Long-term care costs
The first thought to cross your mind when considering long–term care insurance (LTCI) is whether you really need it. If you’re thinking of waiting, then also bear in mind that time influences the cost. Simply stated, the more time you spend thinking, the more the cost of LTCI increases. Further, premiums are based on risk, so this means that the older you grow older, your premium rates will rise accordingly. Subsequently, the higher will be your total LTCI costs.
Long–term care insurance (LTCI) is an excellent option, if you have substantial property and possessions or savings you wish to leave to your family. Normally, people avail of private insurance to avoid being depleted financially by long–term care costs. But that is precisely what you might face with a long–term insurance policy. Consider the following for instance:
• The premiums are too high
• Premiums increase later on
• Unexpected out–of–pocket expenses not covered by the policy
• Suppose your policy lapses and don’t have non–forfeiture protection and you lose your benefits. Such protection, usually, costs more
Given below are some of the factors that play vital role in deciding long–term care insurance:
Individual Age. As a rule older people pay higher LTCI costs, because of the higher risk involved.
Individual Health. Normally, healthier have to pay lower LTCI rates. So, at the time of issuing your policy your health condition will be the chief deciding factor. This means, the more health problems you have, the more will LTCI cost you.
Elimination Period. LTCI rates are higher if your elimination period is shorter and vice versa.
Benefit Duration and Amount. To explain the relation between benefit amount and duration, take this example: If your benefit amount is supposed to be $100 per day for three years, your LTCI will cost less as compared to a benefit amount of $200 a day for a period of five years.
Other Factors. There are several other probable benefits that accrue to buying an LTCI policy. The more optional benefits you go in for the higher will be your LTCI cost.
Lastly, LTCI policy costs depend a lot on the type of care, individual factors, and the region where it is issued to the individual. So make sure to the seek advice of a financial advisor in order to select wisely. Most importantly, see that the insurance company you choose is reliable. Likewise, your agent is one who understands your individual needs and LTCI comprehensively, so he or she should be trustworthy too.
Disability insurance premiums
When its time to decide on disability insurance to buy, consideration of the rate of premium plays an important role. This decision can be quite difficult, bearing in mind the fact that some times the premium costs are very high and some times, they are quite low. It is worthwhile to understand the facts noted by the insurance Company for deciding on the premium amount. The information below will give you an insight into this matter.
Age: The most primary consideration is your age. Older you are, higher the premium rate. It is advisable therefore to get insured at a much younger age or rather as soon as you can pay the Insurance Company, with a lower premium and a much needed mental security.
Salary: Your pay packet also matter a lot. In case you draw a high salary and get disabled then Insurance Company has to pay you a high sum as compensation.
Profession: Its normal to understand that your premium rate will also depend upon the kind of risk involved in your profession. A high risk profession will have a high premium rate and a low risk profession will be charged a low premium rate.
Type of plan: From the different types of disability insurance plans listed hare, you can choose the one that suits you fine. Income Replacement insurance, Gainful Occupation coverage, Own–Occupation disability insurance and Residual disability insurance. No plan from here offers the same cover and do not have the same premium rates too! As general information it is worth knowing that Gainful Occupation coverage has lowest premium as against Own Occupation coverage disability, which has the highest.
Waiting Period: You are not covered by your disability insurance plan as soon as you register with it. There is a waiting period ranging from 7 to 763 days during which time coverage is not provided. In that case naturally you do not pay the premium
Coverage: Your rate of premium will also depend upon your age and the percentage of annual income you wish to cover. Most people cover themselves till the age of 65 and cover 60 percent of their gross annual income. Although you pay a high premium for this, it is advisable for you to take up the same as that will cover you for any disability definitely till you get your Social Security post retirement
You need to do some survey before you decide on what kind of a disability insurance plan should you buy. Basically, what you need to know is are the different types of diseases that are covered under this scheme. For every different type of disease there is a different type of cover. So to know the details of this, it is a good idea to ask your insurance agent or make a detailed study of these policies on your own.
Pregnancy: Normal pregnancy is usually covered under a short–term insurance plan. In case you are working, then your employer will provide you with this plan. Your HR people will be able to tell you the details of this. However, if your pregnancy turns out to be a difficult one, then ask for a long–term disability insurance cover to meet your requirements.
Cancer: This disease can put you off completely in relation to your daily routine as well as your usual earning activity. The treatment for cancer can be a long one, thus cancer is capable of creating a major deficit in your earnings. For this reason, it is better to ask for Long–term disability insurance cover, so that you can be much at peace during your recovery period.
Acquired Immune Deficiency Syndrome: Acquired Immune Deficiency Syndrome or better known as AIDS is yet another disease that can take a very long time for recovery. This also means that you will not be able to be fit enough to work or earn during this time. However, you can protect your interests by getting yourself a disability insurance cover for this period.
Mental Illness: Like physical illness and disability, mental illness too can be covered under disability insurance cover. What kind of mental disability is covered by your policy largely depends on the terms and conditions of your policy. In all probability, mental illness takes a very long period of recovery, which automatically translates into a loss of income. It is hence much better to buy a disability insurance before any kind of mental disability is observed. Understated one fact clearly, that no insurance company gives insurance to people who are already suffering from any disability of this kind.
Alcoholism and drug dependency: Remember that no insurance company will insure you for your drug or alcohol addiction. However, if you get addicted to drugs as a result of what you consumed during the course of some medical treatment, you can demand a financial cover from your insurance company.
The size of your business is immaterial; you definitely need to have the support of a business insurance plan in this uncertain age. Cautious as you may be, some things like theft, fire, damage to property and premises and legal hassles cannot really be avoided. In these situations, if you have insured your business, the insurance company will pay your bills for you. Moreover, the insurance company provides crucial financial support to your business when it is suffering losses.
‘Business Insurance’ is a vast term that encompasses all types of business insurances for different purposes. Given the multiple business insurances options that are available today, choosing the right business insurance plan for you can prove to be quite a painstaking task. It is of prime importance that you find a plan, which satisfies all your needs whereby providing adequate cover and yet, which does not make you spend most of your surplus on the premium.
Our website will give you all the necessary information for buying a business insurance plan. In fact, we have an exhaustive list of all the business insurance plans that are available in the market along with information on what each individual plan has to offer. Our tips will help you choose a good insurance agent and also give you some vital ideas on how to keep your business insurance costs to the minimum. Our website has even included the procedure that you will have to follow when you need to make your business insurance claim. Our real aim is to guide users like you while choosing an appropriate business insurance plan for your mushrooming business.
What is auto insurance?
According to law, every car owner must own some kind of auto insurance. It makes good sense, too. After all, accidents car thefts occur all the time. One needs coverage for such eventualities, especially when your own resources are not enough. An auto insurance policy is comprises six different kinds of coverage. While most states require you to buy some, not all of them are mandatory.
Auto insurance is a legal contract by which an insurance company offers you protective coverage. A suitable policy will compensate you in the event of loss incurred in an accident, or in case of car theft. In return, all you have to do is pay a certain fixed premium. So long as you pay your premiums on time, you are covered to the extent mentioned in the policy. The policy clearly stipulates in how many ways you are covered. An auto insurance policy covers its owner, the owner’s car and the other party that suffers damage. In certain cases, it pays your medical bills and those of the other party involved, even though you may be the offender. In other cases, it will also pay your legal expenses.
Normally auto insurance policies are valid for six months to twelve months. Remember, you are never safe on the roads without auto insurance. Besides, it is a crime to drive a car without it. This makes auto insurance a very sensible investment