Insurance - All the Basics

What is insurance?
Insurance is a means of providing protection against financial loss in a great variety of situations. It is a contract in which one party agrees to pay for another party's financial loss resulting from a specified event.
Insurance works on the principal of sharing losses. If you wish to be insured, against any type of loss, agree to make regular payments, called premiums, to an insurance company. In return, the company gives you a contract, the insurance policy. The company promises to pay a certain sum of money for the type of loss stated in the policy.
History
Insurance is thousands of years old. The Code of Hammurabi, a collection of Babylonian laws of 1700BC, is believed to be the first form of credit insurance. A borrower did not have to repay a loan if personal misfortune made it impossible to do so. Insurance as we know it today can be traced to the Great Fire of London in 1666, which devoured 13,200 houses. In the aftermath of this disaster, Nicholas Barbon opened an office to insure buildings.
Types of Insurance
Insurance generally covers situations involving pure risk - that is, situations in which only losses can occur. Such situations include fire, floods and accidents. People also buy insurance to cover unusual types of financial losses like, a dancer might insure her legs against injury. There are mainly three types of insurance policies sold:
1. Life Insurance
A life insurance policy provides that the insurance company will pay a certain amount when the person dies. This may be paid in a lump sum or in installments to the beneficiary [people named by the policyholder to receive the death benefit]. Some types of life insurance policies also enable policyholders to save money. Such policies have a cash value. A policyholder may borrow money against the cash value or surrender the policy for its cash value.
Annuities
These are savings plans sold by insurance companies to provide a fixed and regular retirement income. If the annuitant [owner of the annuity] dies before receiving the guaranteed number of payments, the insurance company must continue the payments to the beneficiary.
Dividends
Some insurance policies refund part of the premiums in the form of dividends. Such policies are called participating policies. An insurance company pays dividends if the money it collected in premiums exceeds the amount needed to pay benefits and administrative costs. Dividends may also include a share of the profits the company earned on investments made with premium funds. Dividends are most commonly paid on life insurance.
2. Private Health Insurance
Health insurance pays all or part of the cost of hospitalization, surgery, laboratory tests, medicines, and other medical care. The rising cost of medical care has increased the need for adequate health insurance. You could suffer a major financial hardship without such coverage, especially in case of a serious illness or accident.
Dental insurance is one of the fastest-growing types of health insurance. It helps pay for a wide variety of dental services.
3. Property & Liability Insurance
Individuals and businesses buy property and liability insurance to protect their assets against financial loss. Property insurance provides direct compensation if a policyholder's possessions are damaged, destroyed, or lost as a result of perils. Liability insurance protects individuals and businesses against possible financial losses if their actions result in bodily injury to others or in harm to property owned by others.
The main types of individual coverage are:
o Homeowners Insurance
This provides protection against losses from damages to an owner's home and its contents.
o Automobile Insurance
This is the most widely purchased and most important kinds of insurance. Drivers are legally responsible for any costs arising from accidents they cause. This insurance protects a policyholder against financial losses from accidents.
Financial viability of Insurance Companies
Financial stability and strength of the insurance company should be a major consideration when purchasing an insurance contract. An insurance premium paid currently provides coverage for losses that might arise many years in the future. For that reason, the viability of the insurance carrier is very important. In recent years, a number of insurance companies have become insolvent, leaving their policyholders with no coverage (or coverage only from a government-backed insurance pool with less attractive payouts for losses).
How Insurance Is Sold
Most insurance companies sell policies through agents. Exclusive agents are employees of an insurance company who sell only that company's policies. Independent agents sell policies for several companies.

