6 Holiday Headaches You Can Control with Home Warranty

The holidays can be both joyous and stressful. With a home warranty, unexpected repairs can be fixed by reliable technicians. Save yourself a headache!

While many of us look forward to the holiday season all year, it can also be a time of great stress. In between all that cookie-baking and gift-buying, it can be challenging to get someone to fix your broken dishwasher or HVAC system. Fortunately, there’s a solution for any unexpected breakdowns that might put a damper on your holiday spirit: a home warranty plan.

home warranty is an excellent way to protect your home from unforeseen and unexpected expenses. The Home Warranty Plan is a one-year service contract for the repair or replacement of covered home system components and appliances that typically break down over time.

Take a look at these five common holiday season headaches that can be easily managed with an Home Warranty Plan.

1. Finding reliable help around the holidays

It can be just as challenging to find reliable home-repair help during the busy holiday season as it is to get that Thanksgiving turkey just right. With a home warranty plan, you’ll have access to industry-leading expertise 24 hours a day, 7 days a week, 365 days a year. E-exchanger will find the right licensed personnel and eliminate the need for you to locate qualified help during the busy days leading up to and during the holidays.

2.Unforeseen expenses 

Repairing something as major as your home heating system could cost you thousands of dollars. Such a huge expense can be stressful at a time when you’re already spending money on gifts, food, decorations and other miscellaneous holiday expenses. But with a home warranty, you’ll only need to pay the monthly fee along with a trade service call fee, which is a fixed amount that's easy to plan for.

3. Dealing with insurance companies

With a warranty plan, you can skip the whole process of filing claims and deal with insurance, and spend that precious time shopping, wrapping gifts, cooking delicious meals, or decorating your home with family and friends.

4. Playing host with a broken appliance

A broken dishwasher or refrigerator can really put a damper on your holiday festivities. A home warranty plan offers an expedited repair process on covered items. You no longer have to worry about a crisis caused by appliance or system breakdowns at a time when your house is swarming with guests.

5. Paying the full cost of repair or replacement

In the event of a breakdown, insurance usually reimburses the value of the item minus depreciation. This means you will not be reimbursed the full amount paid at the time of purchase. With a warranty plan, you won’t have to pay for the actual repair or replacement of covered items, and your contract will cover repair or replacement of covered items regardless of age, make or model.

6. Not enough time to coordinate home repairs

Finding reliable help that suits your budget, following up and replacing parts all involve a considerable time investment. Since the costs associated with repair and replacement are so high, it is not possible to skimp on the research and effort needed to get a satisfactory solution. A warranty plan will save you time when you need it the most this busy holiday season.

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Is Guaranteed Issue Life Insurance a Good Option?

We often get asked questions along the lines of “My aging parent is very ill and medical bills have drained his/her savings account, but I cannot afford to pay for the funeral if he/she should pass away.  Can I buy life insurance on my parent?”  In this scenario, we do not advise purchasing “regular” fully underwritten life insurance.  More often than not, term life insurance is going to be ideal for most people, but not in this scenario.

Why we wouldn’t recommend term insurance in this case…

Term life insurance would typically not work in this case because the coverage amount would be too small, the client would likely be uninsurable because of health issues, and the client’s age would be outside the range a life insurance company would approve coverage for.

What we would recommend…

When we get this question, we usually tell inquirers that they have two options:

  1. Take the money you would have spent each month on term insurance and instead put it into a savings account so it can start accruing interest. You can then access these funds later when in need of money for your loved one’s final expenses.
  2. Purchase a guaranteed issue life insurance policy.

What is a guaranteed issue life insurance policy?

Guaranteed issue life insurance is a type of life insurance that you cannot be denied coverage on, hence “guaranteed”.  There are a few things you should know about this type of insurance.

