Are You and Your Home Protected and Ready for Tornado Season?

Tornadoes are a fact of life in Florida, and it seems that more of these powerful storms impact the people who live here each and every year. There are some steps that you can take to ensure that your family and your home are protected - both physically and financially - when these storms rear their ugly heads. 

Preparing Your Home

Believe it or not, there are lots of things that you can do to prepare your home and property for the impending tornado season, and some of these can even help you save money on your homeowners insurance. For instance, you could replace a gravel driveway with the shredded bark products that are available all over the country these days. It’s less expensive to maintain in the long run and it does far less damage when it is airborne. You could also consider installing windows that are designed to resist impacts; this is a great investment in the long run because it also provides better insulation than traditional windows. Finally, make sure that all of your lawn furniture and decorations are secure.

Make a Home Inventory List

If you have never created a home inventory list or the one you are currently relying on is outdated, you might want to consider making one. To do it, simply walk around your home and write down everything you own that is of value; electronics, appliances, jewelry, expensive clothing, artwork, décor, heirlooms and more can all go on this list. Then, write down each item’s approximate value before making two copies – one for yourself and one for your insurance company. In some cases, you might even want to attach photos in the event of any discrepancies. Then, in the event that the worst happens, you’ll know exactly what you need to replace.

During the Storm

When bad weather strikes, there are some things to keep in mind. First, you should know the difference between a tornado watch and a tornado warning. A watch means that conditions are favorable for a tornado, but a warning means that one has been spotted and that the brunt of the storm is imminent. You should seek shelter in the lowest level of your home – preferably a basement – in an interior room or closet with no windows. Listen to a battery-powered radio and only come out once the all-clear has been given.

Cleaning Up

If you are provided with the all-clear to reenter your home after a significant event, you should take precautions. Always wear a mask, gloves, and shoes that fit well and protect your feet from sharp debris. Your standard insurance policy will cover damage from tornadoes in most cases, so if you don’t have one, you can go to www.cheapinsurancefl.com to find your best options. If you do have one, make sure that you contact your representative or agent immediately following the event. In some cases, you may receive funds to stay in a hotel until alternate arrangements can be made, and this can certainly make life easier after such a traumatic event.

Tornadoes are terrifying and destructive, but they are a part of life for almost everyone in Florida. Knowing what to do before, during and after the storm can not only save your sanity, but also your life. 

Update Your Home with Your Tax Refund to Reduce Homeowner's Insurance Premiums

If you’re really interested in saving some money on your homeowner’s insurance this year, then why not use your tax refund for a few home improvement projects? Rather than spend that money on new expensive gadgets that may only raise your premiums in the end, you can perform some repairs and updates that will increase your home’s value and reduce the cost of your insurance at the same time.

Get a Security System

Whether or not you live in a neighborhood that is known for crimes like burglaries, installing a home security system will provide you with three benefits. First of all, your family and possessions will be protected in the event that a burglary does occur. Second, your homeowner’s insurance premiums will be reduced since the likelihood of a theft reduces dramatically. Finally, the value of your property increases, so if you decide to sell your home, you can ask for more money.

Fix the Roof

Even if it isn’t leaking (yet) there are some updates you can do that will help you save money on your homeowner’s insurance. In fact, there are many insurance providers out there that will provide a nice discount when you update your roof with impact-resistant materials simply because it reduces the odds that you will have to file a costly claim after a hailstorm, snowstorm or other event. Sometimes, this can be as much as 10%!

Consider Rewiring

Although rewiring your home is a big job and one that might put you and your family out of sorts for a while, there are some huge benefits in doing so. Outdated wiring is dangerous, so if you still have old-fashioned fuse boxes and ungrounded non-GFI power outlets, consider updating everything. Again, this reduces the odds that you will need to file a fire-related claim and may save you some money on your premiums.

Put Up a Fence

Finally, when you choose to put up a fence around your yard, you can also save some money. In many states, and in Florida, as well, should someone walk through your yard and get hurt, your insurance may be left to pick up the bill – even if that person was uninvited or perhaps even trespassing. As such, putting up a fence will deter people from coming into your yard uninvited, thereby reducing the likelihood that someone will get hurt on your property.

Check Your Plumbing

While flooding is a concern in some parts of Florida and separate insurance policies are designed to cover this, floods caused by plumbing issues are an altogether different story. Brittle pipes and failed connections cause thousands upon thousands of dollars, and more homeowners than you might think are faced with this problem annually. If it’s time to update your plumbing, then you can certainly reduce some risks here, as well.

If you are looking for ways to save money on your homeowner’s insurance, or perhaps you’d like to see about getting a cheaper policy with ample coverage, then visit www.cheapinsurancefl.com for some ideas. There are always great ways to save on your premiums if you know where to look. 

Stay-at-Home Parents and Life Insurance: Is It Necessary?

These days, the costs of child care have created a brand new generation of stay-at-home moms and dads who work hard every day to take care of children and household duties. When it comes time to purchase life insurance, however, these people often believe that they don’t need much coverage if any at all. Here is a rundown of how life insurance figures should be calculated for stay-at-home parents and why it is so important.

