Insurance Advisors—Are They Appropriate For All Insurance Types?

Last year, a family friend was driving through a small midwestern town in mid-afternoon.  It was raining outside, so driving conditions were less than optimal.  Our friend came up to a red light, so she slowly brought her SUV to a stop at the light.  The car behind her, however, did not.  It wasn’t pretty.  The car hit our friend’s stopped vehicle at 40 mph.  Fortunately, both drivers were able to leave the scene of the accident without immediate hospitalization.  However, the strong trauma of the accident caused quite severe back and neck pain for our friend.  Of course, insurance companies and lawyers got involved, and 18 months after the accident a ruling or settlement still has not been reached.

We hear these stories all the time.  The situation with our family friend is that she had opted to purchase the very cheapest car insurance possible.  This led her to buy insurance with a little known firm in the Midwest.  If she had done a little investigative work, she would have quickly discovered that the firm had several complaints at the Better Business Bureau, and a simple Google search produced dozens of complaints of poor customer service.

This leads to a question worth considering—should you pay for an insurance advisor?

What Is An Insurance Advisor?

Before we jump into the specifics of this argument, let us first define what an insurance advisor is.  Basically, there are two types of “experts” in the insurance industry.  First, you have your insurance agent.  An insurance agent should carry all of the appropriate licensing and credentials.  The agent knows the industry quite well.  However, the agent is, of course, compensated by getting you to sign up and buy insurance from a specific company and may not be incentivized to get you into the cheapest car insurance.  Furthermore, the compensation schedule for an agent is typically tiered commission, and he or she will oftentimes earn more commission fees by directing you into one specific investment vehicle over another.  Suffice to say, an insurance agent may be an expert in the field, but without a doubt, he or she will be severely biased concerning the terms and conditions of the insurance product they present to you.

Second, you have your insurance advisors.  Advisors are often seen as a wasted expense by many people, no matter the field of expertise.  Advisors are simply consultants who offer their expert opinion in exchange for a fee.  Critics often dislike the idea of an advisor because they argue that you could do enough research in order to make the decision yourself, and then you could save yourself the advisor fee.  This is a bad way to look at it, though.  If you are dealing with an expert advisor, then he or she could potentially save you thousands of dollars over the course of your insurance policy, and this potential savings is going to cost as little as $50-$100.

The Role of an Advisor

An insurance advisor can help in several ways.  First of all, advisors are clearly compensated through the fee they charge for a consultation.  Therefore, you can be assured they have no additional incentive to push you in a specific direction concerning an insurance product.  The idea is that an advisor will offer you a completely unbiased expert perspective and opinion regarding an insurance policy.

One function of an advisor is to review your current policy for weak points.  This can help tremendously.  For example, an advisor may be able to read through your life insurance policy and discover significant areas where coverage will not be complete, and oftentimes these findings are priceless.

A second function of an advisor is to assess your needs and find a product that suits you.  This fee can be a bit more expensive because it includes two major steps—identifying your needs and finding the product.  This can be a great way to get an unbiased opinion concerning what type of insurance product will be best for you.  You could search the internet and a cheap insurance quotes company, but since an advisor is not compensated based on product sales commissions, he or she will not be biased concerning which product they direct you to.  This can be a huge advantage.

Weighing the Pros and Cons

The primary point of contention between whether or not you should pay for an insurance advisor is short term cash flow.  In the near term, an insurance advisor is going to cost you money, although the amount will most likely be rather nominal—no more than a few hundred dollars.  And the reality is that the extra perspective they give may not result in huge savings in the future.  However, on the other side of the coin, there is the very real possibility that they could be getting you into the right insurance product that is going to save you thousands of dollars in the future.  It may be very well worth it to pay a few hundred dollars now to have the peace of mind that you are fully protected in the future.

Note: this has been a guest contribution provided by Jason Hoerr. Jason is part of the writing team designated for outside columns on Cheap Insurance 1-2-3′s behalf.

With the higher cost of living these days, lowering your health insurance premium can benefit almost everyone. Fortunately, it doesn’t have to be an incredibly difficult task. All it takes is a little bit of time, effort and of course a fair amount of research. Here are a few pointers to get you closer to lower rates and a fatter pocket book.

