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Why You Need Life Insurance To Protect You And Your Family From Financial Strains

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Why you need life insurance

Life insurance is something that everyone needs, but only a few people actually have. It’s easy to ignore buying a policy when you’re relatively healthy and young. However, the longer you wait, the higher the chances are that something might happen to you before getting yourself covered. If purchasing life insurance has been on your to-do list for quite some time now, but haven’t had the chance to be checked of yet, then maybe it’s time to revisit your plans.

Why It’s So Important

As people grow older, marry the love of their lives, build families, and start new businesses, they begin to realize more and more how essential life insurance is, and that’s the time they reach out to insurance brokers. Life insurance is fundamental to sound financial planning. Life insurance can also be relatively cheap, depending on the policy type you choose. That, of course, only tells one thing – you’ve got no excuse why you shouldn’t get coverage now. If you think that this is the perfect time to purchase a policy for you and your family, then don’t hesitate to visit websites like SimpleLifeInsure.com to talk to reliable insurance brokers.

However, if you’re one of those who are still on the fence of whether buying a policy is a good idea or not, read on to learn more about why you need life insurance to protect you and your family from financial strains.

Pays Final Expenses

Believe it or not, funeral and burial costs can quickly run up to thousands of dollars. So, if you don’t want your parents, wife, or children to suffer from financial strain at your death, you need life insurance. The problem is that the suffering that your family will experience will not only be financially but also emotionally, and that’s going to be very difficult without a policy in place.

Replaces Your Lost Income

A life insurance policy will work to provide the much-needed financial security to your family when you pass away. If you were to die all of a sudden, what do you think will happen to your loved ones? Can they survive the struggle from financial and emotional strains? That’s doubtful, primarily if your family relies on your income solely. What you can do is to get yourself and your family members adequate coverage. That way, you won’t leave them, or they won’t leave you helpless when monthly bills start to come around.

Covers Educational Expenses Of Children

Like most parents out there, you’d want to be sure that your kids get well-taken care of in the future. You also want to afford them a high-quality college education. So, while your kids are still at home, think about additional coverage so you won’t have to sacrifice their welfare when financial strains come your way or when you pass away.

Pays Off Debts

When you die, your debts won’t disappear. What if you and your spouse co-signed a loan like a mortgage? When you’re gone, it will be your spouse who will need to shoulder the repayment responsibility entirely. Another thing that may result from the lack of insurance policy is that creditors will try to collect from your estate. What happens is that your heirs receive a depleted remainder of your money and property because of your debts. A life insurance policy allows your loved ones to take care of all lingering financial responsibilities that you’ve left behind.

Replaces Your Spouse’s Income

A life insurance policy doesn’t only work for you; it also applies when it’s your spouse who passes away first. For a long time, your whole family has depended on you and your spouse’s combined income. So, you would need to replace his/her salary for you to maintain the lifestyle that your children have grown up with. And if your kids are still very young, you would need to spend money again to hire someone to help you with domestic tasks like cooking, laundry, and cleaning the house – chores that you and your spouse have shared before. All of those things should be enough to convince you that life insurance is essential for your family.

Builds Cash Value

Two common types of life insurance are the term and whole policies. Term life insurance stays in place for a period of time that you’re going to set when buying a policy. While whole life insurance covers you permanently until you decide to cancel the policy, so when you buy a whole life insurance policy, you’ll have the chance to build up cash value over time. The cash value is an attractive prospect to many people simply because you can tap it at any time. The cash value serves as an extra cushion for any financial emergencies down the road.

Final Thoughts

Getting a life insurance policy means that you and your family can prepare for any eventuality. It will help you sleep a little easier every night knowing that there’s a protection in place for you and your loved ones when financial strains come in and should something undesirable happen to you.

For more great savingadvice articles, read these:

How Much Does Insurance Increase After An Accident?

What Does Your Home Insurance No Cover?

What Is Your Insurance Score and Why Does It Matter?

 

How Much Does Insurance Increase After An Accident?

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How Much Does Insurance Increase After An Accident

Car accidents can be incredibly expensive. Not only is your vehicle damaged. You may also be injured. Plus, even a single accident can send your insurance premium skyrocketing if you are deemed to be at-fault. If you are wondering how much your auto insurance increases after an accident. Here’s what you need to know.

Factors That Impact the Increase

First, it’s important to understand that there are a number of factors that influence premium increases after an accident. This can include the circumstances surrounding the accident as well as the resulting expenses.