Employer-Provided Options

In some cases, stay-at-home parents may receive some life insurance from their spouses’ employers. These individuals often feel as if this coverage alone is enough because, after all, there wouldn’t be any income to replace. However, what people fail to realize is that even when they do not work outside of the home, they are providing valuable services that would be very costly to obtain following their deaths. As such, it is important to consider these costs and factor them in whenever it comes time to purchase a policy.

Value of Policies

For a stay-at-home parent who is covered under his or her spouse’s employer-provided life insurance policy, the value of the policy is generally between $20,000 and $30,000 with a maximum of around $50,000 according to national surveys. While this might seem like enough since a stay-at-home parent has no true income, it is important to consider the value of the services that are being provided in the home. Child care and other domestic services aren’t free in today’s economy, and these are things for which the spouse of the decease will pay – and pay a lot, according to various sources.

Child Care

The average American family has two children, and factors such as the ages of these children and the states in which they reside will have a huge impact on the cost of child care. For instance, while the annual cost of infant care in Mississippi was under $5,000 in 2010 according to the Child Care Resource and Referral group, it was over $10,000 in the District of Columbia in the same year. In Florida, it was estimated that child care for a single infant in 2010 was about $7,000 for a year, and inflation has likely driven up these costs. Plus, if there is more than one child in the household, these costs raise significantly.

 Other Domestic Services

Aside from saving a family more than $10,000 per year in child care services in the case of a two-child family, a stay-at-home parent provides other domestic services that are of great value. They drive children to practices and doctor’s appointments, they provide housekeeping and laundry services, they prepare meals, and they provide a support system to the entire family upon which it is impossible to place financial value. According to a poll by Salary.com, the economic value of a stay-at-home parent tops out at an average of more than $100,000 per year.

If you are a stay-at-home parent, your life insurance policy is just as valuable as your working spouse’s. A good rule of thumb is to purchase a policy large enough to make up for any financial burden after your passing and then some. After all, these funds will go to your surviving spouse and children in order to help them pay for college and other expenses. You can find affordable policies and information at www.cheapinsurancefl.com. 

Retirement is One Thing that Married Couples Should Do Separately

Married couples do a lot of things together, including purchasing life insurance policies, going on vacation, buying homes and more. However, retirement isn’t one of the things that couples should do at the same time. It can have a significant impact on the household budget, and that’s why it is best when couples choose to stagger their retirement.

The Emotional Effect

First and foremost, before even considering all of the financial implications of retirement, it is important to understand the effect it can have emotionally. Many people have established senses of identity through their employers, and giving up a career that they’ve had for a number of years can really take a toll. Retirees often need some time to reestablish themselves in the world through hobbies, groups and the like. Couples who retire at the same time are faced with these issues together, and this means that they won’t be able to support each other to the best of their abilities.

Financial Implications

For many married couples, it is best for the primary breadwinner to continue working for about five years after the retirement age of 65. This has two primary effects on retirement savings. First, considering that someone earns an average of $50,000 per year during these five years and places 15% of that income in his or her retirement account, this means that an additional $7500 a year for five years or $37,500. Lastly, that retirement income won’t be touched for the entire five years. This means that the couple will have more money to live on annually once they have both retired.

Health Insurance

If one individual – or perhaps even both – has healthcare that is provided through his or her employer, then there are even more savings to be realized by waiting another five years to retire. One of these individuals won’t be required to purchase insurance that is supplemental to Medicare, and chances are that this individual will also have a life insurance policy integrated into their benefits package. By waiting five years to take over these expenses, thousands of dollars can be saved. After retirement, affordable policies are available at http://www.cheapinsurancefl.com/types-of-insurance/. With just a bit of information, you can get a comprehensive quote for all of your insurance needs.

Existing Obligations

While many people manage to pay off their mortgages, cars and other major expenses prior to retirement, there are an equal number of people who do not. In fact, it is becoming increasingly common to find people who have been retired for as many as five years and who are still making monthly mortgage payments. In this case, it may be in your best interest to see about having the remainder of your loan refinanced so that monthly payments are smaller. Of course, if you can afford the payments as they are, then this is acceptable as well since your loan will be repaid more quickly.

Overall, retirement is a very important phase in life and one that kicks off what are known by many as their best years. Traveling, socializing, and all-around fun should be the focus of these years, and there is no better way for married couples to do that than to stagger their retirement. 

Five Things to Do Before You Retire

Retirement is an exciting prospect for many people, but seldom does anyone truly prepare for their golden years. The following five tips will help you ensure that you are ready to say goodbye to the workplace and hello to the best years of your life.

Decide How Much Health Insurance to Buy       

In the event that you’ve had health insurance through your employer, there’s a chance that you may be able to continue it after your retirement. However, if this isn’t an option or if it will be too expensive for you to continue under the same plan, then you might need to seek out other options. You’ll be eligible for Medicare at age 65 but, for many people, this coverage is simply not enough. You should weigh your options, consider your current state of health, and purchase a plan that won’t break your budget.

