5 Things Never to Say to Your Insurers

5 Things Never to Say to Your Insurers

Some words are red flags to insurers and using them could mean that your claim might be delayed or even denied.

1. "I Think ..."

Never begin a statement regarding a claim with these words. If you aren't sure, don't guess. What you say could cause your claim to be delayed or denied, says attorney Vedica Puri. And if you're wrong -- say, you report driving at 30 miles per hour before an accident but police later prove you were going 50 -- it could hurt your credibility.

Particularly beware of speculating on blame or causation. For example, if you suggest that a water leak is due to a construction defect, you could give the insurer an out if that's a policy exclusion.

Stick to the facts. Should the insurance rep ask you a question you can't answer, simply say, "I don't know." If the person is taking a written or recorded statement, ask for a transcript to review for misstatements.

2. "I Got Whiplash"

Fraud costs auto insurers up to $6.8 billion a year, reports the Insurance Research Council. And suing for damages caused by whiplash is a fraudster favorite ("Oh, my neck!"). Merely mentioning the term is likely to get your claim flagged for further investigation, says Amy Danise of Insure.com.

Whiplash is a specific diagnosis. If a doctor says that you have it, then you should report it as such. Other wise, if you feel neck pain, just refer to it that way.

3. "It's an Experimental Treatment"

Truly experimental or investigational medical procedures are typically not eligible for health insurance coverage. So if a doctor tells you he wants to experiment with a treatment, don't represent it using those words. "In medical terms it may not actually be experimental or investigational," explains Danise. "If it's proven effective, your doctor deems it medically necessary, and it's not an exclusion, it should be covered." Verify with your doctor that it meets the above litmus tests before going to the insurer.

4. "My Basement Flooded"

With homeowners insurance, "flood" is a red flag. "The word refers to an act of weather or an overflow from a nearby body of water," says Danise. "And a standard homeowners policy doesn't cover it. You'd need flood insurance."

So don't use the f-word if your basement is knee-deep in water because of a burst pipe. Damages from such an incident should be covered by a homeowners policy. But calling it a "flood" could muddy the waters, so to speak.

5. "Just Send Me a Check"

When filing a home or auto claim, don't emphasize that you're just looking for the cash.

"If you were to say, 'I don't care about the roof leak, I just need the money,' that admission could slow things to a halt," says Puri. Technically, you're supposed to use the payout to make the repair for which you filed. While it's true that most insurance companies aren't going to check up on you, you'll certainly raise the fraud unit's suspicions if you imply that you won't. And then you might lose out on the money altogether.

Buying Life Insurance For The First Time

Buying Life Insurance For The First Time

When one purchase insurance, it means that you are buying something that you would never use it, but in case you need to file an insurance claim, you would come to know how important it is to have right type of coverage. Follow the below given tips in case you are a first time buyer for life insurance.

It is a remarkable fact that people who is actually healthy get best rates on life insurance. You would be asked to pay a superior rate of anything that lessen your life expectancy for example, if you have smoking habit, or if you are overweight, or may be bad in driving.

The life insurance company would certainly ask you about your health check history and might desire you to take some kind of medical you as well test for. While filling up the health advice form you need to be true to them, in case you lie the company would find out and your life insurance policy would be surely canceled. And if in case your sick and were to die and then the life insurance company found out you lied earlier, if, for instance, you said you were a non-smoker but ended up dying of lung cancer from a smoking habit, they would then certainly deny the death benefits.

No matter what type of insurance you're purchasing, the course is fundamentally the same. Once you've determined what type of insurance and as well how much coverage you require, you could start contacting insurance companies online, straight by phone, or even through an insurance broker or agent to get quotes. Get quotes from numerous diverse insurers because premium cost could surely vary widely.

An insurance policy may cost less because it offers less, or dissimilar, features and benefits. And make certain the company you've settled on is highly regarded, with high-quality customer service and also claims-paying ability. All insurance companies are rated by chief rating agencies (e.g. Standard & Poor's, Moody's, A.M. Best) on their available capability to pay claims. You could also access these ratings online, by way of public libraries, or through insurance company literature.

An insurance policy is a legal contract that may be loaded with technical terms that are hard to understand. But read it anyway before you sign on the dotted line to find out about the coverage you're buying. A life insurance policy is a lawful deal, which might be loaded with technical terms that are hard to understand, but you need to read it anyways before you sign on dotted line to find out about the premium and coverage you are buying. For instance, the policy would tell you:

Who is covered?

What coverage eliminations and limitations apply?

When coverage starts and ends

How much coverage is actually provided to you?

