Business Liability Insurance.

We all read the stories in the news about huge, multi-national companies being taken to court over seemingly ludicrous matters - "Coffee too hot", "Peanuts in the peanut butter", "Your fast-food made me obese" - and we all have a chuckle. Yet worryingly, especially if you own a business, many of these cases are actually won by the claimants, leading to huge payouts from the companies involved. What's more, if the correct business liability insurance is not in place, the businesses involved are in serious trouble financially.

Yet it's hard to know exactly what type of business liability insurance you need - cover and needs differ if you are a small to medium sized outfit, a large multi-national company or self-employed working out of your home. What remains true of all, however, is the need to have the right business liability insurance in place, especially as the liability environment in the UK becomes more complex.

Business Liability Insurance - Arm Yourself With Information
Business Liability Insurance is a legal requirement in the UK, but there are varying degrees of cover you can purchase. Smaller businesses often struggle to find insurance for their needs as they may not be able to afford all of the cover on offer under standard business liability policies, and they actually may not need all of the elements on offer under the policy - if you work from home, it can be even trickier to find a policy to suit your needs. It's certainly worth doing some research to establish exactly what kind of business liability insurance you need and which company can best provide it - a search on the internet and insurance comparison sites can often be the best place to start.

Business liability insurance covers the cost of people connected with your business who may become ill or injured in some way - for example, as soon as you hire somebody, the law states you must have employer's liability insurance, in place. Without this, you expose yourself to both breaking the law and potentially being sued by an employee if they are injured at work. Public liability insurance protects your business if a member of the public is injured in some way by your business or one of your employees, and professional indemnity insurance is worth considering if you have a business which offers members of the public advice in any way - if you make a mistake and are sued, your costs are covered.

How To Protect Yourself From Fraud?

If you become a victim of car insurance fraud, you pay. Not only will you pay higher premiums because you may acquire a costly claim, but, as with any car accident, you and your family could pay with your lives. It is important to learn more about fraud protection so you can protect yourself from others who may choose you to be a part of their next car insurance accident fraud scam.

Insurance fraud began when insurance first began. Incidents have been recorded as far back as ancient Greece. Ship scuttling was an insurance scam in ancient Greece where ships were purposely sunk. Later insurance fraud traveled to England then to America. When automobiles were introduced it opened a whole new arena for fraudulent insurance claims. Today, with modern technology, many fraudulent car accident claims do arise from sophisticated organized crime rings that can be hard to detect. Don't let this make you a victim of an insurance scam. Whether the insurance scam is from an organized crime ring or an individual, there are fraud protection steps you can take to help you be more aware and avoid being a scammer’s next victim.

First, it is important to know what types of insurance scams are used. There are many types of car insurance scams. Set-up car accidents can range from vehicles deliberately stopping in front of a driver to cause a rear-end car accident to drivers who pretend they are being helpful but intend to cause a car accident that will look like the innocent drivers fault. Scams can also involve people one would generally trust such as doctors and lawyers.

Educating yourself more about fraud protection against car insurance accident scams is the best way to avoid being someone's next victim. Here is a list of common scams to be aware of:

# Staged Rear-End Car Accidents: A scam driver will quickly get in front of an innocent car and then slam on their brakes. This causes the innocent driver to rear-end the scam driver. Along with collecting money for vehicle damages, the scam driver will often fake medical injuries to collect even more.
# Adding Damage: After an accident, either staged or not, the scam driver will go to another location and cause extensive damage to their vehicle and claim that the damage happened during the original accident.
# Fake Helpers: Scam Helpers will wave an innocent driver into traffic, but then crash into the innocent driver. When it comes time to file the claim, the scam driver will deny waving anyone in. Other ways fake helpers try to scam people is by offering to help an innocent driver find a auto repair shop, doctor, or lawyer. In this case, everyone is in on the scam. The body shop charges you enormous rates, the doctor and lawyer also lie to collect more from your insurance.

Since these scams can happen at any time and place, it is important to be prepared. Awareness is the most important. Watch for drivers who may be following you or examining your driving habits. Also, make sure you leave plenty of room in front of you in order to stop. If an accident does happen, take notes on everything about the other car, the accident, and everybody that was in the other car. Keep a disposable camera in your car to record damage to both vehicles. Furthermore, use your judgment in driving, not others. Make sure you have enough room to get out and just let other cars pass instead of letting others "waive you in." And, when you talk to your insurance company, let them know if you felt something was suspicious.

Steps To Filling Auto Insurance Claim.

These are the steps that one have to follow to file a claim for recovery of his damage:

1. Evaluate whether or not you should file a claim: Did you know that just when you call your insurance company with a question about possibly filing a claim it is often recorded on your insurance record? It is important to keep your insurance record clean and one way is deciding whether or not you should file a claim. It doesn’t matter if the accident is your fault or not, you should ask yourself first if you can pay for the damage. Simply put, if you can pay for it yourself without financial hardship, don’t file the claim.

2. Fill out your what to do after an auto accident worksheet: This worksheet, which when you click on the title is provided for print-out, will help you keep track of the information you will need to file your auto insurance claim. It is important to get every detail of the accident documented and to try to find witnesses that would be willing to talk to your insurance company to back-up your story.

3. File the claim ASAP: You will want to file the claim as soon as possible with your insurance company. Even if it is not your fault, your insurance company will handle the claim process as your advocate.

4. Prepare for a possible call from the other insurance company: If there is a dispute between the two parties in the accident, you may get a call from the other driver’s insurance company asking for your version of what happened at the accident scene. If this happens make sure you document everything you say and the name of the customer service agent you talked too.

5. Finally, getting your car fixed: If you had body damage to your vehicle this is when you will finally get it fixed. After your claim is approved, you will likely get a call from your insurance company about sending an insurance adjuster out to assess the damage or asking you to send your car to a pre-approved shop to get it fixed.

What To Do If You Are Not Able To Find Auto Coverage?

Some drivers have a hard time obtaining insurance. This can result from a number of factors, including a poor driving record, type of vehicle, claims history, experience, etc.

There are insurance companies that write non-If your driving record prevents you from obtaining standard policies in this state.

They include:

* Allstate
* Dairyland
* Farmers
* Financial Indemnity
* Guaranty National
* Infinity
* Leader
* Nationwide
* Progressive
* Safeco
* Viking Insurance Company of Wisconsin

If your driving record prevents you from obtaining a policy in the non-standard market, your agent or broker will contact the Automobile Insurance Plan on your behalf.

More than 55 years ago, the Washington State Legislature created this plan to provide auto insurance coverage to high-risk drivers who are unable to find coverage. To qualify for this special coverage, you must:

* Be a Washington state resident or a member of the U.S. military
* Hold a valid Washington state driver’s license
* Not have any debt from previous auto
* insurance coverage

How To Save Money While Buying Auto Insurance.

