Know About the Consequences of Not Having Public Liability Insurance Coverage

Public liability insurance is an important insurance policy that protects your business during the time of adversities. Especially, if your business handles risky activities like construction, plumbing, etc., or if the public enters into your business premises like in retailing, then this insurance plan is a must have. Owing to the uncertainty of accidents and the huge costs of legal claims, your business may run into crisis if you are not properly guarded by the right insurance plan, i.e. public liability insurance.

This article gives you a little insight into the consequences your business might face, if you do not have public liability insurance coverage.

Financial burden: Depending on the damage or loss caused to the third-party, the amount claimed may vary. But the third parties generally sue the company for heavy amounts as small amounts do not matter for both company and the sufferers. These claims will add up to the company’s existing costs and become a financial burden to the company. Managing the finances between the company’s needs and legal claims is not wise as it halts the business operations.

Legal battles: Apart from the amount to be reimbursed, a company has to face legal battles which occur as a result of lawsuits filed against the business by the third parties. The legal costs and expenses are generally high. You need to deal legal authorities with utmost care. These legal battles are hectic. The time and effort required to fight these legal battles is also high. It diverts you from your core business. But if you have a public liability policy, the insurance company assists you and takes charge in fighting these legal battles till the case is closed, besides paying the legal expenses.

Chances of bankruptcy: Inability to pay the outstanding charges claimed by the third parties may lead the business to go bankrupt. Unless a business has outstanding capital, it cannot afford to pay these legal expenses. Moreover, you are needed to provide additional financial assistance in the form of medical aid as in case of accidents and repairing charges in case of property damage, besides paying the lump sum amount and the legal costs.

Investment at risk: In case your business is facing a third-party legal claim, and if you are in a position where you cannot pay the claimed amount instantly, then, the bank or the court gives permission to seize your various monetary investments or fixed assets such as land, furniture or machinery to cover the legal expenses and the claimed amount.

Lack of mental peace: With the all the above issues, you will surely lose mental peace. These legal claims not only eat away the business’ time and effort but in some cases may ruin the business’ existence. Legal claims should be dealt instantly; any delay will only aggravate the tension and loss.

A good business will always be prepared for the future crisis. Having a public liability insurance policy is a wise decision. It provides timely financial help to pay the claimed amount and the legal costs without putting the business at stake.

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Construction Insurance – Importance and Coverage

Construction involves large number of manpower and huge investments of money. The workers at a construction site risk their lives working at great heights, with dangerous tools, toxic materials, heavy equipment, under tunnels, etc. Hence, construction is associated with high amount of risk for money and lives. A slight negligence or bad fortune on part of the worker or owner may prove too costly. It may lead to a huge financial loss. These unfortunate events require tools, which can bail the company out of the situation. Here arises the need of ‘Construction Insurance’, the risk management tool, customised specifically for the construction industry. Construction insurance is like any other insurance, which is used to protect the various parties associated with construction process.

A comprehensive construction insurance policy covers all the expenses that may occur due to property damage or personal injuries at the construction site. This insurance not only includes the organization owner, but also workers, employees, tenants, sub-contractors, sole proprietors and business partners.

Importance of construction insurance

As discussed above, construction involves usage of heavy equipment, materials, labour, etc. and is more prone to accidents. Since the business stands liable for any accident on the construction site, it is the business owner or the contractor that should pay for the medical treatment charges of the injured or compensation to the families, in case of death of the worker.

Material costs associated with construction are very high. Any damage to the structure or the materials leads to huge financial loss. Insured with the construction insurance, one can seek financial assistance from the insurance company.

The buyers of the flats or the constructed property will have all rights to sue the construction company, in case of faulty construction. In such cases the construction company has to pay for the remodelling or repairing the constructed site. Construction insurance protects the builders from those claims, by providing financial assistance.

Apart from the above circumstances, construction insurance provides wide coverage, providing security to the business in case of unpredicted events.

Four main areas it covers

Construction insurance is very significant in terms of its coverage. It is very comprehensive and is specifically designed to cover every aspect of construction process, to make the business process flexible. Construction insurance covers four major areas of business insurance. They are:

Public liability insurance

Public liability insurance is a general insurance to be possessed by any business which involves interaction with the customers or people in general. Public liability insurance as part of construction insurance helps the businesses in case any damage to third party property or individuals is caused by employees or the tools used in construction.

