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7 Common Life Insurance Mistakes People Make

February 15, 2020 Wise Dollar Insurance No comments

An important investment to make once you start making money is life insurance. Your personal finance should include payments that you make for your life insurance so that you are prepared for any possibilities.

A lot of people think that life insurance is something that is too expensive. That?s one of the main reasons why people don?t set up life insurance policies for themselves. Another reason people might not think to have life insurance is that they believe that they?re currently healthy so they don?t have the need for it.

There are many mistakes that people make and assumptions people have about life insurance that aren?t right. Below are seven other life insurance mistakes that people make that you should know about.

1. Not comparing policies

Before you commit to any insurance company you have to make sure that you do your research about the financial strength rating of your chosen insurance provider. Should your family need to file a death claim you want to make sure that they have an easy time and that they aren?t subjected to unnecessary hassle.?

You can check out reviews online to see which insurance companies are the ablest to pay out during a death claim. Sure, your insurance company might be kind now since you?re paying them on a regular basis, but once people you love to file a death claim, it might be a whole different business.

2. Waiting too long to get insured

Life insurance shouldn?t be something that you start right when you feel like you?re getting older and your family might need it. The sooner you have life insurance, the faster you?ll be able to set everything up. Plus, life insurance premiums will be a lot more expensive once you are older in age anyway.

This is because the older you are the likelier you are to get some health issues as well. In some cases, you might not be able to purchase an insurance policy. Thus, it is much more important to get life insurance while you?re younger instead of waiting before getting one.

3. Not considering it as an investment

Life insurance is an investment both monetarily speaking and in general. It?s not some monthly bill that you pay off. You should view it as an investment opportunity as well. Life insurance mainly is used for life insurance protection. However, part of it goes to an account that invests in a variety of mutual funds.

The account?s value differs depending on the performance of the particular investment that your insurance provider has put it into. Therefore, these insurance policies aren?t only something that you get after a death claim. These are also insurance policies that can be a source of cash during your retirement.

4. Choosing the price, not the coverage

People tend to choose the cheapest option when choosing their life insurance, which is definitely not the best choice. When comparing life insurance quotes nz, remember to also look into the coverage. If you pay a suspiciously affordable rate, then it might mean that you aren?t getting the best coverage possible.

When the time comes, you might see that your investments were for nothing once you start filing a claim. Take your time with choosing your coverage. Read through the fine print and figure out which one works best for you. Look into other insurance companies and compare the coverage for the same price range.

5. Being too skeptical

Skepticism is good for some cases but too much of anything is not good for you. One of the many ways that too much skepticism can harm you is if it inhibits you from getting life insurance. Some people think that life insurance is all a scam. They believe that they should have enough assets on-hand when the time comes anyway.

However, what one should consider is that should you pass away, your family will have immediate benefits that they can use during this tough moment in their lives. Aside from that, the benefits that you get should not be subject to any federal income taxes.

6. Failure of reviewing the policy

Once you have life insurance up and running, you should get into the habit of reviewing your policy every once in a while. Perhaps you want to change something in your policy that no longer fulfills your current needs. Reviewing your policy keeps your life insurance fresh in your mind and allows you to figure out whether there is time for key changes.

You might find that your current life insurance policy isn?t enough to answer your needs if you review it. The unspoken rule is that you should be reviewing your insurance policy every year to see if it still works for you or not. You don?t want to pay for things that you don?t need or pay for things that aren?t enough for you after all.

7. Keeping it a secret

Although it?s a societal taboo to talk about personal finances, when it comes to your insurance policy, you have no choice. Someone needs to be your beneficiary so that they can make a claim.

Aside from your beneficiary, you should also talk to your own personal financial advisor as well as an estate-planning attorney of your choice.

Life insurance is an important investment not only for yourself but also for the important people in your life. By avoiding these common life insurance mistakes, you are saving yourself from a whole load of work that you might be dealing with in the future. Thus, make sure that you apply these and protect yourself.

Also Read- 3 Types of Business Insurance that are Essential for SMEs

How to Pick a Travel Insurance Policy

June 17, 2019 Wise Dollar Insurance, Travel No comments

Are you planning for the much-awaited vacation? Do you fancy the sparkling beaches of the Bahamas or the captivating architecture of ancient Rome? No matter where you choose to spend your days, don’t forget to get a Travel Insurance Policy that covers all your unexpected expenses.

Why do you need a Travel Insurance Policy?

Whether you are planning to travel within your country or somewhere else, a travel insurance policy is a must. Imagine what would happen if your flight gets canceled or postponed, and for some reason, you are not able to reschedule your travel plans?

Airline companies are not going to refund the expensive tickets that you bought. Besides, there will be other losses like advanced accommodation bookings.

A travel insurance policy protects you from such a disaster. Let the Travel Insurance Company worry about the unexpected financial losses. Usually, things don’t go wrong but they do, your Travel Insurance Policy will come to the rescue.

What does a Travel Insurance Policy cover?