How much you would pay for insurance coverage

How you report a loss and to file a claim

The most excellent key for purchasing right amount of life insurance is just to have sufficient coverage policy which meets your need. In case if it carry more life insurance than what you really required; you'll land up paying unwanted for higher premiums. On the other hand it is also significant not to have too little coverage, which might result in you being underinsured.

If you've been putting off for buying life insurance because you don't want to pay the premiums, you might be doing yourself damage in the long run. The younger you are when you buy life insurance coverage, the lower your premiums would pay. Make your life insurance policies work for you by taking the time to occasionally review your needs and coverages.

Health Care Surgical Costs

room and board (1.3 billion per year) $500 administration (347 million per year) $1050 pharmaceutical (728 million per year) $500 medical equipment lease costs (347 million per year) $2000 tests (1.3 billion per year) $750 nurse care (520 million in nurse care per year) $4000 5 hours (2.7 billion in surgeon care per year) The avg cost for a family health insurance policy over $10000 per year The avg cost for single payer health insurance policy over $4900 per year. Avg monthly cost per ...

Insuring Home

Insuring Home-Improvement Success

When you're planning to spend thousands of dollars on home improvements, the last thing you want is for your investment to go down the drain. For that reason, it's crucial to make sure you've taken all the necessary steps to insure your project before you begin.

Step one: Contact your insurer

Major renovations can leave your home exposed, physically and financially. Those brand new French doors could be stolen before they can be installed. Major roof work might leave your home exposed to the elements, some of which might not be covered under a regular homeowners policy.

In such cases, adjust insurance coverage temporarily. "During construction, there may be some kind of insurance rider just in case there's an accident or something that protects you in addition to your insurance coverage," says David Lupberger, a home-improvement expert for ServiceMagic, a company that matches contractors with homeowners. Talk to your insurance agent about what you're planning to do, and he or she can guide you through short-term coverage options.

Step two: Find an insured contractor

When hiring a contractor, check to see if that person is properly insured. "Make sure they have workman's compensation for their employees and have general liability insurance for the company," says Lupberger. "What that means is that when a professional contractor is working on your house, if a worker is injured, you're not liable. If the contractor damages something, destroys something or burns your house down, you're protected."

Likewise, if something happens to the contractor's tools or equipment while the project is being completed, his insurance will pick up those costs as well. Uninsured contractors may charge you less for the job, but you'll pay the price if something goes wrong during the renovations. And even if a contractor tells you he's insured, don't just take his word for it. "Have the contractor show you a certificate of insurance," Lupberger says.

What if you decide to do the project yourself? "In that case you don't so much have a liability or a third-party liability issue," says Richard Standring, program manager for risk management advisory services for Fireman's Fund Insurance Company. As a result, there's no need for workman's compensation or general liability insurance. But, depending upon the scope of the project, your insurance agent may suggest that you hire a professional instead. "We would never recommend that a policyholder go out and do any type of work that would require a license, especially around an electrical or plumbing system," says Standring. Also, if you damage your property in the process and your insurance provider determines that your negligence caused the mishap, it might not pay the claim.

Step three: Get building permits

Some jobs require building permits, particularly if the structure of your home will be changed. In these instances, work must adhere to building codes. Your city or county government can tell you if your project is under this category. If so, have the contractor apply for the permits. Once the job is done, a building inspector will inspect the work, says Carolyn Gorman, a vice president with the Insurance Information Institute.

If the work fails the inspection, the contractor is liable and has to make adjustments. Incompetent builders can have a tremendous effect on your home's coverage. If you add a room to your home and it does not meet building codes, your insurer could refuse to cover it.

Step four: Estimate the project's worth

Every home improvement project need not warrant a change to your home insurance policy. If you buy a new refrigerator, change one or two appliances or upgrade one of the bathrooms, there's probably no need to make revisions. "But any time you're investing more than $25,000 back into the value of your home, your insurance company should really be on notice of that change," says Standring. If unsure, err on the side of caution and check with your agent anyway.

Step five: Review your policy

Once the project is complete, your insurer can help you determine how much value the work has added. This information is crucial: You want the homeowners policy to reflect the new, upgraded value of your home. Say your home is insured for $200,000. Add an expensive addition but fail to revise the policy, and it's like the work didn't happen. If your house burns down, what proof do you have of any improvement work?

"When it's time to rebuild, your insurer is not going to give you any more than $200,000 because that is the policy limit," says Gorman. There is an exception to this rule. If you have an extended replacement cost policy, it pays a certain percentage -- generally 20 percent to 25 percent -- over the limit to rebuild your house. While such a policy would cover minor renovations, you will no longer be adequately covered if you increase the value of your home by more than 25 percent through the improvements you've made

Long-Term Care Insurance

Long-term care financing and planning takes some thought and education to put together a policy that is best for you and your financial situation. It is easy to get confused and become paralyzed into "inaction." Here are some key points of what to do or not do.