Here are a few factors that may cause your insurance cost increase to be higher or lower:

  • Whether there was a fatality
  • Hospital costs for the injured
  • Whether any involved vehicles were totaled
  • The full cost of car repairs
  • Total cost for any resulting property damage
  • Whether you’re deemed at-fault
  • Why you were considered to be at-fault
  • Traffic violations involved in the crash
  • Whether the incident resulted in criminal convictions (vehicular homicide, DWI, DUI, etc.)

Any violation or crime that could end up on your driving record has the ability to affect your car insurance premium. This includes if they are tied to an accident while you are a policyholder.

Your driving record before the crash is also considered. Those who have a perfect driving record aside from this incident may see different price increases than someone who has had issues in the past and gets in a new accident.

Additionally, every vehicle insurance company maintains full control over their premiums. One company may use larger increases than others based on the proprietary formula it uses to determine a price for coverage.

Ultimately, there are a lot of factors in play. So premium increases can vary. However, information about averages is available.

How Much Insurance Costs Increase After an Accident

On average, auto insurance premiums appear to increase by 31 percent to 44.1 percent (depending on the data source) after an accident. That means, if your annual premium was $1,502, which is the national average. Before the accident, after a single at-fault crash, your yearly premium would hit $1,968 to $2,164.

That’s close to the average premium data for a variety of insurers for customers with at-fault accidents. Here’s a list of some of the average at-fault accident car insurance rates for major insurers:

  • Allstate – $3,017
  • GEICO – $1,997
  • Farmers – $2,226
  • State Farm – $1,617
  • Progressive – $2,772
  • Liberty Mutual – $2,358
  • Nationwide – $2,174

What About Policies with Accident Forgiveness?

It is important to note. Not all insurers penalize customers for their first at-fault accident. An approach known as “accident forgiveness.” With Allstate and Liberty Mutual, qualifying drivers won’t see a premium increase just because they are deemed at-fault in one accident within a specific period. With Progressive, small accidents might be forgiven.

Nationwide offers accident forgiveness. But only in certain states. It only applies to a single accident on a policy. This is regardless of the number of drivers listed.

USAA has optional accident forgiveness coverage available. However, it also isn’t available in all states and does come with a charge. The charge is usually around $1 per month.

GEICO may make it available to specific drivers who reach a particular anniversary milestone with the company. A good driving record is also necessary. However, some with perfect histories may be able to purchase the coverage. Even if they haven’t hit the anniversary milestone.

Premium Increases After No-Fault or Not-At-Fault Accidents

Many people are surprised to learn that your car insurance premium can go up after any accident. Even if you aren’t responsible. Increases after no-fault or not-at-fault accidents do occur. Moreover, they tend to be smaller changes than if you’re deemed liable.

Insurance premiums are based on costs and risk. If you file a claim. The company is incurring a cost if it has to provide funds to help repair damages or handle associated expenses. Based on that alone.  You can see a premium increase.

Additionally, statistics suggest that individuals who’ve made claims previously are more likely to do so in the future. This means you represent a higher amount of risk. Which is something else that can cause your premium to rise.

What to Do If Your Premium Goes Up After an Accident

If you aren’t happy with your premium after an accident, you do have options. First, you can always shop around for new coverage. Second, different insurers use different formulas to decide what to charge. So you might find better rates elsewhere.

Adjusting your coverage levels might be a good idea, too. Going from comprehensive to liability, raising your deductible, and similar options might shrink your premiums. Just keep in mind that reducing your coverage means taking on more risk personally. Plus, if you’re still paying down a car loan. Certain changes might not be options for you.

Look For A Different Car

You can also look for a different car, in some cases. Insurance rates are impacted by the vehicle itself. This includes the age and mileage of the car, the security and safety features it has. It also includes average repair costs for that make and model, and similar unique aspects of the vehicle. By choosing an option that doesn’t cost as much to insure. You can bring your premium down. However, this isn’t always a practical approach that every household can use.

Otherwise, if you don’t want to make a switch. You may need to ride it out. It takes time. But an at-fault accident won’t impact your insurance forever. As long as you drive safely for the next handful of years. Your premiums should go down.

 

Did you see your insurance go up after an accident? How much was the increase? Share your thoughts in the comments below.

 

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5 types of insurance policies that should be included in your financial plan

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Insurance policies are extremely underrated. Nobody actually realizes how important they are, until they need them. Nowadays, you can find insurance policies to cover every single aspect of your life, but this does not mean you actually need all of those. [Read more…] about 5 types of insurance policies that should be included in your financial plan

What Does Your Home Insurance Not Cover?

