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Low-cost insurance vs. Traditional insurance

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Low-cost insurance vs. Traditional insurance

The word low-cost has fully entered our vocabulary, we find it associated with flights, hotels, vacations, telephony, or insurance.

It’s been a few years since the crisis began and since then we don’t know where to scratch to save on expenses. In this economic environment, any savings are important, the insurance sector knows it and the offer of low-cost insurance is increasingly attractive and tempting.

This insurance offer is linked to insurers that have made direct sales, using new technologies, their only distribution channel. These offers, car or home insurance at half price, have surely surprised you.

How is it possible that there is so much difference between some insurance and others?

I will try to explain it to you.

Internet and low-cost insurance

Earning money is the goal of traditional and low-cost insurers. Do not think that the latter do charitable work and that is why their prices are cheaper.

But how can they lower the price and offer adequate services to their customers?

The answer is that they take advantage of technology to maintain a direct relationship with the customer. The telephone and the Internet are the channels through which they operate in the market.

With this, they do not need to maintain a network of offices, commercials, or intermediaries that traditional insurers have. This represents a significant saving.

But, in addition, it is you as the policyholder who is going to manage the insurance. You do it at the time of hiring, during maintenance, and after-sales service. All this represents more than 40% savings for the insurer.

There are still many consumers who value direct treatment, the advice of an expert professional, or the possibility of going physically to the company’s offices. But it is no less true and the figures indicate it, that there are many customers, including the youngest, millennials, who have become used to using technology in almost all aspects of their lives and for whom these products are specially designed.

One piece of information: in 2015 Internet insurance sales have exceeded 500 million dollars.

Who is behind the low-cost insurers?

The direct insurance market in this country is made up of mutual insurance companies, which are unfortunately fewer and fewer, and insurance companies.

What advantages do these insurances have?

You may have noticed that low-cost insurance is designed for a certain group where the price is the first reason for choosing.

In the case of car insurance, the price difference is due to a lower number of guarantees contracted. Because the insured capital is lower compared to the traditional product. And benefits are limited to a certain number in each insurance annuity.

If you drive your car little, your exposure to having an accident is less. In that case, with little more than the mandatory insurance, you will have enough and you will not need accident insurance for the driver. You only move around the city, you hardly go out on the road, you may be interested in dispensing with travel assistance.

This only fits inflexible products such as these. In them, the policyholder can expand the basic coverage with those that interest him most in each case.

Almost all insurers, for years, have tried to facilitate payment by dividing the insurance premium, but it is the low-cost insurers who do it in a more affordable way. You also have the possibility of paying it using your credit card.

Not all that glitters is gold

So far everything seems advantageous. On paper, there seems to be no reason not to take out insurance with a low-cost carrier. But as is often the case, all that glitters is not gold.

Paying a lower price for insurance cannot be linked to having worse coverage.

The savings you get when you hire the same coverage at a cheaper price.

And this is where low-cost insurance can play tricks on you.

It is very important to read the insurance policy before signing it to check that it complies with the contract. Compared to the traditional policy, you can find yourself with much lower capital in guarantees such as driver accidents, glass or legal defense, and important limitations in travel assistance or repairs in non-arranged workshops.

You should also say that you will not have an office to go to. Not a physical interlocutor to contact. Your problems and claims will be dealt with.

Conclusion

Be very careful because the flexibility in contracting these policies have can make you pay much more for your insurance than if you had contracted it in a traditional way.

To make online contracting more attractive, insurers use commercial hooks. They use discounts the first year that disappear with the renewal of the insurance. And then comes the surprise, the price has skyrocketed.

The ease of contracting by paying with a card can turn into a nightmare with renewal. They have raised your insurance but you cannot return the charge because you did not request the cancellation on time.

It’s your turn, leave us your answer to the question in the comments, we are waiting for you to discuss the matter.

Have you ever taken out low-cost insurance, are you happy with the service it provides you?

If my job is as a householder, why do I need insurance

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householder insurance

A few days ago I found myself in the middle of a conversation between a master and a housewife. They talked about how they got to that situation. The reasons were different, one had chosen freely, the other had been chosen by his company. Now they both did the same thing, work at home and received the same remuneration: none.

Being a housewife (or housewife) is not paid and also has no price …


Are you sure it’s priceless?

It is true that it is a job that does not contribute income to the family economy, but it is no less true that it prevents expenses from being generated. There are many tasks in the daily life of the householder: taking care of the children, cleaning, cooking or washing, and ironing, among others.

If you missed that job, what would happen?

