Common Mistakes to Avoid when Buying Business Life Insurance

Life insurance offers a diverse range of benefits, whether you apply when young or aged. Your dependents can use it to clear your debts or mortgage when you’re gone, provide for their daily needs, or even finance other investments to guarantee a better future.

All the above are possible if you apply the policy correctly without making the mistakes we share below. After all, familiarizing yourself with life insurance facts is an essential step in making a decision that you won’t regret along the way.

Here are the common mistakes that policyholders ought to avoid when buying business life insurance.

Choosing the wrong life insurance policy

While it’s crucial to choose a life insurance policy that aligns in pricing with the marketplace, the cost shouldn’t be the only factor to consider. It helps to understand the exact benefits that the plan offers to your personal needs before all else.

For example, this life insurance cover sourced by Caspian is an excellent choice when you’re employed. With it, your employer pays for the protection whilst getting tax relief from the government for being a business expense.

Before spending money on any life plan, find out about the terms and possible restrictions that come with it. While at it also, consider the benefits if the risk occurs vis-à-vis the total amount of premiums that you’ll pay during the entire coverage period.

Waiting too long to purchase

The interesting fact about life insurance policies is that they cost more as you grow older. This stems from the fact that older people are at a higher risk of life-threatening health conditions than younger people. For this, insurance providers tend to charge costlier premiums as you approach old age.

Besides, sometimes you might struggle to find suitable coverage if you wait too long to purchase the life insurance policy. And if you’re lucky to get it, the benefits might not be as lucrative as those available to people who apply when younger.

Forfeiting premium payments

Not all life insurance policies are leniently flexible when it comes to monthly payments. For example, the terms of a universal life policy are strict to late payments. Therefore, if you choose it, ensure you’re up to date with your premium payments. Doing this will guarantee full payout when the covered risk occurs.

Even with the above strictness to forfeiture, insurers offer a grace period before cancellation of a policy. For example, it’s not uncommon for the UK insurance firms to wait up to 90 days whilst reminding you to update your premium payments. An ideal approach when unable to raise premiums is to communicate with your provider to find you practical ways to clear the outstanding balance.

Relying on Group Insurance Policy

Registered companies in the UK often take group insurance policies to cover their employees against life risks. Normally, you benefit from it only if you pass on while still working for the entity. In that case, if you lose your job or get into a situation that puts you out of the workforce, you will lose that coverage.

Moreover, group life policies might not guarantee sufficient coverage for all your personal needs. Although the payout will cover the costs associated with your funeral, it might not be enough for mortgage, children fees, and other costly expenses. If possible, choose a personal term life insurance policy that’s flexible to changes in your status quo, for example, switching workplaces.

Incorrect listing of beneficiaries and policyholder

The life insurance application requires you to be very keen especially on the crucial details you provide. For instance, your insurer will offer the option to place the policy into a Trust to allow you to nominate the beneficiaries. In this case, you’ll want to make sure that you have the rightful people as your trustees who will control the proceeds from the insurance cover.

When choosing a policy, ask yourself these basic questions:

Who will be the primary and contingent beneficiaries?

For example, listing your children as primary beneficiaries has the least problems compared to your spouse. Unfortunate marriage risks such as divorce can present considerable obstacles to your policy.

How many people will depend on the policy, and what are their ages?

Remember minors quickly outgrow the dependent age than the elderly people, such as your parents.

How much does each beneficiary receive as payout?

Finding answers to this question helps you determine a reasonable premium to pay for your chosen policy. For example, underspending on premium payments when you can pay for a better cover can deny your loved one sufficient proceeds.

Which of these mistakes sounds relatable? We’d like to hear your thoughts below.

Life-insurance: 4 Questions You Ahould Not be Afraid to Ask

Buying life insurance can be for many one huge decision, therefore asking the right questions at the right time is essential. In the old say, if you wanted to ask a major question that implies your financial situation, you probably had to leave your home, go to the library, or seek a trusted advisor. Fortunately, those days are long gone as today, most of us have the luxury to delve into a 1500-word article on our smartphones and find our most asked questions and their answers.