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4 rows of coins and small house

About 85 percent of homeowners have home insurance policies. On average, homeowners insurance costs around $1,083 per year in premiums, making it a substantial expense for many. Considering the price tag, it isn’t uncommon for property owners to assume that nearly every kind of event would be covered. However, that isn’t the case. Here’s a look at what most home insurance policies won’t cover.

Flood Damage

While the majority of homeowners insurance policies cover some forms of water damage, standard coverage won’t help you for floods. If you want flood coverage, you’ll need separate flood insurance.

Usually, homeowners go through the National Flood Insurance Program (NFIP) for flood policies. Those are overseen by the Federal Emergency Management Agency (FEMA) and can cover damage to the structure as well as personal belongings inside.

However, there are coverage amount limits of $250,000 for the structure and $100,000 for the contents of a home for basic flood insurance. If you need more than that, you’ll have to get “excess” coverage either from the NFIP or a private company.

Damage from Negligence

If your home is damaged, but that damage could have been prevented by properly maintaining the property. Your damages might not be covered. For example, if a pipe burst that should have been replaced years ago. Your claim might be denied. Similarly, if a storm tore a hole in your roof, but the roof was already in disrepair. Your claim might be denied or what is covered could be incredibly limited.

Often, damage caused by pests is also considered an issue of negligence. For example, if termites harm your home’s structure. Your policy probably won’t help.

Moving Earth

In many cases, damage caused by earth movement – like earthquakes, landslides, and sinkholes – isn’t covered by many policies. Like flooding, you’ll need a separate policy that covers that specific kind of damage if you want protection.

You’ll need to check your policy to see if earth movement is covered. If not, then you can get an earthquake policy through a private company to cover those kinds of events.

Backed Up Sewer Lines

If a sewer backup damages your home, most homeowners aren’t covered by their basic policies no matter the cause. For sewer backup coverage, you’ll either need a separate policy from a private company or a rider or endorsement on your existing policy.

Some Dog Attacks

Homeowners insurance often covers costs associated with someone being bitten by your dog. However, if you own certain breeds that are considered to be “aggressive” by your insurer. Your canine companion’s actions might not be covered.

For example, German Shepherds and Pit Bulls are frequently excluded from policies. Akitas, Chows, Staffordshire Terriers, Doberman Pinschers, Alaskan Malamutes, Siberian Huskies, Rottweilers, Great Danes, and Presa Canarios are often banned as well. Plus, nearly all wolf hybrids are eligible for coverage.

High-Value Jewelry, Antiques, Art, or Computers

While homeowners policies cover jewelry, furniture, art, and electronics in general. If yours have values beyond a certain cutoff point. Your coverage won’t handle the full value of the item. Instead, you’ll need to purchase a rider or endorsement to expand the amount.

The limit may vary from one insurer to the next. However, it is typically around the $1,000 to $2,000 mark for each item. For example, if you have a gaming computer worth $3,000, then you’ll probably need a rider. But, if you have three computers worth $1,000 each.  You might not, depending on your insurer.

If you are concerned about coverage limits in those categories. You should contact your insurer. They can let you know what restrictions apply and whether you need a rider. Additionally, for antiques, art, and jewelry, your home insurance company can let you know if a formal appraisal is necessary if you want to expand your coverage.

Terrorism and War

Both acts of terrorism and war are uninsurable. If any kind of attack in those categories causes damage to your home, your insurer isn’t going to cover it.

Trampolines

While home insurance does cover a wide range of potential injuries. They won’t cover anything related to trampolines. These fun pieces of play equipment are incredibly dangerous and lead to a large number of injuries annually.  This is why most insurers exclude them in their policies.

 

Have you ever tried to make a claim only to discover that your home insurance won’t cover it? Tell us about your experience in the comments below.

 

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Home Insurance Adjuster Estimate Too Low? Here’s What to Do

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home insurance adjuster estimate

Approximately 85 percent of homeowners have property insurance. Of those with coverage, about 6 percent of homeowners make an insurance claim each year. And more than 98 percent of those claims involve some sort of property damage or theft. When you file a homeowner’s insurance claim for damage, the hope is that the insurer will provide enough to cover the cost of repairs. However, that doesn’t always happen. Sometimes, the home insurance adjuster estimate is too low.

The Role of the Home Insurance Adjuster

A home insurance adjuster’s job is to exam your property and estimate what the insurance company needs to pay out. This involves the creation of an estimate – a formal overview of the damage. Also, you get an outline of what needs to be repaired and what the adjuster believes each of those fixes will cost.

The adjuster may be an employer of the insurer. However, it is also possible that they are an employee of a third party. Not all insurers have adjusters available in every region. They essentially contract that task out to a specialty business.