That is where we begin to quantify the price of being a homemaker or master. If you are not you would have to ” outsource ” those tasks, and pay for them. The Higher Council for Scientific Research estimates that the work of housewives is equivalent to about 425,000 million dollars.

Insurance for the work of the master (or housewife)

Statistically, the home is one of the places where more accidents occur, perhaps because we feel confident. There are all kinds: falls burns with oil or the iron, cuts with knives, or scissors. These are small or large accidents suffered by those who are exposed to them, the housewife and mistress.

You will agree with me that working at home has its risks. Unforeseen events such as accidents, illnesses, or the absence of those who carry them out, advise insuring against them. Consequently, there are many insurers that have created specific insurance for masters and housewives.

The first thing you have to do when looking for good insurance is to assess the guarantees you need. For example, insurance that covers you with an economic compensation that serves to pay the salary of whoever replaces you in your job, if you suffer an accident or illness.

This is just one of the many coverages you can choose from. But you can also include medical assistance in case of illness, home assistance, or the hiring of capital in the case of permanent disability or serious illness. And why not, in case of death the payment of capital to your family.

I want to insist that you should not underestimate the risks involved in working at home. Therefore, you should choose the guarantees that best suit you, but without forgetting that insurance is not free, so you should think about whether it has a place in your budget.

Now tell me, what risks do you consider that you have to insure as a master or housewife?

How to buy life insurance: 5 things to keep in mind

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buy life insurance

On more than one occasion, you will have kept awake worried about how your family will live if something happens to you. Do not look for the remedy in the pharmacy, although you can also find it, better look for it in good life insurance.

What if I have an accident that prevents me from going back to work?

What if I am unemployed and cannot find a job at my age?

How much will I have left when I retire, will I be able to live with the pension?

Living quietly can be cheaper than you think. You just have to keep these 5 things in mind before taking out good life insurance.

#1. Why do I want to take out life insurance?

The first thing you have to evaluate before purchasing life insurance is what you want it for, what are the coverages you need. To give you a quick idea there are 3 groups of life insurance.

1.1 Life risk insurance

It groups together all the modalities in which death is the trigger for the insurance benefit, paying capital to the beneficiaries of the insured.

1.2 Life insurance savings

Its purpose, as you can imagine, is to accumulate capital that we will be able to make effects on the contract termination date. An example: at the time of retirement or when your daughter starts college.

1.3 Mixed life insurance

It combines the two previous modalities: in the event of death before the end of the contract, the beneficiaries will collect the agreed capital. In case of survival, it is the insured himself who will collect the accumulated capital of the savings.

#2. A personal audit, what resources do I have?

Income, expenses, future commitments, equity, four concepts that you must analyze.

You have to start by calculating what your family expenses are and what income you have, not only now, you should make a future projection, no one better than you to evaluate the possibilities you have.

You must think about the commitments made and their extension over time, loans, or mortgages that you will have to continue paying. But also with the patrimony that you can leave and the returns that it can generate.

The result of that small personal audit will help you to know what capital you should insure.

#3. How healthy am I?

You should not only take into account the purely economic aspects but also personal, health.

I’m like a kid, made a bull!

Be careful not to confuse wishes with reality, it will depend on the insurance you choose that you have to pass a medical examination.

The higher the insured capital, the greater the chances of this happening. If you do not have to carry out the medical examination, you will have to fill out a declaration of health status, in which I advise you not to hide any information.

Age, health status, or profession determine the premiums you will have to pay for life insurance as they define the risk assumed by the insurer.

#4. A personalized insurance for my needs

The moment of truth has arrived, choosing the product that best suits what you are looking for. The offer in the insurance market is very wide so you have a lot to choose from.

Don’t be dazzled by advertising, because it’s just marketing. You must be very clear about what the product offers you, the different forms of compensation it has, its limitations, or if you can customize it by adding or removing coverage.

#5. Costs and taxation

You only have to read the conditions of the contract. Clarify all the doubts you have. Pay special attention that the personal data is correct, that the dates linked to the contract are correct or that the beneficiaries are those you have designated, and above all, the insurance costs.

Premiums in risk life insurance tend to increase year by year depending on age, the same can happen to you in savings life insurance if you have chosen to increase the annual fee in percentage terms, so you have to think that in the future your economy will have to bear this increase.

You should also think about taxation, because there are several forms of taxation that you can find at the time of receiving the savings, depending on the type of life insurance you have contracted.

Conclusion

As you can see, sleeping peacefully doesn’t cost that much if you can afford it. It is only a matter of investing a little time in choosing the best life insurance and allocating the money necessary to ensure a better retirement or guarantee your assets in your absence.

