Hazard & Flood Insurance

Home insurance is an insurance policy that protects your home structure and property. Your home insurance policy covers damage done to your home, the contents inside a home and the loss of the homes use (personal living expenses while out of your home due to damage). Your home insurance policy will also protect you against liability from an accident that might occur at your home.

TAC Insurance agent can also help you secure your valuable possessions under your homeowner policy. You will want to make sure that your homeowner’s insurance is placed with enough coverage to replace the house and also replace the contents inside. We can help you determine how much additional coverage above the home’s value should be added onto your policy.  Some items that will be covered under your policy are:
 • Engagement and Wedding Rings     • Fine Jewelry

• Appliances                                    • Clothing

• Furniture                                       • Electronics

• Clothing                                        • Valuables
 

Damages caused by earthquakes, floods, “Acts of God” or war are excluded from a standard homeowner’s insurance policy. Special insurance policies are available to protect yourself from these possibilities, such as a flood insurance policy.

Most individuals borrow money to finance the purchase of their home. The lenders will require a borrower have home insurance as part of the agreement to qualify for a home loan. This protects the lender’s investment in the case that the house is destroyed. Your home insurance payment and mortgage payment are often rolled into one bill so the lender can ensure that the borrower is paying the insurance premium.

 

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LIFE INSURANCE PURCHASE!

Defining Your Needs
The purchase of life insurance is an important decision for both you and your family.  There are many reasons why life insurance policies or annuity contracts are purchased, but these reasons should be based upon your financial planning needs. Factors such as your marital status, number of dependents and cost for their support, future education needs, current and anticipated family income, and your current assets and debt obligations all play a role in determining the amount of life insurance that is right for you. 
Choosing the Amount of Life Insurance
Your need for life insurance will vary with your age and responsibilities. The amount of insurance you buy should depend on the standard of living you wish to assure for your dependents. You should consider the amount of assets and
sources of continuing income available to your dependents when you pass away. Simply stated, you should choose an amount of life insurance that is determined necessary to meet the needs you are trying to satisfy.  A balance
needs to be achieved in this process. To be over-insured can negatively affect your budget and threaten your long range financial goals just as much as being under-insured can. While each person must individually assess their  responsibilities, needs, and financial situation, it is important to be careful to choose an amount of life insurance that reflects your specific circumstances without under-insuring or over-insuring.
Steps To Determine How Much Life Insurance You Need:

Determine how much life insurance you need based on the factors mentioned above

1.       Decide how much money you can afford to pay.

2.       Choose the type of life insurance policy that meets your coverage goals and current family budget. Fitting these two factors together will move you toward a successful overall financial plan.

3.               Once you have completed these steps, you will be able to move ahead and contact several life insurance companies (through an agent or broker) to shop for the right type of policy for you.

There are many reasons for purchasing life insurance, among
which are the following:

4.       Insurance to provide financial protection and security for surviving family members upon the death of the insured person.

                       Insurance to cover a particular need such as paying off a mortgage or other debt upon the insured's death.

                       Business insurance to compensate a company on the death of a key employee or to provide a surviving partner the resources to buy out the deceased partner's share of the business.

                       Insurance to provide funds to pay estate taxes or other final obligations necessary to settle a deceased person's estate.

                       Insurance to provide the funds necessary for the deceased person's burial expenses.

Choosing the Appropriate Type of Life Insurance
There are two basic types of life insurance: term life insurance and cash value life insurance.  There are many policy variations between these two types of life insurance.

