Tuesday, April 17, 2018

How Accurate Are Home Owners Insurance Calculators?

Homeowners insurance in Houston

One of the wonderful aspects of the Internet is that it gives you the ability to find out home insurance pricing on a large scale. In fact, you can even get an accurate number on how much it would cost you to buy the home or car of your choice, including what your monthly payments would be and your interest rate based on your credit history.

Not all home insurance carriers are the same

The frustrating thing is that there are some industries where the value you are quoted rarely seems like the amount you will actually pay in premium. This is especially true within the homeowner’s insurance industry.

Most people head to a site, enter their personal information according to what is asked of them, and they are given a value of what they would pay yearly to protect their home. They agree to that amount and then they are told that some further evaluation is being made, and to hang on for a few moments. Thirty seconds later, the value appears on the screen and it is not what they were quoted previously.

Even more aggravating is the fact that the amount you are to pay always seems to go up. There rarely seems to be a time where the amount you will pay goes down. So, what causes this? It may make you wonder how accurate are our homeowners insurance calculators?

Houston Home Insurance Quotes

Texans don’t take too kindly to this kind of chicanery, and with good reason. They expect to pay what they are told they need to pay and are understandably a little irritated when a different amount is told to them. So, what is behind all of this?

The truth is that most of these online calculators that you will come across are basing insurance on very basic kinds of information. Because of privacy laws, they cannot ask you very private specific questions like social security number upfront, so they don’t have the full picture of what the insurance cost may be when they make their initial cost analysis.

They Are Being Real

Consider that there are many people who are understandably concerned about having their personal information stolen and used for nefarious reasons. If an insurance company asked you for your social security number, driver’s license number, address, and information about your employment upfront, you probably would close that webpage down right away.

They have to make an assessment based on the information you provide, which is usually no more than the amount of money you make, have you had insurance claims in the past, and the value of your home and property. This allows them to create a rather superficial determination of how much you would pay to protect your home and property each month.

It’s partly about your integrity so be honest

While this may be a little irritating to you, the truth is that you actually have a part in how accurate the value is that will be displayed to you. A lot of people think that if they leave off prior claims or accidents they may have had, the insurance company will not be aware of this and they will be able to get a lower rate based on their withholding of information.

Keep in mind that they are going to have a complete record of all kinds of claims you have made. This means that if you are withholding information, they are still going to find it out before they give you the final quote. It is to your advantage to make sure that you are being upfront and truthful when supplying the information asked initially.

Understand that these calculators are just a tool. They are giving you an idea of what you may pay each month, but it is up to you, to be honest, and upfront with them so that you get the most accurate initial value to what you will pay for the yearly homeowners insurance in Houston.

Friday, December 15, 2017

Top 9 Commonly Asked and Answered Life Insurance Questions

Life Insurance Houston

Life insurance in Houston may be referred to as the most important investment in your life, since you are doing it to take care of your loved ones when you are not around. Therefore, making the right decision is very critical. Choosing the right policy may be seem very difficult at first, but you can make the right decision after being informed of all the necessary details.

When people are looking to buy life insurance, they come across a number of complications. Many questions come to mind that they do not know the answers to. Keeping in view the concept of life insurance, it should be simple enough to understand. But on contrary to the expected simplicity, there are things that always prove to be very confusing. So, to make it a little simpler for you, 10 of the most commonly asked questions regarding life insurance are answered in the sections below.

1    What is the right amount of insurance for you?

When it comes to defining an amount for your life insurance, nothing seems to be adequate. Therefore, it is strongly recommended to go by the rule of thumb according to which you are supposed to multiply your annual salary ten times.

2     How long should the term of your insurance policy be?

The answer to this question depends upon your current age. For instance, if you are living your mid or late 30s, having a life insurance for 30 years might be a good idea.

3     How to figure out the best life insurance provider?

When you are planning on getting a life insurance, you come across numerous choices. But it is strongly recommended not to go for the first option that crosses your path. You need to research different insurance providers to find out the one offering the best benefits.

    What is the difficulty level of life insurance exams?

