Health Insurance Policy Terms

Cutting Health Insurance Costs

Health insurance is very important to own but can also be very costly. Health insurance costs are estimated to rise about 8% this year and even possibly more in the future. But there is hope to fight these rising costs. One approach is to further your education in health care. By learning the basics you can care or prevent illnesses from becoming severe and having the consequence of complications. Other ways is having your company keep an eye out for those more vulnerable to health risks. This includes those who are overweight and/or smoke. Also by taking prevention measures such as taking a flu shot, you can avoid future ailments. The other way to avoid high health insurance costs is by taking generic drugs instead of brand name drugs. Brand name drugs may look more attractive but generic drugs work just as well and saves. This could help cut medicine cost as much as 50%. Some generics can save 80% on cost. Another option is to open a health savings account. These accounts can be tax deductible when combined with a high-deductible insurance policy. These suggestions can help reduce health insurance costs both for you as the employee and you as the employer.

Health Insurance tips when you lose your job

When people lose job, they starts to cut any expense that are not necessary. However, experts say keeping health insurance is essential. Most experts suggest to extend COBRA. COBRA stands for the Consolidated Omnibus Budget Reconciliation Act which was passed by Congress in 1986. COBRA allows people who have lost job recently to keep their former employer’s health benefits for up to 18 months. To extend the policy, people must contact their old employer and sign up for COBRA within 60 days after layoff. However, COBRA is quite expensive for unemployed people. It is because employers pay health coverage for active workers, while COBRA participants have to pay the full premium themselves. More specifically, employers, generally, run for one’s COBRA program with charging the full cost of premium plus a 2% administrative fee. However, COBRA payment is usually less expensive than individual health coverage.

Experts advise more tips for when people lose their jobs. The easiest and cheapest way to acquire health coverage is through working spouse. Most companies offer “emergency inclusion” allowances for when employees’ spouses lose their jobs. People may consider a high-deductible plan to cover minimum health care need such as doctor visits, prescription drugs, and check-ups for your kids. And also, people can acquire short-term health care coverage only if they expect to be back in the workforce within six months to a year. Getting group plans through church, social club, any professional service, or veterans’ organizations or acquiring State Children’s Health Insurance Program (SCHIP) for children and applying for cheaper coverage for parents through SCHIP is other options as well.

How To Choose the Right Health Insurance

Health insurance is important in our life, most people choose to put it behind. However, better dealing with this issue will make your life easier. Here are some tips in choosing a health insurance.

Location: Insurance plans vary by states, and the prices will be different accordingly. Take New York for example, has some of the most expensive individual plans in the country, largely due to its guaranteed-issue policy that requires companies to insure everyone, regardless of health. If there are not too many differences between the health insurance in different places, it is wise to pick up the package that cost you less.

Don't be afraid to use a broker: An insurance broker can be a huge help. He can do the legwork to find a well-suited insurance company, help shop for the best rates, and explain the ins and outs of your plan. So, do not hesitate to find someone professional to help you out of picking the right and economic health insurance package.

Ask for a "free look" : A free book means that you can get your money back if you're unsatisfied within a set period of time. The key here, though, is staying on top of things and making sure you follow the guidelines. Restrictions vary by company and plan, but you could have anywhere from one to six weeks to ask for a refund — probably in writing. So ask for any free book that consist of various kinds of tips and suggestions, and getting yourself ready to know more about the policy just in case there is some emergencies.

Myths About Health Insurances

When it comes to purchasing health insurance, individuals do not investigate the various options that are available on the market. In fact, young adults tend to ignore this process, and have emerged as one of the largest group to be uninsured. To discourage any fears, here are the three myths about health insurances.

Myth #1: Health insurance is expensive if you purchase it by yourself- If you know the type of coverage you need, you can choose an affordable plans that cover those medical needs.

Myth #2: It is better to purchase your employer-sponsored health insurance- As the cost of employer-sponsored health insurance continues to increase, employees are paying more for the coverage. This type of insurance is great for individual with chronic medical conditions, but it is not economically friendly for those who are healthy and rarely goes to the doctor.

Myth #3: I have a job so I can pay for my medical debt over time- This mindset by young adult is simply false. When you get sick, you would be unable to work for a period of time, thus reducing your income. Even when you are able to get back to work, the amount of debt will hinder your finances for a long time.

