Income Protection Insurance

Very few of us are wealthy enough to cope without the security of our weekly or monthly pay check so imagine the hardship you or your family would face if if you were suddenly laid off or illness prevented you from working. Without cash in the bank or income protection insurance life could get very difficult very quickly.

Losing your source of income is a challenge to any sane person, and truly frightening too. In the modern age we don’t have the comfort of knowing we can hunt for food, or that our shelter can be found in a cave, instead we live in towns and cities and even if we own our house, we still need to spend money. Money requires income, so protection insurance becomes very important if we want to maintain our lifestyle.

It’s true that most developed nations have some sort of social security system in place, but of course it tends to be less than minimum wage or pretty close to it. We work because we want a better life, with more earning potential, and the sudden drop from a good income to minimum wage is a shock.

A typical income insurance policy is going to cover your after tax earnings as per the contract you have with your insurer, so depending on tax rates in your state you could receive anywhere from 75% to less than 50% of your earnings, however income protection insurance is not intended to be profitable, only to keep your income more or less constant.

Theoretically, income protection insurance is intended to match the value of your normal income after tax, to allow you to continue to pay your expenses including rent or mortgage payments, and feed your family. If you were already living on a tight budget, income protection insurance payouts won’t improve your situation.

Finding an insurer to offer coverage isn’t difficult, actually most banks, credit unions, credit card providers, and other financial services corporations will have a policy you could take out. Often your health insurance company will also have a policy, but all policies are different, some will only cover income protection from accident or illness, others also cover redundancy.Being a member of a union or industry association will allow you to check with your peers and group experts for advice, often they will be able to suggest an income protection insurance company that is respected and known to work well for your industry.

You’ll be asked to show bank statements or wage slips to prove your income at the time you apply for the insurance, and this is used to determine the premium you’ll pay. If your earnings increase substantially, more than a few percent, whilst you have the policy you are advised to notify your income protection insurer, otherwise in the event of a claim they may refuse to pay your full entitlement.

Usually payments made by the insurer will only be made fro twelve to twenty four months after the claim is presented. This does vary from insurer to insurer and from person to person, and may be included in the small print so be warned, with income protection insurance it is a good idea to ask directly what they cover, for how much, and for how long.

More serious illnesses and injuries that prevent the insured ever working again are generally covered by most income protection insurance and could see you receiving payments until you reach retirement age. Understandably insurers don’t like paying out these sorts of claims and will likely insist on regular medical examinations.

Before accepting a policy in a high risk job, one where amputation or permanent injury is possible, make sure the policy specifically doesn’t exclude your job activity. Be sure to specifically check that any job you might be asked to do by your employer is going to be covered.

Income protection insurance is only intended to prevent short term hardship when you can’t work, it isn’t intended to give you money for a new lifestyle, and may not even provide for alterations to your family home to make it easy for you to function.

If your current lifestyle couldn’t cope with major change be aware that you may need to talk to a professional about additional coverage. They should be able to advise on the best income protection insurance for your situation. Assets and earnings are very unlikely to increase in value in the event of not being able to work, so you should also talk to a wealth creation professional about your future goals.

Contents Insurance

We understand at FAQ Insurance that taking out contents insurance is an optional insurance policy, however we believe it’s still necessary. In the greater scheme of things it’s a small price to pay when you consider how much you could loose in the event of a disaster.

Tempting fate is one game we don’t like to play, especially when you could possibly loose the contents of your home to theft, fire or storm damage. Contents insurance cover is needed, otherwise you could be faced with a clean up bill that you might not be able to afford. Worse than that you’ll be living in the home with little or no contents, whilst the repairs are being done.

This kind of scenario can be avoided as contents insurance can be affordable if you don’t opt for the most expensive insurance policy. When you take out inexpensive contents insurance your home is protected and your monthly budget is still on track.

Contents insurance usually covers all of your household items, that aren’t considered  part of the actual structure of the home. Items like electrical goods, the clothing you wear, the furniture, and bits and pieces you own, should all be covered under the one policy. Strangely enough it may include the contents of your fridge/freezer.

