• Distracted driving is happening at epidemic levels every day. Not a day goes by that you don’t see someone on his or her cell phone, talking or trying to text while operating a moving motor vehicle.
• States are now enforcing laws to regulate this behavior. Common sense should rule. Focus on the task at hand and be aware of your surroundings at all times while driving.

The next most important part in reducing auto claims is wearing a seat belt. Serious injuries can happen on one-lane back roads just as easily as they happen on main thoroughfares. Be the designated seat belt wearer in your car and make sure all of your passengers are too.

Be sure to have enough room between you and the car in front of you. Should the vehicle in front of you stop short, you won’t have the amount of reaction time you think you do to stop. A good rule of thumb is to have at least one car length for every 10 miles per hour you are traveling. If something unexpected happens, you’ve given yourself plenty of time to stop and prevent a crash.

Auto safety includes keeping your vehicle up to snuff in the care and maintenance department as well. Keep up on regular oil changes, tire rotations and brake pad inspections. It’ll not only keep your car running in optimum condition, but you also won’t have to worry about your vehicle breaking down while you’re on the road and potentially causing an accident. Likewise, if you see another driver in a beat-up, run-down vehicle, you’ll want to steer clear so you’re not involved in an accident.

Driving can be a very fun experience. Do everything in your power to make it that way.

Values may have depreciated with the economy. If there were a total loss of your home, it may not cost as much to replace today as it would’ve this time last year.

Insurance companies use a cost per square foot to determine what they would need to pay out to replace your home. If you have a 2,500-square-foot home and the insurance company is paying $100 a square foot, your limit would be $250,000.

If the insurance company changed it to $90 a square foot, your limit would be $225,000. You would see a savings in premium based on the lower limit of coverage.

If you don’t agree with the limit of coverage on your home, another option is to get an independent appraisal of your replacement cost.

Insurance carriers generally honor these reports and will charge you based on the limit that you request.

Another area to review is contents coverage. Have you bought or sold any big-ticket items throughout the year? If you purchased electronics for your new home theater or specialized equipment for a hobby, you may want to adjust your limit of contents coverage to make sure it is adequate. Likewise, if you have sold something of substantial value, you may want to have your contents coverage reflect the decrease in limit.

This is where your insurance agent can shine and help you determine the best choice in coverage for your needs. Your agent can tailor your coverage to your needs.

If you run a bakery, manufacture a product or have clients come to your office, there is a liability exposure.

Commercial general liability insurance comes with six different components of coverage.

Following is a sample of how the liability coverage page would read for someone with a $1 million to $2 million limit:

General Aggregate - $2,000,000

Products-Completed Operations Aggregate - $2,000,000

Each Occurrence - $1,000,000

Personal and Advertising Injury - $1,000,000

Damage to Premises Rented to You - $500,000

Medical Expenses - $10,000

The General Aggregate and Each Occurrence categories correspond with each other. If there is a general liability claim (Each Occurrence) such as a slip and fall at the grocery store, it would contribute to the General Aggregate. There can be two claims of this type, up to $1 million each, before the limit of insurance is exhausted.

The Each Occurrence limit corresponds with the Products-Completed Operations Aggregate limit. If a customer swallowed on a piece of one of your products, like food or small plastic pieces, and got sick because of it, this claim would fall under the Products-Completed Operations Aggregate limit of insurance. As with the General Aggregate limit, there can be two claims of this type, up to $1 million each, before the limit of insurance is exhausted.

Personal and Advertising Injury provides coverage for oral or written material that may be libelous or slanderous or that copies another’s advertisement, logo, slogan or other artistic work so closely that it can be confused with the original, as well as discrimination or humiliation that ruins someone’s reputation. The limit of coverage on claims of this type is $1 million. There is no General Aggregate limit provided.

If you are renting the space for your business and you accidentally cause a fire that destroys part or all of the building, the limit of Damage to Premises Rented to You will cover this cost. This coverage is sometimes called Fire Legal Liability. There is no aggregate on this limit either. Insurance carriers offer various limits on this one. Some may offer half of the Each Occurrence limit, while others may offer up to the same limit.