Term Policies provide life insurance for a specified period of time.  This period could be as short as one year or provide coverage for a specific number of years such as 5, 10, 20 years or to a specified age.  If you die during the
term period, the company will pay the face value to your beneficiary. If you live beyond the term period you had selected, no benefit is payable. As a rule, term policies offer a death benefit with no savings element or cash value. If you have a limited amount to spend, and only need insurance for a specified period of time, you may be able to get more coverage by buying term  insurance than by buying cash value insurance. Keep in mind that the cost of term insurance increases as you get older, which may make it more expensive than cash value insurance in the long run.  Today's term policies usually have two sets of premiums: guaranteed maximum premiums and current premiums.
Current premiums are usually much lower, but they can be changed by the insurance company. The insurance company cannot increase the current premium above the guaranteed maximum premiums shown in the policy. When you buy term insurance, you need to make a choice as to how long you want the protection. You may renew the policy without a physical examination for the period of years specified in the policy.  Some term insurance can be converted to cash value insurance up to a specified age with no physical examination.  Premiums for the converted insurance will most likely be
higher than the premiums you would be paying for the term insurance. If you do not pay the premium for your term insurance, it will generally lapse without cash value, as compared to a permanent type of policy that has a cash
value component.

Cash Value Insurance combines death benefits with a cash value accumulation feature. The buyer of a cash value policy pays more in the early years than for term insurance, but the premium not needed to pay for the cost of the death benefit accumulates with interest within the policy. If the policy
is surrendered before the insured person dies, there may be a cash value paid to the owner, less any outstanding loans placed against the policy. 

Make sure the agent/broker provides you with the method by which the cash value is determined and that they obtain this information based on the policy's guaranteed value.  It is not a good idea to buy a cash value life insurance policy if you plan to surrender early due to substantial surrender penalties.  If all premiums are paid, cash value insurance usually lasts for the entire life of a person and pays death benefits to the beneficiaries named in the policy upon the death of the insured.  The cash value can be used as loan 6 State of California Department of Insurance collateral for borrowing funds at the interest rate specified in the policy.  Any outstanding loans are deducted from policy proceeds at death or at policy surrender. 

Some of these products may enjoy tax advantages while they remain active. Therefore, a policy lapse or surrender may create a taxable event and may generate a Form 1099.  Form 1099s are sent to the IRS for tax purposes; be sure to check with your tax advisor.  Some of the most popular types of
cash value insurance are described below:

Whole Life Insurance (also known as straight life, ordinary life, and traditional permanent insurance) is designed to provide coverage for your entire lifetime unlike term insurance which provides protection for a specified time period.  To keep the premium level, the premium at the younger ages exceed the actual cost of protection.  This extra premium builds a reserve (cash value) which helps pay for the policy in later years as the cost of protection rises above the premium.  Whole life policies stretch the cost of insurance over a longer period of time in order to level out the otherwise increasing cost of insurance.  Under some policies, premiums are required to be paid for a set number of years. Under other policies, premiums are paid
throughout the policyholder's lifetime. 

Universal Life Insurance is the most fl exible of all the various kinds of policies because it treats the elements of the policy separately; universal life allows you to change or skip premium payments or change the death benefit more easily than any other policy.  It works by treating the three elements of the policy - premium, death benefit, and cash value - separately.  Cash values are accumulated by crediting premium payments and interest to a fund from which deductions are made for expenses and cost of insurance. Interest rates are linked to an external index such as Treasury bills.  Because the cash value element of this type of policy is interest-rate sensitive, predictions of future Life costs are highly dependent upon the accuracy of interest rate projections.  The policy can also be structured to operate like term insurance.

Variable Life Insurance has a death benefit that varies in relation to the investment experience of the assets underlying the policy.  A higher rate of return on the invested fund will cause the death benefi ts to increase, while a low or negative rate will cause the death benefi ts to decrease.

Variable Universal Life Insurance combines the flexibility of universal life insurance with the investment account features of variable life insurance.

Below is a chart to help you understand the differences in the various types of policies.

Group Insurance
Many employers offer life insurance under a group plan and sometimes pay part or all of the premium.  A medical exam is usually not required for insurance purchased this way, and the insurance can be less expensive than coverage purchased as an individual.  Under California law, group life insurance must be convertible to permanent insurance at the insured's option when the insured's coverage under the group policy terminates. The converted policy will probably be much more expensive than the group insurance. Some employers will allow insurance companies to send agents or enrollers to
their premises in order to offer insurance to their employees.  Policies offered in this manner are different from group insurance, and you should evaluate the materials shown to you in the same way as if you were considering a purchase of an individual policy through an agent. 

