Insurance

Insurance Tips California Homeowners at risk because of Insurance Policy Misunderstandings

Posted on by blogger

Imagine a worse case scenario situation where there’s a massive earthquake and your house crumbles, taking with it everything you have worked for and treasured. You call your insurance company so you can start to rebuild your life and instead of being guided through a claims process, you are instead informed that your California homeowners policy does not cover damage caused by earthquakes and you are left with nothing but a pile of rubble and an unpaid mortgage!

This is the situation millions of homeowners could find themselves in should the worst happen, simply because many of us don’t understand what our homeowners policy offer. Many California homeowners will presume, due to the high risk, that earthquake coverage is automatically provided, but in most cases this is sadly not the case.

Homeowners insurance can be confusing and complicated. Most people know they need it, but don’t know exactly what is and is not covered when they sign up. A recent poll suggests that four out of every ten people surveyed don’t know what their homeowners insurance policy covers. For example, more than 2 in 5 wrongly believe mold damage is covered by a standard homeowners policy. In other cases Homeowners policy holders underestimate their insurance, with 73% unaware that items stolen or damaged in a vehicle are covered. Perhaps to be taken more seriously by California homeowners, the study shows that 51% of respondents are unaware that Earthquake protection is not covered by standard California insurance policies. On the bright side, 90% of Californians do know that fire damage is covered by their homeowners policy, while 72% know lawsuits from injured visitors are also covered. However, to get the best from our policies, it is important that we understand what we are each entitled to.

There’s a lot of confusion, misunderstanding and misconceptions surrounding home insurance which could lead to serious and costly consequences. It is human nature to not want to think about the unthinkable happening, so most people buy insurance and don’t take the time to understand or update it. However, in the event of a disaster or emergency home owners may find that their insurance policies will not cover their costs and have to fork over their own money, which in turn could result in a debilitating financial situation. Even a simple case of Mold damage repair can cost tens of thousands of dollars.

While Californian homeowners must take some responsibility in knowing what is and isn’t covered by their insurance policy, insurance is not typically expressed in a way easily understood by the general population. It is in the homeowner’s best interest to protect themselves, their properties and possessions. Unfortunately the only way to effectively do this is to take the time to read and understand your insurance policy documents and if you have any questions or doubts to contact your insurance company and get a confirmation (preferably in writing) as to what is and is not covered. The better prepared you are, the less likely you’ll get any nasty surprises.

**Article is free to be reprinted as long as bio remains**

Sargeant Insurance is located in Los Angeles, CA. We specialize in personal and business lines insurance.Request a quote online by visiting our website at www.sargeantinsurance.com . Also, be sure to sign up for a monthly news, exclusive offers and tips at http://eepurl.com/tMPkL

Critical Illness Insurance Singapore Plan -the Media Are Giving Insurance Singapore Companies A Hard

Posted on by blogger

Recent reports in the press get again lambasted the insurance Singapore providers over critical condition insurance. The primary problem is that an essential illness claim just not as straightforward as, for instance, a claim under insurance Singapore coverage. With life insurance it is going too hard for the insurer to argue that you are not dead.

By his or her very nature, crucial illness claims less complicated more complicated. The insurance provider will need to satisfy by itself that the claim will be validated in 3 key areas prior to it meets the particular claim:
-Contains the illness been effectively diagnosed?
-Is the verified illness included in the plan of insured essential illnesses covered by the plan?
-Did the insurance Singapore holder fully disclose their own medical history and existing state of well-being on their original application?

On the first level, it is obviously inside the policyholder’s interest to verify the actual medical diagnosis, so there is hardly clash between the insurance companies and also the policyholder on that will issue. It is the subsequent two areas that your insurer needs to examine, where conflicts seem to be arising.
With continuous development in the health care knowledge, from time to time there might be some situations in which validation falls in to a grey area. A policyholder may argue that their particular illness is covered by insurance whereas the insurance provider will argue that it is not really. Insurance Singapore companies are aware of this concern and they often affect the wording in their guidelines in an attempt to clarify the particular scope of protection and eliminate locations for dispute. Even so, disputes do come about all too frequently as well as sparks fly every time a policyholder thinks his / her illness is covered though the insurer disagrees.