Create a Last Will and Testament

This can be a difficult prospect for some people, but it’s something that needs to be done nonetheless. Here, you’ll want to consider how much life insurance you have (and you’ll also want to purchase some if you haven’t yet) and how it will be divided among your family and loved ones after your death. You will also want to declare how your physical property – including any real estate you own – should be handled. Finally, make sure that you include a ‘living will’ which is a declaration regarding whether you want life support or even CPR in the event of a medical issue.

Finish Paying On Your Mortgage

More than likely, your mortgage (if you have one) is your biggest expense. You’ll want to make sure that you’ve paid this off, and if you can’t pay it off altogether, you can also look into refinancing so that you can receive a lower monthly payment. Another option is the reverse mortgage, but this is something that many people don’t fully understand. After your death, if you are the only person living in that home and the only name on the title, then your home will be possessed by the bank that provided the loan.

Check Pensions and 401(k) Plans

A lot of people rely on their pensions and their 401(k) savings after retirement, but few people actually understand how much they’ve saved or what will be provided to them. If you’re considering early retirement, keep in mind that your pension is likely to change drastically. Similarly, in the event that you attempt to withdraw funds from your 401(k) plan early, you’ll be penalized for that, as well.

Host a ‘Trial’

Once you’ve gotten all of your affairs in order, one of the best ways to make sure that you’re prepared for your retirement is to live as if it’s already occurred for a period of two to three months. Stick to your budget and your plan, and if something seems amiss, make an adjustment. This way, you’ll know exactly what you can expect and exactly what you’ll need to do to get there.

Preparing for retirement is a task that takes decades to perfect, but even if you’re behind in the process there are still some things you can do. Considering your insurance policies, pensions and more will not only help you live comfortably, but it will ensure that your loved ones will be cared for after your passing. 

Disaster Scams and How to Avoid Them

As if being involved in a disaster like a fire, hurricane or tornado were not enough, there are people out there waiting to prey on those who have fallen victim. The following disaster scams have been reported nationally with some of the most recent coming in the wake of hurricane Sandy.

Why Victims Fall Prey

Think about this: when someone is involved in a disaster like the ones mentioned above, the first thing they think is that they need help – and they need it fast. Oftentimes, these people are so upset that they don’t take the time to check the qualifications of the companies who offer their help. As such, there are instances of ‘fake’ construction companies and cleaning crews accepting checks for work that they never intend to perform, cases of identity theft, and even false charities claiming to take up funds from people who weren’t even involved in the disaster. This turns the common consumer into a victim, as well.

Identity Theft

After a major disaster, a group called FEMA, or the Federal Emergency Management Agency, often takes information from those affected in order to provide relief funds and other aid. Con artists will often go door-to-door claiming to work for FEMA in order to gather your personal information for a purpose that is much more sinister. Please keep in mind that following a disaster, FEMA agents will never come to you and ask you for your information. You must contact them directly through an authorized telephone number or website.

Fake Charities

Following a disaster or crisis, crooks will often set up fake charities and promise that all of the proceeds collected will go to the victims. In all actuality, the only place those funds go is right into the pockets of the con artist. Before donating any sum of money to any charity – whether it is $5 or $500 – please be sure that you research it thoroughly. Never simply assume that someone is working for the Red Cross just because they say so; rather, take the time to do your research. Should you choose to donate to the Red Cross, you can do so through their website or by calling their official toll-free number.

False Victims

In contrast to the fake charity scam, there are some folks who will pretend to be victims of a disaster in which they were never even involved. People have gone so far as to say that their husbands, wives or children were killed although they never even existed in the first place. Although these stories may tug on your heartstrings, it’s important to remember that con artists are out there. It is better to donate to legitimate charities or even work directly with someone you know personally if they were affected by the disaster in any way.

While many of us don’t want to believe that someone could be cruel and heartless enough to take advantage of a disaster-ravaged community, it certainly can and does happen. Protecting yourself against these scams is the absolute best thing you can do to protect yourself. 

Teenage Drivers and Parental Liability

If you have one or more teenage drivers in your household, then it is important for you to understand your potential financial and legal liabilities in the event that he or she is at fault in an auto accident. Parental liability is a serious issue that everyone should understand prior to allowing a child onto the roadway with other drivers.

Are You ‘Off the Hook’?

One of the biggest mistakes that the parents of new drivers make involves buying the teen a car, putting the car in the teen’s name, and then allowing the child to purchase his or her own insurance. At this point, the parents often truly believe that they are off the hook in the event that their children are involved in accidents that are determined to be their fault. However, this is absolutely not the case. Children who are not yet 18 years old are not legally capable of accepting such liability and this means that the liability falls back on the parents.

A Frightening Example

Ethan Couch, a teenager living in Texas, made national headlines when a drunken crash killed four people. His defense was that he was suffering from ‘affluenza’, or a condition in which it is claimed that wealthy children are prone to feelings of isolation, depression and guilt. Couch claimed that the affluenza led to his drinking and therefore the crash. The judge in the case agreed with the defense and the teen was officially off the hook, but the attention then turned to the parents who were charged with negligence. In fact, they are involved in no less than five civil suits due to incidents involving negligence in the supervision and care of their son.

