Home and Renter’s Insurance Policies: What’s Actually Covered

Whether you are buying a house or renting a place, it’s important that you are covered by an insurance blanket so that you can cut down on costs during unfortunate events. Before you even consider having your own place, you should do your homework on home or rent insurance policies so that you’ll know how to lessen your liabilities. To give you an idea, we’ll be explaining some of the things that home and renter’s insurance policies cover.

Home Insurance Policies

General Coverage

First, let’s talk about home insurance policies. Although insurance policies would differ per company, there is a general list of what all homeowners’ insurance policies cover. Home insurance Pennsylvania policies cover a whole range of damage liabilities. These would range from natural disasters like floods or hailstorms to manmade disasters such as fire or explosions. Home insurance Pennsylvaniapolicies would also cover theft, break-ins, vandalism, or destruction resulting from riots. Your property is also protected from falling objects or objects that would crash into your home unexpectedly.

Items On the Property

Other than your house, homeowners’ insurance Pennsylvania policies may also cover some items that were also destroyed in your property. These would include fences, doors, garages, or trees. As for your personal items that were lost or damaged, some insurance policies would cover a certain amount of the costs. However, more often than not, personal items (aside from very high-value items) are not completely covered. If you’d want them fully covered, then you probably need to buy some additional coverage for those.

Car Coverage

Most people would assume that a car, also being on the property, is also covered along with the fences, garage doors, or tool sheds. However, cars may not be coveredbyyourhomeowners’ insurance Pennsylvania policy since auto insurance is supposed to cover any possible car damage. The most that homeowners’ insurance policies may cover on that front would be the damage or replacement of some of the items inside the car that were lost or destroyed.

Injury Coverage

What if you got injured during a disaster? Does your insurance policy fully cover your injury? As a general rule, your homeowners’ insurance policy would usually have a limit as to how much coverage your injuries would have. This is why you have to study in depth exactly how much injury coverage your insurance offers so that you’ll know beforehand whether to get additional coverage or not.

Renters’ Insurance Policies

General Coverage

Even if you’re just renting a place, it’s still important to know what your renters’ insurance covers. If the place you’re renting comes crashing due to a disaster, your landlord’s insurance policy isn’t going to protect your stuff. One thing to remember is that the land owner’s insurance policy is only going to cover the damage done to the building or the property of the landlord. All of your things won’t be included unless you have your blanket of insurance. So what does your renters’ insurance Pennsylvania policy cover? Well, it covers everything you own– whether lost or destroyed due to an unfortunate event.

For example, if your TV is stolen, your insurance policy can cover the costs of that. Renters’ insurance would pretty much cover the same liabilities as homeowners’ insurance policies such as fires, theft, explosions, floods, etc. Of course, not all of your personal belongings can be covered by your insurance policy. There are limits as to how much risk you can hedge. The limits would differ per policy which is why you have to scrutinize your policies to know your limits.

Liability Damage Cverage

Let’s say that you accidentally broke the window of the place you’re staying in. Obviously, the landlord is going to ask you to pay for the damages made. Included in the renters’ insurance Pennsylvania policies would be damage liability coverage which will pay for the damage you’ve done to the property that you’re renting. With this, you won’t need to pay money out of your pocket for the damages you did. You just have to make sure you know how much coverage you have for liabilities.

Living Expense Coverage

If your rented apartment or unit gets burned because of a building fire, it will take time before it gets repaired. In the meantime, where will you stay? Well, you can stay in a hotel or an inn, which the insurance can cover. All of your living expenses while your unit or apartment is being fixed can be included. Once again, there is a limit to what expenses are covered which you have to take note of.

Final Words

Insurance policies are extremely helpful if you know how to use them. The key here isto always read the fine print of your policy so that you know the limits of your coverage. If you have everything under control, your insurance will come in handy in the event of anything.

Also, if you are searching for a good insurance company, we would suggest examining all the options available in your area so that in any event, you can just go to the office near you. For example, if you live in Pennsylvania, look for a Pennsylvania-based insurance company. Availing the policy of a Pennsylvania-based insurance company makes it easier for you to monitor your policy and take total control.