As you shop for life insurance, you’ll likely have a lot of questions not only about what you are buying but also on what can happen after your purchase.

Life insurance doesn’t have to be confusing, especially when the financial future of those you love are in play. Let’s delve together through some most asked questions so you can get a better approach on this topic:

1. How much life insurance do I need?

In order to sort out how much insurance you need, you will have to take a look at your current situation and ongoing expenses, future expenses, and even your funeral. But adding up all those numbers can typically amount to a bigger policy than you actually need. Moreover, you should subtract assets that could add up toward those expenses such as investments and savings.

2. Are multiple life policies possible?

Indeed, you can benefit from multiple policies from the same or even numerous insurance companies. For instance, you could purchase a permanent life insurance policy like a whole life type insurance and also a term life policy for a shorter need. These may include paying a mortgage or savings for your kids’ college if you were to die. When you apply for more insurance coverage than your current situation requires, top life insurance companies will likely ask you why.

3. Why buy life insurance when I’m young?

One of the many advantages of buying life insurance as a young person is that you’ll be able to lock in a steady rate for the extent of the policy. For instance, if you have dependents in the future, you have secured a low rate and ensured your own “insurability,” which means you don’t even have to worry about higher rates as you age and potentially experience deteriorating health.

Bear in mind that the older and less healthy you are when you purchase a life insurance policy, the higher the price.

4. What if I don’t die?

It goes without saying that before purchasing any kind of life insurance, you should think about what and why you are buying it. Do you need financial protection for your family in case of early death? Are you facing any additional debt which requires you to provide coverage?

In case you want a policy to cover your financial obligation, you may want to consider permanent life insurance. If you are currently experiencing a cash crunch and have an urgent responsibility towards your family, a business partner, or your lender, term insurance policy can offer you a short-term solution.


A Comprehensive Guide to Homeowners Insurance Coverage

To file or not to file?

When you don’t know how your homeowners insurance coverage works, it can cost you big time financially. Every year about 20% of all home insurance claims related to water damage. Yet, that doesn’t mean these claims payout.

Instead, homeowners often find out that because the water damage was a result of negligence, they have to pay themselves. On top of having to cover the damages, the homeowner might have to deal with a rise in their insurance rates.

Even when a water damage claim doesn’t payout, it’ll still exist on your claims history. A bad claims history can make your insurance rates can skyrocket and your provider may choose to non-renew your coverages.

Knowing what your policy covers, and when to file a claim, is the best way to protect your financial future. Read on to learn everything you need to know about home insurance coverage.

Understanding Homeowners Insurance Coverage

Your homeowner’s insurance coverage will protect your house, belongings, and finances. Each specific policy will have its list of coverages and coverage limits. These coverages are what will pay to repair or replace things in your home, as well as your belongings.

It’s important that you fully understand when your homeowner coverages will apply, and when they aren’t eligible. Your policy binder will have a list of Perils, that has to happen for your insurance policy to activate.

A peril is a type of event, like a fire or robbery, that can cause damage to your house or belongings. Here’s a list of Perils that home insurance policy’s usually cover:

  • Fire
  • Smoke
  • Lighting
  • Windstorms
  • Hail
  • Explosion
  • Vandalism
  • Malicious mischief
  • Damage from a car
  • Damage from an aircraft
  • Falling objects
  • Water damage
  • Ice, snow, sleet damage
  • Theft

Typically earthquakes and floods will require you to have a separate policy. Sometimes homeowners become confused when it comes to determining whether something qualifies as water damage or flood damage.

Luckily you can use a claim service, to help walk you through the insurance claims process. To make sure your house is fully protected, it’s always a good idea to have both a flood and home insurance policy active at all times. The only exception would be if you’re not in a flood-prone area.

Also, if you live in a state that’s prone to hurricanes, make sure you have a reasonable hurricane deductible. While hurricane damages are typically covered on home insurance policies, they often come with high deductibles.

While high deductibles are great for low monthly premiums, they can make it difficult to recover after a major storm. Since hurricanes are unpredictable beasts, make sure your deductible is low enough for you to pay it at a moment’s notice.

