Insurance policies work by taking premiums from customers in exchange for baring the risk of certain costly events occurring. For example, if there is one fire in your town each month, everyone could just sit tight and hope their house doesn’t burn down next, or could pitch in and pay an insurance premium each month and this is then used to rebuild the house that burns down. Very simply this is how insurance works. It is a method of spreading a risk over a far wider area, so that it will not be as devastating as if it was concentrated solely on the person who experiences the loss.
Exclusion Clauses
There are a few problems with this however and they attract much criticism. One criticism is that by taking on the risk for people, insurance makes people take greater risks than they otherwise would. For example, if you know your home contents are insured against burglary, then you may not be as careful about locking the doors and windows every time you leave the house. Or if your bike is insured, you may not bother to lock it as much as if it wasn’t insured. In the insurance industry, this problem is known as the moral hazard.
Insurance companies protect themselves against this by inserting exclusion clauses into their contracts, which remove their obligation to pay out if the insured performs or fails to perform certain stated actions. They might for instance require that you fit smoke detectors, or use good locks on your doors, or other things that will reduce the risk of the insured against event occurring.
Too Complex
There are also certain risks that you are not allowed to insure against in most countries. This is first of all because it would be too difficult for the insurance companies to quantify, but mostly it’s because they are risks that governments want the person at risk to bare himself or herself. They generally apply to multinational companies.
There is also the criticism that insurance policies are far too complex for the vast majority of consumers to understand. It is simply unreasonable to expect the customer to understand lengthy documents that have been drafted by not one, but usually teams of specialised lawyers. This can lead to consumers being misled or buying insurance policies on unfavourable terms. To get around this, most countries regulate the content of insurance contracts to ensure that they remain fair to consumers.
There is also the option of using the services of an insurance broker to shop the market for you.
Thursday, December 3, 2009
Contents Insurance – Check Your Cover
You've probably got contents insurance for your belongings but are you aware just how easy it is to fall behind in calculating the value of them?
What do you imagine the average contents of a family home are worth - £25,000 or £30,000? In fact this figure, for a typical home, is estimated to be over £45,000. Apart from your “moveable items” of carpets, furniture, curtains, it's probable that electrical goods purchased over the last few years explain the sudden rise. It's not unusual to have three or four mobile phones, a couple of computers, possibly also a laptop. Then there are the TV's. Apart form the large family wide screen digital HD ready, singing and dancing set, there's probably a another one in the kitchen and two or three others in the bedrooms, not to mention DVD and video recorders. Probably the children have iPods, gameboys and whatever else is “in” at present. Don't forget your CD collection – Norwich Union values these at £10 each and DVD's.
Apart from the risk of damage, all the above items are very appealing to the thief, being easy to handle and finding a ready market. Don't forget the garden, the mowers and garden machinery, contents of the shed and garage, garden furniture and even your tubs and hanging baskets. The value of plants can add up too!
Should you need to make a claim, it's important that you're not under insured. If the insurance company judges that you don't have adequate insurance, the claim will not be fully paid. This means that if you have insured your contents for, say, £20,000 and your insurance company considers there would be a value of £30,000 to replace them, then there would be a shortfall of £10,000.
Insurers handle things in different ways. For example Norwich Union Direct, one of the major insurers, will pay out up to the amount for which you're covered. It's left up to you to fund the difference. More Than tells us that their policy on underinsured claims is to reduce them by up to 20%. In fact More
Than are taking action to ensure that clients are more up to date with their cover and so have recently increased the this for all their clients, by 25%.
These increases will apply on the clients' next renewal dates. No doubt more insurance companies will look at following suit soon.
Whilst you're thinking of re-assessment, maybe it's time to check the current figures on your buildings insurance. As well as the house, garage and outbuildings, you may have fixed items such as lighting, hot tubs and permanent garden features. These are covered by your buildings insurance, not your contents. Your insurer will normally work out a quotation based on the number of bedrooms, etc., and your postcode. The insurable figure will be the cost demolition and clearing of the site and re-building your home on the present site, of course.
To help you re-consider the value of your belongings and for additional advice there's a handy checklist for home owners on the Association of British Insurers, www.abi.org.uk
There are a large number of insurance companies handling both contents and building insurance and, as always, it pays to shop around.