Since most of us are required to carry automotive insurance - whether it be basic liability or more - the quest to save money is a common topic. If we go with cheaper, "discount insurance agency" type places, we often sacrifice service - not to mention the trust that many of us put in brand names. If, on the other hand, we go with well-established, trustworthy agencies, we often end up paying a lot more - several hundred dollars a year in some cases. But there are plenty wats to save a little money without giving up qualiy, here they are:

Figure out how much auto insurance you need

If your car is not yet paid off, you will have to have more insurance coverage than someone who owns his car outright. In addition, different states require different minimum amounts of insurance. Many people prefer to have more than the minimum required, just to be covered in the event that an accident does occur, while others prefer to carry only the minimum coverage. Take into account how much you drive, how much your car is worth, how much you have in assets in case you are sued, and how likely your car is to be stolen when considering how much auto insurance you need.

Shop around

Just as you take your time when buying the vehicle, checking several dealerships to get the best price, you should do the same when looking for the auto insurance. A site like this is a great place to start because it gets quotes from all the top companies.

Buy the right vehicle

Some vehicles are cheaper to insure. Insurance actuaries collect information about traffic accidents from all over the US. They rank vehicles according to the likelihood they will be involved in an accident or stolen. Although you may think some vehicles lack style and are boring to drive, it can be worth buying them to reduce your premium.

Drive safely

Insurers rate drivers by age, gender and driving experience. You can tilt the points system in your favor if you avoid accidents and do not pick up tickets.

Check out the ranking points for safety features

You will pay less to insure vehicles fitted with antilock brakes, airbags, and so on. It’s also cheaper to insure a vehicle if it lives in a garage or is parked off the road at night.

Read the policies before you decide which to buy

Check whether the policies give you the cover you need. Read through to see exactly what is and what is not included. Try to fit the policy to your situation, only buying as much cover as you need. Even then, everything may look good on paper, but the crunch comes if you have to make a claim.

Check out the insurance companies

Every state has an insurance department or commissioner, and their websites confirm which insurance companies are licensed to sell auto policies. The best also carry information about the number of complaints upheld against all these companies. Most of the complaints are about the way policies are sold and how the claims are handled. This can give you vital information on which companies to avoid. Even though the premium may cost slightly more, it can be worth paying the extra to get with a company that handles claims well.

What about the new online-only auto insurance?

By eliminating the costs of running a brick-and-mortar operation, insurance companies can offer you better terms at more affordable premiums.

Check your cover regularly

Using this site, it costs you nothing to check whether the quotes for the insurance to cover your vehicle have changed. New companies may have different policies on the market. competition may be bringing down premiums. It can save you a lot of money to change insurance companies every six or twelve months. With budgets tight, never just renew the existing policy. Always check out the market.

Keep a clean driving record

One of the best ways to save money on car insurance is to simply be a good driver. Without accidents or tickets on your record, your auto insurance premiums are going to be much lower.

Know Your Coverage Types.

­What is your car insurance actually insuring? Although you're buying a single insurance policy covering a specific vehicle, a number of components make up the final cost:

* Bodily injury liability: Covers injury and death claims against you, and legal costs, if your car injures or kills someone.

* Property damage liability: Covers claims for property that your car damages in an accident. Because liability coverage protects the other party, it is required in all but three states.

* Medical payments: Pays for injuries to yourself and to occupants of your car. This is optional in some states. In "no-fault" states, personal injury protection replaces medical payments as part of the basic coverage.

* Uninsured motorist protection: Covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. "Under-insured" coverage also is available, to cover claims you may make against a driver who has inadequate insurance. In some states, as many as 30 percent of drivers are uninsured.

* Collision coverage: Covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium. While it is legally optional, a lending institution or leasing company usually requires collision coverage.

* Comprehensive (physical damage): Covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive also carries a deductible.

Car Insurance Types.

The law requires that anyone who drives a car must have car insurance. Purchasing car insurance involves buying a policy from an insurance provider. The premium you pay depends on a number of factors such as age, gender, and the make, model, and year of the car. When you look for an insurance policy that will provide you with appropriate coverage, it is important to understand the types of car insurance policies that are available. So, what are the different types of auto car insurance options available?

Fully Comprehensive Auto Insurance

Fully comprehensive auto car insurance is without doubt the most expensive. However, with so many cars financed by finance companies, it is also probably the most common type of auto insurance – as the finance companies make it a requirement that the owner insure their automobile fully comprehensive.

In short, as its name suggests, fully comprehensive auto car insurance insures the owner of the car against all manner of events – from an accident to theft of the car. The upside of this type of insurance is there is no need to show ‘fault’ in order to claim. So, if you have an accident, which is not your fault, and the owner of the other car, who is at fault, doesn’t give you his insurance details, or, worse, is uninsured, you can still claim against your insurance company. Similarly, if your car is stolen, then fully comprehensive insurance allows you to claim against the insurance company.

However, do read your insurance policy carefully, as most auto car insurance companies refuse to insure 100% of the value of a car, choosing instead to only insure 80%, or so, of the value. The auto car insurance companies claim that doing this prevents fraudulent losses of cars where the owner of the car either no longer wants the car, or is encountering financial difficulty.

Third Party, Fire & Theft

Third party, fire & theft auto car insurance is a middle of the road car insurance package popular with those who have already paid off their auto loans, but who still have a certain level of intrinsic value in their car.

Under this type of auto insurance, most of the pay-out events covered under fully comprehensive auto insurance are covered – such as fire & theft. However, in the event of an accident, the insurance company is only required to pay-out if you are at fault, and you hit another car. So, in the event that you hit a wall, or only damage your car, the insurance company will not be required to pay. Likewise, if you are involved in an accident with another car, and are not at fault, your insurance company will not be required to pay-out, regardless of whether or not the other person has sufficient insurance to pay for the damage done to your car.

Third Party Insurance

Third party insurance is the ‘basic’ type of insurance, and only covers circumstances where you are involved in an accident, are at fault, and hit a third party. In all other events, the auto car insurance company is not required to make a payment. As such, it is also the cheapest type of auto car insurance you can purchase. That said, this type of insurance is usually only purchased by those car owners who have an old car with little or no value.

Specialized Car Insurance

Finally, strictly speaking any car over 25 years old is considered a ‘classic’. As such, this type of car should be insured as a classic car – with all of the benefits and requirements of such. Although ‘classic’ auto car insurance usually has all of the benefits of fully comprehensive auto car insurance, one significant disadvantage that classic car insurance has is that you are usually limited to the number of road miles you can drive in any given year – so check your policy carefully.

Last Minute Travel Insurance.

Many people purchase excellent travel tickets and vacations at the last minute. In fact, there are a significant number of web sites and companies who offer great deals on vacations and airline tickets for travelers who purchase their vacations and tickets at the last minute. You can obtain great prices because the travel company doesn't want to leave that seat unfilled and will discount the fair or vacation to fill it.

However, TFG Global Travel Insurance.com offers excellent travel insurance for last-minute travellers. You can obtain great travel insurance plans if you are traveling on short notice because our web site allows you to purchase travel insurance online in minutes and receive your travel insurance confirmation in just a few moments via email or later by regular mail.

