Car Insurance and Registration Kentucky KY
Reader’s Question:
I am new here in Kentucky. If I ever decide to buy a car, what things do I need to know about traffic and insurance laws in this state?
Christopher
Louisville, KY
All states, including Kentucky, make it mandatory to obtain adequate car insurance coverage before it can be registered. This is because all states require motorists to have financial responsibility over accidents they may cause from operating cars in public roads.
During your car registration, you will be asked to furnish the Department of Motor Vehicle with your insurance company’s name. You also need to provide them with your car insurance policy number. Car registration essentially means that you are affirming the fact that you indeed have enough insurance coverage based on Kentucky’s laws.
Since this state is a choice no-fault state, the motorists reserve the right to follow or decline the no-fault act. If a motorist chooses to abide by the no-fault act, then they will be covered by their own auto insurance company if an untoward accident happens. This also means that they are forfeiting their right to sue the other motorist for medical expenses. If a motorist decides to follow the traditional system then he or she retains the right to sue the other motorist for damages.
Personal Injury Protection insurance is mandatory in all states that have elected to follow the no-fault act. This will assist you with medical or funeral expenses following an accident. If you carry an extensive health insurance, though, then you can just get the minimum PIP policy.
Do some shopping. You can obtain useful information from auto insurance companies’ websites. You can also get valuable facts from a local insurance agent.
Tags: auto insurance coverage, Car Insurance Company, car insurance law, DMV
Saving Money On Graded Life Insurance Idaho ID
Reader’s Question:
Will I save money if I go with a graded life insurance provider here on Idaho?
Vince
Boise, ID
It is possible to save money on a Graded Life Insurance policy but these savings are mostly experienced during the initial years of the policy. Graded life insurance works by giving you a low premium at the beginning then gradually increases your life insurance premiums on an annual basis over a set number of years, after which you can expect your policy to stabilize for as long as you own and maintain the said policy. The usual time period of where premiums would start to increase would be between five or ten years but it would still depend on the provider.
Graded Life Insurance is a form of whole life insurance where it is meant to be maintained for the duration of the insured individuals lifetime. Most would also put a portion of the regular premiums you pay there in Idaho to accumulate into a cash-value account which is like a savings account but is tax-deferred. You can use this money to increase the value of your policy or take out some portions of the money for any future needs (depending on how much your policy allows you to withdraw).
The cons of this policy is that, compared to regular whole life policies, by the time your rates increased it would be a bit higher (since they are compensating for the low rates they gave you early on).
Tags: graded life insurance, cheap term life insurance, guaranteed life insurance, life insurance advise
Life Insurance For Employees Mississippi MS
Reader’s Question:
Could you tell me about key employee life insurance in Mississippi? How important is this?
Clark
Jackson, MS
In every company, there is always a valuable employee. This key employee receives calls from the other employees for assistance even if he/she is on a week vacation. He/She usually knows more about the business than the manager’s assistant. If you are the owner of the business, it would be a wise move to purchase a key employee life insurance policy for that employee.
The amount key life insurance policy should be equivalent to the 5-year income of that employee. In the event that the key employee suddenly dies, it may take a while before his/her position is replaced. Even though this happens, it will take a while before the new employee learns and knows the details of the job.
If you are interested in purchasing a key employee life insurance, you can use either a term life insurance or a permanent life insurance. There are also different types of permanent life insurance. These are whole life insurance, universal life insurance and variable universal life insurance. You can opt to apply for cash value to key employee retirement income.
Tags: life insurance
Universal Life Insurance Oregon OR
Reader’s Question:
I am interested to buy a universal life insurance policy. I want to know more about it, especially the taxation part.
Scott
Portland, OR
Basically, universal life insurance gives you insurance protection but with greater flexibility with regards to premium payments and a higher internal rate of return potential as compared to traditional life insurance policies.
With universal life insurance, net cash values are credited each month with interest, as cost of insurance (COI) are also being debited monthly along with other policy-related charges. These other charges are only debited in case you weren’t able to pay your premiums on time.
Universal life insurance has many types, including Variable Universal Life Insurance, and Equity-Indexed Universal Life Insurance. A variable one allows cash value to be placed in different accounts that are invested in bonds or stocks, while equity-indexed contracts are contracts that rely on an index–for example, the Standard & Poor or the Russell 2000–as the basis of cash value growth.
Regarding taxation, universal life is a tax-advantageous way to buy a life insurance policy. As you may know, in the early years of your contract, your premium far outweighs the cost of insurance (COI) charges. The difference of COI and premiums become your cash value. While your policy remains in force, your cash value is tax-deferred. If you can hold on to your policy up to the time of your death, it is tax-free entirely.
I know that this is a bit confusing, especially when hearing it for the first time. So, when you sit down with your agent in Oregon, don’t be shy to ask questions as he will be happy to oblige.
Tags: life insurance, life insurance coverage, life insurance policy, life insurance premium