How Does This Happen?

If your child is involved in an accident in which someone is hurt or killed, the victims do have the right to file a suit claiming negligence. However, in order for you to actually be charged, certain factors have to exist. For example, if your child has received several speeding tickets and is involved in an accident because he or she is driving at a high rate of speed, then a judge could very well rule that you ‘should have known’ such an accident was imminent. The same can be said if you make both alcohol and car keys accessible to a teenage driver.

What Should You Do?

If you’re wondering whether or not you should even let your kid out of the house with the car keys at this point, rest assured that there are some things you can do to protect your child and yourself. First and foremost, it is your duty as the head of household to determine whether or not your child is fit to drive. If he or she has shown serious lack of responsibility or negligence in the past, handing over the keys may not be such a good idea after all. It is up to you as the parent to make the final decision and exercise your best judgment before allowing your child onto the roadways.

Of course, it is also important to discuss your parental liability with your child prior to allowing him or her to drive. This can be incorporated into conversations about texting behind the wheel, drinking and driving, or any other issue that is a concern. 

Accelerated Benefit Riders for Life Insurance Policies

If you have a life insurance policy but you’re concerned about what might happen if you are diagnosed with a chronic or critical illness that involves long-term care, then an accelerated benefit rider may be a great option. Essentially, it may allow you to access your death benefit prematurely in the event of situations like these.

How it Works

There are several things that are used to determine whether or not an accelerated benefit rider is a good option. For instance, with some companies, these benefits are included in every life insurance policy at no additional cost. In others, it must be an addition to the original policy, but it doesn’t cost much annually. Then, if the policyholder becomes ill and needs long-term care, a portion of his or her death benefit will be paid out prematurely in an effort to help cover the costs.

Receiving the Benefits

Individuals cannot simply contact their life insurance providers on their own and request a partial payment of their benefits. In most cases, a notification of a terminal or severe chronic illness must be sent to the insurance company by a licensed, practicing physician. At this point, the insured may be asked to undergo some further tests performed by doctors that work for the insurance company directly. Once it has been determined that there is a serious illness, a portion of the benefits will be provided to the insured.

Conditions and Maximum Payments 

The portion of the value of the policy that can be paid out prematurely depends upon several factors, but the one with the most influence is the insured’s overall life expectancy. Many insurance companies will not put the rider into action unless a physician has stated that the insured has a life expectancy of between six and 12 months. Then, a portion that is a minimum of 25% and a maximum of 75% of the overall benefit can be paid early to help cover the costs of medications, medical bills and even hospice care. Most of the time, the maximums allowable are between $250,000 and $500,000.

Things to Consider

Before making use of an accelerated benefit rider, policyholders and their families should be aware that any amount that is provided to them prematurely will be treated like a whole life insurance policy loan. The amount will be subject to fees and any interest that accrues up until the time of the insured’s death. It is also important to consider that different insurers have different terms and conditions associated with these riders, so those who are considering them should take the time to shop around for the best overall value.

An accelerated benefits rider can help you if you are diagnosed with a terminal or chronic illness at some point in your life. While it is better to be prepared than to face such a financial crisis alone, there is always the possibility that you will never need to use the rider and that your family will receive your death benefit in its entirety. 

Using Facebook to Gather Information about Auto Insurance Claims

In today's day and age, Facebook has become a way of life. It is estimated that for everyone in the United States with internet access, more than 80% have a Facebook account. However, consumers are increasingly concerned because they believe that their insurance companies may be using their private Facebook posts to investigate claims. Can this really happen? The answer is maybe, and here's how:

Using Social Media for Your Protection 

One of the reasons why insurance companies are beginning to turn to social media sites like Facebook is because people often have more vivid memories of an accident immediately after it happens rather than several days or weeks down the road. Experts in the field now claim that it is wise to take photos of the scene and upload them to Facebook along with a detailed (although respectful) account of what occurred. This way, in the event that there is ever any dispute later, the information is readily available for you to pull up and show to your agent. Insurance companies are almost twice as likely to check your social media sites if you have reported an accident-related injury, too. 

How Some Claims Are Denied 

However, there's another side to this story to consider, as well. Adjusters and agents will often look for the Facebook pages of individuals who have claimed bodily injury in an accident claim filed with their companies to see whether or not the claims are fraudulent. If someone says that they are unable to walk without significant pain due to the accident yet they post pictures of themselves golfing, skiing or performing other activities, then there is a very good chance that the claim will be denied because it was obviously fraudulent in nature. This mining is typically performed by special investigation units working for the insurance company, though third party investigators are sometimes hired, as well. 

Is This Legal?

Mining for information related to automobile accident claims is perfectly legal as long as the information gathered is part of a public profile. This means that if you have your account set to private and only people you have chosen to be 'friends' with can see your information, then they cannot breach that privacy in order to gain access to your information without breaking the law. However, an insurance adjuster absolutely can use information that is found on your friends' Facebook pages as long as they have permission from the account holder. Although some people complain that this is unethical, it is perfectly legal as long as your 'friends' give the okay. 