No Insurance Payouts for Negligence

When damage occurs to your house and it’s a result of your negligence, it’s unlikely your insurance will cover it. For example, let’s say you replace the wiring in your living room, and it causes a fire. Your insurance policy won’t pay for the damages since if you’d hired an electrician to perform the work, the damages may not have happened.

The same holds if you experience a loss as a result of a preventable theft. If you left your house with your front door open or didn’t lock the door, the insurance company isn’t on the hook to pay. It’s up to you as a homeowner to fulfill your responsibilities to make sure your house is reasonably secure.

Home Insurance Coverages

On top of knowing when your insurance policy will become active, you should also know what it’ll pay for. Here’s a shortlist of the different types of home insurance coverage:

  • Dwelling protection
  • Other structures
  • Personal property
  • Liability

The most standard of all homeowner’s insurance coverages is your dwelling protection. The dwelling coverage is the protection that will help pay for the structure of your home. This includes your house’s foundation, walls, and roof. The dwelling protection can also cover structures that attach to the home, like an attached carport, or garage.

Next, we have the other structures coverage. The other structures coverage will protect any structures on your property that aren’t attached to your house. For example, a shed in your back yard would qualify as the other structure and would fall under this coverage. If you live in an apartment building some countries have just one insurance policy for the whole building.

Moving on, we have the coverage for your personal property. All of your furniture, electronics, and other personal items fall under this coverage.

Keep in mind however that there are specific categories for the property your policy will cover, and limits for each category. For example, there’s a strict limit for the amount of jewelry or paper money policy that will replace. You can always look into purchasing additional coverages, or extended coverage if you feel your current policy limits aren’t enough.

Finally, liability protection will help pay for the medical costs of someone getting hurt on your property. You have to be at fault for the individual’s injuries and they can’t be a member of your household, for liability coverage to apply.

Don’t Compare Policies

Each individual policy has coverages and costs that are carefully calculated on a per house and per person situation. Your house’s age, material, and history will all play a part in determining the coverage you’re eligible for. The same holds for you as a person.

Your age, career, and financial history will directly impact what you pay for home insurance. If you want to find ways to lower the cost of your homeowners insurance coverage, go directly to your insurance company and ask for help.

Even if they can’t get you a lower price, they can at least clearly explain why you’re paying the price you are. When it comes to financial success, knowledge is the ultimate power. See what our money experts have to say in our Finance section today!

Why You Need Commercial Vehicle Insurance

If you run a small business, you may find that you need to use a car or commercial vehicle to run errands that will keep your company ticking over – whether that’s transporting goods to a customer, visiting a site or even driving your customers yourself. Have you got the correct insurance cover for your work, though?

It’s vital that you make sure you have the right coverage for you and your business’ transportation requirements. If you don’t think you need to have it, then here are some of the reasons you should.

Your personal insurance may not cover you

A personal auto insurance policy is designed to cover individuals, and not any business entities. The insurance typically covers those who are named in the policy declarations.

If you have a look at your personal auto insurance, you may also find there are business-related risks that are excluded from the policy. These may include:

  • Commercial auto exclusion: many policies exclude someone from using a vehicle if they are employed or engaged in a business that isn’t ranching or farming. However, this doesn’t apply to private passenger vehicles or pick-ups/vans not used for transporting/delivering materials and goods. If you have a vehicle that’s larger than 10,000lbs or you use any-sized vehicle for delivery or transport, then you need commercial auto coverage
  • Auto business exclusion: this applies to vehicles used in businesses that sell, repair, service, park or store autos – such as a repair shop or dealership
  • Livery exclusion: pretty much all personal policies exclude using trucks or private passenger vehicles to transport people (eg taxi service) or property (eg packages) for a charge. This also includes ride-share businesses

Limits may be inadequate

Most personal auto policies won’t have the liability limit that you may need for a business. The typical maximum limit for a personal policy will be $500,000 – whereas your commercial vehicle insurance could provide you with an auto liability limit of $1,000,000.

