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What Does A Mobile Home Insurance Policy Cover?

 

Mobile home insurance is your best plan for protecting your mobile home! Check out this quick read from Allstate about what is covered under this kind of home insurance.

Although manufactured homes, once commonly referred to as mobile homes, are built in a factory and moved to a chosen location, they aren't much different than a site-built single-family home — even when it comes to insurance. Whether you live there year-round or seasonally, it's important to help protect your home with mobile home insurance.

 

 

 

WHAT DOES MOBILE HOME INSURANCE COVER?

Insurance coverage for mobile and manufactured homes is usually similar to a standard homeowners policy, offering coverage for the home, your personal property and liability claims. The two basic coverages typically included in mobile home insurance policies are for physical damage and personal liability, the Insurance Information Institute (III) says.

Physical structure and contents:

If your mobile home or its contents sustain physical damage from perils such as fire, hail, theft or vandalism, the costs of repairs or replacement are typically covered by a mobile home policy. Additional structures on your lot, such as a patio or garage, and your personal belongings would also likely be covered. However, some policies only cover certain causes of loss. These "named perils" policies may have lower premiums, but be sure to check with your agent so that you know what is excluded from your policy.

Liability:

Mobile home policies typically include liability coverage, which may help protect you (within the stated policy limits) if you or someone in your household is found liable for damage to someone else's property or if a guest is injured at your home. However, liability coverage generally does not cover an injury to you or another member of your household, the III says. If you slip on your steps, you likely won't be reimbursed for any medical expenses. If your kids accidentally break the neighbor's window playing ball, however, your policy will likely cover the cost of repair.

DOES MOBILE HOME INSURANCE COVER WATER LEAKS?

Mobile home insurance may cover water leaks in certain situations. For instance, if a frozen pipe suddenly bursts, insurance may help pay for repairs to your mobile home or its contents. However, you'll likely find that your policy does not cover damage caused by a burst pipe or water leaks if they are the result of a lack of maintenance. For example, suppose your mobile home is vacant and heat is not appropriately maintained, resulting in a burst pipe, or you neglect to repair a leaky pipe. Mobile home insurance probably would not provide coverage for resulting damage in those situations.

The III notes that most mobile home insurance does not include coverage for flooding. You may be able to purchase a separate flood insurance policy through the National Flood Insurance Program.

OTHER CONSIDERATIONS

The coverage limits in a mobile home policy are frequently based on replacement cost, actual cash value or a stated amount (which means there is a maximum amount you'll receive if your home is destroyed), the III says. The III suggests reviewing a stated amount policy (also called an agreed value policy) annually, as you may want to adjust your policy based on current mobile home values.

Also, the III notes, most standard mobile home insurance policies don't provide coverage while the home is in transit.

When contacting your agent about mobile home insurance (not all insurance companies offer it), be sure to ask if any discounts are available. If you already have other coverage with the insurer, such as auto or life insurance, you may be eligible for a multi-policy discount. You may also want to ask whether any optional coverages are available, which may be recommended based on where you live or to expand your existing coverage.

 

Article found here: https://www.allstate.com/tr/home-insurance/mobile-home-insurance.aspx

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Is Jewelry Protected By Renters Insurance?

 

 Very informative article from Allstate about the benefits of renters insurance and the ways it protects your belongings including jewelry. 

 

If you own expensive jewelry, whether it's a diamond engagement ring, a family heirloom or a watch, you may have wondered whether renters insurance covers it.

When it comes to your belongings, it's important to understand what types of risks your renters insurance protects against and how much coverage it provides. In some cases, you may decide that it's worth putting extra protection in place. Here are some things to consider.

 

WHAT TYPES OF JEWELRY ARE COVERED?

The personal property coverage in a renters insurance policy may help pay to repair or replace belongings, including watches and rings, if they are stolen or damaged by a covered peril, such as a fire. Keep in mind that a coverage limit, which is the maximum a policy reimburses you for a covered claim, will apply. Certain items, including jewelry, often have lower coverage limits. Your deductible will usually be subtracted from the amount you're reimbursed for a covered claim.

Watches and jewelry generally won't be covered if you lose them or they are damaged due to wear and tear. Read your policy to learn what risks it covers.