  1. Guaranteed issue life insurance is typically known as “last resort” life insurance. It’s meant for those who may have been denied previously and/or are not in good health.
  2. Guaranteed issue life insurance policies are designed so that surviving loved ones can pay for your final expenses, such as a funeral, burial, and medical bills.
  3. Guaranteed issue life insurance premiums will never increase.
  4. A guaranteed issue life insurance policy accumulates cash value.
  5. Guaranteed issue life insurance policies have significantly lower death benefit amounts compared to term or permanent policies.
  6. There is no medical exam or questionnaire required for guaranteed issue life insurance. The only factor that is really taken into consideration is the age of the insured.  Because of this, guaranteed issue life insurance premiums are higher per thousand than most other types of life insurance.
  7. Benefits are limited to the first two years. This is called a Graded Death Benefit period.  What this means is that if you die within two years of buying the policy for any reason other than an accident, your beneficiaries typically only receive the total amount of what you paid in premiums.  (This can vary depending on the carrier.)

So, if you’re in relatively good health, fully underwritten life insurance may be a better option for you.  However, guaranteed issue life insurance is a great option for those with a desperate need.

How much does guaranteed issue life insurance cost?

While you can get millions of dollars’ worth of term life insurance coverage, guaranteed issue life insurance coverage often caps at $50,000.  Again, its design is based around simply helping your surviving loved ones pay for your final expenses.

Quotacy works with Gerber Life to provide guaranteed issue coverage options.  Gerber’s guaranteed issue policy is available in all U.S. states except for Montana.  Take a look at the examples and table below to get an idea on what a guaranteed issue policy can cost.

Example #1

 John Smith is 55 years old and has been denied for traditional life insurance because of his Stage IV prostate cancer.  He does not want to burden his children with his final expenses so he plans on purchasing guaranteed issue life insurance.

He’s automatically approved without having to undergo a medical exam or fill out any health forms.  John obtains $20,000 in coverage and his premiums are $91.30 per month.

If John passes away within two years, Gerber Life will refund to his beneficiaries all premiums that had been paid plus 10% interest.  However, if John happens to die because of an accident unrelated to his health within those two years, his beneficiaries will receive the full $20,000 death benefit.  After two years, his beneficiaries will receive the full death benefit regardless of how he dies.

Example #2

 Jane Doe takes care of her 79-year-old mother Sally.  Sally does not have any life insurance and Jane is worried that she won’t have the funds to give her mother the funeral she deserves.  Jane decides to buy a guaranteed issue life insurance policy on Sally.

A $12,000 policy is enough for Jane to ensure she can pay for a proper funeral and burial.  Sally is approved for coverage and the policy will cost $165.70 per month.

Although this type of policy is easy to acquire, it offers less coverage and higher premiums than traditional life insurance, so explore all your options.  If you aren’t sure if guaranteed issue life insurance is the best choice for you or want more information, contact us here at Quotacy and we can help you.

Recap of Guaranteed Issue Life Insurance:

  • If you’re between 50 and 80 years old, you can be accepted for guaranteed issue coverage regardless of your health.
  • There are no medical exams to complete or health questionnaires to fill out.
  • Cash value accumulates within the policy.

Remember, term life insurance quotes are free to run on E-Exchanger.com and there is no penalty for applying.  It doesn’t hurt to apply for term life insurance, then opt for the guaranteed issue if you end up being denied.  The more options you have, the better decision you can make.

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Blood Cancers and Buying Life Insurance

According to the American Society of Hematology, blood cancers affect the production and function of your blood cells and end up preventing your blood from performing many of its functions, such as fighting off infections or preventing serious bleeding.  Approximately every three minutes, one person in the U.S. is diagnosed with a blood cancer.  September is both Life Insurance Awareness Month and Blood Cancer Awareness Month.  In this post, let’s discuss the different types of blood cancer and how these conditions can affect buying life insurance.

What are the different types of blood cancer?

There are three main types of blood cancer: leukemia, lymphoma, and myeloma.  An estimated 1,290,773 Americans are either living with, or are in remission from, leukemia, lymphoma, or myeloma.

Leukemia – cancer of the body’s blood forming tissues.

  • Mainly affects bone marrow and the lymphatic system
  • Usually, affects white blood cells – the infection fighting cells
  • There are many types of leukemia

Lymphoma – cancer of the lymphatic system.

  • Affects the lymphatic system – the body’s germ-fighting network – which includes the lymph nodes, spleen, thymus gland, and bone marrow
  • There two categories: Hodgkin lymphoma and non-Hodgkin lymphoma

Myeloma – cancer of plasma cells.