Such coverage could be money well spent. If you’re unfortunate enough to be involved in an accident where there’s a serious injury, then that could result in you receiving a large liability claim. So, if you don’t have adequate coverage, then that one claim could put you out of business.

You may be required to have it by law

Federal law says there are strict commercial auto insurance requirements for certain businesses that use vehicles to transport passengers or goods between states. However, these requirements will be different depending on what you are transporting. Your commercial insurance provider must submit filings to verify that you meet the insurance requirements that you need.

If you don’t cross state lines for work, then you may still need to submit these filings with state officials to confirm you meet your state’s insurance requirements. This will also include commercial auto insurance conditions that may apply.

So, if you’re transporting parcels, people or equipment, then it may be that you’ll need to get commercial vehicle insurance. It may save the future of your business if you are involved in an accident.

5 Ways to Claim Life Insurance After a Death

A life insurance policy is paid off by an insurer to the beneficiaries after the sudden death of a policyholder. The insurer can pay the proceeds from the policy in lump sums or installments. The benefits are paid off after the verification of the documents presented. The insurer reviews the policy and authenticates the beneficiaries’ documents and proof of death availed before any payout is made. There are many ways to claim payments for a life insurance policy. You can use any of the options listed below to make a claim and receive benefits:

1)    Through An Insurance Lawyer

Beneficiaries can approach a lawyer to claim a life insurance policy on their behalf. A life insurance lawyer will help in analyzing and interpreting the policy for better understanding. He or she will also help predict an outcome on the claim.

The lawyers may also help investigate a claim to remove any doubt and clear allegations made by the insurer. Once an insurer delays payment for a claim or cancels, the lawyer can pursue the claim too. In case of an unclear claim, a lawyer can negotiate the payout terms for you to ensure that you get to benefit from the policy.

2)    Direct Claim

Knowledgeable dependents can make the policy claim directly to the company. This process is shorter and easier too. The dependents have to provide proof of death by presenting a certificate and the original policy document. They should also provide documents proving that they are entitled to make a claim legally. Once the insurer verifies the information provided, they release the claim money.

3)    Through An Agent

Once a policyholder passes on, an assignee or a nominee can approach an agent to make a claim. The agent can be the one who insured the policy or one appointed to handle life insurance claims by an insurer. The agent helps the beneficiaries in the application and verification process. Since agents make direct contacts, it can be easier to verify a claim and offer assistance if need be. An agent also makes a follow up on the claim easing the burden for beneficiaries.

4)    Through An Assignee

Children who are below the legal age can have their guardians make claims on their behalf. The guardian can do this only with approval from the court. They can also present the custody documents as proof too before making any claim. To protect the interest of the children, payouts made are closely watched by administrators and court-appointed representatives to ensure it benefits them.

5)    Policy Finders

There are times when the deceased persons fail to share insurance policy information with their loved ones. These policies remain unclaimed for years if no beneficiary gets to learn about their existence. Once a loved one dies, you can search for the policies they had acquired through policy finders or in state insurance departments. In instances where it can be proven that the deceased had a policy, you can proceed and claim the policy. However, you would be required to provide legal documents proving you are the legal beneficiary and a death certificate. This process can be tedious and long but once done in the right manner it can bear the necessary results.

How to Save Money on Your Insurance With Pass Plus

Pass Plus is a six-hour practical driving training course, designed to increase the confidence and safety of newly qualified drivers. It was developed by the Driving Standards Agency (DSA) in conjunction with the insurance industry to incentivise new drivers to beef up their motoring skills, learning skills such as motorway and nighttime driving not covered by standard driving test.

The lessons are available through Pass Plus registered approved driving instructors (ADIs). The course costs around £180, although this can vary based on the instructor you choose and area you live in. Some councils offer discounts for local residents.

Some auto insurers will trim premiums for drivers who have passed the course, providing a valuable discount for young and newly qualified motorists who may otherwise face very high insurance costs.

However, this discount varies between insurers and may only be available to drivers who have passed their driving test within the last year. If you’re looking only for a discount, you may want to compare car insurance quotes before signing up for a Pass Plus course. But Pass Plus has other benefits and even if it doesn’t lead to lower insurance premiums, it can be an investment in your safety and lifelong driving skills.

