Skip to main content

Understanding What’s Covered and What’s Not Covered with Life Insurance

Written by admin on . Posted in Life Insurance. No Comments on Understanding What’s Covered and What’s Not Covered with Life Insurance

How Life Insurance Can Be Used

Life insurance can be an estate planning tool, an investment vehicle, or simply a way to replace lost income in case of unexpected death. Some people purchase life insurance to establish an inheritance for their children or as a strategy to donate to a favorite charity.

Unlike other types of insurance coverage, there are no restrictions on how death benefits can be used. Life insurance beneficiaries are free to use the money as they see fit. Many people invest in life insurance to replace the income they provide for their families, so their financial needs are met, including:

  • Funeral, burial, and end-of-life expenses
  • Personal debts (loans, credit card bills)
  • Mortgage payments
  • College tuition
  • Daily expenses, such as food, gas, clothing

If you have a permanent life insurance policy that builds cash value, you may be able to use it to cover expenses while you are still alive. For example, you could borrow against it to cover the down payment on a home or your child’s college tuition. Borrowing against the cash value could reduce the amount of the death benefit.

What Is Not Covered by Life Insurance

Although life insurance covers most causes of death, certain circumstances can prevent beneficiaries from receiving death benefits. The two most common reasons why life insurance claims are denied are:

  • Lapse in payment: When you purchase life insurance, you are covered only as long as you continue to pay your premiums.
  • Misrepresentation of the policyholder’s health: If a policyholder omits or misrepresents health information, the insurance company may deny the claim, particularly if death occurred within a two-year window after the policy was purchased.

Most life insurance policies include a suicide clause, which voids coverage if the policyholder dies by suicide within a specified time after purchasing the policy. Insures are likely to deny a claim for death by homicide if the beneficiary was involved in or responsible for the policyholder’s death. Some companies would deny a life insurance claim if the policyholder died while engaging in a high-risk activity such as sky diving.

Different Types of Life Insurance

The best type of life insurance for you will depend on your financial situation, your reason for buying a policy, and your investment goals. The basic types of life insurance are:

  • Term: This type of policy lasts for a specified time period, typically 10, 20, or 30 years. During the term, you make fixed premium payments for a guaranteed death benefit. Coverage terminates at the end of the term. Some insurers will allow policyholders to extend their coverage or convert to permanent life insurance.
  • Permanent: As long as you pay your premiums, coverage with a permanent life insurance policy continues for your entire life. In addition, permanent life insurance can accumulate cash value. It is more expensive than term life insurance.

If you are considering life insurance, contact our knowledgeable agents. We can get you the best quote for the coverage you need.

Is My Business Covered in the Event of a Cyber Attack?

Written by admin on . Posted in Business Insurance. No Comments on Is My Business Covered in the Event of a Cyber Attack?

Small business owners are not exempt from the risk of a cyberattack. The loss of customer data is a financial disaster, and with cyber incursions becoming more common, and hitting even the largest companies, from banks to retails to online giants with extensive security, it is well worth ensuring your business has adequate cyber insurance.

The Costs of a Cyber Breach

The financial losses a business will experience after a cyber attack are extensive, and include:

  • Legal costs
  • The cost of a forensic investigation to identify who was affected by the breach
  • Potential fines and penalties
  • Credit monitoring for affected customers

Cyber Insurance and Exclusions

Every cyber insurance policy is different – and the differences are found in the small print. Your policy has exclusions that must be fully understood. A full audit of your cyber insurance is a critical aspect of ensuring your business is fully protected. Your business cyber insurance does not cover the losses associated with stolen intellectual property or copyrights.

An insurer may deny a claim if it is found that the policy owner failed to safeguard business data. Most of these policies exclude the losses related to wars, invasions, or insurrections, which are very unlikely events, thankfully. Exclusions for “prior acts” mean that if your business had a breach before the policy was in effect, it is not covered. This poses a problem, as some cyber breaches are not discovered for months after the fact. Always keep your cyber insurance current, and do not allow any lapse, for this reason alone.

