by onlinefinancialnewsletters | Apr 24, 2017 | Personal Protection
More drivers are taking their eyes off the road. They are being distracted by mobile devices and it is resulting in more accidents. Worse, it’s inflating your costs for coverage as well.
In fact, a state-by-state evaluation has uncovered that rates have been increasing for the last 5 years.
There are a few factors that influence rates going up…
- More people are driving.
- Cars are more expensive to repair.
- Texting while driving has become the largest cause of accidents…
(The National Highway Traffic Safety Administration determined distracted-driving deaths increased 9 percent in 2015 alone!)
Of course insurance companies have to bill more because of the increase in insurance claims… in some cases with rates increasing by hundreds over the span of a few years.
You can help reduce accidents by putting down your cell phone while in your car. But if you’re having a hard time separating yourself from your cell phone… you aren’t alone.
You see, it’s all about dopamine. Each time an Email or Text is responded to, it gives a feeling of satisfaction and creates a need to do more. The result? It’s difficult to stop checking cell phones for texts and Email.
And with their flashing and beeping and icons indicating there are unread messages, it all adds to the addictive effect. It’s a combination of classic conditioning and dopamine responses that make you feel like you’re addicted.
There is hope that technologies being introduced into vehicles will help to curb distracted driving. But for now, the best practice is simply to leave your device alone while driving… no matter how hard it might be.
by onlinefinancialnewsletters | Apr 4, 2017 | Personal Protection
Many kinds of credit lines and installment loans offer credit insurance. These products are designed to “protect” an individual’s credit score by covering installment payments in case of certain qualifying situations.
Sadly these tend to be overpriced according to recent research. A study covering 2004 through 2013 demonstrated that 44.4 cents in benefits were paid for each dollar spent on such insurance policies. (By comparison, typical health plans offer 84.1 cents in benefits for each dollar spent.
So if the goal is to protect yourself in case you get sick or injured, you might be better off finding other forms of personal protection. (Be sure to check with your financial advisor for options.)
Also bear in mind, having such credit insurance is not a requirement for receiving a loan. It is always an option.
So when you are getting a line of credit, a car loan, or a store credit card, remember than this “insurance” may have a low payment but can be an expensive option when it comes to potential payout.
Also it is important to understand that options are limited. There’s virtually zero competition. Under normal circumstances you’ll be offered insurance from one provider… that’s it. There’s zero choice.
So what are your alternatives to Credit Insurance?
Term life insurance is a great way to protect beneficiaries. In the case of your death, your beneficiaries can leverage the funds to pay off your debts. Of course a life insurance benefit can cover all financial needs whereas credit insurance is limited to only covering that specific loan.
And in case you are injured, disability insurance can be beneficial. As with term life insurance, disability insurance is far more flexible than standard credit insurance.
by onlinefinancialnewsletters | Mar 9, 2017 | Personal Protection
Owning a pet can be expensive. A well-bred puppy can easily cost $2,000+ for a desirable breed. Annual costs can be $700 or more including food and wellness checkups at the vet.
And that assumes things go well. If a pet requires an emergency visit to the vet, the costs for such visits can quickly skyrocket into the thousands of dollars. Treating chronic illnesses is expensive too.
But let’s face it. Pets become a treasured part of our families. Insurance becomes about more than protecting your investment in the animal. If your dog or cat gets sick, most folks struggle with the idea euthanasia if viable (but expensive) treatment options are available. In such situations, pet insurance offers a certain peace of mind. It can also offer protection against the financial stressors if a pet develops medical needs.
Most experts agree that over the life of an animal, you’ll probably pay more in insurance costs than what you’ll receive in covered expenses. But remember, insurance is there to protect against catastrophic events. From this point of view, pet insurance becomes a great option.
Presently only 1% of family pets are covered by pet insurance in the U.S. But it is a one of the fastest growing benefits that companies offer to employees.
Different polices exist. Some cover prescriptions and wellness visits. Others exist strictly as coverage against catastrophic events.
