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Life Insurance Policies Explained

Life Insurance

Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die.

When you buy life insurance, you want a policy which fits your needs without costing too much. Your first step is to decide how much you need, how much you can afford to pay and the kind of policy you want. Then, find out what various insurance companies charge for that kind of policy. If you compare Surrender Cost Indexes and Net Payment Cost Indexes of similar competing policies, your chances of finding a relatively good buy will be better than if you do not shop.

Six Basic Kinds of Life Insurance

Regardless of how fancy the policy title or sales presentation might appear, all life insurance policies contain benefits derived from one or more of the three basic kinds shown below. Some policies due combine more than one kind of life insurance and can be confusing.

Term Life Insurance
Endowment Life Insurance
Whole Life Insurance
Universal Life Insurance

Term Life Insurance

Term life insurance is death protection for a term of one or more years. Some companies are offering policies with terms up to thirty years. Premiums on term insurance remain level during the life of the policy. Term Life Insurance has no cash value account. Death benefits will be paid only if you die within that term of years. Term insurance generally provides the largest immediate death protection for your premium dollar.
Some term life insurance policies are renewable for one or more additional terms even if your health has changed. Each time you renew the policy for a new term, premiums will be higher. You should check the premiums at older ages and the length of time the policy can be continued.
Some term insurance policies are also convertible. This means that before the end of the conversion period, you may trade the term policy for a whole life or endowment insurance policy even if you are not in good health. Premiums for the new policy will be higher than you have been paying for the term insurance.

Life Insurance “Endowment”

An endowment insurance policy pays a sum or income to you, the policyholder, if you live to a certain age. If you were to die before then, the death benefit would be paid to your beneficiary. Premiums and cash values for endowment insurance are higher than for the same amount of whole life insurance. Thus endowment insurance gives you the least amount of death protection for your premium dollar.

Whole Life Insurance

Whole life insurance gives death protection for as long as you live. The most common type is called straight life or ordinary life insurance, for which you pay the same premiums for as long as you live. These premiums can be several times higher than you would pay initially for the same amount of term insurance. But they are smaller than the premiums you would eventually pay if you were to keep renewing a term insurance policy until your later years.

Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher than for ordinary life insurance since the premium payments are squeezed into a shorter period.

Although you pay higher premiums, to begin with, for whole life insurance than for term insurance, whole life insurance policies develop cash values which you may have if you stop paying premiums. You can generally either take the cash, or use it to buy some continuing insurance protection. Technically speaking, these values are called nonforfeiture benefits. This refers to benefits you do not lose or forfeit when you stop paying premiums. The amount of these benefits depends on the kind of policy you have, its size, and how long you have owned it.

A policy with cash values may also be used as collateral for a loan. If you borrow from the life insurance company, the rate of interest is shown in your policy. Any money which you owe on a policy loan would be deducted from the benefits if you were to die, or from the cash value if you were to stop paying premiums.

Universal Life Insurance

Universal Life insurance is a variation of Whole Life. The insurance part of the policy is separated from the investment portion of the policy. The investment portion is invested in bonds and mortgages, the investment portion of Universal Life is invested in money market funds. The cash value portion of the policy is set up as an accumulation fund. Investment income is credited to the accumulation fund.

Rates and coverage vary form state to state. Shop around on your own and talk to an independent insurance agent to make sure you get a plan that’s right for you. It’s amazing how much rates may vary from company to company for the same coverage.

Micah Bleecher No Comments

How To Change Car Insurance Companies

Changing Car Insurance Companies in Las Vegas May be Easier Than you Think!

There are many reasons why you may choose to change your car insurance coverage to another company. Perhaps you’ve found another company that offers you the same amount of coverage for considerably less money. You might have changed jobs and are eligible for a group discount through another insurer, or maybe you’re unhappy with the service that your present company provides. With the growth of the internet and quote comparison sites, investigating your options has never been easier!

Why change to a new Car insurance carrier?

You need to regularly review your auto insurance coverage to make sure that you are receiving the best insurance value for your money. You will discover that it pays to shop around. In some states, premiums for identical policies vary widely among different auto insurance companies. The reasons for this price variation can be very complicated, but they boil down to a company’s claims experience with policyholders in a coverage group (e.g. people of similar age, number of accidents, type of vehicle). For example, if a large number of people in a coverage group files claims during a given year, their rates will likely rise. When this happens, better discounts and lower overall premiums may be available at other insurance companies. When you decide to switch your auto insurance to another company, you’ll find that it’s fairly easy to do so.

