Income Protection Insurance - Have You Left it Too Late?

"You have left it too late." Thousands of people are hearing this every day and experiencing that sinking feeling when they realise something once so freely available, is now denied to them. People without savings or perhaps with less than 2 months wages in the bank (that's the majority of people of working age) were able to buy Income Protection insurance very easily. This insurance policy provides a financial lifeline for them and their families if their income is interrupted by Unemployment, Accident or Sickness. Its seems almost overnight that people who were considered the best clients of insurance providers, typically banking and financial services, are now struggling to find cover. They have joined people in the building trades and estate agents who were in the first wave of occupations to fall victim of the credit crunch. We are now seeing the impact of the wider recession.

Take cover

For families and individuals with minimal savings, it will be vitally important for them to move quickly before their sector is the next to suffer the same fate. For many it is only a matter of time before either Mortgage Payment Protection Insurance or Income Protection Insurance is denied to them as well.

One in ten jobs in the UK rely on the retail. It does not take a genius to calculate that the retail sector will see significant contraction and job losses, particularly those handling big ticket items or discretionary purchases. Think in terms of the bad news already filtering through about a down turn in car sales, kitchens, and furniture. After all, most people can put off big purchases, especially as the property development frenzy of recent years peters out.

Engineering is another where shrinking order books see managers beginning to check their company redundancy terms. This may prove to be a precursor to one of many 'difficult conversations' with employees. Indeed, they may find they are soon to join their fellow ex-employees looking for alternative work.

For the majority of people in Britain, money for savings simply does not exist. Up until now this has not been a problem as jobs were plentiful. Unless signed off from work on a long term basis following an accident or due to sickness, being out of work was very temporary indeed. How long can people expect to be out of work as Britain falls into recession? Though everyone will have a different experience, any job search is guaranteed to be much harder than it was last year.

6 months to get another job

In the spring of 2008 a specialist consultant working with ManPower, who asked not to be named, was advising his white collar clients they should think in terms of 2 - 3 months between jobs. He is now saying think six months or more and this will just be for temporary contracts. The Telegraph (10.10.08) were reporting a contraction in full time posts in the UK with the number of temporary vacancies still holding up. The selection and interview process for any job is far more intense and time consuming than in the past. One thing is for sure, it is not going to get easier and the competition for the few full time jobs available will be very tough.

Financial meltdown can be avoided

Check out the Web to search on Income Protection or Lifestyle Protection (very popular alternative name that used by the Post Office for example). Money Supermarket has a buyers guide and price comparison. People who try on-line quotations and find they have issues with acceptance criteria due to their occupation may need to approach a specialist broker instead.

Just don't leave it too late and be forced to join the increasing numbers facing financial melt down who have nothing to fall back if their wages stop rolling in.

Why Consider Mortgage Unemployment Insurance?

With 2008 becoming the year of the 'credit crunch' and literally hundreds of thousands of people in the UK subsequently losing their jobs to redundancy, mortgage unemployment insurance is something that anyone who has a mortgage must have least considered.

And even in times when the economy is stable, redundancy is still a very real threat, so the idea of still being able to continue maintaining your mortgage repayments, even though you have lost your income due to involuntary redundancy, is invaluable. And, quite simply, this is what mortgage unemployment insurance does.

Should you be made unemployed through no fault of your own (and this does not mean should you get fired or dismissed due to misconduct or you elect to take voluntary redundancy) then the mortgage unemployment insurance - also known as mortgage payment protection insurance, or MPPI - will start to pay a tax free benefit. This monthly benefit can be used towards meeting your mortgage commitment every month as well as related costs such as life, critical illness and home insurance premiums, up to a provider's set limits.

By having this benefit, you will be able to still service your mortgage debt and not worry about getting in to arrears or even, in the worst case scenario, having your home repossessed. At a stressful time, having at least some of the financial worry taken away will mean you can focus on getting alternative employment and not be under pressure worrying how to pay your mortgage.

A typical mortgage unemployment insurance policy will start to provide an income from 30 to 90 days after you are made unemployed. This varies on the individual policy terms and conditions, as does the length of time you can receive the benefits (which can be for up to 12 to 24 months, or when you find new employment, whichever is the sooner).