Insurance by Mail Order or Through the Internet
Some insurance companies solicit by mail or through the Internet.  In most cases, the prospective buyer mails a completed application directly to the company.  Both Internet and mail order marketing may not provide a complete range of choices as target marketing often involves offering only one type of policy. Before you buy by mail or through the Internet, consult an expert who can help you determine the best policy for you. You should verify that the insurance company offering the coverage is licensed to sell life insurance in California. 

Sales Illustrations
It is likely that an agent will show you one or more life insurance sales illustrations. An illustration consists of a series of numbers indicating how the policy works.  The illustration usually shows the guaranteed results under the
policy for each year in the future, and the results if all the non-guaranteed items continue at their present level.  Actual results may be better or worse than the non-guaranteed amounts shown in the illustration (but not worse than those that are guaranteed).

Using Indexes
Your chances of finding a good buy on a life insurance policy is better if you use the index numbers that have been developed to aid you in shopping for life insurance.  The Buyer's Guide that each insurer is required to provide to a
purchaser explains these index numbers in detail.  They are good tools to help you compare the merits of similar policies.

Important Facts If You Are Considering Changes to Your Life Insurance Policy
Many consumers are approached by life insurance agents or life sales representatives and are asked to consider canceling their current life insurance policy in order to purchase a replacement policy. In most cases, the cash value of the current life policy is used to buy more insurance or a new policy. While a decision to replace an existing life insurance policy may be a good one, sometimes this may not be in your best interest. More than likely you purchased your policy with a long term fi nancial plan in mind.  Replacing or changing your insurance policy at this point may affect the intended results of your overall financial plan.  If you are considering replacing or changing your life insurance policy, you should first assess your needs and determine what is in your own long term best interest.  It is also important to consider the interests of those you are protecting.  Deciding how much insurance you need, how long it is needed, and which policy provides the best coverage is crucial to your financial security.

Your financial needs should be thoroughly evaluated before changes are made in existing policies. Any change in your personal circumstances since you first purchased life insurance may require a different strategy.  A comprehensive evaluation may indicate that replacing or changing your policy is advisable. However, certain cautions are appropriate when considering replacing or changing your life insurance.  For example:

You may have to pay "start up" costs again. You may be required to wait one or two years before a new policy passes through the contestable period. During the contestable period the insurer is contractually entitled to cancel the policy or refuse to pay a claim based on omissions, or mistaken or untrue statements in your application. You may pay a higher premium for new insurance over the duration of the policy because you are older than when you first purchased life insurance.

                       The financial strength of a new insurer may be different from that of your present insurer. 

                       There may be specific tax consequences when you replace or change your current policy.

                       You may find different loan provisions in a new policy, or you may find that you cannot take tax advantaged loans in the new policy.

                       If you use the cash value of one policy to pay for the premium on a new policy, the values used may not be sufficient to support the new policy in future years, and may result in the need to make additional premium payments to keep the insurance in force.

                       You may not have immediate access to your money in a new policy. You may have to wait a considerable period of time, or pay a monetary penalty, to access the cash value in the policy.

                       Tax consequences may occur if you take cash from an annuity or mutual fund that started as a replacement policy for your original life insurance policy.

                       When considering policy replacement, it is important to note that you may have the ability to amend or convert your current policy to a newer product within the same insurance company without any loss of rights or accumulated cash value. It may be in your best interest to contact your current agent or company and to inform them of your intent.

                       Illustrations are utilized by agents to highlight certain features of their policies. Illustrations should never be the only factor used in deciding to replace or change your policy. Illustrations that are presented for comparison purposes may not give a complete picture of the new policy's future. To ensure that your insurance policy meets your financial objectives, it is recommended that you obtain a second opinion, as well as consult with your current agent.  Given the complexities involved in counseling a consumer regarding insurance purchases, you may want to inquire about the professional qualifications of your current agent and new agent.

 

 

 

 

NEED TO KNOW !!!

What is auto insurance?

Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.

Auto insurance provides property, liability and medical coverage:

    * Property coverage pays for damage to or theft of your car.
    * Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
    * Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses.