How to cancel your old Car Insurance policy

Generally, all you need to do to cancel your auto insurance policy is to inform your insurance company in writing, specifying the date you want the policy canceled. In some states, the new agent must notify the previous agent of the policy change. Some auto insurance companies ask the policyholder send back the actual printed policy. The insurance company will send a cancellation request form that will need to be signed and returned. Examine the form carefully to make sure that all information regarding the policy is correct. If the form is not received within two weeks of sending the letter, call the agent or company immediately to check on the status of the cancellation. Don’t just walk away from the old policy without formally canceling it. Each state requires that auto Insurance policies be cancelled with notice, thus the insurance company might assume one wished to continue the coverage, and it might eventually terminate the policy for failure to pay premiums and report the lack of coverage to the state Department of Motor Vehicles. This can hurt your credit rating and ability to get a new policy.

Be sure to get a new Auto Insurance policy first

Always have a new policy in place before canceling the old car insurance coverage. Otherwise you might have a gap in protection for a day or more! Most states require all drivers to carry a minimum level of auto insurance and most insurance companies require policyholders to present proof of new coverage before they will cancel an active policy. The new company will be able to time the beginning of the new policy to coincide with the cancellation of the prior coverage.

When to Change Auto Insurance policies

At Renewal:

Renewal is a convenient time to change auto insurance policies, as you don’t have to wait for a refund from your current carrier. A renewal notice will be sent to you approximately 30 days before a new policy begins, depending on the regulations in your state. Should you decide to switch companies, you’ll need to have a new policy by the time the current policy renews. Though a company might say there is 10-30 days to get your payment in before a policy terminates, you do not have coverage until the carrier receives the payment. If you have an accident during this time period you most likely will have no coverage since the premium wasn’t paid!

Anytime:

All Car insurance policies contain a provision allowing you to cancel your policy with proper notice at any time. In a few states auto insurance companies “short rate” the policy that means one pays a penalty for canceling before the policy renews. Most insurance companies pro-rate their policies so there is no penalty. The advantage of switching before the renewal date can save you a lot of money. For example if you have a policy that runs from Jan 15th to Aug 15th and you have an accident or ticket that will be over 36 months on March 15th. By switching Auto insurance companies on March 16th, you get a discount for having a clean driving record. Your current carrier won’t apply this discount until the policy renews on August 15th! This can save you Hundreds of dollars immediately!

How long does it take to change Car insurance?

When you change car insurance companies, the new agent or insurer can generally change carriers while you wait! Generally they’ll just need a copy of your current declaration page, driver’s license and down payment to get the policy issued.

So why not get started today and call Micah and Maria at 702-477-7776 for excellent advice from Bleecher Insurance Advisors

Micah Bleecher No Comments

Determining how much Auto Insurance Coverage you Need

The Three Basic parts to a Car insurance Policy

1: Other Party:

Car Insurance Bodily Injury (BI) Liability and Property Damage (PD) coverage is Legally required in most states today. (BI & PD) Most people understand that they need BI & PD, but they have no idea how to determine how much coverage they need.

Try this simple question: What if your car was involved in an auto accident tonight where heaven forbid, someone else was injured or killed? Remember, everything you own is in the back seat of the car with you and is at risk in a lawsuit! So, what do you think their family would sue you for? $15,000? $25,000? $100,000 or even maybe a Million dollars! Where would you get the money to pay them?

Perhaps the Equity in your Home would help? How about your Savings and/or Investments? You could even have up to 25% of your wages attached to pay the award in most states! Are you prepared to sacrifice everything you own to pay an award due to this accident? If not, read on for how to choose the auto insurance coverage you need.

2: You and Your Family:

Now let’s turn the above accident around. For some unfortunate reason, you or a loved one is the one who is injured or killed in an auto accident. Where would you get the money if the person who hit you did not have car insurance or not enough car insurance? Medical bills can be covered if you have health insurance. But health insurance doesn’t cover loss of life, pain & suffering or permanent disability.

Maybe you have a Life insurance policy through your employer or your own individual life policy. Is the benefit amount sufficient to cover your family if your loved one is killed? But even if you have life insurance, what pays for the misery, the pain & suffering, maybe the fact you or a loved one can’t walk or use their arms again?

You might have a disability insurance policy through your work if you’re lucky or had good financial advice. But disability insurance doesn’t pay for loss of life, pain & suffering, permanent loss of your legs, arm or hand.