One of the most well-known insurance companies in the whole of U.S. is Body-Borneman. Body-Borneman has offices located in four states around the country. They also offer very competitive rates and excellent customer service. Give their friendly experts a call now and get a free quote.



Why Get a Life Insurance Before Everything Else

People readily want to buy insurance for their car, house, and land in the hopes of protecting these assets. However, very few of them realize that their biggest asset is not any of these things­­—it’s their lives. Who will pay for the mortgage and take care of your family when you meet an accident? Who will run the car and pay for all the bills? These are grave questions and many prefer to avoid them rather than face them head on.

Life insurance is made so that you can keep guard of yourself, too. Your life is important, especially when there are other people who depend on you. It’s not enough that you have health insurance or you stay cautious. Accidents happen all the time and you have to think of this possibility happening to you.

Not convinced yet? Here are the top reasons why you should get a life insurance now!

  1. To Cover Your Dependent’s Expenses

If you’re the bread winner in the family, it’s your responsibility to ensure that every member is taken care of. In other words, you should keep everyone well fed, send the children to school, and give them clothes and a house to live in. There is a life insurance coverage that can cater to an educational or housing plan. However, even those which do not will still allow you to cash money in so that you can leave something behind for your family.

  1. To Pay the Debts

There are those who leave behind debts instead of a valuable inheritance. As a result, the family not only struggles to find a way to pay their day-to-day expenses, they also have to settle the debts. It’s not financially healthy for anyone to do this. If you want your family to still be able to live comfortably, you have to completely pay them off. There are life insurances that cover debts, like the mortgage.

  1. To Replace Your Spouse’s Income

If you are sharing family responsibilities with a spouse, then things might be easier for you. However, what do you think will happen when one of you passes away? The other one would need to work twice as hard to replace his or her income and still cope with the same lifestyle. Tasks like cleaning the house, cooking, doing the laundry, visiting the doctor, and helping kids with schoolwork also fall under only one person’s shoulders. What usually happens is that the expenses get bigger and the income becomes smaller—a problem that life insurance can easily aid.

  1. To Pay for the Final Expenses

The cost for the funeral and burial can range from tens to thousands of dollars. The common practice is to let those who are left behind take care of these expenses. However, if you really care for your family, you will not leave behind such burden. Not only will you let them suffer emotionally because of your death, you will also give them financial trouble.

  1. To Pay Off Your Estate Taxes

Estate tax is the tax that lawful heirs or beneficiaries have to pay so that the deceased person can transfer his or her estate at the time of death. This tax can be steep and those who can’t afford to pay it end up losing all the hard-earned assets. To avoid jeopardizing the things you’ve worked hard for, you can get life insurance coverage that will allow you to pay for the estate tax even after you’re gone.


Brian Frederick, part of the Intrinsic Wealth Counsel, once said that most of those who are in their twenties feel that there’s no need for life insurance mainly because they feel invincible. However, when they reach their 50s, coverage becomes more expensive and harder to get. That’s why it’s better to get life insurance now than regret it later on.


Long Term Investment Goals with Tax Saving Option

With all the different types of long term investment products with tax saving option available in the market, planning your investments yourself can be both challenging and rewarding. Challenging because you can end up with a wrong product for a minimum of 3-5 years and rewarding, because you get the freedom to choose from the myriad of options.

However, choosing a product yourself is something that is easier said than done. Right from the flexibility, safety, to the returns, everything needs to be thoroughly analyzed before making a decision. ULIPs are time-tested investment option for people who are looking for long term investments with tax saving option.

What are ULIPs?

ULIPs are Unit Linked Insurance Plans. It is an insurance product that provides you with risk cover as well as the opportunity to make investment in qualified investment instruments, like equity funds, debts, etc. The premiums can be paid on an annual, quarterly or monthly basis and an amount from the premium will go towards the life insurance, whereas, the rest will be invested just like a mutual fund.