Tenants you also need to be aware it’s not your responsibility to insure the landlords furniture under your contents insurance policy. If the landlord chooses not to take out contents insurance the consequences are for them to deal with. Always make sure you have a copy of their building insurance policy in case something happens to the property.To take out cheaper contents insurance you should ask an online insurer or insurance company about indemnity insurance. This kind of insurance policy is cheaper because the items damaged are replaced with ones equal to the same age as the items lost.

Settling for second best or compromising the comfort level in your home might sway you to consider the ‘new for old” policy. This contents insurance policy is more expensive but the items will be new, comfortable, modern and be pleasing on the eye.

Items that we use outside of the home are just as important like the bicycle you ride, the pram you push your children in or the handbag you sling over your shoulder. Lets not forget when you play sport or go for a jog, you usually have sporting equipment with you, maybe your Ipod and mobile phone.

All of these items are covered by your insurance policy in the home, but are they covered when there being used outside the home? You’ll need to discuss this with your insurance provider or online insurer to ascertain if your contents insurance policy cover your active lifestyle or if extra insurance cover is needed.

Protecting your lifestyle is important and for those of us who are passionate about gardening it would be a real relief, knowing that your garden of paradise can be protected by contents insurance. Usually a garden is thought of as another room in the home as we spend a lot of time outside tending to the plants or entertaining. To insure the garden your insurer will need to assess the situation to give you the appropriate cover needed. If water fountains, features or plants exceed a certain replacement cost these items will be dealt with accordingly.

Contents insurance is very similar to building insurance except for the fact that your personal belongings are covered instead of the structure of the building. Contents insurance provides protection in the event your home has been burgled or vandalized, catches on fire, there’s an explosion or your home is subjected to flooding.

To increase the protection in your home your insurance company can offer you legal liability insurance in the event that someone gets hurt. We all know accidents can happen through our own negligence or through no fault of our own.

By making plans to contact an online insurer or insurance company they can advise you on the best contents insurance policy that will cover your contents, lifestyle needs and possible injury in the home at a competitive price.

50cc Bike Insurance

Have you ever thought of an alternative way of getting around the city? Small motorbikes are a great way to avoid traffic and make an otherwise long trip bearable. No matter if you’re driving to your office or just going for a ride, a 50cc bike is a fun and safe way to get around if you also take out 50cc bike insurance in case of an accident.

It’s very easy to find a the right insurance for your 50cc motorbike. Unlike searching for other insurances, shopping for insurance for a small bike shouldn’t cause you too much distress as there aren’t so many offers to choose from.

Scooters and mopeds are a great way of avoiding traffic and are much cheaper to purchase. Prices for mopeds start from $1500 and are far more economic to maintain than a car. The size of the vehicle engine of a 50cc bike is obviously quite small and therefore the cost of insuring it will be very reasonable.

Mopeds are usually restricted to 50cc these days, which means they don’t operate at high speeds. Although they’re slower than a car, they still have the advantage that the cost for insurance is far more affordable.

Your moped may not be a rocket, but at a low running speed this makes your ride safer, the insurance and fuel costs are lower and you still get from A to B on otherwise congested roads.

A small car has a relatively high running cost, and it would also be difficult to find a decent second hand one to purchase in the first place. Although you might strike it lucky in finding one, the insurance cover will make you think the whole exercise is rather costly.With a scooter you can avoid these problems from the start. You will of course need 50cc bike insurance for your bike in order to use it on the road, but as insurance offers are straight forward you shouldn’t encounter no problems making the appropriate choice.

The rider’s age plays an important role in insuring your bike, as well as where you keep it. Bikes are a target for thieves, therefore it is crucial for the insurance company to know where you’ll keep it, for example if it will be parked in the street or be stored in a garage.

Parking your bike in a protected area will make a big difference to the cost of your insurance as well as the kind of protective equipment you wear when ride your 50cc bike. Helmets and protective clothing will also protect you in case of a crash as well as save you money on your monthly payments.

When searching the web for 50cc bike insurance you can add all these factors onto your online inquiry, and see for yourself what kind of bike and riding equipment will help you obtain inexpensive insurance.

