Blog

dacia duster

Most Affordable Family Car to Buy in Ireland 2017

Our Top Choices:

Every family in Ireland wants a family vehicle for day to day functions and other purposes as well. However, they are limited by a budget as we all are. The good news is that there are vehicles that do not cost much but serve the purpose of being a family car just as well as any other vehicle. There are certain characteristics that are common among family vehicles such as space. The following are features of the most affordable cars to buy in Ireland in 2017:

Dacia Duster

dacia duster

The Dacia Duster which is a sport SUV (sports utility vehicle) comes either as a five-door wagon or a four door pick up. It is mostly available with a 1.6L petrol engine. The Dacia is a two wheel drive vehicle with a five or six-speed transmission that is either manual or automatic depending on the taste and preference of the consumer. The Duster has two front airbags for safety in case of a collision and for preventing a collision it has an electronic brake force distribution (EBD) and emergency brake assist (EBA). The average top speed on all Dacia Dusters is about 175 km/h.

SsangYong Tivoli

SsangYong Tivoli

The SsangYong Tivoli is another fabulous family SUV. It is a big vehicle with 18′ wheels. The interior is superb too. There is a dual zone climate control function to adjust the atmosphere in the vehicle. All the seats are made from leather, and the front seats are heated in case it gets cold. For the weather outside you have fog lights and rain sensing wipers that make driving very easy. The control panel in the car is a 7″ touch screen RDS radio with iPod & Bluetooth connectivity and also a reversing camera. In the case of a collision, there are seven airbags to be deployed for all passengers.

Citroën Berlingo

Citroën Berlingo

This leisure activity vehicle has a four-cylinder petrol and diesel engine with a wide range of 1.4L to 2.0L and 1350cc to 2000cc. It comes with a five-speed manual transmission but more recent; electric versions come with an automatic transmission. Most of the appeal comes from the fact that it is a hybrid and newer versions have lower CO2 emissions that many hybrids. It is mostly available in a four or five-door panel van.

Nissan Note

nissan note

The Nissan Note is a Japanese made hatchback with five doors. The vehicle is accessible as a two wheel drive or four wheel drive dependent on consumer choice. It has a 1.5 L petrol engine with about 100 HP. The transmissions are different depending on location. Five-speed manual transmissions are fitted into Japanese versions while four-speed hydraulic transmissions are fitted into European and American versions. You also get an exclusive HDD navigation system with incredible features such as a music stoker and a 30 GB hard drive. The wheels are 15-inch aluminium alloy. The car comes with a Super UV-blocking green glass so you can park outside without having the damage of too much heat in your car. It also has leather seats and a wide selection of colours to choose.

Skoda Octavia Estate

skoda octavia estate

The Skoda Octavia Estate is an Eastern European family car with five doors and four wheel drive capacity. You have a range of choices from 1.4 L to 1.9 L engines either running on petrol or diesel. With the newest version, you get a radar sensor in the front bumper to help the driver avoid collisions. You also get front and back cameras to judge distance particularly when your vision is impeded by the weather. The transmission is five, six or seven speed with the latter for two-wheel drive versions only.

Hyundai i30

i30 hyundai

This South Korean made vehicle can be acquired as a hatchback or an estate. You have the option of acquiring it as a three door or five doors depending on your preference. You also have a 2.0 L engine with a choice of transmission between five and six-speed manual or four-speed automatic. It has incredible fuel consumption with 10 L/100 km in the city and 7.8 L/100 km on the highway. The vehicle weighs less than 1500 kg and has a top speed of about 200 kph.

Citroën C4 Cactus

citroen cactus

The Citroen C4 Cactus is a compact SUV, but it is like no other. It has a special design known as the “Air bump panels.” The panels are meant to protect the vehicle’s sides from damage. The vehicle mostly comes as a five-door hatchback. You get the option of a 1.2 L petrol engine or a 1.6 L diesel engine. The tires have an 18′ aluminium alloy rim, and the vehicle has a choice of either four wheel drive or two wheel drive. The car’s transmission has quite some range with five and six-speed manual transmissions or four and five-speed automatic transmissions.

caledonian is now royal london

Caledonian Life – Once Upon a Time – Now Royal London

Caledonian Life is now Royal London!