The only coverage that pays for these things is a part of an auto insurance policy known as Un/Under-insured motorist coverage. You can only buy as much coverage here as you have in Liability coverage. Your auto insurance agent should be able to help you determine the exact amount you need.

3: Your Car:

Comprehensive and Collision Coverage are the third part of an auto insurance policy and are sometimes referred to as “Full coverage.” Basically the difference is this: If you run into the tree you are covered by Collision coverage. If the tree runs into you (hypothetically of course), then you are covered by comprehensive coverage. Comprehensive also covers broken windshields, fire, theft and vandalism. The higher deductible (risk) you take here, the lower the premium. Use the savings here to purchase higher limits in the coverages that protect your assets and your family.

The bottom line to determining proper auto insurance coverage is, of course, the money available in your household budget. An excellent place to start in determining the proper auto insurance coverage for your family is to meet with your local car insurance agent.

Most cut-rate companies concern themselves with one thing only: Price. Tell them what coverage you have and they’ll see if they can give you the same coverage for less. You become the insurance professional. If this is the only need you have then that is ok. If not, you need to seek the advice of a professional to help you determine the proper amount of coverage you need and how best to accomplish it.

Review these tips for auto insurance coverage to make sure you have enough to protect your family.

So why not get started today and call Micah and Maria at 702-477-7776 for excellent advice from Bleecher Insurance Advisors

Micah Bleecher No Comments

Which Car Should You Own To Keep Insurance Rates Affordable?

Do you consider the cost of car insurance before you buy your dream car? You should. The Highway Loss Data Institute analyzes the cost to insurance companies from theft, collision, and injury claims as they relate to cars. They look at the color of the cars, how many doors they have, and even break them down type.

The Highway Loss Data Institute is a nonprofit public service organization. It is closely associated with and funded through the Insurance Institute for Highway Safety, which is wholly supported by auto insurers. HLDI gathers, processes, and publishes data on the ways losses vary among different kinds of vehicles.

4- Door cars have a 93% less chance of having a claim related to theft than their sibling 2-Door cars. Buy a Buick LeSabre and have relatively no chance of a theft loss. Compare that to the convertible Chevrolet Corvette that has over 5 times the average theft rate. You may have known that. However, did you know that the Toyota Celica has a 67% higher chance of theft than the Toyota Camry?

In addition, even though the 2002 Lexus IS 300 gets a “best pick” rating from the Insurance Institute for Highway Safety for its performance on crash tests, previous years’ models of the same car are some of the most costly in terms of collision claims. “One of the factors that come into play there is the cost of repairing an expensive vehicle,” says Russ Rader, with the Insurance Institute for Highway Safety.

What about safety? You may be surprised at some of the results. For example, the Porsche 911 has a 67% less chance for injury claims than the norm. Go figure. The Mitsubishi Lancer has almost double the injury claim rate over the norm.

Where does you car fit for injury theft and collision? What about your dream car? Take a look at this run down based on 2000-2002 HLDI data:

Models that are among the most expensive for theft claims include:
Cadillac Escalade four-wheel drive
Chevrolet Corvette Convertible
Lincoln Navigator four-wheel drive
Jeep Cherokee four-door
BMW 3 series Convertible

Models that are among the least expensive for theft claims include:
Buick LeSabre
Buick Park Avenue
Volvo V70 Station Wagon
Mercury Grand Marquis four-door

Models that are among the most expensive for injury claims include:
Suzuki Esteem four-door
Kia Rio four-door
Mitsubishi Mirage two-door
Kia Sepectra four-door

Models that are among the least expensive for injury claims include:
GMC Sierra 2500 two-wheel drive
Chevrolet Silverado 2500
GMC Yukon XL 1500 four-wheel drive
GMC Sierra 2500 four-wheel drive
Chevrolet Tahoe two-wheel drive

Models that are among the most expensive for collision claims include:
Subaru Impreza WRX four-wheel drive four-door
Lexus IS 300 4 door
Hyundai Tiburon two-door
Porsche 911 Coupe
Acura RSX

Models that are among the least expensive for collision claims include:
Ford Excursion two-wheel drive
GMC Safari four-wheel drive
GMC Sierra 2500
GMC Yukon XL 1500 four-wheel drive

Source: The Highway Loss Data Institute

Micah Bleecher No Comments

Auto Insurance Information

  • What Is Liability Insurance?
  • What Are Collision and Comprehensive Insurance?
  • What Are Medical Payments Coverage and Personal Injury Protection Insurance?
  • What Is Uninsured / Underinsured Motorist Protection?