Health Insurance: Requirement for College Enrollment

Full-time students are required to pay a health fee regardless of whether or not the student already has health insurance. However, this does not mean that students should go ahead and cancel their preexisting policy. The assumption that the university’s or any universities’ across the country provide health services that are comparable to that of common health care insurance is false. The two are drastically different. Take for example the services offered by the health fee at SU, some of which include office visits, ambulance services, counseling center services, nutrition counseling, etc., but these are just very minor overages. Therefore, it is recommended for students to continue to have outside health care insurance in the case they need to go to a local hospital for more intensive treatments. Although insurance is costly, students can look for coverage under the same plan as his/her family. Typically this will save the student more money than if he/she were to look for independent/individual coverage. It is important to consider this options as student under the age of 23 can benefit from the savings under family health care insurance plans.

However, for those who are looking for coverage as an independent, here are some things to consider:
1. If you're covered on a parent's policy, try to continue this coverage if possible.
2. Seek coverage through your employer.
3. Find out if your college or university offers a more comprehensive student health plan. Colleges maybe be able to offer plans at a cheaper rate due to student status.
4. Locate other group coverage.
5. Determine whether you qualify for Medicaid.
6. Buy an individual policy from a private carrier.
7. Apply for coverage through the Health Insurance Risk Pool offered by your state.
8. Find low-cost health services in your area.

How Any Family can Afford Quality Health Insurance

The economy is causing many Americans to reevaluate their budgets. Even though you are trying to cut back on your monthly expenses, there may be areas you have overlooked. One place you might consider examining is your health insurance plan.

“Your health insurance plan is the first place you should look if you want to save money long term," says executive Bruce Telkamp. “Check to see if you're paying for benefits you don't use or if you can afford a higher deductible. You can save a lot of money by shopping around for a health plan that better suits your needs and budget.”

Here are a few tips that can help you make the most of your health insurance dollars:

Combat rising health care costs at work
Is your company increasing your health plan costs or even discontinuing its health care coverage to cope with the current economy? Health insurance costs topped the worries of small business owners in a new survey by the National Federation of Independent Business and Wells Fargo. Individually purchased health insurance plans might offer the coverage you need with a lower monthly premium. Check online or with a local health insurance agent.

Analyze the benefits you regularly use
Your health plan could have you paying for benefits you’ll never use. For example, do you rarely need prescriptions but have prescription drug coverage? Or are you a single male with a plan that has maternity coverage? If you find you rarely or never use certain benefits, consider switching to a health plan that better fits your medical needs. Your monthly premium could go down, too.

Worthwhile coverage when between jobs
COBRA is coverage offered to employees leaving their company or to dependents coming off their parents’ plan. COBRA is often expensive, but if you have pre-existing conditions, it may be a good choice. If COBRA doesn’t fit into your budget, look into short-term health plans. While these plans don’t cover doctor’s visits or prescriptions, they will keep you covered in case of a catastrophic event for 6 months to 1 year. Short-term plans usually cost less than typical health plans and you can be approved in as little as 48 hours.

Know all your options
Consumers can find a number of online resources designed to explain their health insurance options. Web sites like eHealthInsurance.com help users learn more about their choices, find the plans best suited to their needs, and apply for coverage quickly and easily.

Tips for Saving money on your Life Insurance

In the depressed economy, is it possible still save money on your life insurance? The answer is yes! You can still save money by getting the insurance you need at a lower cost. Following are some tips for the things you may want to do in order to save money on your life insurance.

1) Buy term life insurance: Term life insurance is much less expensive than the permanent life insurance. Because the whole life insurance charge higher premiums for lifelong benefits.

2) Comparison companies: The competitive insurance industry brings a lot of benefits to the consumers. So before you purchase your insurance, make sure you got several quotes from different companies and get the lowest rates.

3) Get healthier: The insurance rate is based on several factors, such as age, gender and health condition. So if your body is in good shape, it actually going to save you money on the premium.

4) Pay premium on annually base: It’s cheaper to pay your insurance premium every year instead of quarterly or monthly.

5) Select your insurance coverage carefully: If you calculated that you need a large amount of coverage, it’s quite possible to win a discount from the insurance companies by asking them to do so. So never feel hesitate to ask.

Life Insurance vs. Whole Life Insurance

There are two main forms of life insurance that people may have to choose between. These two types include term life insurance and whole life insurance, and, for the most part, people have no idea which type of life insurance is best for them.

