Insurance - Page 5

Understanding Insurance: 3 Policies You Should Have and How to Use Them

Life is full of risks. When we lead long and prosperous lives, we are bound to run into pitfalls sooner or later. In fact, some of them are inevitable. Thankfully, there are ways to protect ourselves and our loved ones from some of the worst financial consequences of disasters, whether those things be expected or unexpected. If you want to rest easy knowing that you and your family are as protected as possible, then you’ll want to learn about these different types of insurance policies — and how to make the most of them.

Health insurance

You may get your health insurance through your job, or you may have a policy from your state exchange. Regardless, you should always have health insurance coverage. In the US, where medical debt is far and away the largest proportion of bankruptcies, you simply cannot afford to not have yourself and your family covered with a robust health insurance policy.

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However, health insurance is not just for those times when you get sick or need emergency care for an injury. The best way to use health insurance is to maximize your coverage for preventative health care. It’s a win-win situation: You’ll get superior proactive care, and your insurance company will be less likely to have to pay out lots of cash to your health care providers — because you’ll be a lot less likely to get sick!

Life insurance

Insurance is always about managing risk. Sometimes those risks are attached to inevitabilities, though. Whether we like it or not, we will someday pass away. When that happens, we’ll want to know that our families and loved ones are cared for. A life insurance policy that you pay into during your healthy years — hopefully many of them! — can be a godsend for your loved ones when you pass, especially if they are dealing with unexpected expenses or the loss of your income.

Life insurance can be used in the simple way in which it was designed, but you should know that it is also possible to draw value from your policy before your loved ones are able to file a claim. A viatical settlement can convert your expected benefits into cash now, which can be a big help with medical bills. Sometimes, and especially in cases of debts that generate interest, having cash now is worth a whole lot more than an eventual payment down the line. In those cases, viatical settlements can be crucial.

Homeowners insurance or renters insurance

No matter where you live, you should make sure that your space and the things within it are protected. Fires and other disasters can rob you of valuables at any time.

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And don’t assume that this sort of insurance is for homeowners only. Renters need renters insurance because their valuable possessions are at risk of all the same sorts of disasters that homeowners can face. Most people wildly underestimate the amount of things that they have in their homes and the total value of those objects. Don’t wait until it’s too late to find out how expensive it will be to replace your valuables. Protect your things up front, and be sure to get enough coverage.

You should also explore the options and features of your homeowners or renters insurance policy. Make sure that you’re covered for everything that you think that you are, and examine your options for riders and add-on policies that will protect special valuables like engagement rings, musical instruments, and more. In many cases, you can get protection that covers these things even when they’re outside of your house or apartment!

Health Insurance: a safeguard for health and financial risks

There is no one in this world who intentionally wants to get sick or hurt. Unfortunately, such an event is not predictable and can happen at any time. Most people will need medical care at one point in their life, and in case you do not have one, you can end up paying very high amounts for treatments and medical care, depending on the type of disease.

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Diseases which need many different types of medicine and medical gear, for instance, diabetes or cancer, can be very expensive over time. People without health insurance are exposed to these costs which could end up in high debts or the worst-case scenario bankruptcy. And as already mentioned, no one knows when such an unfortunate event will happen, and it is always better to be on the safe side and protected from high costs which could result from any medical treatment. Moreover, this is the best way for you and your family always to have the assurance that you will be taken care of in any medical case.

Types of health insurances in Thailand:

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In Thailand two different types of health coverages can be found, one funded by the government and one funded privately. The department of medical services at the ministry of public health funds the healthcare. Government hospitals, public health, and medical services are under the control of this ministry. Treatment is completely free for Thai citizens holding a universal coverage health card. The government-funded health care works as a basic type of health insurance, nevertheless, some drawbacks are linked with this type of health care.

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The capacity of the government hospitals can be exhausted at times, meaning that it can take a long time until a doctor has time to examine your medical condition. In case of a very serious disease or accident, waiting at the government hospital will make you lose to much valuable time, a few minutes more time could be already lifesaving in serious medical situations. In addition, facilities in public hospitals can be outdated or even nonexistent. In case of serious diseases, the government-funded health coverage is insufficient, is it advisable to get an additional privately funded health insurance.

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Private health insurance companies offer many different additional benefits such as no waiting time at private hospitals, appointments with the chief doctor or private hospital rooms. Private hospitals are well equipped with excellent medical facilities and staff. If you are in a severe medical situation, you will be in good hands in these hospitals.

Providers of private health insurance are AXAKrungthai, Bangkok Insurance, Muang Thai Life and Aetna.

In case you are interested to know more about health insurance in Thailand, see Rabbit finance.

Insurance Policy Types That Every Small Business Should Have 

Every business, large, small, or out of your garage, needs to think about insurance. However, small businesses often aren’t blessed with an entire department that handles insurance matters, so we compiled this list of essential policies that you should consider before settling on an insurance plan. 

General Liability Insurance 

This insurance is one of the most important you can get for your business. It shields you, your business and any workers from the costs of bodily injury, property damage, and even damages through advertising claims made against your business. Make sure you are aware of the reimbursement limit of your plan and that it makes sense for the needs of your company. 