If there is a minor accident that results in some small injury or damage, Medical Expenses will pay the claim, no questions asked, up to the limit of insurance.

Higher limits are also available. Many companies offer $2 million to $4 million limits, and some are even beginning to offer $3 million to $6 million limits as well.

Depending on the limit, other types of coverage listed would be increased proportionately as well.

Also, deductibles do not apply with liability insurance as they do in property insurance.

Insurance carriers have a minimum premium that they charge for commercial general liability insurance.

It can range from $350 to $750 a year.

And for some, that means going without life insurance coverage.

In fact, about 35 million U.S. households currently do not have life insurance.

That’s the highest percentage in more than four decades, according to insurance industry research group LIMRA.

Can going without life insurance be justified?

Of course, only you are familiar with your individual financial circumstances and goals, so only you can decide if life insurance is something that’s necessary for you.

But consider this: Among households with children under 18, four in 10 respondents to a survey by LIMRA said they would have trouble meeting immediate living expenses if the primary wage earner died.

The same survey indicated that three in 10 would have trouble after several months.

Thus, going without life insurance may not be a good idea for those who have dependents.

That said, it can be difficult to justify the expense of life insurance in troubled times.

Employers have scaled back or eliminated coverage, with the number of households getting life insurance from employers falling, according to LIMRA.

Many people think they just can’t afford to purchase life insurance on their own.

Many people also don’t know how to purchase life insurance, given that the number of company-affiliated life insurance agents has dropped by nearly one-third since the 1970s, according to LIMRA.

Life insurance may be less expensive than you think, however, and many options are available.

Your insurance agent can help you find a suitable policy that’s right, given your individual needs and financial circumstances.

Self-employed individuals - including those who are contractors, freelancers and sole proprietors - are eligible for two primary categories of insurance that are available: individual health insurance coverage and group coverage.

Opting for an individual health insurance policy may carry a higher premium amount. However, oftentimes these types of policies are necessary for self-employed persons who have preexisting conditions.

This is because each policy is actually written based on the covered insured’s individual medical history.

Group plans available for the self-employed include organized medical insurance networks such as health maintenance organizations (HMOs) and preferred provider organizations (PPOs).

Although an HMO will offer lower premiums in most cases, the insured is required to live in an area where benefits may be received. Going with a PPO, an insured may have more leeway in terms of provider choices and in the geographical area in which services may be received.

Another option for obtaining health insurance that may be available to those who are self-employed is that of joining a business association through which the business owner may obtain group health insurance.

Oftentimes, those who are members of certain associations are eligible to receive discounts on health insurance coverage if the policy is purchased through that association.

For those who own individual health insurance plans, they will be allowed to make a choice between keeping their current policy or purchasing health insurance coverage through the new state-run exchanges beginning in the year 2014. Those who decide to keep their current plan will have some provisions that they should be aware of, including:

• Current health insurance policies will not be required to meet the higher benefit standards that will be required of new health insurance policies. However, due to the fact that insurance companies will be unable to add new benefits or enroll additional insureds into policies that are considered to be noncompliant, the current health insurance policies may not be viable for a very long period of time in the future.
• Shortly after the new health care reform takes effect, current health insurance policies in force will have to stop practices such as setting of annual limits on coverage and canceling the policies of insureds who become seriously ill.
• Current health insurance policies will also be required to keep the children of an insured covered on the policy until they turn age 26. In addition, health insurance policies that cover children will not be allowed to deny coverage for those who have preexisting conditions.

It should be noted that although the premiums for individual health insurance policies will probably be 10% to 12% higher by the year 2016, most insureds will likely be qualified for some type of premium-related subsidy. This means that these insureds will actually end up paying less for their health insurance coverage than they do today.

For most people, travel sparks good times and relaxation. But those who travel outside of the U.S. could find themselves without medical coverage. And if an unexpected illness or accident were to occur, it could mean big expenses.

Many health insurance policies don’t cover health problems when policyholders travel internationally. Therefore, traveler insurance can be a great help should an accident happen or sickness occur while in a foreign country.