1. Don’t Skimp On the Research

Like anything else in life a little bit of patience can go a long way. It is very important to build up a list of insurance companies and analyze what each one has to offer. Regardless of whether you are just beginning to shop for health insurance premiums or not, don’t fall into the trap of picking the first one that comes your way. There are many different plans available to the consumer and not all of them are created to best suit your health needs. Take your time to browse through different offers and compare prices and benefits. Be prepared to pass over quite a few before you find the perfect match for your situation.

2. Avoid Any Risky Activities

If you’ve been searching for ways to lower your premium and coming up empty handed, step back and take a look at the kind of extracurricular activities you enjoy on a regular basis. Although some people can’t justify getting rid of their favorite past times, you might find a few that you won’t miss. If you can avoid any risky activities that have a greater potential to land you in the hospital now would be the time to do so. For example, if you want to lower your health insurance premium that next skydiving trip won’t be in your best interest. Insurance companies tend to charge more when they know you are at a higher risk for injury.

3. Quit Your Bad Habits

One of the best ways to help lower your health insurance premiums is to work on abandoning any habits that are bad for your health. For example, a person that smokes several packs of cigarettes daily will have a much higher premium than that of a non smoker as smoking is one of the leading causes for high cost insurance premiums. As a plus, both your family and your pocket book will thank you for quitting.

4. Go For the Major Plans

If shopping for the right plan is intimidating you, try checking out the major plans first. The majority of them are in high competition with each other to provide the best rates which in turn means a better insurance premium for you. You don’t have to only follow this advice while you are new to the health insurance game either. Comparing the major plans against each other has the potential to benefit even the experienced health insurance consumer.

5. Remember to Periodically Reassess Your Needs

One of the most overlooked ways to lower your health insurance premium is simply evaluating your medical needs from time to time. Just because you required a certain service five years ago doesn’t mean you should still have to be paying for it today. Don’t be afraid to carefully assess your health so that you can determine whether or not you need to pay for a higher costing health insurance. As a general rule, you should at least aim to make an evaluation annually- you’ll surprise yourself with the benefits this can have on your overall cost. And just remember to keep in mind that just because you weren’t able to drop any services this year doesn’t mean you won’t have any luck in the following year.

Finding car insurance can be quite a daunting prospect, particularly for those who are first time car owners and are not familiar with the process. Fortunately, there are several ways by which the cost of the insurance can be reduced. This is not limited to research and searching around for the cheapest prices. Although not everyone is familiar with the methods for doing so, they are usually not too difficult to implement. The following are five ways by which you can lower the cost of your car insurance each month:

Tip #1: Increase Your Deductible

A surefire way to decrease the cost of your car insurance each month is to increase your deductible. Increasing the deductible by about $500, from $500 to $1000, can have an enormous impact on the price of your car insurance. There is, however, a potential downside to a larger deductible. If you are involved in an accident which is determined to be your fault, you will be required to pay a larger amount of money. So, increasing the deductible can be a big risk. However, if you do not get into an accident, this technique could save you a large amount of money over a period of several years.

Tip #2: Use Anti-Theft Devices

Using anti-theft devices in your car along with parking the car in a secure spot will lead to a drop in your car insurance bill. The manufacturer of your car might provide anti-theft devices as a part of your car purchase package. However, these devices are not typically the best available. The insurance provider might even provide advice on which devices to use in your car. If you are able to make the car more difficult to steal, you will be able to achieve lower costs on your car insurance. Many people do not think about this technique but it is most definitely effective. Along with saving money on insurance, anti-theft devices can also keep your vehicle and possessions safer.

Tip #3: Bundle Insurance

It is typically much cheaper to combine different types of insurance into one company. For example, you can bundle your car insurance with the same company that you get your home owner’s or rental insurance from. If you are not able to do this, you can at least combine all of your vehicles under the same insurance company. The more forms of insurance you obtain from one company, the less expensive each type will be. This is an excellent way to save some money on your car insurance.

Tip #4: Add Young Drivers

It is often difficult to find inexpensive car insurance for younger drivers. Therefore, in order to save money, it is a good idea to add young drivers to your insurance policy if you have a good record of driving. This can be accomplished even if the driver has their own vehicle. You will save increasing amounts of money if your family consists of good drivers without accidents or tickets on their record, particularly during the last 5 years. Insurance companies often charge less for those drivers who have not experienced any accidents or received any tickets in the recent past, usually 5 years.

