When Does a 10-Year Term Policy Make Sense?

Term life insurance can be seen as income replacement if you were to die prematurely.  It’s affordable and customizable.  One of the ways you can customize your term life insurance is with the term length.

The term length of a policy determines how many years you have insurance coverage for.  A permanent life insurance policy lasts forever – hence calling it “permanent.”  A term life insurance policy lasts a specific number of years – a “term”.  The typical term length options are 10, 15, 20, 25 or 30 years.  So, if you were 30 years old and you purchased a 25-year term policy, you would be insured until you were 55 years old.

A 10-year term policy is one of the cheapest life insurance policies you can buy, which makes sense because the coverage it provides lasts the fewest amount of years.

The Estimated Monthly Cost of a
$250,000 10-Year Term Policy
for a Healthy, Non-Smoker

Age

Male Female
25 $11

$10

30

$11

$10

35

$12

$11

40

$14 $13
45 $20

$17

50

$28 $23
55 $41

$31

60

$63

$46

Even though a 10-year policy may not last very long, there are still situations in which it makes sense to purchase one.

Buy a 10-year term policy if it’s all you can afford.

You may have a lot of bills.  Maybe you’ve got credit card debt.  You couldn’t possibly afford to buy life insurance now, right?  Wrong.  It’s in situations like these when you likely need life insurance the most and can’t afford not to have it.  If your income were to suddenly disappear, what would happen to your family?  If you were already struggling financially, your death won’t make things easier.  Final expenses – such as any debt you had and your funeral costs – would be up to your family to somehow pay.

A 10-year term policy can protect your income and your family’s future while you work toward paying off debt.  A little bit of life insurance is always better than none at all.  Once your finances are more secure, if you decide you want to purchase more life insurance this is always an option.  You can either convert your 10-year policy into a permanent policy (if your policy is convertible) or you can purchase a new term policy.

Buy a 10-year term policy if you are close to retirement.

Most of the time term life insurance policies are purchased to cover the most financially-vulnerable years, such as when your children are small and you have quite a few years left on your mortgage loan.  Other times term life insurance policies are purchased to protect financial responsibilities that may crop up later in life, such as the purchase of a vacation home or your adult child’s graduate school tuition.

As an example, let’s say you are 55 years old and you and your spouse pull the trigger and finally buy that dream condo on the ocean.  It will be a great place for your children and grandchildren to visit.  However, one of your children isn’t quite done with graduate school and tuition isn’t decreasing anytime soon.  You have savings, Social Security benefits will be starting soon, and even though you’re healthy, you still want to be sure that if the unexpected happened, your spouse wouldn’t have to sell the condo and your child could finish school.

The Estimated Monthly Cost of a
10-Year Term Policy
for a Healthy, Non-Smoking 55-Year-Old
Coverage Amount Gender
$100,000 Male = $22
Female = $20
$250,000 Male = $42
Female = $32
$300,000 Male = $48
Female = $37
$500,000 Male = $73
Female = $55
$750,000 Male = $107
Female = $80
$1,000,000 Male = $136
Female = $102

Buy a 10-year term policy to supplement your existing life insurance.

Perhaps you planned ahead when you were young and bought life insurance right after your first child.  You locked in a great low premium payment for a 30-year $250,000 term policy.  Perfect.  Your child will be financially protected through her college years and your spouse could pay for your funeral and rent each month.

Now, fifteen years later you’re 40 years old and realize that your $250,000 policy won’t cover your $400,000 mortgage loan.  Instead of applying for a brand new 30-year policy with a $500,000 coverage amount, you can opt to add to your current coverage with a new 10-year policy $250,000 policy.  This will ensure you have an appropriate amount of coverage for the next ten years while you’re paying off your mortgage and through your daughter’s college years – without being over-insured.

Buy a 10-year term policy to protect a loan.

Whether you need to take out a personal or business loan, lenders need to know how you plan on paying back the loan.  They also like a backup plan as assurance that they won’t lose money should you die unexpectedly before the balance is paid in full.  One such option is to assign a term policy as your payment backup should you die.  Lenders will be more inclined to approve your loan if they see you have all intentions of paying it back – even in death.

Interested in a 10-year term life insurance policy?  Finding out how little a policy may cost you is incredibly easy.  Visit E-exchanger.com/lifeinsurance. – run as many quotes as you want without being required to enter contact information.  We look forward to helping you purchase life insurance.