Employers liability insurance

As the construction industry involves lot of risks, any worker can get injured or die at any point of time, due to the faulty equipment or negligence of supervisors or co-workers. Employers are responsible for the health and safety of their employees at construction site. Moreover, the employees will have every right to sue the owner and claim for compensation. In case of such unexpected events, the employer or the owner can benefit from the construction liability insurance, as the insurance company pays the medical costs or the compensation associated with the claims.

Contractors all risks insurance

Contractors all risks insurance is customised for construction businesses. It provides assistance for contract works of new houses, theft of materials or tools, damage to the materials or tools due to unexpected events, sudden stoppage of on-going works of new houses, owned or hired plants, etc. This insurance acts as a perfect help for the most commonly incurred accidents in the construction process.

Personal accident insurance

This insurance is specifically designed for managers, sole proprietors or business partners. This is useful in the cases, where the person injured can’t blame any other person for the injury caused to him. This is helpful in providing assistance during the period for which the injured person cannot get income.

Construction insurance is very important for construction businesses as the damage or the financial loss occurred is very hard to be recovered. Businesses should realise that the cost of premiums for insurance is less when compared to the compensation costs. Therefore, it can be concluded that, construction insurance is very valuable in making the business sustain for long run.

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Homeowners Guide to Home Insurance Discounts, Reduced Rates and Savings

In today's economy, many homeowners are juggling higher bills on less earnings – facing tight family budgets in the wake of rising costs, credit limits or even job loss. Yet there's no need to struggle with the cost of home insurance. Despite industry increases, homeowners may be able to reduce their insurance rates by as much as 30 percent.

Neverheless, many homeowners are not using insurance discounts to lower rates – even those who apply discounts may qualify for more savings than they're getting. And lowered rates are still possible, even in today's economy.

Consider the findings reported by independent insurance agent association, Trusted Choice, in a 2009 national survey:

"53 million household responders 'admitted they are probably not taking advantage of all homeowners insurance discounts or said that they simply did not know' about policyholder discounts they are reasonably qualify for."

The survey also found that the largest percentage of respondents, about 26%, estimated they save 6-10% on their insurance premiums by using discounts. In fact, many insurance consumers could be saving significantly more-as much as 30%, according to independent insurance agencies, which often shop on behalf of consumers and help them find discounts and compare rates.

Homeowners are usually aware of the more common discounts – such as a multiple policy discount to insure both home and auto under one carrier. But there are other discounts and savings they miss.

How savvy are you as a homeowner and insurance consumer?

Find out using this quick list to explore or measure your potential for insurance discounts. It's also the knowledge you and your insurance agent need to reduce rates for savings:

  • Dual duty – Do not overlook the most common discount available: multiple policy discounts. When the same company insures your home and car, you can probably reduce your overall insurance costs by 10 to 15 percent.
  • New home, new homeowner? The same criteria used to qualify your home for a specific mortgage is often the same that qualifies your policy for discounts.
  • Living in a gated community? Then you may be eligible for discounts. Be sure to ask about auto insurance discounts if your car is evenly 'protected' to boot.
  • Rooftop savings – Some insurance companies offer hail resistant roof discounts for Class 4 roofs – naturally these credits may vary with locale. Moreover, be sure to ask your insurer about potential discounts before putting a new roof on your house – you'll probably want to capture savings if available and a flat roof without roof warranty may disqualify you from your current coverage alike.
  • Be a new policyholder – You may find additional savings extended to new customers based on new rating models that offer a 'sign up' discount. If your insurer extends this discount, your insurance agent may be able to capture it by applying for a new policy with the same company.
  • Your track record counts – make sure you discover discounts for home insurance customers who have a claim-free track record … when was the last time you filed a home insurance claim? A 10-year history typically qualifies you for this discount; If you've never filed a claim, you may save as much as 20 percent.
  • Risk reductions – Ask your agent to identify risk reduction discounts addressing a range of interior and exterior factors: fire and smoke alarms, electrical wiring, fireplace / chimney safety, heating apparatus, burglar alarms, curb and gutter system and landscaping elements. Proximity to a fire hydrant and your community's fire department also applies.
  • Preventive maintenance and home security – Make sure your insurance agent is aware of any alarm systems or preventive measures you take to secure property and to keep your home safe. Although discount criteria varies, you may be able to get savings of 10 to 15 percent for a combined system that may include two or more measures: deadbolt locks, lockable garages and storage buildings, fire alarms, fire sprinklers, fire extinguishers, a burglar Alarm or home security system.
  • Good breeding gone bad – Like it or not, some pets have a reputation. You may adore your family pet but if Fido is a dog breed considered bite-happy or dangerous, your insurance rating may be affected or your coverage in jeopardy. Choose your pet wisely – be aware of the little issues that can turn your insurance into a big issue.
  • Score card – Expect your credit score to impact your home insurances rates. If married, you may be able to reduce your rate by listing the top scorer as the first named on the insurer's application. Plus, if you've had a less-than-score score and recently improved your numbers, let your insurance agent know. You may be able to get a policy adjustment: a lower insurance rate is still possible without the need to write a new policy.
  • Raise the limit – consider the difference a deductible makes. You can probably lower your rate by raising your deductible – $ 2,500 is the standard deductible and you can expect a lower rate if you raise it to $ 5,000.
  • Agent vs. Agent and the extended marketplace – Is your insurance agent an independent who can tap a broad product range? Or an agent affiliated with a name-brand company? Know the difference. Independent agents can shop around – explore options across the marketplace. Brand agents do not usually have the same agility – they're usually limited to the company practice or limited to brand products. Loyalty counts. Still, if you're committed to one company brand you may be just as limited as the insurance agent who is equally missing rate rates, discounts and savings offered by the brand's competition.
  • 'Home pride' and stewardship are vital – Even many insurance agents do not understand the role that stewardship plays in harnessing the broadest range of discounts possible. Why? The better care you take of your home, the more attractive you'll look to insurance carriers. And the best way to harness discounts is to identify as many discounts as possible – it stands to reason that more companies mean more potential for discounts.

So, you'll want to make sure your home qualifies for coverage from every company that offers coverage in your locale since increased competition generally decreases rates and opens your access to discounts.

In a nutshell, homeowners applying the discounts above will soon realize the many ways they can save on their home insurance – even when times are tough.

Get started on discounts for savings ….

  • Shop around to compare insurance company providers and rates – what companies provide home insurance in your community?
  • Get guidance on the details – an independent insurance agent is not tied to one brand, so these agents can help you see the whole marketplace and get the apples-to-apples lens you need to compare products, coverage and rates.
  • Identify discounts – make sure you identify the common discounts most homeowners hit, along with other discounts that frequently miss.
  • Do the 'homework' – the work at home that demonstrates stewardship makes you eligible to select from the broadest insurance product range possible.
  • Optimize selection, and then maximize discounts to benefit from reduced raters and savings.
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The Truth About Personal Injury Protection – & Some Myths

Trying to get insurance cover can be a real minefield to most people. It is almost always an unbelievably expensive item with respect to the family budget. Unfortunately however, it can be horrendously costly in another way if the cover is not appropriate or does not cover the intended items. Let’s look at the main kinds of cover and attempt to throw a little light on the subject.

The best automobile insurance policies will include the following items: uninsured motorist coverage, personal property liability, collision coverage, bodily injury liability, comprehensive coverage and personal injury protection (PIP). Some of these elements are required by all states whilst others are not required. Collision coverage pays for all damages to a automobile or other vehicle when it is in collision with another automobile or other vehicle or non-vehicular object, even if the insurance holder is at fault. Comprehensive insurance policies protect the insurance holder in the unfortunate situation that their automobile or other vehicle is taken without the owner’s permission, damaged illegally, harmed by an act of nature or damaged otherwise. Both of these kinds of insurance are always optional and are usually very costly.

Bodily injury and personal property insurance are required by all U.S. states in in one way or another. Where the states differ greatly is in the minimum guaranteed payout that is set for each. For example, in Alaska, a driver is required to carry coverage that has a guaranteed minimum bodily injury payout of $100,000. In Florida, a driver is only required to carry coverage worth $10,000.