How much you receive will have been agreed at the time you took out the mortgage payment protection insurance cover and this will be reflected in the premiums you will pay which will be x amount for every £100 worth of protection you require. By shopping around for your mortgage payment cover, you can often find it an affordable price, particularly among the independent brokers.

Also, for an additional fee, you can add on accident and sickness cover to the policy (that is why you may sometimes hear it called by the term Accident, Sickness and Unemployment Insurance - or ASU for short). That means that should you lose your income due to involuntary unemployment or due to recovering from an accident or a prolonged illness, the policy will start to pay out the benefit to give you financial assistance at a difficult time.

When choosing your mortgage unemployment insurance, do check that the terms and conditions very carefully, especially for any exclusions which would render the insurance useless. Typical exclusions will include the policyholder being in part time employment or of retirement age. If you are unsure as to whether you would be eligible to claim on your insurance, speak to your broker.

E&O Insurance For Your Small Business

Do you own a business which provides a service to your client for a fee? If so, you have an E&O (Errors and Omissions) exposure where your company can be sued for mistakes or omissions that result in financial losses for a client.

Also called "Professional Liability" or "Malpractice" insurance, Errors and Omissions (E&O) insurance should be considered by companies and individuals who work with clients in the areas of consultation, service providers, design or sales.

What is E&O insurance? It is a separate insurance policy that provides your business insurance coverage to cover judgments, settlements and defense costs that can result from errors (or omissions) that you have made or that a client perceives you have made. Even if the allegations are found to be groundless, thousands of dollars may be needed to defend the lawsuit.

Do you need an E&O policy? The most well know professionals who need E&O insurance are doctors, lawyers, accountants, architects, and engineers, etc. However, if you provide a service to your clients for a fee you too have an E&O exposure. There are hundreds of businesses that fall under this category and range from wedding planners to advertising agencies.

Does your general liability policy cover E&O losses? General liability policies do not provide E&O coverage. A general liability policy does not provide coverage for errors, contract performance disputes or any other professional liability issue.

What should you look for in an E&O policy? E&O insurance helps protect you business in two vital areas. The first are attorney fees. Many times the cost to defend an E&O claim is more costly than the settlement itself. Even if you are sued with a frivolous law suit you still have to pay for your legal defense. Most E&O policies provide defense cost for your company up to the coverage limit on your policy.

The second vital area of coverage is to pay the amount of any settlement you would pay if found at fault. Presume that you are a wedding planner and you are to plan a wedding for June 11th but for some reason there is a mix up and you reserve the reception hall, band, caterers etc, for June 4th instead. On June 4th the band, caterers etc. all show up at the reception hall to find no one there, who pays? This is exactly what an E&O policy covers.

E&O policies vary from company to company so you need to make sure that your policy provides adequate coverage for your particular business. Cost for E&O policies also vary greatly depending on the class of business, location, claims experience etc. You should contact your local agent to discuss your business E&O exposures and determine if an E&O policy is right for you.

A Few Points on Insurance Policy For Two Wheelers

Two Wheeler insurance in India, like all other Motor Insurance, is governed by the India Motor Tariff. It is applicable to all motorized Two Wheelers.

There are two basic types of policy, Act only Policy and Package Policy. Act only Policy covers liability towards third parties ( death / injury / Third party property damage ) and Personal Accident cover to the owner cum insured. Package Policy covers loss / damage to the vehicle or its accessories, in addition to the cover granted under the Act Policy. The Premium charged depends on

1. the value of the vehicle
2. Cubic Capacity of the Vehicle ( not exceeding 150cc / exceeding 150 cc but not exceeding 350 cc / exceeding 350 cc )
3. age of the vehicle ( not exceeding 5 years / exceeding 5 years but not exceeding 10 years / exceeding 10 years )
4. Geographical Zone(s) in which the vehicle is registered ( a. Ahmedabad, Bangalore, Calcutta, Chennai, Hyderabad, Mumbai, New Delhi and Pune

Rest of India

The Registered Owner of the vehicle is required to fill in a proposal form, giving full details of the vehicle, in addition to certain basic details like/regarding his name, age, address, occupation etc. The owner may opt for the following extra covers on payment of prescribed additional premium.