There are a variety of different traveler insurance policies. One popular plan is a medical travel plan. These types of policies will cover an insured solely when a medical need arises. These plans are priced based on the policyholder’s age as well as the types of medical limits that the insured selects on the application for coverage. Some of these policies will cover the policyholder for up to one year - so even in extended travel situations, an insured could be covered.

Another popular type of insurance policy for foreign travelers is the package insurance plan. These policies are more comprehensive than the basic medical travel plans and will typically help with more than just the medical needs of the policyholder.

For instance, many of these plans offer 24-hour emergency hotlines where the insured can receive assistance with lost passports or luggage, money transfers, and even legal issues in certain cases.

The premiums for a package travel insurance policy are usually based on the age of the applicant as well as the estimated cost and length of the trip.

When planning a foreign trip, traveler insurance should be a consideration, as medical issues can and do arise.

The cost of the premium for such plans may be a small price to pay in relation to the coverage that could be received in case of a foreign travel emergency.

With this in mind, having a good solid health insurance plan is imperative to receiving the necessary treatment should this diagnosis occur.

In fact, having access to medical care can even help prevent this disease if it is detected early enough via regular mammograms.

When applying for new health insurance coverage, there are a number of things that women should look for in a policy that will help in the prevention and/or treatment of breast cancer should that need arise.

For example, because breast cancer is so prevalent, it is important to make sure that a health plan will cover mammograms at least annually.

The prevention or early detection of breast cancer can help to avoid other costly medical treatment.

However, should a diagnosis actually occur, it is also important to be sure that management and treatment of the disease are also covered.

This can include regular doctor appointments but should also encompass any necessary chemotherapy as well as mastectomy and/or breast reconstructive procedures that may be needed.

With the high likelihood of breast cancer occurring in so many families today, it is imperative to have a health insurance policy that will offer sufficient coverage to pay for the medical attention and procedures to help prevent or deter this serious ailment.

However, individuals in their 20s may want to consider it.

That’s because the best way to get the right kind of life insurance coverage when you need it is to buy it when you don’t.

Following are three good reasons to consider buying life insurance when you’re relatively young:

You Have Debt:

Debt includes mortgage, student loans and credit card balances.

If you died in an accident, who would pay off your debts? Your parents? Life insurance ensures that you don’t become a financial burden to those you love.

You Have Dependents:

Who depends on you? A partner? A child? Other family members? And how would they fare if your income disappeared?

Would they be able to live and retire on their own?

Life insurance ensures that they have time to get back on their feet.

It’s Cheaper When You’re Younger:

Waiting until you need life insurance is the worst time to buy life insurance.

That’s because the rates go up as you age. Buying now locks in affordable premiums for decades to come.

If you don’t have life insurance and want it, you’ll need to calculate how much you need.

Even if you’re covered by life insurance through your employer, you may want to find out how much is provided and determine if you need more.

One rule of thumb is to take your family debt, add $20,000 for funeral and taxes, add $60,000 per child for education, then add 20 times the annual income you want to replace.

That may sound like a significant amount of life insurance, but again, when you’re young it’s relatively inexpensive - and what better place to put a little of your insurance money?

Property insurance and liability coverage are important, but a personal umbrella policy provides the extra coverage you might need.

With property insurance, you are insuring a tangible item. That tangible item could be a boat or diamond ring, and it will have a specific value. The limit of the property insurance will reflect that value.

Liability insurance, on the other hand, protects you from negligent behavior. You can’t easily put a price tag on behavior. When we engage in certain type of activities, there is always the possibility of injuring another or damaging his or her property.

For example, if you were to be sued for causing a car or boat accident, the limit on your auto and boat policy would be used up first. However, if you have a $1 million liability limit but are ordered to pay $2 million in damages, your auto or boat policy would not provide enough coverage. You’d be responsible for paying the second $1 million out of your own pocket.

A personal umbrella insurance policy will help you avoid that situation because it provides additional liability coverage once the primary policy runs out.

It might make sense for you to have a personal umbrella insurance policy for your auto or boat, as lawsuits can easily skyrocket beyond $1 million.

