Talking to Your Parents About Insurance
Are your parents adequately protected against financial loss? What if your parents' home burns down and there is insufficient insurance to cover the entire loss—can they come live with you? What if one of your parents is held liable for someone's injuries, but does not have liability insurance—will he or she be financially ruined? What if a parent becomes seriously ill and needs long-term care—will he or she have the financial resources to pay for care? What if one of your parents dies unexpectedly—will the surviving parent have enough money?
If you're a member of the baby-boom generation, your parents may be of an age where these concerns may be troubling you. The only way to get the answers and ease your worries is to have a heart-to-heart talk with your mother and father. This may not be easy for some people, but if you shy away from this topic, the consequences could be devastating. Your parents were there to talk to you about the tough issues—now you need to be there for them. How you choose to approach them will depend on the type of relationship you share (e.g. adversarial, open and warm). Here are some tips on how to break the ice:
Prepare for resistance
Your parents may find inquiries regarding insurance intrusive, regardless of the fact that you're trying to help. They may feel it's none of your business, or that it's demeaning for you to assume they haven't made the proper arrangements. Be prepared to explain that you're simply concerned about their well-being and don't mean to be nosy or presumptuous.
Keep it private
A discussion about insurance involves issues that are personal. Broaching the subject in a restaurant or other public setting is inappropriate. Keep the conversation private, and choose a setting where your parents feel comfortable—at their own kitchen table over a cup of coffee, for instance. Also, don't rush the conversation. Even though you shouldn't expect to finish or resolve anything during the initial exchange, be sure you've set aside enough time to comfortably address everyone's concerns.
There's safety in numbersIf you have siblings, encourage a group discussion.
If your parents see that all of you feel the same, they may be more open to speaking freely and considering your advice. If that's not possible, at least talk to your siblings about your parents' situation. Of course, if you have a sibling who is particularly good at rubbing your parents the wrong way, then perhaps you will want to exclude him or her from the discussion.
Be direct
Sometimes, the best approach is to put all your cards on the table from the get-go. If this is an option for you, find the right time and place, then just say, "Mom and Dad, we need to talk..."
The "I have a friend" approach
If a more subtle method is to your liking, you might describe an experience (real or hypothetical) that illustrates the consequences of not being adequately insured. For example, you could say something like: "Joe's father went into a nursing home a few years ago. His father didn't have long-term care insurance, so now Joe has to sell his father's house."
Discuss your own plans
Another indirect strategy is to talk about your own insurance needs or plans. Once the discussion is under way, you can steer the subject in the direction of your parents' insurance needs.
Ask for their advice
Parents are used to giving advice to their kids, not getting it from them. Start by asking them what they think you should do about a particular insurance issue. For example, you might ask if they think you should increase your life insurance now that a grandchild has been born, or drop the collision coverage on your 10-year-old car. From there, you can divert the topic to their own insurance needs.
Ask a simple question
Another "lead-in" approach involves asking a seemingly innocent question, such as: "Who is your insurance agent?" or "do you keep your insurance policies in case of an emergency?" Whatever answer your parents give will be an opening for you to ask other questions that are on your mind.
Bring in the big guns
Perhaps not during the first discussion, but at some point in time you may want to make an appointment with your (or your parents') insurance agent for an evaluation of your parents' insurance situation and needs.
Be patient
Realize that this process takes time. Your parents may need to think things over, and it may take several discussion sessions to work out all the details.
Follow your parents' wishes
Finally, remember that just because your parents have agreed to let you help doesn't mean that you can take charge and do things your own way. You should act only when and how your parents want you to.
Issues to talk about
Once you have succe
ssfully begun a dialog with your parents about insurance, make sure you cover all the pertinent issues. Here are some you should not miss:
. What policies do they currently have?
. Do they have policies they no longer need?
. Do they need policies they don't have?
. What are the details of their current policies?
. Do their current policies provide adequate coverage? Too much coverage?
. How much can they afford to pay for premiums?
. If there are beneficiaries, are the proper persons named? Have the proper designation forms been completed?
. Who should be responsible for paying the premiums, you or your parents?
. Where are the policies kept?
. Who is their insurance agent?