We usually don’t reference too many life insurance companies on here because we don’t want to seem biased in any way or form. We’re more of an honest resource for people needing an explanation of the different types of insurance out there.

Our Facebook page which only has a few likes unfortunately, however, we have received 4 questions referencing either Caledonian Life and RoyalLondon. Well… they are both the same company.

Caledonian Life was bought by the Royal London group after merging Royal Liver with Royal London in July 2011. This happened a while ago yet people are still continuing to speak about Caledonian.

The reason being Caledonian life didn’t actually become Royal London until 2014. They were and still are a very good company and that’s probably why so many people are asking about the company.

The parent company the Royal London Group have been in business of over 180 years years and are selling financial products in both the UK and Ireland. They are well renouned for both Life Insurance and Mortgage protection. One of the features of their policies that sets them apart from others is the “Helping Hand” add on:

Helping Hand gives 1-on1 personal support from your own Nurse Adviser from Red Arc who can help you and your family with the devastating effects caused by illness or bereavement. The family part of that statement refers to a persons spouse or partner and their children only.

With over 15 years experience, Red Arc has earned a reputation for service excellence, supporting individuals and their families through serious illness, chronic health conditions, bereavement and disabilities.

Here are some of the features of Helping Hand noted on Royal London’s Website:

  • the provision of bereavement counsellors
  • speech and language therapists
  • oncology nurses
  • physiotherapy
  • face-to-face second medical opinion
  • cardiac rehabilitation support
  • complementary therapies
  • massage and reflexology

Brochure to Fully Explain Royal London’s Helping Hand Scheme

http://www.royallondon.ie/our-products/helping-hand/helping-hand-brochure/helping-hand-brochure/

Life Cover from Royal London

  • The give a guaranteed lump sum, payable if you die within the term of their policies.
  • They give their customers a genuinely competitive cost-efective premium.
  • They are flexible giving you the ability to choose how much cover you want and how long you want your cover to last.
  • A guarantee that, unless you choose Indexation, your premium will not change throughout the term of your policy (although any relevant Government levies will be refected in your payments) ?
  • You and your family get the peace of mind that comes from knowing that should you die during the term of the policy, they will have their financial needs looked after
how does life insurance work

How does life insurance work?

How does life insurance work?

Life insurance operates in the same way that all insurance policies do. You are out to protect something when you get insurance, in this case, it is to safeguard the life of your loved ones in case you are not there. There are those people who rely on you while you are alive and are a responsible citizen in society; however, when you are deceased, those who depend on you will be reliant on you. Therefore, it is imperative that they know they can still do the same while you are not around. This is the main reason people take life insurance policies.

Here is how your dependents will benefit:

  • A lump sum form of payment given to your dependents when you are deceased; this helps cater for the needs that you once provided for them.
  • By gaining this amount, your dependants will be able to receive an amount that is equal to your monthly paycheck while you were still alive.
  • They will leave the comfortable life that you always aspired in case you are no longer alive.
  • Your spouse would be comfortable when handling the needs of your children if you had them before your demise.
  • You will have left a legacy of a hard working citizen whose family does not have to depend on others once you are gone.
  • You have the peace of mind when paying the premiums as they guarantee not just your future but also the future of your loved ones.

There are different types of insurance policies that you can enlist. Consider all variables from the policy that you choose. Your adviser will give you this type of advice when getting life insurance once you decide to take up one.

Here are some variables to consider

Is it reliable?

You need to know that the amount you accept on for the cover will be paid to your dependents once you are deceased. To ensure that this will be the case, pay for the agreed amount every month as well as each year according to the agreed terms.

Naturally, this is the main stipulation that ensures that the spouses agree and one party will ensure the children get a comfortable life the parents always wanted. Else, there is no claim on the life cover. You are betting on the fact that paying the life insurance does not guarantee that you are the one who claims. As such, it is a significant bet on the reliability of the insurance company in case you happen to pass on or your spouse does so in kind.

Life insurance cost

Essentially, a host of factors dictates how much you pay in premiums determining the cost of the premium paid on the insurance policy. They include the following.