Bear in mind that animal insurance plans can be as complex as “people” health insurance. Plans can have deductibles and co-pays in addition to the regular premium costs. Likewise, premiums will vary depending on the features of the plan and a pet’s age. Also, watch out for the “fine print”. Pet insurance can have restrictions… for example some plans only work with specific vets while other plans may cap benefits.
You can check with your favorite vet to see what pet insurance options they offer. But you should also talk with your local insurance professional whether you are an individual considering pet insurance for your beloved animal, or if you are a business looking for a great benefit to offer employees. Your insurance professional will have great advice on your pet insurance options. And because they understand insurance, you can count on rock-solid guidance.
by onlinefinancialnewsletters | Dec 30, 2016 | Personal Protection
Fires, floods, tornados, hurricanes, high winds, hail and lightning… Mother Nature has some serious weapons in her arsenal, and she’s not afraid to use them. With extreme weather becoming more common in many parts of the country, every home is likely at risk of incurring damage from more than one type of natural disaster. In some cases, even with insurance, the outcome is financially dangerous. Consider the following monetary hardships you may encounter.
You’ll probably pay clean-up costs out of pocket.
Even if these expenses are covered by your homeowner’s insurance, you may want to pay for them upfront in order to speed up the process. From removing downed trees to ripping out water damaged drywall and flooring, clean-up can run in the thousands. If you don’t have that kind of cash on hand, you’ll have to live surrounded by debris until you receive the check from your insurance company. Talk to your insurance agent about what your policy covers as well as how quickly payouts are usually made.
You’re going to need vital paperwork.
From your insurance paperwork to birth certificates, social security cards, bank account and credit card information, there are many important documents you’re likely to need in order to get your life back in order after a natural disaster. If they’re lost or cannot easily be accessed, it could delay the processing of your insurance claims and receipt of any government assistance to which you may be entitled. Experts advise making copies of important paperwork and storing it electronically using a cloud-based storage provider such as Dropbox. You might also consider keeping hardcopies of important documents in a safe or safe deposit box.
You might be on the hook for more than you realize.
You knew you needed insurance, but you also wanted to keep your premiums low. You may have bought a policy with a higher deductible as a result, and you’ll have to put that much cash towards clean-up and repairs before your insurer will cover any difference. Talk to your insurance agent now—before a natural disaster strikes—about the deductible and coverage limits on your insurance policies. If you live in an area where certain types of extreme weather are common, it might make financial sense to increase coverage and reduce your deductible.
You’re probably going to need access to cash.
After a major natural disaster, power outages are not uncommon—and they can last weeks and cover large areas as well. Whether you need to secure a hotel room for your family, buy clothing and toiletries, or just pay for pizza delivery until you can use your stove again, you may need to use cash if debit and credit card machines are down. Consider putting some cash in a safety deposit box at a bank in a neighboring town. Set up direct deposit with your employer so your earnings will automatically go into your bank account as well.
Do you know what your insurance policies cover? Are you concerned about the financial implications of a natural disaster? Call us today to review your coverage and discuss options to lessen the financial burden should Mother Nature decide to strike your home.
by onlinefinancialnewsletters | Nov 30, 2016 | Personal Protection
If you own a home or condo, having a home insurance policy is required. But once you have it, most folks end up ignoring it after they have it in place.
Yet for most of us, a home is the most valuable asset we’ll own… and it is filled with all the things we’ve collected over a lifetime. A home or condo policy must offer enough coverage to restore the house to its former glory in case it is damaged. But you also have to factor in the value of your belongings as well including antiques, collectibles, jewelry, high tech items, etc.
There’s no magic time to think about home insurance… so check out these tips on how to get the most value in your home owners policy.
- Manage Your Credit
Over the last several years, there’s been a shift in home insurance where your credit matters. For many carriers, the better your credit rating the better your insurance rates. In fact, some carriers won’t accept high-credit risk applicants. So maintaining a solid credit history is really in your favor.
- Let Us Search For You
As an independent insurance agency we write insurance for a number of carriers… so one call to our team is all that’s needed to shop for great rates among multiple carriers. You’ll save time & energy as well.
