When you first buy a home, you may become overwhelmed by all of the extra costs you never thought about having. One of those costs may be home insurance coverage. Young homebuyers may not see the need for such costly insurance, but anyone who has used their home insurance knows exactly how important it is. Many mortgage companies require specific coverage plans. Even if you choose to buy your home, without financing it, you will need home insurance coverage. Take a look at this information to learn more about home insurance plans.
When You Need It
You may think home insurance is only good in natural disasters. When a tornado, hurricane, or earthquake damages your home, your plan should cover the damage. However, there are many times you can use your home insurance coverage regardless if there is a natural disaster or not. Consider this scenario: Your hot water heater bursts and no one is home. There is so much water on your floor that your expensive hard wood flooring is completely ruined.
With home owner insurance, you would simply be responsible for your deductible. The coverage would pay for the flooring to be replaced and often will even pay for a new hot water heater. Of course, these terms all depend on the type of plan you have, but for the most part, home insurance is beneficially for large as well as small disasters.
How To Pay For It
Choosing how you pay for your home insurance coverage can be important. Some owners would rather add their insurance right into their mortgage payment. Many banks prefer you to do it this way and are happy to accommodate. Other insurance companies will allow you to pay the premium monthly, every six months, or yearly. Select companies will even offer additional discounts for those who make one yearly payment. Consider these things when setting up your home insurance. You may get a great deal when you choose the right payment arrangement.
Life Insurance – a Small Price to Pay for Peace of Mind
We all reach the stage in life when we wonder whether we need life insurance or not. This isn’t a great decision for any of us – nobody likes to be reminded of their own mortality, after all! But, it’s a decision that comes to us all at some time or other – especially if we have a family to consider.
To be honest it’s worth while looking at taking out life insurance at virtually any stage of your life – especially as we reach adulthood and start to amass mortgages and other financial commitments. The fact is that it doesn’t really matter if we have a family to care for or not – if we have any kind of current financial commitments then we need to think about what would happen to them if we were to die out of the blue. And, you have to remember that it doesn’t matter how healthy you think you are – you could die in a car accident or get run over by a bus tomorrow!
The thing you have to consider here is what would happen to your financial commitments if you were to die unexpectedly. A lot of people don’t realise that the money they owe on stuff like loans and mortgages doesn’t necessarily pay for itself after their death – somebody will have to take responsibility for its repayment. And, in the simplest of terms you have to think about who would pay for your funeral at the end of the day.
Life insurance may be worth thinking about at this stage – it is essential, however, if you have a family to add to the equation. If you have a partner and/or kids then think about how they would cope financially if you did die and your salary died with you. This isn’t just about managing stuff like the mortgage – it’s also all about working out how they would pay for life’s necessities never mind life’s luxuries. If you protect them with a life insurance policy then they could at least cope financially during what would be a very difficult time for them.
The key thing to remember with life insurance is that it doesn’t have to cost the earth.Life insurance policies nowadays can be taken out at minimal cost – you really could be paying just a couple of pounds a week to get the right levels of protection. To make things easier most industry experts recommend that you shop around for the best quote as the sector is extremely competitive at the moment. This is easily done – there are loads of web sites out there that can help you sift through competitive quotes so you can find the cheapest policies in just a matter of minutes, for example. This is a great way of getting the life insurance cover you need without spending too much time or money in the process.
Buying life and health insurance products is something that many of us keep putting off for as long as we possibly can. We know that we should buy into these insurance policies but we tend to shelf the idea, preferring to live for today rather than plan for tomorrow. Rather like an ostrich sticking its head in the sand, a lot of us it seems choose to take our chances in the hope that our circumstances will never merit the use of life or health insurance. But it can be an awfully big gamble to take.
Advantages of a life and health insurance policy
As we get older we often become more susceptible to health problems, disability and poor mobility; eventually of course we will all die. Both situations are naturally very distressing for family and dependants. However, the situation can be made worse if the ill / deceased was the main income producer and there are still bills to pay. The last thing anybody wants in this situation is to have the bailiffs knocking at the door, or your home repossessed because you cannot keep up your mortgage repayments.
A life and health insurance policy combines cover for the likely and the inevitable. By opting to take out a life and health insurance policy you and your family will have peace of mind that should you become critically ill or die during the term of the policy, your family and dependants will be financially secure. There will be no worries about bailiffs or repossession orders and through the health insurance side of the policy you'll be able to select a level of quality health care to suit your needs rather than relying on treatment through the NHS.
Cover provided by a life and health insurance policy
The cover provided by a life and health insurance policy is quite comprehensive. On the life insurance side of the policy you will be able to choose between a term life insurance product and a reducing or decreasing life insurance product.
Term life insurance via the policy pays out a fixed lump sum upon the death of the policyholder, providing the insurance policy is still active. A reducing term life insurance policy is a type of insurance where the amount paid out upon death reduces to zero in line with the policyholder's mortgage balance, and is suitable only as a financial instrument with which to pay off the mortgage in the event of an early death. If you want to leave your loved ones in complete financial security then a term life option on the policy is recommended.
The health insurance part of the mega insurance policy provides comprehensive health care. It will cover you for all diagnosis, treatment and recovery costs associated with the illnesses, disability and diseases noted on the mega policy. Health insurance also means that you do not have to wait for treatment on the NHS. Instead, you will be able to select when and where you want to receive treatment, so tailoring it to your own convenience.