Your Money, Your Life Insurance

Your Money, Your Life Insurance

It’s your money, so why shouldn’t you have the right to spend it exactly how you want? Look below for the profile that describes you best to find out what kind of life insurance you’ll need and how to go about purchasing it.

Extra Cautious 

If you like “looking before leaping”, you’ll need to brace yourself for plenty of research before buying a policy. This will mean dedicated hours spent in nightly/”lunch hour” research to read up basic facts about life insurance, from types and prices to rating classes and hiccups you may face while applying. Look up article bases that are well informed and detail experts’ opinions. No matter what some may say, life insurance is a very personal decision and will differ greatly on a case-by-case basis. 

Absolutely No Room in My Budget 

We understand in our flailing economy that it gets harder to keep food on the table, especially if you are the sole breadwinner in a large family or have large outstanding debts. Unfortunately, life insurance is hedging against a very unfair bet, a bet that you won’t die anytime soon. Death is as inevitable as it is highly improbable, and there’s no way of telling when it will come in handy. If you have no dependents, no debts that will need to be cleared even after death and a savings cache in place for funeral costs, it’s possible to not need any life insurance cover at all. But if you had even one of these factors working against you, life insurance can be a life saver, especially for dependents who will have to carry onward without you. Choose a simple, low-cost term life insurance policy from a reasonably stable company and shop for good deals online. 

Bargain Hunter 

If you’re looking for a cheap policy type, choose term life and compare term life insurance quotes before buying. Even if you chose to go with whole life insurance and are looking for a bargain, make sure to get as many quotes as you can. You’ll be surprised how widely life insurance rate can vary from carrier to carrier. It will help to know what condition your health is in before starting to bargain, because people with pre-existing conditions or unhealthy habits and body types are usually in no position to bargain; they should consider themselves lucky to find any life insurance cover in the first place, especially if their underwriting rate class is significantly low. Look for free or cheap riders that can be added to your policy to prepare for contingencies. 

Clever Spender 

You’ll need a combination of bargain-hunting techniques and research in order to find the best policy. Sometimes, it may be possible to start out with a smaller policy at higher rates, especially if your health is not in the best condition, and then buy a larger policy for an extension of term life coverage. A clever spender will also know the status of his financial goals in order to choose wisely between permanent or term life insurance. For some people that need permanent protection, permanent policies are essential, safer investments and can end up saving you money as you grow older. However, many people prefer buying term life and investing the difference in money market funds. 

Do-It-Myself 

Hands-on, DIY even with your finances? No problem! You can choose to buy a policy directly from a company after researching prices and quotes yourself. However, you should know that getting quotes on life insurance is not as easy to do yourself as using a DIY store to make your own lawn chair. This is why many advocate finding the right agent/brokerage agency to do your shopping for you. Choose wise, sympathetic agents who will understand what you need and not push their agendas (and fat commissions) on to you. You will need to seriously invest the difference between term life and permanent life into a fund that will allow you a sizable nest egg for retirement savings. 

Safe than Sorry 

If you’re the kind of spender that wants the best coverage even if it means spending a little more on premiums, choose highly stable and reputed life insurance companies that top the list on rating agencies AM Best or S&P. You may find the need for permanent life insurance protection to ensure the comfort of your family long past your earning stage. Riders can come in handy when tailoring a life insurance policy to custom fit your profile, and can provide remarkable benefits ranging from Waiver of Premium upon long term disabilities, Accelerated Death Benefit for serious illnesses that can help pay for medical costs and Return of Premium for term life policies that will return all paid premiums at the end of the term. 

You Can’t Put a Price Tag on Life 

You know what you need and don’t care about what it would take to get it. You may find that using the services of a fee-only certified financial planner to help you find the best policy. Since you can afford costly life insurance premiums, choose wisely and buy from the highest rated companies. You may even want to use your policy as a tax-shelter for inheritance purposes; this is best discussed with your lawyer. A costly policy doesn’t always mean permanent life insurance, so remember to do your research and find the best type that will suit you.

You see, not everything comes in a one-size-fits-all package. For a full understanding of how to buy life insurance protection, do a life insurance needs analysis online and coalesce this with your family/individual financial goals.

How to save money using Term life insurance

How to save money using Term life insurance  

Saving money is as important as earning it. It's a huge step for financial success and fulfillment of your long term financial goals. Investment is one of the best ways to save money for the present as well as for future financial needs. Buying a life insurance is the biggest hit when it comes to conventional investment plans for young, earning individuals. Amongst various types of life insurance, term life insurance is the most popular. The term insurance is chosen by many individuals as it is inexpensive and easy to understand.

What is term insurance?

Before finding out ways to save money using a term life insurance policy, you need to learn the basics of term insurance. As the name suggests, it is a type of insurance that provides life coverage for a term- predetermined time. The sum assured for term life insurance is handed over to your beneficiaries upon your demise. You are required to pay timely premiums that are predetermined on the basis of the total sum assured. According to the experts, a term life insurance plan is a must for those with dependent members in their family.

