Hartford Insurance

Comparing All Types of Insurance

admin — Thu, 19 Nov 2009 04:55:27 +0000

Insurance is a confusing business. Odd terminology, fine print and high pressure tactics may keep you from really researching and comparing your options. While quick insurance shopping may get you a policy, it probably wont get you the right insurance policy.

There are many types of insurance out there and countless policies offered for each insurance type. Educating yourself about how the insurance system works should be your first step before choosing a policy.

It may surprise you to know that 65% of South Africans have no auto insurance at all. When we take the incidents of accidents and road injuries, this shocks us.

Auto cover comes in three forms. Third party is the minimum coverage and protects you if you injure someone or damage someone else’s property in an auto accident. Third Party Fire and Theft includes cover provided under Third Party and adds protection for damage caused by fire, theft or attempted theft. Comprehensive coverage adds to this by providing protection for your vehicle in an accident that is your fault.

To ensure that you aren’t paying too much for expensive auto insurance, be sure to compare prices and quotes. To reduce your costs, try negotiating with the insurance companies for a lower rate. Also, think about asking for higher excesses, as well as increasing security measures to further reduce your premiums.

Term life insurance is the least expensive option and provides cover for a specified amount of time or can be linked to specific debt obligations. Term life is beneficial for families that may have a large amount of debt that will be paid off by the end of the policy’s term.

Whole life insurance is permanent insurance that remains in effect as long as the premiums are up to date. The policy does not need to be renewed and the premiums remain the same throughout the life of the policy. It provides your beneficiaries a lump sum at your death regardless of when that occurs.

Universal life insurance cover is structured the same way as whole life in that it is permanent insurance with level premiums. In addition, it adds provides financial products such as a savings plan, investments and the ability to add a person to the policy. It is the most expensive life insurance option due to its flexibility.

Your life changes and it is always beneficial to check on the current status of your life insurance to make sure it is still meeting your needs.

Your options for homeowners insurance have expanded thanks to the National Credit Act. Previously, borrowers had to purchase their cover from the bank that financed their loan. Now, you can shop and choose the cover that fits your needs and budget. You’ll be required to cede the policy to your lender so that your policy can pay your bank directly.

When shopping for insurance, remember the old adage that the cheapest policy isn’t always the best. For example, a bicycle costs less than a car but it will not serve the same transportation needs. Hence, you need to find an affordable insurance policy that meets your particular coverage concerns.

By: Graham McKenzie

Life Insurance Settlement Scams

admin — Wed, 18 Nov 2009 22:07:42 +0000

Families opt for a life insurance policy to provide security against calamities such as death, fire, or accidents. Such deals prove to be a safe way of protecting individuals by agreeing upon a certain amount prefixed by the insurer that would be paid in case of such unfortunate events. Insurance companies assist bereaved families by providing moral, financial, and emotional support. Life insurance is purchased by working employees, and by senior citizens too.

It is possible that a policyholder may not be able to pay the premium fixed due to financial constraints. In this case he would be forced to sell his policies to companies for cash back at a fixed percentage. Some companies may not offer the amount expected by a policyholder. Other companies may agree to pay face value of the policy. An application form has to be filled that includes the medical and policy information to dissolve such a policy and claim compensation.

At times, major companies that invest in buying policies at a lower rate than the purchase value may acquire large sums offered by insurance companies at the time of maturity. Various lenders or brokers, who bid for higher rates, may pay the customers only half the value acquired.

Companies that buy such life insurance settlement policies are major investors who fund many transactions every year for a considerable amount of profit. These policies are held as portfolio assets rather than selling them to outside investors. Such policies are purchased from holders who are in desperate need of money. People may tend to sell their policies to companies without knowing if the company is legally recognized or not.

A policyholder has to consider all such drawbacks and avoid selling them to fraudulent companies who may reap profits over such deals and disappear.

Hence, before selling a policy, individuals are advised to consult lawyers who guide these people. It may prevent them from scams. Selling a life insurance settlement involves a lot of trust in the company. Hence, people need to read the prospect of the companies before taking such a major decision.

