Insurance World

Long term insurance policy is nothing but total protection for you and members of your family. It is the best thing that can happen to you in a worst situation. For example, what is the impact of a serious illness? It physically harms you. More than that, it mentally harms you. Your expenses mount.

A good insurance policy is like your best friend in need. Yes, there are really some good policies that take care of all your expenses including payment of rent, house mortgage installments, groceries, telephone, electricity bills, car installments and practically everything that forms part of the monthly budget including the school fees of your children. Your over the year, hard earned savings remain intact. You can spend it for the purpose for which you saved.

Before deciding upon the long term disability insurance policy, give a cool thinking to all the factors- the to-do and the to-be factors. What is the extent of coverage, under your present insurance set up? Evaluate all the benefits that you are likely to receive from your employer. What benefits you will get from the workmen’s compensation provisions? What about the provision of paid sick leave? What about your short term insurance policy?

Take all the above mentioned factors into consideration. Take into account all the sources of your income such as your spouse’s income, your emergency savings, interest income your investments in shares and debentures and possible income from disposing off the property. If the sum total of the above is insufficient for any untoward turn in your life, then go for a well-thought out plan of long terms disability insurance.

Only after this exercise, initiate the process of examining the various options available to you under the long term disability insurance. Every additional benefit means payment of extra premium. There is no clear cut plans. You have to decide what suits you. For that, call for online quotations from a reputed broker. After giving them a careful consideration, form your questions and seek clarifications.

When you have decided about the details, short-list the companies that you purport to deal with. Reputation of the companies to settle the claims and standing of the company are the two main factors to be considered. Apply, safety first rule for your ultimate benefit.

Just because you have insurance doesn’t mean it will be enough to protect your hard-earned assets should the inevitable happen. There are countless situations - like a home fire, a car wreck with injuries, or someone getting hurt on your property (to name a few) - where your level of home or auto insurance could make or break your financial future.

Here are five commonly made insurance mistakes and how to avoid them, according to Charles Valinotti, General Casualty Insurance Companies’ assistant vice president, and John Blodnick, Unigard Insurance Group’s vice president.

1. Buying the cheapest policy out there. You might save a buck by getting the minimum amount of insurance you legally can. But if the cost of an accident ends up being more than your policy covers, you’re still responsible for paying the rest. Other parties could go after you and your assets.

2. Forgetting to pay your bills. There are plenty of understandable reasons why you might not pay your bill on time. But be warned that if you don’t pay your bill, your insurance company isn’t obligated to cover you - period. To avoid this, set up automatic payments through your bank or insurer or escrow for your home insurance. Otherwise, move your insurance bill to the top of the stack.

3. Assuming your stuff is covered. Policies limit how much coverage they provide for certain higher value items. Have a diamond wedding ring? Antique silverware? Customized wheels on your truck? Nice stereo system? Expensive guitar? These could fall outside the realm of a typical home or auto policy’s coverage. It’s easy to rectify this problem by “scheduling” or adding extra coverage with an endorsement, which gives you higher limits on certain items.

4. Not bothering with an umbrella liability policy. Umbrellas are only for rich people, right? “No, umbrellas are for every Tom, Dick and Harry. Think about your annual combined household income. Isn’t that worth protecting?” Valinotti said.

What if someone got hurt during your child’s next birthday party or your upcoming backyard barbecue? You can purchase an umbrella for as little as $100 for $1 million of extra coverage, depending on the policy and which area of the country you live in. “It’s a risk not to have an umbrella, like playing the lottery with your financial future,” Valinotti said.

5. Keeping your agent in the dark. If you’ve recently built an addition on your home or made a big purchase (see number three), talk to your agent. Without extra coverage, you could be underinsured. Or if you get your bill and decide you want less coverage, talk to your agent. Policy changes may or may not be a good idea, but it’s your insurance agent’s job to advise you.

“Today, people often feel that an agent is not necessary,” Blodnick said. “However, considering the complexity of the products you are buying in an ever-more complex world, the expertise of a professional agent can be extremely important.”

For example, at a glance you may think, “I don’t need ‘other than collision’ coverage on my car.” But your agent would tell you that’s what covers you if your vehicle is stolen, catches fire, is damaged by hail or wind (such as a tornado), or if you hit a deer.

Your agent can also suggest ways to save money on insurance without risking your financial security – such as taking a driver safety class, getting a home security system, taking down the trampoline your kids never use, increasing your deductible, or taking advantage of multi-policy or good student discounts.

Contact your local independent insurance agent for a review of your personal insurance policies. - ARA