Archive for January, 2012
The Different Kinds Of Insurance
It can be pretty annoying having ads popping up everywhere on your computer or twenty emails being sent to you every day about insurance quotes. There are always going to be companies trying to convince you to switch except maybe the kind you already have.
Money may be tight for you but you may have every kind of benefits that you need, but the problem is that companies are always going to want you to switch to them. It especially is a problem if you are filling out quotes on different website because ads will be popping up all over your computer and they will send you a ton of emails per day.
Medical companies may send you quotes as well if you apply for certain places on the Internet. Once you apply, many people have no idea what they are getting into. They make it seem like they will send you a bunch of information in the mail so you can read over it. Instead they send you a ton of emails that start getting annoying after a while.
You may not have anything like that with dental companies because most employers offer this included with your salary, so they will take a certain amount of money out of your paycheck to pay for it. Medical companies are like that too, but some people still want to check out other options that leads them in frustration mode.
Being ambushed happens the most with vehicle companies. Not only will they email you and post up ads everywhere, but they will also call you and call you. It does get extremely annoying, and the worst part you may have to change your phone number and email address.
When you are renting an apartment, you should not be ambushed with all of these different quotes from different companies unless you visit their website. If that happens, you will get a great deal of calls and emails from the same company. What will happen is that you choose which company you want with the apartment you are living at. Once you make that decision, you are stuck to that company and no other companies will be able to find you and have you switch.
It does not cost anything to get a quote because getting a quote is exactly like getting information. Each website you go to will tell you how much it will cost for you to get your benefits. The reason why you may choose to receive so many quotes is that you are trying to figure out which one would be the cheapest and would have a lot to offer you.
If you are trying to get information about different types of insurance, you would not want to go apply at different companies to receive quotes because they will never stop calling you or emailing you until you tell them you do not want to be bothered by this and have them remove your name and number from each company.
Unit Linked Insurance Plans
Higher the rate of inflation, lesser is the value of money. This is a thumb rule to be kept in mind while making any long-term investment. Generally, at the time of making the investment, the return promised at maturity, usually 10-20 years, looks attractive. But when the realized amount is received on the maturity date, its value normally gets reduced to peanuts. This is because the rate of return could not match to the rate of rising inflation and other economic variables.
To overcome such glaring gaps, a Unit Linked Insurance Plan (ULIP) is introduced that help investors to get a fair return on their investments. It is a type of an insurance policy where the value of the policy changes with the market trends. It is basically a combination of an insurance policy and a mutual fund aimed at providing both flexibility and stability for the investment. In simple words, it can be said that the returns are market-linked in a ULIP.
In a ULIP, the policy taker receives a certain number of units, according to the amount of investment he wishes to make, at their existing net asset value (NAV). The amount invested in the plan is further re-invested in different portfolios like that of stocks, debentures, futures, etc. Therefore, as the value of the portfolio changes, the NAV varies accordingly. For instance, in a bullish market, the NAV will increase thereby increasing the value of the units and the overall ULIP.
ULIPs are ideal for investors who prefer secured investments but are ready to take a small degree of risk for better returns. Just like in any pure life insurance contract¸ the money is paid to the beneficiary in the event of death of the policyholder. Similarly, in a ULIP, the money is benefits of the plan are extended to the family or other beneficiaries in case of the unfortunate happening.
A wide range of ULIPs, with different features and benefits, are offered by almost all the insurance companies. You can choose a plan depending upon the desired investment amount, tenure, and the expected return. The companies have a team of professionals who can visit you personally and explain the benefits of different policies.
You can also refer to the websites of these companies to get a fair idea about the current policies. Apart from this, you can use an investment calculator, available on most of the investment websites, to calculate the expected return amount.
Why You Need Income Protection Insurance
With predictions of a second global financial crisis making headlines, the number of people seeking income protection insurance in case of unemployment has risen considerably. Credit rating agencies are forewarning about a bigger financial crisis which is expected to have a harder and deeper impact than the previous one especially on Asia and Australia. As a result, the fear of losing their regular income is haunting both workers and businessmen.
Income Protection Insurance: Features And Benefits
It comes to the aid of workers who are unable to earn their regular income due to illness, accidents or injuries. In general, people depend on their income to meet regular financial needs except for the rich upper class. The sudden loss of regular income can lead to a financial crisis, with devastating effects on their lifestyle.
Income protection insurance covers up to seventy five percent of income, in case a person is incapable of earning regular wages. To claim the benefits, the policy holders will have to prove that they are incapacitated and unable to perform an occupation that is suited to their educational and training level. The benefit is paid after a deferred period, the time between the claim and actual commencement of payment.
Income protection insurance typically covers:
* Mortgage payment
* Credit card payment
* Payment of bills
* Day to day living expenses
* Medical and rehabilitation costs
* Maintenance costs for businesses
The insurance companies tailor the policies to meet the specific risk profiles based on the occupation. Income protection policies are able to meet the specific needs of white collar workers, blue collar workers and self employed people.
How Income Protection Insurance Can Help during Global Financial Crisis:
Generally income protection insurance does not cover unemployment due to redundancy but it’s policies are flexible and can be customized to meet the current crisis situation and needs.
With the predictions of a second global financial crisis, the threat of unemployment is looming large which has led to surge in inquiries about income protection in case of unemployment due to redundancy. To meet the crisis, insurance companies have come up with policies to meet the specific need of the current financial situation. On an average, a policy holder pays approximately two percent of their annual income as premium for the policy. For a higher premium, a worker can get it which will cover involuntary unemployment, lying to rest the looming fear of loss of income due to recession.
How To Choose The Perfect Policy
With wide array of policies available for different types of income protection, the task of choosing the right policy is tough. Every policy will have different terms and conditions for the claims, which if overlooked can lead to loss of requisite coverage. The premium charged for this kind of insurance will depend on several factors like:
* Age
* Gender
* Pre-existing health conditions
* Addictive habits
* Deferred period
* Benefit period
* Additional features of the policy
It is sensible to visit a reliable website which provides information on income protection coverage available, premium rates and deferred period of the policies. The online calculators available on the websites can help you find the best suited policy for a specific income type, based on the information you provide. Insurance companies also provide free insurance quotes to help customers make the right choice.
It is sensible to protect yourself from the upheavals caused by the global financial crisis with comprehensive income protection insurance which is tailored to suit the specific income group and current financial situation.