By: Ross Bainbridge

What To Look For In A Good Business Insurance Coverage Policy

admin — Wed, 18 Nov 2009 14:50:08 +0000

Businesses need insurance to ensure it will be able to operate in case any kind of disaster strikes, otherwise all the hard work, time money and effort put into running a business will be wasted. The first step taken to ensure continuity of a business is through insurance. A lot of care should be taken in selecting the right agent, the right carrier and getting the best-suited policy that provides adequate coverage.

Things to Look While Shopping For Business Insurance Coverage:

Choose a package policy rather than going for several separate policies. Try and obtain low rates by opting for a policy offered by a group or professional organization. Make sure the policies do not overlap or duplicate.

Be certain to have a building (building and permanently installed equipments as well as other fixtures) and content (all property in the building used by the business) coverage policy as it will insure the premise against fire, hurricane, flood, earthquakes etc. General liability coverage that protects you against suits filed by clients, customers, delivery people etc. who were injured or suffered property damage while conducting your business is a must. Be certain to include bodily injury liability, property damage liability, personal injury liability, and advertising liability coverage and a few essential things to look while shopping for a business insurance coverage. Auto liability insurance will be necessary if your company uses vehicles to transport goods or people. It will be advisable to go for a workers compensation insurance as well as Employee practice liability insurance as these are extremely necessary in the current environment where suing the employer has become a trend! Seeking business interruption insurance may also be helpful as in case of a fire or damage to the property the insurance will cover the expenses {rent, payroll, taxes etc.} until the premise is repaired and ready for use. Make sure that an adequate number of days are allotted. Go for a policy that will compensate you for decreased income on reopening. Professional liability insurance will be useful too with a virus liability endorsement in case you are in the business of storing sensitive data on computers servers etc and one of the essential things to look while shopping for a business insurance coverage. Adequate medical and health insurance for your employees should be provided. Having a Director & Officer policy will be useful too.

Hire a good agent who understands the needs of your business and who will guide you to select the best possible package at the lowest rates available. Adequately protect your company against unforeseen disasters making sure your business will continue its operation no matter what.
There are a few firms that offer their help to make the task of running a business easier for new entrepreneurs.

By: Alexander Gordon

Finding Affordable Insurance Online is Easy

admin — Tue, 17 Nov 2009 23:39:04 +0000

Insurance is one of the things that so many people think is a waste of time. Most people say that they do not like to waste money on something like insurance, but if they knew the truth, they would see how important insurance really is, and they would go head and find affordable insurance online.

If you do not think that you need insurance, then you will have tot think again, because there must be one type of insurance that you need, and besides, we all need car insurance, because if you do not have it and you get into an accident, you could get fined big time.

It is not legal for you to own a car and not have insurance for that car, you need to have car insurance if you own a car. However that is not the only type of insurance you need, what about medical insurance. If this is something that you have not thought of yet, best you get thinking.

What if one day you are leaving your home and you get mugged. During the mugging you get injured really badly. You need to be taken to hospital, and when you wake up in hospital, what do you think is going to be the first thing on your mind?

That is right; you will try to figure out how you are going to pay for the medical bills. Now, if you have medical insurance, you will not have to think of that, because you would know that it will be sorted out.

You have to remember that you do not have to have all the different type of insurance out there, but it is up to you to figure out which ones you will need in your life, because it is your life you are looking after.

By: Ted Kripps

Understanding the Principles of Insurance

admin — Tue, 17 Nov 2009 20:51:32 +0000

The seven Principles of insurance state the different groups that are insurable. They are classified both for the sake of organization, and so that insurance companies can decide which area of expertise they would like to specialize in as an organization.

The first of the Principles of insurance is dealing with a large amount of the same type of policy. This is commonly thought of in auto insurance. Over a hundred million drivers in the United States alone carry auto insurance, and they do so because the companies have discovered the way to balance the risk with the proper funds.

Five of the seven principles involve loss categories. Definite loss deals with loss that is a guarantee, such as life insurance. Accidental loss would be associated with renter’s or fire insurance. There is not a guarantee of theft or fire, so each individual case is evaluated before coverage is assigned. Large loss deals with coverages of items that are of great value to the buyer. Great care must be placed in these policies, as the amount of capital needed to replenish these losses may be great.

The fifth loss principle deals with limiting the amount of loss from a catastrophe, such as an act of God. Acts of God include floods, hurricanes, and many other meteorological events. The insurance company takes care to write into the policy that a total amount of capital can be distributed based on the number of policy holders affected. For instance, if a thousand people with the same coverage are hit by a tornado, the company can limit their risk through this principle.