A case in point will come before the Courts immediately. Mr. Hawkins from Staffordshire is actually suing Scottish Provident for 400,000 within the terms of his essential illness policy. Essentially, his medical advisers believe his sickness is insured although the insurers’ medical experts disagree. If the courtroom find in favor involving Mr. Hawkins, the media will have a field day time and the important illness insurers are affected further bad media they can sorely afford.

An additional summons, filed recently within the High Court along with again involving Scottish Provident, best parts the problem when some insurance Singapore company considers that a plaintiff mislead them about his or her original application. Our understanding is when an applicant omits relevant details or provides inaccurate information on their software from, this comes from obtaining insurance about false pretenses. This summons may be issued on behalf of Johnson Welch from London that is suing Scottish Provident for 206,800. The situation goes back to Year 2000 when a few years, soon after first starting his important illness policy, Mister Welch received confirmation that they was suffering from testicular cancer malignancy. The insurer declined the claim as a consequence of “non-disclosure alleging that Mister Welch had not been honest with regards to his smoking habit. He is doing admit that he do smoke earlier in the life but is actually resolute in saying that he long since abandoned when he requested critical illness insurance Singapore plan. As such, Mr. Welch feels that he did full the application honestly.

Many of us assume that the scenario will centre about whether Mr. Welch precisely answered the using tobacco questions on his program. Most insurers specify “a smoker” as someone who has used to smoke, or has normally used, nicotine items within the previous Five years. (Some insurance Singapore companies embrace a 1year cut off.) When Mr. Welch had without a doubt smoked during the specific years, he would happen to be obliged to disclose similarly info on the application and also the insurer would have listed his insurance Singapore consequently. In this context, it really is relevant to note that people who smoke are charged around 65% more for crucial illness over as compared to non-smokers. We anticipate that will Mr. Welch’s lawyers will certainly argue either he did not smoke through the period in question or perhaps he omitted your smoking information simply by pure oversight and in virtually any event, his previous smoking is not unimportant to his testicular cancer malignancy. Interesting issues along with we’ll let you know the end result.

Mr. Hawkins case will be fundamentally different. The idea illustrates the problems that will arise if plan documents imprecisely describe a disease or if the technological diagnosis of an illness provides scope for medical experts to disagree. In either case the issues are totally outside the policyholders management at a distressing period for them and their loved ones and we must value their anguish. The actual long-term solution must lay in improving the health care definitions within the coverage. It is probable until this will result in more health-related jargon that the typical man in the street will discover difficult to understand but perhaps which is preferable to what Mister Hawkins is going through.

Mister Welch’s court case should stand as a obvious reminder to every person that applications regarding insurance Singapore must always be totally accurate as well as completed in good trust. We recognize that in some cases this may nevertheless leave room pertaining to dispute (and Mister Welch’s case may be an illustration), but if an applicant does not complete the types accurately, they are utilizing the great risk and just about any claim they make could possibly be rejected.

Rightly or even wrongly, the papers have a history of offering the insurance Singapore companies a difficult time, casting them because heartless big business. This kind of serves to reinforce the particular public’s feeling that insurance Singapore agencies are devious and not being trusted – particularly it seems, in respect regarding critical illness insurance Singapore policy. This view can be reinforced by the fact that about 20-25% of critical condition claims are declined (although this rejection fee does vary in between insurers). This issue is one area that insurers should come to grips along with it’s detrimental to clients and undermines self-assurance in insurance Singapore and that must be harmful to the development of the insurance Singapore sector.

In fact to put absolutely no finer point into it, it’s a tragedy. Possibly 1 in 6 as well as 1 in 5 males will be diagnosed with a crucial illness before their particular normal retirement age. As a result, critical illness insurance Singapore coverage is vastly important for the security of family funds. The problems we have outlined are obviously contributing to a scenario where almost everybody requires critical illness insurance Singapore policy, but fewer and fewer individuals are taking it up.

Auto Insurance Quotes Online Comparison

Posted on by blogger

Staying with the same insurance provider for several years would possibly cost you extra. You may be getting loyalty discounts but the amount of premium is considerably high ranking compare to the standard rate that a good number insurance providers offer. However, getting free auto insurance quotes online would save you hundreds of dollars on your car insurance.