Loss of baggage

It’s very common for airline staff to lose your baggage before or after you board a flight. There are thousands of people like you who check in with their luggage and expect it to be safe throughout the journey. But your baggage is not always safe and it can incur external or internal damage. In some, cases it also gets misplaced.

The Travel Insurance Policy covers against the loss of baggage that you checked in with. Moreover, you could face other problems like misplaced baggage, theft, or tourist scam. A Travel Insurance Policy also covers losses occurred during such unfortunate incidents.

Medical emergency

A travel insurance policy provides a financial cover in situations like accidents and other medical emergencies while you are still in a foreign nation. Your health insurance may only cover your expenses when you are in your own country.

Trip cancellation

This is another one those nagging problems faced by backpackers and nomads over the world. It is very common for flights to get delayed or postponed. Your travel insurance will pay a complete refund in case the new date or time doesn’t fit into your schedule.

How to pick a Travel Insurance Policy?

Like any other insurance, you should pick travel insurance according to your needs and necessities. Also, do not hire a travel agent for this work. They may not have your best interest in their mind.

You should also take other things into consideration like the destination you are traveling to, duration of your vacation, your age and whether you have any serious medical condition or not.

Conclusion

To reiterate, travel insurance policies include perks like financial coverage for losses occurred during traveling and a complete or partial refund of trip cancellations, stolen baggage, tourist scams, etc.

World Nomads provides the best Travel Insurance Policy. You can buy it online and use it anywhere in the world. It is tailor-made for backpackers and digital nomads. The pricing depends on the country you are traveling to, your country of residence and your age.?

3 Types of Business Insurance that are Essential for SMEs

January 31, 2019 Wise Dollar Business, Insurance No comments

Small and medium enterprises (SMEs) are the backbone of the American economy. Every day countless transactions take place between SMEs and a wide range of stakeholders, from vendors to clients to employees. This means that the risk of something going wrong is something that entrepreneurs have to take into account. Even though the thrill of taking risks and the process of learning from past mistakes are aspects of running your own business that are understood by those with an entrepreneurial flair, it does not mean that you have to be unprepared. That’s where business insurance comes in. But what kind of insurance is the best for your enterprise?

General Liability Insurance

One of the most fundamental types of insurance is business liability insurance, also referred to as general liability insurance. In essence, this type of protection policy will cover you against all kinds of accidents. It safeguards your company against accidents that could end up costing you a great amount of money, like bodily injury, which is why it is also known as ?slip-and-fall? insurance. Any type of physical injury that is incurred when a third party like a customer visits your shop?or when they are hurt due to your handling of equipment or faulty facilities that you have set up?could legally end up being your responsibility ? including medical and hospitalization costs, loss of income, long-term injury treatment, etc.

General liability insurance also covers personal injury, which includes non-tangible damages like defamation, libel, or copyright infringement. Lastly, it includes property damage for third parties, which can be tailored according to your needs to cover anything from a small scratch on the floor to?water damage.

Source: Pexels

Property ?nsurance

Accidents don’t only?happen?to other people ? it is equally probable that your own business might be at risk of damage, too. The first thing you need to look at is insuring any property that is essential for your day-to-day operations. This is particularly pertinent if you own your business premises or if you have started a home-based business, but it applies equally to enterprises that rent out space. Depending on where you carry out your business and the type of activities that you are most involved with, you are likely to need insurance that covers more specific criteria. For example, if you are based in a state that gets a lot of heavy rain throughout the year, it is wise to invest in flooding insurance.

Source: Pexels

Vehicle ?nsurance

Many companies opt for one or more company cars, which has many pros and cons. This could be the car that your employees use to provide services on the client?s premises, a vehicle reserved for delivering your products, or even a perk given to some of your employees. Yet it also carries the risk of incurring damages from road accidents or vehicle damage in general, so vehicle insurance is of paramount importance. This could range from simple third-party liability insurance to a fully comprehensive plan, depending on your budget and needs.

Insurance is one of those unavoidable costs for most businesses, and even though it might sometimes sound like a luxury, it could mean the difference between surviving unscathed and bankruptcy when you actually come to need it.

7 Quick Tips to Save Money on Car Insurance

January 29, 2019 Wise Dollar Insurance No comments

Car insurance is a mandatory part of driving, but you shouldn’t spend more than you have to on coverage. Knowing what impacts your premium policy is one good way to stay on top of car insurance costs, but these tips can reduce your overall burden.

Take Advantage of Discounts

Several insurance companies offer discounts and multiple ways to save. Ask your agent to review your account for any possible savings. They’re in the business of keeping you as a customer, so they will attempt to offer you any discounts available.

Drive Safely

Many car insurance companies are offering a safe driver discount. Traffic tickets and accidents will cause the price of your insurance to increase, but some insurance agents are monitoring every day driving, too. A small device plugged into the OBD port of any modern vehicle monitors breaking and speed. Installing one of these devices in your car and driving safely could net you up to 15% savings on your car insurance.