Types of Data Breaches Affecting Businesses in the USA

  • Confidentiality Breaches: These attacks involve an outside individual gaining access to private business and client information by accident. When this occurs, the affected patient, customer, or client can file a legal claim against the business to seek compensation for revealing private information.
  • Availability breaches: This type of breach is typically associated with ransomware, when huge blocks of data may be lost or destroyed, even if the ransom is paid.
  • Stolen information: An employee may access client information on a home device or phone, which opens the door for bad actors to gain access to client data, which they then sell to others involved in criminal activity.
  • Confidential data breach: An individual, either within the business or outside the business, gains access to private information and steals it from the business. These breaches may not be noticed for many months, as the individual may work within the company and did not leave a visible trail.

After a Cyber Attack, Will Fines be Assessed?

When a business has been the victim of a cyberattack, credit card companies may assess fines. Your cyber insurance policy will have limits and deductibles, which should be carefully reviewed. The losses to a business from a cyber breach can be so expensive that an uncovered business may have to close.

Get Help When Choosing Your Business Cyber Insurance

The best way to protect your business from the losses of a cyber breach is to work closely with a local agent to select the ideal policy for your business. If you feel your current policy may not provide the coverage you need, your agent can check the market to identify the policy that best suits your business, provides the best coverage, and has the lowest rates.

I Missed an Auto Insurance Payment: Here’s What to Expect

Written by admin on . Posted in Auto Insurance. No Comments on I Missed an Auto Insurance Payment: Here’s What to Expect

Life happens, oversights can occur, and payments sometimes get missed. If you missed a car insurance payment, don’t panic. Your policy will not be cancelled immediately. State laws require auto insurance companies to provide notice to policyholders before cancelling their coverage for nonpayment.

What Happens if I Don’t Get My Payment in on Time?

Most car insurance companies offer a grace period for late payments. If you submit your payment a few days late, it should not be a major problem. However, the grace period can vary from one provider to another. It is important to make your payment as soon as possible after you discover the oversight.

What if My Car Insurance Payment Is More Than a Few Days Late?

If the grace period has passed and your payment has still not been received, your insurance company will notify you by mail or by email before cancelling your policy. Generally, you will have between 10 and 20 days to rectify the situation by bringing your payments up to date. If you receive a notice of cancellation, contact your insurance company to find out if your auto insurance policy is still in effect.

What Should I Do if My Policy Has Been Cancelled?

If your policy has already been canceled, find out from your insurance company if you can renew it. Reinstating the same policy that was just cancelled for nonpayment will allow you to maintain continuous coverage without a lapse. To reinstate your previous policy, you will need to pay the past due balance to your insurer.

What if My Policy Cannot Be Reinstated?

You will need to purchase a new auto insurance policy as soon as possible if the insurance company will not reinstate your previous coverage. This may be more expensive, but it is nevertheless necessary. Without the minimum coverage, you cannot legally drive your vehicle.

What Are the Consequences of Not Having Auto Insurance?

Drivers are required to carry mandatory minimum auto insurance coverage in nearly every state in the U.S. If your car insurance lapses for nonpayment or any other reason, there may be financial and legal consequences, including:

  • Driver’s license suspension: In many states, insurance companies are required to notify the government when drivers let their auto insurance lapse. It could mean automatic suspension of your driving privileges or your vehicle registration.
  • DMV administrative fees: In some states, drivers are required to pay administrative fees to the DMV for lapses in auto insurance coverage.
  • Higher auto insurance premiums: If you let your coverage lapse, even briefly, you are likely to see an increase in your auto insurance rates. Insurance companies want their policyholders to be reliable in their payments.
  • Lower credit score: Failure to pay your auto insurance premiums can impact your credit score, which can affect your ability to get a loan.

If you need auto insurance, contact our agency today. We can help you find the best quote in the area for the coverage you need.

Welcome to Parenthood: Here’s What You Should Know About Your Policy

Written by admin on . Posted in Life Insurance. No Comments on Welcome to Parenthood: Here’s What You Should Know About Your Policy

Becoming a new parent is an exciting, challenging, and somewhat overwhelming experience. When your child is born, you are suddenly responsible for a whole new little person. Instantly, your top priority becomes caring for and protecting your child.

Life insurance plays an important role in protecting your baby boy or girl. It is a way to ensure financial support should something unexpected happen to you. For first time buyers, finding the right life insurance coverage can be a daunting process. Our experienced agents are happy to help.

Why Do New Parents Need Life Insurance?

