8 Major Income Protection Myths Debunked

Insurance products aren’t the easiest of things to understand and income protection insurance is no exception. With cumbersome key facts booklets and the media citing stories of context-specific consumer-insurer battles, it’s no surprise that many people misunderstand exactly what it is and what it specifically offers.

Outlined here are eight major protection myths demystified, so that next time you hear something about income protection, you’ll be able to separate fact from fiction.

Myth 1: It doesn’t pay out

Provided that the policyholder has kept up-to-date with their monthly premiums, and has given truthful personal information from the outset, claims are nearly always paid out. In fact, last year in the UK, insurance providers paid out over 90% of successful claims. If you’re still unconvinced and want to double check specific insurer payout rates, most of them now provide easily-accessible claim statistics on their websites.

Myth 2: It’s too expensive

This myth is purely subjective. If you were a smoker in a high risk job and wanted a very high level of cover, your premiums would, of course, be costly. For the majority however, income protection is affordable and can cost as little as 30p per day. If you want significantly lower income protection insurance quotes, consider buying through a commission free broker or by extending your deferral period – the amount of time between a claim being made and the money being paid out. Premium rates are calculated based on your age, health, smoker or non-smoker and occupation, so if you’re serious about cutting the costs of premiums, it may also be beneficial to adopt a healthier lifestyle.

Myth 3: It’s a waste of money

When it comes to ill-health and injury, people can feel a sense of invulnerability, and so it’s all too easy to see how this kind of myth circulates. But ask anyone who’s used their income protection policy, and they’ll be the first to debunk this notion. If you were unable to work due to illness or injury, the monthly instalments provided by income protection could become invaluable, affording reassurance that bills, loan repayments, and any other expenses could continue to be financed during your time off work.

Myth 4: It isn’t necessary if you receive benefits

Statutory sick pay and other benefits tend to pay no more than £400 a month, which for most, would not cover the rent or mortgage. An income insurance policy however, would pay up to 75% of your usual income, comfortably covering the costs of your living.

Some employers will provide a more comprehensive benefit than statutory sick pay. Therefore, it’s important to check if this applicable; as this may mean that your deferral period can be extended which can, in turn, lower premiums.

Myth 5: It’s the same as PPI

Although they may sound similar, income protection and payment protection insurance (PPI) are not the same products. PPI insures a specific loan repayment, whereas income protection is designed to cover a portion of your income. If you found yourself unable to meet your mortgage repayments due to ill health, PPI would be on hand for this, but what about all the other inevitable expenses? This is where income protection comes in.

Myth 6: It’s not necessary if you have critical illness cover

Whilst critical illness insurance is important, unlike income protection, it would not pay out if you were unable to work due to injury or if you developed a non-critical illness. For this reason, income insurance may be worth considering along with critical illness cover, as this would cover a wider range of eventualities.

Myth 7: It’s not for you if you’re self-employed

Self-employed people can get income protection insurance, but be prepared to provide the relevant documentation. If you’re self-employed, your income may be more variable, so it would be beneficial to regularly review your policy to ensure that you’re covered for the amount of money you require.

Myth 8: It takes too long to apply

Whilst this may have been true in the days of dial-up-internet and telephone brokers, thanks to user-friendly websites, it is now easier than ever to search, compare and buy income protection policies.

Surety Insurance May Give You Peace of Mind

In a world where unforeseen consequences can lead to costly damages and potential lawsuits, managing your risks is an absolute must. When looking for ways to mitigate risk in an investment, such as a car, house, or expensive work of art, people often turn to major insurance companies. In theory, paying a little each month can protect you from sudden financial disaster in the future. While these companies have good intentions, the reality is often much less idyllic. Companies often try to deny claims or take forever to process payments, leaving you stuck with a mountain of debt while you try to keep your investments afloat.