  • Plasma cells are white blood cells that produce disease- and infection-fighting antibodies
  • Cancerous plasma cells release too much protein and can cause organ damage
  • Cancerous plasma cells can also crowd the normal cells in your bones and weaken them

How does leukemia affect buying life insurance?

Leukemia can be either acute or chronic.  Chronic leukemia progresses more slowly than acute leukemia, which requires immediate treatment.  There are five types of leukemia: acute lymphoid leukemia (ALL), acute myeloid leukemia (AML), chronic lymphoid leukemia (CLL), hairy cell leukemia, and chronic myeloid leukemia (CML).  ALL is the most common form of childhood leukemia and AML and CLL are most common in adults.

Although individuals who have been diagnosed with leukemia generally cannot get preferred life insurance risk classes, that is Preferred Plus or Preferred, once treated with no recurrence, individuals can be considered for Standard life insurance rates.  Risk classes are dependent on the type of leukemia, your age at diagnosis, and how long it has been since completion of treatment.  The more years that have passed since treatment, the better your chances are for qualifying for Standard or Standard Plus.

Risk Classes
Preferred Plus
Preferred
Standard Plus
Standard

If you do not qualify for standard risk classes, you may be table rated and/or be required to pay a flat extra.  A table rating typically means you will pay the standard prices plus a certain percentage.  A flat extra is an additional fee that cushions the risk for the insurance carrier.  A flat extra can last the entire life of a policy or just a few years.

Table Rating
(alphabetical)
Table Rating
(numerical)
Pricing
A 1 Standard + 25%
B 2 Standard + 50%
C 3 Standard + 75%
D 4 Standard + 100%
E 5 Standard + 125%
F 6 Standard + 150%
G 7 Standard + 175%
H 8 Standard + 200%
I 9 Standard + 225%
J 10 Standard + 250%

Let’s take a look at a few examples.

Example 1

 

Jane Doe was diagnosed with acute lymphoblastic leukemia (ALL) when she was 8 years old.  She is now 30 years old and it has been over 20 years since treatment was completed.  Jane is a non-smoker and aside from her history of childhood cancer, she has a clean bill of health.

She applies for a 30-year $500,000 life insurance policy and is approved at Standard Plus.  Her monthly premium payments will be $50.

Example 2

 

John Smith was diagnosed with acute myeloid leukemia (AML) when he was 18 years old.  Part of his treatment was a bone marrow transplant.  He is now 32 years old, does not smoke, and it has been 13 years since treatment was completed.

He applies for a 20-year $500,000 life insurance policy and is approved at Table B.  His monthly premium payments will be $60.

Keep in mind that no life insurance company underwrites the exact same way.  (Underwriting is the process of evaluating an application and determining a risk class.)  Some will be stricter with leukemia than others.

How does lymphoma affect buying life insurance?

There are two categories of lymphoma: Hodgkin and non-Hodgkin.  The difference between the two is based on the type of cancer cells present.  According to Cancer Treatment Centers of America, Hodgkin lymphoma is rare, accounting for about .5 percent of all new cancers diagnosed.  Non-Hodgkin lymphoma is more common being the seventh most diagnosed cancer.

In the majority of cases, applicants with a history of lymphoma will be assigned a flat extra for the first few years, unless a good number of years (like ten) have passed since treatment.

Let’s take a look at an example.

Example

 

John Doe is a 54-year-old male, non-smoker, applying for a 20-year $250,000 term policy.  He was diagnosed with stage 3 non-Hodgkin lymphoma five years ago.  He went through chemotherapy that same year and continued preventative treatment for two years following.  There has been no sign of recurrence.  He gets check-ups once per year.

John is approved at Table B with a flat extra of $15 per thousand for five years.  Here’s what all that means.  John is getting $250,000 in coverage, so to calculate the flat extra you multiply 15 by 250.  John will have to pay an extra $3750 per year on top of his normal premiums for five years.  Once year five is over, his premiums will drop to the regular Table B premium which will be $140 per month.

Again, no life insurance company underwrites the same way.  There are insurance carriers that would decline John outright.  This is why working with an independent agency like Quotacy is beneficial.  We have contracts with multiple A-rated carriers, so your chances of being approved are better.