6 Factors that Could Affect Your Auto Insurance Premium

When it comes to car insurance, many consumers have no idea what insurers look at to come up with the almighty premium amount. But believe it or not, insurers don't pull your auto insurance rates out of thin air.
To help you secure the lowest possible insurance rate, it's important to learn about the factors that could be affecting your premium--and how to use those factors to tip the scale in your favor!
Factor #1: Your Driving Record
It's probably no surprise to you that insurers look at your driving record. They do so to gauge or estimate the risk to insure you. But what exactly are they looking for? Insurers will scan your driving record for at-fault accidents, traffic violations and claims made, usually within the last three to five years. If you've received marks against your driving record, you can bet you'll be paying more for your auto insurance.
The good news: Marks against your driving record usually fall away in the eyes of your insurer after three years. You can avoid being penalized for a less than stellar driving record by driving as defensively as possible and avoiding filing small claims (such as those for hail damage) and paying for the repairs yourself.
Factor #2: Previous Insurance Coverage
If you're applying for car insurance under a new insurer, your prospective agent will almost certainly look into your previous insurance coverage. He or she will want to know if you paid your premiums on time, how many claims you filed with your old insurer, as well as any other problematic behavior that would increase your risk to insure.
Any red flags in previous insurance coverage will likely result in an increased insurance rate. And unfortunately, if you've not been previously insured, you may pay more car insurance until you establish an insurance history.
The good news: You can avoid these penalties in the future by paying your premiums on time, avoiding filing small claims and maintaining a respectful relationship with your insurers.
Factor #3: Your Credit History
According to a recent study by insurance research firm Conning and Company, 92 percent of the nation's 100 top insurers are factoring credit history into auto insurance premiums.
And while insurers are looking directly at credit scores, they're more interested at how you've used your credit in the past. Insurers will look at the length of your credit history, the amount of revolving debt you have and any collections or late payments to form an insurance score.
And while critics and consumers alike accuse insurers of using credit-based scoring as an excuse to inflate auto rates, there's a surprising amount of statistics to back the use of insurance scoring. In fact, studies have found that consumers at the bottom of the credit pool file 40 percent more claims that consumers with good credit. Insurers also use your credit history to judge the likelihood of paying your premiums on time. It's for these and other reasons that insurance scoring is most likely here to stay.
The good news: You can improve your insurance score by paying your bills on time, paying down high existing balances (such as those on credit cards), and having your car insurance premium automatically withdrawn from your account every month.
Bonus tip: Insurers tend to grant discounts for customers with automatic bill pay!
Factor #4: Geographic Location
Can insurers charge you more because of where you live?
Yes.
Statistically speaking, metropolitan areas see greater incidents of car accidents, theft and vandalism. These factors increase the risk that an insurer takes to cover you. Thus, if you live in the city, you may pay more for car insurance than if you lived in a more rural area or suburb.
The good news: While your premiums may go up in urban areas, you can score discounts if your car is kept under a carport, garage or parking structure. Make sure your agent knows of these safety measures--including any electronic theft deterrents in your car.
Factor #5: The Car in Question
It comes as a surprise to most that a brand new car often costs more to insure than one that's been around the block a few times.
How is this possible?
With all airbags and anti-theft devices in new cars, you'd think your premium would go down. But the fact of the matter is that newer cars can be more expensive to repair and replace--which will increase the amount you pay to cover the car.
The good news: Don't discount discounts! If your car has multiple air bags and other safety features, make sure your agent is aware of all of them. And you can avoid premium surprises in the future by getting an estimate on your insurance before buying that luxury coupe.
Factor #6: Use of the Car
Believe it or not, your insurer cares how much you use your car and what you use it for. While this may seem relatively unimportant, to an insurer, the more you're on the road, the greater your chances of getting into an accident--which translates to an increased risk for the insurer.
The good news: Okay, there's not much you can do about this one. Living closer to work should save you a couple bucks, but if that's not an option (and sometimes it isn't), make up for any rate increase by asking about additional discounts, cash incentives and rebates. Chances are good that your insurer won't bump your premium up much for this anyway.
An Educated Consumer is a Powerful Consumer!
While the final decision about car insurance rates ultimately lies in the hands of the insurer, using the tips above can help tilt the scales in favor of the consumer.
So get your cheapest car insurance premiums by educating yourself on the factors mentioned above. And remember, different insurers may use these factors in varying fashions--so shop around and obtain multiple quotes to find the cheap auto insurance you need!