When it comes to buying a term insurance, you need to consider a few things like the amount of sum assured for the dependents, interest rate, inflation rate, the kind of life coverage that your term plan provides, your pre-existing health conditions and the elimination period provided by the insurer, that the beneficiaries need to wait for before receiving the money after your demise. There are two basic coverage type of a term insurance, namely comprehensive term plan and facility care. Experts suggest that comprehensive increasing term life insurance reaps more benefits.

The best thing about term insurance policies is that they provide dual benefits of life coverage and money saving. Along with assurance of the future of your loved ones after your demise, you can alternatively save a significant amount of money. Experts also suggest that one should opt for online term insurance plans that are inexpensive and even easier to obtain than their offline versions.How to save money using a term plan

Here are the key features and advantages of term life plans:

• Term life plans are extremely affordable, flexible and ideal for those who are looking for short-term financial planning.

• With term life you get to pay affordable/low premiums for high coverage. You can choose terms like 10, 15 and 20 years.

• You can plan for the future of your loved ones like kids' education, spouse's health in old age and mortgage charges by adjusting the time of maturity of your insurance policy. • Rather than investing a larger share of your investments in whole life plans, you can save a smaller amount on life insurance and invest the remaining in other beneficial investment schemes. Make strategic plans for the maturity of your various investments, which will keep the money flowing.

Life Insurance - Pros and Cons of Whole Life & Term Life Coverage

Life Insurance - Pros and Cons of Whole Life & Term Life Coverage 

Do I need life insurance?" "Is whole life insurance a good investment?" "Is term life insurance risky?" Questions like these are posted in online communities on a daily basis. The answers vary widely, with the term life and whole life camps polarized. The tone of the debate is surprisingly strident. After all, the topic is insurance—not a something expected to inspire strong opinions, let alone strong language. But words like "rip-off," "scam," and "waste of money" fly back and forth, sometimes accompanied by rows of exclamation marks or worse. What is behind the brouhaha? And which camp—if either—is right?

The two sides do not even agree about whether a person needs life insurance. Whole lifers say, yes. You do not want the death of a family member to disrupt your family's finances or jeopardize its future. It is hard enough to adjust to the loss of a loved one. Adding financial difficulties exacerbates the problem. With the skyrocketing costs of funerals, even children and seniors should have at least a small life insurance policy. 

Not so fast, say the term lifers. The only reason to have life insurance is to replace the lost income of a family member who dies, and then only when the spouse or family is dependent on that income. If you are single with no dependents and no debts that might be transferred to your family in the event you die, then you do not need life insurance. If you are married and your spouse works, you probably do not need life insurance, either, assuming your spouse makes enough to support himself or herself. 

The time for life insurance, term lifers say, is when the policyholder's income is vital to the financial security of the family. If, for example, you have purchased a home together and your spouse could not pay the mortgage and other bills by himself or herself, then life insurance is in order. If you have children, you will want to have enough life insurance to allow your family to maintain its lifestyle after you are gone. This includes not only meeting day-to-day expenses, but also being able to follow through with plans for higher education. Insurance professionals recommend buying a policy with a face value 5-10 times the breadwinner's annual salary to help family meet expenses for a period of years.

Whole lifers see problems with the term-life scenario. The view it as overly optimistic, even naïve. Many things can happen during the 20- to 30-year period covered by term life insurance that could extend the need for coverage beyond the policy's end date. For example, children may be born mentally retarded, with severe autism, or with another serious condition that could prevent them from becoming independent when they reach adulthood. Children also can develop a disease or suffer an accident that disables them. A spouse, too, can become disabled. In these situations, the family will remain dependent on the breadwinner's income long after the term life policy expires. 

Term life insurance advocates point out that in such cases, the breadwinner can renew the term life policy, or take out a new one. Now it's the whole lifers' turn to say, "Not so fast." By the time the second term life policy is needed, the breadwinner will likely be in his or her fifties or even sixties. Due to the age of the insured, the cost of a second term life policy will be much higher than the cost of the first was. With the added years come added risks of certain diseases. If the breadwinner is obese, has developed high blood pressure, a heart condition, diabetes, or another disease, the cost of the term life policy will skyrocket. If the individual has developed cancer or AIDS, he or she may not be insurable at all. In such situations, the cost savings realized on the first term life policy could be wiped out by the high cost of a second term life policy.

By contrast, the premiums of a whole life policy are set for life and do not go up with age or medical condition. A whole life policy cannot be canceled due to medical conditions, either. The policy remains in force until death, as long as the premiums are paid. 

"Until death" is another advantage of whole life, its advocates maintain. Whole life gets its name from the fact that it insures the policyholder life until death. As a result, whole life insurance is guaranteed to pay a death benefit—the amount the policy pays upon the death of the insured. The death benefit can be increased—at certain points at no additional cost—as the policyholder ages. A small policy designed to cover the funeral costs of a child can be increased to provide adequate coverage during an adult's peak earning years. Whatever the death benefit or "face value" of the whole life policy, the insurance company guarantees to pay it. As a result, the policyholder or his or her beneficiaries always receive some, all, or more than the premiums paid into the policy.

