Life insurance protects the customer or Economic Value?

I've listened to the opinion of some people about life. Some say: "Life is God's business. Insuring that our souls before God's will. "

So to speak. And the fact is, indeed, quite a lot of people are allergic to hear the word 'insurance'. The funny thing is, those who are allergic to this insurance did not hesitate to insure your car, motorcycle or houses they have.

Hence, not surprisingly, the majority owner of a motor vehicle to protect the economic value of vehicles with insurance, while only about 3% of all Indonesian people who consciously protect themselves with the economic value of life insurance.

Actually life insurance is not to protect our souls. But rather to protect the economic value of ourselves. For example, if we are able to provide 5 million dollars every month for our family a decent living, then life insurance helps us to ensure that the economic lives of our families by spending 5 million dollars that could be kept awake, 'even if' something happens that causes us could no longer make money. We do not expect 'something' was happening.

But who can ensure the future?

Therefore, try to ponder: If the economic value of our car or house just protected, why do we not protect the economic value of our self? Is a car or a house is more valuable than ourselves?

If our employees, try to check whether the company where we work is to provide life insurance for us. Company-a good company usually provides life insurance for his employees. But there are 2 things we need to do:

First, ask the HRD, whether insurance is provided only for as long we work in the company, or can proceed alone if we stop working.

In general, if employees resign or retire, so his life insurance will be disconnected automatically. Therefore, consideration should be given to purchase their own insurance. Unless we plan to work on as a professional.

However, consideration should be too, if we retire, whether that protection can be taken away as a retirement package or not.

Second, if the company has provided insurance that we can manage themselves (you can take them away and continued his own) so maybe it's time to do financial planning or school fees of children in the future.

There are those who prefer to save every month in the bank, and not taken-taken. No matter if we can be disciplined way. But if not, maybe insurance education can be the solution.

Apart from that, insurance has the advantage of education in terms of protection, which is not owned by the education savings.

The principle is: if there is 'something' in us, so our children still get the education funding guarantee in accordance with what we planned.

Even if we do not want to buy an insurance policy, we do not hesitate to consult with insurance agents. It would not hurt if we understand the mechanism of this model of financial planning.

At least, we can compare it with financial planning strategies that we run today. Although we do not buy insurance policy from them, they are usually happy to help us to design a long-term financial plan we are. That is, we can get a free consultation about our financial planning. Not bad right?

We have had a lot of insurance combined with investment. So, you will get benefits of protection, while viewing portion of the money you paid as savings or investments that continue to grow and develop.

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Pay-as-you-drive Insurance Plans Inching Closer in the State of California

Recent developments in California signal changes in the insurance landscape of the State. California Insurance Commissioner, Steve Poizner, recently released policies that in effect permit monitoring and verification of miles used for pay-as-you-drive insurance plans.

The system of pay-as-you drive insurance plans is similar to pre-paid mobile phones, where policyholders pay premium based on the number of miles travelled, as in the case of phone subscribers, they only pay for minutes consumed. In effect, the lesser one drives, the lesser he pays; the more one drives the more premium he pays. This type of plan is very democratic and highly practical.

Environmental groups hope that pay-as-you drive insurance plans would encourage people to be more responsible with their driving habits, ultimately creating a scenario where drivers would choose to walk or take public transport rather than pay for high premium fees.

MileMeter, a company operating out of Texas, is the first company to step forward and offer pay-as-you-drive plans that are initially valid for six months. This is the first time that a company would be branching out of their Texas headquarters.

This company is targeting specific segments of the market, in particular, motorists who are paying high premiums or people who are enrolled on affordable, but bare and inadequate insurance plans.

Pay-as-you-drive plans are not new to this state, as some coverage plans are partly based on amount of miles driven; however, insurance companies are prohibited from verifying the mileage of policyholders. This makes the system prone and open to abuse as well as tampering.

Studies conducted by research institutions revealed that if all drivers nationwide would be enrolled on plans based on miles, there would be a significant drop in gas consumption and driving hours. Furthermore, research also found that drivers on these types of plans can stand to benefit savings of up to $270 per car.

However, not all Californians are in favour of this recent measure. Some people find regulation to be intrusive and these individuals do not savour the idea of having someone track their movements.

Other respondents see the regulatory policy as an attempt of the state to control citizens. They added that State government clearly wants to dictate the behaviour of Californians by implementing measures designed to compel citizens to limit or curtail movements and activities, which to them is an indirect infringement to one’s freedom.

More enthusiastic groups lauded the move and expressed relief that the regulation would now recognize people who drive their cars less in the form of lower premiums, while those who drive around a lot would have to shell out more for premiums.

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Economic Downturn Increases Risk

Surviving family and friends do not only deal with emotional stress, but also financial distress. Things turn up a notch higher in these difficult business conditions where people forego a lot of conveniences because of tight finances.

Just recently a massive traffic accident occurred in Louisiana that resulted in the deaths of five people. The lone survivor of the accident, an elderly woman broke both her legs. She lost her son, grandchildren, and daughter who all perished in the mishap. The elderly is still confined in a hospital undergoing treatment and rehabilitation.Incidents like these remind people how important insurance coverage is and how crucial a role it plays in contingencies.

Insurance experts advise people to assess their risk profile first to give them an idea on what kinds of insurance plans might be of good use to them and what would suit them best. Now more than ever, the recession has made people less particular of insurance products that would best suit them. Today’s driver seems to be more concerned on what are the cheapest plans available.

Research reveals that a mere 20% of adult drivers have insurance. What compounds the problem is that 30% percent of the total insured population have inadequate insurance. A small percentage of people who can afford coverage these days prefer really basic almost strip down bare insurance plans. However, such types of insurance do not provide adequate protection to policyholders, and are not of much use in major events.

Two industry insiders were asked if the current economic weakness had a direct impact to their business. The two executives from Farmers denied of any financial struggles inside their company. They added that Farmers had invested in secure government instruments beforehand and so when the recession got into full swing, the company did not panic since they had enough buffer resources to stay afloat. Farmers is currently, and still remains as, one of the top employers in Hillsboro, Oregon employing thousands of locals.

Since people are penny-pinching because of the uninspiring economic condition and opting for cheap insurance plans, they are effectively putting themselves to greater risks when they are on the road. Nevertheless it is comforting to know that some forward looking insurance companies have made wide investments in the past that are serving them well today. For people who are on the lookout for an insurance company today, it is reassuring to know that there are still strong insurance companies out there which are financially stable, secure and thriving even in today’s severe economic condition.

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