Archives: 2022

A Dozen Easy Ways to Keep Cold Air from Entering Your House

12 Quick Fixes for a Drafty House Fixing these trouble spots doesn’t take much effort, time or money — and the payoff of a warm home can’t be beat. Windows: Secure the sash locks along all the windows in your house to clamp them down as much as possible. You can also seal windows that […]

Understanding What’s Covered and What’s Not Covered with Life Insurance

How Life Insurance Can Be Used

Life insurance can be an estate planning tool, an investment vehicle, or simply a way to replace lost income in case of unexpected death. Some people purchase life insurance to establish an inheritance for their children or as a strategy to donate to a favorite charity.

Unlike other types of insurance coverage, there are no restrictions on how death benefits can be used. Life insurance beneficiaries are free to use the money as they see fit. Many people invest in life insurance to replace the income they provide for their families, so their financial needs are met, including:

• Funeral, burial, and end-of-life expenses
• Personal debts (loans, credit card bills)
• Mortgage payments
• College tuition
• Daily expenses, such as food, gas, clothing

If you have a permanent life insurance policy that builds cash value, you may be able to use it to cover expenses while you are still alive. For example, you could borrow against it to cover the down payment on a home or your child’s college tuition. Borrowing against the cash value could reduce the amount of the death benefit.

What Is Not Covered by Life Insurance

Although life insurance covers most causes of death, certain circumstances can prevent beneficiaries from receiving death benefits. The two most common reasons why life insurance claims are denied are:

• Lapse in payment: When you purchase life insurance, you are covered only as long as you continue to pay your premiums.
• Misrepresentation of the policyholder’s health: If a policyholder omits or misrepresents health information, the insurance company may deny the claim, particularly if death occurred within a two-year window after the policy was purchased.

Most life insurance policies include a suicide clause, which voids coverage if the policyholder dies by suicide within a specified time after purchasing the policy. Insures are likely to deny a claim for death by homicide if the beneficiary was involved in or responsible for the policyholder’s death. Some companies would deny a life insurance claim if the policyholder died while engaging in a high-risk activity such as sky diving.

Different Types of Life Insurance

The best type of life insurance for you will depend on your financial situation, your reason for buying a policy, and your investment goals. The basic types of life insurance are:

• Term: This type of policy lasts for a specified time period, typically 10, 20, or 30 years. During the term, you make fixed premium payments for a guaranteed death benefit. Coverage terminates at the end of the term. Some insurers will allow policyholders to extend their coverage or convert to permanent life insurance.
• Permanent: As long as you pay your premiums, coverage with a permanent life insurance policy continues for your entire life. In addition, permanent life insurance can accumulate cash value. It is more expensive than term life insurance.

If you are considering life insurance, contact our knowledgeable agents. We can get you the best quote for the coverage you need.

Is My Business Covered in the Event of a Cyber Attack?

Small business owners are not exempt from the risk of a cyberattack. The loss of customer data is a financial disaster, and with cyber incursions becoming more common, and hitting even the largest companies, from banks to retails to online giants with extensive security, it is well worth ensuring your business has adequate cyber insurance.

The Costs of a Cyber Breach

The financial losses a business will experience after a cyber attack are extensive, and include:

• Legal costs
• The cost of a forensic investigation to identify who was affected by the breach
• Potential fines and penalties
• Credit monitoring for affected customers

Cyber Insurance and Exclusions

Every cyber insurance policy is different – and the differences are found in the small print. Your policy has exclusions that must be fully understood. A full audit of your cyber insurance is a critical aspect of ensuring your business is fully protected. Your business cyber insurance does not cover the losses associated with stolen intellectual property or copyrights.

An insurer may deny a claim if it is found that the policy owner failed to safeguard business data. Most of these policies exclude the losses related to wars, invasions, or insurrections, which are very unlikely events, thankfully. Exclusions for “prior acts” mean that if your business had a breach before the policy was in effect, it is not covered. This poses a problem, as some cyber breaches are not discovered for months after the fact. Always keep your cyber insurance current, and do not allow any lapse, for this reason alone.

Types of Data Breaches Affecting Businesses in the USA

• Confidentiality Breaches: These attacks involve an outside individual gaining access to private business and client information by accident. When this occurs, the affected patient, customer, or client can file a legal claim against the business to seek compensation for revealing private information.
• Availability breaches: This type of breach is typically associated with ransomware, when huge blocks of data may be lost or destroyed, even if the ransom is paid.
• Stolen information: An employee may access client information on a home device or phone, which opens the door for bad actors to gain access to client data, which they then sell to others involved in criminal activity.
• Confidential data breach: An individual, either within the business or outside the business, gains access to private information and steals it from the business. These breaches may not be noticed for many months, as the individual may work within the company and did not leave a visible trail.