A personal umbrella insurance policy might also be good in addition to your homeowner policy.

Business owners, especially, should have a personal umbrella insurance policy so they are protected if they are sued personally as well as professionally.

So can you ever have too much liability insurance? The answer is no.

That’s because you never know how much you would need if you are

brought into a lawsuit. You can buy a $1 million policy but end up in a lawsuit for $5 million. This is why it’s always best to buy as much liability insurance as you can afford.

Your agent can help you determine how much coverage is right for you.

People don’t want to take on these types of positions if they know their personal assets could be at stake if they were to be sued.

Directors’ and officers’ coverage provides that protection. Such a policy ensures that the personal assets of a director or officer of the corporation are protected.

Liability is often an issue when corporate decisions are made and somebody feels they’ve lost money or they’ve been harmed in some way.

Nonprofit organizations like social service and mental health agencies, condo associations, private schools, day care centers, churches and other religious organizations, and youth sports organizations are all examples of groups that would benefit from a directors’ and officers’ policy.

Many people want to volunteer their time on such nonprofit boards, but they may not realize they take on the legal responsibilities of these positions.

In a nonprofit setting, claims can arise from an alleged wrongful termination or a perceived mismanagement of the organization’s funds.

Both can be financially devastating without a proper directors’ and officers’ policy in place.

In addition to the liability coverage it provides, the directors’ and officers’ policy will pay to defend all claims. Defending a lawsuit can cost several hundred thousand dollars. Be sure to find a policy where the defense costs are covered in addition to the limit of insurance.

Before the federal government stepped in during the early 1900s, the only recourse an injured employee or their family had was to launch a lawsuit against an employer.

At that time, employers felt they did not have an obligation to continue to pay employees who’d been injured on the job.

Pittsburgh Survey

The Pittsburgh Survey, a detailed study done in 1907-08 of living and working conditions in Allegheny County, Pennsylvania, had a special impact on job safety and health.

A major topic of the study was industrial accidents.

The study found that injured workers and survivors of those killed on the job bore the economic brunt of accidents, even though most were the fault of employers.

Authors of the study agreed that, for reasons of social equity, employers should bear a substantial share of the economic burden.

The theory behind this strategy was that it would give the employers more incentive to eliminate the causes of accidents.

Legislation

In the early 1930s, labor standards started taking shape.

The government quickly enacted legislation that created a minimum wage.

Health and Safety

By 1970, health and safety in the workplace came to prominence.

So did fair labor standards.

Workers’ compensation policies were eventually created to give both employers and employees protection and satisfaction.

How It Works

For a work-related injury, an employee may sue the employer or collect medical payments.

The employee does not get both options.

To reflect this, workers’ compensation policies limit the liability available to an employer if an employee sues.

The policies also classify all employees based on their job descriptions.

Employees Rated

Each employee is rated based on the degree of risk of injury and the amount of payroll the employer pays that group of people.

For example, a roofing company will have roofers on the road all day for various jobs, as well as clerical people in the office. Roofers are rated more highly because their job poses more of a danger.

There is a greater likelihood that a roofer in the field would incur a severe injury than a worker in the office, who is in a relatively safer environment all day.

Requirements

Workers’ compensation coverage is a requirement in every state whether an employer has one worker or hundreds.

No matter what kind of business you have, let your insurance agent help you find the best policy to meet your needs.

In all the excitement of the new trip, you might think such insurance is like a used car warranty where you end up paying too much for something you never use. You can’t imagine that anything would happen to ruin your upcoming adventure.

But stuff happens, and when it does - whether traveling within the U.S. or in a foreign country - it can crimp your plans. Hurricanes and snowstorms can shut down travel, the company you’re booked with can go out of business, or you or your children may get sick while traveling.

Without trip cancellation coverage, you could suffer a financial loss as well as not enjoy the trip of your dreams.

