The Importance of an Insurance Portfolio vs. a Single Policy

The idea that one insurance policy is supposed to cover everything is a ridiculous trend that should be stopped in its tracks. Indeed, residents are being told that they should search for policies that cover as many things as possible, rather than targeting specific policies that can be custom written and adjusted to meet your specific needs. The reason for this is that there’s an impression that the additional costs of fine tuning don’t turn into savings for the average consumer, but that’s not the case at all. If anything, a policy that covers everything cannot necessarily cover everything well.

Insurance Portfolio

If you want to truly protect your family, you need to stop thinking in these terms and start looking at which policies are going to be a good fit. There are a few steps to getting started.

First and foremost, you need to take honest inventory of your life right now, as well as your goals for the future. This can take time, because we don’t often spend enough time thinking about our goals, or our life as it stands. Don’t overlook your budget, either. Being open about how much money you have to invest in insurance policies will be extremely important.

Next, you need to shop around for quotes instead of falling in love with the first policy. A lot of people try to just go with the first policy they see, rather than searching around a little more. The difference in savings could be a lot more than you realize, but you won’t know until you do the research yourself.

Finally, you need to read the finer details yourself, and be willing to ask questions on things that you don’t know. For some reason, people hate asking questions. They think that if they ask too many questions, suddenly the policy that they’re interested in will go away. That isn’t the case at all. Remember that the insurance person on the other end of the line is looking for a commission, so it’s in their best interests to close the deal while being as honest as possible. Ruining the integrity of a sale is a bad thing on their part, because if you don’t trust them you’ll switch providers in a flash.

Keep thinking over the type of insurance you want, and hunt for it online. You’ll save time and money, two things that are always good to have on hand!

Unit-linked Insurance Plans (ulips) Sales Falling

Unit-linked insurance plans (Ulips) have come under regulations causing sales to drop precipitously. While consumers have benefited, the insurance industry has suffered a tremendous reduction in cash flow and profits.

Unit-linked plans offer coverage directly linked to another product such as a mortgage. Distributors were making commissions as high as 35 percent of the first year’s insurance payments. Regulators introduced a flat 4 percent commission to protect consumers from hard-sell tactics. The product was also regulated to stop insurance churn, a practice which leads consumers to purchase the product but eventually drop it. This turnover provides cash flow to companies without benefits to consumers.

Unit-linked insurance plans had become the life-blood of new growth. Starting in 2000, the insurance industry was deregulated. A new industry emerged including private ventures with foreign ownership. It fueled speculation and investment, and this created a steady increase in capitalization.. With the introduction of Ulips, insurance earnings mushroomed. At its peak, Ulips accounted for 90 percent of all new monies.

In six months of regulation, sales fell 45 percent. It has shrunk working capital, has driven away stockholders and may account for increases in life insurance premiums. This has happened at the same time that mutual fund regulations have steered investments to traditional savings plans, and poor market returns have hurt stock portfolios.

Insurance experts are hoping that the Ulips decline can be offset by sales of other products such as bancassurance. Insurers are reaching out to banks for cross-selling products. This already contributes some 25 percent in growth for some insurers. Savings protection plans are expected to become a new avenue for sales. Of course, insurance companies are also hoping for a rebound in India’s economy to improve overall sales.

Think About Unemployment Insurance Before the New Year Begins!

This is a time of year where most of us are with our families, but that doesn’t mean that all of our thoughts need to be on fun and entertainment. The truth is that the New Year will be on top of us before we know it. This means that you’re going to have to make sure that you have things taken care of for your family’s sake. For example, do you really know what would happen if you were made redundant? Would you be able to pay your bills, or would be stuck spinning your wheels wondering what to really do?

That’s something that you need to be cautious about. Just because you have some savings in the bank now doesn’t mean that they will last long enough for you to find another job. Unemployment insurance can cover multiple situations, but the truth is that you really have to start looking before you need it. Why? Well, it’s simple — there is often a waiting period that has to pass before you actually qualify for the benefits that you’re trying to get. Once that waiting period ends, however, you get the money that you need to take care of yourself. How long can unemployment insurance cover you? Well, it can actually protect your family for just to 24 months. Did you know that unemployment isn’t the only thing that it can cover? You can be protected in the event of accident and sickness?

Now, as UK residents and citizens, we have benefits from the Government that can help us out in a pinch as well. Unfortunately, there’s no telling how long it will take for those to kick in. The Government can be delayed due to how many people are trying to be processed for this type of thing. You really just have to make sure that you have all of your ducks in a row on your own. This is a private solution that could actually benefit you more than meets the eye.

Trust us — nobody really thinks that they’re going to be made redundant. Nobody really thinks that they’re going to have to suddenly struggle to take care of their families. But this market is becoming more and more uncertain, and that means that we all need to do what we can.

The next step that you need to take would be to compare the market options. Just going with the first insurance policy is a waste of time as well as money. The first choice usually isn’t the best choice. You need to ensure that you’re comparing policies in an “apples to apples” manner. This sometimes means that you’re going to have to ask some tough questions to get down to the bottom of things.

Please do not assume that unemployment insurance is going to match your salary pound for pound. It won’t do that. However, you can get pretty close. In addition, you may also want to add on other products to your policy, such as bill protection insurance, loan protection or even mortgage protection. If you have the extra money in your budget, you really can’t go wrong with this high degree of protection for your family.

Check it out today, while it’s still on your mind.