5 Insurance Policies Must Avoid
Concern of the future persuades us to buy insurance policy. In an attempt to safeguard our future we opt for insurance policies but many of insurance policies available in the market are none of our use. But we buy them as we can't foretell our future. We try to cover our bad time financial needs. Insurance companies well know this common public fear and provide a range of insurance policies planned to shield us from a horde of disasters that sort from disease to disability and rest in between.
Homeowners Insurance
Homeowners insurance (HOI) as the name implies, is property insurance coverage that not only protects you from the damage or loss of your property, but also provides liability protection for you, your family and guests, should an accident occur. If you own a home, you need home insurance. Not only does home insurance protect what's most likely your largest asset, but it's required by lenders when financing a home, making it one of the most necessary and abundant forms of insurance available today.
Personal Liability Insurance
Frivolous lawsuits and outlandish settlements got the public's blood boiling again recently when a judge – yes, a judge – sued small, family-owned dry cleaners for $65 million for losing a pair of his pants. Small businesses, this goes to show, are just as vulnerable to unfounded claims as their deep-pocket peers. A study by NERA Economic Consulting determined that small businesses pay for 69 percent of civil lawsuit liability costs, although they generate only 19 percent of business revenues.
Income with Disability Coverage
You've insured your home and personal property, your vehicles and your life, but are you overlooking your most substantial asset – your ability to earn income?
Steve Strauss, author of The Small Business Bible, uses this example: If you are 40 years old and net $50,000 annually from your business, over the 25 years until retirement, you will earn $1.25 million – and that' s assuming your income does not grow. That's an asset worth protecting.
Life Settlement Pros and Cons
A life settlement is the sale of an insurance policy, usually life insurance, to a third-party. In a life settlement transaction, insurance policies are usually sold for more than the cash value but less than the death benefit. A life settlement may be a good decision for some policyholders who no longer want or need the policy. But, for others, there are some drawbacks. First, let's look at the benefits.
Small Business Insurance
Buying business insurance is among the best ways to prepare for the unexpected. Without proper protection, misfortunes such as the death of a partner or key employee, embezzlement, a lawsuit, or a natural disaster could spell the end of a thriving operation.
Ranging from indispensable worker's compensation insurance to the relatively obscure executive kidnapping coverage.