If you purchase a last-minute flight or vacation, you may want to consider a comprehensive trip cancellation and interruption plan. Most vacation policies such as these do not cover cancellation because of an existing pre-existing condition if the travel insurance policy is not purchased within a set number of days.

Unfortunately, many last minute vacationers forget to get their travel insurance. Note that our web site does offer travel insurance to people who are already traveling. Some policies will cover you with a one or three day waiting period and you can print or take note of your policy and claims numbers if you purchase via the internet. It is a good idea to have access to your emails while traveling or use a Gmail or Yahoo email account to access your travel insurance policy documents.

Foreign Travel And Health Insurance.

When you travel outside your health insurer’s regular provider network, your insurer may not pay your medical bills, except for emergency care. Before you travel abroad, check with your health insurer to make sure you understand the rules in your policy. In some cases, especially if you plan to travel for an extended period to study or work, you may want to buy additional coverage.

What you should know about foreign travel and health insurance
Medicare doesn’t cover medical charges you incur outside the U.S. Other health insurers also may exclude or severely limit coverage for medical treatment you receive outside the U.S. You may want to buy additional health insurance to cover yourself while you are traveling.

If you are traveling abroad for a short time, such as for a vacation, insurers offer reasonably priced policies. Insurers may sometimes link this coverage to your purchase of other types of coverage at the same time — such as trip-cancellation insurance that includes medical coverage. Vacation insurance policies also typically cover only short-term travel — such as two weeks. If you think you might stay outside the country for any length of time, be sure to specify any long-term coverage needs.

Under Washington state law, these specialized policies are not classified as full-fledged health insurance. Insurers may legally refuse to cover some pre-existing medical problems. Lastly, unlike most insurance you buy in Washington state, some of these policies may include a deductible that applies to each claim.

Companies that offer health insurance to foreign travelers
The following companies offer health insurance to Americans traveling abroad and to families of Americans who live abroad and want to visit the U.S.

• Access America: 1-800-284-8300
• Champion Insurance: 1-800-643-4675
• Peterson’s of L.A.: 1-800-345-8816
• Travelex: 1-800-228-9792
• Travel Assistance International: 1-800-821-2828
• Travel Guard International: 1-800-782-5151
• Wallach & Company: 1-800-237-6615

Types Of Travel Insurance(2).

Travel insurance could be divided in these categories as well:

Single Trip Travel Insurance

Single trip travel insurance covers you and your family for a single trip or holiday you intend to travel. It includes the basic cover of trip cancellation/interruption and medical travel insurance for the period of your travel which is limited by some companies. The additional coverage is offered as a part of packages or is your choice to include.

Annual Travel Insurance/Multi Trip Travel Insurance

Annual travel insurance policy is for frequent travelers. This is for the traveler who goes on holidays for more than one trip a year. The lower limit for days of travel and the number of trips are specified by some companies. Those opting for this policy can avail great discount and other additional coverage like business cover, golf cover, winter holidaying and sport included in some packages.

Long Stay Travel Insurance

A long stay travel insurance policy which offers a duration of 3 to 18 months is ideal for travelers who take long vacations and travel extensively. Some go to visit relatives and stay for long periods of time with them. It offers the basic travel insurance coverage's and you can always choose other additional cover.

Medical Travel Insurance

Medical travel insurance policy covers health related items that occur during the term of the policy and not already existing ailments. The applicant needs to declare pre-existing medical condition before travel and in case of any pre-existing ailments there is a separate package that involves pre-existing medical travel insurance. If any information as to a pre-existing situation is concealed you cannot claim for insurance if any symptom related to the pre-existing ailment occurs.

Cruise Travel Insurance

Are you traveling by sea in a registered cruise liner or any other mode of water transport? Topical storms or hurricanes can play havoc and may require your trip to be cancelled. If you or your family's journey is to the Pacific islands or the Caribbean's and you have to travel by a cruise your travel can be insured by cruise travel insurance. Sometimes you are insured by the company that owns the cruise. You could also avail the offer by some other travel insurance companies. The travel may be long or just for a few hours to a few days. The costs would depend on the duration of travel.

Group Travel Insurance

Going as a group is great fun. You could be just friends going for a long vacation or a part of a pilgrimage or a social club or any other group going on a tour. Each member getting an insurance policy is cumbersome and involves a lot of paperwork. Group travel insurance is an offer that provides cover for the entire group. By taking a voluntary/mandatory group travel insurance you can be assured that those who opt for the travel insurance or all of you are safe from mishaps that occur during your travel.

Business Travel Insurance

If you own a business and your employees need to undertake travel on a regular basis you can consider going for a business travel insurance policy. Many employers take care of the employees who travel through group insurance policy. Employees therefore overlook travel insurance only to have found later that their travel was not insured and the loss they incurred cannot be compensated. Another common mistake is not including business travel in the annual travel insurance policy.

Types Of Travel Insurance.

An insurance covering all your travel surfing becomes necessary when you are travelling abroad. Even in some cases, if you are in your domestic locations, it is important that your trips are covered by an insurance putting your all worries off. Travel insurance is such an insurance scheme which is specially meant to give you a good cover when you are travelling abroad or any domestic location.

The following is a list of different types of travel insurance policies available:

Trip Cancellation/Interruption Insurance: This type of insurance provides coverage if an unexpected event causes you to cancel or interrupt your trip. It is designed to provide coverage for such circumstances as a sudden illness, injury, or death of the insured, or a member of the insured's family.

Comprehensive Travel Medical Insurance: This type of insurance is designed for individuals who have left their jobs and lost their insurance coverage, or for people residing and working in another country other than their own place of citizenship for an extended period of time.

Baggage Loss/Delay Insurance: This coverage protects you in the event that your luggage is lost, delayed, or stolen. This may include compensation if your bags are delayed for more than 12 hours after you arrive at your destination.

Emergency Travel Medical Insurance: This insurance covers emergency services while traveling abroad. It covers a wide range of medical problems.

Accidental death insurance: covers your life. The insurance will compensate your family member if you meet an accidental death on the tour. Thus knowing well about the four types of insurance, which cover you when you are travelling, help you in having a good deal while planning to buy an insurance.

Travel Insurance Is A Must For Business Travellers

Business persons who are traveling should make sure that they get adequate travel insurance when they travel on business. The Travel Industry Association of America recently reported that business travellers are taking approximately 5 work related trips per year. Business owners should make sure that they are and their employees are covered by a comprehensive travel insurance policy that will cover medical and evacuation expenses. Such costs could cripple an employee's finances and he or she may look to the employer to cover these medical costs, especially if they are on company business.

Employers should purchase a single or group travel insurance policy to cover employees while traveling for business. If employees are traveling more than one time per year, a multi-trip travel insurance plan is the most cost effective travel insurance plan. A group travel insurance plan can also offer great savings either on single or multi-trip basis. It is recommended that such a group multi-trip plan, which can be a stand alone plan or part of a group benefit plan, also cover the employee while he or she is on non-business trips.

Medical evacuation coverage is a must for any travel insurance plan as the costs can also run into the thousands of dollars and the travel insurance assistance provider can coordinate the evacuation details. Most travel insurance plans include medical evacuation, but it can be sold on a stand alone basis for individuals and groups. A business travel insurance plan can also aid in assessing your medical condition, provide translation or even legal help.