In becoming a parent, you become responsible not only for yourself, but also for the little person who is relying on you for survival. The cost of raising a child to adulthood, for food, shelter, and childcare alone, amounts to hundreds of thousands of dollars. This does not include the costs of higher education. Life insurance can help protect your child’s future financial needs in case you are no longer there to provide for them.

What Type of Life Insurance Is Best for Your Family?

The two main types of life insurance are term life insurance and permanent life insurance.

Term Life Insurance

This is usually the least expensive option. It provides life insurance coverage for a specific term, typically 10, 20, or 30 years. Benefits of this type of policy include the following:

  • Policyholders can choose the length of coverage.
  • Term is more affordable than permanent life insurance and may be a good choice for new parents on a budget.
  • It may be the best option if you have a specific financial goal in mind, such as funding your child’s higher education or paying off your mortgage.

Permanent Life Insurance

Permanent life insurance costs more than term life insurance, but it also offers important benefits. Your coverage lasts a lifetime – it does not expire at the end of a designated term. Your beneficiaries will receive death benefits, regardless of when you die. It also serves as an investment vehicle. Permanent life insurance builds cash value over time, and you can borrow against it.

How Much Life Insurance Should You Buy?

Generally, life insurance can provide death benefits of from $100,000 to $1 million or more. How much life insurance you need will depend on your financial situation and your goals. As a starting point, assess the financial support your family would need if you were no longer there. Factor in:

  • Expenses that would need to be paid immediately after your passing: This may include debt obligations, and funeral and burial expenses.
  • Money your family would need to maintain their current lifestyle: Calculate this amount by adding up your annual income, savings, retirement savings, and investments. Include future financial expenses, such as your child’s college education.
  • How much your partner earns: If you are raising your child with a spouse or a partner, subtract his or her income, minus income taxes, from the total life insurance amount.

For a rough estimate of how much life insurance to buy, multiply your annual income by 10.

Top 3 Business Insurance Myths

Written by admin on . Posted in Business Insurance. No Comments on Top 3 Business Insurance Myths

Insurance is essential in today’s economic environment. We have health insurance in case we become ill or injured. We carry auto insurance so we can legally drive and for protection in case of a crash. Businesses are no exception to the rule. If you own a business, you need the right kinds of business insurance coverage to protect it.

The following are common business insurance myths – debunked:

1. A Small Business Doesn’t Need Insurance

This statement is simply false. We live in a litigious society and a business of any size can be sued. Many small businesses are involved in litigation every year.

Business insurance is not about the size of your business property, the number of people you employ, or even your revenue. It should be based on the exposure to risk your business faces. Whether the risk is fire, theft, liability for injury, or a lawsuit based on a service or product your business provided, the right insurance coverage can help shield your company from disaster.

2. Homeowners Insurance Will Cover My Home-Based Business

If you are self-employed and work out of your home, it is important to know that your homeowners insurance will not provide adequate coverage for your home-based business. The typical homeowners policy only provides $2,500 in coverage for business equipment, as stated by the Insurance Information Institute (III). This may not be enough to cover all your business property. You may also need liability and lost income coverage, which a homeowners policy will not provide. To insure a home-based business, your options may include:

  • Endorsements: Adding an endorsement to your existing homeowners policy can increase your coverage for business equipment. You can also add a homeowners liability endorsement in case a client or delivery person gets hurt on your property.
  • In-home business policy: This type of policy can provide more comprehensive coverage for your home-based business. Policies can vary widely from one insurer to another. In addition to protection for your business property, most will reimburse you for loss of important records, and some will cover lost income from business interruption. Generally, these policies provide broader liability coverage with higher limits.
  • Businessowners policy (BOP): This type of policy is designed for small to mid-sized businesses. It is a good choice if your home-based business operates in more than one location. A typical BOP will cover business property and equipment, liability, loss of income, and extra expenses, on a much broader scale than an in-home business policy.

3. Business Insurance Is Too Expensive

Business insurance is not free, but it is necessary to operate a business. It is not cost-effective to cut corners in a way that leaves your business exposed to serious risk. Small businesses are sued every day for a variety of reasons. The cost of your business insurance will depend on several factors, including your size, your location, and the types of services or products you provide.

Our agents have extensive experience with business insurance policies. We can help you get the coverage you need at the best available rates.