How does myeloma affect buying life insurance?

Myeloma has different forms, but 90 percent of people who have been diagnosed with myeloma have multiple myeloma.  It’s called such because it affects several areas of the body versus just one site.  There is currently no cure for multiple myeloma, so life insurance approval may prove difficult.  Unless you have had a bone marrow transplant, an applicant diagnosed with multiple myeloma will typically be declined for life insurance.  Myeloma is, however, the least commonly diagnosed type of blood cancer.

Plasmacytoma and localized myeloma diagnoses, these are forms of myeloma in which cancer cells are found in only one site, have higher chances of life insurance approval.  Standard rates are even possible if enough years have passed since treatment.

If you have a history of blood cancer, don’t hesitate to apply for life insurance.  Applying for life insurance is free and there is no commitment to buy.  Here at Quotacy we have access to many life insurance carriers and will help to get you approved for coverage.  Start out by using our term quoting tool to run as many quotes as you would like – no contact information required.  We look forward to helping you get life insurance.

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What's the Difference: Homeowners Insurance vs. Home Warranty

 
 
While both are great protections to have, home insurance and home warranties offer different types of protection. Learn what each cover and why you should consider purchasing both.

 Owning a home is

Owning a home is one of the greatest investments you'll make in your life. Protecting your assets is not just smart—it's integral. The best way to do this is to purchase both a homeowner’s insurance policy and a home warranty. Purchasing both will cover your home, belongings, appliances and system components in case they need replacement or repair. But understanding the differences between the two products and why you need them can be tricky.

What is homeowners insurance?

A home insurance policy covers any accidental damage to your home and belongings due to theft, storms, fires, and some natural disasters. There are four primary areas covered under the policy: the interior and exterior of your home, personal property in case of theft, loss or damage, and general liability that can arise when a person is injured while on your property.

A home insurance policy is usually mandatory, and a bank will generally require you to obtain one before issuing a mortgage on a home. A policy is renewed yearly, and its average annual cost is between $300 and $1000. All home insurance policies offer a deductible, which is what you'll pay when a claim is made. The policy will then take care of any additional costs.

So for instance, say a pipe breaks and floods your kitchen. An insurance adjuster will come to your home and fill out a claim for repair and replacement of any damaged items in your home. Once the claim is approved, the insurance company will deduct the amount of your deductible and issue you a payment for the rest of balance to repair your home. This deductible can also assist in lowering your yearly policy premium. The higher your deductible, the lower your yearly home insurance policy will cost.

What is a Home Warranty?

A home warranty is a service contract that provides for repair or replacement of your system components and appliances that fail due to age and standard wear and tear. For instance, components of your HVAC, electrical, and plumbing, kitchen appliances and washer/dryer are all typically covered under this warranty. You can also cover larger systems like your pool and spa. Home warranties typically have 12-month contract terms and are not mandatory to obtain a mortgage. A home warranty is purely elective, but it’s a smart purchase. Appliance and system combo plans can be purchased for around $75 per month, with add-on coverage for items like an additional refrigerator or pool system available for extra costs.

So let's say your HVAC system stops working. In that case, a licensed, pre-screened technician will come out and assess the problem. If it's determined that the system is no longer working because of age or wear and tear and the breakdown is covered under the terms of your service contract, the service contractor will make the repair, or if necessary, will replace the appliance or system for just the cost of your service call. A one-time service call generally cost (depending on your policy) up tp $125, and the home warranty company pays the rest. The protection of a home warranty potentially can save you hundreds or even thousands of out-of-pocket dollars and the headache of finding a trusted service contractor to make the repairs.

Let’s face it – life happens and things break. When they do, a home warranty from American Home Shield can make it easier to get a qualified professional on the case while keeping your budget in line.

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Term Life Insurance for 35 Years

35 years is a long time.

Think about some of the things that happened or were popular in 1981.

  • Raiders of the Lost Ark
  • MTV began
  • Prince Charles and Lady Diana married
  • Hall & Oates
  • The Rubik’s Cube
  • Donkey Kong

A lot can happen in that time of time. The fall of The Soviet Union. The Internet. Mobile phones. Emoji. 35-yr term life insurance.

Yes, you read that right. You can now buy term life insurance with a term period of 35 years from American General Life Insurance Company.