An auto insurance policy is comprised of six different kinds of coverage. Most states require you to buy some, but not all, of these coverages. If you're financing a car, your lender may also have requirements.

Most auto policies are for six months to a year. Your insurance company should notify you by mail when it's time to renew the policy and to pay your premium.

What is in a basic auto policy?

Your auto policy may include six coverages. Each coverage is priced separately.

   1. Bodily Injury Liability

This coverage applies to injuries you, the designated driver or policyholder cause to someone else. You and family members listed on the policy are also covered when driving someone else's car with their permission.

It's very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.

    2. Medical Payments or Personal Injury Protection (PIP)

This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.

   3. Property Damage Liability

This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else's car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.

   4. Collision

This coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000-the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver's insurance company. If they are successful, you'll also be reimbursed for the deductible.

   5. Comprehensive

This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.

Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.

Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.

States do not require that you purchase collision or comprehensive coverage, but if you have a car loan, your lender may insist you carry it until your loan is paid off.

   6. Uninsured and Underinsured Motorist Coverage

This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.


Can I drive legally without insurance?

NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don't have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.

If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.


What if I lease a car?

If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You'll need to buy these coverages in addition to the others that may be mandatory in your state, such as auto liability insurance.

If you've financed your car, your lender may require comprehensive and collision insurance as part of the loan agreement.

    * Collision covers the damage to the car from an accident with another automobile or object.
    * Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a deer.

The leasing company may also require "gap" insurance. This refers to the fact that if you have an accident and your leased car is damaged beyond repair or "totaled," there's likely to be a difference between the amount that you still owe the auto dealer and the check you'll get from your insurance company. That's because the insurance company's check is based on the car's actual cash value which takes into account depreciation. The difference between the two amounts is known as the "gap."

On a leased car, the cost of gap insurance is generally rolled into the lease payments. You don't actually buy a gap policy. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a "gap waiver." This means that if your leased car is totaled, you won't have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.

If you have an auto loan rather than a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled before you've finished paying for it. Ask your insurance agent about gap insurance or search the Internet. Gap insurance may not be available in some states.

Do I need insurance to rent a car?

When renting a car, you need insurance. If you have adequate insurance on your own car, including collision and comprehensive, this may be enough.

Before you rent a car:

    1. Contact your insurance company.

Find out how much coverage you have on your own car. In most cases, the coverage and deductibles you have on your personal auto policy would apply to a rental car, providing it's used for pleasure and not business. If you don't have comprehensive and collision coverage on your own car, you will not be covered if your rental car is stolen or if it is damaged in an accident.

    2. Call your credit card company.

Find out what insurance your card provides. Levels of coverage vary.

If you don't have auto insurance, you will need to buy coverage at the car rental counter. The following coverages are available to you at the rental car counter:

    1. Collision Damage Waiver (CDW).

Sometimes called a Loss Damage Waiver (LDW), this coverage relieves you of financial responsibility if your rental car is damaged or stolen. The CDW may be void, however, if you cause an accident by speeding, driving on unpaved roads or driving while intoxicated. This coverage generally costs between $9 and $19 a day. If you have comprehensive and collision on your own car, you may not need to purchase this coverage.

    2. Liability Insurance.

This provides excess liability coverage of up to $1 million for the time you rent a car. Rental companies are required by law to provide the minimum level of liability insurance required by your state. Generally, this does not offer enough protection in a serious accident. If you have adequate liability coverage on your car or an umbrella policy on your home/auto, you may consider forgoing this additional insurance. It generally costs about $7 to $9 a day. If you don't own a car, and rent cars often, consider purchasing a non-owner liability policy. This costs approximately $200 - $300 per year. Frequent car renters sometimes find this more cost-effective than constantly paying for the extra liability coverage.

    3. Personal Accident Insurance.

This provides coverage to you and your passengers for medical/ambulance bills. This type of insurance, usually costs about $3 per day, but may be unnecessary if you are covered by health insurance or have adequate medical coverage under your auto policy.

