If you were no longer there to provide for them, would your family be able to keep their home? Could your children attend college? If you answered ‘no’ to either of these questions, it may be time to look at your life insurance coverage.
September has been designated Life Insurance Awareness Month by the Life and Health Insurance Foundation for Education (LIFE). The Foundation is encouraging people to examine their life insurance policies to determine if they are adequately protected.
While your needs may vary, a Human Life Value study conducted by LIFE found that the average life value among U.S citizens was $803,788. A male’s value, meaning the economic value to others, was nearly $1 million, while a female’s value was over $660,000. While the life insurance need is not as high as those values, the average life insurance policy for males in the study was closer to $300,000 while women had $165,245.
Life insurance can be the foundation of a sound financial plan, especially given the continuing need after the death of a breadwinner. Think of it as a safety net should a wage earner die unexpectedly.
In addition to that, permanent life insurance may accumulate a cash value that can be accessed while you are still living. While any loans from a policy will accrue interest and diminish the cash value and any subsequent death benefit, the proceeds could be used for any number of reasons.
Life insurance can be one of the most important purchases you make. Take some time during Life Insurance Awareness Month to meet with your insurance agent and examine your life insurance needs.
Sunday, August 31, 2008
Monday, August 25, 2008
Emergency – Are you Prepared?
Every year we face possible disasters – wildfires, earthquakes, tornadoes, hurricanes and winter storms. If a disaster strikes your home, are you and your family prepared? Do you know where important documents, medications, and essential supplies are in case you have to evacuate? Do you and your family know how you would get out of your house, what you would do with your pets, where you meet each other if you get separated? Do you have a single point of contact you can call to let others know you’re safe?
If not, now is the time to prepare. Don’t wait until faced with a disaster to begin thinking about emergency preparations.
No matter what potential disaster you might face, there are basic items everyone should have in their emergency kit:
· Flashlight
· Battery-powered radio (don’t forget extra batteries)
· Non-perishable food items and a manual can opener
· Bottled water
· Medications
· First-aid supplies
· Important family documents in a waterproof container
· One complete change of clothing and sturdy footwear
These items should be in a backpack or other easily portable bag that is stored in a safe place for quick retrieval. Each family member should have their own kit. At least once a year rethink your kit and replace batteries, food and clothes.
In addition to an emergency kit, be sure your family has an evacuation plan and communications plan. Every member of your household should be fully aware of what to do and where to go in case of an emergency.
Additional information on being prepared for a disaster is available from emergency assistance organizations or at statefarm.com®.
Monday, August 18, 2008
Are you financially exposed?
Many people realize the need for life insurance but keep putting it off until it is too late. You may think that life insurance is confusing, expensive and complicated. You may think you don’t know enough to make the right decisions for you and your loved ones. Postponing this decision leaves you and your family exposed financially.
Assumption #1: I’ll always be able to buy life insurance.
You could develop a health condition that makes you uninsurable or could make life insurance too costly for you.
Assumption #2: I’ll get life insurance later when I’m older or have a family.
Life insurance may be needed at all stages of life. Whether married or single, male or female, with children or without, you may have financial obligations that need to be met. Life insurance provides financial security for you and your loved ones.
Assumption #3: My family and I are covered by the group insurance at work.
To meet the future needs of your family, you need to have 7 to 10 times your annual
income. Most group term insurance amounts offered by employers won’t meet this need. And, when you don’t work for that employer any longer, you usually lose that coverage.
Assumption #4: My husband has life insurance so I don’t need it.
Women often live longer than men but not always. There are countless stories of men who had to shoulder the family financial burden along with the emotional burden after their wife passed away.
Assumption #5: My family can cover funeral and burial expenses.
Burying a spouse or loved one is the most stressful time in a family’s life. Having life insurance can reduce financial concerns for the family.
Take the time now to review your needs and provide adequately for yourself and your family.
For more information or to review your current policy, please contact my office or an insurance professional.
Assumption #1: I’ll always be able to buy life insurance.
You could develop a health condition that makes you uninsurable or could make life insurance too costly for you.
Assumption #2: I’ll get life insurance later when I’m older or have a family.
Life insurance may be needed at all stages of life. Whether married or single, male or female, with children or without, you may have financial obligations that need to be met. Life insurance provides financial security for you and your loved ones.
Assumption #3: My family and I are covered by the group insurance at work.
To meet the future needs of your family, you need to have 7 to 10 times your annual
income. Most group term insurance amounts offered by employers won’t meet this need. And, when you don’t work for that employer any longer, you usually lose that coverage.
Assumption #4: My husband has life insurance so I don’t need it.
Women often live longer than men but not always. There are countless stories of men who had to shoulder the family financial burden along with the emotional burden after their wife passed away.
Assumption #5: My family can cover funeral and burial expenses.
Burying a spouse or loved one is the most stressful time in a family’s life. Having life insurance can reduce financial concerns for the family.
Take the time now to review your needs and provide adequately for yourself and your family.
For more information or to review your current policy, please contact my office or an insurance professional.
Sunday, August 10, 2008
Are There Gaps in Your Business Coverage?
There are many types of insurance to cover your small business. From property insurance on your building or contents to coverage for your business vehicles, there is a policy to meet most of your needs.