INSURANCE FOR A DIAMOND RING

Renters insurance may help protect a diamond ring, up to the limits stated in your policy, if it is stolen or damaged by a covered peril. Keep in mind that the ring needs to be insured by its current owner. For instance, if someone buys an engagement ring and is in possession of it before proposing, the insurance needs to be in the purchaser's name. But once the ring is given to another person, it needs to be covered by the recipient's policy.

As with other belongings, a diamond ring would typically not be covered by renters insurance if it was lost. Read your policy to learn what risks it covers.

CAN YOU INSURE A WATCH?

Coverage for a watch works similarly to coverage for other jewelry when it comes to renters insurance. Read your policy or talk with your agent so you understand how much coverage you have on items like jewelry or watches.

Read on to learn more about how personal property coverage limits work for jewelry like rings and watches, and how purchasing extra coverage might offer greater protection.

PERSONAL PROPERTY COVERAGE LIMITS

Insurance policies typically come with limits for each type of coverage. For instance, the personal property coverage on your renters insurance policy may have a $50,000 limit (but check your policy to make sure you know what your own specific limits are). That means that if your belongings were damaged or destroyed by a covered peril, your policy may pay up to $50,000 to help you replace your stuff. However, renters insurance policies usually include sub-limits for certain types of items, such as jewelry.

That means that while you may have up to $50,000 in coverage to help pay to replace your belongings if they are stolen, for instance, you may find that your policy provides only $1,000 in coverage for theft of jewelry. Some insurers may set a "group" coverage limit for an entire category of valuables — for example, a maximum of $2,500 for all of your jewelry.

For this reason, it's important to document how much your jewelry is worth so that you can make sure you have enough coverage in place. Documents like receipts and appraisals are good ways to track the value of your belongings, the Insurance Information Institute (III) says. Such records may come in handy in the event that you need to file an insurance claim.

ADDITIONAL INSURANCE COVERAGE FOR JEWELRY

If you find that a standard renters insurance policy doesn't provide enough coverage for your jewelry, you may want to consider purchasing additional coverage.

Some insurers offer optional extended protection for certain valuations, including jewelry and watches. You may find that this type of protection provides coverage for a greater number of risks. You'd typically need to pay your deductible before coverage kicks in, and coverage is typically capped at a certain amount for each item (for instance, up to $1,000 in coverage per piece of jewelry). Your agent can explain the details of this type of coverage so you can decide if it makes sense for you.

Another type of additional coverage is often referred to as a floater or rider. Scheduled personal property coverage is an example of this type of protection. Scheduled personal property coverage basically helps you insure a specific item — an engagement ring or expensive watch, for instance — for its documented value.

To purchase scheduled personal property coverage, you'll typically need to have each piece of jewelry you want to insure professionally appraised, according to the III.

In addition to increasing your coverage limit for jewelry, scheduled items may also be protected against risks that a standard renters insurance policy doesn't cover. For instance, you'll typically find that scheduled personal property coverage covers an item if it's lost — left behind at a hotel, or dropped down a drain, for example — which a typical renters insurance policy may not cover.

You'll also typically find that you can choose to purchase scheduled personal property coverage without a deductible. Meanwhile, you would likely have to pay your deductible before a standard renters insurance policy kicks in to help cover a loss.

A local agent can help you assess your renters insurance coverage so you can determine whether it offers enough protection for your jewelry or whether you may benefit from additional coverage.

Article from:

https://www.allstate.com/tr/renters-insurance/jewelry-renters-insurance.aspx

 

 

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What Does Condo Insurance Cover?

 

Condo insurance is a policy that is purchased by the owner of a condo unit. It generally helps pay to repair your unit and your belongings if they are stolen or damaged by certain perils, such as fire or vandalism.

Allstate article 

WHAT DOES CONDO INSURANCE COVER?

Condo insurance typically includes a few standard coverages to help protect you, your condo unit and your belongings. Here's a look at how these coverages work:

Personal Liability Coverage

If someone is accidentally injured while visiting your condo and you are at fault, this coverage may help you pay for related legal expenses or your guest's resulting medical bills.

Guest Medical Coverage

If a guest is injured at your home, guest medical coverage may help pay for related medical expenses even if you are not at fault.