Monday, 1 September 2008
Top 10 Things to Know About Life Insurance
We all recognize the importance of life insurance. After all, we want to make sure that our loved ones are taken care of when we die. But before you run out and purchase a policy, do some research ahead of time. That way, you'll be sure to get the best possible coverage at the right price. Here are some helpful tips to get you started:
1. Shop around
2. Never buy more coverage than you need
3. The healthier you are, the better the rates
4. Buy sooner rather than later
5. Realize the importance of periodically reviewing your coverage
6. You don't necessarily have to pay a commission
7. You may be paying more for monthly premium payments
8. Don't rely solely on the life insurance offered by your employer
9. Tell the whole truth and nothing but the truth
10. Buying more is sometimes cheaper
Shop around
When it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. Try out one of the many insurance websites that can provide you with instant quotes. Make sure the website you shop from takes into
consideration the factors in your medical history that can affect the premiums.
Never buy more coverage than you need
The key to purchasing the right amount of life insurance is to have just enough coverage to meet your needs. If you have more life insurance than you need, you'll be paying unnecessarily for higher premiums. On the other hand, it's important not to have too little coverage, resulting in you being underinsured.
The healthier you are, the better the rates
It's true – healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., if you smoke, take medications regularly, are overweight, have a bad driving record).
Buy sooner rather than later
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be.
Realize the importance of periodically reviewing your coverage
Any life change signals the need for a review of your overall financial plan. When it comes to life insurance coverage, you'll want to make sure that this major life event (e.g., birth of a child, children are grown) won't leave you underinsured or overinsured.
You don't necessarily have to pay a commission
One of the reasons for higher premiums is that most life insurance policies pay commissions to the agent/broker. However, you may be able to purchase a no-load policy through an insurer that sells no-load policies directly to consumers.
You may be paying more for monthly premium payments
You may not realize it, but you may be paying more for your life insurance if you pay your premium in monthly installments. Many insurance companies charge extra fees if you make monthly premium payments instead of paying the annual premium.
Don't rely solely on the life insurance offered by your employer
Many employers offer their employees some sort of group life insurance. But this amount of coverage is usually not enough to adequately meet your life insurance needs. In addition, group life insurance policies are not portable, meaning that if you leave your job, you can't take your life insurance coverage with you.
Tell the whole truth and nothing but the truth
If you're thinking about lying on your insurance application, think again. If your insurance company finds out that you lied about a health-related condition or your lifestyle (e.g., smoking habit), they may be able to terminate your coverage.
Buying more is sometimes cheaper
Life insurance usually costs less per thousand dollars once you get into higher coverage amounts (e.g., $250,000). If the numbers work out, you may be able to pay a lower premium while increasing your coverage.
We all recognize the importance of life insurance. After all, we want to make sure that our loved ones are taken care of when we die. But before you run out and purchase a policy, do some research ahead of time. That way, you'll be sure to get the best possible coverage at the right price. Here are some helpful tips to get you started:
1. Shop around
2. Never buy more coverage than you need
3. The healthier you are, the better the rates
4. Buy sooner rather than later
5. Realize the importance of periodically reviewing your coverage
6. You don't necessarily have to pay a commission
7. You may be paying more for monthly premium payments
8. Don't rely solely on the life insurance offered by your employer
9. Tell the whole truth and nothing but the truth
10. Buying more is sometimes cheaper
Shop around
When it comes to life insurance, it pays to shop around because premiums can vary widely. And thanks to the Internet, it's now easier than ever. Try out one of the many insurance websites that can provide you with instant quotes. Make sure the website you shop from takes into
consideration the factors in your medical history that can affect the premiums.
Never buy more coverage than you need
The key to purchasing the right amount of life insurance is to have just enough coverage to meet your needs. If you have more life insurance than you need, you'll be paying unnecessarily for higher premiums. On the other hand, it's important not to have too little coverage, resulting in you being underinsured.
The healthier you are, the better the rates
It's true – healthy people get better rates on life insurance. You will be asked to pay a higher rate for anything that shortens your life expectancy (e.g., if you smoke, take medications regularly, are overweight, have a bad driving record).
Buy sooner rather than later
If you've been putting off purchasing life insurance because you don't want to pay the premiums, you may be doing yourself a disservice in the long run. The younger you are when you purchase life insurance, the lower your premiums will be.
Realize the importance of periodically reviewing your coverage
Any life change signals the need for a review of your overall financial plan. When it comes to life insurance coverage, you'll want to make sure that this major life event (e.g., birth of a child, children are grown) won't leave you underinsured or overinsured.
You don't necessarily have to pay a commission
One of the reasons for higher premiums is that most life insurance policies pay commissions to the agent/broker. However, you may be able to purchase a no-load policy through an insurer that sells no-load policies directly to consumers.
