4 Insurance-Policy Add-ons Worth the Money

A few inexpensive add-ons can add valuable coverage to your auto and homeowners insurance.

1. For your auto insurance, consider roadside assistance. For $3 to $12 every six months (versus $52 per year for AAA), you can get lockout service, towing, jump starts, and flat-tire fixes, says Cadie Patrizz, an independent insurance agent in Tarzana, California

2. Rental reimbursement can be worthwhile if you need a car while yours is being repaired (repairs must be due to a covered loss).
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Mercury Insurance, for example, charges $20 every six months to provide up to $40 per day for a rental car while yours is being repaired, for a maximum of 30 days.

3. Medical payments coverage takes care of medical and ambulance bills for you and your passengers. It may duplicate health insurance, but it can fill in some gaps if you have a high-deductible policy.

You’ll pay about $19 every six months for $5,000 in coverage, says Patrizz.

4. For homeowners, coverage for sewage backup is a big gap in most policies — leaving you to pay thousands of dollars to clean up nasty damage caused by water and sewage that backs up into your house. But you can often pay about $50 per year to get $10,000 to $25,000 in coverage.

source: kiplinger.com

Travel insurance: To buy or not to buy?

MANILA - This summer, whenever you're making travel plans, you will most likely be asked if you want to buy travel insurance.

These days, travel insurance has become increasingly easier to purchase and could be loaded into travel packages or part of airfare purchase. Like many of us, you’re probably wondering if should you fork over the extra cash.

What, exactly, is travel insurance? This is a type of insurance that you purchase to cover a variety such as death, injury, medical expenses, accidents, trip cancellation or interruption, lost or delayed baggage, theft and losses incurred during the trip, to name a few.

Travel insurance policies vary in terms of coverage and in terms of pricing, depending upon your service provider and the extent of the coverage provided.

Travel insurance is definitely useful in protecting you against life’s eventualities. However, some travelers may have a greater need for it than others.

Here are seven tips to guide you when purchasing travel insurance:

1. If you do not have life insurance coverage and you have dependents, then travel insurance may be especially useful.

Although the possibility of death due to air travel is low, this still gives you a layer of protection that you do not have. Since the coverage of this plan only covers either your traveling time, or the duration of your travel, you may wish to purchase life insurance to provide you protection 24/7.

2. If you do not have comprehensive medical insurance, travel insurance will be useful.

Let’s face it, you can’t really tell when you will fall sick and the worse that can happen is to find yourself getting sick when you’re out of town, and without the funds to cover your expenses. With travel insurance, you can be assured that you will be able to cover your medical needs, at least until you get back home.

3. If you’re traveling overseas, you need travel insurance.

That’s because nearly all health insurance policies provide domestic coverage, exposing you to risks once you are out of your country. Imagine needing hospitalization in a foreign country, where costs are definitely higher than what you have in the Philippines. However, if you are among the very few who have global medical insurance coverage, then you do not need travel insurance for this purpose.

4. If you are buying a non-refundable, prepaid ticket, travel insurance will come in handy, what with the many cancellations and flight disruptions that often happen.

This is particularly true if you are paying a big amount for your ticket—say for overseas travel. This ensures that you can cover your ticket should any kind of flight disruption happen.

5. If you purchased your ticket through a credit card, check if you were given travel insurance coverage.

This is one feature offered by a number of credit card companies to travelers who purchase their tickets using their cards. This is an economical way of getting travel insurance, so if you are planning to travel in the future, you may wish to check what your credit card provider has to offer.

6. Before paying for a policy, check what you are buying.

Some travel insurance plans have exclusions such as pre-existing conditions, travel to high-risk countries, acts of terrorism or natural disasters. If you are purchasing travel insurance because you want to be protected against these, then make sure that it is expressly covered in the plan that you purchased.

7. Most travel insurance providers also offer concierge or emergency assistance services for those unforeseen events that can happen during your trip.

Find out what these services are and know how to contact these service providers should the need arise.

Happy traveling!

source: www.abs-cbnnews.com

3 Types of Insurances You Need as a Homeowner

Your home is your biggest investment, so it goes without saying that you’ll do anything to protect your property. This is why you have homeowners insurance to covers damage to your property and belongings in the event of theft, fire or natural disaster. Additionally, homeowners insurance provide liability coverage if someone is injured on your property.

If you’re financing your home through a bank, your lender will require homeowners insurance. And depending on where you live, you may have earthquake insurance or flood insurance. You might think this is all the coverage you need. However, if you really want to protect your investment, there are three other insurances to consider.

1. Life insurance

 

Some people put off purchasing life insurance, but tragedies can happen at anytime. If you have children, a spouse or other relatives who rely on your income, a life insurance policy provides your loved ones with financial support in the event of your untimely death.

At the end of the day, you want your family’s life to continue as normal as possible. If you’re the primary breadwinner or contribute to the household expenses, losing your income might force your family to move out of your home and they might struggle to make ends meet.

Life insurance policies can provide peace of mind. The death benefit can cover your funeral costs, pay off the house and other debts, plus provide your family with ongoing financial support. There are no hard or fast rules regarding how much coverage to receive, but some experts recommend purchasing a policy that’s eight to 10 times your annual salary if others rely on your income.

2. Payment protection insurance

 

In addition to life insurance, you can purchase mortgage payment protection insurance from your mortgage lender. Many lenders offer this supplementary insurance policy, which is similar to a life insurance policy, but the death benefit is paid to your mortgage lender. Mortgage payment protection pays off your home loan if you die.

Typically, you have to request payment protection when buying a house, but some lenders let borrowers add coverage anytime within the first three to five years after a purchase. Payment protection premiums are based on different factors, such as your age, whether you’re a smoker and the outstanding mortgage balance. Premiums are paid monthly and included in your mortgage payment.

3. Disability insurance

 

Take advantage of short-term disability insurance if offered through your employer, or look for a policy on the individual market. Disability insurance provides income if you’re temporarily unable to work due to an illness, injury or other medical reasons. This income can cover living expenses and help you stay current on your mortgage payment, which can alleviate payment problems and possible foreclosure.

The amount you’re eligible to receive varies depending on the insurer. For example, some insurance companies offer short-term disability policies that’ll pay up to 60 percent to 70 percent of earnings, whereas other companies only pay up to 40 percent to 50 percent of earnings. Unfortunately, you won’t find a disability policy offering 100 percent coverage.

Bottom Line:

 

Life insurance, payment protection insurance and disability insurance aren’t “only” for homeowners — anyone can benefit from protection. But as a homeowner, you can’t afford to skip coverage. Home is where you’ll raise your family and create memories for years to come. So you need to do whatever you can to protect your biggest investment.

source: totalmortgage.com