There are many competing insurance providers out there therefore they would love to get hold of you so that they can close a deal. One of the greatest and quickest ways to get many auto insurance quotes as you want is by comparing them online. You may be wondering why selected insurance company offers the same coverage in a lower price giving huge savings to their customers. However, keep in mind that each insurance provider operates differently though they are offering the same service. Some of the reasons why they offer this discounted price is to keep their overhead rate as low as possible in order for you to stay with them.

There are many of property where every consumer can find on car insurance. It may be through the registered auto insurance provider, agents and through the internet. Just promote to sure that the information you will provide on quotes is protected and confidential. Furthermore, having a clean driving record, which earnings no car accident involved in a span of time, would get special discounts and lower premiums from the company.

Drivers who are living in rural areas get the low cost yearly premiums compared to those drivers who live in the urban areas. Since there are more vehicles in larger cities, there is a greater occasion of accidents. Moreover, in larger cities there are more chances of vehicle thefts compared to rural areas.

However, choosing a low premium does not mean with the purpose of you will be compromised with the coverage. It is all up to you, if you think that the coverage you choose as it should be then purchase it. That is why it is best to do your own analysis before finally deciding of buying it.

In doing your own examine, you may know how many complaints were filed to a regard company. At least, you will be guided with complaints from the quality of their service. Due to more insurance companies are supplementary than willing to be of service and provide an adequate auto insurance coverage for you.

Best Auto Insurance Quotes Where to Get Them

Posted on by blogger

What would you consider to be the best auto insurance quote possible? How about a quote that gives all the coverage you want at a lower price than you are paying now? This may sound impossible, but if you haven’t compared insurance quotes lately, you can probably save money and get a better quote than you realized.

How Much Insurance Do You Need?

Of course, the best insurance is going to be insurance that gives you the coverage you need to protect yourself. Every state has different minimum insurance requirements, so a good place to start figuring out how much insurance you need is at your state’s Department of Insurance website. Here, you can find out what the minimum requirements are for your state.

Keep in mind, though, that these minimum requirements will likely not be enough if you are ever involved in a serious accident. If you can afford the cost of higher limits, the extra protection is worth it.

Maximize Your Discounts

Another way to get a great auto insurance quote is to look for discounts that you qualify for. Most insurance companies offer discounts such as …

* Good student discount

* Defensive driving discount

* Discounts for safety devices

* Discounts for anti-theft devices

These discounts directly lower your insurance premium.

Check the Internet for the Best Rates

Shopping around for insurance is easier than is has ever been, thanks to insurance comparison websites on the Internet. You can go to one of these websites, fill out one simple online form, then receive quotes from several insurance companies all competing for your business. Then all you do is choose the company that offers you the best quote.

The Internet can also help you check out the insurance companies you’re considering:

* Go to your state’s Department of Insurance website to see how many complaints customers have made about each insurance company

* Visit J.D. Power & Associate’s website at jdpower.com to get insurance company consumer ratings

* Go to websites such as standardandpoors.com and ambest.com to check the financial stability of each company

Visit http://www.LowerRateQuotes.com or click on the following link to get the best auto insurance quotes from top-rated companies and see how much you can save. You can get more tips and advice in their Articles section, and get answers to your questions from an insurance expert by using their online chat service.

The authors, Brian Stevens and Stacey Schifferdecker, have spent 30 years in the insurance and finance industries, and have written a number of articles on getting the best auto insurance quotes.

Life Insurance And Taxation

Posted on by blogger

If your company owns life insurance policies on your executives or any key people for that matter, you need to be aware of the potential tax ramifications and the requirements to avoid taxation of benefits. Important changes have taken place in the last few years that can significantly impact the taxation of corporate owned life insurance. The information below is designed to inform you of the IRS regulations that have been implemented over the last few years and what is needed to comply with these IRS requirements so that policy proceeds avoid needless taxation.*

Pension Protection Act of 2006 and Life Insurance Taxation

On August 17, 2006, President George Bush signed tax legislation containing provisions that significantly impact key man and other employer owned life insurance purchased after August 17, 2006. The legislation, known as the COLI (Corporate Owned Life Insurance) Best Practices Act (which is part of the Pension Protection Act of 2006), includes the proposed IRC Section 101(j). Under this proposed law, life insurance death benefits for business-owned life insurance policies issued after the effective date of August 17, 2006 are income taxable (to the extent the death benefit exceeds the employer’s premiums) unless certain requirements are met.