This is not the case with a term life policy, whole lifers point out. The term life insurance policyholder can pay premiums for 30 years, but if he or she outlives the policy—even by a day—then all of the premium money is gone. The only thing the policyholder will have received is 30 years worth of peace of mind.

Whole life insurance, by contrast, accumulates a value that the policyholder can access during his or her lifetime. This value is known as the cash value or the surrender value. The whole life policy holder can use the cash value as collateral for a loan, or even borrow some of it during his or her lifetime. The policyholder must pay this amount back. If he or she dies before it is paid back, then the unpaid amount is deducted from the death benefit. If the policyholder decides to cancel the policy, the insurance company will pay him or her the cash value, which is then known as the surrender value. Whole life, its proponents maintain, is not only insurance against death. It is an investment for life.

This is where the debate turns nasty. Term lifers often ridicule the investment features of whole life. Because whole life always pays a death benefit, it costs 5-10 times more than term life does. Term lifers argue that a person is much better off getting a term policy for the same face value that they would get a whole life policy, then saving and investing the difference in premiums. Almost any investment will return more than a whole life policy will, term lifer proponents maintain. Over 20 or 30 years, the difference can be vast. Buy insurance to insure, the term lifers say, and use the savings to invest.

Whole lifers respond that the return on a whole life policy is guaranteed at the outset, something than cannot be said for other investments. To earn greater rewards, the term life policyholder must take greater risks in the open market. Many investments will outperform whole life insurance, but not all will. Some investments lose money, as shareholders in World Com, Enron, Peregrine Systems, and many other companies can attest. 

Even if the investment will pay out, it is not certain that the term life policyholder will actually make it. To do so, he or she must calculate the amount saved over whole life insurance; save that money every month, quarter, or year; research possible investments; and contribute to that investment regularly for 20 or 30 years. This makes sense for disciplined and savvy investors, but many others will find the endeavor daunting and time consuming. They may not start it, and if they do, they may not continue it. Whole life takes care of insurance, savings, and investment in one easy payment. Even if the returns on whole life are not great, saving something is better than saving nothing, and nothing is exactly how much many term life policyholders will end up saving.

Both whole life and term life have pros and cons. People who are financially savvy and disciplined will gain from the term life scenario. Those who need a convenient and simple mechanism for insurance and savings will benefit from whole life insurance. Deciding which is best for you requires an honest appraisal of your goals, your lifestyle, and your investing skills.

Top 10 Life Insurance Myths

Life insurance is not a simple product. Even term life policies have many elements that must be considered carefully in order to arrive at the proper type and amount of coverage. But the technical aspects of life insurance are far less difficult for most people to deal with than trying to get a handle on how much coverage they need and why. This article will briefly examine the top 10 misconceptions surrounding life insurance and the realities that they distort. 

Myth #1: I'm Single and Don't Have Dependents, so I Don't Need Coverage

Even single persons need at least enough life insurance to cover the costs of personal debts, medical and funeral bills. If you are uninsured, you may leave a legacy of unpaid expenses for your family or executor to deal with. Plus, this can be a good way for low-income singles to leave a legacy to a favorite charity or other cause. 

Myth #2: My Life Insurance Coverage Needs Only Be Twice My Annual Salary

The amount of life insurance each person needs depends on each person's specific situation. There are many factors to consider. In addition to medical and funeral bills, you may need to pay off debts such as your mortgage and provide for your family for several years. A cash flow analysis is usually necessary in order to determine the true amount of insurance that must be purchased - the days of computing life coverage based only on one's income-earning ability are long gone.

Myth #3: My Term Life Insurance Coverage at Work Is Sufficient 

Maybe, maybe not. For a single person of modest means, employer-paid or provided term coverage may actually be enough. But if you have a spouse or other dependents, or know that you will need coverage upon your death to pay estate taxes, then additional coverage may be necessary if the term policy does not meet the needs of the policyholder. 

Myth #4: The Cost of My Premiums Will Be Deductible

Afraid not, at least in most cases. The cost of personal life insurance is never deductible unless the policyholder is self-employed and the coverage is used as asset protection for the business owner. Then the premiums are deductible on the Schedule C of the Form 1040. 

Myth #5: I Absolutely MUST Have Life Insurance at Any Cost

In many cases, this is probably true. However, people with sizable assets and no debt or dependents may be better off self-insuring. If you have medical and funeral costs covered, then life insurance coverage may be optional. 

Myth #6: I Should ALWAYS Buy Term and Invest the Difference

Not necessarily. There are distinct differences between term and permanent life insurance, and the cost of term life coverage can become prohibitively high in later years. Therefore, those who know for certain that they must be covered at death should consider permanent coverage. The total premium outlay for a more expensive permanent policy may be less than the ongoing premiums that could last for years longer with a less expensive term policy. 

There is also the risk of non-insurability to consider, which could be disastrous for those who may have estate tax issues and need life insurance to pay them. But this risk can be avoided with permanent coverage, which becomes paid up after a certain amount of premium has been paid and then remains in force until death. 