Tip #5: Only Insure What is Necessary

If you do not drive very often, you will be able to find cheaper insurance rates. For example, if you use your car only to commute to work, you should tell your company who will most likely reduce your rate. The less you use your car, the less likely that you will be in an accident. This will decrease your insurance payments each month.

We at centralinsurance.org are dedicated to saving you money and time!  We hope these tips will do just that in your search for cheap insurance.

If you have ever been involved with the Scouting program this motto will sound familiar. Be prepared! Like all insurance, you want to have it so you are ready if the worst happens but typically it does not consume your every thought. The same motto should be applied to prepare for a car accident.

Usually people are very upset and confused initially from a car accident. It helps to be prepared for a possible incident. The first thing you need to do is supply your car with a few necessities. Some items that are always good to have in your car are a light first aid kit, reflective traffic cones / flares, a gallon of water, flashlight and blankets. While not all these are needed for the instance of a car accident you should keep these on hand in case you are ever stranded and you have no ability of getting help for an extended period of time.

Now that you have items you need stashed in your car, you can move on to the time immediately after the accident:

• First thing to do is to not panic or get angry. Car accidents happen all the time and the key is to maintain your composure and react to the situation objectively.
• The second is to turn off your vehicle. While this may seem like a silly reaction it is a safety precaution to take in case of leaking gas, you do not want a fire to erupt which can easily happen if a gas tank is leaking.
• The third is to be a good neighbor, make sure everyone involved in the accident is ok and try to access any injuries that may have happened so you know whether or not an ambulance needs to be called out.
• Fourth is to call the police. They should send an officer out in most cases.
• After your call to the police, contact your insurance agent / provider. This is a good time to see what they need on their end to start the claim process.
• Fifth, once that call is finished you need to start gathering information. You need to document all damages received by your car and to all parties involved. It is a good idea to take pictures to document the damage that way as well, after all a picture is worth a thousand words. Some other investigative tips are to write down the information of the affected parties, insurance providers and contact information. 

• Especially make sure to check if the driver’s license matches the insurance card information.  If it does not you need to try and see what the relationship is between the driver and the actual insured car owner.  Remember above all, you do not need to be intrusive in this step if the other driver feels you are overstepping your bounds just back off and document as much as you can, after all the police will do this job once on scene as they are the professionals.
• Lastly, don’t admit your fault in the accident or accuse the other party involved.  Simply state the facts to the police when they arrive or your insurance agent.  Let the legal officials determine who is at fault.

 Although we at centralinsurance.org hope you never end up in an automobile accident.  We hope that these steps can help you protect yourself and expedite the process of your claim as this can be a trialing time for anyone to go through.  Drive smart and stay safe!  If you want to check competitive rates for cheap auto insurance please check out our auto form, it’s free and secure! See how much you can save today!

Annuity Insurance is acquired from an insurance company that offers life insurance. This type of insurance is generally set up so that taxes are deferred and then doled out to the insured in a variety of manners. Most people use this form of insurance as a steady and guaranteed extra or single income source for the entirety of the insurance policy, which is usually for life. A lot of people misunderstand what this type of insurance is used for and forget that they can use it for their lifetime, instead of just taking certain amounts of money when they need to, at certain times.

When it comes to annuity insurance, there are different types or names of these. There are immediate annuity plans, which are sometimes referred to as annuity for certain periods or lifetime annuities with variances. Then, there are deferred annuity plans that have some different types of guidelines one will need to set up at the time a policy is drawn up.

Annuity insurance in the US is regulated by a government code called the Internal Revenue Code and by the state in which an insurance company is located. This type of insurance can be for life and for those who wish to have a return on investments and are generally referred to as a variable annuity policy. Each state has different guidelines for policies.

Immediate annuity is basically a term that was created that means the same thing as term annuity, and it is a policy of insurance that is set up so that the insured will pay a specific amount of money, in premiums and will receive a specific amount of money. The insurance can be set up to end at a set year, or it can be set up for life, for two people (the insured). Most people use this type of insurance in case they need an income after retirement. The investments (or interest earnings) are not taxed, but the income received will be taxable.

