Insurance is what you buy as a safety net against the unthinkable. However, typically when you file an guarnatee claim you feel you've got much less than you deserved. "All those premiums over the years gone to waste" you sigh! Here are some tasteless guarnatee pitfalls you can avoid so that you can get the right value for money on your insurance.
Life Insurance:
• Your life guarnatee course is not a savings account, don't turn it into one. Do not buy a cash value life course when what you undoubtedly need is a term life policy. If you need to invest money long term for retirement planning, 401(k) is a much good option any day!
• Don't delay buying life guarnatee course and don't underinsure. A rule of thumb is to reconsider at least ten times your each year wage as the estimate you would want your dependents to have. Remember, the main purpose of a life guarnatee plan is to contribute financial retain to your dependants when you are no longer around to do it yourself.
• Do not let your agent rule what's good for you. Make sure you understand the implications and fine print of every word of your guarnatee policy.
• Do not treat the purchase of your life guarnatee course as a one-time-activity. Remember, needs turn over time.
• Instead of buying just an Accidental Death / tour emergency insurance, it makes much more sense to buy a faultless life guarnatee policy, which might look more costly initially but will turn out cheaper in the long run.
Insurance
Home Insurance:
• Never make the mistake of confusing what you paid for your house with its rebuilding costs. Land is mostly indestructible and including land in your evaluation to rebuild your home structure just makes you spend more on premiums without getting corresponding returns. When you claim, you are paid to rebuild / renovate the structure.
• Comb your home guarnatee course word for word. Do not assume anything. Chances are, if you're living in a disaster-prone area, prone to earthquakes or floods, whether you might need to buy a detach coverage for these, or your course may have a detach deductible for claiming any damage arising out of these major disasters.
• Make sure you check the guarnatee requirements of an area before buying a house there. After Hurricane Katrina, many large home guarnatee associates pulled out of that area. Check companies, coverages in case,granted and rates prevalent in a location before you buy a asset there.
• Ensure you update your home guarnatee firm as soon as you make any modifications/ additions to your former home structure at the earliest. Not updating your guarnatee firm about changes is one of the biggest reasons for home owners' claims being rejected.
• If you live in a group housing or condominium scheme, check what is covered under the group housing guarnatee plan so that you do not buy double coverage for the same structure. It's a good idea to add on to the course to cover everything.
Car Insurance:
• It's not a very good idea to insure your auto to only comply with the basic liability guarnatee requirements mandated by your state. Keep liability amounts much higher. For example, minimum state mandated liability for Az auto guarnatee is 15/30/10. However if you are at fault in an emergency and your bill from the aggrieved party exceeds this, you will have to pay from your own pocket. What if you hit a doctor, or worse still a car full of kids. Can you imagine the financial implications?
• While it's never a good idea to underinsure, many make the mistake of over insuring their car. Retention collision and thorough on a very old car with petite resale value doesn't undoubtedly get you much if you were to total your car. Typically drop collision coverage once your car is 7 years and thorough coverage once it is older than 10 years.
• Before development any modifications in your car, check if your guarnatee firm is ok with them. Most guarnatee associates do not cover engines which have been modified.
• Make sure you are aware what the blue book value of your car is, while filing a claim for your totaled vehicle. A good idea is to look at the purchase value of at least five similar cars in your area and then median out their cost. That's what your car guarnatee firm should be paying you for your totaled vehicle unless it had been insured at an agreed value.
• population comprehend how costly guarnatee on a car is, after buying it. Check the records of cars of distinct models to see which one is cheaper to insure before buying your car. You save big $$ and dissatisfaction later on.
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