Some business travel insurance plans also include coverage for baggage loss, which is quite common these days, especially in some airports such as Terminal 5 at Heathrow. Some business travel insurance plans also include trip cancellation and trip delay, but these can also easily be purchased on a single trip basis.

For business trips to dangerous regions such as Iraq or Afghanistan, make sure you get a travel insurance policy that will cover terrorism and war risk. You may also want to obtain Accidental Death and Dismemberment coverage to cover travel to dangerous regions.

Enjoy Treaveling With Travel Insurance.

Travel Insurance is highly beneficial to you with regard to your life security as well as risk coverage to your money during travel whether domestically or internationally. There are many forms of travel insurance. It may consist of a specific travel period such as holiday insurance and can also be continuous travel insurance on your journeys to various destinations. Some of the travel insurance plans are offered on yearly basis known as annual travel insurance. Travel insurance plans for a longer period of time are offered for those people who have to travel often to different destinations of the world. They help save the precious time of the travelers to resort to insurance companies again and again. Travel Insurance ensures cover to maximum risks during your travel and duly compensates for your losses. The most common risk situations covered under different travel insurances are emergency situations, injury or death of the traveler and theft of money and damage to personal things. The list of losses covered under your travel insurance could vary with different insurance companies and the insurance packages offered by them.

Travel health insurance is regarded among the most popular travel insurance available to travelers on their domestic and international journeys. It is also known as travel medical insurance and reimburses the expanses spent on unexpected medical treatment during travel. Travel health insurance includes a number of plans for your health and life security from flight accidents to terrorism. The benefits may vary with the amounts you spend in purchasing the Travel health insurance. There are two prominent sources all over the world to buy travel insurance. First source is the insurance companies and the second is the travel agents and travel suppliers. The best source, however, is the insurance companies where you can get a number of advantages in comparison to that of travel agents and suppliers.

If you are a frequent traveler or you are just planning for a tour during your vacation, you should have the updated information on various travel insurance plans offered by different insurance companies for you. The information can be collected through the internet as almost all the eminent insurance companies maintain their websites for their prospective customers. There are a number of travelers insurance plans with varying rates and facilities; search which plan suits you the best. Some people may be conscious of getting cheap travel insurance for their travel. The internet can also help you to find out travel insurance plans with comparatively lower rates, matching to your budget requirements.

Tips For The Students Who Are Going To Study Abroad.

Students find studying abroad an exciting and rewarding experience of life. However the trips are trouble free but one needs to be prepared for everything. The first thing that the student and the parents should do is to contact the study abroad office and ask about the facilities and resources that are going to be provided to the student and his parent throughout the journey and back home. The student must apply and get the passport ready beforehand and ask about any changes in the travel warnings from both the countries. Parents must also be sure that their passports are updated and free of any problem to avoid last moment hassles.

Students should try to research on the culture of the country that they are going. The student must check out with student health insurance study abroad provider whether his health will get coverage outside the country or not. If the student is on prescribed medicine he should have sufficient stock to last at least a month or two so that there is no problem in the foreign country. Parents must get the assurance that they have the authority to approach and guide their child in case of any medical assistance. Since every country has its own laws, the student must learn the basics so that he behaves there keeping away from any legal problem. Last but not the least thing is that the student must register his name in his country’s embassy and his purpose of coming abroad.

Pet Healthcare Insurance.

Pet Insurance is very similar to human health insurance which offers a range of programs tailored to suit the needs of domestic pets. While pet insurance remains a relatively underdeveloped product in North America, with less than 1% of all pets being insured, European levels of insured pets range from 12% to 50%. Growing up with pets is a great learning curve. Today we are not only dog, or cat lovers anymore. We have become spider lovers, frog, or ferret lovers. Many pet owner are willing to spend incredible amounts of money for their beloved pets.

However, they seem to completely neglect the fact that their pets can fall seriously ill, or have a grave accident. Since vet science advanced considerably of the last years, medical interventions for pets cost almost as much as for a person. They can amount to outrageous sums of money? People have usually a health insurance from the time they are born. But what about pets?

Why is a pet healthcare insurance so important?

* You only insure what you value. You need to answer yourself this question: How much is
your pet' s health worth to you?

* Do you have money to squander? Imagine how much money you would have to pay out of your own pocket when your pet is sick!

* It protects you from unwanted surprises and gives you peace of mind.

* Compare pet healthcare insurances, their packages, and their fine print.

* It is important to get a pet insurance at an early time.

* Be aware of exclusion criteria. Certain breeds, pre-existing medical conditions, and the age such as old age of your pet can be a criteria for exclusion.

* Check the deductibles that you have to pay before your pet healthcare insurance starts to pay for your vet expenses. This amount can vary, and it depends how much you want to spend each time that there is an incident with your pet.

* If you are battling with too many obstacles to get your pet insured, a pet care savings program can take over the role of a pet healthcare insurance

* To save money, it is also advisable to join a pet care discounter

How To File A Claim?

Review your policy or employee booklet carefully to make sure the plan covers the service in question. If you have any reason to think a health care service may not be covered, or that your company disagrees with your understanding of the policy, talk it over first with your provider and with the insurance company. Resolving questions first can prevent problems later.

You should never assume your plan will cover a treatment or service. Follow your plan’s rules, including pre-certification requirements and use of network providers. Your provider may require you to make a copayment or pay your coinsurance at the time of visit.

Fill out any claim forms the provider or insurance company gives you. Be sure to include your policy number and other identifying information.

How to submit a claim yourself:

* Find out if your provider submits the claim for you or if you need to do it.

* If you need to do it, review the claim information to make sure it is complete and correct.
* File the claim as soon as you get the bill from the provider.

* Send it to the correct address.

* Keep a copy for your reference.

* Wait for your company’s statement before you pay your provider directly.

* Allow reasonable time for the company to process your claim. The company must inform you if it needs any additional information to complete the claim. Sometimes, it will request additional information directly from the providers; in other cases, it will return the claim form to you to get more information.

If the insurance company denies your claim:

* They should state the reason on your explanation of benefits.

* If you disagree with the reason for denial, check your policy or employee booklet for the company’s appeal procedures.

* The company should answer procedural questions about appeals over the phone. Call the company’s assistance line (the phone number should be listed on your statement).

* Submit your appeal in writing. The company may require information from your doctor.

Tips Before Buying A Medical Insurance.

You Need To Ask Yourself the Following Questions Before You Buy a Medical Insurance Policy:

*What are the various types of health insurance programmes that are available to me, and which is best suited to suit the needs of my family and myself

*How do I choose the ideal health care plan?

*What is ideal for me among the vast choice of health care plans before me- is it organized care- short term and long term, does it cover disabilities, does it deal with just health insurance?

*Can I have information on issues like private insurance, public expenditure and uninsured customers?

*Can i afford the cost of health care?

*Would there be a medical insurance policy that would cover the sort of services that I require?