  • Age
  • Height
  • Weight
  • Health
  • Occupation

The price is fixed for the duration that you wish to pay the premiums and will remain as such unless you want to change the terms regarding increasing length of your cover or the amount payable in premiums.

Independent adviser

It is important to get special advisers as opposed to getting advice from an insurance agent from a particular company that will provide information that is geared towards getting a commission from your cover. Gain information that will look into the variables to ensure that you suit the needs of the cover you want for your loved ones.

There are various types of insurance. The most common are Term life insurance and Whole of life insurance.

  • Term life insurance: This is set for a certain number of years. In case you die in 30 years, and you had set your date of demise for that age, your family will get the lump sum agreed. All you need to do is make your payment from that time. However, if you outlive the said period, your policy does not give you coverage after this. It is a cheaper form of coverage compared to whole life insurance.
  • Whole life insurance: There is no expiry date for this type of life insurance policy. The cover remains as long as you pay the required premiums until your unfortunate demise. As expected, the premiums are higher, and there is a payment that is guaranteed before your demise. However, the premiums you pay for this type of policy are reviewable. You can change them based on your age. However, you need to ensure that you cancel it before you are unable to pay your premiums. You need to switch to a fixed price based on the ability to afford if you know that you may not pay premiums after, say, retirement.

How it works for the insurance companies

Insurance companies need to make money. As such, when you need a life insurance policy for € 500,000 or €1,000,000 or more, the insurance company will make money by determining and assessing probabilities of such an eventuality. In the case of a term life insurance, the company wins if you outlive the stipulated age of maturity, as they do not pay out the policy.

The company is investing in the premiums paid by clients.

Overall, money paid out after a claim is less than what you deposit following the agreed terms of life insurance policy taken. Nonetheless, even if the insurance company gains more through the pooling from life insurance policy owners and investing ensure you seek a policy that will protect your family in the sad eventuality that you are no longer there.

funeral insurance in ireland

Funeral Insurance in Ireland

While no one wants to think about the day that they are no longer here, it is going to come at some point in time or another. The best thing you can do is make arrangements for the inevitable ahead of time. Not only will this help protect your wishes, but it also prevents your loved ones with being strapped with a large funeral bill when you are no longer here. This is where funeral insurance comes into play. Find out more about this insurance below.

Over 50s Funeral Plans

An over 50s funeral plan is a form of life insurance that lets you prepare for part of the cost, if not all of the cost, of your funeral. When you take one of these policies out, you can make sure your loved ones have the money they need to pay for your funeral, if not other expenses.

Benefits of Taking Out an Over 50s Funeral Plan

By taking out one of these funeral plans, you can ensure your family is prepared to handle the cost of your funeral from a financial standpoint. The insurance can also cover a portion of any bills that you might leave in your passing. When you take out a funeral plan, you can eliminate stress and worry and make sure your family doesn’t have to worry about struggling to finance your funeral during an already emotional time.

What’s the Point of a Funeral Plan When You Have a Savings Account?

Even though you might have a savings account in place, that doesn’t mean it is going to be enough to cover all of the funeral costs and other expenses. By taking the time to think about everything pertaining to your funeral ahead of time, you can prevent leaving your loved ones arguing over funeral arrangements and costs.

What’s Included in a Funeral Plan

Funeral plans guarantee that your loved one is going to receive a set amount of money upon your passing. Coverage is based upon how old you are when you start your policy and the coverage you choose. Premiums vary, but start out around €15 monthly.

As an example, if a 50-year-old paid €15 monthly, they would be guaranteed to receive a payout of €4,940. You are the one who chooses what level of coverage you want depending on what type of funeral you are planning on having. Premiums paid during your policy term could be more than what the death benefit is.

Individuals Eligible for Coverage

The funeral plan isn’t just for people who are in their 50s. It’s also ideal for people in their 60s and 70s. as long as you live in the Republic of Ireland and are aged 50-75, you can apply for coverage.

Purchasing a Plan for Someone Else

While you can get a quote for a funeral plan for someone else, you cannot purchase the policy. The only one who can purchase a policy is the insured themselves.

Medical Requirements

Provided you are between 50 and 75, you are guaranteed acceptance. No medical exam required.

Restrictions on Health

Since no medical or health history is required, you are guaranteed acceptance for this life insurance.