Purchasing Too Much Coverage:

It is important to get some type of long-term care insurance without over insuring. Look at your finances and determine how much you can comfortably afford to pay for long-term care and co-insure with your long-term care insurance policy. Purchasing long-term care insurance can be compared to buying an auto. A Ford will get you to the same place as a Mercedes, but it will cost you much less. Having some long-term care insurance is better than not having any long- term care insurance.

Waiting Too Long:

You will not save money by waiting to purchase long-term care insurance at a later date. The cost for you today is less expensive than it will ever be. As you get older, the rates go up.

Inflation Protection:

You need to seriously consider 5% Compound Inflation Protection, especially if you are under 70 years of age. It costs more, but it adds all the value to your long-term care insurance policy.

A Sound Long-Term Care Plan:

It is necessary to learn what your options are in the event that long-term care is needed. Do you have the assets to cover the expenses and still live the lifestyle you desire? Where do you want to receive care? How quickly can you liquidate your assets? Will you lose money if you liquidate? What are the tax consequences? Do we have enough income to live on?

Impact on Family:

How will a long-term care event affect your family? What happens when a spouse needs care? Will this affect the work of the other spouse? Is the family capable of providing the necessary care? Can the children help? How will this affect their work and family?

Medicare:

Many think that Medicare will cover all of the costs of long-term care. This is not true. It covers some very limited costs that meet Medicare's criteria.

Comparable and Competitive Quotes:

Some companies are more competitive in relation to age or health status. Long-term care insurance quotes should be compared from at least three of the top companies. Different companies have unique "sweet spots" depending upon age, marital/partner status and health

Long-Term Care Insurance Specialist:

Consult with a Long-Term Care insurance Specialist, an independent agent that stays informed of new plans that come into the marketplace. A long-term care specialist can easily help you compare the different plans getting them closer to an "apples to apples" comparison.

Shopping by Price:

Getting the lowest price for a long-term care insurance policy is not the way to plan. The cheapest price may or may not have the options that you will need when you are ready to use your plan.

Top Carriers:

When getting long-term care insurance quotes from three different companies, it is important to check the financial ratings of the company. You should look for companies with at least A ratings.

Long-Term Care Costs:

You need to be informed of the real cost of long-term care (home care, assisted living, nursing facilities) in your area. If you live in an expensive State, you will need to adjust your long-term care insurance benefits according to what the costs are in your area. If you are planning to retire to a less expensive area, then that should also be taken into consideration. Different considerations should be taken if you are planning on living overseas.

A Long-Term Care insurance specialist who represents the top companies can help develop an unbiased plan that is unique to you and your situation.

Terms to Know Before Leasing A Vehicle

So, you've decided that you want to lease that next vehicle. Can't really blame you. With today's incentives, rebates, and favourable lease rates why wouldn't you. Not only do you get to drive a new car, but a new car that you wouldn't otherwise be able to afford if you were to purchase and finance it. Buyer beware though. With leasing comes new and sometimes rather confusing vocabulary. Don't get lost in a sea of leasing jargon. Protect yourself. Learn and understand the industry language. For those seriously thinking of leasing that next vehicle, here is a useful glossary of "new" terminology that you should familiarize yourself with BEFORE you negotiate a lease:

Acquisition Fee: An administrative charge levied by the leasing company for processing a lease. This fee is typically NOT negotiable and can have a significant bearing on the overall cost of the lease.

Base Interest Rate: This is the cost of leasing and using a vehicle and is measured by the interest paid over the lease term.

Buy at end-of-term interest rate: This is the net interest rate for the lease if the lessee, at the end of the lease term, purchases the vehicle at the end-of-lease purchase price.

Capitalized Cost: This is the total purchase price of the vehicle. The price includes the cost of all extras such as vehicle options, extended warranties, life insurance, and rustproofing. The capitalized cost equals the amount you would pay for the vehicle if the vehicle were being purchased.

Capitalized Cost Reduction: A capital cost reduction is a down payment, in the form of cash or trade-in, that is applied to the final purchase price of the vehicle reducing the monthly lease payment.

Closed End Lease: Leases in which the lessee's financial obligation rests only with the negotiated monthly lease payment. Since the residual value of the vehicle is stated in the lease contract, the lessee is not financially responsible if the actual value of the vehicle is less than the stated residual value. The lessee need only return the vehicle at the end of the lease term with no further obligation.