Many elements of an auto insurance policy that could be optional are cover for the uninsured motorist and personal injury protection. The coverage for the uninsured motorist protects the insurance holder in case he or she has an accident with an uninsured person. It provides the insurance policies that should possibly have been supplied by the other party. PIP, in the event of an accident, pays for the medical expenses and other assorted damages incurred by the insurance holder and their passengers (or if the insurance holder is an injured pedestrian). Carrying personal injury protection is mandatory in: Colorado, Delaware, Florida, Hawaii, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Oregon and Utah.

Even if personal injury protection is not mandatory in your state, you may still want to consider purchasing the insurance policies. PIP, in the event of an accident, will pay around 80% (depending on insurance policies limits) of the costs of the insurance holder and passengers. These costs include medical bills, lost wages and other assorted expenses. personal injury protection is a no-fault policy, so it will cover you and your passengers, even if the reason for claim was your fault.

personal injury protection, sometimes known as Medical Payment Insurance or Medpay, is a no-fault insurance policies for a couple of reasons. Firstly, the fact that blame does not have to be confirmed saves time and therefore allows medical payments to get into the pockets of the injured parties as soon as possible.

Secondly, it saves everybody from the cost of lawsuits being filed so that responsibility can be proved for an accident and therefore who has responsibility for the bills. One time a personal injury protection policy might allow for a lawsuit is when serious injury or death occurs.

Before you purchase personal injury protection, you would be advised to take a look at your current policies and see whether or not the insurance policies offered by personal injury protection is duplicated elsewhere. It could be that the cost of lost wages and medical bills may be recovered through an existing health insurance policy. If this is the case, then you may need minimal personal injury protection or none at all. Your driving habits will also help determine whether or not you need personal injury protection. Do you carry passengers on a regular basis? While your health insurance might cover your own medical expenses, it won’t cover those of your passengers (unless they are members of your family who are on your health plan). Ask your regular passengers about their own health insurance policies and its coverage. If they are inadequately covered or not covered at all, you need personal injury protection in order to keep them covered. This may seem like the thin end of the wedge, especially if you’re the one driving an office car pool, however, the safety of any passenger riding in your car is always going to be your responsibility.

If you reside in a state that requires personal injury protection you will need to know the minimum amount of cover you must have because this has already been decided for you. If you live in a state where personal injury protection is not mandatory however, you might decide that you need the extra insurance policies anyway. How much insurance policies you need depends, mainly, on your age. If you are middle-aged or older, have good health and liability insurance policies, then you will need minimal personal injury protection insurance policies. If, on the other hand, you are young, just starting out and still don’t have much in the way of health and liability insurance, you will want to protect yourself, your family and your future by carrying as much insurance as you can afford. This is especially true if you have a young family or if you constantly carry others in your automobile or other vehicle.

So there we have it, whether you require PIP and at what level, depends on several factors: where you live, your driving habits, your employment, your health, your personal circumstances and your level of existing cover. Whatever your circumstances however, you need to research it carefully so that you can rest easy knowing that you are safely covered.

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Last Will And Testament Provision For Burial

A will or testament provides information about the transfer of property, ornaments or land, from the testator to his beneficiaries, after his death. Everyone, regardless of age, needs a will. Without a will people wouldn’t know to whom their assets would go. A will is a general term and is used as the instrument in a trust, while testament applies only to dispositions of personal property.

Besides mentioning, as to who would own the property, after the death of the testator, the last will and testament also provides details about, carrying out the burial of the testator. He appoints an executor, as his personal representative who takes over the responsibility of paying his left over debts, obligations as well as pays for his funeral expenses. However, the executor is not entitled to get any surety bond connected to the last testament.

A testator may mention in his last will, the name of a particular organization that would conduct the rites of his burial or transference. He may also put a clause, which specifies that, his body be sent without autopsy or embalming, to a funeral home designated by the organization. A copy of the last will is given to the funeral home by the organization, as it helps in preparing and facilitating the transportation of the body.

The last will and testament carries details about the testator’s wishes, including whether or not his body be enshrined or entombed at a chosen place after death. Since the rites of burial and transference can be very elaborate, detailed, thorough, and lengthy, the organization may incur an extensive cost to carry out the rites. In such a case, the testator can make pre-arrangements with the organization, by donating money that would assist them in carrying out his last wishes. The appointed executor is responsible to pay for the burial expenses in case the testator has not made such arrangements. The last will and testament provision for burial gives details of performing the final rites as per the wishes of the testator, soon after his death.