Today we have a vast variety of affordable and comparable health insurance policies. On the one side we have:

• The Traditional Indemnity Plans, and on the other
• HMOs or the Health Maintenance Organisation. In between we have the
• PPOs ( Preferred Provider Organisations) plan and the
• POS (Point of Service) plan.
  

The latter two are hybrid variations of the traditional indemnity plans and the HMOs. While the HMO is normally credited with providing the customer the cheapest and most affordable health insurance but with minimal benefits, the indemnity plans are considered the most expensive but crediting with providing the customer maximum benefits.

It would be smart to pay close attention to the specific features of whichever plan you intend to choose. For example:

* Are the prescription drugs that I habitually use also covered?

* Do I have to pay application fees? (Please note that none of the best heath insurance firms require the customer to pay either for enrollment or for application fees).

* Do I get cover for both inpatient and outpatient costs? Do they both share a common deductible in a single calendar year? (A deductible refers to a sum of money that you pay each year, upfront, for your medical costs, before your insurance cover starts to pay up).

* Are the benefits from such health insurance cover on a fixed schedule? Are they reasonable?

* Is there a waiting period for such a cover before I am able to start utilizing my policy? Are there any clauses, preexisting, that I ought to know about?

How Do I Pick the Ideal Health Plan That Is Best Suited for My Family and Myself

It is of the utmost importance that you understand the moot points of the various medical insurance covers before you. They could be broadly categorized into:

Affordability

* How much is my monthly premium?

* After I have paid my deductible, upto what percentage of my medical costs would I be reimbursed?

* If I use the services of a medical professional not included in the insurance firm's network, would I be reimbursed less? If so, how much?

* Do I ask for insurance cover for all of my medical costs or just for the major spends?

Types Of Health Insurance.

If you are self-employed, or otherwise find yourself in a situation where you need to obtain your own health insurance coverage, the choices available to you can be confusing. You'll be sifting through terms like HMO, PPO, premiums, co-pay and deductibles, which can be intimidating if you don't know what you're looking at. The biggest thing to consider is the type of policy you're looking at so you can compare apples to apples. The three most common type of policies are: PPO plans, fee-for-service, and HMO plans.

PPOs (Preferred Provider Organizations)

A Preferred Provider Organization (PPO) is a health insurance plan where medical treatment is fully covered if provided by a doctor or hospital belonging to the PPO's network of health care providers. Treatment performed outside the network is also covered, but at a reduced rate. Policy holders are liable for any differences if seeking out of network treatment. PPOs are essentially a group discount form of health insurance; by maintaining administrative control over a group of doctors and hospitals, PPOs are able to provide medical care at a discount. PPOs generally require prior approval before allowing major medical services.

HMOs (Health Maintenance Organizations)

Health insurance from Health Maintenance Organizations (HMOs) greatly restricts who a patient may see for non-emergency medical services. The advantage is a significantly lower premium. HMOs have generated considerable controversy, as in many plans doctors receive financial incentives for reducing the amount of medical services provided to patients. One method of doing this has been to pay doctors a fixed monthly fee for each patient, regardless of the treatment they need. HMOs do tend to cover more preventive procedures such as immunizations, mammograms and physicals.

Fee-for-Service Policies

Fee-for-service plans are also sometimes called indemnity plans. In these types of plans, the insurance companies pay fees for the services provided to you. The fee-for-service plans are generally provide the most flexibility and choice of doctors and providers, but they generally have one major drawback. This type of insurance usually requires you to pay the provider up front for the services, and then submit forms to the insurance company to be reimbursed.

If having the greatest flexibility in choosing a health care provider is important to you, this type of plan can satisfy that, but be prepared to pay for service up front and then have to do the legwork of submitting claim forms yourself in most cases.

Like all insurance policies, fee-for-service plans will require that you pay a monthly premium, deductibles, and coinsurance after your deductible is met. Fee-for-service policies also typically have annual caps which limit the out-of-pocket expenses you can incur in one year.

Long Term Health Insurance.

Long term care health insurance is a type of health insurance wherein the receiver of the insurance is guaranteed coverage even if a situation arises in which he or she will require a very long period of treatment. Health insurance policies will pay specified sums for medical expenses or treatments, and can offer many options in their approaches to coverage.

There are different types of health insurance coverage designed to meet your needs and budget. The cost of health insurance, called the premium, may be higher for a policy that provides a great amount of coverage and flexibility, while the premium may be lower for a policy that provides less coverage or flexibility.

Long term care insurance offers protection against unforeseen or catastrophic long term illnesses, and provides policyholders with all the assistance that they would require under a long illness. It can be of great help to older people who are not in a position to look after themselves. Thus, long term care insurance provides financial security.

The need for long-term health care can arise gradually with age, when people need more and more assistance with the activities of daily living. Some people may need nursing-home care for a matter of months, while others may need care for years.

As the policyholder grows older, the premiums for long-term care policies increase to cover this risk. When buying long-term health coverage, the consumer should anticipate such situations and see that it will not strain a fixed income, resulting in cancellation of the policy just before coverage is needed.

How To Claim For Your Policy.

Review your policy or employee booklet carefully to make sure the plan covers the service in question. If you have any reason to think a health care service may not be covered, or that your company disagrees with your understanding of the policy, talk it over first with your provider and with the insurance company. Resolving questions first can prevent problems later.

You should never assume your plan will cover a treatment or service. Follow your plan’s rules, including pre-certification requirements and use of network providers. Your provider may require you to make a copayment or pay your coinsurance at the time of visit.

Fill out any claim forms the provider or insurance company gives you. Be sure to include your policy number and other identifying information.

How to submit a claim yourself:

• Find out if your provider submits the claim for you or if you need to do it.
  
• If you need to do it, review the claim information to make sure it is complete and correct.
  
• File the claim as soon as you get the bill from the provider.
  
• Send it to the correct address.
• Keep a copy for your reference.
• Wait for your company’s statement before you pay your provider directly.
• Allow reasonable time for the company to process your claim. The company must inform you if it needs any additional information to complete the claim. Sometimes, it will request additional information directly from the providers; in other cases, it will return the claim form to you to get more information.

If the insurance company denies your claim:

• They should state the reason on your explanation of benefits.
  
• If you disagree with the reason for denial, check your policy or employee booklet for the company’s appeal procedures.
  
• The company should answer procedural questions about appeals over the phone. Call the company’s assistance line (the phone number should be listed on your statement).
  
• Submit your appeal in writing. The company may require information from your doctor.

Things To Be consider While Buying Insurance On Internet.

You can also buy insurance on internet. The accessibility and ease of the Internet has revolutionized the shopping world. Everything from pet food to furniture is available 24 hours a day, seven days a week, from the comfort of your home. This includes insurance. Here are some tips to help you protect yourself when buying insurance on the Internet.

Research, research, research
Research is by far your best protection. Fortunately, the Internet is also a great research agent. Determine which insurance coverage best fits your needs, then shop around for companies, agents, cost and coverage.

