Sunday, July 19, 2009
What is Term Life Insurance and some sample rates
What is Level Term Life Insurance? Actually, it is exactly what it sounds like. It is life insurance for a time period that you select—from 5 to 20 years. During that “term” your rates will not increase and your coverage will not decrease. Furthermore, the premiums are very low, just pennies per thousand dollars of coverage.
Why is Term Life so cheap? That’s a very good question and one that aptly illustrates the old saw “you get what you pay for.” Term life is inexpensive because all you have is a death benefit in the event of a tragedy. That is, although the death benefit can be very high—as much as a million dollars or more in coverage if you can afford it and are health-qualified—it has no cash value. This means that if you are more than 30 days late on your payment, it will lapse. And, regardless of what you pay into it, when it reaches the end of the initial period, it usually simply ends. Nevertheless, it is better than nothing and may be quite satisfactory to many people. Plus, the availability of a high face value at low cost will mean the survival of your family if you should die.
Monthly rates on 39 year old male for 100K of coverage for. Rate good for 30 yrs.
Select Choice 10 Year Level Term Series I
$100,000
$10.75
Select Choice 15 Year Level Term Series I
$100,000
$12.83
Select Choice 20 Year Level Term Series I
$100,000
$14.91
Select Choice 25 Year Level Term Series I
$100,000
$16.41
Select Choice 30 Year Level Term Series I
$100,000
$18.08
Thursday, July 16, 2009
What is renters insurance?
Renters face the same risk as homeowners in cases of disasters striking their dwelling. Your landlord or condo association may have insurance, but this only protects the building, not your things in it. Renters insurance can protect your belongings in case of disaster.
What standard policies cover
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Damage caused by aircraft
Damage caused by vehicles
Smoke
Vandalism or malicious mischief
Theft
Volcanic eruption
Falling objects
Weight of ice, snow, or sleet
Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance
Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance
Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)
Floods and earthquakes aren't on the list. If you live in an area prone to either, you'll need to buy a separate policy or a rider. In some coastal regions, where hurricanes might pose a threat, you might also need to buy a separate rider to cover wind damage.
Actual cash value vs. replacement cost
Make sure you let your agent know about any particularly valuable items you have.
One thing to look at is whether the insurance company will offer "actual cash value" (ACV) or "replacement cost coverage" for your belongings. As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen. So, if you bought a television five years ago for $500, it would be worth significantly less today. While you'd still need to spend about $500 for a new TV, your insurance company will pay only for what the old one was worth, minus your deductible.
Replacement cost coverage, on the other hand, will pay what it actually costs to replace the items you lost, again minus the deductible. In some regions, most insurers write ACV coverage. In others, they'll quote you replacement cost coverage by default. Replacement cost coverage will cost you more in premiums, but it will also pay out more if you ever need to file a claim. Let your agent know about any particularly valuable items you have. Jewelry, antiques and electronics might be covered only up to an amount that won't pay for their replacement.
If you have some items that are unusually expensive, such as a diamond ring, you'll probably want to purchase a separate rider. Without riders for expensive items you can't recover the full loss if it's beyond your policy limit.
Take inventory
Value of a typical single-person household
Furniture: $8,000
TV, VCR, stereo, tapes and CDs: $2,000
Home computer: $1,500
Microwave: $120
Other appliances: $240
Clothing: $3,000
Paintings, prints, photos: $800
Glassware, china, and silverware: $600
Sports equipment: $600
Cameras and photographer's equipment: $800
Books: $700
Jewelry: $1,000
Other property: $4,000
Total: $23,360
To ensure you are compensated for any belongings you lose from a fire, storm or other catastrophe, you should inventory all of your personal belongings. Your inventory should list each item, its value, and serial number. Photograph or videotape each room, including closets, open drawers, storage buildings, and your garage. Keep receipts for major items in a fireproof place.
If your apartment or condominium becomes uninhabitable due to a fire, burst pipes or any other reason covered by your policy, your renters insurance will cover your "additional living expenses." Generally, that means paying for you to live somewhere else.