Just like its other famous products for Planned Future, Edelweiss Tokio also offers an excellent ULIP product called Wealth Accumulation (Accelerated cover)

Overview of Wealth Accumulation Policy

Wealth Accumulation (Accelerated Cover)from Edelweiss Tokio allows you to accumulate your wealth for your future goals, like buying a house, going on a luxurious vacation, etc. Moreover, you get the facility to switch the investment instrument to get better returns. Apart from this, it also provides you with a risk cover to ensure that your loved ones are financially stable in case of your premature death.

Key Benefits of Wealth Accumulation Policy

Maturity Benefit- Total value of the fund is paid at the end of the policy term. The holder of the policy can get this maturity proceeds in the instalments or a lumpsum amount.

Death Benefit- In case of the premature death of the policyholder, the beneficiary will be paid through one of the below mentioned options-

  • Total sum assured along with the top up sum
  • Total value of the fund along with the value of the top up funds on the date on which the claim is made
  • 105% of the total premiums paid by the policyholder along with the top up premiums until the death

Among the above mentioned options, the option that carries the highest value will be paid to the beneficiary.

Tax Benefits- Tax benefits can also be availed under Section 10 (10D) and Section 80C of the Income Tax Act of 1961.

Easy Online Management- As the policy is available online, you can buy, manage, report a claim, and renew the policy right from the comforts of your home.

The brochure, Eligibility Criteria, and Sample Contract for Wealth Accumulation (Accelerated Cover) can be found on- https://www.edelweisstokio.in/product/planned-future/wealth-accumulation

Food, Nutrition & Health – The Connection Revealed

“Food, glorious food! Hot mustard and sausage!” Therefore the urchins sang in the musical “Oliver!” Food takes on a significant role inside our lives certainly. It could do a lot more than give us energy… it can benefit us feel great, it can boost our interpersonal lives, it is the centerpiece of several holidays and public traditions. It could be very pleasurable!

Enjoyable yes! Healthy, not necessarily. Just what exactly is the essential reason for food and exactly how does it have an impact on our health?

The basic reason for food is to provide nutrition to the physical body such that it can function. Certain nutrients are essential to incorporate with oxygen to make energy for physical exercise as well as for all internal functions, including mending and building cell tissue.

But food and nourishment don’t always go “together.” And without diet, your body can’t function its best. Health and energy suffer.

Description of Nutrition

Diet means something that nourishes simply. To nourish means “to feed or sustain with substances essential to life and growth.” Not everything that is named “food” consists of nourishment! Actually Food for health international can help you as to deal with the exact amount of nourishment that your body requires. And just because a product has a nourishment facts label just, that is not any guarantee that there surely is any diet in it. That is why “processed foods” is named “junk” – since it has a whole lot of calories from fat but no real nourishment – no vitamins and minerals!

Diet: Macronutrients and Micronutrients

The nutrients that the body needs for energy and provide the building material for cells, tissues, muscles, bone fragments, human hormones, etc. etc. (all physical framework and bodily operations) are damaged into two categories: Macronutrients and micronutrients.

Macronutrients are called “macro” (so this means “large”) because they form the major ratio of the nutrition the body must function. The macronutrients are:



    Fats (also known as lipids)

    Protein and


Micronutrients are called “micro” (so this means “small”) because they’re needed by your body in really small amounts. The micronutrients are:




Your body needs many of these nutrients in well balanced quantities to accomplish good physical health also to operate at its best.

Nutrition and food

Before the arrival of convenience and junk food, food and nourishment wasn’t a concern. Food WAS nourishing! Interesting how there are epidemics of diabetes now, obesity and a great many other health problems because the nutritional quality of your food resource has deteriorated. Food handling to the amount that is situated in junk food and convenience foods not only robs food of almost all of its vitamins and minerals, however the pesticides, chemical preservatives and chemicals that may be within prepared food is dangerous to the physical body.