Double-check the company and agent
In order to sell insurance in our state, the company and the agent must be licensed. To confirm the credibility of a company or agent, check with our agency for the following facts:

• Is the company licensed in Washington?
• Is the company licensed to sell the line of insurance you are interested in purchasing?
• Is the agent licensed in Washington and a legitimate representative of the company?
• Does the company have a good record of handling policy complaints?

Purchasing on the internet
Once you’ve checked your facts and found the company, agent and policy that suit your needs, you’re ready to purchase. At this point, security is the name the game. Take some extra precautions to protect your personal information:

• Update your browser. The newer browsers are equipped with more current security measures. (One way to check if you are on a secure site is by checking the address. A secure site address may begin with https:// instead of the usual http://. Or, the site may have a small key or closed lock icon located somewhere in the bottom left or right corner of the screen. )
• If you cannot confirm the security of the browser, contact the company or agent and submit your paperwork via fax or mail.
• Take extra precautions when paying with a credit card. Some credit cards may be equipped with antitheft protections. Review your credit card agreement for antitheft provisions.

The proof is in the paperwork
As you complete your research and purchase, it’s important to keep detailed records. Get all rate quotes and key information in writing for your file. Also, once you decide to purchase online, keep a copy of all paperwork you complete and sign, as well as any correspondence, special offers and payment receipts.
You should receive a copy — not a photocopy — of your new policy within 30 to 60 days of purchase. If you do not receive a copy, contact the insurance company immediately.

Insurance "Red Flags"
Here are some quick "red flags" to warn you against possible insurance fraud:

• Don’t submit to high-pressure tactics. If you are being overwhelmed with offers from a particular group or agent that make you uncomfortable, trust your instincts and steer clear.
• Do your research. Scam artists may try to convince you to change coverage quickly without giving you the opportunity to do adequate research.
• Seek advice. If a particular policy requires a large deposit in an account, ask a third party — such as a reputable local insurance agent, accountant or financial advisor — for advice.
• If it seems too good to be true, it probably is!

ULIPs vs Mutual Funds.

How ULIPS can make you RICH!

Despite the seemingly comparable structures there are various factors wherein the two differ.

In this article we evaluate the two avenues on certain common parameters and find out how they measure up.

1. Mode of investment/ investment amounts

Mutual fund investors have the option of either making lump sum investments or investing using the systematic investment plan (SIP) route which entails commitments over longer time horizons. The minimum investment amounts are laid out by the fund house.

ULIP investors also have the choice of investing in a lump sum (single premium) or using the conventional route, i.e. making premium payments on an annual, half-yearly, quarterly or monthly basis. In ULIPs, determining the premium paid is often the starting point for the investment activity.

This is in stark contrast to conventional insurance plans where the sum assured is the starting point and premiums to be paid are determined thereafter.

ULIP investors also have the flexibility to alter the premium amounts during the policy's tenure. For example an individual with access to surplus funds can enhance the contribution thereby ensuring that his surplus funds are gainfully invested; conversely an individual faced with a liquidity crunch has the option of paying a lower amount (the difference being adjusted in the accumulated value of his ULIP). The freedom to modify premium payments at one's convenience clearly gives ULIP investors an edge over their mutual fund counterparts.

2. Expenses

In mutual fund investments, expenses charged for various activities like fund management, sales and marketing, administration among others are subject to pre-determined upper limits as prescribed by the Securities and Exchange Board of India.

For example equity-oriented funds can charge their investors a maximum of 2.5% per annum on a recurring basis for all their expenses; any expense above the prescribed limit is borne by the fund house and not the investors.

Similarly funds also charge their investors entry and exit loads (in most cases, either is applicable). Entry loads are charged at the timing of making an investment while the exit load is charged at the time of sale.

Insurance companies have a free hand in levying expenses on their ULIP products with no upper limits being prescribed by the regulator, i.e. the Insurance Regulatory and Development Authority. This explains the complex and at times 'unwieldy' expense structures on ULIP offerings. The only restraint placed is that insurers are required to notify the regulator of all the expenses that will be charged on their ULIP offerings.

Expenses can have far-reaching consequences on investors since higher expenses translate into lower amounts being invested and a smaller corpus being accumulated. ULIP-related expenses have been dealt with in detail in the article "Understanding ULIP expenses".

3. Portfolio disclosure

Mutual fund houses are required to statutorily declare their portfolios on a quarterly basis, albeit most fund houses do so on a monthly basis. Investors get the opportunity to see where their monies are being invested and how they have been managed by studying the portfolio.

There is lack of consensus on whether ULIPs are required to disclose their portfolios. During our interactions with leading insurers we came across divergent views on this issue.

While one school of thought believes that disclosing portfolios on a quarterly basis is mandatory, the other believes that there is no legal obligation to do so and that insurers are required to disclose their portfolios only on demand.

Some insurance companies do declare their portfolios on a monthly/quarterly basis. However the lack of transparency in ULIP investments could be a cause for concern considering that the amount invested in insurance policies is essentially meant to provide for contingencies and for long-term needs like retirement; regular portfolio disclosures on the other hand can enable investors to make timely investment decisions.

4. Flexibility in altering the asset allocation

As was stated earlier, offerings in both the mutual funds segment and ULIPs segment are largely comparable. For example plans that invest their entire corpus in equities (diversified equity funds), a 60:40 allotment in equity and debt instruments (balanced funds) and those investing only in debt instruments (debt funds) can be found in both ULIPs and mutual funds.

If a mutual fund investor in a diversified equity fund wishes to shift his corpus into a debt from the same fund house, he could have to bear an exit load and/or entry load.

On the other hand most insurance companies permit their ULIP inventors to shift investments across various plans/asset classes either at a nominal or no cost (usually, a couple of switches are allowed free of charge every year and a cost has to be borne for additional switches).

Effectively the ULIP investor is given the option to invest across asset classes as per his convenience in a cost-effective manner.

This can prove to be very useful for investors, for example in a bull market when the ULIP investor's equity component has appreciated, he can book profits by simply transferring the requisite amount to a debt-oriented plan.

5. Tax benefits

ULIP investments qualify for deductions under Section 80C of the Income Tax Act. This holds good, irrespective of the nature of the plan chosen by the investor. On the other hand in the mutual funds domain, only investments in tax-saving funds (also referred to as equity-linked savings schemes) are eligible for Section 80C benefits.

Maturity proceeds from ULIPs are tax free. In case of equity-oriented funds (for example diversified equity funds, balanced funds), if the investments are held for a period over 12 months, the gains are tax free; conversely investments sold within a 12-month period attract short-term capital gains tax @ 10%.

Similarly, debt-oriented funds attract a long-term capital gains tax @ 10%, while a short-term capital gain is taxed at the investor's marginal tax rate.

Despite the seemingly similar structures evidently both mutual funds and ULIPs have their unique set of advantages to offer. As always, it is vital for investors to be aware of the nuances in both offerings and make informed decisions.

What Is ULIP?