What do you imagine the average contents of a family home are worth - £25,000 or £30,000? In fact this figure, for a typical home, is estimated to be over £45,000. Apart from your “moveable items” of carpets, furniture, curtains, it's probable that electrical goods purchased over the last few years explain the sudden rise. It's not unusual to have three or four mobile phones, a couple of computers, possibly also a laptop. Then there are the TV's. Apart form the large family wide screen digital HD ready, singing and dancing set, there's probably a another one in the kitchen and two or three others in the bedrooms, not to mention DVD and video recorders. Probably the children have iPods, gameboys and whatever else is “in” at present. Don't forget your CD collection – Norwich Union values these at £10 each and DVD's.
Apart from the risk of damage, all the above items are very appealing to the thief, being easy to handle and finding a ready market. Don't forget the garden, the mowers and garden machinery, contents of the shed and garage, garden furniture and even your tubs and hanging baskets. The value of plants can add up too!
Should you need to make a claim, it's important that you're not under insured. If the insurance company judges that you don't have adequate insurance, the claim will not be fully paid. This means that if you have insured your contents for, say, £20,000 and your insurance company considers there would be a value of £30,000 to replace them, then there would be a shortfall of £10,000.
Insurers handle things in different ways. For example Norwich Union Direct, one of the major insurers, will pay out up to the amount for which you're covered. It's left up to you to fund the difference. More Than tells us that their policy on underinsured claims is to reduce them by up to 20%. In fact More
Than are taking action to ensure that clients are more up to date with their cover and so have recently increased the this for all their clients, by 25%.
These increases will apply on the clients' next renewal dates. No doubt more insurance companies will look at following suit soon.
Whilst you're thinking of re-assessment, maybe it's time to check the current figures on your buildings insurance. As well as the house, garage and outbuildings, you may have fixed items such as lighting, hot tubs and permanent garden features. These are covered by your buildings insurance, not your contents. Your insurer will normally work out a quotation based on the number of bedrooms, etc., and your postcode. The insurable figure will be the cost demolition and clearing of the site and re-building your home on the present site, of course.
To help you re-consider the value of your belongings and for additional advice there's a handy checklist for home owners on the Association of British Insurers, www.abi.org.uk
There are a large number of insurance companies handling both contents and building insurance and, as always, it pays to shop around.
Tuesday, November 24, 2009
Gerber Life Accident Protection Plan
How would the people who count on you be protected if an accident suddenly took you out of their lives?
Is this an Important Question to Ask?
Yes, Gerber Life Insurance has an answer to this question. Gerber Life Accident Protection Insurance plan provides an accidental death coverage for the whole 24 hours in a day for your entire life period. As usual in all insurance policies, this accidental death coverage protects your family and the loved one's from the financial stress.
Gerber Life accident protection insurance policy is pre-approved for those in the age groups of 19 to 69 years and can have a coverage amount upto $100000. No health questions, no physical examinations, no regard to your occupation or anything else.
Gerber Life assures guaranteed coverge to your spouse upto a combined total of $200000 coverage for both of you. No waiting period and the accident death coverage starts as soon as the first premium is paid.
With Gerber Life you get everything you want from an insurance company: experience, trust, reliability and service.
It costs nothing to apply and you have 30 days to review the plan before the first premium is due!
Gerber Life Burial Expense Life Insurance Policy
During the life time you can borrow on the cash value of this Insurance Policy bearing a very less interest rate of 8%.
Graded Death benefit limitation is for the first two years of inception of this Insurance policy.
- Death due to illness within the first two years fetches a full refund of all premiums paid plus 10%.
- Death due to accident within the first two years fetches a full face amount.
- Death due to suicide within the first two years only a refund of all paid premiums.
*Federal Trade Commission. "Funerals: A Consumer Guide." June 2000, Adjusted using the Bureau of Labor Statistics CPI for 2005.
In the following states, FL, LA, MD, MO, MT, NH, NJ, OR, SC, WV, our Guaranteed Life policy is only available by phone at 1-800-704-2180. This policy is not available in AR, MA, MN, PA, WA, Northwest Territories, Nunavut, Quebec and Yukon.