Protecting Yourself 

Of course, the best thing that you can possibly do to protect yourself in the event that you are involved in an accident is to avoid filing a fraudulent claim. With all of today's technology, you probably won't be able to get it past the specialists who know how to do their research. Other than this, if you are in an accident, you can post photos and an account of what happened for your own records. However, it is probably best if you avoid any statements or comments that could be considered disrespectful. The last thing that you can do to prevent unauthorized access to your personal information involves making sure that your Facebook account is set to 'private', keeping in mind that your profile picture and cover photo can still be viewed by anyone as if they were public. 

In a nutshell, while many consumers are upset and even angry that an insurance adjuster would access Facebook or other social media sites for the purpose of gathering information, if you play your cards right, this can only help you in the long run - if that person can even gain access to the information in the first place.

Understanding 'Catastrophic' Health Insurance

Because of the shape of the economy and the increasing costs of healthcare, there are many individuals and employers who are turning to High Deductible Healthcare Plans, also known as HDHPs or ‘catastrophic’ health insurance plans. Essentially, consumers who choose them will receive lower than average premiums with extremely high deductibles.

How it Works

Catastrophic health insurance plans aren’t like others in that most people actually end up paying for the majority of their healthcare-related expenses – including their prescription medications – out of pocket. Some of these have deductibles of $5000 or higher, meaning that even ER and urgent care visits won’t be covered until that deductible has been met. Even once the consumer has paid the $5000 out of pocket, only things like preventative care will be covered up to 100% under these plans. However, the healthcare reform laws that went into effect in 2014 now require insurance companies to pay for 100% of preventative care even before the deductible has been met.

Is It a Good Choice?

A catastrophic health care plan isn’t the best choice for everyone, though. People who are generally healthy may be able to get away with it since they’ll probably pay very little out of pocket. However, in the event that something terrible was to happen (such as a heart attack, stroke, cancer, etc.) then everything will be covered to an extent once the deductible has been met. This is how the policy got its name: it’s designed to provide ample coverage, but only in the event of a health-related catastrophe.

Choosing a Plan

While many people believe that these plans will only cover things like emergency room visits and hospital stays associated with sudden injuries or illnesses, this isn’t always the case. Many will pay for all healthcare related expenses once the deductible has been met, including any prescription medications or devices that may be part of a treatment plan. Individuals will likely have some co-pays associated with things that aren’t considered preventative, but these are generally 20% or less – much like other types of plans that are out there.

HSA Compatibility

An HSA, or a Healthcare Savings Account, was made possible by federal law back in 2004 and allows Americans to set aside a certain portion of their pre-taxed income to be used for healthcare expenses both now and in the future. In order for to be eligible for an HSA with a catastrophic health insurance plan, the deductible must be at least $1200 for an individual or $2400 for a family. Similarly, out of pocket maximums cannot exceed $5950 for an individual or $11,000 for a family. People who are younger than 55 can contribute as much as $3050 per year as an individual or $6150 as a family annually to an HSA; people who are 55 or older can contribute an additional $1000 per year individually.

Despite health care reform, it is anticipated that the catastrophic health insurance plans will continue to be popular among Americans. Some 10 million are currently insured under HDHPs, and that number is expected to climb as people purchase plans to avoid being penalized.  

The Future of Auto Insurance: Too Drunk to Drive? Your Car Can Tell

Although it’s always safe to have a designated driver if you’re going to be going out for a night on the town, your friends may not have to take your keys away in a few short years. Right now, scientists and engineers are working on new technologies that will allow your car to know if you’re too drunk to drive.

Current Technologies

Now, some people are probably wondering what’s so new about it since there are already ignition interlock systems in place that require drivers to blow into them prior to going anywhere. First, these are only provided to people who have been convicted of a DUI, they’re bulky, and they’re sometimes difficult to retrofit. The idea behind the newer technologies is to prevent someone who’s had too much to drink from getting on the road in the first place. It’s thought that this will lower automobile insurance costs, prevent accidents, and lower the number of injuries and fatalities associated with alcohol.

The New Ideas

The latest technologies (those that are currently being developed) will not only require a breath-based test before the vehicle will start, but will also be able to detect alcohol in the bloodstream via touch. There are some obstacles that must be overcome, though, such as how to discern the breath of the driver from the passengers, how to handle a driver that is wearing gloves, and even what to do in the event that the devices are installed in convertibles since the extra airflow will hinder the technology. Similarly, these devices must be able to handle wildly fluctuating temperatures as it can easily climb to oven-like conditions inside of any automobile during summer months.

Expected Availability

While prototypes are expected to be in operation sometime during the year 2015, it’ll likely be a while before these devices will really start selling, and experts believe that it’s more likely that they will be installed during the manufacturing process of new automobiles rather than retrofitted. It is also expected that only high-end luxury models will come with this safety feature at first, and that such installations will trickle down to economy-class vehicles as the years go by.

