Blog

Insurance Blog

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/

Read more...

Do College Students Need Renters Insurance?

 

college students renters insurance

If you're a college student, it's important to have insurance coverage for your belongings, whether you are living in a dorm or an off-campus apartment. Depending on where you live, you may find that your personal property is covered by your parents' insurance, while in other cases you may need to purchase your own renters insurance policy.

DO I NEED RENTERS INSURANCE IF I LIVE IN A COLLEGE DORM?

If you're living in a dorm or other campus housing, your belongings may be covered under your parents' homeowners or renters insurance policy. You'll want to check with your agent to make sure, but the National Association of Insurance Commissioners says that students who are younger than 26 and living on campus may be covered through their parents' policy.

It's a good idea to know the policy's coverage limits for personal property. The Insurance Information Institute(III) says some policies limit coverage for belongings while they are away from the policyholder's home. This is often referred to as "off-premises coverage." For example, if your parents' policy provides $100,000 worth of coverage for belongings, but limits that coverage to 10 percent for items that are off-premises, it may provide up to $10,000 for items away from their home, including belongings you bring to school.

It's also important to note that certain items, such as a musical instrument or expensive jewelry, may have coverage limits. If the policy's limits aren't enough to cover the items you'll be bringing to school, your parents may be able to add scheduled personal property coverage to their homeowners or renters insurance policy to help cover certain valuable possessions.

DO I NEED RENTERS INSURANCE IF I LIVE OFF CAMPUS?

If you'll be living in off-campus housing, the III cautions that your parents' insurance will probably not extend to the belongings you bring with you (although you'll want to check with your agent to be certain). You may want to buy your own renters insurance policy to help pay to replace or repair your belongings if they are stolen or damaged by a covered risk. A covered risk, often described as a "peril" in insurance terms, is a cause of damage that is covered by your insurance policy. Read your policy to learn what risks it may cover, such as theft or fire.

A renters insurance policy also includes liability coverage, which may help prevent you from paying out of pocket if you are found legally responsible for someone else's injuries or accidental damage to their property (including your landlord's).

The III recommends asking your agent about coverage limits and whether you may benefit from additional coverage for certain valuables.

Hopefully you and your stuff stay safe and sound while you're running to and from classes, but it may be a good idea to keep a home inventory — it can be a big help if you ever need to file a claim.

Whether you're living in the dorms or are sharing an apartment with friends, we can help you choose the coverages you need as a college student. Give us a call, we would like to answer any questions and help you in covering your belongings. (239) 593-7333

Read more...

How to Increase the Value of Your Rental Property

 

Two people are making updates to a house.

As a homeowner, you likely know that making certain renovations may help increase the value of your property. But when you’re also a landlord, updating your property may make it more appealing to potential renters and allow you to increase monthly rent, according to Zillow. If you’re contemplating on making renovations to your rental property, read on to learn what factors help determine rent prices and what upgrades tend to offer the biggest returns.

Get a quick, personalized insurance quote today.

SELECT COVERAGE TYPE

Type of InsuranceHomeAutoRentersLifeCondoMotorcycleBoatATV/Rec. VehicleBusiness Insurance

What Factors Determine Monthly Rent?

Before you decide on upgrades, you may want to determine how much you can charge for your property’s monthly rent. Take a look at your local market and compare your property with other rentals in the area, says Zillow. Getting familiar with the cost of rentals when their property is the same size as yours, or has similar features (such as the number of bedrooms and bathrooms, or a garage), can help you set a guideline when determining your rental price. If you find that your property is in better condition and contains more features or upgrades, you may be able to increase the cost of rent at your place, Zillow says. As you consider upgrades, you may want to compare the rental cost of homes with similar features to the ones you’re considering, to help you decide whether they are worth the investment.

Renovations With the Biggest Return

Certain home renovations may put a percentage of what you spend back into the value of the property — the average renovation adds about 65 percent of its cost back to the value of the home, says U.S. News & World Report. For example, if you spend $500 on an upgrade, you would potentially increase the value of your home by 65 percent of that cost on average, or $325. According to Remodeling magazine, these are some renovations that have the highest potential for return:

  • New garage door: 98.3 percent

  • Upgraded front door: 91.3 percent

  • New deck addition: 82.8 percent

  • Minor kitchen remodel: 81.1 percent

  • Siding replacement: 76.7 percent

  • Window replacement: 74.3 percent

  • Bathroom remodel: 70.1 percent

If you’re a landlord getting ready to remodel, remember that you can boost the value of your property while also making your place more desirable to renters. Be sure to do your research and choose renovations that are suitable for your property, location and budget.

 

Article Found here: https://www.allstate.com/blog/increase-value-your-rental-property/

 

Read more...