Now it’s your turn, that’s why I’ll leave you this question and I’ll wait for you in the comments where we can discuss your answer

What life insurance do you have contracted or which do you think you need?

Do I have to insure the house with the bank that gives me the mortgage

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insure the house

Yesterday I went to the bank to request a mortgage, rather a second mortgage, that things are still bad. I did it thinking about canceling the first one and getting some liquidity to plug holes.

The employee who attended me was telling me the requirements that I had to meet: direct payroll, several receipts, a credit card, and …

Buy at least two insurance: one for home and the other for life.

Ask if it was mandatory and the answer was:

– No, but still …, if not …, it is possible that …

Come on, if you want the credit, you should accept the conditions.

It is true that when it comes to formalizing a mortgage loan to buy a home, the law requires the contracting of damage insurance.

It seems logical that whoever grants the loan has insurance in case the guarantee for which the loan is granted disappears. The possible fire of the property or the consequences of natural risks, such as storms, storms, or floods is reason enough for this guarantee to disappear.

The assets on which the mortgage guarantee is constituted must have insurance against damages appropriate to their nature.

But the law does not say that the insurance has to be contracted with the same entity that grants the mortgage. It is only part of the dirty game with which banks act when granting credit.

The deception of mortgage-linked products

The bank to its own: I give the money, I put the conditions.

And of course, they are never to the benefit of the consumer. You will find a series of insurance contracts linked to mortgage credit, many times unnecessary for you.

Thus, to the direct debit of the payroll, the home receipts, or the hiring of cards, it is added as a requirement for the granting of the loan, to contract home insurance, another life insurance, and even another payment protection.

Not only do they play with the requirement of taking out certain insurance, but they also play with the duration or with the insured capital.

These are three types of insurance whose contracting is usually imposed by the bank.

#1. Home damage insurance

The requirement to ensure capital for the continent equal to or greater than that of the property appraisal. It is not broken down and therefore uninsurable assets are not excluded due to their nature, in particular the value of the land. This means that there is insurance for which in the event of a claim you will not charge more but you will be paying more for the insurance.

You should also bear in mind that in the mortgage contract they will not be able to establish a commitment of duration greater than 10 years since this is the maximum duration allowed by the Insurance Contract Law. Nor may it have a duration greater than that of the mortgage.

#2. Life insurance

If you ask for a breakdown of what you are going to pay for the mortgage and you do it by concepts, the loan will be given in detail, the linked insurance will only be a reference.

While the loan payment may be the same every month, in the case of the policy, no. Life insurance will increase according to the age of the insured, so you can start paying little and then increase considerably as you age.

#3. Payment protection insurance

It is the least frequent type of insurance among linked insurances, quite controversial at the time of the provision, but with a good commercial hook in the times that run since it guarantees the collection of a capital that allows you to meet the payments of the mortgage in certain situations: unemployment, disability, death.

To the premiums that you have to pay for each of these insurances, it is necessary to add sometimes the payment of the expenses that it supposes to carry out the medical examination required in some of these modalities to prove your state of health.

But be careful that we are not only talking about money, we are also talking about the rights of the mortgaged.

Can I contract the insurance with the insurance company I want?

Since the first European Directive on mortgages was published in February 2014, banks have been prohibited from linking a mortgage to taking out insurance.

Currently, the bank cannot deny you the granting of a mortgage loan for not contracting the insurance. But they can deny your concession under preferential conditions, as would have been the case when contracting insurance.

As long as the loan conditions interest you, you can accept the insurance contract. After the first year has elapsed, replacing it with the one you contract with an independent insurer.

What rights does the bank have on compensation?

When we talk about damage insurance, we talk about insurance that has an indemnity nature. Only the owner of the property can collect compensation, otherwise, there would be an unjust enrichment of the person who charges because they have not suffered damage to their assets.

In the case of the mortgagee, an exception occurs that is regulated in articles 40 to 42, which in summary establish:

  • The mortgagee has a right to compensation in the event of destruction of the mortgaged property in such a way that it can enforce that right in the event of a loss. That is why the law requires the insured to notify the insurer of the existence of the mortgage.
  • In the event of a claim, the insurer will request the consent of the creditor to pay compensation to the insured. If there is no agreement between the holder of the guarantee (the bank) and the insured, the insurer will have to consign the compensation.
  • The insurer must notify the mortgagee of the termination of the insurance contract or the non-payment of the premium owed. The extinction of the opposite can not be opposed to the bank until one month after the fact that motivated the extinction was communicated to it, in addition, it may pay the unpaid premium, to protect its right, even in the face of the opinion of the policyholder. 