Contract Work

Particularly in contract work, standard liability coverage often leaves much to be desired. When allowing a contractor to work in your home, install an air conditioner, or run new power lines, you are taking a huge leap of faith that the company will behave ethically and do their work up to code. While most reputable companies carry liability, there is simply no way to guarantee that their coverage will provide you with the compensation you need when their mistakes cost you thousands of dollars in damages. To mitigate this risk, surety insurance has become a preferred means of protecting your investment. This type of protection, often called surety bonds, offers a unique method of controlling the way funds are distributed in the event of a disaster. Rather than spreading settlement payout across a myriad of clients, surety insurance is a three-way agreement between a customer, a contractor, and their bondsman. With stricter guidelines and a clear understanding of responsibility, these bonds allow payment to be treated like a bank loan rather than a sudden cash windfall. By cutting out the major corporations, homeowners are able to hold contractors accountable and seek damages as soon as they know shoddy work has been performed rather than after catastrophe has struck.

Public Works

Surety insurance is also beneficial in the case of public works. When building a park, statue, or other municipal attraction, city and town governments rely on one major overseer to manage a large number of subcontractors. Often this primary job lead is the only point of contact for the various electricians, sculptors, and carpenters working on the job site every day. While this manager hires out the work and can make agreements for compensation on his own, he will not be the one receiving complaints should any subcontractors not receive their due. Dissatisfied workers will climb as far up the food chain as they can and head right for the biggest wallet. Liability protection held by a contractor won’t save the city in this instance; only a qualified bond will do the trick. The township can activate their agreement and settle payment directly with the workers without any scandal or lawyers whatsoever.

Whether you are building an addition to your home or rebuilding the town square, make the right decision and cover yourself with surety insurance.

Signs of a Quality Insurance Company

The insurance company you choose to protect you from loss in the event of an accident or situation needs to be a trustworthy one. Know what to look for as you analyze and examine different companies and policies to ensure that you choose the right coverage.

Positive Ratings

Rely on the assessments of the rating companies, whose purpose is to analyze the quality and financial wellbeing of insurance companies. Check the rating of any insurance company you are considering. As you check ratings, compare them to learn which business has the highest rating. Higher ratings have a direct correlation with the solidity of the business and the services provided. Higher ratings also indicate entities with more solid financial standings for paying out claims.

Business Longevity

Examine the length of time a business has been operating to get an indication of the quality and reliability of its services. A newly formed entity may not be able to offer customers the same reliability and performance as businesses that have been around for many years. A recent purchase and transfer between insurers could indicate that the new owner is undertaking positive growth.

Customer Service

The services provided to customers by an insurance company will be an important indicator of quality. Optimally, customers should be able to reach representatives in a variety of ways, such as by phone, online chat, and email. The response times to customer queries should be relatively short to ensure that all questions and concerns receive a speedy resolution. Customers should also be able to reach a representative around the clock and on weekends and holidays for emergencies.

Coverage Policies

The policies provided should meet your needs, with cost effective premiums, affordable deductibles, and terms that meet your coverage needs. Compare policy terms between different corporations to ensure that you choose the policy that fits your budget and needs. Explore the claim-paying process to find out how the business investigates claims and the typical time period for payment on a claim. Find out the rate of claim refusal, also, so you know the average pay out statistics for the insurance company.

Reviews and Complaints

Learn about reviews and complaints recorded by other customers to find out potentially positive and negative information about the insurer. Find positive and negative reviews on websites that allow consumers to record their experiences for other consumers to read. These reviews may provide surprising information about an entity that could lead you to decide not to choose them as your insurer. You might also learn positive information about the way a business takes care of its customers. Optimally, the corporation you choose should have very few or even no complaints lodged against it from other customers.

Once you gather extensive information about a company, you will have the data you need to choose a quality business for your coverage needs. This will enable you to put your trust and confidence in this corporation, knowing that it will assist you financially if you need it.