- Explore Your Deductible
Talk with us about your deductible. The key is to make sure your deductible is something you can afford to pay in case of a serious issue. For a claim on a home insurance policy, one rule of thumb is to have the deductible be high enough that you don’t make a claim for “just anything” that goes wrong with your house. Home insurance really should be reserved for catastrophic situations. The higher the deductible the more you can save… some premiums can be cut by up to 30 percent.
- Check Out Discounts
If you have two or more insurance policies (auto / home for example) with the same carrier, you can save 5% to 15% off the policies. Typically, that will be a less costly approach than cobbling insurance coverage together from various companies. Definitely give us a call to explore your discounts… especially if you happen to have some of your insurance with other carriers.
- Make Sure You Aren’t Over-Insured
Some people think buying more insurance than they need will give them some sort of advantage. It won’t. You simply need an adequate amount of coverage to cover the expense of replacing your home and its belongings. For example, you won’t replace the land, so that doesn’t factor in. Likewise, different areas have different costs of construction so factor that in as well. IMPORTANT: Be careful not to UNDERINSURE your home. The key here is to have a candid conversation with our insurance team so that we can make sure you have the RIGHT protection.
One Final Tip
Many carriers offer extra discounts of 5% or more when you’ve been with them at least 3 to 5 years… so definitely keep that in mind as you evaluate your homeowners policy.Remember, we’re here to help you, so call us today to make sure you are getting the greatest value out of your insurance.
by onlinefinancialnewsletters | Oct 4, 2016 | Personal Protection
Unlike motor vehicle insurance, homeowner’s insurance is not required by law. However, if you purchased your home with a mortgage, your lender likely required you to buy a homeowner’s insurance policy to protect their investment in case of a fire or natural disaster. It’s important coverage to have—even if you own your home free and clear—and you may even be able to reduce your annual premium once you understand the factors that generally affect homeowner’s insurance rates.
- Your home’s age and construction.
When setting a homeowner’s insurance rate, the insurer estimates how much it will cost to rebuild the property in question should it be damaged or destroyed. Materials and features common in older homes—such as hardwood floors and ornate details—cost more to repair and replace. Whether the exterior was constructed out of brick or wood will also factor into the cost, as will the age of the electrical, heating/cooling and plumbing systems. Upgrades reduce the likelihood of loss and often lower homeowner’s insurance premiums.
- Pools and hot tubs on the property.
If your home includes a swimming pool, spa or hot tub, your homeowner’s insurance is going to be more expensive because additional liability coverage will be required. While most policies include a minimum $100,000 in liability protection, your insurance agent may recommend increasing it to between $300,000 and $500,000 as well as adding an umbrella policy with at least $1 million in protection. If you want to minimize your homeowner’s insurance costs, avoid purchasing properties without outdoor pools and hot tubs.
- The location of the nearest fire department.
Direct property loss as a result of home fires has been estimated at $7.3 billion annually. If your home is near a fire department (or even a fire hydrant), you’ll pay less for your homeowner’s insurance as a result. Homes in urban and suburban areas usually have better fire protection than those in rural areas as well. So if you want to keep your homeowner’s insurance costs as low as possible, consider location when buying a home.
- The location of the nearest body of water.
If your home is near a coastline, large body of water, or in a floodplain, you’re going to pay higher homeowner’s insurance premiums. Depending on your location, your policy may have a separate deductible for hurricanes and windstorms. And flood damage—from any exterior source—is not covered by standard homeowner’s insurance policies. You’ll need a policy specifically for flood insurance if you’re in a high-risk area.
- Your past insurance claims history.
Even if you’ve purchased a new home and changed insurance companies, any claims you made at your previous residence will be considered when setting your homeowner’s insurance rate. Insurers can access this information through the Comprehensive Loss Underwriting Exchange, which reports filed claims for seven years. In general, the amount of the claim carries more weight than the reason for the claim.
Whether you’re in the process of looking for your next home or just want to explore ways to lower your current homeowner’s insurance rates, your insurance professional is your best resource for information on these and other factors that will affect your premium.
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