Driving is a privilege, but it comes with a price tag. There’s the cost of the vehicle itself, maintenance, repairs, fuel and auto insurance. Many states require you to carry a basic, minimum level of auto insurance. It’s a way of sharing the risks of driving.  You pay premiums to an insurance company for coverage. In return, your coverage will protect you against most financial losses that might otherwise be your responsibility to pay.

Auto insurance is more than a matter of insuring your vehicle for loss or repairs after an accident. It is a financial safety net that can help you offset the cost of:

  • Bodily injuries to yourself or others
  • Lost wages due to injury
  • Benefits to survivors when an accident results in death
  • Lawsuits brought against you as the result of an accident
  • Repairs made to your car due to damage caused in an accident.

Below you will find information on the basics of auto insurance:

What Is Liability Insurance?

Liability insurance helps protect you and your assets if you cause an injury to others or damage the property of others with your vehicle and you are determined to be liable. Bodily injury liability protects you in the event you are determined to be responsible for an accident in which someone is hurt or killed. Property damage liability covers the damage your vehicle causes to someone else’s property, such as their car, mailbox or a fence on their land.

If you are judged to be legally liable for an accident, you may be held responsible for property damage, hospital and medical payments, rehabilitative care, lost income and even the pain and suffering of the injured person. You can be sued for the full cost of the damages. If the cost of this loss exceeds the amount of your liability insurance coverage, you may have to pay the rest. So, be sure you have sufficient liability coverage to protect your assets.

Your auto insurance policy usually describes the amount of liability coverage you have as split limits. Suppose your limits of liability coverage reads 50,000/100,000/50,000. In this example, $50,000 is the maximum the insurance company will pay for bodily injuries to each person in the accident. The maximum amount paid for all bodily injuries, no matter how many people are hurt in the accident, is $100,000. The maximum amount paid for damage to someone else’s property in the accident is $50,000. Your Bodily Injury and Property Damage Liability may also be shown as a single limit, e.g., $100,000 Combined Single Limit (CSL).  Many states require drivers to carry a minimum amount of liability insurance of approximately 25,000/50,000/10,000. That means there would be $25,000 to cover injuries to any one person, $50,000 total for all injuries, and $10,000 for property damage.

What Are Collision and Comprehensive Insurance?

Collision coverage pays for damage to your own auto that results from colliding with another vehicle or object, or from a vehicle rollover. Your car is covered no matter who caused the accident.

Comprehensive coverage pays for damage to your auto caused by something other than a collision. This includes theft and vandalism, and disasters such as fire, flood and hail.

Collision and comprehensive coverage’s usually do not pay for the total loss. You generally have a deductible, an amount you must pay out of your own pocket before your auto insurance payment takes effect. Suppose, for example, that you have a $250 deductible. On a loss of $1,000, you would pay the first $250 and your insurance company would pay the remaining $750.  Depreciation will also affect the amount you recover for the damages done to your car. As your car ages and its value declines, the amount you would collect for a total loss declines as well. Your insurance company reimburses you for the actual cash value of your car or its parts, at the time of the loss. For example, if your car was purchased for $20,000, you will get less than your original purchase price to replace it due to the car’s “natural” depreciation in value. You can find out the current value of your car by consulting the N.A.D.A. Official Used Car Guide, which is in most public libraries and banks.

Sometimes it may not make financial sense to buy collision and comprehensive insurance on an older car.  Why? Generally, speaking, cars depreciate as they age. The maximum amount that will be paid under Collision coverage is the actual cash value of your car minus the deductible. When making this decision, you need to know, the “book” value of your car, your deductible for each loss, the cost of coverage, and the amount you would receive if your car was “totaled” (after subtracting your deductible from the book value). Only you can decide after considering everything whether the cost of insurance is more economical than the cost of repairing or replacing the car at your own expense.

What Are Medical Payments Coverage and Personal Injury Protection Insurance?