4 Pillars of Protection – Products To Consider In Your 4 Pillars of Protection Insurance Portfolio

With a wide range of insurance products available today it is important to understand the differences and benefits to you and your specific situation. A basic portfolio for any person but more specifically for a self-employed person should encompass the 4 following aspects.

Disability

By far one of the most important products for anyone, specifically self-employed people is disability insurance. We all work to handle our weekly and monthly expenses in addition to providing the “little extras” if we have anything left over. Employees of a company for the most part will have benefits provided to them however, being self-employed our livelihood depends on our ability to go to work and earn an income. In the event your ability to work is suddenly removed, disability insurance could be the key to your survival. Your income is the fuel for everything. Remove that and over time all else will fall apart.

Life Insurance

Life insurance has so many uses that it could essentially apply to everyone. However, the general consensus of life insurance is that it is suitable only for people with a family. This couldn’t be further from the truth. Life insurance can be used to protect a debt over a period of time, provide for your survivors after final expenses, or give to a charity upon your death. For people who would like the idea of having a benefit as well as a savings or investment vehicle, life insurance could also be an option for you. Life insurance must be carefully evaluated to ensure that it is structured properly based on your specific situation.

Critical Illness

In my experience I have seen this product misunderstood the most. The important thing to understand about CI is that it will pay a lump sum benefit in the event you’re diagnosed with a “specific” covered illness. Most CI products will protect against heart attack, cancer, and stroke however, each policy will differ between companies for other covered illnesses beyond these. Do not make the mistake like most do in thinking that this operates like disability insurance. Yes, they are both living benefits but they provide protection in varying ways.

Investments

Within financial circles it is encouraged to have a minimum of 6 months of disposable “liquid” income saved. For most people this is a tremendous feat and some people often throw their hands up in the air and forfeit the idea that they too can have investments. Life insurance can be designed in such a way that not only do you have protection but also an accumulating asset. Outside of life insurance there are many ways to protect and grow your money. The concern for most people is having a large sum of money lying around to be able to invest. If you don’t have a large capital to start with always remember that it is better to start somewhere, even small if needed than to not start at all.

As an independent insurance advisor and income protection specialist for almost a decade, Ryan has been providing clients with customized personal insurance and financial solutions through disability, life, critical illness, long-term care, and other personal insurance products while providing strategies for hedging income and preserving wealth.

Why You Need Liability Coverage From Your Insurance Company

Designed to cover professional practitioners against claims of negligence made by clients or patients, professional liability insurance goes by many names. When used in the medical profession, it is commonly called medical malpractice coverage. Notaries public also require this security, but they refer to it as errors and omissions insurance. Real estate brokers, management consultants, and even website developers are all eligible for protection.

What’s It For?

Insurance is used to protect people in case something unfortunate happens. Auto policies protect them in the event of an accident; medical policies protect them from unexpected illnesses; commercial policies protect them from a number of mishaps. If there is a fire, theft, or an accident on the job, the commercial variety will cover it.

Why You Need It

Few companies are fortunate enough to survive for a protracted period of time without getting sued by a client, customer, or employee. Liability coverage from an insurance company is the only shield most businesses have against litigious attorneys. This goes double when an employer competes in a risky industry like construction. Why?

A construction site is arguably the most dangerous working environment on earth. Not because people are careless, but because making something, anything, is risky. Workers fall down stairs; they trip on cords; they cut themselves. Builders must assume this risk and purchase the right amount of coverage from their insurance company to protect them from financial ruin. But that’s not all.

These policies not only shield the employer, but they also safeguard his workers. If an electrician falls off a ladder or a carpenter cuts himself, a liability policy will pay his medical bills. Commercial coverage will also cover most attorney fees and court costs if someone files a suit against you.

How Much Do You Need?

As you might expect, the size of the policy often depends on the size of the business. Most actuaries recommend at least one million dollars of professional liability coverage for small businesses. Large businesses and corporations obviously need a lot more and often carry huge policies. Because lawsuits are quite common in the medical profession, malpractice insurance is the most common form of liability coverage.