Until now, the longest term period available was 30 years. But with the new term length, you can lock in a low rate up to age 45 and keep it until you are 80 years old.

Will you need term life insurance for 35 years?

Maybe and maybe not. It all depends on your unique circumstances. Things to consider include:

  • How many years until your youngest child leaves home?
  • How many years until all your children (and perhaps grandchildren) graduate college?
  • How many years until you pay off your mortgage?
  • How many years until you retire?

This is a start, but there’s more to it. Thankfully, we’ve written a thorough guide to help you find out how long you will need term life insurance.

It’s important to note that you are never ‘stuck’ in a policy for the entire term length. Meaning, you can always cancel the policy before the term expires without incurring any penalties or fees. Most life insurance companies will refund any unused premiums as well. Just in time for last-minute holiday shopping!

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3 Ways Life Insurance Can Benefit a Charity You Love

Would you like to make a charitable gift to help organizations or people in need; to support a specific cause; for recognition such as a naming opportunity at a school or university? Perhaps you would do it just for the tax incentives. There are any number of reasons, and life insurance can be one of the most efficient tools to achieve these purposes. So the question becomes, how does this work?

Let me list the ways.

1. Make a charity the beneficiary of an existing policy. Perhaps you have a policy you no longer need. Make the charity the beneficiary, and the policy will not be included in your estate at your death. This also allows you to retain control of both the cash value and the named beneficiary. If you want or need to change the charity named as beneficiary, you can.

2. Make a charity both the owner and beneficiary of an existing policy. This gives you both a current tax deduction along with removing the policy from your estate. Once you gift the policy, you no longer have any control over the values.

3. Purchase a new policy on your life. Life insurance is an extremely efficient way to provide a large future legacy to a charity in your name without needing to write the large checks now. The premiums are given directly to the charity which then pays the premiums on the policy. The charity also owns the cash value as an asset. I am using this concept in my own planning.

Many charities would prefer to have their money upfront, but if you cannot write that large check or don’t want to part with your cash today, a gift of life insurance is a most efficient method to leave a large legacy in your name.

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Fixing the Life Insurance Marketplace

The life insurance market is characterized not only by an absence of reliable price information but also by the presence of deceptive price information...the deceptive sales practices found in the life insurance industry constitute a national scandal.” So testified Professor Joseph Belth, an expert on the life insurance industry, before Congress in 1973. Can this statement, from more than 40 years ago, still be as true today?  And is it possible for such deplorable industry practices to be occurring without being in the spotlight of public attention?

The short answers are yes. To this day the life insurance industry too often relies on inadequate product disclosure, misinformation, and fraudulent practices, thereby costing consumers billions of dollars annually. Industry executives have for years acknowledged that no one would buy many of their companies' products if they were appropriately informed.

The free market economic system is built upon informed buyers making educated decisions. Yet so many life insurance industry chieftains who regularly sing the praise of our economic system fail to acknowledge that their businesses haven't satisfied the system’s prerequisites or played by its rules.

Empirical proof of the life insurance market’s dysfunction is readily apparent by examining the very products life insurers and their agents sell. While a select few cash-value life insurance policies can provide excellent competitive value, perhaps 95% of such policies sold provide value no informed consumer would accept. This marketplace’s dearth of information also afflicts tens of millions of policyholders at annual renewal; if properly informed, millions of them currently could readily obtain much better value. Consumers of the industry’s other main products, annuities and long term care insurance, also face enormous disclosure-related problems.

The root of the age-old problem is the inadequate disclosure of information surrounding cash-value policies, such as whole life policies, where the annual cost is not the annual premium. Professor Belth and I have both long recommended disclosure about a policy’s annual costs and rate of return on its cash-values.  

The attached table of an actual insurance policy’s historical performance (see below) shows how this information on a policy’s annual costs and rates of return on its cash-values can be presented on a year-by-year basis and summarized over the duration with average or aggregate measures. Similar cost and rate information can be calculated on any and all prospective new and in-force policies via online consumer-friendly analytical tools. Understanding policies from this framework, and with solid knowledge of the differences between illustrated future values and actual future performance, enables consumers to assess the competitiveness of a policy’s costs and rates. For example, a healthy 40 year-old male can  compare his policy's costs with benchmarks that are available in the marketplace and its rates of return with suitable alternative investments. 