Food, health and nutrition

Learning the essential factual statements about the diet (or not) in food and exactly how it plays a part in health (or doesn’t) is just about the smartest thing someone could do to boost their health insurance and energy. Trust me; there are truckloads of wrong data and misconceptions about food and nourishment that keep folks from enjoying better health insurance and vitality.

Food manufacturers using their slick advertising make concerns even worse! It appeals to our taste thoughts and buds, but processed food eaten frequently, because so many Americans do as of this true time, requires a serious toll on health insurance and energy.

The individual who said “An apple every day keeps the physician away” had not been kidding!


How to Plan, Save, And Invest in Your Child’s Education

Nothing in this world is as important as being a parent because you are responsible for the life of another human being. For your child to succeed, you ought to make sure that he has all the tools to succeed in this world. Remember, the world can be cruel to anyone, both adults and children. Therefore, it is important to shield him from the cruel nature of this world and the best way of doing so is by giving him an education. For example, children who go to school are less likely to participate in social vices than those who do not go to school. More importantly, they are more likely to get a job or to pursue their business interests than those whose education comes to an abrupt end at some point in their lives.


The question is how to plan, save, and invest in your child’s education.

Step 1: Get a Proper Cost Estimate

You cannot embark on any journey in life unless you know where you want to go. Similarly, you cannot save for your child’s education unless you have a realistic figure of what that education might cost you. Underestimating or overestimating the actual figure could be catastrophic to your financial stability now and in future. You should find the best child education calculator and then use it to estimate the possible cost of your child’s education. This calculator should be as accurate as possible and it should reflect possible trends in future based on what is happening today. Getting these estimations from a reliable child education calculator gives you an objective figure that you can use to make your financial plans.

Step 2: Invest Wisely in Your Child’s Education

Putting aside some money for your child’s education may be quite difficult today, but it is possible to do it incrementally over the next few years. For example, you can buy shares in a stable company and then maintain them as an investment towards your child’s education. It means that you will not sell those shares or use the dividends you receive from them for any purpose other than your child’s education. You should also contact your local bank or other financing institution for a product that specifically allows you to save for your child’s future. You should also get a life insurance policy that would make sure there are some funds available to your family for education and other purposes in case anything goes wrong.

Step 3: Set Up a Trust Fund and Other Legal Mechanisms

Parents should hope for the best, but still prepare for anything unfortunate that might happen. For example, you should have a system in place to make sure your child’s education is secure even if you have passed away. Leaving money behind is not enough because the adults you leave behind might misuse it. Your children may also misuse it if they come of age. Therefore, you should setup a mechanism that ensures the money you leave behind for education goes to this intended purpose only. A trust fund would provide that kind of financial security for your child’s education. Set it up based on the figures you arrived at while using a reliable child education calculator. Your last living testament should also reflect your desire to have some funds set aside for your child’s education.

Related Article: Financial Planning for Dummies


Things To Know About Industrial Assets Insurance: Used Machinery

 Insurance provides complete protection from any financial loss. To be precise, insurance is a provision by which a state or a company guarantee to pay the compensation for the specified loss against payment of a particular premium.


Accident or damage is completely unpredictable. If any such unfortunate incident happens, you will not have to pay anything for the loss suffered. The entire liability falls on the insurance company and the company will pay for the loss you suffered. If you run an industry, remember to get all your machinery insured as you do not know when your machine will break down.


Insurance for used machinery goes like this that if any damage happens to a machine due to mechanical breakdown or accidental electrical issue. When such issue crops up, the insurance company reimburse the cost to the insured either for repairing the machine or for getting the machine replaced. A company or a person or an individual who have financial interest pertinent to the machine is eligible for the insurance policy. Industry machines like pumps, compressor, turbine etc. and electrical machines like a generator, transformer, and electrical motor and so on are covered by mechanical breakdown policy.