Level of Life Coverage

The level of coverage is the amount of money payable to a beneficiary upon your passing.

Life Assured

The life assured is the individual who is insured by the funeral policy.

Commencement Date

The commencement date is the date that your plan becomes active. You will find the date on your schedules.

Life Insurance Changes for the Future

Your premium and life insurance are guaranteed. They cannot decrease or increase. They stay consistent, even if cost of living goes up every year.

Plan Changes After the Policy is in Effect

If you don’t feel that your policy is going to work for your needs, you can cancel the policy. Put your request in writing and return all policy documents. This has to be done within 30-days of starting the policy. Premiums paid will be refunded.

Travel Accident Benefits

From day one, you are protected if you have an accident as a driver, passenger or someone walking down the street and end up passing away. If the accident happens in the first three months, the beneficiaries get double the amount.

Payment Options

Payment monthly via direct debit or go down to your local post office.

Payment Requirements

You aren’t required to pay everything in full. The over 50s life insurance / funeral plan offers monthly payments. There are a number of ways to pay for your plan.

Minimum Payments

The minimum regular payment required is €15 monthly. However, regular payments vary based on age and coverage level.

Cancellation Charges

If you cancel your policy or stop paying the premiums after the first 30 days, protection benefits are cancelled and nothing is paid out to your beneficiary. Premiums aren’t refunded either.

When you look at all of the benefits that come from purchasing one of these plans, it makes sense to invest in something that is going to work for you and your needs. Funeral insurance can save you and your loved one’s time, hassle and money.

save on your home insurance

5 ways to save money on home insurance

Home insurance is a vital and significant consideration that every homeowner needs. Ensuring that your home is well covered eliminates the threat associated with unseen occurrences that are not only traumatic but also brings about financial challenges. However, home insurance comes with costs. The premiums payable are the primary costs associated with home insurance. Through ensuring that the premiums cover the overall house costs is essential. The cover, however, needs not be an expensive aspect. You require utilizing varying tips in ensuring that you save money. Below are some of the tips in ensuring you save on home insurance.

1. Location affects premiums and deductible

The first and significant tip that you can utilise to minimise the cost of home insurance is by selecting a suitable and favourable location for your home. It is, for example, favourable to own a home whose location is near a fire station. In such scenario, the insurer will ask for lesser premiums than living in a flood prone area, requiring additional policies such as flood cover, in return increasing the insurance costs.

The deductible is an amount that you will be needed to contribute when lounging a claim. The deductible amount and the insurance premiums operate on a seesaw basis, meaning the higher the premiums, the lower the deductible. Through practical choice of location, you can raise your deductible and pay a lesser amount of premiums while not risking a higher out-of-pocket consideration upon being hit by an incident.

2. Taking the right cover and maintaining a good credit history

While evaluating the value of your home, be sure to exclude the value of land. Land, for example, cannot be stolen. Therefore, including the value of land will mean additional and unnecessary premiums. The premiums are further affected by the credit history. Evidently, insurers utilize you credit history to determine the possible frequency of claims. The concept holds that individuals with a poor credit rating usually lounge more claims than t those with a better rating. As such, ensuring that you maintain a good credit rating ensures that you cut on premium costs.

3. Loyalty pays

Via the purchase of multiple policies as offered by an insurer, you may end up qualifying for discounts. Such discounts, together with a prolonged history of utilizing the insurer play a vital role in cutting on insurance costs. For example, if you insure your home with a particular insurer for three years, you may receive bonuses and discounts for the various policies held. This model contains a significant portion in ensuring that you save the money involved in home insurance.

4. Shop around

Various insurers offer varying terms and conditions as well as charging different amounts. Through regular shopping, you will be able to identify the cheapest but reliable insurer in the market. Utilizing services of such reliable and affordable insurers will mean that you pay a fair price for the cover, eliminating the possibility of inflated insurance costs. The concept is further reinforced through effective bargaining while taking on a policy, allowing you to settle for the best and cost friendly cover.

