Insurance World

If you drive, you need auto insurance. But many drivers still cruise around town uninsured. But why? It’s because they don’t think they’ll end up in an auto accident. However, everyday hundreds of drivers find themselves in auto accidents, and I’m sure it’s safe to say that they weren’t expecting it.

Auto insurance is security. It’s a way to protect your car, yourself, and other drivers while on the road. Auto insurance policy holders pay premiums and in return, the auto insurance company subsidizes expenses involved in an auto accident. It’s a way to protect drivers against costly car repair, hospital, and even legal bills as a result of an auto accident.

But there isn’t just one type of auto insurance available. Drivers have a few options they can choose from when selecting an auto insurance policy. Drivers can choose the level of coverage and liability of their policy. However, more liability and coverage means higher premiums. So how do you decide what policy to get?

What to Select

When shopping for auto insurance, you first need to establish what type of coverage the state requires you to have and what additional coverage you want. Different states have different auto insurance coverage laws, so be sure to check with the DMV or your auto insurance company about specific state requires. But, in addition to state required levels of coverage, you can always add additional coverage to your policy. Standard coverage options include medical coverage, collision, and comprehensive coverage. Liability coverage options include injury and property damage. If you want to protect yourself from paying high medical fees for someone you injured in a car accident, include injury liability to your policy. With most policies, you can even state the level of liability coverage, dictating how much your insurance company will cover and what your premiums will be.

What Not to Select

Some people see auto insurance as a burden. They think they’re perfect drivers and will never get in an auto accident. And if they do, it won’t be their fault and the driver at fault will pay for any necessary repairs and medical expenses. So, they opt for the most inexpensive or basic coverage possible. If you’re one of these “perfect drivers” who thinks this way, you’re not looking at the entire picture. What if you’re rear ended and injured by an uninsured driver who flees the scene and is never found? Now you’re stuck with medical and car repair expenses. If you had a policy that covered you in such an event, you wouldn’t be stuck with the entire bulk of the bills. Basic auto insurance only provides basic coverage; and the term “basic coverage” means different things to different insurance companies. If you’re shopping for auto insurance, don’t just ask for the most inexpensive and basic policy. Think about what you need to keep yourself safe on the road in any situation. You never know what will happen when you’re on the road.

Auto insurance is a basic necessity of life. If you want to keep yourself safe while on the road, you need to have proper auto insurance and a policy with the coverage and liability you need to protect yourself and your passengers in any situation.

When you have qualified money, retirement accounts, IRA, 401k, or 403b IRS Guidelines require they begin taking minimum distributions from these funds at age 70 1/2. Required Minimum Distribution (or RMD) is designed to help you calculate the proper minimum distribution based on life expectancy.

When Do They Start?
Tax laws require you to begin receiving minimum distributions from you qualified money by April 1 of the year after you reach age 70 1/2. For example, if 70 1/2 on May 1, 2005, you initial distribution must be taken by April 1, 2006 and be based on the Contract Value as of December 31 of that year. Future distributions must be taken by December 31 of each year.

Changes With Minimum Distribution
The U.S. Treasury Department changed RMD Guidelines effective April 2002. The new guidelines require less money to be distributed each year, which helps reduce the tax liability and allows more to be passed on to the your heirs. The heirs also have more flexibility, allowing them to “stretch” out minimum distributions of inherited qualified funds based on their life expectancy.

The new guidelines must be used, for retirees turning age 70 1/2 in 2002. The old or new guidelines may be used, if age 70 Ѕ prior to 2002. It is important to note that three guidelines are for the Minimum Required Distribution. You always have the option to take more than the minimum required.

RMD Calculation Methods
The new 2002 guidelines use one method and base minimum distributions on the life expectancy of the owner only, unless the sole beneficiary is a spouse who is more than 10 years younger. Life expectancy multiples were also expanded under the 2002 guidelines, allowing a smaller required distribution to be taken. In the early years of the clients required distribution to be taken. In the early years of the clients required minimum distributions, it is possible the Contract Value will continue to grow.

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