The policy covers the following incidents:

  • If rotating parts get disrupted due to centrifugal force
  • Lubrication failure due to breakdown
  • Faulty material
  • Safety devices malfunctioning
  • Electrical short circuits that include electrical fire which may originate from insulation failure and due to under voltage and over voltage conditions.
  • If a machine stops working suddenly.
  • If foreign bodies enter inside a running machine.
  • Mishandling of the machine because of inadequate experience.

So do not worry and claim your money from the insurance company if ever you encounter any of the above-mentioned situations.

 Process of claim

When it comes to claiming the money from the insurance company, follow the below mentioned steps:

  • Bring it to the notice of the insurance company about the incident by fax, letter or phone.
  • Take the repair estimation from the mechanic.
  • After taking the repair estimation cost from the mechanic, submit the repair estimation cost along with the claim form to the surveyor of the insurance company.
  • Once the surveyor gives you the clearance step ahead for repairing your machine or order for the replacement according to the situation.
  • Submit the original bill of replacement or repair to the with payment proof to the surveyor.

Thus you will not have to spend a single penny at the time of breakdown of the machine as the insurance company will lend you the entire support.


Key Points to Consider When Choosing Insurance for Concrete Equipment



Construction involves large numbers of manpower and huge assets of money. The personnel at a building site associated risk their lives working at great levels, with dangerous tools, harmful materials, heavy equipment, under tunnels, etc. Hence, engineering is associated with high amount of risk for lives and money. Hook neglectfulness or bad bundle of money on area of the owner or employee may show very costly. It could lead to an enormous financial damage. These unfortunate events require tools, which can bail the business from the situation. Here arises the necessity of ‘Construction Insurance’, the chance management tool, customized designed for the construction industry. Construction insurance is similar to any other type of insurance and after student loans is the most subscribed for debt, which can be used to protect the many parties associated with construction process.

A comprehensive construction insurance coverage includes all the expenditures that might occur anticipated to property harm or personal injury at the building site. This insurance not only includes the business owner, but employees also, employees, tenants, sub-contractors, lone proprietors and business associates.


Importance of building insurance

As reviewed above, construction will involve use of heavy equipment, materials, labor, etc. which is more susceptible to accidents. Because the business stands responsible for any car accident on the structure site, it’s the business proprietor or the builder that should purchase the treatment charges of the hurt or settlement to the households, in case there is fatality of the employee.

Materials costs associated with development are incredibly high. Any harm to the framework or the materials causes huge financial damage. Covered by insurance with the engineering insurance, you can seek financial help of the insurance provider.

The purchasers of the flats or the designed property will have all privileges to sue the building company, in case there is faulty construction. In such instances the development company must purchase the re-modeling or mending the constructed site. Building insurance helps to protect the contractors from those says, by giving financial assistance.

From the above circumstances aside, building insurance provides large coverage, providing security to the carrying on business in case there are unpredicted occurrences.

Four main areas it covers

Development insurance is very significant in conditions of its coverage. It’s very extensive and it is specifically made to cover every part of structure process, to help make the business process versatile. Construction insurance protects four major regions of business insurance. They can be:

Public responsibility insurance

Public responsibility insurance is an over-all insurance to be possessed by any business that involves interaction with the clients or people generally. Public responsibility insurance within building insurance helps the firms in the event any harm to alternative party property or individuals is induced by employees or the various tools used in building.

Employers responsibility insurance

As the engineering industry involves great deal of risks, any staff member can get damaged or pass away at any true point of your time, because of the faulty equipment or carelessness of supervisors or co-workers. Employers are in charge of the health and safety of their employees at construction site. Moreover, the employees will have the right to sue the dog owner and claim for compensation. In case there are such unexpected events, the employer or the dog owner can take advantage of the construction liability insurance, as the insurance provider pays the medical costs or the compensation from the claims.

Contractors all hazards insurance

Contractors all dangers insurance is customized for development businesses. It offers assistance for agreement works of new homes, robbery of materials or tools, harm to the materials or tools credited to unforeseen incidents, unexpected stoppage of on-going works of new homes, hired or owned plants, etc. This insurance functions as a perfect help for the mostly incurred crashes in the engineering process.