With trip cancellation coverage, however, you can get reimbursed for the following: emergency evacuation/medical air evacuation/repatriation of remains; return of a minor child; trip cancellation/interruption; accidental death, injury or disablement benefit; overseas funeral expenses; curtailed or delayed departure or missed connection; lost, stolen or damaged baggage, personal effects or travel documents; delayed baggage and emergency replacement of essential items; legal assistance; a flight connection that was missed due to the airline schedule; travel delays due to weather; a medical emergency; and hospital care due to an accident or sickness.

Being properly protected will give you peace of mind when things don’t go as planned.

At present, there are roughly 10 million Americans in need of some type of long-term care. What many don’t realize is that more than 7.5 million of those individuals are actually receiving the care that they need in their own homes. In fact, many people purchase long-term care insurance to help keep them out of a nursing home.

Most of today’s long-term care insurance policies offer a home healthcare option. By including this feature, an individual will likely retain the ability to take part in as many of his or her normal daily activities as possible.

Home healthcare can cover a large variety of services, and although options are available that help pay for more skilled levels of care, home healthcare can include services such as meal preparation, companionship and homemaking. Other benefits may offer help with paying bills and managing other types of financial transactions.

Additional types of home healthcare that may be covered in the homecare portion of a long-term care insurance plan include assistance with bathing, dressing, toileting and transferring within the insured’s home.

With all the combined benefits of home healthcare coverage, both the insured and his or her family can have peace of mind knowing that these needs are being taken care of.

You just end up paying more dough for the same loot

.

When inflation is to our disadvantage, we feel it everywhere.

It hits our pocketbooks at the grocery store and gas pump, and we may not take as many vacations or have as many toys.

But there is one place where you don’t have to feel the ill effects of the rise and fall of inflation. That place is your insurance policy.

Did you know that your property limit can be adjusted to keep up with inflation so that you have enough coverage in case of a total loss?

There is a provision in both personal and commercial policies to adjust the building insurance limit based on a chosen percentage of the current year’s building value.

It is called an inflation guard.

Depending on your insurance company, you can use this to choose between 2% and 8% of the building limit.

The following example illustrates how the inflation guard works.

In year one, if you have a $100,000 building limit with a $1,000 deductible and the building is a total loss, you would pay the first thousand and the insurance carrier would give you a check for $99,000.

In year two, if you carry the same $100,000 limit and have the same $1,000 deductible and there has been a 4% spike in inflation, if your building is a total loss, you would pay your deductible and the carrier would still pay you $99,000.

You would make up the difference of any additional costs after that to replace your property.

However, if there was a 4% inflation guard on the policy, the building limit would automatically increase to $104,000 to account for the increased cost to replace your home or building.

In a total loss, you would pay your deductible and the insurance company would give you a check for $103,000.

Now that’s peace of mind.

What they require in the way of coverage is very different than what renters and homeowners need to look for in an insurance policy.

A condominium complex is often operated by an association, which is governed by a set of bylaws.

These bylaws determine who will cover what.

They can be written in any number of ways, but in general, the association is responsible for insuring the building itself and the unit owner is responsible for his or her belongings and any upgrades made to the unit.

This is often referred to as “studs-in.”

Condominium associations charge monthly fees for maintenance and other projects.

Should a unit owner have a loss and be unable to pay the fees, the insurance policy will pay them up to a limit of coverage.

Like other policies, liability coverage and personal property coverage are included in the unit owner’s insurance policy.

Condominium unit owners should review an association’s bylaws during the buying process to know what type of coverage is expected.

An insurance agent is a great asset in the insurance-buying process.

The agent can help first-time condominium-unit buyers find the best coverage to fit their needs.

But you can also build your own annuity.

An annuity is a contract between an investor and a life insurance company.

You make a payment to the life insurance company, either in a lump sum or in a series of transactions, and in exchange the life insurance company offers you an ongoing stream of income at some point in the future.

One type of annuity, the fixed annuity, is designed to provide guaranteed regular payments to the policyholder over the term of the contract. That’s appealing to many investors because fixed annuities promise guaranteed income payments in good times and bad.

Investors who have purchased them don’t have to worry about market volatility.

You can also build your own annuity, however.

Say you have $100,000 to invest in a deferred annuity that matures in five years.