Gerber Life Whole Life Plan
Gerber Life Whole Life Insurance Plan helps you to protect the financial future of your family from mishaps / hazards that may occur in your life.
Gerber Life Whole Life Insurance plan provides many advantages.
- Whole Life Insurance Policy offers coverage amounts ranging from $25000 to $150000 in multiples of $25000.
- Premium is locked with the rates at which coverage is insured for your whole life.
- A guaranteed 'cash value' when you need some urgent cash.
- Application can be made just answering a few questions regarding your health.
- No medical exam for those in age groups between 18 and 50 years with average health.
- Medical exam fee paid for those above 51 years and insuring for more than $100000.
- Stop paying premiums with 'Waiver of Premium Rider' for total disability before 60 years continuing beyond 6 months upto the age of 60 years....and cash value keeps increasing as if you have paid regular premiums thus securing your family absolutely no risk.
Saturday, November 21, 2009
Gerber Life-Child Whole Life Insurance Policy-The Grow Up Plan
The Grow up life insurance plan from Gerber Life Insurance covers the entire life of the children aged between 14 days through 14 years. In short words, it is lifetime advantageous Child Life Insurance.
The Gerber Child Whole Life Insurance Policy starts from $5000 to $50000 to protect your child. The childhood premium as low as 11 cents a day is locked for the entire life of the child, even when the insured child opts for an adult size coverage.
Child Whole Life Insurance coverage under this Gerber Grow up plan automatically doubles at the age of 18 years of the insured child.
The most advantageous part of the Grow up plan is that it accumulates cash value as long as premium payments are made. On attaining the age of 25 years, the cash value of the Gerber Life Insurance Child Whole Life Grow Up plan equates to 100% of the premiums paid.
Get A Quote or Apply Now!
Gerber Life Insurance - The Start Smart College Plan
The Start Smart College Plan is a risk-free and an easy way for you to secure College Education to your child. It is an endowment life insurance policy. You can plan your affordability of amounts that can be spared for your child's education every month and Gerber Life provides you the guaranteed benefit payments ranging between $10000 to $150000.
In fact Start Smart College plan is a budget plan that eases worries to make your child secure a perfect college education that's been a dream of you.
The standard premium for this Smart College plan starts from just a dollar a day. Life insurance protects your child with complete benefits if something is going to happen to you before the maturity of the Start Smart College plan.
The cash value of this Smart College Plan policy from Gerber Life Insurance increases throughout the policy term as long as there is continuous payment of premiums. On the date of maturity, the complete benefit payment shall always be greater than the premiums paid by you.Did You Know?
- The average cost per year at a 4-year public college is about $14,000 for in-state students and about $25,000 for out-of-state students.
- The average cost per year at a 4-year private college is about $34,000.
- College costs have typically risen 4-6% every year.
- Financial aid and scholarships cannot be expected to cover the full cost of college.
Source: The College Board, Trends in College Pricing 2008. Prices are for 2008-09 and include tuition, fees, room and board.
Get a Quote or Apply Now
Gerber Life - Term Life Insurance
Term Life Insurance Policy from Gerber Life Insurance is the most reliable and affordable Insurance plan that protects the interests of future financial status of your family.
The Gerber Life Term Life Insurance policy covers between $25000 to $150000 with plan terms varying from 10, 15, 20 or 30 years. Choice of policy coverage and term for the Term Life Insurance plan is flexible and fits your budget. Term Life Insurance is for adults in the age range between 18 and 60 years. No medical examination is required for applying to this Gerber Life Term Life Insurance plan.
Unlike in other types of Term Coverage policies, your premium never raises during the term of Term Life Insurance policy.
With Gerber Life Term Life Insurance plan you've already planned for the future security of your loved ones and thus you'll enjoy greater peace of mind today.
Get a quote or apply now!
Find Your Gerber Life Insurance Plan
Gerber life is the leading Insurance company that provide various insurance products having a wide protection coverage.
Joining Gerber Life Insurance Plan means that you have taken complete care of your loved and dear ones.
Joining Gerber Life Insurance Plan means that you have taken complete care of your loved and dear ones.
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