After a Cyber Attack, Will Fines be Assessed?

When a business has been the victim of a cyberattack, credit card companies may assess fines. Your cyber insurance policy will have limits and deductibles, which should be carefully reviewed. The losses to a business from a cyber breach can be so expensive that an uncovered business may have to close.

Get Help When Choosing Your Business Cyber Insurance

The best way to protect your business from the losses of a cyber breach is to work closely with a local agent to select the ideal policy for your business. If you feel your current policy may not provide the coverage you need, your agent can check the market to identify the policy that best suits your business, provides the best coverage, and has the lowest rates.

I Missed an Auto Insurance Payment: Here’s What to Expect

Life happens, oversights can occur, and payments sometimes get missed. If you missed a car insurance payment, don’t panic. Your policy will not be cancelled immediately. State laws require auto insurance companies to provide notice to policyholders before cancelling their coverage for nonpayment.

What Happens if I Don’t Get My Payment in on Time?

Most car insurance companies offer a grace period for late payments. If you submit your payment a few days late, it should not be a major problem. However, the grace period can vary from one provider to another. It is important to make your payment as soon as possible after you discover the oversight.

What if My Car Insurance Payment Is More Than a Few Days Late?

If the grace period has passed and your payment has still not been received, your insurance company will notify you by mail or by email before cancelling your policy. Generally, you will have between 10 and 20 days to rectify the situation by bringing your payments up to date. If you receive a notice of cancellation, contact your insurance company to find out if your auto insurance policy is still in effect.

What Should I Do if My Policy Has Been Cancelled?

If your policy has already been canceled, find out from your insurance company if you can renew it. Reinstating the same policy that was just cancelled for nonpayment will allow you to maintain continuous coverage without a lapse. To reinstate your previous policy, you will need to pay the past due balance to your insurer.

What if My Policy Cannot Be Reinstated?

You will need to purchase a new auto insurance policy as soon as possible if the insurance company will not reinstate your previous coverage. This may be more expensive, but it is nevertheless necessary. Without the minimum coverage, you cannot legally drive your vehicle.

What Are the Consequences of Not Having Auto Insurance?

Drivers are required to carry mandatory minimum auto insurance coverage in nearly every state in the U.S. If your car insurance lapses for nonpayment or any other reason, there may be financial and legal consequences, including:

• Driver’s license suspension: In many states, insurance companies are required to notify the government when drivers let their auto insurance lapse. It could mean automatic suspension of your driving privileges or your vehicle registration.
• DMV administrative fees: In some states, drivers are required to pay administrative fees to the DMV for lapses in auto insurance coverage.
• Higher auto insurance premiums: If you let your coverage lapse, even briefly, you are likely to see an increase in your auto insurance rates. Insurance companies want their policyholders to be reliable in their payments.
• Lower credit score: Failure to pay your auto insurance premiums can impact your credit score, which can affect your ability to get a loan.

If you need auto insurance, contact our agency today. We can help you find the best quote in the area for the coverage you need.

What Businesses Should Consider for Hybrid Work

In early 2020, the COVID-19 pandemic led to the widespread closure of offices and workplaces across the world. Many employees learned something during this unprecedented time – that it was possible for their work to be done remotely from home. Of course, telework is not an option for every job or every company. According to […]

The Ultimate Guide to Buying Tires

As your car’s only connection to the road ahead, tires play an important – but often overlooked – part in keeping you and your passengers safe. According to the National Highway Traffic Safety Administration (NHTSA), about nine percent of crashes are tire-related, meaning a tire failure or poorly maintained tires were a contributing factor. If […]

What to Know About Winter Car Washes

Should you wash your car in the winter? The short answer: Yes. While you may skip them because it’s nearly impossible to keep a car looking clean in winter, road salt and other ice-melting chemicals used to keep our roadways safe can cause rust and corrosion on your vehicle—with fuel lines and brakes being the […]

Welcome to Parenthood: Here’s What You Should Know About Your Policy

Becoming a new parent is an exciting, challenging, and somewhat overwhelming experience. When your child is born, you are suddenly responsible for a whole new little person. Instantly, your top priority becomes caring for and protecting your child.

Life insurance plays an important role in protecting your baby boy or girl. It is a way to ensure financial support should something unexpected happen to you. For first time buyers, finding the right life insurance coverage can be a daunting process. Our experienced agents are happy to help.

