Do I need Life Insurance?

As insurance agents, we deal with crazy, unpredictable situations all the time. It's safe to say we have almost seen it all. That's why we always tell our clients it's better to be safe than sorry when it comes to insurance coverage. There are things in life we just can't plan for, but that's why we insurance -- it's our "safety net" for life's curve balls. 

One of the most-discussed types of insurance is Life Insurance. A lot of clients are torn about when and if to purchase a life insurance plan. Our answer is yes, it's always a good idea to carry life insurance, even if it's a basic plan offered by your place of employment. When you're ready, there are varied types of plans depending on whether you have children, medical conditions, age range, etc. The best thing to do is sit down and discuss together what plan is best.

What we'd like to share today are the Top 10 Reasons You Need Life Insurance:

1. You never know.

Dying suddenly — in an accident, by unexpected illness or even of natural causes — can happen at any time. Life insurance helps your loved ones pay the mortgage, bills, even college costs, after you’re gone. It also provides tax-free cash to pay estate and death duties. Nothing can replace you in their hearts, but planning ahead with life insurance can make things easier for those you leave behind.

2. Funerals are expensive.

In some cases, up to $7,000 to $10,000 — and we’re not talking about extravagant funeral services. This is the average cost of a burial ceremony that will be faced by your loved ones.  At an already difficult and emotional time, your life insurance can cover these expenses without financial hardship or further stress.

3. Protect those you love.

In your life, you work hard to make sure those you love — spouse, partner, children, family members — are taken care of. It’s just as important to consider providing financial support for the future living costs of surviving dependents. After all, they will have to go on without you. Make sure they’re protected, too.

4. Death shouldn’t mean debt.

Life Insurance can help your dependents cover any financial responsibilities that are left after your death. Debt can be a tremendous burden, on top of the already emotional toll your absence creates in their lives.

5. Anything can happen.

If you develop a serious illness, you may not be able to get life insurance to the extent you need it — or at all. If you have a terminal illness, life insurance can provide you with financial support. Life insurance can also be used in case of emergencies by requesting a withdrawal or loan.

6. Take care of business.

Life Insurance isn’t just for individuals. It can protect a business from financial loss, liabilities or instability in the case of the death of a business owner/partner. Whether providing necessary short-term cash or keeping operations going until things settle, life insurance can be invaluable in maintaining the business you’ve worked so hard to build.

7. Supplement your retirement.

You can use life insurance to make sure your retirement savings lasts as long as you do. An annuity is like a do-it-yourself pension plan — you put an amount of money into a life insurance product and in return you get a guaranteed stream of income month after month, for as long as you live.

8. It makes financial sense.

Life insurance is considered a financial asset, which can help increase your credit and help you to get a loan or health insurance. Many policies have cash value, which even in case of bankruptcy cannot be touched by creditors.

9. Give to charity.

Life Insurance can enable you to leaving a lasting gift to a favorite cause or charity that is much larger than you would otherwise set aside for donation.

10. Peace of mind, plain and simple.

No amount of money can ever replace a person. But more than anything, life insurance can help provide protection for the uncertainties in life.

We hope this will help you determine whether you and your family need to invest in a life insurance plan. As we discussed early in the post, it's better to be safe than sorry and these are the reasons why. Call us anytime to discuss not only your life insurance needs, but any other coverage as well. We are always happy to help in any way we can!

The Scoop on Renter's Insurance

If you live in and rent an apartment or rental home, your insurance needs are a bit different from homeowners. Many renters believe they don't need to have insurance on their property because they don't actually own it, but that is not true! We can assure you that it's worth the time and money to insure your personal belongings and protect you from medical or legal expenses in the event of an accident at the property. We've also heard many misconceptions about renters insurance, so we think this article from US News will be quite helpful and educational for both renters and landlords.