This new legislation applies to all employer-owned policies issued after August 17, 2006 and includes policies used for key man insurance, stock redemption plans, Corporate Owned Life Insurance and Supplemental Executive Retirement Plans (among others). It may also extend to collateral assignment (economic benefit) regime split dollar and split dollar loans. With this law, all situations where an employer will have full or partial ownership of a insurance policy that is issued after August 17, 2006, regardless of the purpose of the policy, will need to meet certain requirements and follow specific guidelines to avoid potential taxation.

Avoiding Taxation of Key Man Life Insurance

In order to prevent policy proceeds (death benefits) from being income taxable, both of the following requirements must be met:

1. Notice and Consent Requirements:

a) The employee must be notified (in writing), prior to the life insurance policy being issued, that the employer intends to buy a policy on his/her life and disclose what the maximum face amount that is being applied for on his/her life is;

b) The employee must provide written consent to being insured and agree that the employer may choose to keep the policy in force even after the employee separates employment; and

c) The employee must be notified in writing that the employer is the beneficiary of all or part of the death benefit proceeds.

Under the COLI Best Practices Act, unless the employer provides written notice and obtains the employee’s written consent prior to the issuance of the policy, the death benefit of the life insurance policy will be taxable from day 1. Notice and consent may not be obtained after the life insurance policy is issued to remove this taxable death benefit status.

2. Once the “Notice and Consent Requirements” are met, there are two “Exceptions” to the rule taxing death proceeds payable to an employer, one of which must be met:

a.) Exception #1:

1) The insured was an employee at any time during the 12-month period before the insured’s death OR

2) The insured was a Director or “highly compensated employee” at the time the contract was issued.

b.) Exception #2:

Any amount received by the employer as a result of the insured’s death is paid to:

1) A family member of the insured;

2) A designated beneficiary of the insured under the contract other than the employer;

3) A trust established for the benefit of a family member, other designated beneficiary, or the insured’s estate; or

4) A family member, designated beneficiary, trust, or estate in exchange for any interest they hold in the corporation / employer (i.e. buy-sell agreement).

If both the “Notice and Consent Requirements” and one of the “Exceptions” above are met, Corporate Owned Life Insurance proceeds would be received income tax free if the policy death benefits would otherwise be eligible for favorable tax treatment.

COLI Best Practices Act- Reporting Requirements

All employers are required to report annually all corporate-owned life insurance policies to the IRS. The annual reporting requirements imposed under the IRC Sec. 6039I include:

1) The total number of employees at the end of the year;

2) The number of employees insured under COLI arrangement at the end of the year;

3) The total amount of insurance in force on all insured employees at the end of the year; and

4) The employer’s name, address, tax payer identification number and type of business, and

5) A statement of valid consent for each insured employee (or, if all required consents are not obtained, number of insured employees for who consent was not obtained).

The IRS requires this reporting annually on Form 8925 ” Report of Employer-Owned Life Insurance Contracts.” It is a simple form and must be completed to comply with IRS Code. You should consult your CPA or professional tax advisor immediately for more information on Form 8925 and the IRS reporting requirements.

If proper record keeping and reporting is not maintained, any and all key man life insurance policy proceeds or other corporate owned life insurance death benefits may be subject to income taxation

In Conclusion

Corporate Owned Life Insurance Policies including key man insurance policies issued after August 17, 2006 may have death benefits that are subject to income taxation if certain requirements are not met. The Pension Protection Act of 2006, which includes the COLI Best Practices Act, includes provisions that have significant consequences for key man and other employer owned insurance purchased after August 17, 2006. You need to understand the Notice and Consent requirements and well as the Exceptions and Record Keeping and Reporting requirements and comply with the IRS so that key man insurance policy proceeds avoid needless taxation. Unfortunately, if you have a key man policy issued after August 17, 2006 and you have not been compliant, your best bet to avoid potential income taxation may be to scrap your current policy and start over!

* All of the above tax information is for information purposes only and is provided to explain the basic tax treatment of life insurance based on the Internal Revenue Code. Any individual or entity considering any life insurance policy should consult with their own CPA or tax/legal advisor that understands their particular tax circumstances and the rules governing their state. In no way is this information intended to be tax or legal advice.