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Difference Between Employers’ Liability Insurance (ELI) and Workers Compensation Insurance (WCI)

Employers’ Liability Insurance (ELI) and Workers Compensation Insurance (WCI) are two important insurance covers to protect the interests of employees, as well as employers. There are, however, certain differences between the two. Due to these differences, it may result in wrongful litigation and consequently anxiety to parties involved. The differences between ELI and WCI are relating to where they apply and what they cover. We will discuss about them here briefly.

Where they apply

Employers’ liability insurance

As an employer, it is mandatory for you in UK to purchase employers’ liability insurance. Not purchasing attracts penalty under law. In certain situations your employees may feel that you are liable for job related illness/injury which they may sustain and they sue for this. If it is really a case, it may bring in expenses such as hospitalization, financial compensation and the like. ELI helps you under such circumstances.

While it is mandatory for you as an employer to have ELI, your employees need to prove that the job related injury/illness is because of your negligence. Imagine yours is a lumber business. While working, your employees should have the necessary equipment, training and skills to operate them. If you employ them without teaching the safety norms, imparting the training and checking the fitness, and they sustain injuries, it will amount to your negligence as per rules framed under Employers’ Liability Insurance Act and employees are likely to feel appropriate to sue you, because you are liable.

Workers compensation insurance

On the other hand, workers compensation insurance is a cover for the welfare of the employees. It depends on the circumstances that are the tone of relation between employer and employees. Thus, if you are more concerned about employees’ health and safety, you need to purchase this insurance. It does not matter whether it was your fault or your employees’ fault that resulted illness, accident or death, this insurance comes to your help.

Coverage

Employers’ liability insurance

As an employer, you have to go to court of law if the affected employee sues you. You need to pay financial compensation and bear the hospitalization and medication. ELI covers all these expenses.

Likewise, for employees ELI covers the permanent and temporary disability, injury and wrongful death at workplace. It covers the cost of litigation as well.

Workers compensation insurance

For employers, WCI is a Good Samaritan. In most cases, it ensures that your employees do not resort to litigation. However, in such unfortunate event, WCI covers the expenses because of litigation. It covers the financial expenses to be given to the affected employee for work-related injury, illness or even death.

Employees when inured at workplace, under WCI, are guaranteed to get compensation from the employer to cover medical and hospitalization expenses and certain portion of wages. In most cases, it is two-thirds or more. WCI covers the expenses on litigation, by the employee. In general, WCI takes care of the situation and makes sure that litigation on the part of employees is avoided.

WCI covers compensation (wages) in case of a temporary disability for the period of absence. If the individual got permanent disability, and not fit for employment in current occupation, WCI covers the expenses of vocational training and rehabilitation and cost of searching a job, if he wants.

Despite both ELI and WCI are meant to protect the interests of employees and employers, there are differences in the way they apply. You need to understand them and purchase a cover according to the need of your business.

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Antigua Weather – Best and Worst Months to Go

Antigua has 365 beaches – one for every day of the year – and plenty of good weather to go with each one. But the island has its share of bad weather months, too.

Beside the beaches, Antigua and its companion island of Barbuda are known for good shopping, historical sites and plenty of hotels, resorts and restaurants.

The island has little variation in temperatures throughout the year, but strong peaks and valleys with rain.

Tourists will experience an average high monthly temperature of 85 degrees Fahrenheit, the World Weather Organization says. The average monthly low temperature is 75 degrees.

Antigua weather in June through October reaches average high temperatures of about 87 degrees Fahrenheit. They reach a low of 83 degrees in December, January and February.

Rainfall rates 3.6 inches per month. It reaches a high of 5.5 inches in September, with almost as much rain in October and November. These months have the most storm and hurricane activity of the Caribbean's annual hurricane season, which officially runs from July 1 to November 30. The islands also see higher rainfall in May, although not as much as the fall months.

Antigua weather in February sees rainfall reach a low of 1.5 inches, followed closely by March, January and April, respectively. February through April average about eight rain days per month, while August, October, November and December average 13 days a month.