With term life insurance, you are only covered for the life of the policy, while you are still paying the premiums, of course. Basically, this is the policy that makes the most sense for the majority of people out there, especially the couples that have kids. A life insurance policy is only intended to help the ones that have others dependent upon the life insurance holder. You do not want to continue paying premiums on your life insurance once your kids are no longer considered dependents.

With whole life insurance, on the other hand, the life insurance policy is designed to cover you for your entire life. It combines a term policy with an investment component, which could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against, which is why the premiums generally cost more than what term insurance would cost. As this “accumulation account” grows over time, the cost of your premiums may decrease over time.

Basically, what you need to ask yourself when looking for life insurance, is who you need to insure should anything happen. If you are generally healthy and have older kids, whether you may be single or not, whole life insurance probably is not the best way for you to go.

Some Big mistakes of Buying Term Life Insurance

Focus only on cost is the biggest mistake that most of people make when they buying their term life insurance. Of course, cost is an important factor to consider when we buy insurance. But a lot of people bought the term life insurance they really want, but also the ones they won’t afford to purchase. This may not be the right option.

Secondly, didn’t choose a right settlement options is also a big mistake you might make. There are many options to the term life insurance buyer regarding how the beneficiary will receive the policy proceeds. The most popular one is the lump sum payment, even though in many situations, this may not be the most appropriate solution. But keep in mind, you should always carefully review these settlement options with your agent.

Another big problem is not choosing the right agent. It is very important to choose a licensed agent that understands life insurance contracts and all of the options available within the contracts.

In addition, lack of conversion options also can be a big problem for the insurance buyers. An important option to have in your term life policy is the right to convert to a permanent life policy with the same company without submitting any additional evidence of insurability. This is important because need and wants change. The flexibility should be there to handle these changes.

Purchasing Health Insurance

For most people today, researching and buying health insurance is a very difficult and head spitting problem. It’s easy for the people who don’t need to go out searching for their own health insurance because their companies offer them coverage. However, especially in today’s economy, people have to go out looking for their own health insurance, and they have to do it without any help. For the most part, many people don’t really know what to look for and don’t know what questions to ask when they finally see somebody. According to some experts, there are five crucial questions that one should ask when purchasing health insurance.

1. How much are my premiums and will they change?

It is important to get the price of the premiums in writing and to find out how long you will be charged this particular rate. These quoted rates sometimes don’t last that long.

2. What are my deductibles and co-pays?

Always know what you’re paying for. Even if you meet your deductible, you most likely will still be responsible for a co-pay whenever you see the doctor.

3. Is the insurance company licensed in my state?

4. Am I buying a short-term or a long-term plan?

Be wary of short-term plans. When you go to reapply after a short-term policy, some companies will treat you as a brand new customer. This could be a problem for people who have conditions that overlap different policies.

5. Should I consider going with COBRA?

COBRA is a program that allows you to keep your employer’s insurance if you happen to be laid off or are working much less hours. However, you have to pay the whole premium, which may deter some people.

Always remember, though - if a policy sounds too good to be true, it most likely is.

Something needs to know about Life Insurance

It is never too early to start seeking for a good life insurance for yourself, because having a good life insurance will protect your future and life. And the following are some things that you may want to know about life insurance.

1. Keep your health in good shape: In life insurance, the better your health condition is, the cheaper rate you can get. So stay healthy not only good for yourself, but also good for your wallet.

2. Do more research before sign the contract: One of the greatest things about insurance is there are so many insurance companies out there and competing with each other. This gives consumers more option to select. Take your time to look over the premiums that each insurance company willing to offer you, and choose the best one for your condition.

3. Always read your coverage carefully: It is important to learn your insurance coverage carefully. Typically, you should review your insurance coverage at every beginning of the year or every end of the year. By doing so, you can always match your most latest update information with your insurance coverage to see whether the conditions still work best for you. For instance, if you get married or had a baby, or retired, you may want to switch to other insurance if the current one won’t work out as well as before.

Do I need to pay tax for my life insurance?

Whether life insurance is taxable are many people’s concerns. The basic answer for this question is “NO”, the government cannot tax life insurance. However, it is possible that you will get your insurance states that the policy could lead into a taxable event. So the possibility of paying for life insurance policy is a question that could conceivably be answered in a number of ways.