Most doctors have several million dollars of malpractice coverage at all times. When they work in a large practice, that figure might be five or even ten times as high. Lawyers and accountants must also carry liability because of the high rate of litigation in their fields. But what about everybody else?

Numerous Benefits

Any business that can be held financially responsible for failing to complete a project on time may need to purchase a professional liability policy from their insurance company. This includes general contractors, architects, builders, and many, many more. These policies also cover personal injury, breach of warranty, intellectual property, and security. In short, any company that has more than one employee should have liability coverage.

Why Companies Need Contractors Liability Insurance

Regardless of if, you are a standard specialist or a sub-contractor, contractors liability insurance is one kind of insurance policy plan that you cannot afford to do company without. Not only will almost all jobs require your company to provide proof of general liability insurance before allowing it on their residence, but also ignoring to protect your resources with this wide-ranging kind of company insurance policy leaves you exposed to sometimes-catastrophic obligations if incidents or accidents happen during a job.

Contractors liability insurance policy has a number of important types of insurance coverage, that jointly guarantee witnesses, customers, sub-contractors, and employees against these types of claims:

* Marketing Harm (i.e., libel and slander)
* Individual Injury
* Physical Injury
* Items and Completed Operations
* Property Damage

In every case, the contractors liability insurance contains legal and judgment costs caused by statements being registered against the covered specialist. This generally contains the other entire person’s hospital costs, earnings lost, and all suffering and pain that could have been sustained.

Examples of the Types of Claims Covered

Advertising Injury

Such a claim is protected by many contractors’ general liability policies, but it’s probably one of the most rare to actually be registered. Marketing injury is defined as damage continual due to another person’s use of slander or libel against the complainant. If you are a specialist, one example might be a sub-contractor submitting an claim against a standard specialist on the assumption that his professional reputation and earning potential has been damaged by damaging reviews and advertising started by the normal specialist.

Individual Injury

A couple of the more-common statements made against contractors, bodily injury and accidents statements happen anytime a third celebration (e.g. a customer or bystander) is unintentionally harmed on a job website as caused by negligence on the part of the specialist. Harm statements sometimes can include psychological and psychological injury that outcome from either irresponsible or purposeful acts by the accused.

Damage to Property

The most-prevalent claim observed on job websites, residence damage statements develop from damage or loss of residence because of the covered person’s activities. Such actions might be either purposeful (whereby the harmed celebration may additionally submit an accidents claim for psychological and psychological injury) or random, and are occasionally registered due to loss or accidents that happen after the specialist has already completed the project. One common illustration of this would be a plumbing technician who is charged because water pipes he installed begin dripping and causing harm to the walls and flooring near them.

Products and Finished Services

Products and completed solutions insurance policy is very critical to contractors, because it contains the statements that happen should a client considers that a job was not done properly. This might be by way of a foundation that eventually divides or a wall that breaks at some point after a job has been finished.

The Kinds of Insurance Everyone Must Have

Getting the right insurance to cover an individual, their home, health, assets, business, family, etc, is an ongoing process that needs to be reviewed at different stages of your life. The importance of insurance in modern economies is unquestioned and has been recognized for centuries. Insurance is practically a necessity to business activity and enterprise. But insurance also serves a broad public interest far beyond its role in business affairs and its protection of a large part of the country’s wealth. It is the essential means by which the disaster to an individual is shared by many, the disaster to a community is shared by other communities; great catastrophes are thereby lessened, and, may be, repaired.

There are some insurance policies that are of utmost importance. Living without them in modern times is a risk no one should dare take. The policies are:

• Auto Insurance: Every state requires car owners to have some sort of car insurance, especially liability insurance. If you get in an accident and it’s your fault, the victims of your negligence can sue you and own everything you own. That doesn’t mean everyone needs comprehensive auto insurance. For example, if you drive a clunker, you probably don’t want collision insurance.