Myth #7: Variable Universal Life Policies Are Always Superior to Straight Universal Life Policies Over the Long Run 

Many universal policies pay competitive interest rates, and variable universal life (VUL) policies contain several layers of fees relating to both the insurance and securities elements present in the policy. Therefore, if the variable subaccounts within the policy do not perform well, then the variable policyholder may well see a lower cash value than someone with a straight universal life policy. 

Poor market performance can even generate substantial cash calls inside variable policies that require additional premiums to be paid in order to keep the policy in force. 

Myth #8: Only Breadwinners Need Life Insurance Coverage

Nonsense. The cost of replacing the services formerly provided by a deceased homemaker can be higher than you think, and insuring against the loss of a homemaker may make more sense than one might think, especially when it comes to cleaning and daycare costs. 

Myth #9: I Should Always Purchase the Return-of-Premium (ROP) Rider on Any Term Policy

There are usually different levels of ROP riders available for policies that offer this feature. Many financial planners will tell you that this rider is not cost-effective and should be avoided. Whether you include this rider will depend on your risk tolerance and other possible investment objectives. 

A cash flow analysis will reveal whether you could come out ahead by investing the additional amount of the rider elsewhere versus including it in the policy. 

Myth #10: I'm Better off Investing My Money Than Buying Life Insurance of Any Kind

Hogwash. Until you reach the breakeven point of asset accumulation, you need life coverage of some sort (barring the exception discussed in Myth No.5.) Once you amass $1 million of liquid assets, you can consider whether to discontinue (or at least reduce) your million-dollar policy. But you take a big chance when you depend solely on your investments in the early years of your life, especially if you have dependents. If you die without coverage for them, there may be no other means of provision after the depletion of your current assets. 

The Bottom Line

These are just some of the more prevalent misunderstandings concerning life insurance that the public faces today. Therefore, there are many life insurance questions you should ask yourself. The key concept to understand is that you shouldn't leave life insurance out of your budget unless you have enough assets to cover expenses after you're gone. For more information, consult your life insurance agent or financial advisor.

Importance Of Travel Insurance

Importance Of Travel Insurance

Travel is one of the life’s greatest joys but even the most carefully planned trip can be complicated by unforeseen events. Whether it is lost luggage, canceled flights, or medical emergency, an unexpected mishap can turn a relaxing vacation into a taxing experience. But by opting for a good holiday travel insurance policy, you can save your money, safeguard your journey and make your vacation a truly memorable one.

There are many things to consider when planning for a vacation – where to go, what to pack and what do once you reach your destination. No matter how well you plan, there are some things that go out of your control. This is where travel insurance comes to your aid by compensating you for the unforeseen emergencies while traveling. 

What does travel insurance cover?

Trip Cancellation/Trip Interruption: Reimburse travelers who are unable to take their trip due to illness or death, weather, airline strikes, terrorism, bankruptcy, becoming unemployed or home being rendered uninhabitable due to fire, flood etc.

Medical/Health: Reimburses medical or emergency dental costs. All most all insurance plans work by reimbursing the traveler after he has paid locally for the treatment. Medical evacuation insurance covers the cost of an air ambulance, attending physician and nurse if you are badly injured or become so ill that you are unable to come back home.

Accidental Death:

Air Fight Accident: Covers death during an air flight only. Usually covers the highest amount of coverage due to lower risk.

Common Carrier: Covers death while traveling in public transport such as ferry, train, bus or taxi.

Accidental Death: Covers death at any time on your trip. Usually provides the lowest amount of coverage due to higher risk.

Travel Delay: Reimburses travelers for hotel, food or clothing expenses in the event of a flight delay. 

Baggage Loss: The plan includes reimbursement to travelers for their, lost, stolen or damaged personal items. This coverage is generally for the duration of the trip and not confined to baggage damaged or lost by the airline. 

Rental Car Damage: A specific amount is reimbursed to the traveler for damage or loss of a rental vehicle. 

Is travel insurance necessary?

One issue that often strikes us while planning for a vacation is the necessity of travel insurance. Nobody likes to think of the odds that could make you cancel or shorten a vacation. No matter how well you plan for your vacation, things go wrong due some unavoidable circumstances. And it is here that you seek for shelter of travel insurance. 

As with most things in life, we are exposed to a certain amount of risk when we travel. This is the sole reason why we require travel insurance. Now, whether a person is a student or a professional, it is applicable for both. For students, however, there are certain separate rules and regulations compared to the insurance policies for the other groups of people.

So before you finalize your vacation plans, be sure you have given careful thought to whether you need to purchase an insurance policy while you are traveling. There are circumstances that could cause you to cancel your trip, return home early or force you to seek emergency medical treatment while traveling. Travel insurance provides you with that extra protection cover you need.

Finding The Best House Insurance

We only want the best. The minute we figure out what the best it, the next thing we try to know is how to get it. When it comes to house insurance, everyone wants to go for the best. In order for you to get the best house insurance, it is very important to own your residence and choose the policy that you are committing to carefully.