Skills Covered by Pass Plus

Pass Plus covers crucial driving skills that likely won’t have been covered—or fully covered—in the driving lessons you took in preparation for your driving test. The exact skills taught vary between driving schools and instructors but the modules remain the same:

  1. Town driving: Pupils are taught to navigate complex junctions and traffic systems; to share the road with others users, including pedestrians, cyclists, and buses; to park in city centres and to understand the need for space around their vehicle.
  2. All-weather driving: Drivers are taught how various weather conditions, from rain to snow to fog, effect how a car performs and behaves on the road. Drivers are taught how reduced visibility and increased stopping distances mean you should drive more slowly and leave greater distance between cars during adverse weather conditions. Drivers are also taught how to avoid skidding and how to recover from a skid.
  3. Out-of-town and rural roads: Drivers are taught how to deal with the unique features of rural roads, including blind curves, difficult overtaking, and slow moving animals and farm equipment.
  4. Night driving: Freshly qualified motorists are taught to confidently manoeuvre and judge distance in the dark, drive with headlights, and cope with nighttime glare.
  5. Dual carriageway driving: Students will learn how to maintain sufficient following distances, use the correct lane, and use slip roads.
  6. Motorway driving: As of June 2018 learner drivers are allowed on UK motorways with an instructor in the passenger seat but Pass Plus will give you more experience, particularly with merging, overtaking, and using the correct lane. You’ll also learn what to do in the event of a breakdown.


The Pass Plus scheme was developed by the government in the hopes that insurers would offer successful students insurance discounts of up to 35%.

However, the adoption of Pass Plus discounts hasn’t been widespread. Insurance companies base their premiums on complex assessments of risk, backed up by years of accident and claims statistics, and unfortunately, it hasn’t been proven that Pass Plus curbs the high rates of collisions among newly qualified drivers.

While some insurers do offer a discount, it’s often nowhere near 35%. And it’s often reserved only for drivers who have passed their tests within the last year. However, reportedly Co-operative Insurance offers up to 40% off premiums with the presentation of a Pass Plus certificate. Aviva, Churchill, Direct Line, and Young Marmalade also offer discounts, generally around 5% off premiums.

However, discounts don’t always mean cheaper premiums and you should always compare car insurance quotes, preferably using a comparison site, before committing to a policy, even one advertised with savings.

Should You Do Pass Plus?

Pass Plus can earn you discounts on your car insurance premiums—but it might not. If you can afford the course, however, there are worse ways to spend six hours than boning up on your driving skills. One in five drivers will be involved in an accident within a year of passing their driving test, a statistic that concerns insurers but will also concern novice drivers and their families. If you’re not feeling confident driving on motorways or after dark following your test, sign up for a Pass Plus course. Even if you earn a discount on your insurance, you’ll learn skills that will keep you safe, and maybe, when recorded by a black box with a telematics policy, can cut your insurance premiums that way.

5 Tips to Protecting Your Assets Against Fire

Protecting your assets, property, employees, or residents is the top priority for any business owner. That’s because fire can have a devastating effect on any enterprise in many different ways. Apart from causing damage to property, a fire can lead to injury or even death. It can also cause an extended downtime for your business, leading to loss of revenue.

Chances of this happening to you may be slim, but it always pays to be ready for anything. That’s why it’s vital that you take all the necessary steps to protect your assets against fire. A good starting point would be to bring in fire safety professionals to implement fire prevention measures that are suitable for your business. Apart from that, here are 5 other tips that can help you protect your assets from fire damage:

  1. Focus on Fire Prevention

The best way to reduce the risk of fire in your business is to be proactive about preventing fires from breaking out in the first place. To do this, start by encouraging your employees to clean up the office space and reduce any clutter. Doing this will remove any extra material that could provide fuel for a fire.

Another great way to prevent a fire is by prohibiting the use of candles or space heaters in the space. This is important because the top cause of many office fires are space heaters that have been left on overnight.