While most homeowners would assume that the estimate will be an accurate reflection of the repair costs, that isn’t always the case. Sometimes, the amount listed by the adjuster is far below what they actual expense for the fixes would be. This leaves homeowners in a difficult position.

If you receive a home insurance adjuster estimate that is too low, here’s what you need to do.

Understand Your Coverage

Before you approach your insurance company about the amount on the estimate, you need to understand how your homeowner’s insurance coverage is set up. Your policy may work one of two ways.

First, it could cover you for the full cost of the replacement regardless of whether the damaged areas have aged. Often, this means your insurance company will handle your claim based on the amount it takes to do the work, buy the needed supplies in today’s market, and address any associated sales tax.

However, there can be exceptions even if you have this level of coverage. For instance, if you have a wooden fence that was in incredibly poor shape and clearly needed repairs before the incident-related damage occurred, you might not be eligible for full replacement cost in that instance.

Second, your insurer could factor in depreciation, paying only for the value of the damaged items before the incident occurred. For example, if your windows are broken due to heat from a fire, your insurance company would examine the age of the windows to see how much their value has changed since they were originally installed. If your windows are older, you may receive less money from your claim than it would typically cost to install new windows based on the depreciated value of the existing windows.

Knowing how your coverage works before you address the adjuster’s estimate is wise. That way, you understand whether you are covered for full replacement or if depreciation is a factor. If you are in the latter group, you may be stuck with a lower estimate because that is how your policy works, but it can still be worth it to seek an adjustment. However, if you are in the former, pursuing an adjustment should definitely be on your to-do list.

Speak with Your Insurance Company

If you believe the home insurance adjuster’s estimate was too low, you need to contact your insurance company, not the adjuster specifically. Have them walk you through the estimate, explaining why the adjuster listed various costs. Then, ask about the procedure for getting the amount adjusted.

The goal is to learn about your insurer’s process, as each company may handle it slightly differently. However, there are typically similar requirements, as will be discussed below.

Gather Quotes from Contractors

In nearly all cases, you’ll need to prove that the home insurance adjuster’s estimate was too low. Often, the easiest way to do that is to gather quotes from several reputable companies regarding the work that needs to be done.

Research companies in your area that could handle the type of repairs involved with your claim. Use sites like Yelp, Angie’s List, and Home Advisor to read reviews before reaching out. That way, you can make sure the company is likely to provide a fair quote, offers good customer services, and has former customers who are happy.

After you find some suitable companies, contact at least three, and request a free estimate. By having multiple quotes, you are able to build a case that demonstrates that the adjuster’s estimate was too low. Additionally, you are being diligent about confirming your assumption that the adjuster’s estimate was, in fact, inappropriate.

Consider an Independent Adjuster

Just as your insurance company may hire a third-party adjuster to examine the damage, you can too. Hiring an independent adjuster can accomplish the same goal as getting quotes from contractors. However, you won’t be able to secure this service for free.

Often, an independent adjuster will charge between $200 and $500 to provide an estimate. If the discrepancy between the original amount and the cost of repairs is less than what you would need to pay for an independent assessment, this likely isn’t worth pursuing. But, if the difference is substantial, it is a path you can choose to take.

Provide the Evidence to your Insurer

Once you have quotes from contractors and/or an independent adjuster estimate, contact your insurer again. Submit the documents for the insurer to review and see if they will make an adjustment.

As long as the contractor quotes only relate to damage from the incident and the companies are reputable, there is a solid chance your insurer will settle your claim for a higher amount. However, if they don’t, you still have one more course of action.

File a Formal Complaint

If you genuinely feel that you are being mistreated by your insurer, you do have the option of filing a complaint with your state insurance department. That department would conduct an investigation and provide you with guidance regarding how they think you should proceed.

In some cases, the state insurance department will reach out to your insurer on your behalf if they feel your complaint is justified. When this occurs, they try to encourage the insurance company to reach a fair resolution.

Hire An Attorney

At times, the department may recommend you hire an attorney. However, they will not assist with that cost, so you would be responsible for paying any associated fees. Usually, this is only worth pursuing if the difference between the adjuster’s estimate and the contactor quotes or independent adjuster’s estimate is substantial. If the disparity is too small, you may end up losing money on the claim overall when you pay your attorney.

Ultimately, disputing a home insurance adjuster’s estimate can be a bit of a cumbersome task, but it is worth doing to the estimate is significantly too low to repair the damage. Just make sure you understand your coverage and insurer’s process before you begin. Otherwise, you may spend a significant amount of time fighting for an amount that you would never receive.

 

Have you ever had to get an insurance estimate adjusted after learning the actual cost? Share your experience in the comments below.