Insurance for Your Business

The importance of insurance cannot be over-emphasized and neither can the danger of paying for insurance you don't need. It is strongly recommended you solicit the advice of an in-dependent business insurance agent. Don't forget to SHOP! Talk to three or four independent agents and compare notes and prices. An insurance agent will lay out a vast array of insurance coverage much of which you simply may not need. Your situation will be unique and you must consider each insurance element carefully to ensure comprehensive coverage.
Whatever your final insurance program looks like, you should review it at least every six months. Your business can change rapidly, especially in the first few years and insurance needs change with it. Keep your program up to date by calling in your agent and reviewing your coverage. Make changes where necessary.
LIABILITY INSURANCE
This is probably the most important element of your insurance program. Liability insurance provides protection from potential
losses resulting from injury or damage to others or their property. Just recall some of the big cash awards you have read about that have resulted from lawsuits concerning liability of one kind or another and you will understand the importance of this insurance. Your insurance agent can describe the various types of liability insurance coverage that are available. If you will end up with a comprehensive general policy, make certain that the general policy does not include items you don't need. Pay for only the insurance you need. For example, your business may not need product liability insurance.
Do not confuse business liability coverage with your personal liability coverage, both of which you need. Your personal coverage will not cover a business-generated liability. Check to be certain.
Compare the costs of different levels of coverage. In some cases a $2 million policy costs only slightly more than a $1 million policy. This economy of scale is true with most forms of insurance coverage. That is, after a certain value, additional insurance becomes very economical.
KEY PERSON INSURANCE
This type of insurance is particularly important for the sole proprietorship or partnership where the loss of one person through illness, accident, or death may render the business inoperative or severely limit its operations. This insurance, although not inexpensive, can provide protection for this situation. Key person insurance might also be necessary for others involved in your business.
SGC was a small firm run by three partners, a software programmer, marketer, and a general manager. Their product was a complex computer program used by aerospace firms. Al, the programmer, was involved in a severe automobile accident, became totally disabled, and SGC lost their programming capability. The problem was that the computer program written by Al was essentially the company's sole product. Modifications to accommodate the customer became impossible and the time to bring another programmer up to speed was excessive. SGC lost considerable business as a result of this situation. These losses could have been offset by key person insurance.
DISABILITY INSURANCE
You, as a business owner, should be covered by disability insurance whether or not you decide on key person insurance. This insurance, along with business-interruption insurance, described below, will help ensure your business will continue to operate in the unfortunate situation where you are unable to work. Your disability insurance policy needs to provide satisfactory coverage. Particular attention should be paid to the definition of "disability," delay time until payments start, when coverage terminates, and adjustments for inflation.
FIRE INSURANCE
Fire insurance, like all insurance is complicated and you should understand what IS and IS NOT covered. For example, a typical fire insurance policy covers the loss of contents but does not cover your losses from the fact that you may be out of business for 2-months while your facility is rebuilt. Fire insurance is mandatory whether you're working out of a home office or you have a separate facility. You should discuss a comprehensive policy with your agent. Take the time to understand the details. For example, will the contents be insured for their replacement value or for actual value at the time of loss?
Consider a co-insurance clause that will reduce the policy cost considerably. This means that the insurance carrier will require you to carry insurance equal to some percentage of the value of your property. (Usually around 85%.) With this type of clause it is very important that you review coverage frequently so you always meet the minimum percentage required. If this minimum is not met, a loss will not be paid no matter what its value.
If you are working out of your home, your existing homeowner's policy may not cover business property. If this is the case, have your insurance agent to add a home-office rider to your policy.
AUTOMOBILE INSURANCE
You probably already have automobile insurance but it might not include business use of your vehicle. Make sure that it does.
WORKER'S COMPENSATION INSURANCE
If you make the decision to hire employees, you will be required, in most states, to cover them under worker's compensation. The cost of this insurance varies widely and depends on the kind of work being performed and your accident history. It is important that you properly classify your employees to secure the lowest insurance rates. Work closely with your insurance agent.
BUSINESS INTERRUPTION INSURANCE
This protects against loss of revenue as the result of property damage. This insurance would be used, for instance, if you could not operate your business during the time repairs were being made as a result of a fire or in the event of the loss of a key supplier. The coverage can pay for salaries, taxes, and lost profits.
CREDIT INSURANCE
This will pay for unusual losses as the result of nonpayment of accounts receivables above a certain threshold. As with all policies, you must thoroughly understand the details so discuss it with your insurance agent. One of the largest providers of this coverage is American Credit Indemnity, Baltimore, MD. (800) 879 1224.
BURGLARY/ROBBERY/THEFT INSURANCE
Comprehensive policies are available that protect against loss from these perils, including by your own employees. Make certain you understand what is excluded from coverage.
RENT INSURANCE
This policy covers the cost of rent for other facilities in the event your property becomes damaged to the extent that operations cannot continue in your normal location.
DISABILITY INSURANCE
This insurance will pay you an amount each month slightly less than your current salary in the event you become disabled and are unable to work. Cost for this coverage varies considerably depending on your profession, salary level, how quickly benefits start, and when they end. Benefits paid are tax-free only if you, not your company, pay the premiums.
This list could be continued since it is possible to purchase insurance for just about any peril you can imagine ... if you can pay the premium! When considering your insurance coverage, use the following checklist:
INSURANCE COVERAGE CHECKLIST:
o Can you afford the loss?
o What coverage is required by Federal, state, or local law?
o What SPECIFIC items are covered by the policy?
o Are items to be insured for their replacement cost or original value?
o What SPECIFIC items are EXCLUDED by the policy?
o If there is a co-insurance clause, do you have adequate coverage?
o Have you chosen deductibles wisely in order to minimize costs?
o Do any of the policies you are considering duplicate or overlap one another?
o Do you need any insurance based on location, e.g., flood, earthquake?
Use the following checklist to review your insurance plans:
INSURANCE PLAN CHECKLIST:
o Employ an independent insurance agent rather than going to individual insurance companies. Ensure the agent shops for your insurance.
o Talk to and get quotations from at least THREE agents and pick the best one for you.
o Use money saving comprehensive policies, if possible.
o Perform periodic (every 6-months) reviews of your insurance program.
o Have business assets professionally appraised to determine coverage needs.
o Ensure existing personal insurance coverage includes business-related activities and add riders as necessary or obtain additional coverage.