When funds are received at the end result as originally intended by the policy, when the owner is deceased - the beneficiary will receive the full value of the policy completely duty free. When funds are obtained in the fashion it is not deemed as profiting by the government and therefore the sum, no matter how large or small in not chargeable.

As long as your policy is kept 'live' and active, the cash growth of the procedure is not taxable either. Not all life insurance policies experience enough cash growth beyond the original purchased value for this to be too much of a concern, but for those that do - any growth in cash value experienced over the life of the policy is safe from assessment as long as the procedure remains in good standing.

Life Insurance and Beneficiaries

Life insurance policies are very difficult things to choose to get. For many people, life insurance policies are useless and are not necessary to have. However, if you are a person that does, in fact, need to write up a life insurance policy, there are several things that they need to consider, such as what type of policy. Should you get term or permanent? If you need permanent, then you need to consider among whole, universal, current assumption whole, and variable life insurance. Another thing, which is as important, if not more, to decide is who your beneficiary will be.

The beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured. It’s often easy to pick the “natural choice” as your beneficiary or beneficiaries, which includes your spouse or your children. However, these may not always be the best options. As with your spouse, there is a possibility of divorce, and, if you do not update your policy, then she and possibly a new spouse will reap the benefits. Similarly, with children, depending on the wording, it may be accidentally including or excluding certain people. Probably the safest choice for your beneficiary is your lawyer, if you have one, and draw up a list of how you want the money to be distributed. The lawyer will make sure that your money is handled the way you intended.

It’s always important to remember that the wording is the most important part in the policy. If it is not specific, then, as mentioned before, people may be included or excluded from the policy. By just stating children as beneficiaries, you may be leaving our grandchildren when you intended for them to get some money.

Affordable Health Insurance for Young Adults

Health insurance, if you're young, cash strapped, and healthy, may seem expensive and pointless. It's not. An ankle-twisting fall on a hiking trail, a broken arm in a friendly soccer game, bronchitis that turns into pneumonia—you're potentially talking thousands of dollars in medical expenses. See which of the following eight categories describes you, and check out the experts' recommendations. Our health insurance glossary will help with unfamiliar terms.

You're moving from high school into the workforce.

If your parents are covered through an employer, try to stay on their plan, says Kathleen Stoll, director of health policy at Families USA, a healthcare consumer advocacy group. It'll cost less than getting individual health insurance on your own because most employers pay a large part of the premium of a group plan. More than half the states require insurers to extend parental coverage to adult children below a certain age, typically 25 but as high as 30 in New Jersey. Your state insurance department or the National Conference of State Legislatures can fill you in.

Things Your Homeowners Policy Doesn't Cover

Although the homeowners policy is considered an all-risk policy and will cover you for most losses you incur, there are some exclusions or causes that it won’t cover.

Property Exclusions
Coverage A and B

usions
Coverage A and B

Collapse – The collapse of your house is excluded unless the cause of loss is listed in the additional coverages section of your policy.

Freezing – Freezing of plumbing, heating, or air conditioning systems is excluded if the heat has not been maintained while the building is vacant, unoccupied, or under construction.

Flood – The most important thing to know is that your policy does NOT cover flood. You must purchase a separate policy to cover damage from a flood. Flood has been an excluded peril since 1968 when the government started the National Flood Insurance Program. Even if you don’t live in a designated flood zone, it is important to have flood insurance in the event of hurricanes or heavy rains.

Foundations, Retaining Walls, and Nonbuilding Structures – Loss to these items (including fences, swimming pools, and docks) by freezing, thawing, pressure or weight of water or ice is not covered.

Dwelling under Construction – Theft from a dwelling under construction is excluded. Theft of material is also excluded until the dwelling is finished.

Vandalism and Malicious Mischief – This exclusion only applies if the building has been vacant for more than 30 consecutive days before the loss. (Vacant being empty and unfurnished and unoccupied being a furnished home where the residents are on vacation.)

Mold, Fungus or Wet Rot - Loss caused by Mold, Fungus or Wet Rot is not covered if caused by a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixture or equipment. Please review your individual policy carefully in order to comprehend exactly what is covered.

Risks of Direct Physical Loss Exclusion –The homeowners form insures your property against any loss as long as it isn’t excluded. This section lists some of the other specific causes that aren’t covered. Examples are: wear and tear, smog, birds, rodents, animals owned or kept by an insured, and settling.

