FAQ

 

 

Auto Insurance

 

Do I need auto insurance?

 In most states, auto insurance is required by the law. Without this you will not be allowed to buy a car, or operate it if your auto insurance should expire.

 

 Will my auto insurance policy be cancelled if I miss a payment?

 

 This all depends on your auto insurance company, as well as the state that you live in. Even though you will probably receive a late payment notice in the mail, some companies have the right to cancel you.

 

 Will one claim lead to my auto insurance policy being cancelled?

 

 In most cases, one claim will not lead to your policy being cancelled by your provider. But with that in mind, with each claim that you file the chance of your premium rising is very good.

 

 What are points, and how can they affect me?

 

 When you get a moving violation or other type of infraction points may be added to your record. Each type of violation has a point value assigned to it. As you get more points, your insurance premium will most definitely rise as you are seen as a risk.

 

 If I have a broken windshield will my auto insurance company cover it?

 

 If you have comprehensive insurance included in your policy a broken windshield will be covered. If not, you may be responsible for the cost.

 

Homeowner’s insurance

 

If my home is destroyed due to a natural disaster, will my home insurance cover me to live elsewhere until I can rebuild?

 

 This depends on the type of policy that you have. In most cases your home insurance will cover you to live elsewhere, but there will be a coverage limit that will only last a predetermined amount of time.

 

 An accident in my condo damaged another one in my unit. Do I have to file a claim?

 

 This will be contingent on the rules of your condo, as well as how the other owner plans on handling things. If you are found to be liable for the damage you may need to file a claim with your home insurance company.

 

 I am thinking of building a new home. While it is being built do I need to have home insurance?

 

 This is something that you should definitely consider. If you do not you will be putting yourself at great risk if something were to happen. Most standard home insurance policies will cover you for damages during the construction phase.

 

 Does flood insurance come with home insurance?

 Many people think that with home insurance they are covered against floods. This is not the truth. If you want to have flood insurance you need to add this coverage to your home insurance policy. It is not included.

 

Life Insurance FAQ

 

Why buy life insurance?

 Some reasons to buy life insurance are income replacement, funeral expenses, pay off debts, pay off final medical bills, and mortgage payments. The need for the life insurance varies from person to person so everyone’s motivation for buying life insurance is different.

 

What does it mean to be the owner of a life insurance policy? Who is the owner of my policy?

 

 Usually, the insured is also the owner unless the policy has been specifically set-up to have a different owner. The owner is the person who has the authority to change the beneficiary and make other policy changes.

 

Is there a certain amount of life insurance I’m required to buy?

 

 Although there are “rules of thumb” such as your life insurance should be 10 times or 20 times or some other multiple of your annual income, the best approach is to consider your own personal needs so that your survivors have adequate life insurance proceeds to meet their financial needs in the event of your death.

 

Will I have to be examined by a doctor to buy life insurance?

 

 Rules vary from company to company and for different types and amounts of insurance. For very small amounts of insurance or association or group plans, no exam usually would be needed. However, those that have health issues or request larger coverage amounts may be required to have a basic medical examination.

 

Can I buy life insurance over the internet or by telephone or mail order?

 

 You can get plenty of information, including quotes, on the Internet and by phone. Please call us at [Phone] or click here to request a quote online.

 

Who can take out a policy on my life?

 

 If someone else wants to take out a life insurance on your life, your agreement and an explanation of the reason for the insurance (such as a business relationship) would be required. Also, parents would be allowed to take out policies on young children.

 

What is cash value life insurance?

 

 In addition to providing a death benefit, cash value life insurance also accumulates a fund that can be used to pay future premiums or serve as a form of savings.

 

How do I protect my family from losing our house if I die while still having a mortgage to pay?

 

 The preferred way to cover this need is to purchase what may be described as a “decreasing term insurance policy”. Most insurance companies offer a variety of such policies including ones that are specifically tailored to match the declining principal balance of your particular mortgage. Mortgage companies also frequently have agreements with insurers to provide mortgage insurance.

 

How might my smoking affect my ability to buy life insurance?

 

 If you are a smoker, you should expect to pay a little more for your life insurance than a non-smoker of a similar age and health.

 

Of course, if you also have a smoking-related medical condition, then the life insurance company would take that into consideration when deciding whether to sell you life insurance and what rate you should be charged.

 

What if I become disabled or unemploy8ed and cannot pay the premium?

 

 Some policies include provisions that will waive the premium payments during a period of unemployment or disability.

 

If a policyholder has selected the automatic premium loan provision, a loan would automatically be taken against the cash value of the policy to pay the premium in the event the policy was about to lapse for nonpayment of premium. This would prevent loss of the insurance protection as long as the policy has enough cash value to pay the premium.