• Health insurance: should be viewed as a necessity for the vast majority of Americans, with the possible exception of those who receive Medicaid or Medicare. Only the richest of the rich can afford to pay out of pocket for medical expenses, which range from hundreds of dollars for routine doctor visits to thousands for more serious illnesses or broken bones. Premiums aren’t cheap, but not having health insurance can cost middle-class Americans way more than they can afford, including their homes and their savings.

• Life Insurance: If you’re single and you have no children, you can go without life insurance, but if anyone depends on you financially, you need life insurance. How much do you need? How much more money will you likely earn during the rest of your working years? Add that figure to what your funeral will cost, and that’s the minimum amount of coverage you should buy. Life insurance is more affordable than ever, but the best rates are for the youngest and healthiest, and when you apply, expect to undergo a thorough physical examination, which include blood and urine tests.

• Property Insurance: If you own a house, or any other property, chances are it is your most valuable asset. Why wouldn’t you want to protect it? If your property is not paid off, the bank or company that gave you a loan will require you to have insurance, but some people who pay off their mortgages make the mistake of dropping their coverage. You should buy as much insurance to allow you to replace the house if it was destroyed, and you also might want to buy a policy that covers the contents. If you don’t own a house, you should buy contents coverage because your most valuable assets may be the contents of your apartments.

Defending Your Company With a Business Insurance Plan

If you run a little business, it is essential to prevent yourself from significant failures whenever possible. Operating an organization is not simple, and unique can destroy your improvement and prevent you from accomplishing your goals. To secure you from any serious difficulties, it is a wise decision to get operating insurance strategy. There are wide ranges of programs for professional organizations that protect any variety of factors, and you should consider the benefits of having your own unique plan.

Whether you own a furniture store, a cafe, a technology firm, or an HVAC company, you can benefit from business insurance strategy. Companies that provide professional programs will continue to perform with you to select a specific strategy that meets your actual needs. Some people want security for residence loss. This can include security from overflow, fire, wind, and mishaps. Others want responsibility. This type of security can protect workers comp in the occasion of an accident, repair conflicts, and employment practice problems. Without being covered strategy, it is possible you could lose a lot of money if someone you employ or perform with has a case decided in his or her benefit. By assuring your company, you will be able to afford any payments that are required as part of an agreement.

No industry is too large or too little to be covered. Even if you are self-employed, it is a wise decision to have a strategy in place to help you maintain achievements. Commercial methods often need the same guidelines and business insurance coverage as people. This includes vehicle and residence security. To maintain a successful business, it is essential to be able to take difficulties in pace and focus on long-term achievements. Injuries in the office or failures that result from functional problems are inevitable. While you can take every safety measure to enhance the way your company functions and apply new guidelines, you are still limited to hit a push or two. Increasing a little business is not simple, and there will be growing discomfort along the way. By assuring yourself and your company, you will be able to quickly, move beyond any difficulties you may face.

Whether you are getting ready to start a new professional business or you have been running an organization for quite some time, there are always ways to enhance your business insurance strategy plan. As your function changes and develops, so should your plan. Insurance providers provide many types of programs to provide a wide range of people. Some professionals want programs with comprehensive security and little insurance deductibles. Others want to secure themselves from a disastrous occasion. No matter what your budget may be, you will be able to discover the right strategy at the right price. Discover an insurance provider in your area who can provide the actual kind of security you need.

Insurance Policies – Before Signing On The Dotted Line

Before taking an insurance policy, it is important that one considers a number of crucial factors to avert losses or regrets. The insurance industry is undergoing exponential growth compared to earlier years. In most countries, the middle class is growing rapidly. Such people have spending power. By the time a person reaches 35 years of age, barring other eventualities, there is a profound sense of the need to prepare for a future devoid of employment and concomitant income. Insurance companies fill this gap. Despite this, it is imperative that one understands what he or she is committing to before taking an insurance cover.