Myth #1: "I don't have enough stuff to need insurance coverage."
Since all rental properties are susceptible to a variety of damages, whether it be fire, theft or even a broken kitchen appliance, many experts say there isn't a scenario in which a tenant should go without renters insurance. But it is important to weigh the associated costs, both monetary and sentimental.

A common reason individuals avoid renters insurance is they do not think their belongings are worth the coverage. "Many renters underestimate the value of their possessions and would be surprised by how much it would cost to replace the items they have accumulated," says Emily Lyons, a Liberty Mutual property insurance expert.

If renters think they do not have enough stuff to warrant a renters insurance policy, Keith Rutman, vice president of specialty property lines for Allstate Insurance, suggests they go around their residence, room by room, and take full inventory of their belongings before making a decision. "Most people usually only think of the big-ticket items, like electronics, but if you really think about it, it's so much more in that," he says. "For example, in your kitchen, it's not only the appliances, but the towels, dishes, utensils and food, too. We find that the average renter in a two-bedroom apartment has about $30,000 worth of stuff."

Along with evaluating how much your belongings cost, it's important to consider how much you personally value those items. In some situations, how much you care about your belongs may override cost in your decision to take out a renters insurance policy.

***This second myth is so common -- we want our clients to be educated on this and know their landlord is not responsible for renters' lost expenses.***

Myth #2: "Since I am a renter, my landlord will cover property damages."
Occasionally, a landlord may partner with an insurance company to offer renters insurance to tenants, but more frequently, the insurance policies that landlords hold for their properties only protect the building itself. "After acquiring a rental housing unit, landlords change their insurance policies from a traditional homeowners policy to a rental policy, and when they do that, it only covers just the structure, not the content or any of the tenants belongings," says James Emory Tungsvik, president of the National Association of Residential Property Managers.

Even if the landlord owns appliances or other items within your rented home, he or she is not responsible for damages they inflict on your personal property. "Say you just bought a few hundred dollars' worth of frozen food and you stuck it in the freezer that the landlord owns, and it breaks down, spoiling all the food," Tungsvik says. "If you wanted coverage for that lost expense, the landlord would not responsible for it. That would be part of renters insurance."

Myth #3: "Renters insurance only covers my personal belongings."
Accidents, such as a flood in your apartment, may damage other tenants' property and can be costly. Renters insurance can protect you from these situations and help cover those unexpected costs. "For example, if your bathtub overflows and water seeps into the apartment below, damaging your neighbor's furniture or rug, your renter's policy will cover the damage up to your liability limits," Lyons says.

This liability protection can cover medical or legal expenses associated with your home. "If you are entertaining at your home and, say, someone trips over a loose rug or injures his or herself in your apartment in some way, could you afford to pay the potential medical expenses associated with that, but in the event of a lawsuit, could you pay the legal expenses as well?" Rutman asks. "A typical renters policy will cover that full range of risks that any renter could be exposed to."

Myth #4: "Renters insurance is too expensive."
Unlike car insurance or a typical homeowners insurance policy, a renters insurance plan is not a large additional monthly cost. "You are probably looking at about an additional $185 a year," says Tim LaCasse, insurance agent. "I try to tell people that for less than $20 a month, all your personal property is protected." Policy premiums can vary between individuals, providers and location, but as a whole, renters can expect to pay about 50 cents per day for a renters insurance policy.

For even more savings, many insurance providers offer multi-policy discounts to customers who add renters insurance onto an existing insurance package. On average, bundling can decrease overall monthly insurance costs by approximately 5 to 10 percent, according to LaCasse.

However, even though renters insurance is less expensive than homeowners insurance, it could still become expensive if consumers are not careful, regardless of the policy type. "You have to shop around," Hunter says. "You could pay twice as much with one company than you would if you had a policy with another.

Call First Advantage Insurance today to talk to one of our agents about the best renters insurance option for you. For a minimal expense, renters can live in their home worry-free and protected from many unexpected events like theft, fire, flooding, or accidents. It's so important to protect yourself and your belongings, and we are here to help you do just that!