The Wave of the Future

Whether or not such devices become popular with the public is yet another debate. Some groups are concerned that, with the availability of the technology, government officials at the state level will attempt to make these technologies mandatory. While parts of the population agree that this would be a fantastic idea to keeping impaired people off the road, others believe that it is an infringement on constitutional rights. However, automobile insurance companies are already on board stating that if this technology is widely accepted, they will have no problems with offering discounts to those who choose to use it.

Whether or not devices that can detect alcohol in a driver’s bloodstream will gain popularity with the public remains to be seen, but they are in development and being tested as we speak. As of 2014, there has been no mention of how much this technology will add to the price of new cars if and when it is introduced. 

Things to Know about Mechanical Breakdown Insurance

In the event that you are involved in an accident, your car is damaged by a storm, or even if your car is stolen, traditional auto insurance can help you cover the costs associated with these mishaps. However, what happens if your car breaks down on the side of the road? Unfortunately, if your automobile is no longer under warranty, you may be left to cover these expenses on your own unless you’ve purchased mechanical breakdown insurance.

What Is It?

Mechanical breakdown insurance is purchased separately from your traditional auto insurance. There are several different types of entities that offer it, including car insurance companies, third party entities, automobile dealers and even the financial institution through which you financed your loan. For all of these companies, and for you, it is often in your best interest to purchase this insurance because it negates the possibility that you will stop making payments simply because you’re unable to drive your automobile due to a blown engine or failed transmission.

What It Does

There are a few things that you should be sure to understand before you purchase mechanical breakdown insurance. First and foremost, it won’t cover normal wear and tear on your vehicle. Similarly, the company providing the insurance may want you to prove that you’ve kept up with regular maintenance, so hanging onto those oil change and tire rotation receipts might not be a bad idea. Finally, keep in mind that there are different levels of coverage that can be purchased. A bare minimum plan may only cover certain essential parts, but a full-coverage plan may pay for any repair at all – including failure of the motor or transmission. Some policies even pay for towing, lock-outs and roadside assistance, too.

Factors Affecting Cost

With so many different options out there and so many types of vehicles on the road, pinpointing an average cost is difficult. These policies run anywhere from hundreds to thousands of dollars annually depending upon the age of your vehicle, the number of miles put on it, and the level of coverage you select. All in all, if you have a newer car that is driven fewer than 200 or 300 miles a month, you’ll get a better rate than someone who has an older car that is driven thousands of miles per month.

Does It Affect Auto Insurance Costs?

Perhaps the greatest thing about mechanical breakdown insurance is that filing a claim will not affect either the premium for the breakdown insurance or the premium for your standard automobile insurance. However, if necessary repairs are due to an accident, these claims must be filed with your insurance provider and not as a mechanical breakdown. In fact, some auto insurance providers may even provide discounts to those who have this coverage because your automobile is safer for you and for others if it is kept in good working order.

If you are considering mechanical breakdown insurance, be sure to compare it to your warranty if it hasn’t expired, find out what repairs are covered and which are excluded, and also make sure that the policy covers the mechanics you trust to repair your vehicles.

Life Insurance Claim Denials - Five Things to Know

Your life insurance policy is a very important part ensuring that your loved ones and dependents are cared for in the event of your death. However, there are some critical mistakes that people often make that can actually prevent the insurance claim from being paid out at all. Here are the five mistakes you should always avoid.

#1 – Failing to Pay Premiums

The only way that your life insurance policy is going to remain active and cover you in the event of your death is if you make sure to pay the premiums on time every time. You should check with your insurer to see if you have any kind of grace period in the event that you accidentally miss a payment or a financial setback makes you unable to pay your premiums. Similarly, opting to make annual or semiannual payments may help, too.

#2 – Lying on the Application

One of the biggest mistakes people make is actually lying on their life insurance applications. There’s no denying that your premiums will be higher if you smoke, but your insurance company will find out if you’re a smoker and deny your benefits if you’ve lied about it. If you’ve been treated for any condition in the past, if you smoke, or even if you drink alcohol more than moderately, you should state this on the application. It’ll be worth it if the unexpected happens.

#3 – Not Naming Enough Beneficiaries

If you’re married, then chances are that you’ve named your spouse as your primary beneficiary. This is the normal way of things, but there is something to consider: what if both you and your spouse are killed in an accident at the same time? How would the life insurance money be dispersed? Be sure to name not only just a second beneficiary, but also a final beneficiary. This covers all of the possibilities and ensures that your benefits are paid promptly.

#4 – Failing to Tell Anyone that the Policy Exists

Life insurance can be a touchy subject for many families, but that doesn’t mean you have to hide it. Once you’ve purchased a policy, store it in a safe place and tell your beneficiaries about it. This way, should something happen, they know exactly where to go and who to contact to get the process started. Failing to tell anyone doesn’t mean that the benefits won’t be paid because the insurer will track down the beneficiaries, but this process can take a while.

#5 – Engaging in Risky Behavior

Believe it or not, people have rushed out to purchase life insurance policies prior to engaging in risky activities like bungee jumping or parachuting, and there are even some who purchase a policy just days before committing suicide. It is important to note that most policies have a one- to two-year exclusion, meaning that if you die due to suicide or a risky activity, your policy is essentially null and void.