Here’s Why You Should Buy Life Insurance for Your College Student

Written by admin on . Posted in Life Insurance. No Comments on Here’s Why You Should Buy Life Insurance for Your College Student

A college student does not typically have children or debt, other than student loans. With no dependents who rely on them, why would you buy life insurance for a child in college? No one wants to consider the death of a child. However, should this tragedy occur in your family, if you have co-signed on any loans, it can become a problem. On the positive side, purchasing a life insurance policy when a person is young and healthy will involve very affordable premiums.

Married College Students

If your child is married, planning a marriage, or has a child, buying a life insurance policy makes good sense. In the event of loss of life, the insurance policy will provide support to the partner, spouse, or child to help them weather the years ahead, free from financial stress.

Student Loans

Most college students take out loans to pay for their education. The type of loan will determine what occurs should the college student pass away prematurely. Federal student loans allow for the debt to be canceled when the person dies, but private student loans must be paid off, and require a co-signer, which is typically a parent or grandparent, who is now responsible for paying off the loan. The death benefit of a life insurance policy can be used to cover this debt.

Establishing an Asset

A whole life insurance policy builds up equity over time. A college student who has a whole life insurance policy is establishing an asset that can be used in the future, such as taking loans from the policy to pay for future needs. Buying a whole life policy for your child can help them establish a healthier financial future. Once in the working community, your child can take over paying the premiums, and watch the asset grow.

Does Your College Student Need Life Insurance?

To decide whether to purchase a life insurance policy for a college student, consider these issues:

  • Does your child have outstanding car loans or other debts?
  • Has your child taken out student loans that must be repaid should they pass away?
  • Does your child have a spouse, partner, or child that will need support?
  • Did you mortgage your home or take out other types of loans to pay for your child’s education?
  • Does your child have credit card debt?
  • Have you co-signed on any loans for your child?

Choosing the Right Policy

The purpose of the life insurance policy makes a difference in the type you should purchase. A very low rate, term policy may best suit your budget. The cost of premiums for young, healthy people are very low, and extremely affordable. If you want to help your child build an asset, a whole life policy could be put in place to create an asset for the future. Every child and family are different, and with the help of one of our local agents, you can choose the life insurance policy that makes sense for your budget and needs.

If You Blog, You May Need Professional Liability Insurance

Written by admin on . Posted in Business Insurance. No Comments on If You Blog, You May Need Professional Liability Insurance

Every business is advised to have a blog, but does this come with risks? Surprisingly, yes. A blog may mention a specific company, competitor, or include claims regarding results, and under the right conditions, could lead to a lawsuit. Companies that make promises about what they can achieve can be at high risk. What if the advice is taken, with no result, or a bad result? Business liability insurance covers the business against the risk of an accusation of false advertising.

Business Blogging and Liability

Blogs are among the most popular ways people get information, but a business blog comes with some risks. The types of issues that may arise related to a business blog include:

  • Claims of libel: If a blog mentions a competitor or a product, it can trigger a lawsuit by the named person or manufacturer who accused you of libel.
  • Claims of invasion of privacy: Posting images is always a good idea, but you must ensure the person in the image approves the publication of an image.
  • Securities fraud: A company that promotes themselves through a blog must be very careful with the words used, or may be subject to scrutiny and legal problems from the SEC.
  • False advertising claims: If you promote your product, company, or services in a blog, and a consumer claims the blog presented false information or the product did not perform as described, you may be facing a false advertising claim.
  • Defamation claims: A person mentioned in the blog may take offense to what is written and file a defamation lawsuit against you.

Blog for a Living? Get Covered with Liability Insurance.

If you are a blogger and are busy monetizing your activity, attracting followers, and watching your dream come true, it can turn into a nightmare when someone takes offense to your words. To protect against the cost of defending the lawsuit, putting a liability insurance policy in place can save you from a total financial disaster.
Whether you write a business blog, personal finance blog, interior design blog, news blog, political blog, or a benign blog such as a mommy blog or food blog, you need insurance to protect you against the significant losses if a lawsuit or claim is filed against you. Whether the accusation is true or false, you still need an attorney to defend against the accusations. That’s when your liability insurance can be a lifesaver.

What is Business Liability Insurance?