The final principle is the affordable premium. A balance must be struck between the client and the company as to what is a sensible amount to pay for the term of the policy. This is crucial to the success of the company, and is assessed at the outlook of the policy.

These Principles of insurance are the foundation of a healthy insurance group. Using them is the key to offering smart insurance and making a sensible profit.

By: Phil Sims

Accounting For Insurance Claim Settlements

admin — Tue, 17 Nov 2009 17:11:39 +0000

Insurance is a necessity in any business. Businesses cover themselves against losses such as fire, theft and unexpected natural disasters. It is with the bookkeeping or accounting that owners get it wrong.

On successful insurance claims, a payment is normally made to the insured. My experience has led me to believe that small businesses have no clue, as to how, to account for insurance settlements. Most businesses reflect the payment as income.

Not only would this be deceptive but also violates International Accounting Standards. Since the transaction has everything to do with assets and nothing to do with income, it should be adjusted against assets. Erroneous accounting for assets might prejudice the business further in future, if similar insurance claims are made.

Insurance companies settle claims on assets, on its book value and not its costs. (And yet the asset was insured on its cost at date of purchase). Whereas this principle might vary from country to country, book value is widely accepted as the norm. Since most small businesses fail to maintain proper fixed assets registers, insurance companies perform “desk top valuations”, or make an “estimate”, on the book value, mostly much lower than its “real” book value. Without proper records, the claimant cannot debunk the assessor’s final conclusions.

Before I loose you in a sea of confusion, let me elaborate. If an asset is on your books at least, without the asset register, but you have no purchase date, and this asset is lost due to theft, no accurate wear and tear can be furnished. Furthermore, if a claim is settled, and reflects as “income”, what happens to the asset that was stolen, but still reflects on your books?

Many reading this article could not care a hoot about the number crunching involved, but please stay with me for a minute. You might not care, but an investor, a bank and yes, the insurance company might pick this up on your financial statements when they demand your reports.

The method used to account for insurance claims is the “disposal method”. Any asset subject to an insurance claim should be transferred to a “Disposal Account”. Depreciation on the asset for the relevant period is calculated, and credited to the disposal account with the insurance settlement. The cost, less depreciation equals book value. Any settlement amounts over or under book value, will result in a loss or profit on disposal.

An insurance claim, wrongly entered as “income”, can be adjusted by transferring the amount to the disposal account. After effecting these entries, the disposal account should balance to zero. Your new records would reveal, the loss or profit on claim (income statement), settlement in bank account, fixed assets less the stolen/lost asset, and a lower depreciation estimate for the year.

I acknowledge that this is your accountant’s job, you however have a duty to provide accurate records. But how many businesses continue to pay, the same insurance premiums on the assets, since purchase date, when they, entitled to a lower premium, due to a lower asset value.(prior to any asset losses).

Also, a precarious asset situation in your books, might lead to problems in your tax affairs.
No business can afford a visit from the IRS. Did you know that tax authorities always commence auditing, your assets, before they move on to your income?

By: Sean Goss

Need Employment Insurance? Master Your Personal Brand

admin — Tue, 17 Nov 2009 16:49:30 +0000

In today’s topsy-turvy marketplace, job security may seem like a pipe dream. In the midst of downsizing, stock market confusion, and layoffs, how can you make sure to keep your name off any pink-sheet list? One key way you can create employment insurance is to learn to define and effectively communicate your unique personal brand at work.

Here are some personal branding tips for insuring you’ll have a job even if times get tough:

1. Understand the needs of your audience. We tend to think that personal branding is an ego thing – that it’s all about “you.” But just as successful corporate marketers make sure their products fill a need for consumers, personal branders have to make sure their brands fill their audience’s needs as well. If you aren’t exactly sure what your boss needs from you, ask! Then, do all you can to meet those needs. Become indispensable. It’s a surefire way to make certain you remain valuable in the eyes of your employer.

2. Know your strengths, and leverage them all. What talents and skills do you bring to your company? Are there any strengths that you aren’t fully utilizing at work? Can you offer more skills than you offer now? Give every talent that you have to your company, and you will be someone your company can’t afford to lose.