Another form of annuity insurance is “annuity with period certain” and this is set up for a certain necessity the insured will need an incoming amount of income for, and it will end on a certain date. Most people would not use this type of policy for a retirement plan. Sometimes, the insured can use the monies that would be paid to him or her to pay the premiums on the policy.

Another type of annuity insurance is called a life annuity. This form of insurance can be used as an income for the insured person’s lifetime, but if he or she dies before the insurance runs out, the income can go to a beneficiary. This one can also be referred to as a longevity insurance policy.

As with most insurance policies, even the annuity insurance plans, it can be difficult to decide about which one is the right one, so it is always a good idea to ask as many questions as possible, even if the questions may seem odd. All insurance companies are more than willing to answer any questions and help each person to decide on the best plans.

There are many ways the insured can save money on their car insurance but some people may not be aware of them. If you want to save on your car insurance you can do it online and save a trip to the agents office. The discounts members receive on their car insurance will vary from state to state and from company to company. Make sure you are aware of the discounts you are entitled to and keep up to date on all updates on your car insurance policy when you re-new it each year. Know what you are covered for and what you aren’t.

Many people become confused when they are involved in an accident because they thought they were covered for something when in fact they find out they weren’t. It is very important that everyone know and understand what their car insurance policy covers. If you don’t understand it, ask your agent to explain it all to you, they are great resources for information. There are some options that are good for some but not necessary for others. Choose the policy that fits your needs. Some people over-insure their vehicles when it isn’t necessary because the agent tells them they need it. Get to know your agent so you can feel comfortable knowing they are not just trying to sell you a policy you don’t need so they will get a larger commission for selling it.

Some of the many ways you might be able to save money on your car insurance online is through multiple car discount, or having insurance on your home, life, or health, through the same company. If you have not had an automobile accident for a certain number of years, you are entitled to a discount on your insurance. This is usually a two year period for most insurance companies. Your age will also sometimes get you a discount. As you grow older and if you keep up your insurance with the same company, you are usually entitled to a discount.

Keeping your payments paid on time is also an important factor. If you have taken a defensive driving class, you are entitled to a discount on your car insurance. There are sometimes discounts if you are associated with certain associations or groups. Some of these groups might be the military, MENSA, a large business, and more.

Other ways to save on your insurance is to insure your vehicle only for what it needs. If it is an older vehicle, you will only need liability and no fault insurance on it. There is no need for comprehensive insurance because the vehicle is not worth what the cost of repairs would be if you totaled it in an accident.

If you have have had your driver’s license revoked or suspended, or you have let your insurance lapse, you will be classed as high risk and you will not receive any discounts until you earn them again. It is best to keep up your premiums, drive carefully, do not let your insurance lapse, take the defensive driver course, and do not have any accidents.

Being responsible is key for providing you with cheaper rates. If you have been responsible you may be spending too much on your current car insurance. Check out Central Insurance, fill out the auto form, compare your rates and see for yourself how much you can save! You will be able to compare eight major insurers to make sure you are getting the coverage you need at the lowest price possible.

Choosing the right life insurance company is equally important as choosing the type and amount of coverage that the consumer may need. However, many individuals will simply choose a life insurance carrier based on the costs of the policy alone. While low rates may be of significant importance, so is finding a great life insurance company that suits the consumers unique needs. This is why it is crucial that many factors be taken into consideration when shopping for this type of insurance.

No matter what type of policy one is looking for, excellent customer service is always a must. An employee or company representative should be available to answer any questions or concerns the customer may have in a timely manner. In addition, being able to contact the life insurance company by various means is also important. While many consumers enjoy the convenience of e-mail and other technologies, other customer’s may prefer being able to talk with a real live person. Any reliable life insurance company will offer these amenities and more to the customer.

Another important aspect which is closely related to customer service is having easy to understand terms. Some life insurance companies don’t offer this. The customer should be able to understand the policy and exactly what it is that they are paying for. There are many individuals who honestly do not understand the coverage that they have purchased, let alone the costs associated with it. A trusted, reputable life insurance company will offer this information upfront. There are no hidden surprises in the policy.

