the way, you’re in trouble. This can include things like an excluded driver behind the wheel. It can also include criminal offenses like DUI’s. Be sure to study your insurance claim in full.

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Pre-Existing Injuries

There’s somewhat of a gray area when it comes to pre-existing injuries. You might state that your injuries have been aggravated and made worse by the accident. The problem is; it’s going to be your word against someone else’s. This is where the aforementioned attorney option can come in very useful. They’ll fight your case for you, and hopefully, you’ll come away with a good result.

Keep Track Of All Medical Expenses

If you’re going to be claiming for those medical expenses, you need to know what they are. Keep track of everything that relates to medical expenses if you’re forced to pay. You should be able to get it reimbursed in many cases. Think about mileage costs and parking at hospitals, too. You’ll get all of that reimbursed as part of the deal in the majority of scenarios.

No-Fault State

If you live in a no-fault car insurance state, things are a little different, too. This means that no matter who caused the accident, the insurance carrier will pay the bills up to a point. Unfortunately, the rest of the medical costs will then be handled by your standard medical insurance. Your attorney might be able to help you with the additional costs if your standard insurance isn’t up to scratch.

Ultimately, you need to be timely when it comes to paying those medical bills. Get in contact with your insurers and attorneys in the first instance, and go from there. Hopefully, you won’t have to pay a thing.


How to select the best travel insurance policy for you

We expect everything to go our way while planning a trip to another country or city. However, chances are there that we might be caught up in the midst of unforeseen losses caused by theft, health hazards or loss of baggage. All of us will need to determine the best travel insurance deal, but we have to analyze certain factors before we choose one.

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Travel Insurance cover must be considered, not its price

The policy pricing often proves to be the deal breaking factor in your attempt to pick the right travel insurance policy. The deal is certainly not right for you if it doesn’t cover the key scenarios that might arise during your trip.

Your travel insurance policy must cover the following scenarios:

Medical emergencies

A small dental emergency might cost you up to 80,000 INR. This seems critical as there’s a real possibility that you might undergo a medical emergency.

Loss of baggage

You may acquire protect against loss of baggage under your travel insurance in the event you’re carrying electronics, jewelry and other valuables. The loss of passport is also covered under some policies. Such insurers will provide you with the expenses that you incur with your duplicate passport.

Interruption and cancellation of trips

Certain emergencies might compel us to opt for last minute trip cancellations. Airline tickets might not be refunded or might levy a cancellation charge. Travel insurance plays a crucial role over here. Claiming a reimbursement is possible as per the policy clauses.

Check for What is Not Covered in Travel Insurance

Insurance Claims are meant to be covered under a few listed events. Being a policyholder you’ll need to go through the exclusions and inclusions mentioned in the policy papers very carefully. You’ll also need to consider all situations under which the policy remains active. There are instances wherein you might decide on travelling against the advice of your physician. For such instances, your policy may not cover medical expenses that you incur (directly or indirectly) while travelling.

Get acquainted with the claim settlement process

You must prepare yourself for filing a claim in the event of an emergency. It’s in your best interest to acquire more knowledge on the claims settlement process. While applying for reimbursements, you’ll need to make sure that you adhere to all necessary documentation and meet the deadlines.

Check the refund policy of Travel Insurance

You might need to cut your trip short if your travel plans change. Under such circumstances, you might obtain a refund that’s calculated on the basis of pro rata or any partial refund. All you need to be sure of is that your policy is still valid and that you hadn’t filed for any claim earlier. Also make sure that the contact information of the insurer is still there with you.

You must pick the best travel insurance plan for your needs. Be it your international or domestic trip, you’ll have a plethora of options available to you. A yearly overseas coverage might just seem more economical for those that travel more frequently. Prior to signing the dotted area of your policy paper, you must check the duration of your policy. Enjoy a safe and pleasant trip by investing in the right travel insurance.


What should you know about travel insurance for terrorism?

Are you scheduled to visit a country which has recently experienced a terrorist attack? If yes, then you should acquaint yourself with travel insurance for terrorism. In fact, every other traveler, irrespective of which country he or she is traveling to must acquaint himself/herself with this particular coverage. Here are a few facts learning which might turn out to be useful for you.