Financial guides are there to provide you with the policy provisions of insurance companies. By reading these carefully, you can decide whether the plan and the policy they offer you is what you need.

This is one thing you should always keep in mind. The best home insurance plan is the one that gives you the most of your money's worth. As a customer, you should get what you are paying for.

If you feel that you are getting better benefits at the price you are paying, then the insurance that you opt for might not be working for you. But if you believe that the insurance you signed up for is the best home insurance plan, then you made the right decision.

It helps to ask your agent or your insurance broker the questions you have in your head. That's another sign of best house insurance. If the staff is well-trained and knowledgeable of the products and services of the insurance company and can determine your insurance estimate just by looking at your requirements, then you can be assured that they will give you what you deserve.

An insurance company that also offers you tips on how you can qualify for discounts and more benefits can easily be called the best home insurance policy. Just make sure that you are indeed getting the benefits and discounts that they promised you'd acquire.

Generally, the best house insurance covers loss of belongings in case of theft, fire, and other natural disasters. If there is a property of yours that you must be replaced because it has been stolen, damaged or destroyed, an indication of the best house insurance is that it will pay part of the cost, or better yet, cover the entire thing.

It also protects you from liability lawsuits. This happens when you are sued by someone whose property has been damaged and you are liable for it. Your house insurance will cover part of it.

Here's a tip. If you find the best house insurance for your lifestyle and your budget, keep it. There are many homeowners and renters who are still searching for the best house insurance for them and are having a hard time. You finally have yours. Don't take it for granted.

Auto Insurance Terms Explained: A Helpful Guide

When it comes to shopping for auto insurance or dealing with a claim, there are a lot of terms that can be confusing and overwhelming. Understanding the basic terms used in the insurance industry can help you to successfully shop for and purchase the right policy and also help you navigate through the claims process.

Terms Describing Coverage

When it comes to your auto coverage you will come across many terms that describe the various parts of a policy. By knowing what they mean, you’re able to select the right coverage for your needs.

• Third-party Liability. This refers to the coverage provided by the insurance company to pay out liability claims against you. Liability, as the word implies, pays for damages for which you are found liable. This includes property damage and injuries caused by your actions. All drivers are required by law to carry a minimum amount of $200,000 for third-party liability.
• Collision and Comprehensive. These two terms describe the most common optional coverage choices on an auto insurance policy. Collision coverage provides coverage to repair the damage to your vehicle in a situation where you are found to be at fault or your vehicle is damaged by an unidentified vehicle (for example, a hit and run incident). Comprehensive coverage provides for repairs to your vehicle that are caused by something other than a collision – theft, vandalism, weather or other possible causes.
• Deductible. The deductible is the amount for which you will be responsible in the event of a claim. If you make a claim against your comprehensive or collision coverage, the portion of the damages you will have to pay out of pocket is your deductible. Keep in mind that the amount of your deductible can have a big impact on your rates.
• Optional Coverage. As mentioned, collision and comprehensive are both optional coverage choices. Optional coverage is a term that refers to any coverage on your policy that you are not required by law to carry. Other coverage that falls into this category includes wavier of depreciation (providing replacement value for a brand new car), rental car coverage, roadside assistance and accident forgiveness.

Terms Used in the Claims Process

When you go through the claims process, avoid the extra stress of not understanding the insurance language by learning the different terms you may encounter along the way. Clearing up confusion is the first step in dealing with the accident in a stress free-way.

• Total Loss. Also known as a write-off, a total loss is what happens when the cost to repair the damage to your vehicle is higher than the value of the vehicle. The insurance company determines that it is not financially worth doing the repairs and declares the vehicle a total loss. You will then receive a payment for the determine value of the vehicle. The insurance company takes ownership of the vehicle itself.
• Fault. This could be a confusing term, although simple on the surface. Fault basically means who was responsible for the accident occurring. Insurance adjusters determine this by gathering all available information on the accident including police reports and witness reports and then decide whose actions caused the accident. Even in a no-fault insurance province, someone will be found at-fault in every accident; however, based on the circumstances of the accident, there may be more than one driver found negligent and each insurance company may become involved to determine a degree of responsibility for each driver involved in the accident. In case there is a dispute, court action may be required.
• Accident Forgiveness. You may see this term when you are buying your policy, but it will come into play during the claims process. When you are found at fault in an accident, you can avoid a surcharge on your policy if this is your first accident and you have this endorsement (optional coverage) on your policy.

General Insurance Terms

There are a few common terms you will come across when dealing with your auto insurance that could be useful to know. These define the terms of your policy as well as how it covers you.

• Policy Limits. This term describes the amount of coverage that is available for any particular type of claim. Your limits are the maximum amount that the insurance company will pay out in any situation.
• Endorsement. This is something that is added to the standard terms of a policy in order to provide extra or specific coverage. You might add an endorsement to your auto insurance policy to cover expensive rims or other equipment.
• Agent and Broker. These are two different types of people who can help you to obtain auto insurance coverage. An agent generally works for only one insurance company, while a broker represents several and can provide quotes from a few different companies.
• No-fault Insurance. This term refers to the method of claims settlement used in certain provinces wherein no matter who is at fault in an accident; each insured has their claim paid by their own insurance company. It does not mean fault will not be determined in the case of an accident, only that fault does not decide which company pays the claim.