Having no life insurance or not enough isn’t a risk worth taking. This is why the consumer should choose their life insurance company wisely. Checking out reviews, investigating the company, and making an educated decision should all be a part of this process.

Auto Insurance can be slightly confusing for those who are not incredibly familiar with the terms or the industry. A basic understand of the terms and policies will help the average consumer decide which kind of auto insurance offers the right protection for themselves and their vehicle.

Liability Insurance is your legal responsibility as a driver. This kind of insurance ensures that the other vehicle’s damage is paid for if you are in an at-fault accident. Most states require a driver to have Liability Insurance, though some only require the driver to have enough assets to cover the bodily and property harm of the injured driver. Even if your state does not require Liability Insurance, it is a very good idea to have it anyways; Personal Injury Claims can be exceedingly expensive.

Property Coverage covers any damage or theft which may occur to your car.

Medical Coverage covers the cost of hospital bills, rehabilitation, physical therapy, and sometimes unemployment wages.

Policies may differ according to the Insurance Carrier and the type of coverage that you choose. It may be best to talk with an Insurance Agent to best discern what needs you have, and how you can have them sufficiently covered. Most carriers will work with the driver to find them affordable plans, and some even offer discounts to drivers of a certain age, or those who have been accident-free for a period of time. If you are financing a car, your lender may require you to have certain types of coverage, so it is important to keep this in mind as you are deciding.

It is important to have current auto car insurance to protect yourself and your vehicle in the case of an unforeseen accident. Auto car insurance can provide many types of protection including medical, liability, uninsured motorist and many others for all types of situations. Liability coverage covers you in the event that you cause a car accident and damage another’s vehicle. It is also the minimum insurance normally required by most states.

Medical coverage insurance takes care of hospital, ambulance, and other medical expenses related to an accident. Full coverage entails covering any damage to your vehicle in a wreck, including the cost of its current value in case it is totaled. This can be beneficial especially if you are driving a new vehicle. Full coverage is often a requirement of many banking institutions if you have purchased any vehicle through a loan. Auto car insurance varies in the price you pay per month, or your rate, based on what kind of car that you have, its value, safety features, and can be affected by your credit score.

Customers can sometimes find discounts on their insurance for good driving records, being a senior citizen or a good student. Talking with your agent about possible discounts and types of coverage helps you to get great coverage at a low price. You should review your policy coverage annually to make sure that your coverage is current and covers you completely. This way, you are protecting your vehicle and your family the best.

Everyone needs life insurance. When you sign up for life insurance, you receive financial protection that helps to prevents financial loss; a loss that comes from unexpected or early death. An insurance policy promises to pay to your beneficiary—spouse or other—a specific amount of money when you die, in exchange for premiums that are paid on a regular basis.

The benefits of having life insurance are knowing that your family and spouse will be able to continue on and not be threatened by financial hardships, and if you have permanent life insurance—whole or universal life—you will be able to also build an investment in your life insurance policy; one that will grow tax free.

Research has shown that you should have enough insurance coverage that will replace the income you would have earned, if you had lived to earn that income.

Everyone needs life insurance because the death benefit that comes from the life insurance will help to replace lost income, should you die an early death. This income may help to replace the income that the family will need to keep going. In addition, life insurance can also help with a child’s education, pay off expenses and help build a savings program that will sustain the family for a period of time.

Life insurance needs are different for each family. What one family needs for insurance coverage, would not be appropriate or enough for another. There are several different types of life insurance: term insurance, whole life insurance, universal life and whole life and variable life.

Term insurance is when you purchase coverage at a particular price for a certain period. Should you die during that time, your beneficiary will receive the value of the policy.

Whole life is similar to term; however, you purchase the policy to cover you whole life, not just a set period in as in term insurance. Throughout the life of the policy, your premiums remain steady and the company is allowed to invest part of your premiums.

Universal life insurance in when you decide how much you want to invest above the minimum premium. With this insurance, the company makes the decision where to choose the investment. Often such investments are with mortgages and bonds.

With variable life insurance there are more options of investment; stocks of which is one. Variable life insurance is like universal life insurance in that the returns on investments can offset the cost of premiums or add into the account. And, depending on the policy, your beneficiaries will receive the face value of the policy or the face value plus part or all of the cash account.