1. Electrical , Electronic fittings and accessories
2. CNG / LPG Kits as permitted by RTA
3. Liability to paid drivers / cleaners
4. Liability to employees ( of the Insured ) using the vehicle
5. use in / for rallies, motor racing, speed testing organized by recognized motoring agencies
6. use for driving tuitions given by Driving Schools recognized by RTA
7. Personal Accident cover to the owner / insured ( if he has a valid Driving License )

Discount in the basic premium is granted if:

1. the vehicle is fitted with a side car
2. the vehicle is fitted with anti-theft device(s)
3. the owner is a member of recognized Automobile Association
4. the vehicle is designed / modified for use of blind, handicapped and mentally challenged persons ( if suitable endorsement is made in the RC by RTA )
5. the insured has not preferred any vehicle damage claim ( No Claim Discount )
6. if the Insured agrees to bear an additional amount (Rs.500 to Rs.3000) as deductible in the event of a own-damage claim (Voluntary Deductible)

Limits of Liability of the Insurer:

For OWN DAMAGE Claims (Partial damage caused to the insured vehicle by accident , fire, strike, riot, earthquake, flood, malicious act, terrorist activity, while in transit by road, air, rail, inland waterway, lift, elevator) - Cost of materials and labour (including Towing Charges), as assessed by a qualified surveyor appointed by the Insurer, subject to the following:

1. Compulsory Excess of Rs.50 per accident
2. Voluntary Deductible, as already agreed by the Insured
3. Parts to be replaced will be allowed with a depreciation of 50% for rubber parts, 30% for fiber Parts, 5 to 50% for others parts. Glass Parts are allowed in full, without any depreciation.

If the vehicle suffers a total damage (theft or due to causes mentioned above) - The Declared Value of the Vehicle will be paid (The Value of the vehicle as declared in the policy)

For THIRD PARTY Claims : for death or injury claims, the award decided by the Motor Accident Claims Tribunal will be satisfied by the Insurer. For Third Party Property Claims, the award decided by the MACT will be satisfied, subject to a maximum of Rs.100000 ( if the Insured has not opted to limit the TPPD Limit to the statutory requirement of Rs.6000 ).

The Insured is required to use the vehicle as per the terms and conditions of the policy, as otherwise, he would be held responsible for any liability ( Own Damage or Third Party ) incurred. A diligent Insured should be careful always - before and after taking policy.

1. He should fill in the Proposal Form carefully, as any incorrect or false answer may turn against him in the event of a claim.
2. The vehicle should not be used, unless it is covered by an insurance policy
3. Carriage of Goods (except samples) is not allowed.
4. Use of vehicle for hire or reward is not permitted.
5. The rider should have a valid Driving License.
6. The vehicle should not be used for speed testing, racing, pace making, reliability test or giving driving tuitions (unless extra cover has been taken).

If the Insured renews his vehicle policy without break in insurance and uses the vehicle in accordance with the terms and conditions of the policy, he would be free from unnecessary worries.

Landlord Insurance - Don't Forget to Protect Yourself With a Business Owners Policy

It is always important that you work to protect yourself, whether you are a landlord that is renting out a home or whether you are the tenant who is renting from a landlord. You never know what can go wrong on both ends of the deal, so having rental insurance is definitely a must. Of course you'll find that there are particular options for renters when it comes to renters insurance and then there is special rental property insurance for landlords available as well. Although many people may think that a landlord should be insured, they often forget to realize that it is so important that they have insurance while they are renting as well. So, let's take a look at both landlord rental insurance and renters insurance for tenants.

Landlord Rental Insurance
Having your own insurance as a landlord is very important if you are going to rent out properties. It is important that you are well protected when you are involved in renting property and good insurance can help to keep you protected if you lose income, if there are legal disputes, and if something bad happens to your property. There are a variety of different options available and coverage for many different situations that is available. However, there are some basics that you'll always want to make sure are included in your policy. Here are the fundamentals of a policy for a rental insurance policy for landlords.

- Property Coverage - First of all, you'll find that property coverage is going to be important if you own rental property. When you go with landlord rental insurance, you'll want to take a look at your policy to see what kind of property coverage you have. You'll want to make sure that your insurance policy covers the rental building itself, any other structures that you have on the property, such as the shed or a garage, and your own personal property that may be stored on the rental property should be covered as well.