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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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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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Roof Repairs: What to Look For and What's Covered

Your roof is your home's first line of defense against the outside elements. Everything from wind, rain, ice, snow and the sun are constantly being weathered by and weathering your roof.

Home warranties, or home service contracts, claim to cover everything under your roof. But do they cover the roof itself?

In the case of roof coverage, there are usually specific repairs the home service contract will cover, or not. With the disclaimer that most home warranty companies offer roof repair as an optional add-on, some cover it as part of their standard plans. The scope of coverage by most service contracts that offer roof repair as an option include leak repairs or shingle replacement, but no home service contract (that we've come across) offers a roof option that would cover the complete re-roofing of a property.

Roof Repair Coverage Options and Limitations

Home service contracts come in a variety of plan options. Oftentimes, they cover specific appliances or systems and exclude most parts of the structure of the home, like windows, the roof and the interior and exterior components of the walls. Some plans cover one or two items, like a dishwasher and garbage disposal, while others are very inclusive to the extent that your roof and other structural elements are covered, however usually with limitations. The key is to read through the details, because the one common denominator in all home service contracts is that they are all very different.

Other stipulations include coverage periods for different parts of the home. For example, the foundation may be covered for a different period of time than the roof or other structural elements. Also, some home service contracts start on an activation date that is pre-selected by the homeowner, which may be different from the date the contract was actually purchased on. Some companies also require a waiting period, such as 30 days after purchase, before claims can be made. Again, read through the details carefully.

Roof Repair Scams to Be Aware Of

Part I: Gaining Access

Roofing contractors as an industry ranked number one on the Better Business Bureau's 2016 Compliant and Inquiry Statistics report for the sheer amount of inquiries made by consumers last year. Out of the thousands of industries ranked, roofing contractors ranked number 22 based on complaints.

To put these figures in perspective, painting contractors ranked number 21 based on inquiries and number 120 based on complaints. Home builders ranked number 8 based on inquiries and number 32 for complaints.

When it comes to roofing contractors, be aware of who you entrust your home with, and be especially aware of these roofing scams:

Storm Chasers

Has your area recently been hit by a hailstorm or a rainstorm? If yes, then you may have been contacted by a roofing contractor to fix your damaged or leaking roof at a great discount, or at almost no cost. They do this by helping homeowners claim insurance money for repairs that don't need to be made. This is a kind of scam that is being perpetrated widely across the U.S. A well-dressed professional may knock at your door and offer you a free inspection of your roof, claiming it has most likely been damaged by the recent storm. They may also tell you that your roof is in danger, and share they've recently repaired nearby properties that have suffered similar roof damages. Furthermore, they may offer you cheap construction materials, claiming they recently repaired similar structures nearby and have leftover materials. 

The Flyer

Another method adopted by these roofing contractor cons is to make contact with prospective customers by leaving flyers on doorknobs or in mailboxes. The flyer will typically advertise a 'free roof inspection' or 'roof repairs at zero cost' by offering to assist customers in filing illegitimate claims with their insurance companies for repairs they don't actually do. These people normally target storm hit areas, senior citizens and people with disabilities who cannot climb up to their roofs to inspect them for themselves.

Showing and Creating False Damage

Once contractors gain access to a roof, as part of their 'free inspection,' they climb up to assess the status of the roof. If there isn't any damage they either create damage using tools, or claim the shingles are weak or poorly attached. Even worse, they sometimes show pictures of damaged roofs taken somewhere else and pass it off as the prospective customer's damaged roof. The contractor then insists on fixing it immediately in order to avoid additional damage or will cite forecasted bad weather coming soon.

Part II: Payment Options

Once these faux roofing contractors convince people their roofs are in dire need of repair, they move onto payment options.

Some of the common terms and discounts they advertise are:

Discounted Material

Some contractors will offer discounts ranging from 20–30 percent off the estimated cost for materials by telling customers their supplies are from previous work. The leftover materials are available at discounted prices while their team is in the neighborhood, and they'll pressure customers to act immediately.

Insurance Fraud

This is one of the most widely occurring roofing fraud types across the U.S. Here, the roofing contractor offers to inflate the bill and charge it to the insurance company on behalf of the customer. They'll also offer to reimburse the customer for their insurance deductible, so in the end, the customer ends up paying nothing at all. Some people get duped by this free service offering, but what they may not realize is that this is insurance fraud and can be damaging to both the contractor and the customer.