    4. Personal Effects Coverage.

This provides coverage for the theft of personal items in your car. However, if you have homeowners or renters insurance, you may be covered for items stolen from the car, minus your deductible. You need to have receipts or other proof of ownership. This type of insurance usually costs about $1.25 per day. Some rental car companies combine personal accident and personal effects coverage together as one type of insurance, while others sell it individually.

The cost of insurance at the rental car counter will vary depending on the rental car company, state, and location of the dealer and the type of car you rent.

Some rental car companies may check your credit and driving history and may deny coverage. Check with the rental car company to find out its policy.


What's the difference between cancellation and non-renewal?

There is a big difference between when an insurance company cancels a policy and when it chooses not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except:

    * If you fail to pay the premium.
    * You have committed fraud or made serious misrepresentations on your application.
    * § Your driver's license has been revoked or suspended.

Non-renewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for non-renewal before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company's consumer affairs division. If you don't get an explanation, call your state insurance department.

Shopping Tips

Purchasing the right insurance that meets your needs can be challenging. Insurance can be one of the most important ongoing purchases you make to protect yourself and your family from fi nancial hardship. Since your needs
and fi nancial situation change over time, it is important to understand and review your insurance policies to decide if the same policies are still right for you.  If you are considering buying, reviewing, or replacing insurance, then the following insurance tips can be of assistance:

• Verify Status of the Agent and Company
  (call the California Department of Insurance toll-free at
  1-800 927-4357)
• Never Be Pressured or Intimidated by an Agent
  22 State of California Department of Insurance
• Answer All Questions on the Application Correctly
• Never Sign An Incomplete or Blank Form, or Anything
  You Don't Understand
• Compare Policies or Contracts Carefully
• Always Read Your Policy or Contract
• Keep Your Policy or Contract in a Safe Place

The Department of Insurance cannot make recommendations concerning life insurance or annuity products. However, you may contact the CDI for informational guides on all types of insurance such as Auto, Home, Life, Annuities, Health, Medicare Supplement, and Long Term Care. The CDI can assist you with any insurance question, concern, or problem. You can reach us
toll-free at 1-800-927-4357 or http://www.insurance.ca.gov/.

What Is a Business Owners Policy?

 

Designed specifically for small businesses, a Business Owners

Policy (BOP) is a combination commercial policy that covers

Property, general liability and business interruption. It is written

with strict underwriting guidelines including maximum allowable

square footage for office, retail, or apartment risks. A BOP

is most appropriate for small, “main street” businesses such

as: hardware stores, barbershops, greeting card shops, accountant

offices or low-density apartment houses. Discuss the

option of a BOP with your broker-agent, as the premium for

qualifying businesses can be very competitive.

 

How Are Commercial Policies Rated, Deductibles

Selected, and Premiums Developed?

 

The way a policy is rated determines how the policy premium is

developed. Rating factors vary based on the line of insurance

you are purchasing. If you are purchasing commercial property

insurance, the building rating formula is based on factors including

square footage, type of construction, sprinklered or non-sprinklered,

and the fire protection classification. If you are purchasing general

liability insurance, the rating formula can be based on square footage,

payroll or gross sales depending on the general liability classification

codes used. These are known as rating exposures.

Once the rating exposures are identified and the deductibles

selected (usually from information you have provided on the

application), the premium is calculated by a simple formula:

rate x exposure = premium. The deductible amount you choose

will be calculated in the rate. The higher the deductible (the amount

you choose to self-insure) the lower the rate. By utilizing higher

deductibles, you can bring your premium cost down; however,

you do not want to jeopardize your company’s financial future by

choosing overly large deductibles. Speak with your broker-agent

for the deductible options available to you when purchasing

commercial insurance.

The basic rating equation most often utilizes other modification

factors, which can include experience modifications, schedule rating,

or judgment rating. Because rating formulas can range from simple

to complex, depending on the line of insurance, it is important to

discuss how your policy is rated and how the policy premium is

calculated with your broker-agent. 

                                            

Business Insurance

Business is unpredictable. Buying business insurance shouldn’t be.