What happens if I want to change my insurance company?

If you consider changing your insurance company after all of the above, you will have to notify them of the cancellation of the contract in advance, before the deadlines set by law. At the same time, you will have to take out the new insurance from which you will have to deliver to the bank the documentation that proves your status as a mortgagee.

In this way, the bank’s right is safeguarded so you should not have any problem with the change.

Can I be required to pay my insurance at one time?

Yes.

You will always be the one who chooses the form of payment of the contract linked to its duration. You will be able to choose between a single premium multi-year insurance, which you pay once, or with a renewable annual duration.

If you opt for the first, the law does not allow you to take out damage insurance for a duration of more than ten years. If you repay the loan before ten years, the bank or its insurer must reimburse you for the period of coverage not consumed, if this is established in the insurance or mortgage contract.

The most logical option is that the duration of the policy is temporary, renewable from year to year. In this way, you can cancel it whenever you want in search of alternatives with better benefits and a lower price.

Three recommendations before subscribing to your mortgage loan

When I left the bank I went to see my insurance advisor see what I could do. He informed me of all the above and made three recommendations and some numbers. He compared the cost of insurance by contracting it outside the bank and the increase in the fee after increasing the mortgage spread.

Here are the 3 recommendations and the result of the comparison. It will surprise you!

  1. Find the mortgage that has the least associated insurance.
  2. Ask what the mortgage would look like by removing some insurance and negotiating an adjustment to the conditions.
  3. Make numbers and see if you are interested in a mortgage without linked insurance
In my case, contracting insurance outside the bank, the annual saving is 182.75 dollars (2 months of the gas bill)

A few seconds of reflection before going to the comments where you can leave your answer to these questions:

Do you have insurance linked to your mortgage contracted with the bank? Do they meet your needs?

15 tips to to choose good health insurance

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choose health insurance

Thinking of buying health insurance? Many consumers have already bought it, but there are many others who regret not having known how to choose between …

A few days ago a good friend told me that before purchasing health insurance, the insurer had already excluded him from assistance derived from a previous pathology. How do you know what I think of private health insurance? He would tell me in case he could find an article.

Quite a challenge for me, and for you reading it if you have ever thought about taking out health insurance. I will teach you to distinguish what interests you the most.

We talk about health, your health, and that of your family, so any decision seems complicated. There are other series of circumstances that make it not easy to know if you are choosing the most appropriate insurance for your needs.

To make your task easier, I leave you a series of very useful tips when choosing your private health insurance.

How to choose good health insurance: 15 tips to get it right

Health insurance offers you a series of advantages, such as being able to choose the specialist that you like the most within a medical chart. It also gives you the ability to undergo prescribed diagnostic tests without having to be on a waiting list. But this is only the attractive part of the insurance.

1. Select the type of medical insurance

Choosing the type of insurance will be the first step you will have to take. Then others will come, such as selecting which coverage to include or if you are going to include the family.

This is a small summary of the modalities that you can find right now in the market:

1.1 Medical table

Medical table is assistance insurance where the insurer puts at your disposal a medical chart according to a catalog of specialties. It generally includes primary care to hospitalization.

the most widely contracted type of medical insurance, to which you can include the so-called copayment to reduce its price. We will see a little later how it works.

1.2 Reimbursement of expenses

The modality of reimbursement of expenses or of free medical choice allows you to choose the specialist you want, whether or not he is on the company’s medical chart. You will have to pay the bill and the insurer will reimburse you according to the percentage that you have agreed to in the policy, normally between 80 and 95%.

1.3 Mixed Insurance

There is a mixed formula that allows you to enjoy the medical chart and free-choice services. A complete modality and of course much more expensive.

2. Assess whether it is worth including the copayment

That the price of the insurance seems expensive because there you have the copayment. This is the amount that you will have to pay out of pocket for each medical assistance. It serves to lower the insurance premium but you will have to do some numbers before deciding to include it. Its inclusion is limited to the modalities where the assistance is carried out through a medical team. In the expense reimbursement mode, the copayment is equal to the percentage that the insurer will not pay you when it reimburses you for the cost of the benefit.

3. Contrast what is the experience of the insurer in health insurance

There are many insurers that market health insurance, but few that have a high level of specialization. Check their experience in the field, if it is the main one or is it one more in their product catalog.

Being prepared to respond to unforeseen situations, provide assistance abroad in case of emergency, or have a wide network of clinics and medical professionals, together with accessible customer service will give you an idea of the level of experience of the company. insurance carrier.