3. Go beyond your job description. As you leverage your strengths, think about doing more than your job description specifies. Anyone who does only what is required of them will be among the first to go in a layoff situation. That’s why strong personal branders look for ways to go beyond their job descriptions. Be prepared to show flexibility and versatility. Find ways to be proactive, getting tasks done before you have to be asked to do them. Think about making your supervisors’ jobs easier for them. Not only will you become a great asset to your employer, but you’ll also find you will take greater pride in what you do.

4. Strengthen your credibility. Do you want to be known as one of the best in your company at what you do? Use experience, education, and endorsements to elevate you to a top-performer image. What experience do you have that proves you can perform certain tasks on the job? Are you using all of your appropriate past experience that you can? Can you take a seminar or a course to strengthen your credibility on the job? Are you asking clients and supervisors for endorsements or testimonials that you can use to show your value?

5. Be mindful of your personal brand character. Think of your brand character as your overriding attitude, temperament, and personality. It’s like the difference between Pepsi and Coca Cola. Their ingredients are pretty much the same, but each brand has a “character” all its own created by smart marketers. The same holds true of smart personal branders. Remember that employers want to work with people they like. Is the character that you display on the job the type of character that will appeal to your audience? This is a critical part of successful personal branding.

6. Be consistent. Everything you do must communicate your personal brand. If you remain consistent with your brand, your employer will know that you can be counted on to deliver every day. This means that you must look and sound the part of your personal brand, too. Dress professionally, and make sure to speak articulately. Study body language, to learn how to present yourself as open and friendly. All of these efforts will not only help you keep a job but may even get you promoted.

7. Learn to manage your reactions. We have all fallen prey to knee-jerk reactions, but they’re almost never worth it. Nine times out of ten, you’ll look back on an angry response and wish you could turn back the clock. So, at a time when you think you might fall prey to a knee-jerk reaction, learn to take a breath, and hold onto your emotions. Take the time you need in order to express your opinions rationally. It will do your personal brand good… and you won’t regret it later.

8. Maintain a positive attitude. Don’t get sucked into the abyss of “misery” that seems to spread whenever the stock market takes a dive. No matter what is happening around you, thinking negatively will do nothing to help. In fact, it may just take you down with the ship. After all, science is beginning to discover that your thoughts may have more power than we … well, thought. So, work on keeping your thoughts positive and expect the best. It will not only make your life easier during trying times but it can also help you create a better future … sooner rather than later.

Whether or not you worry that your job could be in jeopardy, mastering your personal brand is one of the very best ways to not only insure job security, but to command a higher salary and advancement in your career as well. Becoming known for your powerful personal brand puts everyone on notice that you’re someone to watch. What better job insurance is there than that?

By: Brenda Bence

Insurance Probabilities

admin — Tue, 17 Nov 2009 14:26:24 +0000

Economically Feasible Cost

To be insurable, the chance of loss must be small. The cost of an insurance policy consists of the pure premium, or amount actually needed to make loss payments, and the expense portion. If the chance of loss approaches 100%, the cost of the policy will exceed the amount that the insurance company is obligated to pay under the contract.

For example, it would be possible for a life insurance company to issue a $1,000 policy on a man 99 years of age. The net premium alone, however, would be about $980, to which would have to be added an amount for expenses which would bring the premium total to more than the amount of insurance. To make life insurance rates attractive, the premium has to be far less than the face of the policy.

Chance of Loss Must Be Calculable

Some probabilities of loss can be determined by logic alone-for example, the probabilities involved in the flip of a coin. Others must be determined empirically, that is, by a tabulation of past experience with a projection of that experience into the future.

All types of insurance probabilities are determined on an empirical basis. There are some chances of loss, however, which cannot be determined either by logic or from past experience. Unemployment is an example. Unemployment occurs with such a degree of irregularity that, as yet, no one has succeeded in working out a method of determining its future incidence.

This is one reason why unemployment insurance is not sold by private insurance carriers. If there are no available statistics on chance of loss, it is impossible to predict losses, in spite of a large number of exposures.

Unlikely to Produce Loss to Majority Simultaneously

No insurance company can afford to insure a type of loss which is likely to happen to any great percentage of those exposed to it. True, life insurance companies insure their policyholders against death even though it is well established that every one of them will die eventually.