Group Health Insurance Plan For Your Business

What is the cover offered on group health Insurance policy?
Group health Insurance plans can be defined as an insurance coverage through an employer or other entity that covers all individuals in the group.
Group health insurance is something that everyone wishes they had since groups get better rates than individuals when it comes to health care (insurance in general). Many people who are self employed or want the best rates incorporate to give the insurance company the look of a larger corporation and they try to obtain cheaper health insurance rates. Group insurance is discounted when compared to individual health insurance so getting on a group plan is a plus. Keep in mind that group insurance is just part of the equation. Deductibles, co pays, and other variables go into the rate you get, so individual health insurance or family health insurance may be just as affordable in the long run.
A group health Insurance policy is an Insurance cover which is arranged by an employer for his employees. This type of Insurance cover enables the employer to pay only part of the premium for the Insurance policy covering his employees.
Essentially Group health Insurance plan is an Insurance policy applied for by the employer to cover his employee's medical expenses. Formerly an employer was expected to 100% employee benefits but now an employer only has to contribute just a part of the employee's insurance premium.
With the new law passed by Congress, the employee's net expenses for the group health insurance policy have been greatly reduced.
How can businesses benefit from this policy?
It is a well known truth that group health insurance plans are greatly valued by employees, most employees even place group health insurance policy second after monetary compensation. Organizations who have in place such policies have confirmed that group health insurance policies have enabled them employ and retain the best hands in their business. Employers are not left out from enjoying the benefits of group health insurance plans; most employers have not yet purchased health for themselves. They stand to get a better and cheaper insurance plan if they purchase Insurance via a company than if they were to purchase an individual health insurance policy.
A group medical insurance policy offers an additional special bonanza in the form of tax incentives for the employer and employees. For instance, as an employer you stand in a position to reduce your payroll taxes, but providing your employees with group health Insurance as part of a whole payment compensation package, thereby deducting 100% of the premium that you would have had to pay on a qualifying group health insurance plan. Also your employees would be able to pay their part of their monthly premium using pre-tax funds.
Although an employer is required to pay some percentage of an employee's individual premium, which ranges from 25% to 50%, depending on the state's laws and the insurance company. Also, if the employee wants to extend coverage to a spouse or dependent, the employer may choose to pay a percentage of that cost, but is not required to do so. Without ant question group health insurance is the most affordable health insurance available today, so if as an employee you're given that option, you should really consider it, Often, spouses and children can be included under such a plan.
What are the factors you need to watch for a good group health insurance policy?
Employers may choose to offer free-service insurance plans, preferred service supplier or a health maintenance plan. Available on the Internet are group health insurance instant quotes, most health insurance organizations also provide group health insurance quotes via their network of agents in addition of making it available for visitors to their offices.
One of the factors an organization need to watch out for in a group health insurance policy is the bottom line. It is no more or less than simply this: group health insurance is less expensive than a couple of individual policies. This is the truth. But, it still is not cheap, in fact no health care program in America is.
Employers may use the guidelines below to select a health insurance plan that meets your needs:

• Study the websites and brochures of the health insurance companies you have short listed to engage.

• Make a comparison of their services, costs and what they pay.

• Find out if there are services or illnesses that are excluded from the policy.

• Take notes of the starting and ending dates of the insurance policy.

• Check to confirm when the cover starts as some health insurance companies only cover you from your third payment.

• Stay away from policies that limit your choice as to whether you can choose a period to stay with them.

• And finally stay away from any group health insurance policy that only covers limited diseases.

Employers are encouraged to choose Group health insurance plans that suits their needs, whether it is the preferred service supplier, traditional insurance cover or the health maintenance plan.

The Kidnap and Ransom Insurance Paradox

Generally, kidnap and ransom insurance policies are for workers and companies operating in high-risk countries. It may be provided as an inclusion of a company's insurance package or given as an independent policy by a kidnap and ransom insurance provider. The catch is that usually the insured employee should not know that they are covered by the policy, or else, the policy becomes invalid.
Here's the catch:
Kidnappers usually insist that authorities should not be informed. They usually notify the family of the victim. Then they issue demands. The family, on the other hand, shall be placed under the dilemma of informing the authorities or giving the demands of the captors. The family or the company of the victim may notify the insurance company, but the problem is the insurance provider may deny that the victim is covered by the insurance. In this case, the life of the victim may be put in danger.
The solution is to opt for an insurance policy that allows you to disclose its existence during dire circumstances. An ideal kidnapping insurance policy is one that requires you to notify the insurance company and the authorities about the kidnapping but only when it is possible and safe to do so. Choosing the right insurance in this case is very important. Going for favorable insurance in the first place frees you from possible serious repercussions.
Another conflict:
The stipulations of the insurance may go against the policy of the US government, which is to not negotiate with terrorists. The American government along with the government of many nations has issued travel advisories for high-risk countries. A kidnap insurance policy may raise deductibles for people working in high-risk countries. Supposing your company operates in a high-risk country and your worker is kidnapped there, the insurance firm may restrict the coverage or, worse, render it void.
What if an employee of your company has something to do with the kidnapping?
The insurance company may cancel the policy in the event that a representative of your company is proven to conspire in the kidnapping. The conspiracy on the part of your employee shall complicate things here. Since this is a possibility, it is important that the policy delineates what happens to the coverage if evidence of connivance is discovered.
Benefits
Setting aside these drawbacks, kidnapping insurance policy can be beneficial in various ways. It entitles the policyholder to reimbursement of all costs incurred as a result of the kidnapping. It also entitles the holder to crisis management and injury compensation. Corporations that hold kidnapping policy may receive reimbursement for the cost incurred of hiring replacement of kidnapped employees. Policyholders may also receive refund of the money given as a reward to informants.
As mentioned earlier, kidnap and ransom insurance is tricky because an employee should not know he is covered by it. Enforcing the policy may also be troublesome during dire cases. However, these conditions are the price of receiving benefits in case you are kidnapped. This form of insurance is highly recommended for those who work in risky areas. However, employers should be careful when looking for an insurance product. Its provisions should be carefully studied.

How that you would prioritize a great motor Insurance?

Furthermore definitely is insurance? Also becomes insurance?

Insurance coverage comprise yourselves and even your new tourists the traffic accidents. Getting rid of should be your job to conclude level created by insurance policy coverage you really order.

Once the harm for any liquidity really are invisible around the guy? Becomes that do all of visitors usually are dressed and/or family? Even greater works once the simple princess stayed taking?

Even greater problems would your good motor vehicle policies in regards to insurance? This situation post help you on to would like considering totally different corporations.