Additional benefits
Liability protection is also standard with most renters policies. This means if someone in your unit slips and falls, you're covered for any costs, up to your liability limit. If this person sues you, you're covered for what they win in a court judgment as well as legal expenses, up to your policy's limit.
Keeping your premium low
Just like any other type of homeowners insurance policy, your renters insurance premium depends on a number of factors: where you live, your deductible, your insurance company and whether you need any additional coverage.
There are ways to reduce your renters or condo owners insurance bill. Increasing your deductible (the amount you pay before your coverage kicks in) is one strategy. Make sure you can afford whatever deductible you choose. If you're thinking about getting a dog, you might want to think twice. Some insurance companies are reluctant to write policies for owners of certain breeds.
Most insurers offer a discount for "protective devices" including smoke and fire detectors, burglar alarms and fire extinguishers.
Some insurers might offer discounts to policyholders who are over age 55 and retired. Others might offer a discount if you buy both an auto and renters policy (called a multi-line discount).
Brian Wyatt
213-8864
What standard policies cover
Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Damage caused by aircraft
Damage caused by vehicles
Smoke
Vandalism or malicious mischief
Theft
Volcanic eruption
Falling objects
Weight of ice, snow, or sleet
Accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning, or automatic fire-protective sprinkler system, or from a household appliance
Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or hot water heating system, an air conditioning or automatic fire-protective system
Freezing of a plumbing, heating, air conditioning or automatic, fire-protective sprinkler system, or of a household appliance
Sudden and accidental damage from artificially generated electrical current (does not include loss to a tube, transistor or similar electronic component)
Floods and earthquakes aren't on the list. If you live in an area prone to either, you'll need to buy a separate policy or a rider. In some coastal regions, where hurricanes might pose a threat, you might also need to buy a separate rider to cover wind damage.
Actual cash value vs. replacement cost
Make sure you let your agent know about any particularly valuable items you have.
One thing to look at is whether the insurance company will offer "actual cash value" (ACV) or "replacement cost coverage" for your belongings. As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen. So, if you bought a television five years ago for $500, it would be worth significantly less today. While you'd still need to spend about $500 for a new TV, your insurance company will pay only for what the old one was worth, minus your deductible.
Replacement cost coverage, on the other hand, will pay what it actually costs to replace the items you lost, again minus the deductible. In some regions, most insurers write ACV coverage. In others, they'll quote you replacement cost coverage by default. Replacement cost coverage will cost you more in premiums, but it will also pay out more if you ever need to file a claim. Let your agent know about any particularly valuable items you have. Jewelry, antiques and electronics might be covered only up to an amount that won't pay for their replacement.
If you have some items that are unusually expensive, such as a diamond ring, you'll probably want to purchase a separate rider. Without riders for expensive items you can't recover the full loss if it's beyond your policy limit.
Take inventory
Value of a typical single-person household
Furniture: $8,000
TV, VCR, stereo, tapes and CDs: $2,000
Home computer: $1,500
Microwave: $120
Other appliances: $240
Clothing: $3,000
Paintings, prints, photos: $800
Glassware, china, and silverware: $600
Sports equipment: $600
Cameras and photographer's equipment: $800
Books: $700
Jewelry: $1,000
Other property: $4,000
Total: $23,360
To ensure you are compensated for any belongings you lose from a fire, storm or other catastrophe, you should inventory all of your personal belongings. Your inventory should list each item, its value, and serial number. Photograph or videotape each room, including closets, open drawers, storage buildings, and your garage. Keep receipts for major items in a fireproof place.
If your apartment or condominium becomes uninhabitable due to a fire, burst pipes or any other reason covered by your policy, your renters insurance will cover your "additional living expenses." Generally, that means paying for you to live somewhere else.
Additional benefits
Liability protection is also standard with most renters policies. This means if someone in your unit slips and falls, you're covered for any costs, up to your liability limit. If this person sues you, you're covered for what they win in a court judgment as well as legal expenses, up to your policy's limit.
Keeping your premium low
Just like any other type of homeowners insurance policy, your renters insurance premium depends on a number of factors: where you live, your deductible, your insurance company and whether you need any additional coverage.
