Tag Archive for Insurance

Advantages of Personal Accident Insurance

Accidents are uncertain and it can happen at any point of time in your life and the impact can be devastating. It leaves a terrible impact on your finances with high costs against hospitalization and medical treatment, until you are recovered completely. In such difficult situation, it is personal accident insurance that will help you keep your finances smooth and in order.

Personal accident insurance is designed to provide coverage to a person against accidental injury, accidental death or disablement that can take place either at home or outside. This coverage protects you and your family’s financial security in the event of an accident or disability.

Personal accident insurance is highly recommended for people working in construction, heavy industry, mining, etc., where people are at a higher risk to accidents. It benefits the insured person with a lump sum, hospital fee and monthly tax-free income, if he/she is seriously injured in an accident which makes him/her unable to continue work.

In this article, we discuss briefly the benefits of personal accident insurance policy and how it helps the insured person from financial hardship.

Benefits offered by personal accident insurance policy
The benefits of personal accident insurance are numerous. Therefore, stop thinking whether you need to avail one for yourself, it is worth your investment. Benefits from the policy are:

  • Provides lump sum amount of cash based on injury: Personal accident insurance provides a lump sum amount to the insured person on sustaining permanent disability or death as a result of an accident.
  • Compensates hospital fee: Personal accident insurance policy reimburses the cost of your treatment, medical expenditures and use of hospital facilities or if hospitalized for further treatment for your injury. Take an example: If you are insured with personal accident insurance and were involved in a serious road accident, due to which you lost a limb, then this policy will take care of your hospital fee.
  • Monthly tax-free income: With personal accident insurance, you receive the benefit of monthly tax-free income, if you are unable to work as a result of serious bodily injury in an accident.
  • The coverage is global and is paid in the host country’s currency, tax free: This policy offers compensation regardless of the place of accident. In other words, even if the person affected is from a different region of the globe the coverage is valid. For example: Suppose a person from UK is working in US faces an accident and had purchased personal accident insurance in UK, then he will be paid the compensation in US dollars and the tax deduction loss is also applicable.

Therefore, having covered with personal accident insurance is a sensible decision to avoid financial problems as well as to handle financial crisis situation in case you meet with an accident. Because life must go on, no matter what.
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Different Types of Insurance

There are many types of insurances available at present. The ‘type’ refers to the purpose of the insurances serves. Thus, health insurance is meant to protect health from the risks to health. When there is any probability of risk, insurance comes to rescue one from the risk of hazard. For example, fire, marine, automobile, life, health, etc. Now we will see some of the important insurance types.

Life Insurance
Life insurance provides monetary benefit to the policyholder or to their family or the beneficiary dependents upon the agreement. Life insurance is offered according to risk involved and duration for which the policy needs to pay. The following forms of life risk are offered.

  • Term insurance: Term insurance enables one to buy insurance at specific price and for a specific period. If the insurer die during the term, beneficiary will get the amount.
  • Whole life insurance: Whole life insurance is similar to the term insurance, but the policyholder has to pay the premiums to his/her whole life. Some companies may invest those funds or give the dividends to the policyholder according to the company policy structure.
  • Universal life insurance: It is similar to whole life insurance. The policyholder has the flexibility to shift the money between life insurance and the savings account. Premiums, death benefits and savings elements are reviewed according to the policyholder’s circumstances.
  • Variable life insurance: Variable life insurance gives permanent protection to the beneficiary. It allows the beneficiary to invest part of premium into the other portfolio like stocks, bonds, equity funds, etc.

Automobile Insurance
Automobile insurance is known by different names like auto insurance, vehicle insurance, car insurance, etc. Its aim is to protect the policyholders against the financial loss when the event of an incident. The events can be theft of vehicle, damaged in accidents, etc.

Health insurance
Health insurance is provides the benefit to policyholders to cover the medical expenses. Dental insurance is to cover the expenses relating to dental treatments. This might be in the form of reimbursement of expenses to the beneficiary, or the insurer paying the service provider (hospital, etc.)

Marine insurance
Marine insurance covers the risk to ship, ship hull, cargo and freight. It covers the risks like ship attacked by enemies, collision with rock, fire and capture by pirates, etc.

Fire insurance
Fire insurance is to cover the risks from fire. It should be an individual property or company or any other thing.

Property insurance
Property insurance is to protect from the risk of loss of property. The properties like agriculture crop, animals in business, machines, etc.

Disability insurance
Disability insurance is to cover a person when the policyholder does not have the income because of a disability of any sort. Disability insurance provides part of wage that the beneficiary was to get if they were on the job.

With disability scheme the insurance company will pay monthly installments to the policyholder according to the plan purchased by them.

Insurance for different purposes is being offered by insurers. There are so many other types of insurances available by a number of companies. The policy terms and conditions vary across insurers, and according to local government laws. Businesses and people who are planning to purchase insurance can choose an insurer according to their requirements.
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Importance of Auto Insurance

Automobiles plays an important role in every ones life, we need vehicles to move one place to another place. Without auto mobiles we can’t even imagine our daily life. Driving vehicles is difficult in some times. Like high traffic areas, In such cases there may be a chance to get hit by other vehicles. So auto insurance is very important to consider for anyone’s case. It not only the solution for vehicle damage but also it helps to your medical insurance bills. Some times even though you are driving in very careful manner the other people may not follow the rules. In that time he is going to involve you in that accident. Automobile insurance is also pays when some nature acts happens. Like hail storm. And also if any tree fall on your car also your insurance company will pay. Some times it will not pay the all amount. But it will pay some less amount in different types of accidents. The insurance claim is depends on the type of accident.

