Rough rules of thumb suggest an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account in determining a more precise estimate of the amount of life insurance needed.
Both of them are related to life insurance however if any person chooses the term policy the coverage is being available only for the specific period of time. In case, if a person dies after such a period of time no pay out will be given to the dependents.
Get the amount and type of insurance that you need. One of the most important things to do is to determine the amount of personal property insurance and personal liability coverage that is needed. It’s also important to understand whether your policy will pay a claim taking into account the “actual cash value” or “replacement cost”. Under actual cash value, a policy owner is entitled to receive the depreciated value of damaged property. But if you’re covered to replacement cost, a policy owner is reimbursed an amount necessary to replace a damaged article with one of similar type of quality at current prices.
If your property lies in a flood plain as determined by US Government Flood Maps, it is a good idea to ask about a flood quote. Damage caused by a flood is not covered under standard homeowners insurance policies.
The rationale behind the law was to give more people access to healthcare insurance and to add more benefits. Many millions of people should benefit from the law; but there are of course costs to the act that will be felt by insurance companies, by some of those being insured, and by taxpayers alike. One of the primary benefits is that everyone, regardless of their current health condition, is guaranteed access to health insurance.
This question is a difficult one to answer because there are so many variables at play. It may be that you will have to pay a higher monthly premium, but that the coverage you receive might save you money in the long run. Or it may be that the subsidies that you are eligible to receive might reduce your premium while providing good coverage. Your current financial situation and the policy selected will both affect the total cost to you.
Starting your own business means taking on some degree of risk. As a business owner, you already have the passion and drive to take on new challenges, but you’ll also need to protect the value of the assets you purchase for your company. Insurance can help you recover when things go wrong. From property losses related to items such as fire or theft, to liability issues should someone sue – or threaten to. With the proper policies in place, you’ll gain peace of mind and feel more comfortable in your new role as an entrepreneur.
Businesses often need to carry more than one type of insurance, and your business’ insurance needs may be highly individualized. A knowledgeable agent can help you find the right solutions. For some states, carrying insurance is a requirement. Requirements may also vary by the type of business you own and the number of employees; however, worker’s compensation is required by law in most states, and highly recommended if not.
When you loan your car to a friend or an associate, they will be covered under your automobile insurance policy.
Comprehensive provides coverage for direct physical damage losses you could incur to your car from something like a hailstorm. In addition, it also provides coverage in the event of the theft of your vehicle.
Collision is the loss you incur when your automobile collides with another vehicle or object like a telephone pole.
You will need this insurance especially if you do not have any other form of life insurance. Do not forget that funeral insurance is an affordable alternative and it is an attractive choice for those who cannot afford to buy life insurance. It is also a great option for those who have been turned down for a regular life insurance policy.
The moment a burial insurance policy holder passes away; their beneficiaries may use the funds in any way they see fit. The amount they will receive is supposed to be used to pay for funeral related products and services. However, it can also be used to settle loans, debts, or any other bill or expense.
An annuity, in essence, is insurance against “living too long.” In contrast, traditional life insurance guards against “dying too soon.” Briefly, here is how annuities function: An investor hands over funds to an insurance company. The insurer invests the funds. At the end of the annuity’s term, the insurer pays the investor his or her investment plus the earnings. The amount paid at maturity may be a lump sum or an annuity, which is a set of periodic payments that are guaranteed as to amount and payment period.
Earnings that occur during the term of the annuity are tax-deferred and an investor is not taxed until the amounts are paid out. Because of the tax deferral, your funds have the chance to grow more quickly than they would in a taxable investment.
While traditional life insurance guards against “dying too soon,” an annuity, in essence, can be used as insurance against “living too long.” With an annuity, you will receive in return a series of periodic payments that are guaranteed as to amount and payment period. Thus, if you choose to take the annuity payments over your lifetime (there are many other options), you will have a guaranteed source of “income” until your death.
If you “die too soon” (that is, you don’t outlive your life expectancy), you will get back from the insurer far less than you paid in. On the other hand, if you “live too long” and outlive your life expectancy you may get back far more than the cost of your annuity–along with the resultant earnings. By comparison, if you put your funds into a traditional investment, you may run out of funds before your death.