You might invest $89,500 in five-year U.S. Treasuries, with recent yields of around 2.25%, and the remaining $10,500 in stocks via an S&P 500 Index fund.

At the end of five years, the five-year U.S. Treasuries will return $100,000.

If the stocks maintain their value, you’ll end up with $110,500. If the stocks lose half their value you’ll end up with $105,250. If the stocks gain 9%, you’ll end up with $116,200.

Of course, this example is hypothetical, but it does illustrate the concept. In each case, there’s a guaranteed return, there’s a potential profit and you hold the cash, not the life insurance company.

That said, assembling your own annuity-like investment can be tougher than it looks, so you may just prefer to stick with a fixed annuity. If so, your advisor can help you choose one.

It wouldn’t be surprising, given the market mayhem, to hear that financial advisors are juggling calls from worried clients. But many aren’t, because their clients invested in annuities.

An annuity is a contract between an investor and a life insurance company. You make a payment to the life insurance company, either in a lump sum or in a series of transactions, and in exchange the life insurance company offers you an ongoing stream of income at some point in the future.

Because fixed annuities promise guaranteed income payments, in good times and bad, investors who have purchased them don’t have to worry about market volatility.

That’s why sales of annuities have risen significantly in today’s market environment. They were up more than 16% to $60 billion in the first quarter of 2011, according to industry research group Limra. And, sales may rise even more.

In June, the Government Accountability Office, the investigative arm of Congress, suggested that some investors could benefit from buying fixed annuities rather than trying to manage their money themselves.

If you’d like to maintain a certain level of income, then an annuity might be worth consideration. But note that annuities can be complex, meaning it’s a good idea to have the assistance of an advisor when researching options and purchasing one.

But life insurance policies can be complicated.

Terms and riders make the purchase of even the most straightforward policy a challenge to many.

Following are ways to avoid five mistakes when buying life insurance:

Don’t Procrastinate:

You may think you can get away with postponing your purchase until you’re older, but then you may also be sicker, and being sicker will make your policy cost more or maybe even prevent you from getting coverage at all. So look into life insurance now, when you’re in good health and can easily pass an insurer’s medical exam.

Don’t Lie:

If you smoke or have a medical condition, be sure to be open about it. It might cost more, but not telling could cost you coverage when you need it most.

Don’t Forget About Your Spouse:

Life insurance isn’t just for your kids. A life insurance policy should provide your spouse money in the event of your death too. That’s because if you die, without your income, your spouse’s lifestyle could change drastically.

Don’t Let the Policy Lapse:

It’s tempting to forgo life insurance when your household budget is tight, but it’s a bad idea. In addition to needing life insurance, it’s also a financial mistake, depending on the type of insurance. For example, generally the surrender or cash value of a whole-life policy won’t equal the premiums paid until 12 or 15 years have passed.

Don’t Forget to Do the Math:

Determine how much money your spouse and children would need if you weren’t around, by taking into account your lost income and any debts such as mortgages and major expenses that are pending, like college tuition.

Hired and Nonowned Auto: For any business with employees, this coverage is a must. It provides auto liability to a business when a vehicle must be hired or borrowed to conduct business. The most common scenario is the way this applies to employees. Hired and nonowned coverage will protect the business while an employee is out doing anything from running errands to making sales calls in his or her own vehicle. The business is “borrowing” the employee’s car to do its work. You might say, “Wouldn’t my employee’s personal auto policy take care of this scenario?” Yes…and no. If an employee is at fault for an accident and is on business time, the injured party could go after the employee personally as well as the business for damages. This is where hired and nonowned coverage kicks in. Coverage is available at a $1 million limit for a few hundred dollars.

Driver Other Car: This coverage is specifically designed for the business owner who may have one or two cars that are used personally and commercially. Most personal auto insurance companies want nothing to do with insuring a business. A personal auto policy was not intended for that purpose. Driver other car coverage provides personal liability coverage to the owner and his or her spouse, thus eliminating the need for two policies.

Review your auto policy, and if you don’t find such coverage listed, it’s very easy to get a quote from your agent.