HELP ME CLARK!

ROSEMARIE:

We are scheduled for a cruise to Antarctica and the company is suggesting that we get insurance, $528 per person, for emergency events: lost luggage, illness, etc. We are 65 years old and have no health conditions. What do you think?

CLARK:

HLN's Money Expert Clark Howard

If you're going to go on a cruise and your inability to show up at the port would mean you forfeit all your money - which is almost always what it does mean - you should buy trip insurance.

But don't buy it from the cruise line. You want to buy it from an insurance company. And the best website to shop the policies is insuremytrip.com.

Now, the coverages will vary and the exclusions will be different one company to another, so take the time to sit down and compare the exclusions that various companies have and, in turn, the coverages.

The typical price, though, for trip cancellation or trip interruption insurance is 6% of the cost of the trip.

HLN Money Expert Clark Howard.

HELP ME CLARK!
From HLN's Money Expert Clark Howard

NATASHA:
My husband is 50 years old and a smoker. We are looking to increase our life insurance to $300,000 plus. Should we get term life insurance or whole life insurance?

CLARK:
Term life insurance is almost always my choice for someone, although there can be rare circumstances where another type of insurance would be the right one.

With term insurance you can buy level term that will cover pretty much the rest of a working lifetime, a 15-20 year term is probably appropriate. As a smoker, the rates will be surcharged and you'll pay quite a bit more than you would otherwise, although some companies discriminate against smokers more than others which is why it's really important to shop multiple companies.

Level term is a very simple product. You pay the same premium through the 15 or 20 years and all it does is pay if you die.

HELP ME CLARK!
From HLN's Money Expert Clark Howard

HLN Money Expert Clark Howard takes your questions.

CARLA:
We have flood damage to our home. We have no flood insurance. Both my husband and I have major health problems and can't afford a loan. Would it be advisable to take out the cash value from a life insurance policy we have to make the repairs we need?

CLARK:
Borrowing from the life insurance policy would be a viable option after the fact, not up front. If it were me, I would take advantage of the SBA loans that are being granted in disaster areas that carry ultra-low interest rates. Plus, if your county has been declared a disaster area, there may even be some grant money that will be available to you. You want to get an appointment with a FEMA inspector and they’ll write up a report and see what eligibility you have. If you take out an SBA loan and you find that even making the payments on it – because they’re ultra-low interest loans – are too burdensome for you, at that point, yes, you could borrow from a life insurance policy.

HELP ME CLARK!
From HLN's Money Expert Clark Howard

ROGER:

My daughter had to freeze her credit when her mail was stolen. Now her homeowner's insurance premiums have substantially increased. The insurance carrier said that her prior policy period premium was based upon her credit report. Since her credit is now frozen, they had no choice but to increase her premium. Can you explain the logic of this?

CLARK:

The insurer is showing that they don't have a very high IQ. What your daughter does is she goes back to the insurer and says "OK, I'll thaw my credit file for whatever credit bureau it is that you draw upon." And then they'll be able to instantly pull her credit and see that her credit standing is OK, and then in turn lower her premiums. She should also immediately file a complaint with her state insurance department because her insurer is failing to act in good faith, and that is a clear violation of state regulation of that insurer.

HLN Money Expert Clark Howard

Having trouble managing money? Do your money goals seem impossible? Clark Howard wants to help you! We're looking for individuals or families who are willing to be profiled on HLN. Those chosen will get money advice and information from Clark Howard.

This week's question comes from Earl and Debbie Bollinger in Covington, LA.

EARL:
"Last year we got a long-term care insurance policy. We got a very good policy, very good premium, given that neither of us are on chronic medication or have chronic health problems right now.

It's been a good investment in terms of what we were able to get for our money at this point. After looking at some of Clark's advice online, I saw he had recommended maybe not getting a policy until your 60's, which I have another 7 years before I get there.

Looking at that as a recommendation, I've had the inclination to pay off my house; it's really the only debt I have left … I was thinking based on his recommendation on long-term care policy if we should cancel that, use the money that we are putting towards our premiums, towards the house to pay that off quicker ... I think like anyone at our age we want to be stable at the point of retirement which I would see in the next 10 to 12 years and being debt free at that point ... including the house.

I know there are two camps out there, people who recommend paying off mortgage early and those who say keep the mortgage until it's finished.

I'd like to get Clark's perspective, if he thinks it's a good idea and whether or not with this policy since we have it; if we should keep it in place and keep things as they are or should we make this change it and look to use those premiums towards the house."

Tune in to the Clark Howard show Saturday and Sunday at 6am, 12pm, and 4pm ET to see Clark's answer!

MARGARETHA:

What is your advice on taking out a collision damage waiver when renting a car, even though my insurer says I'm covered for rentals? The rates seem exorbitant, but I also don't want a possible dispute with the rental company to spoil my vacation should something happen.

CLARK:

Great question! And the reality is, even if you buy the insurance from a car rental company, you're still going to have a hassle factor if you are in an accident or there is something that involves a claim.

The whole purpose of having auto insurance is to protect you from the unexpected event. If you have coverage for temporary use of a rental car, you should use that.

But if you want ultra peace of mind, I'd like for you to also use a credit card that pays what your own insurance doesn't. And many credit cards do that.

If you're renting a car five or more times a year, pay the huge fee for a Diners Club card.

Diners Club is the only credit card that has blanket protection for you when you rent a car and, in fact, takes care of it before your own insurance company is ever involved.

Tune in to Clark Howard Saturdays and Sundays at noon and 4 p.m. ET on HLN