Insurance World

Most people take it for granted that they are able to awake each day and earn an income to support themselves and their family. The ability to be independent in this regard is one of your most valuable assets. Additionally, most people do not understand that the chances of becoming disabled at some time during their working career are higher than they would imagine. Hence, disability insurance is available to protect your assets.

Disability insurance is insurance that is intended to replace your income if you should become sick, disabled, or hurt, and the illness or accident prevents you from earning an income in your occupation. Disability insurance will pay anywhere from 45% to 60% of your gross income during your absence from work.

It is important to note however, that not every policy is the same. Carefully scrutinizing the details and comparison-shopping is necessary when shopping for disability insurance. The least expensive policy is not necessarily a good choice. The odds of being paid a monthly benefit that will cover your cost of living while you are disabled are not improbable if you have purchased a low-cost insurance policy.

The purpose of this article is to provide useful information about the features of disability insurance, so that you can make an informed decision when purchasing your insurance policy.

Types of disability insurance

Short-term disability is as it name implies. This policy may pay benefits for two weeks up to two years. Usually, your employer provides short-term disability policies.

Long-term disability as it name implies, will provide benefits for an extended period. Long-term disability insurance usually lasts about 5 years. This type of insurance will also expire when the person turns 65. Some employers will offer this type of insurance as part of employee benefit package or will make it available at a specific cost.

The two main types of long-term disability insurance policies are non-cancelable and guaranteed renewable. A non-cancelable and guaranteed renewable policy means that the insurer cannot cancel or refuse to renew your policy as long as the required premiums are paid on time. However, the significant differences between the two policies are that with a guaranteed renewable policy the premiums can be raised, but only if it affects the entire class of policyholders. Under a non-cancelable contract, the premium payment remains in effect as stated on the policy. Consequently, initial premiums for guaranteed renewable policies can be less expensive than non-cancelable policies

Leasing a car is not only an attractive financial offer to the majority of auto-consumers, but also a lifestyle and favorite choice.

Leasing a car has four main benefits.

1. Keeping up with the latest trends. Lots of people want to drive the latest models every two to three years.

2. Leasing offers buying flexibility. It allows you to postpone the buying decision while using the car. At the end of your lease, you can buy the car or simply walk away.

3. Leasing reduces your preliminary cash expense because you do not have to pay the large down payment required for car ownership.

4. Just about every aspect of leasing is negotiable. If you know all the fees involved, you can lower your monthly payments.

When leasing a car, it is easier to choose the same company for your auto insurance. However, you may end up paying too much for your coverage and it is better to look elsewhere for lower rates.

When you lease, the car that you will drive belongs to the leasing company. They want to be sure that their investment is covered in the event the car gets damaged, totaled or stolen.

They usually want to get covered for the difference between what your auto-insurer pays and your unpaid leasing obligations at the time of the accident or damage. This is called GAP, short for Guaranteed Auto Protection, and is typically included in the leasing contract.

If your leasing company is a finance division of an automaker, then your GAP insurance will be offered by the same lease company.

You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you can find the same coverage for a lower price?

Spend some time shopping by comparing quotes from different insurance companies. Demand discounts that you already qualify for and modify your coverage in view of that.