5. Stay safe and get discounts

Every insurer considers the value of your home and the possibilities of incurring an incident requiring insurance settlement. Through the knowledge of the criterion, you can cut on the money spent on home insurance by staying safe and asking for varying discounts. This can be done in varying ways, for example, installing your home with high-security locks, deadbolts, gas leaks detectors as well as regular renovations that ensure your home is safe.

life insurance with hepatitis b or c

Can individuals with Hepatitis B or C get life insurance?

When one is applying for a life insurance cover, their approval will depend on different factors. One of the crucial factors is one’s current health condition at the time they are applying for the cover. Whereas some types of medical conditions may or may not be considered as serious, it is crucial that all life insurance coverage applicants disclose all their health issues when applying.

For individuals with Hepatitis B or C, it is possible to be commended for life insurance cover. Nonetheless, the underwriting on the application for coverage will differ, depending on the seriousness of the applicant’s condition, plus the time they have been affected with the condition. The analysis is done by an insurance agency and is referred to as “medical underwriting”.

Multiple factors are taken into consideration during the process. The end goal is to determine the health level of the client so the insurance agency can come up with an informed decision on whether they would be ready to accept the risk or not.

How to prepare for your life insurance application

It is important to be educated and be sure that you are aware of the severity and diagnosis of your illness before the application. In addition to that, ensure you have the results of your latest liver function test and viral loads. Most insurers can get uneasy if an applicant is not informed about their illness as it shows reduced need to manage the disease or lack of follow up with a doctor.

You need to visit your doctor to ensure you have up to date medical results, including all the results of the tests that are performed routinely for hepatitis patients.

Contact your insurance agent first, and inquire about the estimates from various insurance companies before selecting which to apply with. An agent should be able to put a summary depending on your diagnosis and the most recent test results to get preliminary quotations.

What do Life Insurance Underwriter’s look for?

Underwriting for individuals with Hepatitis B or C comes to two crucial factors:

  1. Is the disease in remission or not?
  2. How much damage, if there is any, has been done to the client’s liver?

Remission is the final goal for a person who suffers from Hepatitis B or C and reaching it has to go a long way when one tries to get an insurance cover.

When one is medically tested for Hepatitis B or C by insurance, the examiner is determining the level at which the client’s liver is functioning. However, this is not an easy process and is long. Depending on the progression of the illness, the testing and treatment can take two to five years. Most insurance companies use this as a basis for considering extending a policy. However, if these health levels are not concluded, an insurer can either decline the policy or offer them at a premium.

The insurer might also need additional information from your doctor, such as urine or blood samples, or any other documentation that is related. It is important to ensure the insurer gets these on time as it could hold up the whole process of underwriting.

The other factor that is considerable is a liver biopsy. They are performed so as to obtain an in-depth diagnosis of the liver’s condition. It is very costly to treat liver damage, and it leads to other medical problems. Thus, it is important for an insurer to put it into consideration. An individual has a chance of getting a standard insurance policy if their liver damage is nonexistent or minor. A medical director always does a review to make a case decision.

Medical questions with Hepatitis B or C

The insurance underwriters reviewing your application will put the following into consideration in their decision process. The following information is needed to know the best way of getting you the most affordable insurance policy:

  • The date of the diagnosis
  • Your age at diagnosis
  • The most current level of liver enzymes
  • The level your hepatitis has been diagnosed
  • Cirrhosis of the liver or diagnosis of fibrosis
  • The treatments you have received
  • Follow- up and frequency of testing and treatment
  • Results of all the additional tests you’ve had performed
  • The medications you are taking currently

Getting the cover you need

Irrespective of the severity of your Hepatitis, it is worth the effort you put in researching and exploring the options and knowing what is available and best for you. An independent agent is the best in doing this as they will be able to locate quickly the insurance that is perfect for your case. It is advisable to seek the help an insurance agent who is an impaired risk specialist. Such agents know all the details of your illness and will be in a position to help you obtain the ideal insurance policy for your needs.

car insurance company refusing to ignore you

Can a car insurance company refuse to insure you?