Don’t Pay for What You Don’t Need

Assess the value of your car to make sure you’re not overpaying for insurance. A clunker of a car won’t need collision and comprehensive insurance since these only pay out what the car is worth. If your car is worth less than your deductible plus the amount you pay for annual coverage, then collision and comprehensive protection are useless for you. Evaluate what your vehicle is worth before committing to an insurance policy.

Vehicle Make & Model Affect Prices

That sporty red car may look nice sitting on the lot, but once it is in your driveway, you’ll be paying more for insurance than your neighbor and his sedan. That’s because the type of vehicle you drive will affect how much you pay to insure it. Vans and SUVs tend to be cheaper to insure than expensive sports cars and trucks. Shop around for car insurance because comparing prices is a quick and easy way to save on car insurance.

Increase Deductible

To save money on your monthly premium, you can raise the price of the deductible. The deductible is the cost that must be met by you before your insurance coverage will kick in. Most deductibles for cars are around $500, but if you can afford it raise it to $1,000. On average, you’ll save about $200 a year by being willing to pay more should something happen. If you’re worried about being able to meet a deductible price, set aside money each week. Eventually, you will have enough to pay for the deductible with no out of pocket costs.

Maintain Credit Score

Your credit score is a big factor in how much your insurance will cost you. Make sure you’re paying all of your bills and loan payments on time. You should keep your credit balances well below credit limits and only open new accounts when necessary.

Usage-Based Insurance

If you don’t drive a lot, you may save a ton of money by switching to usage-based insurance. These types of insurance policies are based on how much you drive. Low-mileage drivers who switch to pay-per-mile plans often save money in the long-term.

What to Know When it Comes to Life Insurance

November 17, 2018 Wise Dollar Insurance No comments

Part of having a sound financial plan is making sure that your family is taken care of in the event of your death. Life insurance is an invaluable tool that can keep your final costs from being a burden on your family after you are gone. Most people buy life insurance as a form of peace of mind to that regard. If you’re unsure of how life insurance works and you want more information before making a decision, read on to have your questions answered. There are quite a few different options when it comes to choosing a life insurance policy. If you?re unsure, an insurance broker can help you understand the differences between the many kinds of permanent life insurance or help you pick out a term life insurance policy that fits your needs and budget.

What Exactly is Life Insurance?

A life insurance policy is one that pays a sum of money to the policy’s beneficiary after the death of the policyholder. In short, it’s designed to help your family with your final costs and their futures. The policy value of life insurance you buy is dependent on many factors. Premiums are generally paid either monthly, quarterly, or annually for the length of the policy. While life insurance may seem like a thoroughly modern idea, there is evidence the practice has been in use since Ancient Rome. During that time, burial clubs were used that would pool money together to pay for its member’s funerals. Individual members would contribute a small amount to the fund, crowdsourcing an individual’s burial costs. It wasn’t until around the 17th century that the famous astronomer Edmond Halley came up with the formulas to calculate individual risk based on mortality statistics. These actuarial tables changed how life insurance worked by forcing higher risk individuals to pay more for coverage.

Several different factors affect how much a policy holder’s premiums may cost. Your age, sex, and pre-existing medical conditions can all result in higher or lower premium payments. The older you are, the more you will pay in monthly costs. Men also tend to spend more than women because they take riskier career options and generally have shorter lives than women. A family member can claim a life insurance policy using an official claim. The certificate of death will need to be provided along with original copies of the insurance policy. Life insurance claims can be denied if the deceased dies in a way that is not covered, such as suicide. Companies that suspect a claim may be fraudulent will conduct a thorough investigation.

Should I Buy Life Insurance?

Life insurance is designed to protect young, working families from financial disaster after the death of a loved one. The value in life insurance is protecting your family from the loss of your salary. Many term life insurance companies recommend a policy that will cover at least five years of your family’s expenses. Life insurance is also commonly used to help pay for expenses like your mortgage after your death. Some special life insurance policies are available that are tied directly to the outstanding balance on your mortgage. The lower your mortgage, the less you pay for that premium. Small business owners might also consider life insurance to help the business stay afloat in the event of their passing. These policies often name the business holder’s partner as the beneficiary to help maintain the business.

What’s the Difference Between Life Insurance Policies?

There are two major types of life insurance available. Term life insurance is the most basic, and it covers the policyholder for a set number of years. Term life insurance is the least expensive option because young people pay fixed rates for a fixed number of years. The downside to term life insurance is that your premiums will go up in the renewal process as you age. That’s where permanent life insurance comes in. A permanent life insurance policy is good from the day it is bought to the day the policyholder passes away. These policies can operate on a fixed or flexible premium, depending on the policy grantor.

Permanent life insurance is divided up into a few sub-categories itself. Whole life offers permanent life insurance with a fixed premium. Universal life allows funds to be moved from the insurance account and an attached savings account. Variable life insurance gives the policyholder the choice of where their funds are invested, affecting the cash value of the policy. Finally, universal variable life insurance offers flexibility on both fronts.

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