Life insurance is certainly a necessary investment, and taking the time to purchase a policy at all shows that you care about what happens to your loved ones after your death. However, if you make any of the five mistakes above, you might just find that all of your efforts were in vain. 

Emergency Supplies to Keep in Your Car

You likely do everything you can to drive safely. After all, being a safe driver leads to cheaper car insurance premiums, fewer injuries, fewer headaches and an all-around sense of pride. However, the unexpected can and sometimes does happen to even the best drivers. Keeping an emergency kit in your car is a great idea for this very reason.

Some Statistics

First and foremost, it is important to note that some very recent studies suggest that only about 5% of American drivers carry all of the recommended emergency supplies in their vehicles. This may be a bit shocking, but another 96% claimed that they carried what they would consider to be the ‘bare minimums’ or the tools necessary for changing a flat tire and jumping the battery. Finally, about 38% of the people who carry these supplies state that they check to make sure that they are working properly at least once a year – and some check them out twice per year for safety.

What You Need

Snow is a rarity in the warm Florida climate, but that doesn’t mean that drivers shouldn’t be prepared for the worst. After all, the recent polar vortex that swept down from the north placed a big chill on most of the state, and this caused some traffic trouble in places where standing water froze overnight. Highway safety experts recommend that motorists carry all of the following in the trunks of their vehicles: a hazard triangle or road flares, a first aid kit, jumper cables, a windshield scraper, a spare tire (preferably a real wheel and tire rather than a ‘donut’), blankets and a change of warm clothing, high-calorie food that won’t spoil, road salt or cat litter, a brightly colored distress flag, candles, flashlights, and a lighter.

What You Don’t Need

One of the biggest mistakes that people tend to make is loading their vehicles down with items that cannot be properly restrained. When possible, all ‘loose’ items within the vehicle should always be stored in the trunk. Think of it this way: if you’re involved in an accident at even a moderate rate of speed, all of the loose items inside your vehicle essentially become projectiles. This increases the likelihood that injuries will be sustained. Only keep essential items inside the car and put the rest in the trunk.

What to Do if You Get Stranded

If you find yourself stranded at the side of the road, there is no need to panic. First of all, turn on your vehicle’s hazard lights if possible. If you have access to your phone, dial 911 and describe your location as closely as you can. You should never leave your vehicle unless you smell gasoline or there is a fire; help will come to you. Finally, make sure that you drink plenty of fluid and continue to assess your situation. Sparingly use the radio, air conditioner or heat in order to conserve fuel, and be sure to turn a light on inside the car at night (or use a flashlight or candle) so that help can find you.

While everyone strives to drive safely, there is no denying that accidents and Mother Nature sometimes just happen. As such, keeping the right supplies inside of your car and removing the things you don’t need can go a long way to protect you. 

When is Non-Owner's Insurance a Good Idea?

There are plenty of people in Florida who don’t own cars but still drive on a regular basis, especially for those who choose to rent cars regularly to travel. While car rental companies do offer insurance, it is often quite expensive. Non-owner’s insurance may be a better option for some people.

Cost Comparison

When you rent a car, there are some things that will be covered automatically. Of course, the rental company has a vested interest in its automobile, so they’ll provide comprehensive and collision coverage as well as roadside assistance. However, in order to actually get liability coverage (which is what covers any damage to property or injury to other drivers and their passengers), you’ll be expected to pay a rate of $7 to $14 a day, depending upon the company. On the other hand, a non-owner’s insurance policy will cost you a few hundred dollars per year, which is a great investment for those who rent often.

What It Covers

A non-owner’s insurance policy provides only liability coverage. Therefore, should you choose to borrow a friend’s car and you get into an accident, your friend’s insurance policy will be the first place to go to make a claim. However, since you were the one driving the car, you may be sued if any injuries or property damages sustained exceed the limits of that coverage. As such, a non-owner’s insurance policy affords you some extra coverage in this case so that you won’t have to rely on your friend’s insurance alone. In fact, for most of these policies, there are never any deductibles.

Damages Not Included

A standard non-owner’s insurance policy is not going to cover any of the damages to a rental car (or to a car that you borrow, for that matter) so you should prepare yourself in advance for this. If you are renting your car, you can get what is known as a loss and damage waiver that will protect you in the event that the rental car is stolen or damaged in any way while in your possession. If you are going to be borrowing a car, things can get a bit trickier. Talk to your friend or relative about the coverage they have and then sign an agreement that dictates what will happen in the event that you are involved in an accident that is deemed to be your fault.

Additions for Auxiliary Drivers

If you are on the other side of the fence, (that is, if you will be allowing a friend or family member to regularly borrow your car) it may be in your best interest to add the person who will be borrowing your vehicle to your existing policy as an auxiliary driver. While you will ultimately be financially responsible for this increase in your premiums, you will be better protected if something should happen. This is especially true if you will be loaning your car to a teenage driver in your home; most existing policies will not allow anyone in your household to drive your car unless his or her name is listed on your policy as an authorized driver.