There are ways to reduce your renters or condo owners insurance bill. Increasing your deductible (the amount you pay before your coverage kicks in) is one strategy. Make sure you can afford whatever deductible you choose. If you're thinking about getting a dog, you might want to think twice. Some insurance companies are reluctant to write policies for owners of certain breeds.
Most insurers offer a discount for "protective devices" including smoke and fire detectors, burglar alarms and fire extinguishers.
Some insurers might offer discounts to policyholders who are over age 55 and retired. Others might offer a discount if you buy both an auto and renters policy (called a multi-line discount).
Brian Wyatt
213-8864
What is Personal Umbrella Insurance?
Personal umbrella insurance (commonly referred to as an umbrella policy) provides you with additional liability insurance above and beyond your normal auto and homeowners policies. Umbrella insurance is designed to protect your assets if you’re ever faced with a claim or lawsuit that exceeds the limits of these policies.
Do you have enough liability coverage to protect your assets if a large claim or lawsuit is brought against you? Not sure? Answer these questions to see:
Do you own a home, condo, or rental property?
Is there a teenage driver in your family?
Do you have a swimming pool?
Do you have babysitters or cleaning people who work in your home?
Do you transport other people’s children in your car?
Do you have a dog?
If you answered yes to any of these questions, you may be at risk and should consider umbrella insurance.
For example, if a visitor to your home slips and falls causing a disabling injury, you could be liable for damages beyond the coverage on your home policy. Without an Umbrella policy, you would be personally responsible for claims exceeding your home coverage limits.
Brian Wyatt
213-8864
Do you have enough liability coverage to protect your assets if a large claim or lawsuit is brought against you? Not sure? Answer these questions to see:
Do you own a home, condo, or rental property?
Is there a teenage driver in your family?
Do you have a swimming pool?
Do you have babysitters or cleaning people who work in your home?
Do you transport other people’s children in your car?
Do you have a dog?
If you answered yes to any of these questions, you may be at risk and should consider umbrella insurance.
For example, if a visitor to your home slips and falls causing a disabling injury, you could be liable for damages beyond the coverage on your home policy. Without an Umbrella policy, you would be personally responsible for claims exceeding your home coverage limits.
Brian Wyatt
213-8864
Monday, July 13, 2009
What is covered by a basic auto policy?
What is covered by a basic auto policy?
Your auto policy may include six coverages. Each coverage is priced separately.
1. Bodily Injury LiabilityThis coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
2. Medical Payments or Personal Injury Protection (PIP)This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
3. Property Damage Liability This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.
4. CollisionThis coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.
5. ComprehensiveThis coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
6. Uninsured and Underinsured Motorist CoverageThis coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.
Rates change all the time. Call me if you would like to shop your rate.
Brian Wyatt
213-8864
Your auto policy may include six coverages. Each coverage is priced separately.
1. Bodily Injury LiabilityThis coverage applies to injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy are also covered when driving someone else’s car with their permission.It’s very important to have enough liability insurance, because if you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings.
2. Medical Payments or Personal Injury Protection (PIP)This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It may also cover funeral costs.
3. Property Damage Liability This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else’s car, but it also includes damage to lamp posts, telephone poles, fences, buildings or other structures your car hit.
4. CollisionThis coverage pays for damage to your car resulting from a collision with another car, object or as a result of flipping over. It also covers damage caused by potholes. Collision coverage is generally sold with a deductible of $250 to $1,000—the higher your deductible, the lower your premium. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault, your insurance company may try to recover the amount they paid you from the other driver’s insurance company. If they are successful, you'll also be reimbursed for the deductible.
5. ComprehensiveThis coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire, falling objects, missiles, explosion, earthquake, windstorm, hail, flood, vandalism, riot, or contact with animals such as birds or deer.Comprehensive insurance is usually sold with a $100 to $300 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. Some companies offer glass coverage with or without a deductible.
6. Uninsured and Underinsured Motorist CoverageThis coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.Underinsured motorist coverage comes into play when an at-fault driver has insufficient insurance to pay for your total loss. This coverage will also protect you if you are hit as a pedestrian.
Rates change all the time. Call me if you would like to shop your rate.
Brian Wyatt
213-8864
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