Building Property Protection

This type of coverage typically helps pay for repairs to the walls of your condo unit and its interior, which could include items such as built-in bookcases and fixtures, if damage is caused by a covered peril.

Personal Property Coverage

Belongings such as electronics, appliances, furniture and clothing are typically included under personal property coverage. If they are stolen or damaged in a covered claim, this coverage may help pay to repair or replace them.

Condo owners can typically choose from different types of personal property coverage, which determine how much your policy will reimburse you after a covered loss. They include:

  • Actual cash value, which typically pays you for the depreciated value of your damaged belongings.

  • Replacement cost coverage, which does not take depreciation into account. This coverage helps reimburse you for the difference between the actual cash value of your belongings and what you paid to repair or replace them.

Keep in mind that each coverage comes with a limit, which is the maximum amount you can be reimbursed for a covered claim. You may also need to pay a deductible before your coverage kicks in.

CONDO ASSOCIATION COVERAGE

It's also important to understand what is covered by your condo association's insurance policy, sometimes referred to as the master policy. Your association's policy may help cover areas such as the boiler room and the roof, as well as hallways and other shared spaces, including the common rooms and swimming pool.

In some cases, the master policy may cover the structure of your own condo unit, including the walls and the floors, the III says. Other master policies might provide coverage for your unit's original construction and fixtures, while others might cover only bare walls, ceilings and floors, according to the III. The terms of the master policy can affect your own insurance coverage of the unit. It's a good idea to brush up on what protection your condo association has in place so that you know what types of coverage your personal policy should provide.

Keep in mind there are many condo associations in the U.S., allowing for plenty of variations in insurance policies. The III suggests reading your association's bylaws to learn what parts of your home are covered by the master policy and which parts you will need to insure on your own.

OTHER PROTECTIONS

Many insurance providers offer optional coverage you can purchase for occurrences not covered by a standard condo insurance policy. For instance:

Loss Assessment Coverage

If your condo association issues a special assessment, in some cases this coverage may help cover your share. For example, if a fire damages a common area, this coverage may help pay for your part of the bill.

Flood Insurance

Flood damage is typically not covered by a standard condo policy. Most flood insurance policies are issued through the National Flood Insurance Program. In some cases, you may even be required by your mortgage lender to purchase flood insurance, according to the program.

Umbrella Insurance

For additional liability protection, you may want to consider investing in a separate personal umbrella policy. This kind of policy goes into effect when you reach the limit of your condo's liability coverage and can help you pay for large liability claims or judgments. It may also help provide coverage if you are sued for libel or slander.

Endorsements

Additional personal property coverage, such as scheduled personal property, is typically available for an additional cost. For example, while a standard condo policy typically caps coverage for theft of jewelry at $1,000 or $2,000, scheduled personal property coverage may provide additional coverage for those items. Scheduled personal property also typically provides coverage for additional risks.

This Allstate Article Found: https://www.allstate.com/tr/condo-insurance/what-does-typical-condo-policy-cover.aspx

 

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When it comes to insurance for your condo unit, you should make sure you have the coverage that fits your needs. Your local agent can help you tailor a condo insurance policy that's right for you.

 

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Flood Insurance At A Glance

Flood Insurance At A Glance

 

Flood insurance usually is a separate policy designed to help protect your home and belongings if they are damaged in a flood. Standard property insurance policies, such as homeowners insurance, typically do not cover flood damage.

Here are some things to consider about flood insurance:

 

 

 

 

IS FLOOD INSURANCE NECESSARY?

In some cases, you may be required to have flood insurance. If you own a home on land that is at high risk of flooding, your mortgage lender may require you to purchase flood insurance, says FloodSmart.gov.

Flood insurance isn't just for homes in high-risk areas, though. The Federal Emergency Management Agency(FEMA) says that all 50 states have experienced floods, and that more than 20 percent of the claims it handles come from the moderate- to low-risk regions.

WHO CAN BUY FLOOD INSURANCE?

Flood insurance is generally available to people in communities that participate in the National Flood Insurance Program (NFIP). Flood insurance policies can be purchased through local insurance agents by homeowners, business owners and renters who want protection for their homes, buildings and belongings. (Landlords can buy separate flood insurance policies to help protect the home.)

WHAT DOES FLOOD INSURANCE COVER?