Personal automobile accident insurance

This insurance is specifically suitable for managers, only proprietors or business associates. That is useful in the circumstances, where in fact the person harmed can’t blame some other person for the harm brought on to him. That is helpful in providing assistance through the period that the hurt person cannot get income.

Construction insurance is vital for building businesses as the harm or the financial reduction occurred is very difficult to be retrieved. Businesses should recognize that the price tag on payments for insurance is less in comparison with the payment costs. Therefore, it could be concluded that, building insurance is very valuable to make the business enterprise preserve for long haul.


Compare Insurance to Find the Best One

There are three main vehicle insurance covers that are offered by most insurance company, compressive car insurance, third party fires and theft insurance cover and Third party only insurance cover. Each of these insurance covers has its own unique features.

Comprehensive car insurance

This is one of the policy that has highest level of protection you can get for your vehicle because it covers wide range of damages, it covers damage to your car, accidental damage to third party vehicle, injuries to the passengers in either vehicles, vandalism damage to your vehicle, theft and fire to your vehicle, accidental injuries and to the driver of the vehicle as well as earthquakes and flood.

It is the best stress-free insurance cover since it offers you great peace of mind and added level of protection. With compressive policy cover you one can launch complain to insurance company and make the injuries or accidents that are deemed to be your fault and also accidents that fault can’t be proven.

With this insurance cover you can assure that if your car is stolen or broken into, you losses will likely be covered. With this cover your premiums may go up but it worth your investment to ensure your property is covered. Compare car insurance while planning to select one.

Third party theft and fire

This is insurance policy that covers you if your car is damaged in an attempted theft, stolen or damaged by a fire. It also covers claims made by other third party people for bodily injury or property damage.

The disadvantaged of this policy is that in case of accidents damaged to your car is not covered by this policy and that is why it is recommended if your car is cheap to replace, if you want a minimum amount of insurance cover, your confidence that you can solve maintenance losses yourself, and on situations where you can’t afford full compressive car insurance. The premium of this policy is a bit lower compared to compressive one.

Third party only

This is the common insurance policy and it the policy that is minimum required by law in almost every country. The purpose of this cover is to ensure that third parties who might unfortunately get involved in accidents are covered.

This policy covers you if an accident occurs and you crash third party vehicle, damage to the property of the third party, any casualties to the passengers in either vehicle, casualties to the driver of the car you may have crashed.

The premium charges for this policy might be slightly lower in comparison to other policies but this is the minimum policy ones should have as you drive your vehicle.

As a customer you should make an informed decision as you go to the market to purchase these insurance policies and it is always good to read and understand well your insurance policy in order for you to get what is covered and has not been captured. The most favorable one is compressive cover because one can demand for claims for accidents that were not your faults or where the fault can’t be proven. If you want peace of mind while you’re driving your vehicle looks for cover that suits your needs.


Things You Should Know About CNG Cars

The natural gas in the form of liquefied natural gas (LNG) or in the form of compressed natural gas (CNG) is an alternative to fossil fuels in vehicles.  It is estimated that out of the 23 million CNG vehicles in the world India has 1.8 million vehicles. Add-on type CNG kits are available in the market for converting petrol cars to bi-fuel vehicles. The Maruti Suzuki, the Tata and the Honda are the leaders in this field.

Maruti Suzuki Alto

The bestselling Alto 800 has one CNG variant the LXi CNG priced Rupees 3.69 lakh. The 796 cc, 47 bhp and 69 NM torque engine gives mileages of 30.46 kmpl. The Alto K10 also has one CNG variant, the LXi CNG priced Rupees 3.98 lakh giving mileages of 32.26 kmpl. Both the vehicles have features like an engine immobiliser, a manual AC, fabric seats and internally operated black ORVMs.

Maruti Suzuki Celerio

The Celerio has 2 CNG variants, the VXi CNG and the VXi CNG (O) priced Rupees 4.92 and 5.04 respectively. The 998 cc engine gives mileages of 31.79 kmpl. The features of the Option variant include 2 air bags, an engine immobiliser, central locking, a manual AC and internally operated body coloured ORVMs.

