HOW TO BUY INSURANCE?
People are always asking different questions about insurance.
Well, the question we’re going to answer is how to buy insurance?
The best way to buy insurance is to take a moment with an insurance professional that specializes in that particular type of insurance.
Sit down with independent brokers because they represent several companies for whatever particular type of insurance that you’re looking for.
Independent brokers are opposed to an insurance agent who represents only one company and would only be able to offer you products and services from that particular company.
That being said, if there is a particular company that you’re interested in, and there’s an agent that works for that particular company, feel free to sit down with that agent as well.
Now, a good agent will ask you a lot of questions.
Whат he or she actually is trying to do is to get a good picture of your particular situation.
So, always be open and honest and be as detailed as possible.
Because the more information you give that agent – the better they’re going to be able to help you.
Now, if you’re completely unfamiliar with the type of insurance that you feel you need, you might want to sit down with two or three different agents.
If you sit down with two or three different agents – you just might get to three different solutions.
Then you could pick the agent that you’re most comfortable with.
AUTO INSURANCE: HOW TO BUY RENTAL CAR INSURANCE?
So, how to buy rental car insurance?
This may be one of the most asked questions on a personal insurance level in all cases.
Most important, your insurance that you have, your personal insurance, will cover a big part of the rental car scenario.
So, basically, liability insurance you own, transfers to that rented motor vehicle.
It can be strongly recommended you do not buy liability coverage on rental motor vehicles, since your coverage with no insurance deductible on liability carries entirely over.
Just be sure that you have the insurance card as well as your insurance information to provide to the car rental company when you are there, and also have it always with you.
Again, that’s the liability part only.
You have coverage on all vehicles that you’re driving that are rentals with that liability coverage.
The problem will come in with comprehensive accident, usually known as “physical damage”.
So, when you’re looking down that car rental contact form and you find “physical damage”, that may be the moment where you would like to start paying attention.
This is where I recommend you do buy insurance called “comprehensive situation” from the rental car company.
Primary, there is no need to deal with any kind of deductibles in that particular situation.
With your personal insurance even though it does carry over to rental cars you, might have a deductible, and when you’re on vacation, that can become an issue.
Also, there are other problems to deal with that the rental company may have.
The most important is “loss of use”.
If you get that vehicle damaged, especially if it’s your fault and can’t use it, they can actually come back against you for the days that they didn’t have use.
So, think if you get into it into an accident and it causes extensive damage, and they can’t use that vehicle for a week while it’s getting fixed, they may be able to come back after you under “loss of use”.
The other problem is something called “diminution of value”.
What is “diminution of value”?
Well, here’s what it is.
Let’s say you have some brand-new motor vehicle that you’re renting. When it gets damaged, all of a sudden what is actually owed on it as well as the value is changed, and this difference may come back on you.
As you sign off and take their full comprehensive insurance coverage on physical damage, which will save you from all that.
You can drive the vehicle with full confidence that you may just return it just how it was.
Any scratch, ding, mark or anything else – no problem, it’s taken care of.
So, it is well worth the cost of and that’s well worth the investment.
You can drive that car knowing with full peace of mind that you don’t have any worries.
So again, let review what we just said.
Liability coverage – don’t buy it!
Bring your auto ID card and the auto information from your policy, keep it with you at all times, but do buy insurance for “full comprehensive physical damage”.
In the end, it will be money well spent.
LIFE INSURANCE: HOW TO BUY A TERM LIFE INSURANCE POLICY?
Let’s talk about how you go about buying term life insurance.
The first thing you need to do is to start with getting a quote.
Now, you can do this in one of two ways.
You can go online and use some of the many varied quote systems that are available, and search through different companies and find a quote that you’re comfortable with.
But you can also simply find a life insurance agent.
There is no difference in premium between doing the quote online and going direct to the insurance company, or going through an agent.
So, once you get your quote, you’ve determined now which type of term life you want to buy, and what company you want to buy with.
The next step is to get started filling out an application.
With the application is going to ask you for a lot of personal information.
Of course, your name, birthdays, social security number, where you were born, where you work, and it’s also going to ask for a very thorough medical history over the last 10 years.
So, be prepared to report every time you’ve seen a doctor, any surgeries or hospitalizations that you’ve had and so on, during usually a ten year period of time.
Finally, they’re going to ask for a family history.
They’re going to ask about your parents if they’re alive, how their health is, if they’ve died what age they died of and what did they die from.
Lastly, you’re going to need to typically complete a blood at work and a urinalysis.
You will find out while you are applying how to go about doing that, and of course in the blood work they’ll be checking for AIDS, other sexually transmitted diseases, drug use, nicotine use, alcohol use, etc.
Once you’ve completed that application process and done whatever other requirements (like the blood and urine) that are required by the insurance company, the next step is up to the insurance company.
They’ll review your information, they might ask to get some of the medical records from your doctors and they’ll await the results of your blood work.
At that point the insurance company will come back to you and make an offer.
Hopefully the offer is exactly what you applied for, but sometimes they’ll offer you at a little higher rate or sometimes a little better rate that what you applied for.
Once you get your offer, simply paying the premium and usually turning in a policy delivery receipt completes the process, and you’re fully insured.
So, I hope that answers your question about the process to buy term life insurance.
HOME INSURANCE: TIPS FOR BUYING HOMEOWNER’S INSURANCE
Now, we’re going to talk about tips for buying homeowners insurance.
Homeowners insurance can be a very expensive proposition, but of course, it’s essential.