So, what does a flood policy help protect? FEMA says you can purchase coverage to help protect your home, your personal belongings, or both. Here are some of the basics for these two types of coverage:

Building property coverage

  • What it helps protect: The physical structure of your home and its foundation; plumbing and electrical systems; central air and heating systems; attached bookcases, cabinets and paneling; and a detached garage (other detached structures need their own policy).

  • How it typically pays out: Replacement cost basis (what it would take to repair the home in today's dollars) for a primary residence and actual cash value (which factors in depreciation) for a vacation home.

  • Maximum coverage limit: $250,000

Personal contents coverage

  • What it helps protect: Clothing, furniture and electronics; curtains; some portable appliances; freezers and the foods within them; and certain valuables, like art (up to a specified limit).

  • How it typically pays out: Actual cash value basis (takes depreciation into account).

  • Maximum coverage limit: $100,000

  • We are your local agent! Call us with any questions and we will be happy to help!

  • (239) 593-7333

HOW DO I PURCHASE FLOOD INSURANCE?

A local insurance agent can help you purchase a flood insurance policy from the NFIP.

You'll typically need to wait 30 days for your policy to go into effect, though there are some exceptions. For instance, if you purchase a flood insurance policy at the same time you take out a mortgage, the insurance may go into effect immediately, according to FEMA.

WHAT'S NOT COVERED BY FLOOD INSURANCE?

Equally important is knowing what's not covered by flood insurance. Here are a few examples of the types of property and expenses that fall outside the scope of a basic flood insurance policy, according to the NFIP:

  • Moisture or mold/mildew damage that "could have been avoided by the homeowner"

  • Currency, precious metals and paper valuables, like stock certificates

  • Outdoor property such as decks, fences, patios, landscaping, wells and septic systems, and hot tubs and pools

  • Living expenses, like temporary housing (if flood damage deems your home uninhabitable).

  • Cars and other self-propelled vehicles (but your auto insurance may offer some protection for your car if you have comprehensive coverage).

In addition, flood insurance provides limited, if any, coverage for below-ground rooms like crawl spaces and basements, and their contents, the NFIP says. Some items in these spaces (like the furnace) are typically included under building coverage. Others (like the washer/dryer) are usually covered under personal contents coverage. And some items ─ like your personal effects ─ may not be covered at all when they're kept in below-ground rooms.

Talk to an agent to help make sure you're clear about the coverage details, exclusions and limitations of a flood insurance policy and to help you make the right choices for your situation.

Of course, you should also remember that a flood isn't the only potential source of water damage to a home. That's why, in addition to understanding the potential benefits of flood insurance, you should also review the coverages offered by your homeowners insurance policy.

Armed with the knowledge and insurance coverages that are right for you, you'll go a long way toward protecting your home against water damage.

Article From Here: https://www.allstate.com/tr/flood-insurance/flood-insurance-101.aspx

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3 Most Frequently Asked Flood Insurance Questions

As you know we are in hurricane season! Flood insurance is essential for homeowners living in Florida.

Check out our video below where we answer 3 of the most frequently asked questions about flood insurance

Our Florida insurance expert explains things about flood insurance and answers 3 questions that are frequently asked.

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Homeowners Discounts

 

SAVING IS EASY WITH US.

naples florida homeowners insurance

 

Protecting the place you call home doesn't have to be expensive. And with a variety of discounts and savings opportunities, Allstate makes it even easier to get a good deal. Talk to an agent to take advantage of available discounts.

FEATURED DISCOUNTS

 

Multi-policy discount

Save up to 25% when you bundle home and auto policies with Allstate.

Easy Pay Plan®

Save up to 5% when you set up automatic payments.

Claim-free discount

Save up to 20% when you switch to Allstate without a recent home insurance claim.

 

 

 

 

 

SEE EVEN MORE WAYS TO SAVE.

  • Protective device discount
    Save when your home has theft or fire protection devices.

  • Early signing discount
    Save up to 10% on your home insurance premium when you sign up for a new policy at least 7 days before your current one expires.

  • Welcome & loyalty discount
    Save up to 10% on your home insurance premium just for switching to Allstate. As long as you're a customer, you'll continue to save 10% every year after that.