Concurrent Causation Exclusions – This section deals with more than one event causing a loss. The policy details how losses are handled when one cause is covered and another isn’t.

Bear market ups need for life insurance

With the unprecedented generational bear market that has wreaked havoc on investors' portfolios, now is a good time to review your life insurance and determine if you have enough coverage.
Remember that you depend on the combination of your investment assets plus your life insurance to make sure your dependents are financially secure should you die prematurely.
How much life insurance do you need? Ask 10 professionals and you'll likely get 10 different answers. If you have people who are dependent on your income for their support, use the following three-step process as a "quick check" of your life insurance needs:

Step 1: If you are the sole income provider, multiply your annual income by 0.80. This results in reducing your income by 20 percent. The reason you do this is because there is one less spender in the household (you!). Note that if both you and your spouse work combine both incomes and multiply by 0.80.
Step 2: Divide your answer in Step 1 by the rate of return you would reasonably expect to earn on the life insurance proceeds once they are invested. Your answer here indicates how much money you will need in order to continue the necessary income stream to your surviving family.

Step 3: Subtract any savings or investments you already have from your answer in Step 2. This is the `ballpark' amount of life insurance you should own. Let's look at an example. Edward and Jean Anderson have two children. Edward earns $100,000 a year and Jean stays home to raise the children. The parents assume that they could earn 6 percent on investments; they have $45,000 in personal investments and $75,000 in their retirement plans.
First, multiply Edward's income times the "one less spender factor" to calculate the adjusted income need ($100,000 x 0.08 = $80,000).
Second, now divide the adjusted income need by your expected rate of return on investments ($80,000 x 0.6 = $1,333,333). This amount of money invested at 6 percent will provide the needed $80,000 per year for Jean and the children.

Finally, subtract the total of all current investments from the total capital needed ($1,333,333 - $120,000 = $1,213,333). If Jean was employed and planned to continue working after Edward's death, you would also subtract her income from your answer in step one.
You would also need to repeat this exercise for Jean to determine how much life insurance is needed on her life. For a non-working spouse, estimate the costs to replace that spouse's services such as nanny and housekeeper and multiply those costs times the number of years the services will be needed.

The answer you get by using this three-step process should only be used as a rule of thumb. Once you have the number, you should personalize the solution to your particular situation.
For example, you may want to increase the amount of insurance to help cover the costs of funding college expenses for your children. If your goal is to provide a lifetime income for your dependents, additional insurance will be needed to offset the ravages of inflation.

10 ways to lower your auto-insurance

In the tough economy, people want to save money in any way that they can. One of expensive expense in the life, is the insurance include the life insurance, health insurance, home insurance and auto insurance. In those insurances, the home and auto-insurance is one that people need to pay all of the fees by themselves, unlike the life or health insurance that employers may help to pay part of the fees. Here have ten ways to help you to lower your auto-insurance.
1. Raise your deductibles, the more deductibles you have, the less premiums you going to pay. However, when you raise the deductible, then you need to be driver safer.
2. Compare quotes from different insurers, because each insurance company may have different rate of the auto-insurance customers.
3. Drive fewer miles, the less you drive, then less risk of collision and the less you file vehicle insurance claim.
4. Maintain good credit, if your credit score is lower, then you may view as the high-risk customers and need to pay the high-rate insurance
5. Stay a safe driver, mean to lower the risks of collision, then you need to avoid lane hogging, be aware of the conditions, don’t tailgate, prepare you journey, and stay clam.
6. Keep a clean driving record
7. Combine your auto and home insurance, you may get more discount on your rate if you use the same insurance company to insure your home and car.
8. Pick the right coverages, the more coverage you pick, the more premiums that you going to pay, but if you get the less coverage, and then you are taking the risk to pay more money out of your package if you have a claim or at-fault in a collision.
9. Choose your car carefully, because the model of car that you drive would affect you premiums
10. Take advantage of discounts, because discount can help you to lower your premiums

What To Consider When Choosing A Health Insurance Policy

With rising health care insurance, it sometimes seems hopeless finding a decent provider. So many people have horror stories, or at least complaints about how high their premiums are. There is virtually an endless number of options, that eventually it becomes dizzying.