It can protect your home against fire, flood and even earthquake.
Few of us can afford to build our homes from scratch and so earthquake is essential.
There are several ways to reduce your homeowners insurance costs.
First, maintain a security system and smoke alarm in your home.
A burglar alarm can help lower your annual premium by up to 10 percent.
Usually it’s required that it be monitored by a central station, but it is good protection, especially in these days of tough economic times.
Smoke alarms are standard in most modern homes these days, but installing them in an older home can save you 10 percent or more on your insurance bill.
The second way to lower your insurance bill is to raise your deductible.
The higher your deductible – the lower your annual premium.
You will be responsible for damage up to the cost of your deductible, and your lender may limit the amount of that deductible.
Third look for multi-policy discounts.
Many insurance companies give a discount may be up 10 percent or more if you have more than one policy with them.
This could be an auto or health policy in addition to your homeowners insurance.
The fourth way is a little off the wall, but if you pay off your mortgage, your homeowners insurance will go down.
This is because companies assume that if you own your home outright, you’ll take a better care of it.
The fifth way to lower your home insurance bill is a senior discount.
If you’re over 50 and are willing to admit it, you might be eligible for a discount.
Insurance companies have different names for age preference policies.
They’re often called everything from “senior discounts” to “mature policy discounts”.
If you qualify, why not go for it!?
The sixth way to reduce your homeowners insurance bill is to regularly review and compare your policy.
At least once a year compare your policy to other insurance policies available on the market.
You should also review your existing policy and note any changes that could lower your premiums.
Also make sure that you have all the coverage that you need.
Homeowners insurance is a necessity.
While there are many ways to save money, you should shop wisely.
There are some features that homeowners shouldn’t skimp on when you’re buying homeowners insurance.
You should know the difference, and then shop around.
LIFE INSURANCE: HOW TO BUY A GROUP LIFE INSURANCE POLICY?
Now, we’re going to talk about purchasing a group life insurance policy.
If you’re looking at purchasing a group life insurance policy, you want to add an additional benefit to those who work for you.
This is a great benefit for employee retention, and just in case something does happen to one of your employees.
When you purchase a group life insurance policy you’re going to want to look at the group as a whole, and the underwriters and insurance companies are going to do just that.
They’re going to rate the group based on the health, the age and the income of the group you’re trying to ensure.
Some companies do it differently depending on the type of insurance they want to provide.
Some companies do a straight similar benefit of a hundred thousand dollars death benefit for each employee no matter what.
Some companies also like to do a two times whatever the salary is, and that will equal the death benefit.
So, if that employee earns forty thousand dollars a year, the death benefit for them is going to be eighty thousand dollars.
You’re also going to want to look at if you want to ensure any family members of the employees that work for you, what kind of benefit you’re going to give them and what’s it going to cost to do so.
Typically, it’s not a large cost to add the family members or the spouse typically of whoever it is you’re trying to ensure.
If you have any questions on getting group life insurance or need to purchase group life insurance, it’s best to talk about the details with an agent that specializes in that particular type of insurance.
That is the best way how you will get all the necessary information that you need.
COMMERCIAL INSURANCE: HOW TO BUY COMMERCIAL GENERAL LIABILITY INSURANCE
Now, let discuss how to buy general liability insurance.
First, you may be required to buy a liability insurance as part of a job.
If you’re a sole proprietor, or if you’re a business (a small business especially), as you start dealing with other businesses in many cases they’re going to require you to have liability coverage in order to complete your contract or do business with you.
To purchase insurance you may be starting with liability because you have to, but what you want to make sure you do is that you line up your insurance with your exposure, and that you’re not just purchasing one portion because it’s required by a job.
You may find out after you have a loss that you should have gotten some other types of insurance as well, but all you asked for was liability coverage.
So, talk with an independent agent, they can help you.
Now, on that note, who do you buy liability insurance from?
Well, you can buy from different types of agents.
An independent agent is an agent who represents multiple insurance companies, as opposed to a captive agent, like a State Farm or All State or Farm Bureau agent, who only represents the one company that they directly work for.
So, an independent agent in most cases is going to have a better idea of your exposure and we’ll help you place your liability coverage with the appropriate company for your type of business.
Now, on top of that, how do you buy it?
Well, your liability insurance is going to be rated on exposure.
That exposure may be your payroll, it may be the square footage your building, it may be your gross sales for the year, gross receipts, income, or it may be units.
For example, a Church’s liability insurance will be rated on its square footage.
A contractor’s liability insurance, on the other hand, will be based entirely around payroll.
If you’re a contractor and you’re looking for liability coverage and you’re a sole proprietor with no employees, you’ll have a minimum payroll that they’ll use to develop your liability cost.
So, when you’re purchasing liability coverage I would encourage you to look for someone who understands your business and is a specialist.
Those folks who best understand what you do, as an agent will be able to properly ensure you.
Additionally, you may need to purchase excess liability also called “umbrella liability”, which is an additional limit above your per loss limit that will apply.
Briefly, per loss there’s two limits you want to pay attention to.
Usually, you’re going to see two limits on general liability insurance in most cases.
First, you have a “limit per loss”, and most insurance would be a million dollars per loss.
Second, you have a “limit per year”, and that would be considered an aggregate per year.
So, you have a “per loss” of a million, and let say your “per year” limit can be two million.
So, what’s the best way to buy insurance?
Well, sit down with an agent that specializes in that particular type of insurance!
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