By most accounts, the goal of doing business is maximizing profits, while minimizing costs. This means making strategic plans that account for expected costs and delineate actionable plans that shrewdly reinvest the profits. Keeping costs to an acceptable level entails finding affordable, comprehensive CA business insurance that can reduce the cost of unexpected losses, like natural disasters, lawsuits, employee injuries, and more.

But, how much business insurance is too much? How much is too little?

State regulations will determine basic insurance requirements. Among the commonly required policies are workers compensation, unemployment, and disability insurance. But these may not be enough. Business insurance packages can include any of the following coverage:

·                 Business Owners Policies (BOP)

·                 Worker’s Compensation

·                 General Liability

·                 Errors & Omissions

·                 Commercial Auto

·                 Commercial Property

·                 Group Benefits

·                 Professional Liability

At TAC Insurance, we understand the importance of having affordable, comprehensive business coverage in place – no matter how big or small the business may be. We can identify the required state policies and suggest more comprehensive and affordable business insurance solutions.

Contact us or fill out our free business insurance quote form for more information today.
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Personal Insurance Reviews Benefit The Customer

A personal insurance review is simply reviewing your insurance policies with your agent. This can be done by phone or in person. I feel it is always nice to do these in person. Meeting in person makes the review more personal and builds rapport with your agent. I recommend completing a personal insurance review every one to two years. There are several benefits to having a regular insurance review.

One benefit is that you may uncover discounts that you are eligible to receive. Insurance companies offer a variety of discounts to their policyholders, so you want to see that you are receiving all discounts available to you. One example of a discount that may be overlooked is the Good Student Discount. Most companies offer this discount, but the agent may not be aware that a child qualifies for the discount until an insurance review is done. Updating the electrical, heating, or plumbing on your home may provide you a discount on your home insurance; but your agent may not know that these updates have been done to your home until you have an insurance review. Personal insurance reviews are a great opportunity for you to discuss all discounts available with your agent.
The second benefit is to review the coverage on existing policies. Your situation may have changed since the policy was written and you may not need the same coverage as you did previously. One common situation is people that have vehicles on their policies for several years. Sometimes these vehicles still have full coverage, but the customer does not realize it. The age or condition of the vehicle may not warrant the additional premium for full coverage. Another common situation is people that still have very low deductibles on their home insurance. It was not uncommon to have $50, $100, or $250 deductible 15 to 20 years ago, but many times there is a significant savings in premium to raise the deductible. A personal insurance review is a great time to remove any coverage that may no longer be needed.

A third benefit is to locate any gaps in coverage. There are many areas where gaps can occur in your insurance program without you realizing it. Your life changes frequently and many of the changes may seem minor, but can have an effect on your insurance coverage. Some common changes that affect your insurance are updating a home can increase its value; having children may increase the need for life insurance; purchasing an expensive television or jewelry may require additional endorsements be added to your home insurance. Having an annual or bi-annual review helps to uncover areas where gaps in coverage may exist.

People are often hesitant to have an insurance review because they feel the sole purpose is for the agent to sell more insurance. However, the purpose of the insurance review is to make sure that the individual has the proper coverage in place for their situation. This is a benefit to the agent and the customer. The customer benefits by gaining a knowledge of their coverage and receiving the peace of mind that they are properly insured. The agent benefits by knowing their customers will have no gaps in coverage if a loss occurs.
It is important to have regular insurance reviews with your agent. The reviews make sure proper coverage is in place before a loss occurs and that you are paying the proper premium by taking full advantage of all discounts available.

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All families will need a financial plan which includes personal insurance coverage in order to cope in the event of accidents, death, illness and disability. As you are planning insurance coverage you will need to consider your economic situation, age and number of dependents. There are a confusing range of insurance plans and which ones are best for you will depend on numerous things. Life insurance for instance is vital if you have a spouse or dependent children but is obviously less crucial for people who do not have dependents. Everyone should purchase disability insurance as all of us need to be covered if we are unable to go to work. Below are short descriptions of some of the different kinds of personal insurance coverage available.