Insurance cover is not as straightforward as many other products in the market. In some instances, insurance companies can deny coverage:

1. Driving an old car

Ireland’s big motor insurance companies are refusing to cover old cars. Customers driving vehicles that are 15 years or older are denied insurance cover, even if they have a valid NCT that provides their cars are safe to be driven. Insurers claim that such cars are more likely to be involved in fraud cases, can cause more collisions, are poorly maintained and have bald tyres. It is said that whenever older cars are involved, the frequency of personal injury is higher. However, motorists should know that this rule applies to new clients only; the existing customers whose vehicles have passed the threshold would still be covered.

2. Denied policies

If a client has a type of insurance with a carrier offering multiple lines of cover, then the insurer is under no guarantee to commend any application the client submits for an additional cover. The insurer will have to underwrite and evaluate the client’s application just as any other applicant, and will either decline or approve the policy based on the risks the client presents.

3. Cancellation

Cancellation is a strike against a client’s insurance record. It is, therefore, important to avoid it. Paying your premium on time is essential, as is being truthful when giving information to potential insurers and avoiding driving under the influence. Most people are tempted to lie about tickets or their recent traffic offences, but eventually, that will destroy the health of your driving record and credit. When a client’s insurance company cancels their policy, that will stay on their record for years. Nevertheless, if the client gets many cancellations in a year, then most insurance companies would deny you their policy because such a client is a “high risk” insured. That will only mean the client can go to a high- risk carrier and they will have to pay up to five times what is paid on normal rates that they used to pay at a standard insurance carrier.

4. Denied claims

Even though a client may pay their premiums on time regularly, their insurance company may not pay the reported claim. First of all, the policy may not cover the situation that surrounds the claim, but may be one the exclusions listed. Secondly, if the insurer finds out that the damage was caused by the insured, then the claim might be denied. Finally, a claim could be at a level of deductible, implying that client is accountable for paying it.

5. Non-renewal

It is not the obligation of an insurance company to renew the insurance policy for a policyholder. An insurance company can issue a non-renewal notice if:

  • A client has filed several claims in a short time
  • The credit rating of a client is declining sharply and their present insurer sees them as a liability
  • The carrier has decided to pull out of a certain line of business or is restructure its insurance line of business and is discounting a client’s policy through no fault of their own

If a customer has been or is a victim of any of the above reasons, then the insurer can choose not to renew the policy. In some instances, additional premiums may simply be added to reflect the risk that has been increased.

life insurance for mum

Mothers life insurance – Responsible insurance for children

Are you here to learn about life insurance for mothers? That’s perfect. We have all the information you need. Mothers life insurance works the exact same as normal life insurance. The only thing that changes is the circumstances of why you may require cover. You get the normal reasons:

  1. Covering the mortgage so they have a place to live
  2. Money for covering funeral costs.

However, a mother will be thinking of other circumstances.

  1. 1. I need money for my child’s education
  2. Household costs and living expenses
  3. Illness cover for the child
  4. Money for the person looking after my children

It’s a scary prospect to deal with and is something that goes through a mums mind a lot. My own mother said that. If you’re a young mother you’re going to be thinking of 20 years’ worth of money for your child, enough to get through college. You’d want an insurance policy that would pay out a couple of hundred thousand if you past away.

If you’re over 50 years old and your child is mature, finished education and a fully functional working adult then you’re going to go for a policy that will merely cover financial expenses if you pass e.g. your funeral and solicitor fees if you pass.

 

mum-life-insurance

 

Some Questions & Answers of Mum’s Life Insurance

1. Single mums

The need for insurance for single mum’s may out-way someone that is in a stable partnership or marriage. Single parents may encounter a variety of issues that arise when there’s not father involved to take over the care of your loved one you’re leaving behind.

Your siblings or parents may need to step in to take care of your children. You should have a back up plan for someone to look after your child and they should know of your intentions. They should also know about your policy that will assist them in upbringing your child. A hard concept to come to terms with but a possibility non the less.

2. Stay at home mums

Life insurance can help your husband or partner have time to grieve and look after your children when you pass. You loved ones will need to be there for each other when you pass on. Money isn’t everything but a life insurance payout can alleviate some stress regarding finances.

The insurance payout will never replace what you can give to your family but it does allow them with one less thing to worry about.