A cash-value life insurance policy’s unique intrinsic economic advantages arise from its Congressionally-granted tax privileges, not its highly touted permanence; after all, a term policy can be converted or exchanged into a policy providing lifelong, permanent coverage. These tax privileges, which are given directly to policyholders, however, are not a basis for which insurers can charge consumers; no one pays thousands of dollars to set-up an individual retirement account (IRA). Consequently, when selling such cash-value policies as whole life agents routinely make assorted misrepresentations. Agents often misleadingly state: 1) that a whole life policyholder pays for a lifetime of costs upfront, and that doing such and owning his/her coverage is better than endlessly renting it; 2) that buying a whole life policy at a younger age locks in a lower level cost for life; and 3) that the annual costs of a whole life policy can actually decline as the insured ages because these policies can pay dividends. These three common agent statements, and myriad variations of such, are deceptive.

Regulations prohibit such misrepresentations, but they have never been enforced. These and other misrepresentations are all designed to distort a cash value policy’s fundamental difference. For agents, the essential difference between whole life and term insurance is the quantum difference in the sales commissions – up to 5-9 times larger on whole life policies than on term policies. No one familiar with the paramount role that compensation incentives tied to the origination of subprime mortgages and the repackaging of such default-inevitable, toxic securities played in creating the Great Recession can doubt the perniciousness of the life insurance industry’s age-old problematic sales practices.

A successful consumer-agent relationship can only be built on trust, so predicating it upon inadequate disclosure is inherently counter-productive to all. While inadequate disclosure appears to be in the insurers’ and agents’ interest, it actually has made consumers so leery of agents that the age-old distribution process is so terribly inefficient and ineffective. Americans’ under-insurance – having woefully less life insurance than needed or appropriate - reaches new records every year. Some insurers’ policy lapse rates raise fundamental questions regarding the products’ suitability that regulators have never examined. And, the facts that the typical life insurance agent sells less than one policy per week and that four out of five new sales recruits fail out of the business within a few years are further proof of this industry's failed business approaches.

Given the nature of the problem, improved disclosure and publicity of such have always been known to be two indispensable parts of the inevitable solution. Contrary to general opinion, however, there is no need to wait to for this industry’s state regulators to act and mandate disclosure. The necessary disclosures, after all, are not proprietary or esoteric. As is shown in the table, life insurance policies, like an automobiles’ horsepower or MPG, can be disclosed, not only by the manufacturer but by anyone with the necessary expertise and this information is now available online.

Without publicity though, this public good of disclosure remains undiscovered. Reform of the life insurance industry has always merely been a battle of wills. Reformers have had to confront industry, an uninterested or uninformed media, regulators not understanding their jobs or unwilling or unable to do them, and/or reformers’ own doubts about ever succeeding. Financial markets can be fixed when appropriate policy disclosure for consumers is heralded and becomes pervasive.

When will this information be publicly disseminated, so that everyone knows about it and can use it, thereby initiating the long-overdue repair of the life insurance marketplace? This disclosure-driven transformation will produce the myriad and well-documented benefits of genuine economic competition: consumers will obtain better value; insurers will improve the efficiency of their production processes; and agents will act and be seen as trustworthy professionals. Clearly, the sooner this time comes, the sooner Americans can start saving billions of dollars per year, the better for everyone.

 

Actual Historical Performance of a Whole Life Policy
$250,000 issued 20+ Years ago (in 1989) to a 45 Year Old Male, Best Health
*Annual Premium $5815 Paid All Years
** Notes below provide additional information