Getting insurance for your scooter or moped is easy and can be conveniently purchased from your living room. It is a simple task because there aren’t many things to consider or policies that are competitive unlike insurance for your car or your home.

There are literally no downsides to purchasing a 50cc bike and the biggest advantage is you can absolutely afford 50cc bike insurance. Even if you don’t have the money to buy a car as a means of transport it doesn’t mean that you can’t have access to motorized travel.

Whilst regular motorbikes have a bigger engine size and require an extra license, a moped or scooter can be used on your normal driver’s license.

You can only come out on top by choosing a 50cc bike with 50cc bike insurance so you can overcome distances, save money and travel in ease through a congested city.

Building Insurance

When the structure of your property has been damaged or your home has been lost to fire or natural disaster, isn’t it safe to say that having building insurance would make life a whole lot easier, especially when it comes time to repair or rebuild the property.

The costs to repair the damage or to reconstruct your property doesn’t need to be a financial burden, if you’ve taken out building insurance. Building insurance cover does differ so it’s important to know if you want to take out current market value insurance or fixed value insurance.

Unfortunately market value can rise or fall depending on the salable value of your property, and because of it’s unfixed nature your building insurance might fall short and this won’t cover the costs to rebuild your property.

By talking to a mortgage lender or insurance company they can discuss with benefits and risks involved depending on the type of  building insurance cover you take out. Taking out 100% insurance cover gives you the peace of mind that no matter if the damage is minor or major it will cover the full replacement costs.

This is why mortgage lenders insist on you having building insurance, because they want their loan to be secure and your asset to be protected. When a property is under threat by unforeseen circumstances your building insurance policy should cover loss and damages caused by natural disasters,  vehicle collision, theft, fire, smoke and more depending on your cover. In the event your home is severely damaged and you’re unable live there your insurance policy should cover you for alternative housing arrangements until the repairs are carried through.

When choosing building insurance try not to opt for the cheapest building insurance quote unless it meets all your needs. A good rule to follow is if it’s not in the quote then it won’t be covered in your building insurance policy.

If you don’t have time to look for competitive building insurance you can always try using an online price competitive tool to obtain a value for money quote. When reading through your quote make sure your insurance policy covers permanent fixtures, fittings, outbuildings, boundary fences, paving, swimming pool and the structure of the building.

Permanent fixtures and fittings that can be removed and reused in another home like cabinets and bathroom fixtures will added to your insurance cover. Outbuildings such as a garden shed, greenhouse, garage or carport are usually covered in a standard building insurance contract. Sometimes you might need to pay a little extra to protect your outdoor surroundings like the boundary walls, pathways, driveways and outdoor entertaining area from damage. All this information will be disclosed to you before you sign the building insurance policy.

In the event that you’re a tenant the landlord should provide you with their building insurance policy,  to take out contents insurance to protect your household contents and extras that might not be covered under their policy.

If you’re an existing homeowner or landlord it’s not a bad idea to review your building insurance cover in a years time to add to your insurance cover or switch to another insurance company due to lack of service or higher premiums. At the end of the day you need to feel satisfied that your building insurance policy is protecting your property from being damaged or destroyed.

Throughout Africa millions of cattle farmers are trying to seek out a living  in drought conditions but their stock faces inadequate feeding and watering, lack of vaccinations, and the wrath of the terrain which is dry and hot. Cattle mortality is high, and without farm insurance every setback  can be disastrous to the herder who will need to replace the animal from their savings.

Poverty in Africa can be eradicated if the people of Africa have access to many of the services western people take for granted such as a vibrant healthy insurance industry. Offering farm insurance to traditional tribes people would within a very short period of time help them recoup their losses and plan for a better future.

This is one of the goals of a new insurance group created by Kenya’s Equity bank, Swiss Re, the International Livestock Research Institute, and UAP, a Kenyan insurance company operation out of Nairobi. Farmers and herders in remote regions of the country will be offered farm insurance for the equivalent of one third the cost of replacing a cow for as many as 10 beasts.