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All about travel insurance for terrorism

Now, it is very important to know that most of the insurance carriers would actually wait for the U.S. State Department to publicly declare that a particular attack is a politically motivated terrorist attack. And, once it is done- the travel insurance schemes can cover travelers after purchasing insurance but before they travel. You can also avail it to cover risks during your trip.

Here is a look at the ways in which these plans work

You buy the cover before your trip. You are on your way to a different country and you can ask the insurers if they are covering the particular city/cities you are visiting or not. A bomb explodes in the city you’re scheduled to visit. The state department declares it as a terrorist attack and you might want to cancel your trip to the city. In this scenario you can either secure a full refund of the prepaid trip cost or get a credit enabling you to rebook for a future trip- as per the terms and conditions of the plan bought by you.

Now, there is no point of getting all angsty with the credit option instead of cash. You need to read the fine print thoroughly before you’re actually securing an insurance cover. You can only expect full coverage on trip cancellation only if your insurance cover mentions so. Every insurance plan (of the one we are talking about here) should contain a portion which clearly documents the reasons that are covered if you need to cancel or delay your trip. The trip cancellation portion, in short, should be read very thoroughly.

Now, a plan covering risks of an attack during your trip works a bit differently. You might as well escape a terrorist attack in a foreign land unharmed. If you want to come back home as soon as you can, the travel insurance plan will compensate additional expenses designed for transportation on your way back. The expenses, needlessly to say, are not covered by the prepaid trip costs.

Please note that you are not likely to be covered if the city you are to visit is under threats of attack but has not been attacked yet. If the insurance plan does not mention the city you’re visiting, then you will not be compensated even if it is attacked.


IRDAI Increases Third-Party Insurance Premium Rates in 2016

IRDAI Increases Third-Party Insurance Premium Rates in 2016

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A third-party insurance policy protects policy holders from liabilities that may arise in the event of an accident leading to the damage of a vehicle, injury or even a death. Usually, the third party motor insurance is a part of the main policy. Some insurers offer this as a standalone cover as well. In India, third-party insurance is an essential requirement for every car owner buying an insurance cover. Under Motor Vehicles Act 1988, third party liability cover has been made mandatory in India.

About Third-Party Motor Insurance

A third-party vehicle insurance can be defined as the policyholder’s insurance against disability, death or damage caused to a third-party, in case of an accident. At times, this third-party insurance is also called the “Act Only” cover as it applies to a third person involved in an accident, instead of the vehicle owner or the insurer.

Effective from 1st April, 2016, IRDAI (Insurance Regulatory and Development Authority of India) has increased the third-party motor premiums. The new rates indicate a 40% rise in the car insurance premiums and a 25% hike in two wheeler insurance premiums. The third-party rates for commercial vehicles will increase by 5% to 30%. In case of loss of a life, the coverage is unlimited. In the event of damages to a property, the maximum coverage provided is 7.5 lakhs. Third party insurance will not cover the losses which are incurred on insured’s own property.

Third-Party Insurance Premium Rates Raised

A motor insurance can be categorized into two basic components – comprehensive cover and third-party insurance. Premium on the comprehensive cover is determined by the auto insurance companies, whereas premium on third party cover is decided and fixed by IRDAI. The third party insurance premiums are reviewed by IRDA annually and revised based on the cost inflation and the claim statistics.

In the last 5 years, IRDA has increased the insurance premium, every year. Keeping in view the large losses faced by insurance companies and a rise in cost inflation index by 5.57%, IRDAI has decided to hike the premium rates for third party insurance, this year, as well for all segments of two-wheelers and cars. While ascertaining the need to hike rates, IRDAI has referred to the Insurance Information Bureau. An additional factor that led to the increase in premium rates is the rise in service tax owing to additional cess.

