Three types of insurance are essential when deciding what type of insurance we need. Of course, there are many insurance options available, making it difficult to decide which one you really need. Three types of coverage are essential: Life, Health and Possessions insurance.
POSSESSION’S INSURED: HOMEOWNERS, RENTERS, AND CAR INSURANCE
Possession can be a broad term. We mean homeowner’s insurance or renter’s insurance depending on your situation, as well as car insurance. There are a few things to consider when shopping for homeowners insurance. Make sure that your renter’s or homeowners insurance covers jewelry, art, and electronic items. Let’s start with property protection if you’re a homeowner. You have two choices: to purchase a cash value or replacement policy.
The cash value policy pays for the actual value of the property at that time. For example, if your property was purchased for 500,000 but it was damaged or destroyed at 450,000, that is how much your cash-value policy will cover. You can also buy a replacement policy. This is more costly but guarantees that your house will be rebuilt to a similar standard as the one that was destroyed. Don’t forget to inform your agent about any home improvements that you have done when purchasing either of these policies. Your homeowner’s policy should also cover personal items like jewelry, art, and electronics.
Each insurance company is different but personal property usually covers up to 75%. If you’re looking for renter insurance, make sure your renter insurance covers jewelry, art, and electronics. It is also important to keep track of all personal items you own and consider to be covered by your renter’s or homeowners insurance. It will be easier if you need to replace your items due to theft or destruction.
CAR INSURANCE
Car insurance is required by law in every state. Experts suggest that you base the coverage you require on your assets. More assets will result in greater coverage. Here’s what’s recommended:
This number might be familiar to you:
They refer to the amount covered by the policy. $ 50,000 bodily injury liability for one victim of an accident
$ 100,000 for everyone who is injured in an accident
$ 25,000 for property damage liability. Each state has its minimum coverage.
Remember to consider your assets when purchasing car insurance. Don’t buy too much, but don’t buy too little. Uninsured/Underinsured motorist: You might be in for a big surprise even if you have car insurance but the person who hit you does not. PLEASE ask your agent about Uninsured/Underinsured motorist coverage. Consider your driving habits, driving distance, and driving speed when you are shopping for car insurance.
HEALTH INSURANCE
What does the Health Reform bill mean?
Millions of people will need to purchase their own health insurance. It can be expensive to have health insurance, especially for older people or women who want to become pregnant. Pre-existing conditions must be accepted under the new health reform bill. Unfortunately, it will not be enforced until 2014. Pre-existing conditions are not exempted from any insurance policy. This goes into effect in mid September 2010.
Children aged 26 and under can continue to be covered by their parents’ family policy. This took effect immediately. There is no regulation on the cost of coverage for children 26 years and under. The new health reform law will not be fully implemented until the next few years. However, it is important to remember that people become sick and the new law won’t take effect immediately. It is important to find the right health insurance for you. There are many companies that would love to help you, but be aware of your deductibles, copayments, lifetime limits, and limitations.
LIFE INSURANCE
Are you concerned about your assets, your children or dependents? Do you want to ensure that they are financially secure?
If the answer is yes, then you should definitely consider purchasing life insurance. It can be just as confusing to buy life insurance as it is to purchase health insurance. I’ll make it as simple for you as possible. There are two types life insurance: Permanent Insurance and Term Insurance. Term Insurance provides death benefits only if the insured dies. Permanent insurance, also known as whole-life insurance, offers death benefits and savings accounts. You get some of your money back if you are still living when the insurance ends. What is the amount? It all depends on how much you pay. Let me show you an example for a woman who is 37 years old, and a man who is 33 years old.
A young woman of 37 years old would need $22.56 per monthly to get $250,000 life insurance.
A 33-year-old male costs $22.35 per monthly for $250,000
This is a 20-year policy, where the monthly cost remains the same for all 20 years. It pays upon death for any reason and not just accidental death.
Suicide within the first two years is not allowed.
They also pay for it after 2 years. For a 10-year policy, it would cost $13.18 and $12.77 respectively. A 30-year policy costs $31.52 to $33.81 and $31.52 respectively.
It can be confusing to purchase any type of insurance. A reliable, trustworthy agent can help you make informed decisions that will protect your assets.
Yanni Raz has been a mentor to many real estate investors and homeowners in the real-estate industry. You can find his classes in Studio City, California.
Yanni Raz is a homeowner advocate who helps homeowners save their homes from being foreclosed. Short sale homes and REOs are his daily practice. Yanni Raz can help you with any questions or concerns about your home.