Pay Upfront

The contractor insists the customer pays the full amount for the repairs up front. Some will indicate they need this in order to purchase the necessary supplies or ask for a minimum of 50 percent down in order to allot the crew for the repairs. Whether it's 100 percent or 50 percent, once they receive payment, some contractors will disappear completely. Contractors who do this frequently avoid detection by moving or operating in different regions or under different business names.

Part III: Protect Yourself

It is crucial for customers to be alert and diligent when engaging roofing contractors to fix a damaged roof, or a roof a contractor is claiming to be damaged.

Some measures homeowners can take to avoid roofing contractor scams are:

  • Speak to neighbors to ask if they have roof damages and if they've recently had them repaired.
  • Verify the credentials and the business license details of the contractor before signing a work agreement.
  • Ask the contractor for local references or testimonials that can be verified by phone and email.
  • Check with your insurance agent and/or home warranty company to see if roof damages are covered under the insurance policy or home warranty plan, and if the company performing the repairs is valid and in existence.
  • Make sure that all verbally agreed upon points are covered in the written contract with the roofing contractor and that documentation for all repairs is properly noted.
  • Investigate the track record of the roofing contractor you're considering hiring – check online reviews and references personally.
  • Collect a business card from the contractor; if a business address is listed, consider stopping by the office.

In Conclusion

One of the best features of home warranties, especially as it relates to roofing contractors, is that contractors servicing home warranty companies and their clients are:

  • Pre-screened for licensing and insurance as required by their respective states
  • Regularly monitored and evaluated for their performance
  • Graded and rewarded for the quality of their work
  • Backed by the home warranty company on covered repairs

Using a contractor through a home service company instead of someone off the street advising you on repairs you need will drastically mitigate potential scams you may fall victim to by a random roofing contractor soliciting you.

While some home warranties offer limited roof protection and leak coverage, it's important to remember that no home warranty will cover any pre-existing conditions. The roof protection and leak coverage options available through home warranties are rare and fairly limited. Most cover patches for small leaks, and none (that we know of) cover partial or entire roof replacement.

Chances are, if you are purchasing a home warranty solely for its roof repair and protection options, you will not be very satisfied. Home warranty contracts work best when properly used and understood, which is why it's important to compare plan details.

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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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August is National Children’s Eye Health and Safety Month

August is National Children’s Eye Health and Safety Month. While you’re likely focused on back-to-school shopping and planning, this is a reminder to schedule your annual eye exams as well. Eye exams are especially important at a young age since good eyesight leads to better learning.

How can an eye exam help my child?

Eye exams can identify a number of complications that are easily treated early on. Children’s eye exams can not only tell you if your child needs corrective lenses but can also spot astigmatisms and “lazy eyes” and correct them.

When should I schedule my child’s first eye exam?

The American Optometric Association (AOA), recommends that a child’s first eye exam should be at six-months old. At this age, doctors can ensure that your child’s eyes are developing normally.

The AOA suggests school-aged children receive annual examinations, especially outside of school-offered vision screenings. As children grow, their eyes can change quickly, so annual check-ups are a great way to spot and track any changes.

How can I pay for my child’s eye exam?

Paying for glasses and contacts can be expensive. However, vision insurance can help cover the costs of eye exams, as well as part of the costs associated with glasses and contacts.


How can I get the most out of my vision insurance?

There are multiple ways to get the most out of your vision insurance aside from scheduling annual check-ups. At your checkup, ask to try on glasses so a doctor can give you accurate measurements for your glasses size. Consider buying glasses and contacts online rather than at the eye doctor. Purchasing online is most often the cheaper route, and sites like Warby Parker even offer a free home try on the package.

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Make Sure You Are Always Getting The Most Out Of Your Extended Auto Warranty

Motorists can feel at ease when they buy an extended auto warranty. However, peace of mind comes when motorists are getting the most out of their auto warranty. In order to do so, it is important for them to organize their documents and ask all of the necessary questions. The following tips can help motorists get the most out of their auto warranty:

Often times, service records are necessary for an extended warranty. This makes it very important to keep all records organized. Keeping the documents in an accessible location at all times will help relieve a lot of stress and frustrations down the road.