The fact is, though, with so many options out there, you can find the right insurance policy for you. Research is absolutely worth the time. Once you know how to look and what you need to look for, the process isn't nearly so daunting. Make a list of what you want and then find a plan which conforms to it.

Use the Yellow Pages.

Call around town to various agents. Take notes and compare the policies each one offers. Make certain to list premiums, fees, co-pays, freedom of choice and prescription benefits. There may be tough decisions ahead, but one of the plans will eventually stand out from the others.

Check out all your options.

Fraternal social organizations and alumni associations often special coverage plans for their members. Don't let an opportunity pass you by due to lack of diligence.

Do some comparison shopping.

Don't limit your options just because you don't think you have any way of comparing them. NAHU stands for the National Association of Health Underwriters.

Get a second, third and fourth opinion.

Ask friends and family about your health options. Most will have stories and anecdotes about their own health plans. A few will have good reports. Consider looking into those with good health care options, though remember that peoples' experiences are all different. Those with few health problems may like their provider simply because they haven't had to use it much.

Maximum Coverage Limits

Look at the maximum coverage limit on any policy you purchase. The limits need to be high enough to cover any problem you have. A million dollars is a good bench mark.

Waiting Periods

Make certain you know how long you have to wait before you are fully covered. Some plans require you to wait a certain period of time. Before you sign on the dotted line, check with the doctor whom you will be visiting. Ask their office how long you must wait before the typical appointment. Long delays are simply unacceptable.

Prescription Drugs

If you are taking prescribed medicine, make certain to compare the prescription drug benefits with each plan. Find the drug you need on their co-pay list and compare prices.

COBRA

Use the COBRA laws if they apply to you. It stands for the Consolidated Omnibus Reconciliation Act. It was passed in 1985 to help families in a transition period. COBRA states that those who have quit or been fired from their job can maintain their former employer's health insurance plan for up to 18 months after leaving the job. The person must pay the full costs, but these costs should be lowered because of the group rates involved.

PPO

If you choose the preferred provider option, you need to have a doctor in mind who is suited to your needs.

This doctor should have skills in any condition you might have already. Otherwise, you may not get the treatment you need from a PPO.

Avoid the fee-for-service plan if you believe you will be visiting the doctor often.

People or chronic health problems should avoid this option entirely.

It is cheaper up front, but will eat you up in eats later on. You don't want to make choices on whether to visit a doctor according to what kind of fee you have to pay.

At the same time, fee-for-service allows you the greatest freedom is selecting a doctor.

The great price buys you greater freedom, which is a tradeoff decision you have to make.

POS

If you choose a Point of Service plan, make sure to find a doctor whose opinion you personally trust. This doctor will decide which specialist you use. So you are trusting your health in an emergency to this doctor's judgment.

HMO

Choose an HMO if you want lower premiums. This requires you to select doctors from that provider's Health Maintenance Organization. This limits your options, though it does save you premium money.

Listen to the Customers

There are message boards and forums where customers of plans give feedback about their experiences. Once you find a plan which sounds promising, do a little research about the potential provider. Go on a forum and ask what others think about this provider. You quickly will learn if the plan or provider has a bad reputation. This kind of feedback is invaluable.

Mind your Business - Insurance

Every business has to think about insurance in one form or another; it is one of the inescapable fixed costs that must be paid. Like domestic insurance, the principle is fairly simple but as a means of covering the potential liabilities of a business should something go wrong, it is vital.

Insurance is based on:

• The potential risks of something happening
• How much would be needed to cover that liability
• How many people are wiling to contribute premiums
• The ability of the fund managers who invest the premiums to get the returns necessary to cover potential outlays

The more risky the likelihood of the outcome, the more the premiums will need to be and the less willing insurance companies will be to cover the risk.

Imagine, then, the problems facing Sir Richard Branson as he tries to get his latest business venture off the ground - literally. Branson is working on developing Virgin Galactic. The plan is to extend the Virgin aviation business into space. Branson has plans to launch 100 initial flights lasting two and a half hours and including 15 minutes in space, with 5 minutes of weightlessness.

Branson is committing $240 million (£138 million) to the project. To date, 45,000 people have registered an interest in the tours - but these are not tours that you will find advertised in your local travel agent. The price for the tour is $200,000 (£115,000), paid in advance. 156 people have apparently paid a deposit to register their interest and a few have paid the whole fee.