  • Home buyer discount
    Save if you purchase a newly constructed home, or if you're a recent homebuyer.

  • 55 and retired discount
    Save if you're over the age of 55 and are retired.

  • Additional discounts
    Save for smoke-free homes, homes with storm shutters, homes with hail-resistant roofs and more.

 

Article Here

 

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What Is Uninsured Motorist Coverage?

 

auto insurance naples florida

Uninsured motorist coverage is part of a car insurance policy that helps pay for your medical bills or car repairs if you're hit by a driver who doesn't have car insurance.

Typically, when you're in an accident and the other driver is at fault, his or her auto liability coverage would help pay for your medical bills or repairs to your car. But if the at-fault driver doesn't have car insurance, you may have to pay out of your own pocket for those expenses. That's where uninsured motorist coverage may help.

WHAT IS UNDERINSURED MOTORIST COVERAGE?

Underinsured motorist coverage is a protection that helps pay for your expenses if you're hit by an underinsured driver. In some states, uninsured and underinsured motorist coverages are bundled together and offered as a single protection on your car insurance policy.

So, what does it mean to be "underinsured"? It depends on where you live. Each state defines "underinsured" a bit differently. An underinsured driver has auto liability insurance but either:

  • Their liability limits aren't enough to cover your bills after an accident, or

  • Their liability limits are less than or equal to your underinsured motorist coverage limit

WHAT DOES UNINSURED MOTORIST INSURANCE TYPICALLY COVER?

Uninsured motorist coverage may offer two types of protection:

  • Uninsured motorist bodily injury coverage helps pay for your medical expenses resulting from a crash caused by an uninsured driver. In some states this protection may extend to a family member who is driving your car, or your passengers.

  • Uninsured motorist property damage coverage helps pay for repairs to your vehicle after a crash caused by an uninsured driver. This protection is not available in all states.

Underinsured motorist coverage offers one type of protection:

  • Underinsured motorist bodily injury coverage helps pay for your medical bills if you are hit by an underinsured driver.

IS UNINSURED MOTORIST COVERAGE REQUIRED?

Depending on where you live, uninsured motorist coverage may be required by law: 21 states and the District of Columbia have laws that make it mandatory.

Drivers in most states are legally required to carry auto liability insurance coverage. However, one in eight drivers on U.S. roads is uninsured, according to the Insurance Information Institute (III). So, it may be a good idea to consider uninsured motorist coverage, even if it's optional where you live.

IS UNDERINSURED MOTORIST COVERAGE REQUIRED?

Underinsured motorist coverage is an optional protection in most states.

Give us a call to find the best and most affordable coverage for your vehicle. 

 

(239) 593-7333

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Flood Insurance At A Glance

 

 

 Flood insurance usually is a separate policy designed to help protect your home and belongings if they are damaged in a flood. Standard property insurance policies, such as homeowners insurance, typically do not cover flood damage. 

Here are some things to consider about flood insurance:

 

IS FLOOD INSURANCE NECESSARY?

In some cases, you may be required to have flood insurance. If you own a home on land that is at high risk of flooding, your mortgage lender may require you to purchase flood insurance, says FloodSmart.gov.

Flood insurance isn't just for homes in high-risk areas, though. The Federal Emergency Management Agency(FEMA) says that all 50 states have experienced floods, and that more than 20 percent of the claims it handles come from the moderate- to low-risk regions.

WHO CAN BUY FLOOD INSURANCE?

Flood insurance is generally available to people in communities that participate in the National Flood Insurance Program (NFIP). Flood insurance policies can be purchased through local insurance agents by homeowners, business owners and renters who want protection for their homes, buildings and belongings. (Landlords can buy separate flood insurance policies to help protect the home.)

WHAT DOES FLOOD INSURANCE COVER?

So, what does a flood policy help protect? FEMA says you can purchase coverage to help protect your home, your personal belongings, or both. Here are some of the basics for these two types of coverage:

Building property coverage

  • What it helps protect: The physical structure of your home and its foundation; plumbing and electrical systems; central air and heating systems; attached bookcases, cabinets and paneling; and a detached garage (other detached structures need their own policy).

  • How it typically pays out: Replacement cost basis (what it would take to repair the home in today's dollars) for a primary residence and actual cash value (which factors in depreciation) for a vacation home.