You should also work with expert safety vendors like Parr Fire Protection Services to ensure that all your assets are safe and protected. These certified professionals will be able to perform a fire hazard analysis, showing you any fire risks that you may be vulnerable to. They can also suggest viable solutions and help you implement them.

  1. Install a Fire Alarm

In case a fire does happen, it’s important to have a properly installed and operational fire alarm system at your business. This will ensure that your employees and the proper authorities are notified at the right time. After all, prompt notification can greatly reduce property damage and injuries in any fire.

You should also ensure that all employees are properly trained on how the fire alarm system works. Everyone in the office should know how to activate the fire alarm manually when necessary, and how to exit the premises to reduce the risk of injury.

  1. Get the Right Equipment

It is vital that any business invests in the proper fire safety equipment. This includes things such as fire extinguishers, sprinklers, and fire suppressants. All of these should be properly installed and monitored to ensure that they are always in good working condition. As long as they work correctly, such systems can help save lives and minimize damage in case of a fire.

Since this is so important, it’s essential that you hire experienced professionals to ensure that the job is done right. Apart from installing these systems, the pros will also ensure that all equipment is in proper operating condition and compliant with all the relevant fire codes in your area.

  1. Routine Inspections

While having the right equipment is essential, it’s also vital that they are inspected and monitored regularly. This will ensure that, should a fire break out, all of your fire-fighting tools will work as required.

  1. Formulate an Emergency Plan

Whether or not a fire emergency strikes, ensure that your company has a detailed emergency plan in place. Furthermore, ensure that all of your employees know how to execute the plan effectively. You could implement regular fire drills to ensure that everyone is on the same page.

How Losing Obamacare Will Affect Your Insurance

Obamacare is big news right now as President Donald Trump has tried and has, so far, failed to repeal the landmark policy of the previous administration. But despite numerous setbacks and consistent splits in the Republican ranks, the fight for Obamacare is not yet over.

It’s always best to prepare for the worst, so how will your insurance be affected if Obamacare is repealed?

Almost 30 Million Will Lose Insurance Entirely

To put it simply, a lot of people will be unable to afford insurance. And this won’t just be a disaster for anyone suffering from a serious illness. It will be a huge problem for anyone who relies on things like Obamacare for things like senior dental insurance.

Both medical insurance and dental insurance has a high chance of taking a big hit if Obamacare is repealed. You may find that your dental care is no longer covered and that many of your prescriptions have to be paid out-of-pocket.

Low-income Americans are especially vulnerable to these changes, and they may have no choice but to stop paying their insurers.

Pre-Existing Conditions Will Come Under Attack

If you have any form of a preexisting condition, which may even include pregnancy, your premiums are set to rise. Under Obamacare, insurers were unable to discriminate against people who had pre-existing conditions. This protection would be lifted without Obamacare and that would allow insurers to discriminate all over again.

Medicare Users Would Lose Care

Americans over 65 have relied on Medicare to help them receive care. A full repeal of Obamacare would mean higher payments for medical services covered by the Medicare Advantage portion of Medicare. It would not necessarily mean no care at all, but it would mean higher premiums for seniors signed up to this scheme.

No Coverage for Preventative Care

Another big risk to the Medicare program is that seniors would no longer be able to access preventative care for free. It would mean that many seniors would have to pay out-of-pocket for preventative procedures.

In practice this would mean that many seniors wouldn’t be able to afford preventative measures, thus leading to more major procedures and more expensive care further down the line.

More Out-of-Pocket Costs

Current studies reveal that $4,700 will be the average amount Americans will have to pay in out-of-pocket costs if Obamacare is revealed. In short, you will see less effective insurance that increases the amount you have to pay.

This happens in a variety of ways. The main two are for procedures that are no longer covered under your insurance scheme and the higher deductibles insurers are likely to impose in the event of a successful policy repeal.

Last Word – Why Obamacare Repeal is a Disaster

Obamacare repeal would mean, for the majority of Americans, less protection and bigger premiums. There are also more out-of-pocket costs for Americans everywhere.

This could mean terrible things for your insurance and your protection. What do you think is the biggest risk of the current administration taking away the protections put in place by Obamacare?


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