4. Value that you have a quality medical chart

It is about your health, it is mandatory to verify that the medical chart offered by the insurer is of quality.

How do I do it?

Checking that the medical staff includes prestigious professionals, specialists who enjoy professional recognition. The Internet can be a good tool to help you find quality information.

5. Verify the quality of healthcare centers

As important as the quality of the medical staff is that the centers where you are going to receive assistance are distinguished by having a good level of care, excellent facilities, and equipment. The proximity to your residence is a factor that should be weighed in the choice.

When we feel bad, everything becomes more distant and uphill.

6. Check if you have other additional services in your policy

As important as medical care is to have healthy habits. To help you, some insurers put at your disposal a series of services aimed at facilitating this task: telephone or online advice, spas at special prices or nutrition services, smoking cessation, or a personal trainer, are some of these services.

Ask if your policy incorporates them.

7. Quick access to authorizations

One of the problems with private health insurance is that each assistance needs the authorization of the insurer. It is essential that they have a good telephone, computer, or personal attention service that resolves the authorization quickly. Ask about the procedure and the means you are going to have, it will be very useful in your decision.

8. Ask about the consequences of using the services frequently

Many of the inquiries I receive are related to the increase in health insurance premiums from one year to the next and by surprise. One of the reasons for this increase is due to the frequent use of contracted services. It is very important to inform yourself about the consequences it has and the cost that it can entail. Premium increases of more than 10-15% per year are not unusual.

The diagnosis of certain diseases or the detection of certain pathologies was the reason for the insurer to rescind the policy. With the entry into force on January 1 of the changes introduced in the LCS, this is no longer possible if they have been known once the medical insurance has been subscribed. Disregards insurance that incorporates any clause that limits this right.

9. What grace periods will I have

By grace period we mean the time that has to elapse from when you take out the insurance until you are entitled to its benefits. In health insurance, several periods are usually established depending on which medical service is involved. Compare which one offers you shorter grace periods. Make sure that they are referred to in the contract conditions.

Make sure if you change companies and they offer you the insurance without deficiency that at the time of subscribing everything that they have offered you is in the clauses of the policy.

10. Check what coverage is included and excluded

Traditionally when we take out insurance, the determining factor in your choice is the price, in health insurance, be very careful. Basing your purchasing on price can be a problem in the medium term. Do not expose yourself to being said that this diagnostic test or certain medical consultation is not contracted in the policy.

Choosing good health insurance only depends on the time you spend analyzing all the coverages one by one.

11. Pre-existence and its consequences

Pre-existence is understood to be the pathology or disease that the person presents before the date of contracting the insurance. And what if I don’t know what I have? Well, you may have a problem if the insurer considers that it already existed before purchasing, even if the disease had not shown any symptoms until then.

Any reference that you find in the conditions of the contract in this section must be evaluated with great care.

12. Diseases or pathologies diagnosed or under treatment

Remember that at the beginning I was talking about how a friend had already been excluded from coverage before purchasing the insurance. He was sincere when filling out the health questionnaire that the insurance company gave him and the consequence has been that they have excluded treatment, surgery, and hospitalization for a certain pathology.

Declare to the company your real state of health will prevent that later, surely when you need it most, they reject the benefit for not having been sincere.

Depending on your health declaration, the company may limit coverage for a certain disease, accept full assistance, or may refuse to take out the insurance.

13. Review the clauses of the policy

Whenever I write an article where I advise on what to consider before purchasing insurance, I include this recommendation: review each and every one of the conditions of the policy. Your data as a policyholder or insured, the risk that is well defined, the duration of the contract and the form of payment, the deadlines to cancel the contract and in the case of health insurance, in addition to the general conditions that regulate it, all the information related to the medical staff, healthcare centers or telephone numbers and online addresses where to go if necessary.

Insist on asking if you have any doubts, it is preferable to postpone the purchasing until you have everything clear.

14. Search, compare and if you find something better … buy it

I was saying that the determining factor when choosing insurance is its price, often neglecting other factors that can be a problem.

And health insurance is no exception.

You will find a wide variety of offers at very tempting prices. Find the balance between coverage and price. Compare the prestige of the medical team, the quality of the healthcare centers, their facilities, and equipment. The proximity to your home, the additional services that they include, or the humane treatment they give you are elements that should influence your decision. And if after making the decision you find something better, buy it.

15. Determined to take out the insurance, the last choice

You have already chosen the insurer, the modality, the coverage, you only have one more step left before purchasing it. It remains for you to decide if you include the family in the policy, the best for you will also be for them. If you’re not convinced, you can always go back to the beginning of the article and review each of the 15 tips.