Whenever you’re unclear on what an insurance term means, be sure to ask your agent, broker, or customer service representative for an explanation. It pays to be an informed insurance consumer.

Restaurant Insurance

Running a restaurant is much more than stocking up on supplies, creating menus and preparing food. It requires a delicate balance between customer service, food artistry, relationship building and business know-how to be successful. So when the restaurant and food industry looks to protect all the hard work and investment that goes into their establishments, restaurant insurance is the one element that is a definite necessity.

Commercial insurance protects the restaurant and food industry from the many potential risks that accompany this line of work. No matter the restaurant's size, every business owner experiences difficulties that can ultimately result in claims or lawsuits. Broken equipment, kitchen employee slip & fall injuries and a host of other potential accidents are just a few of the many unexpected issues that arise during the course of working with the general public and employees. Having the right amount of insurance protection in place can mean the difference in keeping a company in business when faced with a large lawsuit seeking a substantial monetary award of damages.

But what exactly do restaurants and other food related service companies need when it comes to insurance protection plans? While each individual company must customize their coverage to best suit their own needs, there are common types of insurance that all will need in varying amounts or policy limits.

General Liability Insurance

General liability insurance is one of the two most common types of commercial insurance that companies need to provide the kind of protection necessary in today's litigious society. The second most common type is general property insurance. Liability coverage protects businesses from lawsuits and claims resulting from injuries and damage to other people's property. For restaurants, liability insurance will cover such customer claims as food poisoning or accidental slip and fall injury on a wet floor.

Property Coverage

Of all the different insurance policies available for restaurants, property insurance is another must have coverage. If a worker forgets and burns something on a stove top thus igniting a fire in the kitchen, property insurance pays to repair the damage. This insurance coverage is available to cover all sorts of potential risk such as fire, theft, explosion, flood and earthquake. It will cover not only the actual building but all of the contents as well meaning that furniture, fixtures and supplies are also protected.

Liquor Liability Insurance

Those dining establishments that carry a liquor license are typically required by state law to obtain liquor liability insurance. This vital coverage will protect business owners and their companies from legal liability for customers that drink a little too much and hurt themselves or someone else - including if they drive while intoxicated.

Food Contamination Insurance

Food and supplies are the lifeblood of every restaurant. When storms or loss of power interrupts important electricity to freezers and walk-ins, the power outage can also cause food to spoil. This important type of insurance protects business owners by paying to replace spoiled food.

Workers Compensation Coverage

Most states require that companies with employees carry workers comp insurance. This insurance will cover workers who are injured on the job by paying for their medical expenses and any lost wages as a result of temporary or permanent disability.

Business Income or Interruption Insurance

When an unexpected event happens - like a flood or fire - many companies must close while repairs are made. Business interruption insurance provides a safety net to restaurants so that should a temporary shutdown be necessary, the bills can still be paid.

No matter the event or accident, restaurant insurance is a must. Business owners should review these coverage types with an insurance broker to gain insight into what policies would be best, and then determine the right policy amounts necessary to provide the best insurance protection to meet business budgets.

Introduction to Business Insurance

When it comes to obtaining competitive business insurance quotes, business owners need to take time to understand the different types of coverage available so they will have more insight into which commercial insurance is appropriate for their situation. Certain insurance coverages like workers compensation and commercial auto (if vehicles are used for business) are required in most states while other policies like general property or liability are optional.

Even when policies are not required by law, it still makes sense to review the coverage to better determine if it is necessary to protecting the business. One of the first steps in shopping for commercial insurance is to decide what risks or exposure the business faces. For example, if vehicles are not used for business operations, then commercial auto coverage is not necessary.

The next step in the process is to find a professional insurance broker to aid in evaluating coverage and obtaining quotes from insurance companies for the different insurance lines that would be appropriate for protecting the business assets, employees and customers. Many brokers are specialized in various types of coverage for different industries so they can assist with the unique needs of each individual business owner.

During the process of insurance planning, it is also important to have business paperwork in order. By providing complete information to the broker and insurance company, both will understand the operations more easily, and this, in turn, can result in more favorable rates. The most important rule is to be completely honest with the insurance professional so that the insurer has all the information needed to accurately quote premiums for the policies.

Also part of the process is to ensure that the business has safety procedures and employee training in place. This will first keep claims low and can also aid in securing the best premium rates. Safety equipment such as fire sprinklers, extinguishers and security alarms are also beneficial so tell the broker or insurer when this equipment is installed at all business locations.

Be sure to obtain a minimum of three quotes from different commercial insurance carriers and read over the coverage terms carefully. Making a decision based solely on price can result in inappropriate insurance amounts or even a financially unstable company. Brokers work primarily on behalf of business owners so they can provide the best advice on the pros and cons of each insurance policy being reviewed.