3. Your home will be your families

The insurance payout will never replace what you can give to your family but it does allow them with one less thing to worry about. You can also have closure knowing your family have a secure and fully paid home to live in. This would only be if you had mortgage protection and life insurance.

gift of life insurance

A fathers last gift of life insurance… A son’s story on a golf course

I didn’t realise last Saturday would be a topic for our blog but it was. I just wanted to get out for a bit of practice before the summer season so I dusted off the golf clubs and drove down to the course. Most of my friends work Saturday’s and I just expected to have a quiet game alone. However that didn’t happen. As I made my way to the tee I met a guy who I’ll name as “John” for privacy purposes, who was also playing alone. Part of golf etiquette requires when you see another golfer out alone you make an offer to go around together, and I did.

So “John” and myself got talking on the tee boxes mostly about golf. He was on holidays in my village with his young family. He had 2 kids, a wife and John himself was 24 years old. I’m unfortunately a few years older than “John” and I have no family at this stage of my life. I was astounded that he was so far ahead in terms of family life, and learned he had a very successful job in computer programming with a large international company. You can be sure you’d know the name if I said it. Rhymes with noodle.

I revealed I was in the same line of work and it sparked conversation of how we got into our perspective careers. I mentioned my insurance blog which you’re reading now and “John” instantly smiled. I thought “Great, now he’s going to find me boring”, but no it was a smile of familiarity. It turned out “John’s” father who was only 36 had died when “John” was 18. I didn’t want to pry too much but because of “John’s” career path he confided and said “I was able to take my career path because of my fathers life insurance policy”.

It turns out John’s father had a very good joint life insurance policy which paid out a significant lump sum to his family when he past. Not only did it give John’s family time to mourn his fathers death, but it was enough to put two of his children through college, one being “John” whom I was playing golf with today. The mortgage was cleared on his parents house as well. It was his fathers last gift to his family.

So now I know the reason for his smile. He now too had a life insurance policy that he knows will give his family some financial security if he past on too early in life.

I thought this was a good story to share with my readers.

what does excess mean in the insurance industry

Excess – What does it mean in the Insurance Industry

What does Excess mean in Insurance Terms?

Many people assume that once they get a car insurance cover and pay premiums religiously, the will never have to part with any money in case something happens to the vehicle and they have to make a claim. However, this is not usually the case because you will still have to settle a percentage of the claim while the insurer pays the rest. The amount that you will pay out of your pocket towards the claim is what is referred to as excess in insurance terms. This is one of the downsides to making a claim besides the fact that it can also increase your premiums in future.

The good thing about excess is that your insurer will give you the freedom to choose a level of excess that you can pay comfortably. However, some people tend to be too optimistic and choose a high excess in the hope that they will never incur the risks that they are insuring against, and hence they will never make a claim. This tends to significantly lower their premium and make the policy to appear cheap but in reality, this is a very risky move that can make them bankrupt if something goes wrong. Therefore, it is advisable only to choose a level that is within your means and factor all the possible scenarios. The insurer will reduce the premium when you choose a higher premium because you will bear more risks than the insurer.

Types of Excess

Basically, there are different types of excess which vary according to the type of policy and different situations. You can always check your certificate of insurance to see the type of excess that you are liable for. The main types of excesses that might apply for a comprehensive car insurance policy are standard/basic, age excess, and special or additional excess. A standard or basic excess is the amount that you will agree to pay in case of a claim. This excess can apply separately or together with another type of excess. The age excess applies concurrently with the basic excess to drivers below the age of 25 years. On the other hand, special excess applies during special circumstance or when the vehicle has issues that are supplementary to the basic excess. Types of excess can also be classified as compulsory and voluntary. A compulsory excess is non-negotiable and is determined by the type of car you have, your age and the nature of the claim while voluntary excess is the one that you offer to pay.

Situations when you do not have to pay an excess

Fortunately, there are circumstances when you do not have to pay the painful excess fees. One of them is when you are not to blame for the accident or hazard that is causing you to make a claim, and you can provide details about the person who is liable. In this scenario, you are exempted from paying because the person who was at fault will pay on your behalf. The opposite is true in that when there is no one to be blamed, you will have to pay the excess. For example, if your car was damaged during a natural disaster like an earthquake when it was in the parking lot then you will still have to pay your share of the claim. Another sure way to avoid paying excess is by reviewing your policy and paying extra coverage.