Thankful for getting here, look at the link if you have a prize with any tax reward.

Do you have health insurance, why did you choose that modality and not another?

Because we can’t see you in the comments where we can discuss this issue.

How to cancel insurance: Guide to do it efficiently

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cancel insurance

This article is intended to be a guide on how to cancel insurance efficiently. There are some factors that may go unnoticed and that justify that …

A good part of the inquiries I receive are related to the claim by the insurer for unpaid premiums.

This post could be very brief if I just tell you: meeting the deadlines set in the law will not have problems.

If you notice the title of the article, it talks about how to cancel the insurance and not when to do it.

There are some factors that may go unnoticed and that justify reading this little help guide.

The Insurance Contract Law, since last January 1, establishes that the cancellation of the insurance contract by the policyholder must be notified to the insurer at least one month before its expiration.

You are already clear that you must communicate your desire to cancel the contract within the legal term: at least one month before expiration.

How to cancel insurance efficiently

You should not forget that insurance is a contract in which both parties are bound by a series of commitments regulated by the contract itself and by the law that supports it.

Learning how to cancel the insurance contract and do it efficiently will save you trouble.

Opposition to the extension of the need to communicate in writing so convincing that there are no doubts of your desire. To do this I advise you:

  1. Certified letter or email addressed to the address that you will have from the insurer in the policy.
  2. Notify the insurance broker or policy agent. If you do it to the latter, it will have the same effects as if you communicate it directly to the company.

I never recommend using the contact form available on the insurer’s website, because it will most likely end up in the spam tray.

If you are registered as a user on the company’s website, you can use the form provided for this purpose, but make sure that you provide proof of the operation. Print it out on paper or keep the digital file in case you need to use it later.

Using email is not a good idea either unless you keep a digital record of the communication, its content, delivery, and reading. In many cases, it is the same as with the contact form on the web.

What is the expiration date of the receipt?

The duration of the insurance contract will be determined in the policy, it may not set a term exceeding 10 years and the extension may be established for one or more times as long as it does not exceed one year.

The insurance payment must be made in advance of the established duration, therefore the expiration date is the first day of each insurance annuity.

There are certain branches in which the insurance annuity equals the calendar year. In these cases, the expiration date will be on January 1, whatever the date you purchased the insurance.

This is the formula used by insurers in death and especially health insurance. They are also contracts that usually have installment payments. These two circumstances often induce you to think that you can cancel the contract at a different date to maturity.

Request cancellation before December 1, it will only give the company time to confirm that the cancellation is on December 31.

My payment is divided, when can I cancel the insurance?

The payment of the insurance premium is conditional on the duration of the contract. If the duration is for a specified period without the possibility of renewal, the premium will be paid in a single payment.

If, on the other hand, the duration is annual, renewable, the premium earned will be for the same period of time: one year.

To facilitate the payment of the annual premium, companies can assume to charge it in a fractional manner: monthly, quarterly, or semi-annually. This division does not modify the duration of the contract, therefore the expiration date will be the first day of each new extension of the insurance.

Is there a reason to cancel the policy after the deadline?

The latest modification of article 22 of the Insurance Contract Law introduces a new paragraph that improves the rights of the policyholder.

The insurer must notify the policyholder, at least two months before the end of the current period, of any modification of the insurance contract.

This provision is a lifeboat if we want to cancel the contract without having communicated it in a timely manner.

Your insurance premium has been raised, your medical benefits modified or your travel assistance benefits modified, as these are reasons for you to oppose renewing your insurance. These are some of the changes that the insurer must communicate to you two months in advance, so that you can decide in time to extend the insurance.

Hey, watch out! that this does not operate automatically.

The company will try to collect the receipt if you did not communicate the cancellation in time. In your defense, you can argue the failure of the insurer for not communicating the modification according to the law.

conclusion

How to cancel insurance efficiently has become a longer article than originally intended. The subject required it. You should not take the insurance contract lightly because you could be harmed.

Insurers are not an NGO, their potential is greater than yours. Your best guarantee is to do things according to the law and the contract.

Communicating your desire to the insurer to cancel the insurance using reliable means, will be useful if you have to defend yourself from a non- payment judgment claiming the debt.

Checking the expiration date of the insurance will make your communication more efficient.

But above all, doing it within the legally established period will guarantee its effectiveness.

And if any of this fails, look for the error of the company to cancel the contract.

Further down in the comments you can leave us your answer to these questions.

Has it happened to you that you wanted to cancel the policy and you were out of time?