Small Business Medical Insurance

Small Business Medical Insurance

Small business medical insurance is a top concern for many business owners who have employees they want to retain. Whether they have just one employee or several dozen, business owners must consider small businesses medical insurance. Many people look at the medical plans when considering their employment options. For this reason, medical coverage must be competitive for the employees without being cost prohibitive for the employer. 

Whether one is thinking about starting a business, or looking for a more cost effective small business medical insurance policy for an existing company, shopping around and doing thorough research is a wise investment of time. As with most things today, a good place to begin this task is online. Most insurers offer information-rich websites which overview various plan benefits and rates. If an individual wants to leave the comparison shopping to someone else, using a broker who specializes in small businesses insurance policies is a good idea. Many brokers advertise their services online and they willingly offer provide owners with multiple competitive quotes based upon the company's needs. Insurance brokers are often the best source of information because they can find appropriate policies from a number of different agencies. This can be a better option for busy professionals who might not have the time to research multiple plans.

Licensed insurance agents and brokers can be extremely helpful in helping owners determine what types of small businesses medical insurance is right for their situation. Deciding what kind of plan is most appropriate will be based on a number of factors, including number of employees, annual deductibles, and whether the plan cover dental and vision options in addition to basic health coverage. The type of health plan itself is an important variable and can significantly affect the price of small business medical insurance. HMO plans tend to be the most cost effective to employers and employees, but offer the least choice to plan members.

When choosing an insurance company or agent to handle a small businesses medical insurance plan, it is wise to consult peers and colleagues about their experiences. If they have had to file claims, how smoothly did the claims process go? Were the agents and offices conveniently located? This in addition to the homework completed by the owner will be invaluable. When making any important financial decision, it is wise to carefully weigh one's options and trust the Lord for guidance "Teach me good judgment and knowledge: for I have believed thy commandments".

Business Insurance Quote Online

Business Insurance Quote Online

Business insurance quotes on line can help business owners and financial managers find the very best coverage at the lowest rates offered. Researching through the Internet allows people to comparison shop--looking at policies, service, and premium rates from a number of agencies. Each business's circumstances vary, so policies need to be tailored to fit the needs. A business insurance quote online can potentially save lots of money, as the Internet has ushered in a new level of competition. A result of healthy competition is generally lower pricing and better customer service for the buyer. 

Of course, insurance is an absolute necessity when it comes to owning and operating a business. Every good financial plan will have a budget for various forms of coverage in order to protect the investments of the owners. Financial managers can find budget figures for insurance when they look for a business insurance quote online. These estimates can help the people who prepare budgets as they formulate a realistic figure for their premiums. When getting estimates from a number of agents, people need to make sure that they are comparing like policies to one another. Managers will want to make sure that, for example, the coverage areas on one policy are the same as those on another policy if they are looking at premium rates. A great price from business insurance quotes on line will not mean much if the coverage is not sufficient to protect against a probable loss. "The simple believeth every word: but the prudent man looketh well to his going," (Proverbs 14:15). 

Comparison shopping is an extremely effective way to save money on nearly any product or service. Obtaining business insurance quotes on line makes this a process simple. Premium rates can cover a broad range of pricing. Getting estimates from at least three different sources is recommended to get an idea of what the market rates are. Seekers may be surprised at the wide and various range of quotes they receive when investigating. There are tips and suggestions about how to save money when dealing with this issue, so consumers will want to thoroughly read advice columns and related articles while researching policies and companies. 

There are also brokerage firms that offer numerous quotes at one time. These brokerage firms will work with several agencies that specialize in commercial coverage. Managers can easily log on to one web site and find several business insurance quotes. The insurance markets are changing with the proliferation of the Internet. Now consumers and business owners can easily comparison shop and research various agencies and policies. Log on today and find the best business insurance quote online.

Health Insurance For Small Businesses

Health Insurance For Small Businesses

Health insurance for a small business can be purchased from a number of sources, but there are certain criteria that must be met before companies will write policies for smaller companies. For example, a proprietor must have two full-time employees to be eligible for health insurance for small businesses, and must be able to prove it is a legitimate company by producing a license, a fictitious name filing, articles of incorporation, or articles of organization. Also, the employer must meet the minimum contribution percentage set by the insuring company when buying policies. Next to their compensation, employees value the benefits--particularly health insurance--an employer has to offer. Therefore, when a boss is able to offer this benefit, the company is more likely to draw more competent employees to the workplace. Furthermore, they are more likely to stay with the company longer, so the benefit to the owner is obvious. 

On the other hand, these type of plans provide coverage for the company owner and his family at the lower group rate too. Also, the business can deduct one hundred percent of the premiums for health insurance for a small business as an expense on the company's income tax, and there is a reduction in payroll taxes for the company as well. The employee's portion of the health insurance for small businesses can be paid with pre-tax dollars also. Three types of plans are available to these companies. First, is the indemnity policy, which has both pluses and minuses. On the plus side, the insured can go to any physician or hospital he or she desires with this kind of plan. On the minus side of this kind of plan, the insured has to pay for a portion of every service rendered in addition to his premium. 