Business liability insurance protects against claims for personal injury, property damage, advertising injuries such as errors or misstatements. It also protects you against the losses from bodily injuries, libel, and slander. Gossipy blogs may be fun to read, but an individual mentioned may not appreciate any shared, incorrect news they claim has damaged reputation. General liability insurance pays for your defense costs if a lawsuit is filed against you, as well as pays out on judgments up to policy limits.

Choose the Best Blogger Liability Insurance

Get help from a local agent to select the policy that will best suit your blogging activity. It is advised that you seek the help of a professional in the insurance industry to guide you to a policy with the highest limits at the lowest cost, from a reputable insurance provider.

What Steps Should I Take When in an Auto Accident?

Written by admin on . Posted in Personal Insurance. No Comments on What Steps Should I Take When in an Auto Accident?

A vehicle accident is a shock, even if it is just a minor fender-bender. The impact of the crash causes serious damage to the vehicle, or causes injuries to the driver and passengers. After an accident, taking certain steps can help you file a claim with your personal insurance policy to cover lost income from work, medical expenses, and other losses.

  • Step One: Injuries? Call 911.
    Thoroughly check yourself and your passengers for injuries. If anyone in your vehicle is injured, call 911 at once so that emergency services can be dispatched to the accident site. 
  • Step Two: Move to a Safe Location.
    In a minor collision, move your vehicle to the side of the road to avoid the risk of another collision. If the accident is more serious, leave the vehicle in place and get to the side of the road or sidewalk if possible. 
  • Step Three: Stay Calm, Wait for Help.
    It may take some time for emergency services or law enforcement to arrive. Stay calm and provide basic care to the injured, applying pressure with a piece of clothing to bleeding wounds. 
  • Step Four: Exchange Information.
    Exchange insurance information with other drivers in the auto accident. Do not discuss who was at fault, or what happened. 
  • Step Five: Take Pictures.
    Use your phone to take pictures of the vehicles, skid marks on the road, license plates, and your injuries. These images can be critical as evidence when filing a claim. 
  • Step Six: Get Contact Information from Eyewitnesses.
    Get the contact information (name, address, phone number) of any witnesses to the collision who have stopped to render aid. 
  • Step Seven: Undergo a Full Medical Evaluation.
    The adrenaline released into your system in an auto accident suppresses the sensation of pain. You may feel you are fine, but in a day or two, could suffer the effects of the collision, suffering intense pain, severe bruising, or worse. Tell the medical professional attending you that you were in an auto accident, so the information is entered on your chart and the right tests are performed.

Recovering from an Auto Accident and Your Personal Insurance Policy

Recovering from injuries from an auto accident can be a lengthy and painful process. While you have the right to be compensated by the auto insurance company of the responsible driver, the amount paid in a settlement may be far less than you need, particularly when the injuries affect your ability to work and earn a living. That when your personal insurance can be a lifesaver.

Personal Insurance and Auto Accidents

The driver responsible for the collision may have the minimum limits on their insurance, or in some cases the driver is uninsured, or leaves the scene, never to be found. Your personal insurance policy can provide you with the finances you need during your recovery. Personal insurance, or “personal injury protection,” (PIP), provides coverage for the cost of medical bills, lost wages, and other losses after a car accident.

No-Fault Personal Insurance

These policies have the advantage of providing coverage no matter who was at fault. If you were a passenger in an auto accident and have personal insurance, your medical bills and other losses are likely covered, based on the terms of the policy.

Need Help?

If you do not currently have personal insurance, or you would like to find a better policy, meet with one of our local insurance agents.

How Will Inflation Impact My Coverage?

Written by admin on . Posted in Business Insurance. No Comments on How Will Inflation Impact My Coverage?

Inflation – no one loves it. When it hits a business, it affects the cost of goods, particularly for any business that manufactures products, and can have an impact on the cost of business insurance. The types of policies that may increase in price due to inflation include:

  • Commercial property insurance: The construction industry is suffering growing pains, exacerbated by the radical increase in the price of materials. Replacing or repairing any damage to a facility will be much more costly than it was in the past, and you can expect to see higher rates for coverage.
  • Commercial auto insurance: The auto industry has been affected by inflation, with the cost of repairs to vehicles on the increase, with added issues related to chip shortages. Your commercial auto insurance may increase in cost due to this situation.