You may be paying more for monthly premium payments
You may not realize it, but you may be paying more for your life insurance if you pay your premium in monthly installments. Many insurance companies charge extra fees if you make monthly premium payments instead of paying the annual premium.
Don't rely solely on the life insurance offered by your employer
Many employers offer their employees some sort of group life insurance. But this amount of coverage is usually not enough to adequately meet your life insurance needs. In addition, group life insurance policies are not portable, meaning that if you leave your job, you can't take your life insurance coverage with you.
Tell the whole truth and nothing but the truth
If you're thinking about lying on your insurance application, think again. If your insurance company finds out that you lied about a health-related condition or your lifestyle (e.g., smoking habit), they may be able to terminate your coverage.
Buying more is sometimes cheaper
Life insurance usually costs less per thousand dollars once you get into higher coverage amounts (e.g., $250,000). If the numbers work out, you may be able to pay a lower premium while increasing your coverage.
Love, Marriage, and Insurance
Marriage can be one of the most significant events and times in a person's life, and just as important as it is to love and cherish your spouse, it's equally important to be sure you have enough insurance coverage so that you are both taken care of. That is why it's important to review your life, homeowners and car insurance coverage and see if any adjustments can be made to help you out financially in your new married life.
Life Insurance
Life insurance should be the first thing you consider or review when you become married. Life insurance helps your spouse financially in the event of your death by covering debts you may have incurred, and is equally important to have if you are considering having children or even buying a new home.
Health Insurance
Combining health insurances is another thing that you may want to take a peek at once you are married. If you have a good employer-sponsored health insurance plan, it may be more cost effective to move your spouse over to your plan. Then of course, your spouse may have a better plan than you, and you may need to switch to theirs. It's most important to review the features and benefits of both health insurance plans and compare them to see which will work best for you and your spouse.
Additional Coverage
When it comes to married couples' valuables, it is very important to be sure you have adequate coverage in the event something happens to your engagement or wedding rings. It's important to note that homeowners insurance and renter's insurance, though they do protect the physical structure of your home and its possessions, they don't always cover jewelry. Your homeowners insurance agent or insurance company, will be able to determine what kind of insurance coverage is best for your valuables, and may determine if a rider is needed on your homeowners policy to cover your valuables, such as jewelry.
Car Insurance
It's important to inform your auto insurance company or agent that you are married, because many auto insurance companies offer discounted rates for couples who have "tied the knot". Also, check to see if they offer any other discounts, such as multi-car or multi-policy-who knows, you may be able to save more than you thought!
If you are interested in getting a life insurance, homeowners insurance or car insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life, homeowners and car insurance coverage for you and your spouse.
Marriage can be one of the most significant events and times in a person's life, and just as important as it is to love and cherish your spouse, it's equally important to be sure you have enough insurance coverage so that you are both taken care of. That is why it's important to review your life, homeowners and car insurance coverage and see if any adjustments can be made to help you out financially in your new married life.
Life Insurance
Life insurance should be the first thing you consider or review when you become married. Life insurance helps your spouse financially in the event of your death by covering debts you may have incurred, and is equally important to have if you are considering having children or even buying a new home.
Health Insurance
Combining health insurances is another thing that you may want to take a peek at once you are married. If you have a good employer-sponsored health insurance plan, it may be more cost effective to move your spouse over to your plan. Then of course, your spouse may have a better plan than you, and you may need to switch to theirs. It's most important to review the features and benefits of both health insurance plans and compare them to see which will work best for you and your spouse.
Additional Coverage
When it comes to married couples' valuables, it is very important to be sure you have adequate coverage in the event something happens to your engagement or wedding rings. It's important to note that homeowners insurance and renter's insurance, though they do protect the physical structure of your home and its possessions, they don't always cover jewelry. Your homeowners insurance agent or insurance company, will be able to determine what kind of insurance coverage is best for your valuables, and may determine if a rider is needed on your homeowners policy to cover your valuables, such as jewelry.
Car Insurance
It's important to inform your auto insurance company or agent that you are married, because many auto insurance companies offer discounted rates for couples who have "tied the knot". Also, check to see if they offer any other discounts, such as multi-car or multi-policy-who knows, you may be able to save more than you thought!
If you are interested in getting a life insurance, homeowners insurance or car insurance quote, log on to Insurance.com. Here you will be able to evaluate multiple rates from best-in-class life insurance providers - helping you find the best life, homeowners and car insurance coverage for you and your spouse.
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