Age During Year

Insurance Death Benefit

Cash-Value

Total Annual Costs

Annual Dividend Rate

45

            251,425

  408

            5,444

10.00%

46

            253,954

 5,134

            1,556

10.00%

47

            256,890

10,188

            1,624

9.25%

48

            260,927

 15,823

            1,520

9.25%

49

            265,684

21,955

            1,403

8.50%

50

            271,380

28,709

            1,310

8.50%

51

            278,019

36,119

            1,235

8.50%

52

            285,871

44,344

            1,064

8.50%

53

            295,056

53,487

            998

8.80%

54

            305,332

63,521

            919

8.80%

55

            316,703

74,519

            844

8.80%

56

            328,867

86,417

            907

8.80%

57

            341,858

99,309

            787

8.60%

58

            354,658

112,782

            889

8.20%

59

            366,807

126,628

            1,022

7.70%

60

            378,831

141,112

            1,176

7.50%

61

            391,554

156,699

            1,160

7.50%

62

            404,738

173,322

            1,284

7.50%

63

            418,387

191,040

            1,425

7.50%

64

            429,215

207,946

            1,601

6.50%

 

 

 

Avg. Rate:

8.43%

 

**Insurance Death Benefit shows the amount the policyholder’s beneficiary would receive after his death
Cash-Value is the cash amount the insurer gives to the policyholder if he cancels his contract
Total Annual Costs show the amount expensed from policy premiums (and policy cash values if and when necessary) to pay for sales, claim, administrative, capital charges and any other miscellaneous costs, such as premium taxes.
Annual Dividend Rate is the rate earned by policyholder, net of investment management costs, on policy cash values, that is, values after costs.        

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CAN YOU BE DENIED AUTO INSURANCE IF CONVICTED OF A MOVING VIOLATION?

A moving violation can be a serious mistake or a minor one. In many situations, your auto insurance provider is there to help you through mistakes you might make. However, there are some situations where it can become difficult to obtain auto insurance. If you are labeled a high-risk driver, it may be hard to obtain car insurance or affordable plans. There are several things to keep in mind in this situation.

Can You Be Denied?

Most states have requirements that those who operate a motor vehicle (or own one) must have auto insurance in place. This is required for nearly all drivers. However, car insurance providers are able to deny individuals coverage if the driver is too high of a risk to insure. It can be hard to obtain insurance if you have such a label because the risk of another mistake, accident or moving violation is high.

By definition, a high-risk driver is someone who has a higher potential of filing a claim at some time in the future. Insurers view these individuals as high risk and costly, therefore charging a significant amount more to cover individuals, or simply denying coverage altogether. There are many reasons for this outcome, including a DUI/DWI conviction, illegal street racing, excessive speeding, reckless driving, driving without licensing and traffic violations in which a person died or got seriously injured.

What Should You Do?

If you are a high-risk driver, you will need to work to minimize such risks going forward. More so, if you find a policy that offers coverage to you, be sure to do everything you can to reduce your points. In some cases, you may be able to take a driving course to reduce your points. You may need to obtain an SR-22 as well, which generally is a requirement by the department of motor vehicles. Most people can find a policy available to them, though it can be expensive and hard to do without the help of an independent insurance agent. The right auto insurance provider is likely available even for high-risk drivers.

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The Impact of Health Insurance on Your Life

For most of us, a health insurance policy is yet another document to be safeguarded in a cabinet in our house and/or a folder in our computer until circumstances require us to put it in use. Less do we realize how investing in a health plan transforms our life for better.

Uncertainty is a part and parcel of our being and a health policy plays a major role in helping us lead a peaceful lifestyle. It backs us up against any medical emergency that might strike unexpectedly.

 

We catalog here all the major health insurance benefits that you gain from your health insurance policy, in detail; Get to know your plan better, to live better:

Budgeting

Let us start from the foreground. The major purpose of buying a health plan is to ensure that you have adequate money to fund your medical treatment in the time of need, which translates to effective financial planning. This forethought also applies when it comes to making an investment in purchasing the policy, in the first place. Insurance companies offer a range of plans and premiums to fit everyone’s paying capacity.

Flexibility

Now the question arises, does spending what we can is evenly matched with what we should; or are we missing out on any important features? Fortunately, to match the changing healthcare needs, the insurers allow customization of health insurance policy at the time of purchase or renewal. So whenever an upgrade is available, use it to enhance your existing policy with a top-up feature. It can also be utilized to fit your changing needs. For instance, you might need a Family Health Insurance few years down the line.In that case, you’ll not have to sign up for a new policy as you will be able to alter your existing one. The mantra here is to pick the basics and load it up as and when you can.