 

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Everything You Ever Wanted to Know about Lemonade.com

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Lemonde.com reviews

Nearly everyone needs some kind of property insurance. If you rent your home or apartment, renter’s insurance can help you cover the cost for replacing items that are damaged or destroyed by a covered event, like an electrical fire. People who own their home need homeowner’s insurance. This goes a step further, covering both damaged items and structural repair costs. Finding good and affordable coverage can be a daunting task. However, Lemonade.com, a property insurer, aims to simplify the process while keeping your costs low.

What is Lemonade.com?

Lemonade.com is a property and casualty insurance company. It embraces technology to help keep the company’s overhead costs low, and it passes those savings onto the customers. Additionally, Lemonade believes in transparency.

All of their customers pay a simple flat fee for the service, which means Lemonade has no incentive for denying or delaying any claims. With traditional insurers, unpaid claims lead to bigger profits. Since Lemonade only takes in a flat fee to cover its costs, denying claims doesn’t create a financial benefit.

If there is any leftover money after covering all of the valid claims, Lemonade doesn’t keep it. Instead, through its Giveback program, the extra cash is donated to various charitable causes. Customers even get a say in where this money goes based on the virtual group they join.

Lemonade.com Coverage Options

In order to get a policy with Lemonade, you have to either use the company’s Android or iOS app, or head to its website. By issuing claims digitally, Lemonade can keep operational costs low, allowing policyholders to get more affordable coverage.

With Lemonade, you get two primary coverage choices. The company offers both renter’s and homeowner’s insurance, so you need to select the option that aligns with your living situation.

Renter’s insurance can cost as little as $5 a month while homeowner’s starts at $25 a month. Your exact premium will depend on a range of factors, including anything from the amount of stuff you own if you have any high-value items (jewelry, computers, etc.), your credit history, the size of your deductible, and your number of recent claims. For homeowner’s insurance, the property’s details also come into play.

Lemonade considers other risks as well. For example, if your area is susceptible to severe weather, that may lead to a higher premium. Additionally, if you have home security devices, your premium might be lower.

Once you create your policy, you can pay your premium with a credit or debit card. If at any point you no longer need the coverage, you can easily cancel the policy.

With any policy, you also get additional coverage when your items are outside of your home. For example, if your laptop is stolen while you are at a coffee shop, you are covered for that loss. Further, if your dog bites someone, you have might coverage for that too.

Filing Claims with Lemonade.com

While no one ever hopes to file a claim, it is nice to know that Lemonade’s process is incredibly easy. Use the smartphone app and tap the Claim button. Then, follow the simple process to submit your claim. It usually only takes a few minutes as long as you can provide sufficient information about the loss or damage.

During the process, you do need to submit a short video. In that clip, you describe what happened in your own words, making it easier for Lemonade to get a realistic picture of the situation.

If you have receipts to show the value of their items, you can submit those too. But, that isn’t a requirement; it can just help speed up your claim.

Once you submit those details, you give Lemonade bank account information for a wire transfer. Once approved, Lemonade sends the payment (minus your deductible) straight to your bank account.

In most cases, the approval process is almost instant. However, there may be situations where Lemonade needs to take a closer look, so it can take longer if a manual assessment is necessary.

Where Lemonade.com is Available

Lemonade.com doesn’t offer coverage in every state yet, though they are continuously expanding the company’s service area. As of June 2019, renter’s, condo, and homeowner’s insurance are available in:

  • Arizona
  • California
  • Colorado
  • Connecticut
  • Georgia
  • Illinois
  • Indiana
  • Iowa
  • Maryland
  • Michigan
  • Nevada
  • New Jersey
  • New York
  • Ohio
  • Oregon
  • Pennsylvania
  • Tennessee
  • Texas
  • Virginia
  • Washington DC
  • Wisconsin

Rhode Island residents have access to renter’s and condo insurance, while Arkansas and New Mexico residents can sign up for renter’s insurance. However, Lemonade continues to expand, so other states and options could be forthcoming.

Is Lemonade Always Cheaper?

While Lemonade aims to offer the best price possible, that doesn’t mean they will be the cheapest in every scenario. The company’s policies do tend to cost less, but each insurer uses different pricing models, so not everyone will find a deal with Lemonade.

However, since getting a no-obligation quote is free, you can also go through the process and see if Lemonade is right for you. If so, then you can sign up and have coverage in just minutes. If not, you can keep looking elsewhere until you find the right insurer for your needs.

Do you use Lemonade.com? Are you interested in trying Lemonade the next time you need insurance? Tell us about your experience or share your thoughts in the comments below.

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