An Overview on New Third-Party Insurance Premium Rates

Let’s take a look at the latest third-party premium rates as laid down by the IRDA:

Cars Old Premium Premium for 2016-17 % Increase
Upto 1000 cc Rs. 1468 Rs.2055 40%
1000cc to 15000cc Rs. 1598 Rs.2,237 40%
1500cc and above Rs. 4931 Rs. 6,164 40%
Two-Wheelers Premium for 2016-17
Upto 75cc Rs.569
75cc-150cc Rs.619
150cc-350cc Rs.693
350cc and above Rs.796

It is important to note that rates have also been increased for three-wheelers. Although the hike is steep from the policy holder’s point of view, it isn’t that steep from the perspective of insurance companies. It has been estimated that an 80% hike in the premium rates would be required to effectively combat the losses faced by insurers.

Insurers have been warned by IRDA against refusing any third-party claims. All insurers are now required to offer third-party covers online to make it easy for vehicle owners to easily compare insurance quotes online and buy one with comprehensive third-party covers.

Incurred Claim Ratio Decreases over the Years

IRDAI data reveals that an increase in third-party insurance premiums in the last few years has offered some respite to insurers in the motor insurance category. The increase in tariff has helped insurers limit their loss ratio to some extent.

The incurred claim ratio for the motor insurance segment was 77% in financial year 2014-15 as compared to 80% in financial year 2013-14. The incurred claim ratio can be defined as the ratio of net incurred claim to net premium. Or in simpler terms, it is the number of claims received for the premiums paid. A lower incurred claim ratio indicates healthy growth and higher profitability for the insurer.


Two Ways Driving Offences Can Wreck Your Finances, And What To Do About It

Two Ways Driving Offences Can Wreck Your Finances, And What To Do About It

None of us want to be convicted of a driving offence, least of all a DUI. Driving offences come with many auxiliary costs that can really screw us over, long term. And they reflect poorly on us as people if we are to blame. For these reasons, DWIs and DUIs are way more costly that the initial outlay for fines. They keep costing you money for years down the road. Scrubbing them from your record is difficult. Here are some ways driving offences can wreck your finances and what to do about it.

Life Insurance Becomes More Costly

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One of the unforeseen consequences of a DUI is the effect it has on your life insurance. Life insurance companies often want more money, given that you’re putting yourself at higher risk. And they can continue to ask for more money for ten years following a DUI conviction.

From the insurance company’s perspective, this isn’t about punishment. This is about charging a price that reflects the risk of a DUI driver. According to the Highway Administration, drivers with DUIs are about 40 percent more likely to die in a crash. And it’s not that DUI drivers just offend once. About 30 percent of them continue to drink and drive, even after getting a DUI. Thus, it makes sense that they would be involved in more accidents. And it makes sense that life insurance companies would want to charge more money. So what can you do about it?

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First off, you can hire a one-of-a-kind DWI lawyer to reduce the severity of the allegations. If you’ve been caught drinking and driving, it’s not guaranteed you’ll be found guilty. There are all sorts of legal ways that you can make your case and reduce sanctions. Second, you can have a breathalyser fitted to your car ignition. The car will only run without an alarm sounding, so long as you’ve used the breathalyser to prove you’re under the limit.

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Car Insurance Goes Up

All car insurers care about is your risk category. They don’t care that you didn’t know it was a 30 limit when you got caught doing 40. All they care about is what that says about you as a driver from a statistical perspective. Insurers know that drivers who get caught speeding are more likely to have an accident. And so as soon as they find out you’ve been speeding, your insurance goes up. According to CarInsurance website, having a DUI can push your insurance up by between 30 and 300 percent. Ouch! Speeding tickets can put it up by more than a fifth.

So what can you do about this? Well, first off, see if there is a way to fight the charge. Given how much it’s likely to cost you over the long run, a legal route is a good option. The other thing you can do is focus on prevention. Get a car or an app that warns you when you go over the local speed limit. And, if possible, as the insurer if they’d lower your premium if you used a black box driving recorder.