Sort of insurance

Responsibility health insurance coverage or perhaps even obligation insurance policy plan.

Here is ordinarily a bit low type of policies advertised caused by a new insurance. It was some mere insurance policy policy in case you are in an any sort of accident and as well as are going to be your trusty blame insurance injuries with regard to the various other reception pays.

My rrnsurance policy coverage found via insurance is frequently discover early. Here is the greatest sum of insurance pays when it comes to a strong car accidents

Such as, your representative likely will acknowledge one focuses on involving dollar 10 000 per user (injuries) and so / or else dollar 40,000 policy intended for actual loss and additionally / or maybe dollar 10,000 when considering assets hurt per catastrophes and collisions

Your family would consult with ones insurance, also that plastics and additionally which often is some restrict.

You'll be able to locate such a affordable quality through one selected insurance, which will your amazing scheme is going to be tiny in additio to the unrealistic extended.

Crash that entire protection plan, entire insurance packages combined with total rrnsurance policies

One car or a truck document can also include an complete insurance protection, mainly because the brand name states, you're widely dressed.

Merely, meaning which for anybody who is taking care of both the crash of insurance when it comes to sort out to the auto or truck tend to be hired.

Getting rid of will not be and so uncomplicated in order to utilize one insurance coverage would be hired in most cases was the last term on this advice altitude, too even if that forms costly right now there, you could make a bit corporate equity of van, well then.

You can care your actual n automobile is generally good worth dollar 1,000.00, on the other hand our certain audience dollar value there is dollar 500.00. Here is fail to a new exotic decision. Indeed, once the remedy inside your car and truck more than dollar 500.00 comes in my insurance will certainly single hire an information price tag to the car / truck.

It is important to double check that that the insurance regarding claim dominance during the corporate true worth to the car and truck is generally bodies use of AA spend one audience appeal.

Like related debt health insurance coverage, car insurance coverage is definitely a bit percentage settled, and with common, bloated rrnsurance policy drive better rules.

RV

One cellphone your home mandates thises actually own health insurance coverage, informal path insurance policies isn't really  like insurance.
 Yourself would fail to believe that basically because your current used suv forms secured around the tip is going to be once the informal family car.

Any other samples of insurance

Treatment (MedPay), secureness versus pain Picture (PIP) policy cover and also not any error

This in turn health care insurance discusses that you and as well your main passenegers in your car nursing jobs sudden low intake.

Scheme by means of n't any blame world of retail some insurance, in spite of whose liable to spend. The item has your confidence which, extremely, family and so followers comes in covert.

PIP is always the least condition in certain destinations or else nations, inquire about your favorite insurance group, furthermore serve as needs.

Uninsured Driver Underinsured / "Describing

That policy (described as the least duty in certain claims), would spin buyers once the driver liable is probably uninsured or maybe a underinsured.

Request your personal insurance guarantee if you are this sort of problem for free. Must by natural means make both the insurance won'ts charge other advantages.

Letting payment, pulling yet work

These kinds of "accessories" necessarily equipped with thorough insurance comes just for insurance services normally purchased for the sake of specialist.

And thus once the motorcar definitely is impaired, your insurance pays in terms of hire can cost, (periods just for weeks).

A bit insurance can also release to spend when considering pulling all your vehicles (fail to usual taken into account).

While usual, you really would talk to ones sporty number insurance, that is part of both the will take care of.

Statutory rules.

On the whole affirms and as a result majority of islands will require education connected with want, extensive insurance thorough insurance independent.

Most often that is your choice, your persons, ensure the actual sporty number insurance coverage coverage serves people the specified low. Generally speaking, a bit seller (both the powerplant insurance cover plan) is not mandatory with you around the rules.

And surely, search for some sort of insurance (would?), Your favorite to help you suggest around the top-ranking bundle to suit your needs.

To know otherwise of insurance [http://www.insurance-owl.com/various other/used truck_co.php] using each of our wall.

Insurance policies coverage Owl [http://www.insurance-owl.com] are perhaps straightforward coupled with thoroughly clean detail in regards to health insurance coverage. Your life on insurance thinks meant for wrecks, for example insurance, getaway not to mention one's life .