If you are a healthy person, there is no need to worry about anything. All you need to do is follow the instructions that you are asked to follow before appearing in a medical exam and you are good to go. On the contrary, if you are not confident about a perfect evaluation, you could always go for policies that do not require a medical exam by paying more money.

     Term insurance or whole life insurance?

If you are interested in arranging the right amount of money for your family, the best option is to go with term insurance since life insurance can be pretty expensive as you are getting it for your whole life.

6      Premium life insurance return – recommended or not?

Premium insurance can be very expensive. Keeping in view the benefits it offers, it is not worth the investment. The better choice is to get a life insurance policy and invest the extra money somewhere else.

7      Is it recommended to get life insurance for kids?

Personally, I see it as a good choice since your kid has their whole life ahead of them.

Bonus - How to look up for the rating possessed by your insurance provider?

There are different websites that provide information on ratings associated with different companies. You may check them out to find your answers.

     What happens in the event of your insurance policy lapsing?

In case your insurance policy lapses, it is strongly advisable to coordinate with your insurance provider, pay off the owed money, and get it back up and running.

     Should you ever buy more life insurance policies?

It is recommended to carry out an analysis of your existing life insurance policy after coming across different major life events. If you think you haven’t got the right coverage amount, it is recommended to purchase more policies. 

Visit our other insurance blog for other interesting reads.

Monday, December 4, 2017

How do I choose which life insurance is the best for me when there are so many options?

There are many people who at some point in their life struggle to spend days happily and pay their bills on time every month. These awkward situations might be the result of the economic environment of the country or because of internal personal issues.

Now, the economy all over the world and especially in America is on the greener side and people are paying close attention to various savings and retirement plans – and that constitutes life insurance as well.

Suppose that you are single and young, and do not make much money, then most would think life insurance wouldn’t be a concern. But, if you have dependents like children, spouse and aging parents, then in the unfortunate event of your death, they may suffer financially. So, it becomes more of a necessity to have a life policy.

But with so many options available, a life insurance buyer mostly gets confused. There is nothing surprising if you are also confused about the advantages your life insurance policy should feature. This article is aimed to remove the confusion you have about buying a policy.

Many surveys from different insurance quote websites conclude that today, almost 40 percent of Americans don’t have a life insurance policy and that around 35 percent of insured people do not completely understand their policy’s terms.

So, there is nothing to be more confused about anymore as there are broadly two types of life insurance people usually buy. They are called “permanent” and “term” life insurance.

Permanent Life Insurance

A permanent life insurance covers you for the whole life until your death. It does not matter if you die tomorrow or after completing more than 100 years, the death benefit will be paid. Furthermore, it is also a savings element which provides many tax benefits. It can also be a source of temporary (borrowed) funds to fulfill various purposes. Tip: Read your policy thoroughly as coverage can change from policy to policy.

A permanent life insurance can also help to borrow funds against it if you have a life event. In borrowing, the loan’s collateral is the death benefit. When death happens before repaying, firstly, dues will be repaid and then remaining amount will be paid to beneficiary.

Term Life Insurance

A term life insurance is best for people who want the coverage for a limited time period. For example, suppose that you are a homeowner, married with kids, who has a 30 year mortgage debt to repay, then, you can buy a term policy to prevent losing the property to the bank. Furthermore, your family will be able to keep the property without having to worry about finding another placed to stay.

In case you want higher coverage at a low premium, then you can go for term life insurance. You remain protected till the time period selected. If low premium and higher coverage in this kind of insurance are the positives, then this is a policy you should consider.

Although, these options will offer a level of protection, both permanent as well as term can be a good thing to have but remember the final decision should always be dependent upon the needs, preferences and pocket of the buyer. That’s why it is always suggested to do proper and thorough research before buying any policy.

You should note that if your financial requirements change over time, term life gives you the opportunity to convert it into a permanent policy. Generally, the conversion will not involve any medical examination, only higher premiums should be paid.

In case of permanent life insurance, the premiums are higher from the beginning and remains constant based on the duration selected.

So, these are the two broad choices you should consider choosing from a policy. Before finalizing the purchase of any policy, ask a lot of questions, especially about the coverage time, fees and charges, loan options and flexible repayments as a start.