The best time to visit Antigua is March and April, while the worst time to visit Antigua is September and October, according to the Caribbean Tourism Organization.

A combination of warm temperatures and light rainy make February through April along with June the least risky months for a vacation there. Likewise, Antigua weather in August through November along with May have the highest risk of rain.

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Finding an Apartment for Rent: Not a Daunting Task Anymore

In the hierarchy of human needs housing stands at third position after satisfying the needs of healthy food and suitable clothing, because house is the place where a person relaxes according to his desires without any restrictions. Therefore, when it comes to construction of the personal house a person does not leave any stone unturned in furnishing his house with all necessary contemporary accessories.

But, what about the people who are compelled to live in a rented house, how these people can furnish their homes to enjoy the complete relaxation at their home after having working schedule at their workplace? Because these people have to literally rely on the facilities offered by their landlord and they can not make any type of change in their place and are bound to adjust with the limited facilities.

Interestingly, all these problems in today's scenario have become the folklores and now even you can enjoy the pleasure of relaxing in the rented an apartment in the same way as you can enjoy in your personal house. Today, trend of searching for rented apartment through local newspapers or through references has become an obsolete method of searching an apartment, now days there are various real estate agencies that will help you in tracking the apartments for rent according to your requirements. These agencies have the listed registered apartments available for rent with them and on your request they can help you in getting an apartment on rent dependent upon the budget available with you.

But, now you may question about the authenticity of these real estate agencies, especially about their higher service charges and condition of the apartments that they provide for your residential purpose. If this is so, then you are at an edge of doing mistake, because the charges of these agencies are dependent upon the type of service required by you. This in-fact is my personal experience as almost a year back, I also had to undergo the same situation of finding a suitable accommodation for myself when last year as my the part of my job responsibility I was transferred to Adelaide from home town Brisbane.

Anyhow, before sharing my experience, let me ask you a question that, Do you also feel that locating at a new place is always a daunting and scary task, especially in some new city? This question I am asking you, because last year I had to locate myself in one of the rented apartment due to my job. Although the distance between both these cities is about six hours or so, but as I had never been away from my apartment for a day travel of these six hours was not less than traveling to space.

The next big problem in front of me was finding an apartment for myself, although my company had granted me the housing allowance, but responsibility of finding a suitable apartment for my living was on my shoulder. Fortunately, one of my colleagues who had also faced the same situation suggested me to search for apartment for rent through online sources, because in the current era when all activities move around internet searching apartments for rent in Adelaide was not a difficult task.

An interesting feature which I realized while surfacing the portals of these real estate agencies is that they facilitate you to place the type of property you want to rent in and do not pressurize you to live in the apartment suggested by them. Moving ahead the experts of these agencies will let you visit the place before finalizing the deal with the property owner, moreover the experts of these agencies will help you in getting the formalities associated with renting an apartment pursuant to the rules and regulations promising specific region . One more interesting feature about the portals of these agencies is that they have the pictures of properties available for rent with them from both exterior and interior, so making it easier for you to at-least estimate the condition of the place you are going to live In.

Postscript : As visiting a new place during vacation is an exciting activity, locating at new place has just just to it. Because when you visit any new during vacation you just stay in some renovated hotel and return back to your city after three-four days, but when you locate to some unknown city for a long time you need to get yourself prepared according to its lifestyle. Moreover, as you are new to the city you are also unaware about the road and transport facilities which, along with the tension of finding a suitable apartment for rent enhances the series of problems you have to cope with.

But as a friend in need is a true friend indeed by browsing the different website you can search an appropriate apartment provided to you by some established real estate agency.

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What Are the Factors to Consider When Buying Life Insurance?

As you are shopping around for insurance quotes and insurance companies, these are a few basic factors you need to consider before you make any decision.

1. HOW MUCH LIFE INSURANCE COVER DO YOU NEED?

Here is a quick guide if you are not doing this with a financial planning professional yet. For ease of calculation and explanation, we are not taking time value of money and inflation into consideration.

Financial Obligations

Take into account any financial obligation that needs to be paid off if premature death or unfortunate event such as total & permanent disability or critical illness should occur. Examples could be business or personal loans or debts to be repaid or mortgage loan repayments.