However, the managed care plans costs the employee less out of pocket, and there is less paper work involved. The managed care health insurance for a small business will include the HMOs (health maintenance organizations), PPOs (preferred provider organizations), and POS (point of service) organizations, and all of them have restrictions as to which doctors and hospitals the insured may use. All of those companies offering health insurance for small businesses have physicians and hospitals on their list that are properly licensed and accredited, but they may not include the doctor the insured has been going to for years. As an employer or company owner, one should provide for his employees as God has provided for him as a demonstration of love, for we are to "be kindly affectioned one to another with brotherly love; in honour preferring one another; not slothful in business; fervent in spirit; serving the Lord".

Doing an Online Career Search? Think Insurance First

Advancing your career can often mean regular job changes. Now, more than anytime in the past, people have more job changes and are regularly doing online career searches. With new job changes comes benefit changes. Sometimes, you may choose to advance your career and get a new job just for a bigger paycheck but you may want to slow down that career search because that new job may not pay off like you expected.

Think Benefits Before that New Job

If you are considering switching jobs, especially if it is just for more money, don't forget to compare what health care and insurance benefits you may be losing with your new job's benefits. Health care benefits can be substantial and it may not pay off to advance your career if you choose a company that lacks good insurance coverage. Below is a list of three major employee benefits that you should compare before starting your career search and getting that new job.

Three Major Employee Benefits to Compare before Your Career Search

1. What's their employer sponsored health insurance like?

Checking to see if your new employer has health insurance is not enough. You need to find out how much your premium will be along with what benefits are offered. Don't just assume that your new job has great health insurance because the premium is low... what is a good insurance plan if it does not cover you? Something else to look out for: employers that pay for employees to purchase individual coverage. This is not so bad but the downside is that you won't get your pre-existing medical conditions covered as easily as an employer sponsored health plan.

2. Will your new job offer any vision or dental insurance?

This is an important benefit but again, check out the premiums. If the employer does not pay anything toward the premiums, for some people, they may do just as well using a health savings account (see below #3) and paying for their vision and dental bills themselves. Not all employers offer these coverages. When considering a new job it is best to think about what expenses you may be expecting like a child's braces or dental surgery when deciding weather or not a dental or vision plan will suit your situation.

3. Does the employer contribute to a health savings account?

A health savings account is a supplement to your current insurance coverage. These types of plans pay for medical expenses that your health insurance coverage typically does not pay for. Depending on the plan you choose, the money in a HSA is deposited either by you or an employer before it is taxed so it's like paying for out of pocket medical costs tax-free. If you find an employer who contributes to a HSA that can be a great way to save a lot of health care dollars.

Domestic Partner Health Insurance 101

What is Domestic Partner Insurance? 

Domestic partner insurance is when an unmarried couple in a committed relationship decide to share an insurance plan. Traditionally, when a couple shared an insurance plan they were married. Now, many couples of the same and opposite sex are able to share insurance just as a married couple would and reap all the benefits of doing so, with the biggest benefit being a reduced insurance rate and the ability to have their fair share of an employers' benefit package.

Who Qualifies as a Domestic Partner? 

Since there are no current federal guidelines that state what a domestic partnership is, that answer is up to each individual state. It is becoming common practice for states to recognize a domestic partnership as a committed couple in a relationship (same sex or opposite sex) similar to a marriage, but with no official marriage license. So, this would mean that the couple would have similar characteristics of a marriage such as sharing a common residence and financial responsibility. Often times an insurance company will require proof of a committed relationship such as receipts and bills showing that you both share financial responsibility, a notarized document, or, in some states that it is available, a filed domestic partnership agreement from the city clerk's office (check out About.com: Lesbian Life for more information on states that grant domestic partnerships). If you want to learn more about specific state laws on domestic partnerships you can check out About.com: Gay Life's article on the Benefits of a Domestic Partnership.

How do I Evaluate Domestic Partner Insurance? 

Evaluating domestic partner insurance requires the same research as evaluating the purchase of any type of health insurance. Taking the time to understand and review a health insurance policy thoroughly is important and will help you get the most out of your insurance. Using the Health Insurance 101 article will help you determine the kind of health insurance coverage you may need along with information on understanding your health insurance policy and claims assistance.

How do I Find a Domestic Partner Insurance Company? 

Finding an insurance company that will accept you and your domestic partner can sometimes be a lengthy, time consuming process. The first step would be to start with your insurance plan at work. It may be best to contact the insurance company directly and ask them if you can insure your domestic partner on your employee health insurance plan and if so what steps do you need to take to get started. If your employer's health insurance plan does not provide domestic partner insurance next check with a private company. Here are some online sources that may help in your search for domestic partner insurance:

• Insurance Companies that Provide Domestic Partner Benefits


• Search for an Employer that Offers Domestic Partner Health Benefits


• Domestic Partner Benefits Consulting Services