However this insurance will be very different from that offered in the western nations. Normally a farmer, or any policy holder for that matter, would be required to keep inventory of their stock, and if an animal is lost they’d need to determine the worth of filing a claim against the excess or deductible charged by the insurance company.After the claim is filed an assessor or adjuster would need to visit the farm and verify the loss, as well as determine how the loss occurred. These are seen as vital fraud prevention steps, but in Africa sending an assessor to verify a loss could be a very expensive undertaking. Many parts of Kenya are so remote from the main cities that many days travel might be required.

Consequently most rural farmers are unable to obtain farm insurance, and even if they had insurance would find it difficult to have their claims assessed. The new proposal takes assessing losses right out of the entire process and relies on statistical records to create a new animal mortality index for drought areas in Africa, and uses satellite imagery to determine the level of risk or payouts.

A series of satellite images of the terrain surrounding the policy holders is taken, and updated regularly to observe changes in the amount of green grassland, and once patches of brown are detected signifying water shortages, an insurance payout is automatically assessed.

Previous history of the area suggests that when patches of brown appear, water shortfalls are experienced and livestock begins to struggle or perish. Under this new trial, farmers would pay nominal premiums of between 2.5% and 5.5% of the value of the herd per annum, but would expect full replacement cover if animals perish.

A typical farmer with ten animals in his herd would expect to pay around $50 per year, but in drought conditions where as much as 60% of his herd could perish, this type of farm insurance will be invaluable and protect his family from starvation, whilst at the same time giving future certainty. The Kenyan government hopes this will alleviate poverty and give families opportunities previously denied to them.

Term Life Insurance

We’re all familiar with insuring our belongings, whether its a house, a car, our personal effects, and of course most people in the western world will also have some type of policy to cover retirement, a government subsidized pension, or investments, but a significantly smaller number of people have term life insurance, or to more correctly describe it, as death insurance.

Of course we know that when we are dead we aren’t going to be terribly worried about making a claim on our insurance, the ancient Egyptians aside, most sane people recognize life insurance is intended to protect our estate and dependents from hardship after we are no longer alive to support them.

Term life insurance is one of several options we have available to us, and tends to be the most affordable as well. It can be compared with permanent life insurance, and other forms of life insurance such as variable, universal, or whole life insurance policies.

I mentioned that life insurance could more correctly be called death insurance, and in the case of term life insurance this is most definitely correct. A policy is taken out for a fixed number of years, and for an agreed value, and if the premium is paid every year then the policy remains in force with the original terms.

Essentially, term life insurance is very simple; an individual takes out a policy and agrees to pay a fixed amount per year, for a fixed number of years, and if they should die before the policy expires, their estate will receive the insured amount. If the policy expires before their death then the policy will need to renegotiated or a new policy found.The estate of the insured is then responsible to ensuring all bills, and taxes are paid, and for providing for the care of dependents with the funds released by the insurance company. Some term life insurance policies will make regular payments to dependents instead of lump sum payments to the estate of the insured.

One of the most popular term life insurance policies available is “until retirement” age, that is to say the working life of the insured, though typically most people with career opportunities prefer shorter terms as their income level increases. Purchasing term life insurance straight out of college is rarely going to be a good investment given that recent graduates don’t usually earn good incomes.

On the other hand, a person working in a trade, factory, retail outlet etc may not have any expectation of advancing, and it is for these people that long term life insurance policies are created. So before committing to term life insurance give serious thought to your future, and what you’ll realistically be able to afford in the future.

Affordability is often the most common reason for selecting a term life insurance policy over other types of life insurance. The calculations needed to be done by insurance companies to work out your premium are much simpler than because in most cases they only need to look the relevant mortality tables for your gender, age, and major lifestyle risk factors to create a policy that is suited to your needs.

Most term life insurance policies don’t require medical examinations unless a risk factor stands out as being a problem, so very few people are denied term life insurance coverage.

The mortality tables used vary from company to company, some use government statistics more frequently than their own in-house tables, unfortunately you’ll never know exactly how your chosen insurance company determines the premium they charge you, so checking with a broker instead of your local agent might work in your favor.

A final point about term life insurance, most policy holders outlive the policy, so statistically speaking you’d be wanting to avoid paying more in premiums and save on your insurance. In reality, nobody knows when death will occur, and if it’s important to protect your loved ones then don’t skimp on cover if you can afford it.