Can you tell us what you did?

How to reduce your insurance bill: 7+1 tips to pay less

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reduce your insurance bill

How to pay less in your insurance is the goal you set yourself year after year, have you ever achieved it?

From the outset, I tell you that it is not easy. Above all, because each year insurers have to adapt insurance premiums to technical criteria.

Do you want to buy your insurance cheaper, but do not know how?

Surely you have heard and read a thousand formulas to get how to do it, but in this article, I am going to tell you what has given me the best results. You will find the keys and tips that I recommend to really save on your insurance bill.

Is saving on insurance paying less?

I imagine what your answer is. And if I tell you that you are in a MISTAKE! What would you think?

Having well-done insurance can be synonymous with having to pay a higher price.

If you want to know what I’m talking about and that:

The objective is to reduce your insurance bill, I leave you these 7 + 1 tips.

1. buy the insurance tailored to you

You choose the content of the cable TV, the electricity rate or the suit that you will take to the party, well, why don’t you adapt the insurance to suit you?

For that, it is not worth it…

How can I not give a hand to my nephew who has finished his degree and while he finds a job in his business he has started selling insurance.

You ask for a loan from the bank and you leave with the money and a couple of policies, you return the money and the insurance is still paying.

Because these are some of the reasons that the insurance account fattens.

One of the first things they taught me when I started is that to sell insurance, the first thing to do is create the need to make it essential.

The first thing you should do is cancel those contracts that you find unnecessary.

You will have no choice but to buy the mandatory insurance for your company or family: automobile, professional civil liability, work-related accidents. The rest, the value before purchasing them if you need them.

More and more guarantees that insurers include in their policies trying to make them more attractive to the consumer. But most of the time it is not free. Dispense with those that you will surely never use because everything adds up to the price of the insurance.

You can also include some type of franchise to reduce the price. Find out how in this article What is insurance with excess?

This is only the first step on how to pay less, there are seven more for you to keep saving.

2. Check the conditions of your contracts

We take out the insurance and we don’t look at it again until we have a claim or the receipt seems expensive. We forget that any modification of the insured risk can change the insurance conditions, and over time everything changes even if you do not perceive it.

These are some of the conditions that determine the amount of the premium and that you should update:

2.1 Changes in the insured risk

The insurance premium is established according to the characteristics of the insured risk, therefore it is essential to notify the insurer of any variation it suffers.

With the last job change, you no longer need the car to go to work. The reduction in annual kilometers can make your car insurance a little cheaper.

That place that you had rented as a warehouse has now become a coworking center, in which various merchandise has made room for a shared collaborative workspace.

You are obliged to notify the company of any variation in risk, in some cases it will mean a decrease in the premium, in others, an increase. But this way you will have the peace of mind, in the event of a claim, that the insurer is not going to reduce the indemnities by applying equity or proportional rule to you.

2.2 Prevention and protection measures

They are not as determinative as a risk but they do influence the acceptance of the risk or increasing/decreasing the insurance premium.

You are a handyman and you have installed a system of surveillance cameras, detectors, and an alarm connected to your mobile to know what is happening in your home at all times. You have installed the latest anti-theft system in your car or you took the opportunity to change the old security door of your house for an armored one.

Acts like these go unnoticed, we do not report them to the insurance and we are missing an opportunity to reduce the price.

2.3 Number of employees and turnover

If you are not yet very familiar with insurance, you may find the statement in this section strange. Premiums in policies with general civil liability coverage are usually established on the basis of the turnover generated by the policyholder with the insured activity. Sometimes, as is the case in collective accident policies, the reference is the number of insured workers.

The holder of the policy is obliged to inform the insurer of variations suffering these values. Companies usually establish in the conditions of the contract when to do it, but they do not limit you to be able to do it in advance.

Good management of these statements can give you an idea of how to pay less on your insurance bill.

3. Update the value of the goods

But this is not worth what I pay for the insurance!

The bursting of the housing bubble caused real estate to decrease in value and the crisis is causing us to have negative inflation. Both situations advise you to review the insured amount of your damage policies.

The price of materials and labor has also been reduced, so rebuilding your property is cheaper.

The current situation, with zero inflation, makes the automatic revaluation clauses of the policy capital unnecessary. Think that with this clause the premiums will increase in proportion to the increase experienced by the insured capital.

Machinery and industrial furnishings age, so you need to review their value periodically. If necessary, modify the form of insurance to adapt it to each moment.

If you have doubts about how to do it, in this article you will find all the information you need: Learn to easily value your business before insuring it.

How much have you saved? There is still some more recommendation so you can see how to pay less.