Maruti Suzuki Wagon R

The Wagon R LXi CNG Avance LE variant priced Rupees 4.69 lakh gives mileages of 20.5 kmpl. The features include a manual AC, power windows and 2 Din music system with Bluetooth connectivity.

Tata Vehicles

The Tata Nano XM CNG variant priced Rupees 2.33 lakh gives mileages of 25.35 kmpl. The features include a manual AC and externally operated body coloured ORVMs. The hatchback Indica eV2 ha s two CNG variants priced Rupees 4.04 and 4.32 lakh giving mileages of 23.7 kmpl. The top variant has features like a manual AC, electric ORVMs and a 2 Din music system with Bluetooth connectivity.

Honda Amaze

The Honda Amaze has a CNG variant, the 1.25 Plus i-VTEC priced Rupees 6.03 lakh. The 1.2L engine gives mileages of 18.0 kmpl. The features include a manual AC, tilt steering, power windows, electric body coloured ORVMs and a 2 Din music system.

Utility Vehicles

The MUV MarutiEeco has 2 variants the 5STR CNG and the 5STR AC CNG priced Rupees 3.83 and 4.19 lakh giving mileages of 20 kmpl. The MPV MarutiErtigaVXi CNG is priced Rupees 7.86 lakh. The car has features like 2 air bags, ABS, EBD, a manual AC and a 2 Din music system with digital display and Bluetooth connectivity.

Our views

The CNG vehicles are fuel efficient and environment-friendly. With improved availability of filling stations more CNG vehicles are expected in the Indian market.

How to Find the Best Whole Life Insurance Policy?

You’re shopping around for whole life insurance, but which policy is the best one for you? You will find that there are a lot of companies out there, like Aflac, which offers life insurance policies for individuals and families. It is important to note, though, that Aflac is not health insurance – they only offer supplemental health coverage, so if you need a health policy, you’ll have to get it from somewhere else.

The whole life insurance you purchase is a good one if it has the following qualities:

  • It offers coverage for your entire life
  • The payments don’t fluctuate – known as a level premium
  • The return on cash value that accumulates should be guaranteed

These are concerns that should be addressed before you decide to purchase any policy. It’s a good idea to speak with a financial advisor to ensure you can afford whole life insurance and that it’s a good investment for your situation. Avoid going to an advisor that makes commission on sales, and instead choose one that is fee-only.


Choosing the Coverage

The first thing you have to do is determine the type of coverage you need. You won’t find many companies that offer small amounts for whole life insurance, so if you’re looking for $10,000 to cover funeral costs, then you should opt for term life insurance. You’ll have to shop around to get the coverage you and your family need.

Determining How Much Coverage to Buy

If you were to pass away, how much would your family need to survive? If you’re the main bread winner, then you should buy a policy that is eight to 10 times your annual income. You should also add in any debts you currently owe for houses, buildings, vehicles, loans and credit cards.

The Different Approval Processes

Not all approval processes are the same. Some insurers will ask questions about your health, but won’t require a medical exam. Then there are others that don’t ask any health questions and promise that you’ll be approved no matter what.

If you’ve already been turned down from a standard life insurance policy because of your health issues, then you will have to find a policy elsewhere. Just be prepared for there to be a few downsides, such as higher rates or medical exams. You should also pay attention to the benefit terms – some won’t pay the full death benefit if you die within the first few years after you bought the coverage.

If you’re living with some health issues, you can usually find a good price for a fully underwritten policy, which asks questions about your health and requires a medical exam.

What’s the Rate of Return on Cash Value?

There’s a cash value savings account offered through most whole life insurance policies. A percentage of your premium is placed into this account, slowly growing it. It is tax-deferred and can be used to purchase additional coverage or withdrawn when you surrender the policy. Just note that the death benefit will be reduced if you don’t repay it and if you surrender the policy, it will disappear.