Inexpensive Auto Insurance

For most of us getting a inexpensive auto insurance is as important as the air we breathe, nobody likes paying for insurance, but the law and our conscience dictates we need it. Searching for auto insurance is about as much fun as having a tooth extracted, but knowing what auto insurance is, how it affects you, the minimum cover you need, and how to negotiate better rates make the process a lot easier.

We all dread high monthly rates especially if the rates seem disproportionately high for the value of the automobile, but they still need to be paid, otherwise we literally have to do without driving anywhere, an inconvenience many of us simply can’t do.

The cost of owning an automobile, even a cheap car, can be expensive what with finance repayments, ongoing maintenance, and monthly or annual insurance premiums. The basic cover needed may not be obvious, insurance agents aren’t always going to tell you about the cheapest cover you can buy, so looking for inexpensive auto insurance is best done online, where the cost of marketing to you is low, and you may be able to find an insurer that you’d never normally see in your yellow pages.

Minimum insurance cover varies from state to state so be sure to be very thorough with your research, and always use your correct zipcode to get accurate rate comparisons. Different states and countries may apply different laws to insurance companies, they may have to pay into special consumer protection funds, or their tax rates may vary, either way, don’t always rely on a discounted price you see listed until you’ve confirmed you’re eligible for the listed rate.Determining the basic cover you need, and the minimum requirements placed by government or the insurance company you’re talking to should be your absolute first step. Not understanding your rights is tantamount to giving away your hard earned money for something that might not suit your needs, or may be overpriced for the model of auto you’re insuring. Inexpensive auto insurance is a right, not a luxury, we should all be trying to get the best deal we can.

Don’t be concerned about insurance companies wanting to know everything about your vehicle and your driving record, where the vehicle is garaged, average length of trip etc, all of this information helps them price your insurance accordingly, whereas incomplete details mean they will often give you the default cover, and this is often more expensive than you might need.

Changing from one insurance company to another is often the best way to ensure better bargains. Quite simply, when you approach an agent or broker for insurance, they may get a higher commission for introducing a new client to the insurance company then they get for renewing a policy. Of course agents who work with particular companies may loath to see you leave, and they will try to convince you you’ll lose all of your accumulated benefits.

Law, and practical experience of obtaining insurance through multiple companies goes against the accumulated benefits theory. Most new policies will attract the same benefits as your previous insurer, and in many cases you’ll be offered even lower deductibles, or better options because the insurer wants your business. Just ask, and make sure you get everything in writing before you agree to sign your inexpensive auto insurance contract with your new agent or broker.

Office Contents Insurance

As a small business owner you probably dread the day you get a phone call telling you the office has been broken into, or some kind of natural calamity has struck the building you work in. Yet, many business people still don’t have office contents insurance.

Any small business that can’t afford to replace their office contents such as desks, computer gear, money etc for whatever reason should consider office contents insurance to be a necessary business expense. After all insurance could make the difference between continuing in business or needing to close down.

Numerous case studies have been done by insurance companies and small business advisory services on owners who have suffered catastrophic losses through fire, theft, or other natural disasters. A typical small business will have a fair percentage of the business assets tied up in office contents, whereas for larger corporations the exposure decreases substantially.

In the average small business computers, office furniture, data, and cash on hand simply cannot be replaced from the owners savings, usually the owner takes on a bank loan or invests a substantial part of their savings to start the business, so not taking out an office contents insurance policy is tantamount to business suicide.

Office contents insurance is generally considered affordable, and avoids the difficult need to rebuild the business assets, as well as meaning the business owner avoids needing to downsize whilst assets are repurchased. Too many business owners retrench part time staff after fire or theft of assets.From one man operators to mid sized corporations with dozens of staff, all small businesses own or lease a building, but not all buildings are completely secure and it’s a fallacy to assume locks or sprinklers will protect the contents. It is absolutely essential to provide some other form of protection, and in almost all cases office contents insurance is the most affordable option.