Branson thinks the real competitive advantage will be in the way the aircraft is designed and that the sense of weightlessness is the thing most people are looking for. The cabin has been designed to allow people to be able to float around rather than remaining seated for this part of the flight.

Sir Richard scoffs at the sceptics who think that the idea will never 'take off' and sees the chance for ordinary people to be able to take part in space tours in his lifetime. He points to the fact that a flight between London and New York prior to 1939 would have cost the equivalent of $80,000 (£46,000)!

The major stumbling block to his plans, however, is not likely to be the technical challenges of the project but securing the necessary business insurance. The risk factor in space travel is high - 1 out of 64 missions have ended in disaster - and this is a risk factor that sends shudders down the spines of insurance brokers everywhere.

Experts believe that Sir Richard would have to get third party insurance cover for everyone living within four-and-a-half miles of the proposed spaceport in New Mexico - just in case debris falls from the sky and hits them. Whether those who actually travel on the craft are able to get insurance cover is highly debatable at the moment. Sir Richard has entered into negotiations with insurance brokers at Lloyds of London to discuss the issues.

The principle behind business insurance is simple but often misunderstood. The insured risk is that identified as being something that needs some form of cover. Let us take a simple example. A business has a warehouse with a stock of goods. It knows there is a risk that this building could catch fire and it would lose all its stock. The building therefore becomes the insured risk.

An insurance company will be approached to offer a quote on what it will cost to cover that risk. The insurance company will use the services of an actuary to assess the risk involved. The actuary will look at similar buildings, the area, incidents of fire damage and hosts of other data to assess the risk. The insurance company is then able to make a quote to the company based on this risk. The business concerned will then have to pay premiums to the insurance company for the lifetime of the policy. It could be that the business never has to make a claim for fire damage, in which case it will have paid large sums in premiums over the years and never get anything back.

On the other hand, it could be that the day after taking out the policy, the whole warehouse goes up in smoke and the company loses all its stock. The insurance company would have to then pay out, possibly millions of pounds, and has only received one premium! The insurance company therefore have to balance the risk of the event occurring with the number of people taking out policies and the expected payouts that they need to cover over a period of time.

In so doing, they will be looking at the amount of premiums they receive in relation to what they expect to have to pay out. The premiums should cover the expected payouts but the company cannot just aim to cover the anticipated payouts - statistics might give a useful indicator to chance, but reality tends to throw up events at any time. The insurance company therefore has to ensure that it has the funds available to cover all these eventualities and so uses the premiums it receives to invest in a range of financial instruments, including shares and bonds, to build up reserves of funds to cover their liabilities.

The diagram below highlights the basic principle.

Imagine that there are 10 businesses, A - J, each looking to secure insurance on their premises against fire. Each business values the buildings at £1 million. The actuaries have estimated that the risk of one of the buildings being completely damaged by fire and needing replacing is a 1:10 risk. The premiums are therefore set at £100,000 per year for each business. Each business pays the premium to the insurance company, which in turn uses the £1 million received to invest in various financial instruments. The returns from these investments plus the capital sum of £1million represents the fund that the insurance company have to pay out in case of a claim.

Let us assume that business J is unlucky enough to have that fire - the fund is used to pay business J £1 million to rebuild their premises. The fund managers will have to ensure that they have sufficient funds to meet this obligation. Of course, it could be that during the year, none of the businesses makes a claim, in which case the funds are kept in the pot to be built up. In another year, it is entirely possible that more than one firm could be unlucky enough to suffer a loss, in which case the insurance company has to make sure that they have sufficient reserves to cater for this eventuality. It is also possible that a firm makes a claim but that the claim will not be for the whole £1 million.

Insurance or Assurance?

These are two distinct terms in insurance circles and it is important to understand the difference between the two.

Insurance refers to something that might happen - your premises might get destroyed by fire, a customer might trip up in the store and break their nose on a shelf, one of your employees might have an accident at work and so on.

Assurance refers to something that will happen - you will die at some point in time. We therefore take out life assurance as opposed to life insurance.

Cheap Life Insurance

Many people are under the impression that they will have to spend hundreds of dollars a month in order to get a life insurance policy that will suit their needs. Sure, you can pay that much if you want to get the highest level of coverage, but this is not always necessary. If you simply shop around and compare life insurance quotes you should not have any problems finding what best suits your needs. And in most cases, your needs right now are to save money for other things.

