The insurance that covers the risk of amount that you have to pay a customer if he or she is injured in your business premises is known as public liability insurance. It will also cover any damage that is caused to their property by your business. Furthermore this insurance will reimburse any money that you have paid as legal charges for defending any such claims. This becomes crucial when you have to pay a huge amount of money as legal fees even if the court doesn't award any damages. What is the use of public liability insurance? The need for public liability insurance is understood by the fact no one can run a business that has no risk at all. You should never ignore the risk factors that are related to any business. You can never completely remove risk from any business. Furthermore it is the duty of the business to compensate cash for any injury to the customer or loss of his property caused because of your business. This should never be taken lightly as this can go more than a million dollars. What you can do is buy this public insurance policy so that you will not have to pack your bags when a disaster like this occurs. You don't have to worry even if the claim is huge; the insurance company will be there for your rescue and will reimburse the claim as well as the amount paid as the legal fees. Here are few examples of when you would require public liability insurance. Just imagine that you have a plumbing company. You get a call from a client about some repair in his kitchen. You go to his place and start work and by mistake you burst a pipe. The water gushes out spoils the computer system nearby and also the priceless Persian carpet. You will definitely have to compensate for all this. Here is one more example. You are running a marketing business. Your client visits you in your office and to your bad luck; he twists his ankle because of the poor carpeting system in your office. You will surely have to pay compensation for his injury. Likewise, you have a construction business, and one of your employees drops something really heavy on a parked car. You will have to compensate for that. here is much debate over which is better, term life insurance or whole (permanent) life insurance. Each type of policy has its pros and cons. To understand the benefits of both it is it necessary to understand the differences in each type of policy. Term life is called pure insurance because you are only paying for protection for a specific amount of time. Whole life offers not only protection, but it also has an investment benefit. Your age, family status, income and the time you expect to keep your policy active all play important roles in deciding which type of policy is best for you. A person who has a family will need more life insurance than someone who is single. If you have a family and want to save for your children's college you may want to consider whole life. Whole Life Insurance Basically whole life is taken out for your lifetime, usually at least 20 years, and not only gives you protection in the event of your death, but a cash surrender value builds up through the years. After you pay your premiums for a specified amount of time you can receive the cash value of your policy. Normally it takes several years for the cash value to mature and if you need the money before your policy is mature, you will be charged a hefty fee for cashing it out early. A portion of your premiums are used for death protection and a portion is used for investment. Each insurance company has their own investment structures so be sure to ask where your money will be invested. Most companies invest in bonds and stocks so your return may be lower or higher depending on the health of the market. Premiums for whole life policies are generally much higher than for term. Some people feel that whole life policies are a good investment while others in the industry feel that they are not a good investment when compared to other investment options. Term Life Insurance Term life insurance is fairly simple. You pay your premiums for the duration of your policy and if you die your beneficiaries receive the value of your policy. Term life policies are usually for only 10 years and then you have the option to renew them or take out a higher or lower amount. Premiums for term life insurance are based on your age, your health, your marital status and the type of work you do, and are lower than whole life policies. Unlike whole life there is no investment component and no cash value. If you cancel your policy your coverage will end and you will not receive any money. These types of policies are ideal for you if all you want is protection for your family in the event of your death. Many people in the insurance industry feel that term life insurance is your best choice. Which is Best? Which type of policy is best is not a question with an easy answer. Term life and whole life both have their pluses and drawbacks. You will need to examine your particular situation and plans for the future.
Life insurance is an important investment for the protection of your family. Insurance premiums are based on many factors. These premiums may seem hard to understand and complicated, but once you have an understanding of the basics, you can then see how simple lifestyle choices can affect the amount of money you pay for life insurance. Life insurance companies have different tiers of classification and each company has different guidelines set for their classifications. These tiers go from preferred to standard with standard being the more expensive. Two of the greatest factors are your age and health. A person that is young will pay much less than a person who is elderly. This is because the projected time that the insurance premiums will be paid is longer for a young person. For example, a 30 year old man who takes out a $500,000 policy will pay on it much longer than a man who is 60 years old. Insurance companies take this into consideration when setting the premiums. Your health has a great affect on your premiums. A person who is in good health, at their target weight, has normal blood pressure, normal cholesterol and triglyceride levels will pay much less than someone who has health conditions such as diabetes or high blood pressure. Smokers also pay more because of the greater risk of cardiovascular disease, cancer and stroke. The good news is that once you are put into a classification, you can't be bumped up into a higher one if you become ill. On the other hand, if you have health issues or smoke when you take out your policy, and you then become healthier or quit smoking, you can revisit your policy and be put into a better classification (and consequently have lower life insurance premiums). Other factors that can affect your premiums include the job you hold, if you are in the military, your driving record, if you engage in high-risk activities, if you travel extensively and your criminal record. All of these raise your risk of death and injury, and in turn, your life insurance premiums. You can lower your premiums by making healthy lifestyle choices. If you are overweight, even a loss of just 10% of your body weight will significantly lower your blood pressure and risk for stroke. Stop smoking and your health will improve greatly, as well as your risk for cancer and stroke will decrease. Avoid dangerous activities, such as extreme sports, and only travel in areas that are considered safe. The amount of protection you want will also affect your life insurance premiums. It stands to reason that the more insurance you take out, the higher your premiums will be. When you are considering life insurance, review your current situation and how much protection you need for your family. Also review your lifestyle and see if there are any areas you can easily improve before you shop for life insurance.