Business continuity depends on it, recovering from loss of office contents is the easiest thing in the world if a check is drawn up and the items are replaced. Office furniture, computers, and personal effects are rarely unique and can be replaced easily, the problem is that if the business doesn’t have or if the office contents insurance isn’t adequate then even replacement isn’t an option.

Data and office documents are less easy to recover from and off site backups of accounting information and critical documents should be considered, though it is still possible to obtain insurance for data and documents.

A common mistake many business owners make is assuming that the building insurance policy covers their contents as well. In fact it would be very rare for a commercial building owner to include contents insurance for their tenants, and even many home content policies may not include office contents since the risks are often different. Consulting a broker or your preferred insurance company to determine exactly what is covered is the responsible thing to do.

Of course most small business owners might think that if their office wasn’t available, or if their office assets were lost or destroyed, that they could simply relocate the office to their home and continue in business, but the situation isn’t desirable. Furthermore there may be rent or utility obligations that need to be paid even if the office isn’t available. These costs can be crippling to a small business facing a continuity challenge, but office contents insurance would likely remove most of the uncertainty.

Every business owner needs to be aware that landlords, and people who are owed money are unlikely to be forgiving or sympathetic to the business owner who failed to ensure adequate insurance cover. In a worst case scenario, lack of office contents insurance and the consequent loss of business continuity would result in swift litigation to secure whatever personal assets the business owner had before other creditors get wind of a problem.

Continuing in business is probably the most important reason for office contents insurance, and is a fundamentally different reason for having insurance than say home contents insurance. In business it is more important to resume business as soon as possible, whereas at home we are more concerned with replacing personal items. Secondly in business it is common for contents to be leased allowing for an upgrade path over time.

Business owners should be looking for office contents insurance that includes coverage for furniture, computer equipment, copiers, communication equipment, documents, and other office items such as pictures, plants, water coolers etc. Coverage should include theft, and damage from fire, water, natural hazards, and human error such as cars crashing through the office window.

It is a good idea to ensure that employee and visitor personal effects are covered under the business office contents insurance policy, and if assets regularly leave the building such as cellphones, laptops, and other equipment, then coverage in other locations should be explicitly mentioned.

House & Contents Insurance

We like to think of our home as a sanctuary, a place where we can feel safe and comfortable with our families. A home is often the most valued asset we have that contains our worldly possessions, that go into making a house a home. Not having house & contents insurance directly impacts our quality of life and peace of mind.

Protecting your home with house & contents insurance will insure you can breathe easier knowing that you’re protected against the unthinkable. When looking for house insurance and or household insurance, policies can vary in price considerably, so it’s important to get several home insurance quotes and compare them to get the best price available.

If you don’t have time to go from one insurer to the next  you could always use an insurance price comparison tool. This tool is a convenient way to compare insurance quotes from a group of insurers to give you a competitive price for home insurance. Before using a tool like this it’s really important to know what you’re looking for so you’re covered by the right home insurance policy.

If you’ve never been insured for house & contents insurance before, our site is informative and will help to explain what you need to consider before taking out a home insurance policy.Why is house & contents insurance needed?

When we think about homes being damaged by natural occurrences or criminal acts we never think it could happen to us. Unfortunately this is a horrible misconception because at some point your house & contents will be under threat.

Not taking out a house & contents insurance policy could leave you open to serious financial loss. This is one risk I am certain you can’t afford to take. Even mortgage lenders aren’t prepared to experience financial loss and require you to take out building insurance for them to approve the mortgage.

By taking out house and or contents insurance you benefit as a homeowner, tenant or landlord. Depending on the type of policy you take out, it can protect your home against theft, fire, flood and storm damage.

To insure your house the Insurer will require detailed information about your home including the age of the property, building materials used and the slope of the land for flood-risk. This and other detailed information will determine if your home insurance application is approved or denied. In some cases they might not insure your home if it’s made from unusual building materials.

Every consumer insurance company have their own unique insurance packages so it’s important to do your homework first, instead of taking out extra insurance that you might not need.

Really there is no need to go through life without house & contents insurance as there is an insurance policy for everyone. Whether you’re an existing homeowner or landlord or currently in the market to buy, you can always  search for an insurance package that meet your needs.