Courtesy of iii.org How gap insurance works When you buy or lease a new car or truck, the vehicle starts to depreciate in value the moment it leaves the car lot. In fact, most cars lose 20 percent of their value within a year. Standard auto insurance policies cover the depreciated value of a car—in other words, a standard policy pays the current market value of the vehicle at the time of a claim. If, when you finance the purchase of a new car and put down only a small deposit, in the early years of the vehicle's ownership the amount of the loan may exceed the market value of the vehicle itself. In the event of an accident in which you've badly damaged or totaled your car, gap insurance covers the difference between what a vehicle is currently worth (which your standard insurance will pay) and the amount you actually owe on it. When you might need gap insurance It’s a good idea to consider buying gap insurance for your new car or truck purchase if you: Made less than …
Insurance
Drunk Driving Holiday Risks
Courtesy of iii.org Alcohol is a major factor in traffic accidents. Based on data from the U.S. Department of Transportation, National Highway Traffic Safety Administration (NHTSA), there was an alcohol-impaired traffic fatality every 51 minutes in 2015. Alcohol-impaired crashes are those that involve at least one driver or a motorcycle operator with a blood alcohol concentration (BAC) of 0.08 percent or above, the legal definition of drunk driving. According to NHTSA 10,265 people died in alcohol-impaired crashes in 2015, up 3.2 percent from 9,943 in 2014. In 2015 alcohol-impaired crash fatalities accounted for 29 percent of all crash fatalities. The definition of drunk driving had been consistent throughout the United States until March 2017. All states and the District of Columbia defined impairment as driving with a BAC (blood alcohol concentration) at or above 0.08 percent. In addition, they all have zero tolerance laws prohibiting drivers under the age of 21 from …
What Are Annuities?
Courtesy of iii.org Fixed vs. variable annuities In a fixed annuity, the insurance company guarantees the principal and a minimum rate of interest. In other words, as long as the insurance company is financially sound, the money you have in a fixed annuity will grow and will not drop in value. The growth of the annuity’s value and/or the benefits paid may be fixed at a dollar amount or by an interest rate, or they may grow by a specified formula. The growth of the annuity’s value and/or the benefits paid does not depend directly or entirely on the performance of the investments the insurance company makes to support the annuity. Some fixed annuities credit a higher interest rate than the minimum, via a policy dividend that may be declared by the company’s board of directors, if the company’s actual investment, expense and mortality experience is more favorable than was expected. Fixed annuities are regulated by state insurance departments. Money in a variable annuity is invested …