  • Maximum coverage limit: $250,000

Personal contents coverage

  • What it helps protect: Clothing, furniture and electronics; curtains; some portable appliances; freezers and the foods within them; and certain valuables, like art (up to a specified limit).

  • How it typically pays out: Actual cash value basis (takes depreciation into account).

  • Maximum coverage limit: $100,000

  • Find an agent here

HOW DO I PURCHASE FLOOD INSURANCE?

We can help you purchase a flood insurance policy from the NFIP. Give us a call at (239) 593-7333. 

You'll typically need to wait 30 days for your policy to go into effect, though there are some exceptions. For instance, if you purchase a flood insurance policy at the same time you take out a mortgage, the insurance may go into effect immediately, according to FEMA.

WHAT'S NOT COVERED BY FLOOD INSURANCE?

Equally important is knowing what's not covered by flood insurance. Here are a few examples of the types of property and expenses that fall outside the scope of a basic flood insurance policy, according to the NFIP:

  • Moisture or mold/mildew damage that "could have been avoided by the homeowner"

  • Currency, precious metals and paper valuables, like stock certificates

  • Outdoor property such as decks, fences, patios, landscaping, wells and septic systems, and hot tubs and pools

  • Living expenses, like temporary housing (if flood damage deems your home uninhabitable).

  • Cars and other self-propelled vehicles (but your auto insurance may offer some protection for your car if you have comprehensive coverage).

In addition, flood insurance provides limited, if any, coverage for below-ground rooms like crawl spaces and basements, and their contents, the NFIP says. Some items in these spaces (like the furnace) are typically included under building coverage. Others (like the washer/dryer) are usually covered under personal contents coverage. And some items ─ like your personal effects ─ may not be covered at all when they're kept in below-ground rooms.

Talk to an agent to help make sure you're clear about the coverage details, exclusions and limitations of a flood insurance policy and to help you make the right choices for your situation.

Of course, you should also remember that a flood isn't the only potential source of water damage to a home. That's why, in addition to understanding the potential benefits of flood insurance, you should also review the coverages offered by your homeowners insurance policy.

Armed with the knowledge and insurance coverages that are right for you, you'll go a long way toward protecting your home against water damage.

Article from: allstate

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Save Money on your Auto Insurance with These Discounts!



 

 

One of the obvious suggestions to lower your car insurance is to shop around for the best rate but be aware that a lot of companies will give you a lower rate but will leave out important coverage in order to get you to that price. Make sure before you purchase your new car insurance that you have the coverage that you need. With our insurance, we give you the best coverage as well as opportunities to keep your insurance at the cheapest rate possible.

No one wants to spend more on their car insurance than they have to. Here are discounts that we offer to ensure that you get not only the cheapest rate possible but the right coverage to protect you on the road.        

    florida car insurance

    

DISCOUNTS With The Roe Agency

    

Vehicle Discounts:

Anti-lock brake discount

Save up to 10% if your car is equipped with anti-lock brakes

 

Anti-theft device discount

Save up to 10% if there's an anti-theft device in your car

 

New car discount

Save up to 15% if your car is a current model year or one year prior and you're the first owner.

 

Policy Discounts

The way you pay, add or manage your insurance policies can help you save on your premiums.

EZ pay plan discount

Save up to 5% when you set up automatic withdrawal for paying your premium

 

eSmart® discount

Save up to 10% if you sign up for ePolicy, a convenient way to view insurance documents online

 

FullPay® discount

Save up to 10% when you pay your policy in full

 

Multiple policy discount

Save on your auto insurance when you have multiple policies from Allstate

 

Early Signing Discount®

Save up to 10% when you sign your policy 7 days before it becomes effective

 

Responsible payer discount

Save up to 5% if you did not receive a cancellation notice for non-payment in the past year

 

Smart student discount

Save up to 35% if you meet one of these requirements:

  • 1. You're a single, full-time student under the age of 25 and getting good grades

  • 2. Your teen successfully completes the teenSMART driver education program

  • 3. Your child attends school at least 100 miles away from where your car is garaged

Safe Driving Club

 

Save big if you meet the safe driving requirements to make it into the club.