Dealer Participation: A rebate or discount, contributed by the dealer, reducing the final purchase price of the vehicle.

Depreciation: The decrease in value of a vehicle over time. Depreciation in automobile leasing is the difference in value between the cost of a new vehicle and the value of the vehicle at the end of the lease term.

Disposition Fee: A fee charged by the lessor at the end of a lease to ready the car for sale. The lessor may apply this fee against the deposit made by the lessee at the beginning of the lease term.

Down Payment: A sum of money paid at the beginning of a lease contract, usually at the time of signing, that is applied to the final purchase price. In leasing, the down payment is referred to as the capitalized cost reduction. Typically, the larger the down payment, the smaller the lease payment.

Early Termination Fee: A penalty paid by the lessee for terminating a lease contract early. A lessee pays for the depreciation of a vehicle in equal monthly payments. Since a vehicle's depreciation is highest in the first months of a lease, terminating a lease early results in the lessee using more of the vehicle's value than what they've paid for subjecting the lessee to penalty.

End-of-Lease Purchase Price: Also known as the residual value. This is the price at which the lessee may purchase the vehicle at the end of the lease term.

Excess Wear & Tear: Wear and tear beyond what is deemed acceptable by the leasing company. It is the responsibility of the lessee to take reasonable care of the car and to ensure it is returned at the end of the lease term in good condition. Bald tires, body dents, and engine trouble due to neglect could subject the lessee to repair and replacement charges.

Gap Insurance: The name given to a type of insurance coverage that covers the difference between the actual cash value of the leased vehicle and what is still owed on the lease contract. If a leased vehicle is destroyed in an accident or stolen, gap insurance coverage protects the lessee against additional losses due to "gaps " between the insurance settlement and the lessee's financial obligations set out in the lease contract.

Independent Lessor: These are non-traditional lessors, usually an individual business, that can structure and write a lease for most makes and models of vehicles. The terms and conditions of the lease agreement can be customized to accommodate different lease and mileage conditions.

Lease Extension: This is the continuation of a lease, beyond the original lease contract. Payments are continued on a month-by-month basis at the same sum negotiated at the beginning of the lease term.

Lease Term: This is the length of the lease contract. Most vehicles can be leased for 12, 24, 36, 48, and 60 month lease terms. The monthly payment of a lease will vary depending on the length of the lease term.

Lessee: Name assigned to a person or party who signs a lease and agrees to assume responsibility for a vehicle and the lease payments.

Lessor: Name assigned to a person or party that owns the vehicle and agrees to lease it to the lessee.

Mileage Allowance: Lease agreements establish a maximum mileage allowance that the car may be driven over the life of the lease. The agreement will also specify the cost per mile or kilometer the car is driven over and above the allowance that is due and payable at the end of the lease term.

Money Factor: This is a number used to calculate the base interest rate of a lease. To arrive at a base interest rate, leasing companies will multiply a money factor by 2400. The money factor of a lease is known by the leasing and sales consultant at the dealership and is used to calculate the cost of money in the same fashion as an interest rate does. The lower the money factor, the lower the monthly lease payments.

Monthly Payment: A payment made on a specified date each and every month as specified in the lease contract. Monthly lease payments calculated on a lease contract typically include all applicable taxes.

Net Interest Rate: This is the total interest rate for a lease and represents the true cost of the lease. The lower the net interest rate, the lower the cost of the lease.

Open-End Lease: Leases in which the lessee's financial obligation may exceed the negotiated monthly lease payment. In an open-end lease the residual value is set at the beginning of the lease term. The lessee is financially responsible if the actual value of the vehicle is less than the stated residual value.

Purchase Option: Option extended to the lessee, at the end of a lease contract, to purchase the vehicle at the pre-determined purchase price. The pre-determined purchase price is normally the stated residual value in the lease contract.

Residual Penalty: This is the penalty a lessee pays if the end-of-lease purchase price is greater than the expected value of the vehicle at the end of the lease term.

Residual Value: This is the expected or pre-determined value of a leased vehicle at the end of the lease contract. The stated residual value on a lease contract is normally the buyout price at the end of a lease term. The residual value also determines whether the lessee should purchase the vehicle at the end of the lease term. If the residual value is less than the actual market value it would be advantageous for the lessee to buy the vehicle and sell it to a third party.

Security Deposit: This is a sum of money, paid up front, as security for excess wear and tear on the leased vehicle. The amount is refunded if the vehicle is returned in good condition. In some cases, the deposit may be applied against the final monthly payment.

Good luck and happy negotiating!

Explain this to your allowance agency

A sleeping woman is awaken by the honk from a Mercedes when the women hits the car the airbag systems blows into the mans face