Financial Support

Is there anybody who is dependent on you for financial support? Maybe aged parents, spouse or children? If there is, you may want to plan for the financial support to continue should any unfortunate event happen. For example, you may be planning to provide for your aged parents or a young kid for the next 20 years with an annual sum of $20,000. You would need a sum assured of $400,000 should that sum of money be needed right now.

Financial Gift

Is there a lump sum of money you would like to provide if an unfortunate event should happen? Is there someone you would like to leave a financial gift for when you are not around anymore? Or maybe a charitable cause you would like to contribute to? If there is, be sure to take this into consideration in your calculation of how much insurance cover to buy.

Replacement of Income

This is the tricky one where you will read of many differing opinions. The reason why this question is not so straightforward to answer is that guesswork of your income growth rate is involved.

There are general (very general) rules of thumb for this though.

You need to know how many years you would like your income to be replaced for. For example, if you would like your income replacement to be for 10 years. You will need a $500,000 sum assured if you are earning $50,000 currently. That will enable you to withdraw $50,000 per year for 10 years.

Alternatively, some may suggest for you to have insurance cover of 20 times your annual income. If you have a cover of 20 times your annual income, an investment return of 5% from your insurance proceeds will be able to replace your current income perpetually.

2. HOW LONG DO YOU NEED THE INSURANCE COVER FOR?

Knowing how long you need the protection of insurance for will play a part in knowing what types of life insurance products may be suitable. Do you need the insurance cover for a specific number of years only such as for a specific loan payment period or do you prefer the insurance protection for the whole of your life?

3. WHAT IS YOUR BUDGET FOR INSURANCE PREMIUMS?

Knowing how much sum assured and how long you need the coverage for is one thing but your ability to pay the insurance premiums also need to be considered. For example, if you require a specific sum assured but your budget is limited, you may need to buy a term life insurance policy to get the required insurance cover even if you may prefer an insurance policy that can accumulate cash values.

4. WHAT TYPES OF INSURANCE POLICIES SHOULD YOU BUY?

There are different life insurance products to suit different financial needs and wants. Find one that is suitable for yours. There are mainly four types of life insurance products.

Term Insurance

For protection needs with no accumulation of cash value

Whole-Life Insurance

Mainly for protection needs with accumulation of cash value

Endowment Insurance

Mainly for savings needs with accumulation of cash value

Investment-Linked Insurance

Accumulation of cash value through investments. Whether it is for protection or investment needs depends on the specific policy.

The pointers listed above is catered to the Singapore market. They are meant for general information and discussion. It is not intended to provide any insurance or financial advice and you should always seek advice from a qualified adviser if in doubt.

Benjamin Ang has a Bachelor of Business Administration and holds the designation of Associate Financial Consultant (AFC) and Associate Estate Planning Practitioner (AEPP). He writes about wealth matters to share financial knowledge with the public and also writes regularly on living and experiencing all the wonderful things that life has to offer.

Find out more about him at http://www.benjamin-ang.com/

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New York Life Insurance Company Career – New Personal Financial Representatives Doomed?

New York Life Insurance Company is large and successful. If you think life insurance professionals are easy, think again. If you think personal financial representatives are entry level careers, you are doomed. Want the true facts about life insurance careers and personal financial representatives? Read this article.

I remember that years ago 15% of the women entering life insurance careers were women. Today with some career life insurance companies like New York Life Insurance Company that figure is now approaching close to 50%. Moreover, in a business already flooded with far too many male and female life insurance agents, their recruiting figures are up. This is a marketing scheme. Change the name to possible applicants from life insurance agents to financial representatives and suddenly an image of prestige and easy money appears. However, ask yourself why the insurer's name is New York Life Insurance Company and not New York Financial Company. It is just a name game.

FACTUAL INFORMATION Recruiters of insurance agents or so called personal financial representatives have severely been able to increase their retention rate during the first year and a half of the new recruit's career. 10 years ago, 86% of newcomers left life insurance selling during their first 18 months, now that figure is 85% leaving, 15% remaining. After four full years of gaining experience, only 7% remain, and gender is not a factor.