It is always good to keep records on your computer, however it is important that you do not solely rely on this method of keeping records. Make sure that when you purchase an auto warranty online that you print hard copies as well. You cannot always predict when your computer will crash, and it would be very inconvenient if it were at a time when you needed to view your auto warranty.

Also, be sure that you read through your auto warranty in its entirety. If you do not see something that is written in the contract, then it will not be covered by the warranty. Do not make any assumptions about what your warranty covers.

Finally, make sure that you can easily access contact information at any time. This can really help relieve stress in the event that you file a claim.

 

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Extended Car Warranty, How To Choose The Right Plan…

There are many extended car warranty programs to choose from but it can be a bit tricky to find a “reputable” plan to suit your needs. The best way to choose a reliable extended car warranty program is to find a company that makes the following criteria…

1. Make sure the company is in business for 10 years or more. This assures you that they are not only in the business of selling coverage but also successfully paying claims.
2. You want to choose a company that has an A+ rating with the Better Business Bureau and perhaps more importantly, is accredited by the BBB which holds them to a much higher standard of excellent business practices and customer service.
3. You want the warranty program to be directly underwritten by a US-based insurance carrier holding at least an A rating with an industry rating service such as AMBest or Standard & Poors. This will assure you that if any part of the claims administration process fails the underwriter will directly pick up all claims if needed.

There are also many different levels of coverage available for your vehicle. These levels are Powertrain, Major Component Plus, High-Tech Component, Component Type Bumper-To-Bumper, or Exclusionary Bumper-To-Bumper coverage. Depending on the age and mileage of the vehicle all or most of these levels could be available. It is important to look through the different levels of coverage for any companies you are considering side-by-side to make sure that you are purchasing the best coverage available for your needs. Do not rely on plan names such as Platinum, Elite, or Gold as they do not always correctly define the level of coverage you are purchasing. Some less than reputable companies will take a very basic plan and label it with a very fancy name. You want to look at the actual list of what is covered to make sure you are getting what you’re paying for.

All in all, an extended car warranty is an excellent investment and can save you thousands of dollars over the term of the coverage. To begin researching the different types of coverage you can visit Auto Advantage and see what the choices are. It is a great idea to fill out the quote request form and let them send you the specifics including coverage details and pricing.

 

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Does An Extended Auto Warranty Cover Overheating?

When you are choosing an extended auto warranty program is important to look through the various exclusions of the policy you are purchasing. Most reputable auto warranty providers make their inclusions and exclusions clear and concise and have no mixed wording to confuse a repair shop or customer. However, some of the shadier companies out there, typically without a direct underwriter to get out of many different claim situations.

Overheating is a good example of this. Some companies will exclude any repair, even if it has nothing to do with the vehicle overheating if there is any sign that an overheat has occurred. More reputable providers will cover the failure of any covered part as long as owner negligence did not close the failure. Owner negligence in reference to a vehicle that is overheated would be if a driver would continue to operate the vehicle even after the gauges or warning lights have come on. This would obviously cause additional damage to the vehicle from continued operation after the overheat and would not be covered by any warranty program. So in conclusion, it is not overheating that is not covered by a quality auto warranty program, it is the damage caused to the vehicle by the continued operation after the vehicle has overheated.

To be sure you get one of the highest quality auto warranty is available you can request a quote from Auto Advantage or other A+ rated and BBB accredited warranty companies.

 

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Does Your Warranty Include Wear & Tear Coverage?

When purchasing extended coverage for your vehicle is important to understand what the coverage does and does not cover. One of the main items that some “shady” companies will exclude from coverage is breakdowns of covered parts that have failed due to wear & tear. A wear & tear failure is a breakdown of the part has not completely failed but is no longer working the way the manufacturer intended to. This means that if a covered part has not completely failed, but is beginning to fail but has not stopped working completely or broken into pieces they would exclude it from their coverage.

It is important to know the difference between wear & tear items and scheduled maintenance items. Scheduled maintenance items are not covered by any extended automobile warranty. Examples of scheduled maintenance items are oil changes, tune-ups, tires, wiper blades, batteries, etc.

All “reputable” auto warranty companies will include breakdowns of covered parts that have failed for any reason including wear & tear. All Auto Advantage auto warranty programs include breakdowns due to wear & tear.

 

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