Medical Concierge Services

To have the treasure and not know how to put it to good use is as good as no treasure. Not all of us are well-versed with our treatment requirements or the facilities available in our nearest hospitals. Our little knowledge further restricts in the state of panic, which often accompanies such situations. To support you through these perils, your insurance company provides medical concierge services that assist you through your illness—everything from making appointment and arrangements for the treatment to clearing off the bills.

Lifelong protection

Most of the health policies come with an upper cap on the age-limit of the individuals they cater to. This may mean leaving you unprotected at an age when you need it the most. However, certain insurance providers, like HDFC ERGO, offer policies with a lifetime renewability feature. Moreover, if you buy this policy before the age of 45, you would not even be required to take a preliminary health check-up.

Cashless Hospitalization

The help that you have when you most need it is the only help you have. Going through difficulties to arrange money for paying off your hospital bills and getting the reimbursement later cuts down your worries, but does not cease them completely. For your outright peace of mind, companies offer Cashless Hospitalization Service. Here, you just need to report your case and policy number at the insurance help desk in your desired network-hospital and the rest will be taken care of.

Recovery Benefit

The end of the course of hospitalization/treatment does not necessarily mean the complete recovery of your health. The best Health Insurance Policy will support you through the post-hospitalization period too. Here, your company provides extended financial aid, also called as convalescence benefit, to fund your daily expenses till you are fit to restore your daily lifestyle.

Attendant Allowance

Everything that is a part of your health re-establishment, be it your hospital or a loved one who takes care of you while you are sick, is your company’s responsibility. An attendant allowance pays towards the food and refreshment of the person who looks after you in the hospital.

Portability

Like I have mentioned before, you do not freeze the policy after you buy it for the first time. With changing circumstances over time your requirements may change too. To redesign your plan, in order to help it adapt to your present situation, you can transfer your existing plan to a different company that you may find better.

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Home Warranty Basics and What It Covers

 
A home warranty is one of the best means of protecting your budget that a homeowner can have. But, what exactly IS a home warranty?
 

As a homeowner, costly repairs are probably one of your greatest worries. So what if someone told you that you could help alleviate those fears with the knowledge that if something does break, it's covered for one simple service fee? Sounds too good to be true? Well, it's not. A home warranty is one of the best means of protecting your budget that a homeowner can have.


So what exactly is a home warranty?
A home warranty is a one-year service contract that covers repairs and replacements of most major home appliances and system components due to failure, standard usage and other problems that happen due to age.

What does it cover?
A home warranty will typically cover most major components of large home systems, such as your HVAC (central heating ventilation air condition), hot water heaters, plumbing, electrical and more. It may also cover regular appliances such as washers, dryers, refrigerators and stoves. Some plans allow you to purchase optional add-on coverage for your spa, second refrigerator, swimming pool, pumps and more.

Watch video: Home Warranties Explained

How does it work?
When your appliance or home system breaks down, call your home warranty company. If the breakdown is covered by your plan, they will set up an appointment with a licensed, pre-screened service provider in your area. When the licensed service technician arrives, they will assess the situation and your coverage and tell you the proper course of action to repair your appliance. Then you pay them only the service call fee (up to $125, depending on the home warranty company). The rest of the cost is covered by the home warranty company.

When do you purchase a home warranty?
A home warranty can be purchased when you first purchase your home or anytime during your ownership. Moving and adapting to a new neighborhood can be stressful enough for you and your family. Knowing that your appliances are covered by a home warranty can alleviate a great deal of worry.

How long will it last?
Most home warranty terms are one year. This is a 12-month contract which in many cases is renewable from year to year.

How much do they cost?
Depending on your provider and your location, home warranties can run around $75 per month for a policy that includes most major appliances and home systems. You can add on coverage for additional larger systems like pools and spas.

How can a home warranty help me sell my home?
When it comes to selling your home, offering a home warranty in the contract is an excellent way to entice buyers. It shows good faith and offers an assurance to buyers that the home appliances and major components of home systems are covered for the first year of ownership. If you already have a home warranty, a typical policy can be transferred to the new owner.

Not only will a home warranty protect your largest investment, but it's sure to help you plan for the unexpected. Now, who doesn't want that? Learn just how much you can rest easier with a free AHS quote.
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