- Protection from Lawsuits - Another important thing that you need to look for when it comes to your rental insurance as a landlord is protection from lawsuits. When you are renting out property, this is a huge risk that you will face. If people get injured while they are on your rental property, they could try to sue you. For this reason, having good insurance that will protect you against these lawsuits is important and will definitely come in handy if you every deal with this type of a problem.

- Protection in Case of Loss of Rental Income - Loss of rents coverage is also very important if you are a landlord. If for some reason you end up not getting the income that you are supposed to from your tenants, you still have to come up with the money to pay the mortgage. This type of insurance helps you to make sure that you'll be insured in case you do lose your rental income.

Renters Insurance for Tenants
Of course renters face many risks when they are renting as well and renters insurance is definitely an important purchase. If disasters strike, you'll be at the same risk as someone that owns their own home. While the landlord probably has their own insurance, it is not going to protect all of the things that you own. For this reason it is so important that you have good renters insurance that will provide you with the coverage that you need for all your goods when you are renting. So, let's take a look at some of the things your insurance will cover.

- General Coverage - First of all, let's take a look at the general coverage that you'll get with renters insurance. Your personal property will be protected by your insurance in the case of several different types of perils. Some of these perils that are covered include hail and windstorms, aircraft and vehicle damage, volcanoes, lighting, fires, riots, falling objects, theft, vandalism, smoke, explosions, weight of snow, accidental cracking of water heaters and air conditioners, water damage from appliances, sprinkler systems, air conditioning, and plumbing, freezing of the plumbing, and electrical current damage. Of course it is important to realize that earthquakes and floods are not included. If you think that you may have a problem with either of them, then consider a separate policy.

- Taking Inventory of Belongings - When you are purchasing renters insurance, you'll want to take the time to take inventory of your belongings. This is important, since you'll want to be reimbursed if something happens. You can do this by keeping receipts, documenting with photos or videos, and writing down all the items and serial numbers of valuables that are in your home.

- Other Benefits - There are other benefits to going with rental insurance as a tenant as well. Often your policy will provide you with liability coverage if some falls and sues you. Also, if you have to move out because of a problem in the rental, often the insurance will cover the expenses of living somewhere else if you have to.

Requirements For Obtaining Foreign Insurance

Planning a trip to a foreign destination is an exciting and fun process. Of course, it can't all be fun and games. There are many important legal aspects that also need to be taken care of before you set out. Driving in a foreign country involves a valid driver's license and insurance. There are many things that may be required of you and those things can change depending which country you are going to. Be sure to find out what you need to take care of in advance so that there are no nasty last minute surprises.

In many foreign countries your own home country driver's license will not be good enough. You will be required to show an international driver's permit to prove that you are legally allowed to drive there. This involves an application process, so give yourself enough time to get all of this in to place. In fact, it may be better to book the rest of the trip after taking care of these issues.

Go to a reputable travel agent that you trust for assistance. By having help on your end it can do plenty to eliminate language barrier delays. A travel agent may also be able to give you some tips on saving money in a foreign country and alert you to legal issues that you need to be aware of.

Make sure that any car rental you get involved in has some kind of insurance in place. Most well known companies like Budget or Enterprise have this stuff taken care of. But you need to know it is there so ask for paperwork that states as much. Go over the insurance coverage as well to make sure there are no loopholes that will leave you stuck in the event of an accident.

Take out your own travel insurance that can also be applied to automobiles. This may be preferable to you if it is added security that you seek. Speak to travel insurance representatives to see what they can offer you in terms of cost and protection. An insurance company should always be working with you, not against you.

The statistics regarding accidents and fatalities abroad are substantial. An estimated two hundred Americans die each year from accidents that occur while they are visiting in a foreign country. This can be a result of everything from car jacking to traffic accidents. Do what you can to protect yourself at all times. This is a statistics list that nobody wants to end up on.

If you end up bringing your own car to a foreign country, make sure that it meets all legal requirements for that place. From insurance to registration and licensing, all legal aspects need to be up to date and legit. Make sure that any insurance coverage you receive matches what you have back home. Anything less may leave you unprotected. The first step to getting foreign car insurance is being aware of what is expected of you. Equip yourself with knowledge so there are no ugly surprises.