There are some cases in which a non-owner’s insurance policy is the best route, but there are still other options to consider. In general, a non-owner’s policy is best for those who rent frequently or who borrow a car very infrequently since it is inexpensive and affords some additional peace of mind at the same time. 

Could Someone Have a Secret Life Insurance Policy on You?

While it really isn’t likely, the idea that someone could take out a life insurance policy on you without your knowledge is a bit unsettling. Here, you can find out whether or not this practice is legal, how and when it has occurred in the past, and other facts about secret life insurance policies.

Is it Likely?

The first thing that you should consider if you are concerned about someone taking out a life insurance policy on you is whether or not it’s truly likely. In most cases, the only motive someone would have to do this would be fraud. Another thing to consider is that life insurance companies go to great lengths to prevent fraud and to protect you, so attempting to purchase a life insurance policy on someone else is incredibly difficult. Finally, there is what is called ‘insurable interest’ by most insurance companies, and this simply means that the person purchasing your policy must be related to you, either by marriage or by blood, or must have a close working business relationship with you.

What Steps does the Insurance Company Take?

Most of the time, insurance companies absolutely require the insured to participate in a medical examination prior to the issuance of a policy. For this reason, it is nearly impossible for someone to purchase life insurance on you without your consent; the arrival of medical personnel at your door to take blood samples would surely tip you off. Similarly, insurance companies require the signature of the insured, too, and it is highly unlikely that someone would be able to intercept every piece of correspondence and forge your signature. These things make the issuance of a ‘secret’ policy next to impossible.

The Parent – Child Relationship

The only real, legal way for someone to take out a life insurance policy on someone without their knowledge occurs when a parent takes out a policy on a child who is younger than 15 years old. This is because the insurance companies do not require a child younger than 15 to provide a signature and most child policies do not require medical exams. Of course, if the policy remains in effect and the parents don’t tell the child, then it is truly possible for a parent to have a life insurance policy on his son for 40 years or more without that son’s knowledge.

The ‘Dead Peasant’ Uproar

Up until 2006, it was entirely legal for businesses to take out life insurance policies on their employees and then cash them in upon the employee’s death with no mention ever made to the deceased’s family.  They were called ‘dead peasant’ policies because many of the deceased had no life insurance of their own and their families were left to bear the burden. In fact, for many large and well-known corporations, the ability to purchase these policies was a solid way to generate tens of millions of dollars per year in revenue. Of course, in recent years and with the increased light that was shined on the practice, it was outlawed in 2006.

In conclusion, if you’re wondering whether or not someone out there has taken out a life insurance policy on you without your knowledge, the answer is likely no. There is simply too much red tape and too many laws in place to allow for it to happen.   

Five Things to Know About Your Life Insurance Contestability Period

The contestability period associated with your life insurance policy is a period of time, usually one to two years in length, beginning directly after you purchase your policy, during which your insurer can investigate the information on your application and ultimately approve or deny claims. Understanding some things about this period can help you make better decisions for your loved ones.

#1 – Your Benefits Must Be Paid if You Die During the Contestability Period

A common misconception is that if you die during the first one or two years after having purchased your policy, the insurance company can refuse to provide your loved ones with benefits. This is simply not the case. If you die during the contestability period, your cause of death is covered under the policy, and you provided 100% accurate information on your application, then your loved ones will be entitled to the benefits.

#2 – Providing False Information Hurts Your Loved Ones

Believe it or not, the primary reason why insurance companies fail to pay out benefits when the insured dies within the contestability period is because the insured provided inaccurate or simply untruthful information on his or her application. You should always check and double check your application to make sure that everything is absolutely correct. This way, the insurance company will have nothing to contest upon your death.

#3 – In Some Cases, the Insurance Company will Provide Benefits Anyway

Even if, by some chance, you got a couple of facts wrong on your application, all is not always lost. Due to some recent changes in laws, many insurance companies can essentially ‘correct’ your application after your death, re-calculate your premiums, and deduct any differences from the amount of the benefit that will be paid to your loved ones. In most cases, whether or not this will occur depends upon the size of your claim and the blatancy of the misrepresentation on the application.

#4 – The Contestability Period and the Suicide Clause are Two Separate Things

Another common misconception is that the contestability period and the suicide clause associated with most insurance policies are one and the same, but this isn’t the case. The suicide clause usually states that if the insured commits suicide within two years of the issuance of the policy, no benefits will be paid and all premiums will be returned to the named beneficiary. In most cases, after the two year period, the benefits will be paid in full even if the cause of death is suicide unless the policy specifically states otherwise.

#5 – Contestability Periods can Start Over in Some Cases

Once your initial contestability period is over, you aren’t always out of the woods. There are some cases in which your insurance company can start the period anew. For instance, if you fail to pay a premium on time and are forced to reinstate your policy, then the contestability period can start all over again. Similarly, if you transfer the cash value of your permanent policy into a new policy, this can trigger a new contestability period, as well.

Every insurance company and every policy is different, so it is important for you to check with your agent to determine your contestability period and the payment of benefits in the event of your death during and after this period of time ends.