Many people thinks that insurance is not so important, because we need to pay monthly premiums and all. But having an insurance is really very important. If we met with any accident, assume that you don’t have an insurance for your car, you need to pay the persons medical bills and you need to pay for his vehicle damage. That is a huge amount you can loose many assets of your at that time. Some times nature problems also creates much damage on your car. Like heavy winds and hail storms. So auto insurance is very important for all vehicles.

Payment for the insurance companies is called premiums. These premiums we can pay monthly, quarterly, and yearly. According to the company agreements and policies it depends. The persons age, sex, occupation, type of the car, these all are the factors which will decide the premium amount for your insurance.

Other factors for importance of auto insurance

  • Having an auto insurance means you are protecting the big investment which you made on your vehicle.
  • You are in a position to pay the medical bills when you met with an accident.
  • If you have insurance for your car you will be feel like secured. That security feeling gives you happiness and satisfaction while driving your car.
  • If you are unable to pay for high premiums monthly, it is better to take a car which is in expensive. Because for expensive cars the monthly premium is more compared to normal ones.
  • Keeping your record clean means if you met with any accidents then due to your record you need to pay very less amount.

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Dental Insurance – Importance and Types

Dental insurance is a financial plan that pays for the costs associated with oral or dental care. You should visit dentist every six months to make your dental insurance more effective as it will cost less if the problems are detected in early stages. Leaving the problem untreated can make the treatment more complex and also expensive. In this article, we will discuss the importance of dental insurance and different types of dental insurance plans.

Importance of dental insurance

Proper oral care does not mean merely brushing and flossing, it is much more than that. You need to visit dentist every six months to get your teeth checked and cleaned by him. This is more obvious for children as they tend to consume a lot of sweets and chocolates, which can cause tooth caries. Visiting the dentist regularly can help in identifying the problem and treating it in early stage.

Sometimes, dental procedures becomes costly when not done in early stages. Without dental insurance, these treatments can easily and quickly increase your expenses. People often don’t understand the importance of visiting a dentist, and this is more common with the people who do not have dental insurance. It is important to have dental insurance as it will make you visit dentist regularly and problems of your mouth are identified in initial stages.

Types of dental insurance

Following are the types of dental insurance plan :
1) Dental Health Maintenance Organization (DHMO)
Dental Health Maintenance plan is also known as pre-paid plan and one of the best options for families. This plan requires you to choose a dentist to coordinate all your oral need. And, if there is a need for you to see a specialist, preauthorization is required for specialty care. You need not pay the dentist for his service as the payment is made in advance. But if you are visiting a dentist outside this plan, you need to pay the entire bill amount.

2) Preferred Provider Organization (PPO) plan
Under PPO, when you visit a dentist, you need to pay certain percentage of the treatment cost and the rest is paid by the insurance plan. The amount for payment depends on the type of coverage in insurance plan like preventive, diagnostic care or major dental procedures. For instance, 80% of the fees of preventive services are covered by the insurance plan and you have to pay 20% of the amount. While if the treatment includes crowns and bridges, 50% will be covered by insurance company.

3) Indemnity Dental Insurance Plan
If you choose Dental Indemnity Plan also called free for service, you are free to visit any dentist you wish. Sometimes preauthorization is required for certain dental procedures. This plan requires you to pay an amount (deductible). After paying the deductible, your insurance company will pay some percentage for the dental services you have undergone.

Dental insurance is important to because of the high cost of dental care. Choose a plan according to your need and affordability. Read more

Types of Travel Insurance Coverage

Travel insurance can protect you from significant losses that result from a variety of situations, including canceled trips, lost baggage, medical emergencies, financial troubles of major tour operators and airlines, and the prevalence of nonrefundable airline tickets as well as other unforeseen circumstances such as natural disasters.

There are many different types of travel insurance policies are available, ranging from trip cancellation insurance to emergency medical evacuation. All policies coverage varies from company to company and also costs depend on type of the company. Before taking any policy you have to know exactly about what your policy will cover and will not cover. And always buy your insurance from a reputable company.

There are several types of travel insurance are available. Below are some of the following brief descriptions of some of the types of travel insurance.

  • Trip Cancellation: If a trip is canceled/postponed or interrupted due to unforeseen circumstances, trip cancellation policy covers the non-refundable payments or deposits to you. Mainly this coverage is meant for illness, injury or death suffered by the insured or a member of the insured’s immediate family.
  • Medical insurance: It includes several types of coverage. Emergency medical evacuation insurance is one of the coverage of medical insurance and it covers the transportation cost for the injured person in order to be evacuated for treatment to the nearest medical facility. This insurance is highly recommended for cruise passengers and adventure travelers visiting remote areas. Accident/Sickness Medical Expenses is also one of the insurance which covers costs incurred due to injury or illness that occur while on a trip.
  • Supplier default insurance: It covers payments or deposits lost due to the bankruptcy of an airline, cruise line, tour operator, or other provider of travel services.
  • Loss of Baggage loss and delay coverage: It protects you in the case that if your luggage is lost, delayed or stolen. This often includes a cash payment if your bags are delayed for more than 12 hours after you arrive at your destination. This covers your rental car in the event of an accident and your baggage and personal items if they’re lost, damaged or stolen.
  • Travel document protection: This helps you to replace a passport or other travel documents when they’re lost or stolen.

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