Why Do New Parents Need Life Insurance?

In becoming a parent, you become responsible not only for yourself, but also for the little person who is relying on you for survival. The cost of raising a child to adulthood, for food, shelter, and childcare alone, amounts to hundreds of thousands of dollars. This does not include the costs of higher education. Life insurance can help protect your child’s future financial needs in case you are no longer there to provide for them.

What Type of Life Insurance Is Best for Your Family?

The two main types of life insurance are term life insurance and permanent life insurance.

Term Life Insurance

This is usually the least expensive option. It provides life insurance coverage for a specific term, typically 10, 20, or 30 years. Benefits of this type of policy include the following:

• Policyholders can choose the length of coverage.
• Term is more affordable than permanent life insurance and may be a good choice for new parents on a budget.
• It may be the best option if you have a specific financial goal in mind, such as funding your child’s higher education or paying off your mortgage.

Permanent Life Insurance

Permanent life insurance costs more than term life insurance, but it also offers important benefits. Your coverage lasts a lifetime – it does not expire at the end of a designated term. Your beneficiaries will receive death benefits, regardless of when you die. It also serves as an investment vehicle. Permanent life insurance builds cash value over time, and you can borrow against it.

How Much Life Insurance Should You Buy?

Generally, life insurance can provide death benefits of from $100,000 to $1 million or more. How much life insurance you need will depend on your financial situation and your goals. As a starting point, assess the financial support your family would need if you were no longer there. Factor in:

• Expenses that would need to be paid immediately after your passing: This may include debt obligations, and funeral and burial expenses.
• Money your family would need to maintain their current lifestyle: Calculate this amount by adding up your annual income, savings, retirement savings, and investments. Include future financial expenses, such as your child’s college education.
• How much your partner earns: If you are raising your child with a spouse or a partner, subtract his or her income, minus income taxes, from the total life insurance amount.

For a rough estimate of how much life insurance to buy, multiply your annual income by 10.

Why it’s Important to Get Life Insurance While You’re Young

When you’re young, you feel invincible – like nothing could ever hurt you. You’re less likely to consider life insurance, even though this is the prime time to get it. However, you never know what’s going to happen, and in my case, I’m happy I was prepared. Life-Changing News It was a sunny Saturday in […]

Top 3 Business Insurance Myths

Insurance is essential in today’s economic environment. We have health insurance in case we become ill or injured. We carry auto insurance so we can legally drive and for protection in case of a crash. Businesses are no exception to the rule. If you own a business, you need the right kinds of business insurance coverage to protect it.

The following are common business insurance myths – debunked:

1. A Small Business Doesn’t Need Insurance

This statement is simply false. We live in a litigious society and a business of any size can be sued. Many small businesses are involved in litigation every year.

Business insurance is not about the size of your business property, the number of people you employ, or even your revenue. It should be based on the exposure to risk your business faces. Whether the risk is fire, theft, liability for injury, or a lawsuit based on a service or product your business provided, the right insurance coverage can help shield your company from disaster.

2. Homeowners Insurance Will Cover My Home-Based Business

If you are self-employed and work out of your home, it is important to know that your homeowners insurance will not provide adequate coverage for your home-based business. The typical homeowners policy only provides $2,500 in coverage for business equipment, as stated by the Insurance Information Institute (III). This may not be enough to cover all your business property. You may also need liability and lost income coverage, which a homeowners policy will not provide. To insure a home-based business, your options may include:

• Endorsements: Adding an endorsement to your existing homeowners policy can increase your coverage for business equipment. You can also add a homeowners liability endorsement in case a client or delivery person gets hurt on your property.
• In-home business policy: This type of policy can provide more comprehensive coverage for your home-based business. Policies can vary widely from one insurer to another. In addition to protection for your business property, most will reimburse you for loss of important records, and some will cover lost income from business interruption. Generally, these policies provide broader liability coverage with higher limits.
• Businessowners policy (BOP): This type of policy is designed for small to mid-sized businesses. It is a good choice if your home-based business operates in more than one location. A typical BOP will cover business property and equipment, liability, loss of income, and extra expenses, on a much broader scale than an in-home business policy.

3. Business Insurance Is Too Expensive

Business insurance is not free, but it is necessary to operate a business. It is not cost-effective to cut corners in a way that leaves your business exposed to serious risk. Small businesses are sued every day for a variety of reasons. The cost of your business insurance will depend on several factors, including your size, your location, and the types of services or products you provide.

Our agents have extensive experience with business insurance policies. We can help you get the coverage you need at the best available rates.