To begin with, one needs to fully comprehend what exactly they want for the future. Insurance is primarily meant to cushion one during unexpected events. It is also a form of saving for one’s future and that of children. Consequently, one needs to have a clear idea of their need for a policy. For example, there are insurance policies covering children’s education. Some policies cater for the beneficiary after retirement from active employment. Unless one has a well-defined plan in place, insurance will be a disappointing venture. It is imperative, therefore, to gather relevant information on the policy you are interested in, before making a decision.

Second, before taking any insurance policy one needs to consider whether he or he can finance it. Never forget that you are the beneficiary, but also the contributor. Insurance companies are saving money for you for another day, when you will need it most. Why then should you buy a cover which you cannot finance based on your income base? Remember that you will pay the premium as well as regular installments. Bear in mind that in some cases, the amount you will pay will depend on some criteria. In life insurance, for example, the amount you pay depends on your current health status, your lifestyle, age and profession, among other factors.

Finally, insurance is an industry that has its language and terminology that you need to understand. Do not rush to sign on the dotted line unless you understand what you are committing yourself to. If you are not conversant with insurance or financial matters, enlist the aid of a friend who does. You may also consult an expert. Read through the document several times. Ask for clarification, where necessary. Only when you are sure you understand all the stipulations, especially on your contributions and benefits, should you take an insurance policy.

 

Points To Remember Before Buying Term Insurance Policy

One cannot be sure of anything in life, except death. Life comes up with a sudden twist and changes, which need proper pre-planning to overcome. Before these sudden changes turn your loved ones’ life upside down insure your life for the sake of your family and friends.

Term Life Insurance‘ is the simplest and the easiest way to ensure that your family will be looked after even when you are not there for them. If by any chance you face a sudden or natural death, the nominee of your policy will be paid with certain amount depending on the policy that will at least help him/her to overcome financial hardship if not emotional.

Points to remember before buying the term insurance-

· The first factor that you need to keep in mind before buying the insurance policy is exactly when to buy it. It is advisable to insure your life as early as possible. As you grow old, the insurance policy becomes expensive. Moreover, the insurance company or an insurer might refuse to take risks if you have any medical condition. Thus, it is must that you buy the policy at a younger age so that you and your family can conquer the financial liabilities in the future.

· The second thing that you need to remember is the duration of the policy. For how many years your policy will be valid. It is better to go for a longer duration if you are young and if you are old then, a short period of time is just fine. The duration of the policy depends on your current age and your desired retirement age. So, subtract your current age from your retirement age and you will get the apt duration of your policy.

· The most important decision before buying policy is the level of the sum insured. This depends on your annual income and age. If you are young, then amount can be 15 times or more your annual income, but as you grow older the amount should be decreased because the risk level and your expenses increase. You should also keep in mind the increasing inflation before deciding the amount of money you want to insure as what is considered a big amount today is next to nil in coming years.

· Now that you have decided the amount, duration and exact age of buying the policy, the next decision that you have to make is from where to buy it. The insurance policy is a contract that depends on mutual trust, therefore; it should be bought from a company or a person you can totally trust. Ask your friends, check the internet or go for re-known insurance company to buy the policy. The price of a policy, rates and benefits that a particular insurer or company provides you is also a very good decision making factor.

· The other factor before buying policy is whether to buy additional protection through riders or not. A basic term insurance policy just covers one’s natural death, but what about sudden severe accident or critical illness. For those unfortunate incidents, these riders provide you with certain insured amount to the policy owner.

· While purchasing the policy, make sure that you disclose all the required information. From your personal details to your family details. If you will try to hide the information then, at the time of claim it might get rejected. The detail that needs to be disclosed includes-

a) Your medical and your family medical condition

b) Mention your addiction if you have any

c) Your personal details- physical appearance, age, gender and annual income

d) Copies of your birth certificate, identity proof etc.

Open your eyes and buy the insurance policy soon to enjoy the benefits it provides you.