With cheap life insurance you can start to pay a very small amount each month for a long period of time. For example, if you are in your late 20's you can pay $30 a month for approximately 25 or 30 years. This will then allow your beneficiary to receive $250,000 upon your death. Remember, this will differ with each company and policy that is available. Make sure that you check into the details of each one before you make a decision on which policy to buy.

In most cases, the cheapest life insurance is a term policy. When you buy term life insurance you will only have to pay a small amount each month in order to be covered for a specific span of time; in most cases anywhere from 1 to 30 years. The great thing about term life insurance is that you can get it for a low cost, and even renew it when it runs out. This way you can get the coverage you need right now, for a price you can afford.

Just because you are on a budget does not mean that life insurance should be put on the back burner. There are many ways that you can buy a life insurance policy for a small amount of money each month. If you look into these options you will be glad in the end.

Insurance

Insurance can help you replace items that have been lost or damaged by various accidents, breakages and problems in your home. The level of cover will depend on the type of insurance cover you want and get. As a general guide most standard insurance packages will cover you for loss or damage caused by fire, theft, flood or vandalism. If you require a more comprehensive insurance package that covers accidental damage and other possibilities then you may have to extend the standard cover and pay extra, check with the insurance company.

Contents insurance
You should consider this type of insurance if you would like the contents of your home covered. Most policies will cover you for fire, flood or water damage, vandalism and theft of all household possessions you would take with you when you move home, this can include computers, TVs and videos, stereo equipment, furniture, clothing and CDs. Accidental damage is sometimes covered, and sometimes not depending on your particular cover.

Items that are frequently taken out of the home, such as cameras and sports equipment, are usually covered by general polices. Some will also pay out if you accidentally damage another person’s property. Many insurers will pay for replacement door locks if you lose your house keys.

Buildings Insurance
You should get this type of insurance if you own your own home. This often covers the structure of your home, as well as permanent fixtures such toilets, baths, basins and fitted kitchens. Garden sheds, greenhouses and garages are usually covered. If you are not sure, ask yourself: can it be moved to a new home?

HOMEOWNERS INSURANCE FOR ALL CALIFORNIA HOMES

We believe quality home owners insurance should:

	Be reasonably priced
	Written by honest insurance companies who pay claims fairly and promptly
	Properly cover your home insurance needs

We are an independent, full service, insurance agency working hard to provide low rates and great service to all California home owners and renters. As an “independent” agency we work with hundreds of insurance companies to find the very best coverage and insurance rates for your California home, condo, or apartment.

We live, work, play, and raise families here in California. And we provide homeowners insurance to our customers all over this great state. We believe this helps us better understand your California home insurance needs.

Car Insurance

Car Insurance is a must for car owners. Car insurance protects against possible damages that might happen to the car in case of accidents. The car insurance rates have been shooting up in many parts of the world, due to increased demand for car insurance.

Taking a car insurance could depend on factors like age, gender and experience of the driver, history of accidents if any for the car, miles driven on an average, type of car and any exclusive features about the car, driving record etc. There is so much of passion when one purchases a car, but it is quite sad to know that most of them do not exhibit the same passion while purchasing car insurance. This could lead to huge losses in future, in cases of accidents.



Car insurance premium involves premium paid towards body injury, medical payments, uninsured mortorists coverage, physical damage coverage, collision coverage, property damage and rental car reimbursements. If car insurance is not taken, then the property owner is at risk in case of unforeseen circumstances. There are chances of huge financial losses which could be very well avoided if planned properly for.

Car insurance premium can be taken either directly through the insurance providers or through third parties. Full cover car insurance premium, covers the insured as well as the other party's properties in case of accidents and mitigates the loss as much as possible. The premiums are quite reasonable for this and it is well worth the money if one has to save `the car for which a huge sum was invested in. Car insurance is mandatory in some of the foreign countries, as they have understood the importance of this. Car insurance is a must take policy for all car owners, so that they are not caught in the red in case emergencies.

Car Insurance is a real blessing for businessmen, who use their cars a lot for traveling for official purposes. These cars are more prone to damages and accidents than any other types. Car Insurance, in these cases becomes a blessing , which aims to mitigate loss and risk.

Approved Insurance Companies

You'll find a comprehensive list of some of the insurance companies that have approved us.