08:56 03 May 2013
Most of us are familiar with the saying “the best laid plans” which is really telling us that not everything can be planned for, right? And for the most part, that is what insurance is about. Coverage for when a major wrench hit the works.
The most common plans are life, health/medical, dental, and funeral. But now there are plans that can cover those less dramatic events that we stumble over thru prepaid insurance plans.
The advantage can be is that they are never affected by inflation.
These prepaid plans, also known as off the shelf policies cover add expenses or holes in current polices for event that we may face in our lifetime such as legal or other professional services.
Life insurance may only cover the above ground cost but not the final resting place but purchasing burial insurance not only insures that a plot is paid for but possibly in a particular location.
And not everyone lives behind the wheels of their cars; hence pay as you drive (PAYD) may actually work for those “Sunday drivers.” Others policies offer little reward systems if you perform outside the “norm” as to not to represent any real risk to the insurance companies.
Things to consider when looking at these types of policies:
• Is there a real need for this type of policy? Legal services insurance may not be necessary for those individuals that have little assets or other issues that would require constant servicing.
• Is this type of policy replacing or supplementing existing policies?
• What is the true value for having these policies? Will there be any undue hardship as a result of having or not having them.
• What is the disbursements value and method if the policy expires or is no longer needed? Redemption of expired prepaid insurance cards can be as easy as contact the provider themselves in order to issue disbursement of unused funds.
Everyone should have some standard forms of insurance but for those whose circumstance doesn’t allow for obtaining them or just prefer to have something that is a locked in price security net.
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