 

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8 Life Insurance Myths Debunked

 

 

life insruance 

 

We'll do anything to protect our loved ones, right? But the decision to buy life insurance is often met with hesitation, confusion or even denial. After all, it's not an easy subject to think about: What would happen if you were to pass away? When it comes to protecting your loved ones with life insurance, it's important to separate fact from fiction.

To get started, read on to learn the truth about eight life insurance myths — it may change your perspective and lead you to make informed decisions about purchasing a policy.

MYTH 1: I'M SINGLE, OR MARRIED WITH NO CHILDREN, SO I DON'T NEED LIFE INSURANCE.

Even if you are in this group, life insurance is important. Life insurance may help your loved ones pay off your debts (like some private college loans, for instance) if you pass away. Planning early not only helps protect your loved ones from burdensome expenses, but it also gets you started on a financial plan for the future.

family

MYTH 2: I CAN'T AFFORD LIFE INSURANCE.

According to the 2015 Insurance Barometer study conducted by Life Happens, 80 percent of consumers misjudge the cost of term life insurance. Life insurance can be very affordable for many people, depending on the coverage you’re looking for. You can start with a policy that fits your budget, and you may be able to purchase additional coverage later on.

 

MYTH 3: I'M A STAY-AT-HOME PARENT. I DRAW NO INCOME. I DON'T NEED LIFE INSURANCE.

If you're a stay-at-home parent, life insurance is still important. While you may not bring in an actual paycheck for the household, you likely provide services that could cost tens of thousands of dollars to replace each year. These may include child care, daily transportation, home maintenance and cooking, to name a few. If you were to pass away, life insurance may help cover some of these costs.

 

MYTH 4: I HAVE A LIFE INSURANCE POLICY THROUGH MY JOB. IF I TAKE ANOTHER JOB OR GET LAID OFF, I CAN TAKE THE POLICY WITH ME.

Typically, your employer-offered life insurance policy isn’t portable — meaning if you leave your job, you’re probably also leaving your life insurance protection behind. However, when you buy your own, separate life insurance policy you decide how long you want to be covered. Additionally, with an individual policy, you may be able to get more personalized coverage that fits your financial needs.

 

MYTH 5: MY BENEFICIARIES WILL HAVE TO PAY INCOME TAXES ON THE PROCEEDS FROM MY LIFE INSURANCE POLICY.

Your life insurance death benefits are generally income-tax-free and do not have to be reported, according to the International Revenue Service (IRS). Life insurance helps provide your family with income-tax-free money to help pay for a number of things like funeral expenses, a mortgage, or college tuition.

 

MYTH 6: IF I GET A TERM LIFE INSURANCE POLICY, I CAN'T CONVERT IT TO PERMANENT OR WHOLE LIFE INSURANCE POLICIES.

It is possible to convert some term life insurance policies into a permanent life insurance policy, depending on the policy purchased. However, it's a good idea to speak to your agent up front, as these types of term policies typically must be converted within a specified time period. You also may encounter additional requirements with a convertible term policy, such as increasing premiums.

MYTH 7: I DON'T NEED LIFE INSURANCE ONCE MY CHILDREN ARE ADULTS.

Life insurance can help you in many different stages in your life. Life insurance later in life has a number of advantages, such as helping to relieve the burden of paying for final costs, paying for state estate taxes your heirs may face, paying off any debt you may have left behind, or simply leaving your children with an inheritance.

 

MYTH 8: I HAVE A COMFORTABLE AMOUNT OF SAVINGS, SO I DON'T NEED LIFE INSURANCE.

While your savings may last through your retirement, have you thought about final expenses? According to the National Funeral Directors Association, the national median cost of a funeral with a burial in 2014 was $7,181. If you don’t have enough money saved, it is possible your loved one won’t be able to pay off final expenses. Keep in mind, if your mortgage has not been paid off, your loved ones may not be able to hold onto your home, if not enough money has been saved.

No matter where you are in life, it's important to help protect your loved ones and your assets with life insurance. If you have any questions, reach out to us! (239) 593-7333

 

Article from: https://www.allstate.com/tr/life-insurance/life-insurance-myths-facts.aspx

 Photo credit: https://dod.defense.gov/News/Article/Article/1164328/face-of-defense-airman-provides-family-haven-for-orphans/

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