Unit linked policies are insurance investment plans that offer the policy holder to have insurance cover with reasonably good returns in a long term. ULIPS are recently introduced in insurance sector after considering the boom in the share market. These gave good returns upto 54% on the investment. The expected return in the normal market condition is around 26 to 45%. ULIPS are most sold life insurance products in the recent past due to their flexibility of operation and investment options and good returns from them.

Unlike traditional and conventional insurance products, there is less chance for lapse of policy even the premium is unpaid. The risk of investment in the ULIPS is hold by the policyholder. Most insurance companies offer you different investment options in equity, bonds and securities with different risk level. Taking Higher risk is always associated with expecting good returns. Investment in the bond fund is associated with study returns at 11% with less risk. The premium has to be paid for minimum 3 years. There is lock in period for 3 years during which policy holder is not allowed to either partially withdraw from the policy or fully withdraw the amount. Lock in period is preffered because in the early years there will be more allocation and policy administration charges. So the fund need atleast 3 years to give good returns. The amount is paid after considering the present NAV (Net Asset worth) of the plan. After 3 years lock in period ULIPS are same like your bank account, You can either partially withdraw money or terminate the policy without any extra charges involved.

Insurance Sector In India.

Major players/ Companies in Indian insurance sector:
1. Public sector companies
2. Private sector companies

Public sector companies includes LIC OF INDIA which is dominant player in Indian insurance industry and holding upto 75% stake in the insurance premium collected and number of lives insured. The Life Insurance Corporation (LIC) of India founded in 1956 is the largest life insurance company in India owned solely by the Government of India. Headquartered in Mumbai, which is considered the financial capital of India, LIC presently has 7 Zonal Offices and 100 Divisional Offices situated all around the country. In addition to an even distribution of 2048 branches located in different towns and cities of India, LIC also has a network of around one million agents who solicit life insurance policies to the public.

Upon privatisation of insurance sector in india around 1999-2000 all segments of the financial sector had been opened to private players and it was only a matter of time before insurance followed. The bigger private players claim that opening up insurance will give policy holders better products and service; the opponents of privatization argue that in a poor country like India insurance needs to have social objectives and newcomers will not have that commitment. Many international players are eyeing the vast potential of the Indian market and are already making plans to come in.
Many International players have made partnership with the local companies and entered into the insurance sector and they are slowing occupying the major share of insurance sector which was earlier occupied by state hold LIC of India.

The major private players include:
LIFE INSURERS

Public Sector

Life Insurance Corporation of India www.licindia.com

Private Sector

Allianz Bajaj Life Insurance Company Limited www.allianzbajaj.co.in
Birla Sun-Life Insurance Company Limited www.birlasunlife.com
HDFC Standard Life Insurance Co. Limited www.hdfcinsurance.com
ICICI Prudential Life Insurance Co. Limited www.iciciprulife.com
ING Vysya Life Insurance Company Limited www.ingvysayalife.com
Max New York Life Insurance Co. Limited www.maxnewyorklife.com
MetLife Insurance Company Limited www.metlife.com
Om Kotak Mahindra Life Insurance Co. Ltd. www.omkotakmahnidra.com
SBI Life Insurance Company Limited www.sbilife.co.in
TATA AIG Life Insurance Company Limited www.tata-aig.com
AMP Sanmar Assurance Company Limited www.ampsanmar.com
Dabur CGU Life Insurance Co. Pvt. Limited www.avivaindia.com

GENERAL INSURERS

Public Sector
National Insurance Company Limited www.nationalinsuranceindia.com
New India Assurance Company Limited www.niacl.com
Oriental Insurance Company Limited www.orientalinsurance.nic.in
United India Insurance Company Limited www.uiic.co.in

Private Sector
Bajaj Allianz General Insurance Co. Limited www.bajajallianz.co.in
ICICI Lombard General Insurance Co. Ltd. www.icicilombard.com
IFFCO-Tokio General Insurance Co. Ltd. www.itgi.co.in
Reliance General Insurance Co. Limited www.ril.com
Royal Sundaram Alliance Insurance Co. Ltd. www.royalsun.com
TATA AIG General Insurance Co. Limited www.tata-aig.com
Cholamandalam General Insurance Co. Ltd. www.cholainsurance.com
Export Credit Guarantee Corporation www.ecgcindia.com
HDFC Chubb General Insurance Co. Ltd.

REINSURER
General Insurance Corporation of India www.gicindia.com

Insurance Global Scenario.

The international insurance industry is one of the largest sectors of finance. It ranges from consumer to corporate and industrial insurance, and even reinsurance, or insurance of insurance.

The major insurance markets of the world are obviously the US, Europe, Japan, and South Korea. Emerging markets are found throughout Asia, specifically in India and China, and are also in Latin America.

With the internet and other forms of high-speed communication, companies and individuals are now able to purchase insurance and related financial products from almost anywhere in the world. Increasing affluence, especially in developing countries, and a rising understanding of the need to protect wealth and human capital has led to significant growth in the insurance industry.

Given the evolving and growing socio-economic conditions worldwide, insurance companies are increasingly reaching out across borders and are offering more competitive and customized products than ever before.
Global insurance platform has witnessed a phenomenal change over the past decade. The forces of globalization and liberalization have brought the insurance companies across the world closer to each other than ever before. The insurance landscape has changed significantly over the years due to many unforeseen incidents around the world like 9/11, SARS, derailment of corporate governance, natural disasters like Tsunami, Hurricane Katrina etc. Outsourcing is another major development in the insurance sector. Waning margins, massive claims disbursement and increasing competition in recent years, especially post 9/11, have compelled insurance companies to opt for outsourcing, to improve efficiency and channelize resources towards the core functions like product development and innovation.
Over the past ten years, global insurance premiums have risen by more than 50%, with annual growth rates ranging between 2 and 10%. In 2004, global insurance premiums amounted to $3.3 trillion. The global insurance market grew by 7.6% in 2007 to reach a value of $3,688.9 billion. In 2012, the global insurance market is forecast to have a value of $4,608.5 billion, an increase of 24.9% since 2007. Life insurance dominates the global insurance market, accounting for 59.7% of the market′s value. Europe accounts for 39.3% of the global insurance market′s value.
AXA generates 4.4% of the global insurance market’s value.
Top ten global insurance companies are american intl group(USA), AXA group (france), allianz worldwide(germany), Manulife financial (Japan),General group (italy), prudential financial (united states), met life (united states), Aviva(united kingdom) and Aegon(Netherland).
BOOMING INSURANCE INDUSTRY IN INDIA:
With a huge population base and large untapped market, insurance industry is a big opportunity area in India for national as well as foreign investors. India is the fifth largest life insurance market in the emerging insurance economies globally and is growing at 32-34% annually. This impressive growth in the market has been driven by liberalization, with new players significantly enhancing product awareness and promoting consumer education and information. The strong growth potential of the country has also made international players to look at the Indian insurance market. Moreover, saturation of insurance markets in many developed economies has made the Indian market more attractive for international insurance player.