4. Select the payment method

Many times splitting the insurance premium is a way of being able to face the payment. But many others mean making insurance unnecessarily expensive.

Insurers do not do it for free, so they apply surcharges for fractionation that in some cases exceed 6%. You have to know that the higher the fractionation, the greater the percentage to pay.

When you are splitting the payment, you are financing yourself through the insurer so it may be convenient for you to use another cheaper source.

This is a section that you should review periodically to adapt the payment method to your financial resources.

5. Group all your policies

If I buy you all this, what discount will you give me?

Placing all your insurance in the same basket is possible that you get preferential treatment. Better premium rates, additional bonuses, or discounts on purchasing new products are some of the advantages you can get.

From the moment you fill in the first questionnaire from the insurer, you begin to be classified and analyzed. The final deal will depend on the profitability you give, and this is linked to the volume of premiums.

I would only advise you to ungroup those specific insurances that need a specialized insurer.

Think big, in the final result of your account, it depends on it that your profits increase.

6. Insurance is not an expense

I often find myself who thinks that insurance is an expense that must be amortized as soon as possible. To do so, they go to the insurance for any incident, whether or not it is covered by the policy guarantees.

It has also happened to me on occasion to think: what another year I have paid the insurance without making use of it. It is an idea that fades quickly because if I have not needed to use it, everything has gone well.

When we use insurance with a clear desire to amortize what we paid, we damage our insurance record. The benefit you can get in the short term will be detrimental in the long run when your record penalizes future buy.

In the same way that today insurers know our history as a driver, it will not be long before they share that of the policyholder.

7. Price is not always the most important thing

The time has come to show you that the price of insurance is not the only culprit that you can save on your insurance bill.

I give you a simple example:

You have your home insured and the insured capital is 20% less than the real value. This means a saving in the price of the insurance of about 100 dollars per year. But you have a claim whose damages have been valued at 10,000 dollars, the company has deducted 2,000 dollars from the compensation, the 20% that you did not have insured. You insured with underinsurance and it has meant a loss of 1,900 dollars.

This assumption refers to a home policy but you can extrapolate it to any other insurance. An insufficient valuation of the goods, inaccuracy about the protection and prevention measures, or declaring invoices lower than the real one can be the reason that they pay you less or even nothing if you have a claim.

You may now think about changing the question: how to pay less … for how to save better on my insurance.

8. Get advice from professionals

If you think about how difficult it may be for you to continue any of the advice that I have left you, the solution is in the latter.

Trust your portfolio to a good insurance broker. He will know how to audit each of your risks, establishing what your needs are.

It will underwrite the risks in the best market conditions, both in coverage and premiums.

It will negotiate for you the payment terms of your policies and you will obtain fairer compensation.

There are more, but for now, I leave you to discover them by yourself, inquiring into the contents of this page, or visiting the closest professional.

In short, it is like eating from the menu or à la carte, it only depends on you.

Conclusion on how to pay less on my insurance bill

You may already have an answer on how to do it after you’ve gotten here.

Savings on the bill are not only achieved with a cheaper premium. To make this possible, it is not enough to cancel the insurance you do not need, also review the guarantees contracted, updating the risk, or the circumstances that define it.

Make sure that the insured sum is adequate and that the payment method adjusts to your economy. Think of insurance as an equity guarantee for the future and not as an expense that must be amortized as soon as possible.

If you group your insurance portfolio, you will improve your client position. And if you want to save time and of course money, trust your insurance broker, he will know how to get the best result.

While you keep saving, why don’t you leave us your comments answering the question:

How do you manage to improve your insurance bill, do you do it personally?

A Man Pushes His Disabled Son Into The Sea To Collect Life Insurance

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Collect life insurance

The father, who had the help of another relative, threw the young man into the sea to collect life insurance for his death.

A man threw his son with mental problems into the sea in order to collect insurance. According to ‘China News’, the event took place on September 28 in the Chinese city of Haikou, in Hainan, when a 64-year-old subject notified the police to tell them that his son had accidentally fallen into the sea.

The agents checked the security cameras of the Office of Ports and Ships and were able to verify how the father himself was the one who threw his son into the sea.

Through the videos that the police obtained, they discovered that the young man was actually pushed by a person who was dressed in the same way as the complainant.

When he was arrested, the suspect pleaded guilty and confessed that he was seeking to collect insurance for his son’s death. He also confessed that he did not act alone; a relative of his participated in the crime, and they managed to arrest him when he was about to leave the city by train. The rescue services located the lifeless body of the young man who drowned in the sea.

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