Medical payments insurance covers the cost of doctors, hospitals and funeral expenses of you and/or your passengers, that result from an accident, regardless of who is at fault. This coverage will protect you when you drive another person’s car (with permission) or if you or your family are struck by another vehicle as pedestrians. The coverage is relatively inexpensive and generally available with limits between $1,000 and $100,000. It also provides for funeral expenses, when necessary. The availability varies state by state.  Personal injury protection (PIP) is a form of no-fault insurance required in states with no-fault laws. This coverage is a broader form of medical payments insurance. It pays for medical care, lost wages and replacement services for the injured party (for example, paying for a baby-sitter for children while a mother is hospitalized). It pays regardless of who is at fault in an accident. States with no-fault laws usually limit the right to sue for non monetary damages such as pain and suffering, but you still may be able to sue in cases of incapacitating disability or death. This coverage varies by state and is sometimes an optional offering in states without no-fault laws. In your evaluation of coverage, remember that Medical Payments and PIP also protects your passengers. If you exceed your medical medical coverage on your auto policy, then Bodily Injury coverage may be needed.  Before choosing medical payments or no-fault protection, check with your state’s insurance department for details of no-fault coverage in your state. Then review your other insurance policies. If you already have good medical and disability insurance, you may not need to purchase protection in addition to the minimum limits of your state (if Medical Payments/PIP is a required coverage).

What Is Uninsured/Underinsured Motorist Protection?

If you are involved in an accident with an uninsured driver, you have very little chance of collecting payment for your damages from that driver. Uninsured motorist (UM) coverage* pays the cost of damages and injuries resulting from being hit by an uninsured driver or by a hit-and-run driver. Both you and your passengers are covered for medical expenses, lost wages and other injury-related losses. You may also be able to collect for pain and suffering.

Similarly, Underinsured motorist (UIM) coverage* will pay for damages that exceed the amount of coverage carried by an underinsured driver. You choose the amount of coverage when you buy this protection.

*Keep in mind that uninsured motorist coverage and underinsured motorist coverage vary by state law.

So why not get started today and call Micah and Maria at 702-477-7776 for excellent advice from Bleecher Insurance Advisors

Micah Bleecher No Comments

How to File a Car Insurance Claim

Having even a teeny-tiny car accident can be one of life’s least enjoyable moments. However, accidents happen, and sooner or later, we all have the experience of meeting one of our fellow road travelers up close and personal and having to file a car insurance claim. Using the following seven steps to filing your claim will help you get over this speed bump as smoothly as possible.

Step 1: Understand your policy

Before a loss, sit down and carefully read your auto insurance policy. Call your agent or company if you have any questions about what is or is not covered.

Step 2: Exchange information

If you are involved in an accident, get the other driver’s name, address, phone number, insurance carrier, and insurer’s phone number. Be prepared to give the same information about yourself to the other driver. You can find insurers’ telephone numbers on the proof-of-insurance cards that should be carried on your person when operating a motor vehicle.

Step 3: Identify witnesses

Ask witnesses to the accident for their names and phone numbers in case their account of the accident is needed.

Step 4: File an accident report

Contact local law enforcement officers to have an accident report prepared. If law enforcement is not reachable, accident reports and detailed instructions are available at all police departments, sheriff’s offices, your local Department of Motor Vehicles office, and on your local Department of Motor Vehicles’ web site.

Step 5: Notify your insurer

Contact your insurance company about the accident as soon as possible. An auto insurance adjuster will review the accident report to determine who caused the accident. If the accident was not your fault, you can have either your insurance company or the at-fault driver’s insurance company handle the repair or replacement of your vehicle. If you use the other driver’s company, you will not have a claim on your automobile policy and you will not have to pay a deductible.

Step 6: Do not release insurers too early

Do not relieve your insurance company of its responsibility until the damages are settled to your satisfaction. For example, have your insurance company handle the claim if the other party’s insurance company questions its policyholder’s negligence or offers an unacceptable settlement.

Step 7: Consider these settlement factors

  • Bodily injuries: You may be entitled to a monetary settlement for injuries caused by another at fault (liable) party. It can take several days for some injuries to become apparent.
  • Damages: The insurance company is responsible to pay for the reasonable cost of repairs to your vehicle. An insurance adjuster will assess the damage. Usually, insurance companies and auto body shops negotiate disagreements about what should be repaired. If you disagree with their conclusions, you have the right to obtain another appraisal at any auto body shop.
  • Appraisal clause: Most auto insurance policies include an appraisal clause, which can be used to help settle disputes about physical damage claims between you and your insurance company. (The appraisal clause does not apply for claims you file with the other party’s insurance company.) If you cannot reach an agreement with your company, you or your insurer can initiate the appraisal clause. Your appraiser and your insurer’s appraiser then select an independent umpire to try to resolve the dispute. Check your policy or ask your agent or insurance company for more information about the appraisal clause.

And that is it. While filing a claim is certainly no fun, following these seven steps will make the process almost as easy as getting free quotes and purchasing your car insurance.

So why not get started today and call Micah and Maria at 702-477-7776 for excellent advice from Bleecher Insurance Advisors