How to Manage the Impact of Inflation on Your Business Insurances

Your business insurance policies should be reviewed on a yearly basis. New programs become available every year, and you want the best deal possible – the highest coverages at the lowest rates. Rather than looking at an insurance bill from your provider and just paying an increased rate, it is advised that you work with a local business insurance agent to help you find the most affordable option, with the best coverage, and offset the added costs associated with inflation.

How to Lower Your Business Insurance Premiums

The only method by which you can avoid excessive increases in insurance premiums is to shop for a better policy. While dealing with insurance may not be your favorite activity, with help from a local agent, you can get the professional help you need to find a better option. Business insurance agents have access to the market and can identify the best options for your operation. The ideal policies are those that provide the highest level of coverage at the lowest rates. When a favorable option comes on the market, your agent does the heavy lifting for you. All business owners should have the support of an insurance agent they trust to be a partner to navigate the ever-changing market.

Is Inflation Slowing?

Inflation appears to be slowing, but only time will reveal how long increased rates will continue. The positive impact of reduced inflation should begin to become evident in the last quarter. We all look forward to the costs of doing business reducing, and a more stable, predictable economy in the coming years – and more options to reduce the costs of business insurance. Stay in contact with your agent to stay ahead of the curve and save when and where you can.

The Labor Market, Inflation, and Insurance

Business owners have weathered many storms over the years, and the current rate of inflation brings one more challenge, along with a labor shortage that most company owners are experiencing. Throughout every up and down in the economy, one thing holds true – your business must be thoroughly protected with business insurances from reputable providers.

Do I Have to Choose a Beneficiary? What You Need to Know

Written by admin on . Posted in Life Insurance. No Comments on Do I Have to Choose a Beneficiary? What You Need to Know

When you purchase a life insurance policy, you must name a beneficiary, or several. The listed beneficiary is the person who will receive the death benefits should you pass away before you time. A sudden death due to an accident or illness leaves the family bereft, but the life insurance benefit allows them to move forward without suffering serious financial problems. The benefits are not taxed and paid rapidly, without the waiting period required for an estate to go through probate.

Choosing a Beneficiary for your Life Insurance

People have various reasons for buying life insurance. In many cases, the beneficiary is a spouse, children, parents, or other relative – but these are not the only options. If you are a business owner, you may choose to make your business the beneficiary. If you have a charitable organization that you support, you may choose to name that charity as the beneficiary. You may choose to name a trustee of an established trust, or your estate. You have many options, and selecting your beneficiary is one of the most important issues when you buy a life insurance policy.

Changing a Beneficiary

Life events may lead to the need to change a beneficiary. The birth of a child, a marriage, divorce, or starting a new business could make it necessary to change the named beneficiaries on your policy or policies. To change the named beneficiary (ies), you need to request a Change of Beneficiary form from your insurance company. You, as the owner of the policy, are the only person that has the right to change beneficiaries in most cases.
A person who has granted power of attorney to another individual, it gives that person the right to make financial decisions on your behalf. If the beneficiary of your policy is named as an “irrevocable beneficiary,” the policy is set in stone, and cannot be changed. In community property states, you may need your spouse’s permission to change beneficiaries on your policy.

Naming More Than One Beneficiary

You may choose to name several individuals or other entities as beneficiaries of the death benefit of your policy. It is imperative that you list the percentage of the benefit you want to go to each party, and how that percentage will be split should one named beneficiary pass away.

Primary or Contingent Beneficiaries

Your primary beneficiary will receive the death benefit, but should that person die, you should name a contingent beneficiary. The beneficiaries cannot be changed once the policy owner dies. In some rare cases, the policy owner dies while in the process of changing beneficiaries. In this case, the insurance company makes the final decision on the recipient of the payout of the benefits.

Life Insurance Trusts

Many people choose to establish a life insurance trust. The life insurance policy is the asset of the trust. After the life insurance policy is transferred to the insurance trust, the individual no longer owns the policy. At death, the payout goes to the trust, which allows for some control over how the funds are used. These trusts are often a strategy used by people with concerns regarding estate tax. After an irrevocable life insurance trust is established, it cannot be changed.

Need Help? Talk to Us.

Protecting the financial health of your loved ones with life insurance is an important step for people of any age. Our local agents can help you find the best policy for your situation or review your current policies and identify the current options on the market that could offer higher payouts with lower monthly premiums, and help you with any questions regarding beneficiaries, insurance trusts, and any other concerns.