Why does a highly responsive company like New York Life Insurance Company hire over 3,500 reps in 2008? Their figures show appointing around 3,200 in 2007, and expecting 2009 to produce 3,500 new financial representations to train. To me that adds up to 10,200 inexperienced reps in 3 years. Does anyone logically look at the numbers? This financially solid company founded in 1845 has a total agency force numbering slightly over 11,500. 90% of these are certainly not new financial representatives. The common interpretation of new hires retaining a lasting career is False . My analytical studies of New York Life Insurance Agents indicate slightly elevated retention than others. A similar insurance provider loses at least 70% of their first year agents.

New York Life Insurance Company still has poor retention rates. However, during the past 10 years they have implemented a strategy that few of their competitors have not been as successful at imitating. That strategic method means recruiting agents, "financial representives" with a keen emphasis on a wide diversity of cultural backgrounds. This is a rapidly expanding area underserved by agents possessing the same nationality and ability to speak the language. This strategy involves personal representation into Chinese, Korean, Vietnamese, India, Asian along with Hispanic and African-American and other cultural residents.

Even though New York Life Insurance Company enrolls excessive numbers of agents, to result with the skilled few, this is the same numbers game practiced by competitors. Actually, it is a profitable tradition for the insurance provider, as departing agents sacrifice 100% of premiums collected to the company. To the credit of New York Life Insurance Company is this distinction. For many years, they hold the preliminary recognition of having the most MDRT, million dollar roundtable members. This does not mean making anywhere near a million dollars. However MDRT selling principals and promotions are adjusted annually and consistently enforced to make sure qualifying is left to many of the best of the best.

A new agent is not a financial representative. This is where calling a new agent a financial representative or financial advisor, hurts all the truly experienced and knowledgeable professional personal financial representatives and planners. New York Life Insurance Company mentions on their website regarding new enrollments the opportunity to provide vital insurance protection and financial advice . Be honest here. An agent trainee is barely able to properly perform prospecting and life insurance sales effectively. This explains why industry turnover is so great. Selling life insurance to cover death expenses or pay off a mortgage is a far cry from providing the accurate financial advice of a professional. Likewise obtaining a variable contract license to sell investment products does not mean an agent has the ability to do so properly.

A true financial representative must be very qualified to give advice. This often means meeting semi-wealthy to wealthy prospects and advising them how to lay out their entitlement financial situation. The planning could involve rearranging hundreds of thousands of dollars of assets. Given the economics of the near past, even some of the best financial planners have been given the cold shoulder by clients seeing their wealth accumulation slashed in half. New York Life Insurance Company certainly has some of the best experienced financial representatives in the business. However, most of these pros average 10 years of continued education and specialization while attending various designs as proof of their abilities.

An agent trainee is in the wonder years. Just selling enough insurance to survive the critical beginning years is a challenge few can master. Taking agents living in a $ 45,000 income area environment and getting them in front of million dollar clients is really throwing them in the furnace to be burned. All salespeople have a comfort level of selling starting with prospects close to their own level. After sales skills and product knowledge, this level gradually increases. Few new agents comfortable with clients making $ 50,000 a year can quickly adapt to working in the $ 200,000 + yearly income bracket clientele. Ordinary middle class Americans do not need a financial representative, the service of a hard working life insurance agent will do fine.

Can a new financial representative make it? Although New York Life Company provides quality training, it can not guarantee success. My previous insurance career and 25 years as an insurance advisor analyzing mountains of agent data says NO . However if a rep already has most of the following qualities or characteristics I could have explained to say a 50/50 chance at best. You must enter the business in good financial condition, no loaded up credit cards, and hopefully a decent nest egg. If you have the ability to speak fluently a second language and are going to concentrate on your ethnic group that is a plus.

You must realize the average insurance agent earns around $ 25,000 annually in the early stages, so you have to view this career as a step building process. Very few insurance agents or financial representatives, percentage wise, earn $ 100,000, especially during their initial four years. While product knowledge and most selling skills are learned over time, other career makers must already exist. An extraordinary dose of never-ending determination to break the odds, backed up with phenomenal self-confidence, plus a lack of fear and rejection are required prerequisites. Add to this the ability to take everything you are initially taught as a grain of salt and then revise it to perfection.

Never are you in the business as a company representative, you are in business for yourself. Financial rewards only come to those that separate themselves quickly from the failing masses . IF you still really feel you have what it takes after reading this article , a New York Life Insurance Company Career could become a reality.

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