The life insurance company is really insuring its policyholders against premature death. Its rates and reserve accumulations are fixed in such a way that it can pay claims as the claims mature without causing financial hardship to the company.

If all the policyholders of a life insurance company should die prematurely, this company would be just as bankrupt as would a fire insurance company whose policyholders all lost their houses by fire.

Unemployment runs aground on this last barrier, too. Those individuals whose jobs were secure could never be sold unemployment insurance. Prospective customers would be drawn solely from those who felt their employment situations to be insecure.

When a business recession occurred, hosts of the insureds would lose their jobs at the same time. It would be equivalent to a life insurance company having a large percentage of its insureds die at the same time.

Insurance is an arrangement whereby the unfortunate few who lose are indemnified by the fortunate many who escape loss. Particularly those whose financial well being depends on it, which is often the case with the families of term life insurance policyholders. If the many, however, suffer the loss, then the few will prove inadequate to indemnify them properly, except at an uneconomic premium.

In order to guard against catastrophic losses, fire insurance companies, for example, seek a wide distribution of exposures and set up underwriting standards which prohibit the concentrations of business in small sections of a city. They also put a clause in their policies excluding losses due to wars, thus relieving them of the danger of catastrophic losses resulting from atomic warfare.

By: Sarah Martin

General Insurance Online – Easy Way to Land the Best Deal

admin — Tue, 17 Nov 2009 00:15:34 +0000

General Insurance covers vehicles, travel and medical. In order to make life a lot simpler for customers, a lot of the insurance companies have started offering these policies online. Opting for this option, while buying general insurance, is quick, easy and a lot less hassling. Here are a few tips to ensure that you get the best deals:

Keep your existing policy ready & stick to the same company
If you are renewing general insurance online you need to make sure that you have your existing policy ready as you will have to enter your previous policy details. Keeping your old policy ready will also come in handy when you are comparing quotes of your Online Medical Insurance for example. You should also try and get all your insurance policies with the same company to qualify for a discount for taking multiple policies from them if applicable.

Getting the best out of your Auto Insurance Policy
If you are buying General Insurance Online for your vehicle the first thing that you should insure is that you get all the discounts that are applicable. Do your research to see what the top rated auto insurance companies are and how they compare in terms of quotes. It is always advisable to go with a company that has clear claims etc. promptly or you will land up spending more time and energy running around to get your claims settled. Sometimes the so called Best Car Insurance companies can be quite lax when it comes to actually settling a claim.

Good Home Insurance
Home insurance is also available under the General Insurance Online category. To ensure that you are getting the best possible out of your home insurance policy make sure that your home is insured for the correct value. At this point you will have to take into considerations items that come under discounts like fire alarms etc. If you live in a home that has recently been renovated you need to make sure that the agent that you are dealing with is aware of this.

By: Rahul K Pathak

The Importance of Building Insurance

admin — Mon, 16 Nov 2009 18:26:19 +0000

All lenders insist on Buildings Insurance if any property is secured against a loan. If anything adverse happens to the property (like it being burnt down), the same property can be rebuilt from the proceeds of the insurance claim. And if your property is mortgage free and a similar devastation occurs to it, you will still be protected by the insurance policy and will be able to rebuild your property from the proceeds of your claim.

All Buildings Insurances are taken out so as to have a peace of mind against misfortunes that you hope will never occur. This kind of insurance offers protection against structural damages e.g. roofs, walls, floors, ceilings, windows and doors. The causes of structural damages specified in policies are usually by fire, detonation, burglary or attempted burglary, malicious damage /vandalism, natural calamities like lightning, flooding, storms, earthquakes, subsidence and falling trees etc. Also included in the policies are damages on outdoor properties such as gates, fences and railings.

But do be aware that not all policies cover all the above mentioned potential damages and each insurer will have its own exclusion peculiar to that particular policy. Should you require any specific cover which has not been detailed in the policy then you can obtain one by paying an additional premium.

In the unfortunate event of you not being able to reside in your property until it has been deemed safe and secure for you to live in, you will need to ensure that your Buildings Insurance policy covers you for a suitable alternative accommodation while works are being carried out on your property. Also make sure that your policy covers you for any associated architects’ or surveyor’s fees.

By: Syed Abedin