Auto Insurance
* Needed by everyone who drives a car
* Minimum liability coverage essential

Liability insurance is needed before you can register a car and many states require a medical cover of at least $100,000, a minimum accident coverage of $300,000 and $50,000 for property damage. Unfortunately these minimum values may not be adequate and we would recommend you have above the minimum required cover. Other coverage recommended also includes collision, theft and fire coverage. Cost of the insurance can often be reduced by going for a higher deductible.

Prices vary a a great deal between companies and you should obtain a range of quotes before choosing. There can often be discounts available which may depend on on your driving record, age, where you live etc.

Homeowner's Insurance
* Considered necessary for all who own a house

Home personal insurance coverage must be sufficient to cover rebuilding costs and replacing furniture and fixtures in the event of fire or other damage and to be covered in the event of injury happening on your property. To decide the amount of insurance you will need for rebuilding, subtract the cost of the land and foundations from the house value and ensure that you have cover for at least 80% of the resulting cost. Liability insurance coverage for most householder's policies is typically around $250 ,000.

Life Insurance
* Essential for anyone with a dependant spouse, children or others

Life insurance is a kind of personal insurance coverage that pays out to your dependants when you die. The amount of coverage necessary of course, will depend on your financial situation and circumstances and the amount those that survive you will need to continue to enjoy the same standard of living. You need to take into account costs of education and outstanding debts when deciding on the level of insurance cover that you need.

Disability Income Insurance
* Essential by everybody who supports themselves

Personal disability insurance coverage is indispensable for all of us for times when we cannot work. Many companies provide a broad insurance coverage for employees but this is frequently short term or low coverage and often not really adequate. The cover is often up to 65% of your salary and is frequently for a restricted period. If you can, try to find coverage that lasts until you retire. If your employer offers cover take care that it is enough and that it will last long enough.

Health Insurance
Medical insurance is generally offered by employers as private medical insurance coverage is frequently much more expensive. Check out the conditions of your employer's medical insurance for any constraints.

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Basic Tips On Getting Cheap Car Insurance
Car insurance is obligatory for anyone who drives a car and although it is a necessary cost, the actual price that you have to pay for it can vary depending upon certain factors. Everyone wants to achieve cheaper rates of insurance for their vehicle and thankfully there are plenty of things that you can do in order to reduce your costs.

Make sure that you spend time shopping around. The best way to actually understand what is on offer on the market is to gather as much information as you can on different quote prices. Go to as many different company websites as you can and get quotes directly. Also consider the option of comparison sites where you can generate dozens of quotes very quickly and easily. By doing this you will be able to identify the cheapest quotes on the market.

If you would prefer you can also call up different insurance providers over the phone. By doing this you can discuss the specifics of the quote you are trying to get and you may also be able to negotiate over price. This is something that you cannot do online and therefore you may be able to barter your way down to a more competitive policy.

Consider the vehicle that you drive and the actual level of coverage you need. Have you just purchased a brand-new vehicle? If so you will need to get a comprehensive package in order to cover your vehicle. If your vehicle is a couple of years old or more, however, then something like collision coverage may not be necessary. Make sure that you don't purchase coverage that you simply do not need.

Your vehicle should also have all of the relevant safety features installed onto it. By making sure that your vehicle is fully covered with all of the latest safety features, you will reduce the chances of injury, thus reducing your premiums. At the same time look at the option of adding antitheft devices to your vehicle as well to reduce the chance of theft.

Raise the deductible. The deductible on your policy refers to the amount of money that you have to cover if you want to file a claim to your insurance company. Most people keep their deductible fairly low but if you raise it significantly then your premiums are likely to go down. Just make sure that you keep your deductible at a level that you are happy with.

Do you need any other insurance policies such as home insurance? If so consider purchasing all of your insurance policies from the same company. Consolidating your insurance requirements into a single package is an excellent way of achieving a discount. Look for providers who offer this option and ask them what sort of discount you can get.

One final tip is to pay for the entire policy up front. Again, certain companies will allow you to do this and will offer you a discount for doing so. In most cases if you were to simply pay on a monthly basis additional costs would begin to accumulate.
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