While these policies on their own may provide enough coverage, you may be unaware of gaps. Most insurance policies place limits on the amount of coverage provided for certain items as well as the types of losses that are covered. These gaps could be significant depending on your situation.
Fortunately, insurance companies may offer endorsements that are added to policies and extend coverage to a type of loss or increase the amount of coverage available. For example, if your standard policy limits coverage for an outdoor sign at $500, an endorsement can be added if the cost of your sign exceeds that limit.
Coverage may also be extended to include the personal property of others, normally excluded in the policy language. This could be a much needed option for repair businesses or dry cleaners.
It is important that you look at the coverages provided by your business policy to determine if they are adequate for your needs. Your business insurance agent should be able to explain the limitations and what options could be added to increase coverage. You may want to start by making a list of questions applicable to your particular business.
You have worked hard to make your business a success. You owe it to yourself to have adequate coverage in place to protect what you have built.
While these policies on their own may provide enough coverage, you may be unaware of gaps. Most insurance policies place limits on the amount of coverage provided for certain items as well as the types of losses that are covered. These gaps could be significant depending on your situation.
Fortunately, insurance companies may offer endorsements that are added to policies and extend coverage to a type of loss or increase the amount of coverage available. For example, if your standard policy limits coverage for an outdoor sign at $500, an endorsement can be added if the cost of your sign exceeds that limit.
Coverage may also be extended to include the personal property of others, normally excluded in the policy language. This could be a much needed option for repair businesses or dry cleaners.
It is important that you look at the coverages provided by your business policy to determine if they are adequate for your needs. Your business insurance agent should be able to explain the limitations and what options could be added to increase coverage. You may want to start by making a list of questions applicable to your particular business.
You have worked hard to make your business a success. You owe it to yourself to have adequate coverage in place to protect what you have built.
Thursday, August 7, 2008
Shopping for Auto Insurance
Whether you’re a first time buyer of auto insurance or already have it but are looking for a better deal, you should be asking several questions.
First, is the person from whom you’re buying (your agent) a visible, established member of your community – someone you know and trust?
Second, is the company from whom you’re buying well known? What is its reputation? What about price? Because there are hundreds of companies competing for your business, prices vary – sometimes a lot. It may pay you to shop. Be sure the premiums you’re quoted are for equal amounts of coverage.
How about service? Price is important but saving money won’t mean much unless you get the service you need – when you need it. If possible, ask other clients of your prospective agent how they’ve been treated, especially when they’ve had a claim. Find out how the company handles claims. Is the method convenient for you, no matter where you have an accident?
How about solvency? Is the company you’re considering still going to be in business when you file your claim? Your state department of insurance has financial rating information on all of the companies that do business in its state.
Once you’ve decided on a company and an agent, there are more questions to ask:
How much coverage do you need? The required minimum amounts of liability coverage may not be enough for you. Consider your needs in light of your assets and income.
How much can you afford to pay if there’s a big judgment against you because of an accident?
What about deductibles? Deductibles lower your premiums – most commonly for collision and comprehensive coverages – but increase the amount of loss that comes out of your pocket.
How much additional risk are you willing to take in order to save?
Should you carry collision and comprehensive coverage? As your car’s value decreases, you might consider dropping these coverages and pocketing the savings on premiums. But consider if the savings are enough to offset the risk of footing the entire cost of repairing or replacing your car.
Auto insurance is not a generic commodity. It is a product that should be tailored to each individual. Your agent can help you answer these questions and help you tailor your auto insurance to your specific and unique needs.
First, is the person from whom you’re buying (your agent) a visible, established member of your community – someone you know and trust?
Second, is the company from whom you’re buying well known? What is its reputation? What about price? Because there are hundreds of companies competing for your business, prices vary – sometimes a lot. It may pay you to shop. Be sure the premiums you’re quoted are for equal amounts of coverage.
How about service? Price is important but saving money won’t mean much unless you get the service you need – when you need it. If possible, ask other clients of your prospective agent how they’ve been treated, especially when they’ve had a claim. Find out how the company handles claims. Is the method convenient for you, no matter where you have an accident?
How about solvency? Is the company you’re considering still going to be in business when you file your claim? Your state department of insurance has financial rating information on all of the companies that do business in its state.
Once you’ve decided on a company and an agent, there are more questions to ask:
How much coverage do you need? The required minimum amounts of liability coverage may not be enough for you. Consider your needs in light of your assets and income.
How much can you afford to pay if there’s a big judgment against you because of an accident?
What about deductibles? Deductibles lower your premiums – most commonly for collision and comprehensive coverages – but increase the amount of loss that comes out of your pocket.
How much additional risk are you willing to take in order to save?
Should you carry collision and comprehensive coverage? As your car’s value decreases, you might consider dropping these coverages and pocketing the savings on premiums. But consider if the savings are enough to offset the risk of footing the entire cost of repairing or replacing your car.
Auto insurance is not a generic commodity. It is a product that should be tailored to each individual. Your agent can help you answer these questions and help you tailor your auto insurance to your specific and unique needs.
Wednesday, August 6, 2008
Subscribe to:
Posts (Atom)