 


3 Mistakes Employees Make That Stop Them Getting Compensation After An Injury

3 Mistakes Employees Make That Stop Them Getting Compensation After An Injury

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When you have an accident in the office or on the job, it’s true to say, that you’re not always thinking straight. You might be in a lot of pain or, the accident may have caused severe damage. This can be incredibly distracting. It can make you say things without thinking about it, or take actions that you would usually know were wrong. This wouldn’t be a problem if you were not looking to claim compensation. Usually, after an accident, you should be thinking about claiming some form of compensation. Particularly, if the injury is going to affect your life or damage your chances of earning a living. This could be a short-term or long lasting effect. Either way, it’s important that you don’t lose your chance of getting money that you may well need. As such, here are some of the mistakes that you should avoid if you are involved in an accident.

Don’t Admit Fault

After an accident, you may get the urge to apologise for what has happened. It is almost human nature to want to take the blame for something that we think we might have caused. The problem is that after an accident, you might have hit your head. Or, you might not be thinking straight. As such, you may be under the impression that an accident was your fault when it wasn’t. It’s possible that you don’t even think it was your fault. However, instinctively, you apologise for causing an issue. The problem with this is that apologising could be classed as admitting fault. This is going to weaken your chance of making a claim.

Always Contact A Lawyer

You should speak to a lawyer if you are injured at work. Most people don’t because they don’t think that making a claim is going to be worth it. This depends on the injury and how much it is going to affect your life. If it is going to leave you in permanent pain or affect your earnings, it’s always worth speaking to a lawyer. At the very least you might want some questions answered. You can always just contact their personal injury hotline. You might ask, what information can I Get from your personal injury expert helpline? They should be able to provide you with all the information you need for claiming on an accident.

Don’t Forget To Speak To A Doctor

Finally, you might have suffered from a small or a severe injury. Either way, you should always speak to a doctor. There are two reasons for this. First, if you do make a claim, it will usually be judged based on the report of a medical professional. If there is no such report, it’s unlikely that you’ll win any money in a settlement at all. Second, you may not go to a doctor because you don’t think there are any issues from the injury. However, pain and other injury symptoms can develop later, days after the accident. For instance, if you lift a heavy object, you might damage your back muscles. The extent of the pain will take at least a couple of days to become apparent.


Truck Accidents: Leave it to the Legal Experts!

accidentThere is never an appropriate time for an accident to happen. In our fast-paced modern lives, it is easy to become overwhelmed when a truck accident occurs. Thankfully, there are law professionals that are trained to deal with these specific scenarios. Attorney John Farina is experienced in handling these situations and is here to help clients collect all of the necessary information for legal proceedings related to a trucking accident.

The attorneys at Graves Thomas in Vero Beach, Florida specialize in helping clients retrieve the money they are deserved after experiencing an injury in a trucking accident. Attorney John Farina has performed extensive research and understands that these types of accidents are prone to causing death and fatal injuries. Without proper representation you and your family may not receive all that you are entitled to. In 2012, a study conducted by the U.S. Department of Transportation states that about 4,000 deaths and 100,000 injuries were caused due to trucking accidents.

Recently, the search for an attorney led me to John Farina. Attorney John Farina got all of the truck accident information and I began to feel much better. I knew that my case was in good hands and that all relevant jurisdictions would be considered when my case was brought up in court. He made sure that all the necessary information about the trucking company was collected including:

  • The name of the trucking company.

  • The phone number of the trucking company.

  • The license and information from the driver.

  • The insurance information from the driver.

  • Photos of all vehicles involved in the accident.

  • Detailed pictures of unusual issues with the truck that could lead to an accident.

  • Detailed statements from the scene of the accident.

The costs involved with trucking accidents can result to be much more than the average car accident. Attorney John Farina helped me understand how active laws help secure individuals involved in accidents. Before meeting with him I was unclear about what expenses I could be compensated for after the crash. Under the expert care of Graves Thomas attorneys I could reclaim unpaid paychecks, medical bills including hospital fees and therapy bills, replacements and repairs that needed to be performed on my automobile, pain and suffering, and event future medical and therapy bills.

The peace of mind that attorney John Farina passed along to me was priceless. The truck accident itself left me in such a state of shock that I had to admit that I needed help collecting all of the truck accident information. There are times when seeking the help of a professional is appropriate. I cannot express how helpful Mr. Farina was in seeing my case through from the collecting of information to the collecting of insurance payments


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