Total life insurance premium in India is projected to grow Rs 1,230,000 Crore by 2010-11.
- Total non-life insurance premium is expected to increase at a CAGR of 25% for the period spanning from 2008-09 to 2010-11.
- With the entry of several low-cost airlines, along with fleet expansion by existing ones and increasing corporate aircraft ownership, the Indian aviation insurance market is all set to boom in a big way in coming years.
- Home insurance segment is set to achieve a 100% growth as financial institutions have made home insurance obligatory for housing loan approvals.
- Health insurance is poised to become the second largest business for non-life insurers after motor insurance in next three years.
- A booming life insurance market has propelled the Indian life insurance agents into the ‘top 10 country list’ in terms of membership to the Million Dollar Round Table (MDRT) — an exclusive club for the highest performing life insurance agents.

Things That Determine How Much Insurance You Need.

If you are an earning member of your family, and there are members of your family who are financially dependant on you, you need life insurance. But how much life insurance do you need?

There are many factors that are relevant in determining the amount of life cover you should buy:

Need for minimum protection

It is essential that a particular level of income should be maintained for the family even when its breadwinner is not around. Suppose a family's present needs are Rs 25,000 p.m. The extent of life insurance for its earning members should be such that interest income from the sum assured can meet the family's monthly expenses of Rs 25,000.

If one also wants to provide for the future fall in the purchasing power of rupee due to inflation, one must necessarily take policies for higher amounts. No widow, they say, has ever complained that her husband bought too much insurance.

Current income level

Payment of insurance premium results in an outflow of disposable income. You may, therefore, not like to buy too much insurance. One might have to limit the quantum of insurance keeping in mind the cash flow problems that will be created as a result of the obligation of regular payment of insurance premia.

Tax benefits

You should also take into account the tax benefit under Section 80C.

Accumulating for specific needs

If you expect to spend a particular sum of money for the education and / or wedding of your children, you may like to buy an insurance policy for a specific sum to meet such a lump sum commitment.

Present age

Your present age is a critical factor in deciding the quantum of insurance that you can afford. The rates of premium go up with the advancing age of the life assured. Hence, one can buy more insurance for the same premium at a younger age than at an older age.

The final decision rests upon a careful consideration and balance of all the above factors. The need for minimum protection may be quite high, but the current need for disposable income may not immediately permit buying adequate insurance.

You then have to make a compromise and buy extra insurance as and when you can afford it.

The 5 simple rules

In the event of any misfortune, well-planned life insurance can protect your loved ones from financial difficulties. However, in most cases, people find it difficult to estimate the correct value of insurance they need.

Partly this is because life insurance needs change through different stages of life. Young people with no dependants may not have much need for life insurance.

As one's family responsibility grows, life insurance needs too increase. Thus, a periodical review based on your family circumstances is required in order to ensure that the coverage is adequate.

There are several simple methods available to broadly estimate your life insurance needs. Five simple rules are:

1. Income rule

The most basic rule of thumb is provided by the income rule which holds that individual insurance cover should be at least around eight to ten times one's gross annual income. For example, a person earning a gross annual income of Rs 1 lakh should have about Rs 8 to10 lakh in life insurance cover.

2. Income plus expenses rule

This rule suggests that an individual needs insurance equal to five times your gross annual income, plus the total of basic expenses like housing or car loans, personal debt, child's education, etc.

3. Premiums as percentage of income

By this rule, payment of insurance premium depends on disposable income. In other words, one should decide the quantum of insurance after meeting the regular outgo from salary.

From the first two rules, you can make a broad estimate of the minimum insurance you should have. The premium as percentage of income rule can help you fine-tune your cash flow by committing an appropriate percentage of your income for paying life insurance premium.

4. Capital fund rule

This rule suggests that if you need Rs 1 lakh p.a. for your family needs, and assuming you do not have any other income-generating assets, you may like to create a capital fund of Rs 12.5 lakh (Rs 1.25 million) which can yield Rs 1 lakh (Rs 100,000) annual income @ 8% p.a. You may therefore buy a life insurance policy of Rs 12.5 lakh.

5. Family needs approach

This rule holds that you purchase enough life insurance to enable your family to meet various expenses in the event of key earning person's death. Under the family needs approach, one has to divide his family's needs into two main categories: immediate needs at death (cash needs), and ongoing needs (net income needs).

Caution: Insurance is not investment You should always remember that life insurance is a protection and not really an investment because financial returns are rather meagre. (This is equally true of the life insurance portion of even a ULIP scheme.)

If you take inflation into account, there could even be a negative rate of real return at the time of maturity of your insurance policies. So, while it's important to secure your family's well being through adequate insurance of the lives of the earning members, over-investing is a mistake.

NEED FOR INSURANCE.

Its a common question that why insurance is necessary , what are the benifits? The question contains the answer within itself. After all, life is filled with tensions and apprehensions regarding the future and what it holds for the individual. Despite all the planning and preparation one might make, no one can accurately guarantee or predict how or when death might result and the circumstances that might ensue in its aftermath.

I am not saying that life and existence are constantly fraught with danger and uncertainty. But then it is essential that you plan for the future. The chances for a fatality or an injury to occur to the average individual may not be particularly high but then no one can really afford to completely disregard his or her future and what it holds.

People generally regard insurance as a scheme when and where you have to lose a lot to gain a little. Nevertheless, insurance is still the most reliable tool an individual can use to plan for his future.

MEANING AND TYPES OF INSURANCE.

According to Encarta Encyclopedia, insurance is a contractual arrangement that provides for compensation by an insurer to an insured part if a specify set of circumstances occurs. These circumstances could be accident, personal injury, death, loss or damage to property or any other number of instances that can compensated for financially.

How does the insurance company operate? The insurance company operates by collecting small contributions from many people who are exposed to risks. This money collected is used to settle those who fall victim of such risks. These contributions which the insurance company collects are called premium.

To some individuals, insurance is seen as an investment. But is insurance an investment? No I don’t think that insurance is an investment. Insurance is a way we share our risk with others. It is a way of getting protection to reduce damages associated with some mishaps. No matter how careful one may be, he/she must need one type of insurance or the other.

When you buy insurance, it means that you are sharing your risk with others. Simply, the insurance company is a risk management company that can help anyone to reduce risks associated in day to day activities. Man is vulnerable to dangers and by virtue of this need insurance to help him cope in an unfriendly world.

Another thing you have to know when buying insurance is “insurance policy”. The insurance policy is the rule or guideline of the insurance company. It is the insurance policy that will help you to choose a better option for your insurance needs.

Here are few major types of insurances:

• Life insurance:Descendent's family receives financial benefits. Life insurances also offer paid proceeds to the beneficiary.
• Automobile insurance:Usually automobile insurances cover damages and legal financial expenditures of the automobile driver.
• Health insurance:Health insurance cover the expenditures associated to treatment and medical expenditures.
• Credit insurance:Borrowers often fail to repay debts,loans and mortgages due to certain unavoidable circumstances,credit insurances can be of great help during such crisis.
• Property insurance:Property protection insurance provide protection from risks associated to theft,fire,floods etc.

This type of insurance can be further classified into specialized forms as follows:

• Fire Insurance
• Earthquake Insurance
• Flood Insurance
• Home Insurance
• Boiler Insurance