Skip to content

Insurance

Absolute Insurance – Guidelines

Every auto owner must have auto insurance in order to drive their vehicle legally. You can get into serious trouble with the law if you do not have insurance in place and if someone hits you – or if you hit them – and auto insurance is not held by you or the other person, legal issues are not the only thing you will have to worry about. You will have to worry about how the vehicles will be fixed if they can be fixed and how doctors bills are going to be paid if someone is seriously injured.Absolute Insurance

If you get into an accident, the first thing you should do is make sure your auto insurance was in force at the time of the accident. Most insurance agencies have a 24 hour hotline for just the reason. If another person was involved, you will need to make sure their insurance is in force as well. The next step is to immediately contact the authorities so that they can help control the situation and charge whoever was at fault for the accident. This helps auto insurance agencies determine who is liable for any repairs or doctors bill. Having auto insurance is extremely important.

When you purchase a vehicle from an auto trader, a private person, or at an auction, you will need to contact your insurance agent immediately to let them know that you have purchased a new vehicle. Sometimes the auto trader will carry insurance on the vehicle they sold you for 24 to 48 hours in order to protect you until you can get your insurance in place. When you purchase a vehicle from an auto trader, always ask them about temporary insurance they may have in place. Additionally, always inquire about coverage for a new car with your agent before you purchase it. You may find that your coverage will be in force temporarily through your agent until you can sign or pay on a new insurance agreement.

If you get into an auto accident and your vehicle is considered a total loss, the vehicle may be used for auto parts if there are areas of the vehicle that are not damaged. Many auto salvage yards receive vehicles from accidents where auto parts can be salvaged and then resold for a reduced price to people who need them to fix up their own cars. Reliable auto salvage yards are a great source of auto parts that can save you some money if you are able to work on your own vehicle or know someone who can do the work for you.

Being able to prove that an accident is not your fault is key to making sure that you do not see increased auto insurance rates or are left out in the cold when they refuse to pay your claim. This is one of the reasons why a police report and unbiased witness accounts are important in an auto accident. If no report is filed with the police, then the cost of the accident will be split between you and the other party. This is not fair to you if you are not at fault, so always protect yourself and your investment. Never accept blame for an accident. Make the report in an unbiased way and let your insurance company determine the blame based on your information and the reports they receive. After all, this is what you pay them to do.

Absolute Insurance Basics

Let’s be honest. The topic of life insurance isn’t exciting or glamorous, but it is important. In fact, many experts consider life insurance to be the cornerstone of good financial planning. Absolute Insurance

But how do you know if you need life insurance? How much is enough? What kind of life insurance policy is best for you?

Answering these basic questions about life insurance will help to simplify the shopping process and ultimately allow you to select the best policy to secure your family’s future for years to come.

Establishing Your Needs

To clear up any misconceptions, life insurance is designed to protect your loved ones from financial loss in the event of your death. Knowing this, it’s important to establish whether you need life insurance and how much you should purchase.

According to MetLife you generally need life insurance if:

You have a spouse
You have dependent children
Relatives or elderly parents depend on your income
Your retirement funds are not enough to provide for your spouse’s future
You own a business
You have a large estate
The beneficiaries of your life insurance policy can use the proceeds from your life insurance to:
Pay for last expenses and funeral costs
Cover estate taxes (if applicable)
Pay off existing debts (mortgage, car loan, credit card debt)
Pay for everyday expenses (food, clothing, childcare)
Put towards your spouse’s retirement fund
Donate to charity
If you don’t have dependents, you may still wish to purchase a life insurance policy to avoid becoming a financial burden to your loved ones in the untimely event of your death. Young singles also benefit from purchasing life insurance while they’re young and healthy, allowing them to secure a low premium for years to come.
Choosing a Dollar Amount

Figuring out how much life insurance your loved ones would need to maintain their quality of living can be tough. Generally speaking, experts recommend purchasing between 5 and 10 times your annual salary. But, as MetLife points out, your exact need for life insurance will depend on your personal and financial circumstances.

You can get a ballpark estimate of your life insurance needs by first totaling the funds your family would need for the abovementioned items (funeral costs, daily living, etc.). You can find helpful worksheets online that will help you organize and come up with this list of expenses.

After you’ve totaled your expenses, take stock of the funds you have in cash, savings, retirement accounts, bonds, property, pension and Social Security. Subtracting your financial resources from your expenses will give you a rough idea of how much life insurance you should purchase.

When it comes to choosing how much life insurance to purchase, it’s a good idea to get an idea of your needs before buying a policy–but your licensed life insurance professional will undoubtedly help you choose a dollar amount that accurately reflects the needs of your beneficiaries.

Selecting a Policy

Generally speaking, there are two types of life insurance: term life insurance and permanent life insurance. The type of policy you select will depend largely on your life insurance needs and what resources you have to pay life insurance premiums.

Term Life Insurance

Term life insurance, as the name suggests, will cover you for a specified amount of time, which means the insurer will only pay out a death benefit if you die during the term of your policy.

According to the Insurance Information Institute (I.I.I.), most people purchase a 20-year term policy, although smaller terms are available. Of course, you can renew your term life policy after it expires, although your premiums may increase as you age. But all in all, because of the “temporary” nature of term life insurance, policies are generally much cheaper and are therefore an attractive option for young people and families with a limited income.

Permanent Life Insurance

On the other hand, permanent life insurance, as you might have guessed, is permanent. A permanent life policy will pay out a death benefit whether you die tomorrow or in 60 years.

Permanent life insurance is also an appealing option for many because of the added benefit of the policy growing on a tax-deferred basis, which can grow to be fairly large over time. As a policyholder, you may be able to borrow against this cash value while alive, which has been of great help to some. Of course, most loans need to be paid back otherwise they will be subtracted from the death benefit, and your beneficiaries may have to liquidate assets to pay back the loan.

Nonetheless, permanent life insurance offers a wide variety of saving and investment options. Because of this, policies are generally more expensive than term policies, which may be hard for young adults to handle.

Your life insurance professional will help you decide which type of policy is best for your life insurance needs–and your budget. But researching these policy types beforehand can help you narrow down which policies appeal to you.