Note that there is a difference between general liability insurance, which protects your company from claims from the public; and workers’ compensation insurance which protects employees on your payroll.  

Property Insurance 

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This is a key plan to search for if you are involved in any way with expensive equipment, stock or have a property that is essential to the running of your company. Property insurance will reimburse you for the structure of your business property and its contents if there is any damage to it or if anything is stolen. 

Small retailers are highly recommended to consider this option as stock replacement costs at the infant stages of business can cripple the company before it’s gotten started. Additionally, property insurance can cover natural events such as flooding, earthquakes, or fire damage. So these might be additions worth considering if your property is in a region with a higher chance of natural hazards.  

Workers’ Compensation Insurance 

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This is a payout to any employee that was injured at work and is an important plan if you employ anyone for your small business. Injuries can happen anywhere – a sharp corner on a desk, a slippery floor, or something more hazardous like a poorly secured ladder can all lead to injury. Both wage replacement while the employee is unable to work and any health insurance costs are covered by this plan. 

High-risk jobs like contractors, painters or anyone who operates heavy machinery are strongly advised to have this backup plan in case of injury in the workplace. This insurance means that the injured employee also cannot sue the company. You can find out more information on workers compensation insurance here.  

Professional Liability Insurance 

This insurance protects a company from claims against any service that has been performed inadequately whether it is in failing to perform a service or for a service that was incomplete. Sometimes, this insurance is known as ‘errors and omissions insurance.’  

This is useful to have professional liability insurance since general liability insurance, as described above, will often not cover damages that occur when a service was not performed. Businesses that provide a specialized service, such as a law firm, a nail salon, or even an insurance agent are the sorts of businesses that should consider this type of coverage. 

Vehicle Insurance 

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If you have vehicles specifically for your company, then you will need to get vehicle insurance to cover them. These plans will cover incidents such as vehicle damage and collisions to replacement vehicles if your one is undergoing repairs. This insurance also covers the contents inside the vehicle which is essential if you transport expensive equipment or products.  

Some small businesses do not have their own vehicles but instead get employees to drive their own cars or vans for business purposes. It is still worth having a vehicle insurance plan for these cars that are essential to your small business but are not officially owned by the company in case the employee does not have a personal plan that covers company-sized expenses.  

Homeowners’ Insurance 

If your business is largely operated from your home and you do not rent a property commercially, then a good home insurance plan may be best suited for you. This is similar to property insurance but pertains to personal property rather than commercial property. Some natural damages are covered by this, such as lightning strikes and windstorms, but there may be additional charges for fire and floods. 

This is a good starting point when contemplating insurance for your small business. It can seem like a huge task, but consolidating all of your insurance plans and knowing where you are covered can smooth over hiccoughs quickly.  

What types of insurance policies young people must have?

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The right time to begin investing is when you are young and are in a better position to manage investible funds after meeting all your expenses. It is during this time that you can devise a workable financial plan and set your goals to secure the future of your family and build a healthy corpus for your retired life. At a young age you not only have the widest possible options, but you can also contemplate risky investments to add muscle to your projected wealth. Among the identified and obligatory investment options with great import is your choice of life insurance policy. It is an important tool that helps you to secure the financial future of your family as well as create wealth in the long term. Life Insurance companies have a wide variety of plans to meet your specific needs with a budget and objective in mind.

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Why is insurance important?

Life insurance provides financial security to your family in your absence with an assured death benefit payout to your beneficiary if you meet death during the policy term. If you survive, you are paid maturity benefit comprising sum assured and bonus during the term period. All this and much more is provided against a fixed sum called premium. Insurance premium has flexible options of monthly, quarterly, half-yearly, annual or one-time payments.  To top it all, Life Insurance provides for handsome tax concessions under the IT Act 1961. Other than life insurance products, there are also general insurance products which one needs for protection against financial losses in the form of Health Insurance, Motor Insurance, Home Insurance, etc.

What are the types of Life Insurance offered by the insurers in India?

The various types of Life insurance products available in the Indian market with multiple variants of each type make you spoilt for choice. Some of the indicative plans are:

  • Term Plan: This is a basic insurance product and is also referred to as a pure protection plan. The key feature of best term insurance plan is that it offers a very high sum assured at an affordable On expiry of the term, the premium is not returned.
  • Endowment Plan: This is also called insurance plus savings plan. You are provided with life cover with a savings element which is allowed to grow with additions declared from time to time.
  • Unit Linked Insurance Plan (ULIP): It is a hybrid product that provides for insurance coverage and investment benefits yielding high returns through market-linked
  • Child Plans: Your aspirations revolve around the dreams of your children. These plans specifically cater to the milestones comprising your child’s education or marriage.
  • Retirement Plans: These plans allow you to plan for your retired life that essentially works out in your favor with a handsome corpus or pension income when you have no other means of earnings to fall back upon.
  • Health Plans: These plans meet your medical expenses in the event of emergencies, both for you and your dependents, including your parents.
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Benefits of Life Insurance:

Life insurance is not viewed as an investment vehicle, but for the many advantages, it provides you with every plan. Some of the key benefits may be enumerated thus:

  • Life Cover: It protects you from life risk, in turn securing the financial future of your family in your absence.
  • Investment Vehicle: Many plans offer you the means to earn returns from your investment in addition to the life cover.
  • Wealth Creation: With returns for investment assured with most plans, you can build wealth, in the long run, catering to your future needs.
  • Tax Savings: Generous concessions in tax exemptions make Life Insurance products doubly paying and an important cog in the wheel of financial planning. Premium paid in a financial year to a maximum of Rs.1.5 lakhs is tax-free under Section 80C of the IT Act 1961. Death benefit and maturity proceeds are exempt under Section 10 (10D).

What insurance products should the young choose?

The biggest benefit that beckons the young towards insurance products is the premium amount. The premium is fixed primarily by age; so the young start with the lowest premium. You are also able to buy policies with the longest terms which is a boon as the creation of wealth works best over the long term. When you are young the policies to choose to keep your goal in mind are:

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  • Term Plan: The best term insurance plan offers you the opportunity to protect your family in your absence with a high death benefit at an affordable cost. .You can augment the cover with several riders like Accidental Death, Disability and Critical Illness. Generally, there is no payout on maturity. LIC online term plan is one such. It is named e-Term which offers a term range spanning 10 to 35 years. The cover and premium vary if you are a non-smoker and you attract additional benefits.
  • Health Plans: This plan is another must when you are young. It not only provides for meeting financial expenses in medical emergencies, but it also provides you with tax concessions under Section 80D of IT Act 1961 for Rs.25000 paid in the financial year. You can augment your tax concession by buying health insurance for your parents who also get an exemption for a like amount, but if any of them is a senior citizen, the amount is Rs.50000. In case you have a family it makes good sense to buy a floater health insurance which covers for the entire family. You can consider buying Top-ups for enhancing the cover with a much lower premium.
  • Unit Linked Insurance Plan (ULIP): This plan scores over the endowment plans because of the high returns these plans offer from market-linked instruments in addition to the normal life cover. They come with a lock-in of 5 years. These plans are also tax-free under the provisions of Sections 80C and 10 (10D) of the IT act 1961. The high returns very similar to those from Mutual Funds, help you to nurse the health of your wealth.

Bottom Line:

The advantage of your age helps you to buy the best term insurance plan with a high sum assured over the longest term possible at a low price. When you are young, the options open to you are many and you are amenable to take risks. In such a scenario, opting for LIC plan is an ideal option.

How To Deal With The High Costs Of Personal Injuries?

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Personal injuries are a nightmare for individuals, regardless of the nature of their work. Disability as a result of accidents is likely to severely impact the quality of life, in addition to income deprivation. An individual who suffers from certain injuries will not be considered for certain jobs that were handled earlier and this will affect future of individuals. It is therefore necessary to ensure that victims of accidents and grievous personal injuries seek adequate compensation to manage the medical expenses and for leading a dignified life. Here is all that you need to know about this.

Awareness Of Possible Lifelong Medical Expenses

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Individuals who unfortunately fall victims to accidents, need to be aware of the possible impact of certain injuries. The individual may have to life with the prospect of possible lifelong medical expenses. The expenses may be required to manage the condition and make suitable changes in lifestyle to accommodate the life changing effects of injuries. Most individuals fail to understand this impact and are mostly concerned about completing the hospitalization phase and heading home. A good Baton Rouge lawyer who specializes in handling personal injuries and accident claims will be in a position to help individuals understand the impact of injuries and possible compensation claims.

Seek Fair Compensation from the Insurance Companies

Insurance companies routinely deal with thousands of claims, and follow a procedure that would try to limit the expenses as much as possible. Victims of accidents, who seek compensation, often end up accepting and settling for lesser than adequate compensation. This may appear enough to begin with, but in the long run, victims find that the compensation is inadequate to meet expenses. It is therefore necessary to seek compensation that is fair. The use of a good and experienced personal injury lawyer will help in dealing with the insurance companies.

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Present A Watertight Case In Court If Necessary

Certain cases may require to be contested in court and this is an area that certainly needs the assistance of expert accident injury lawyers. A very small percentage of lawyers specialize in accident injury and it is absolutely essential for victims to use the services of layers who have expertise in handling accident cases. It is necessary to present the case in court in a manner that will prove beyond reasonable doubt that the victim is justified in seeking a certain amount as compensation. This involves knowledge of various laws of evidence and skills in adducing the same to the satisfaction of the court.

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Accident injury cases also mandate the need for presenting medical evidence and examining experts about the possible impact of injuries in future. For instance, certain debilitating injuries may require alterations in residences and lifestyle. This may also impact the possibility of continuing in a profession. It is therefore necessary that all facts be presented in court in a manner that will get a favorable order of compensation. This can only be achieved with the help of legal experts who practice specially in accident injury.

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