Tag Archives for " insurance coverages "

The Facts About Life Insurance

You may have thought about buying a life insurance policy to secure your loved ones if something happens and you are no longer here. Even with that basic knowledge, you may still be unsure of how life insurance works and what it entails. It can be hard to contemplate your fate, but you are hardly alone. Too many people put off purchasing life insurance and leave their families to bear the burden of debts, funeral costs, and other expenses. Let’s take a closer look at why you need life insurance and how it works.

What is Life Insurance?

Life insurance is a contract between the insurance company and you, the policyholder. The agreement guarantees that if anything happens to you, your loved ones, the beneficiaries, will receive a benefit at the time of your death. The life insurance policy will give you the peace of mind of knowing that your loved ones can continue to live the same lifestyle they had in the same place. Life insurance can even let you leave money to a charity that is important to you.

What are the Different Types of Life Insurance?

All life insurance policies have the same goal: to ensure beneficiaries receive payment when you pass away. There are, however, various types of life insurance available.

Short-term protection – Term life insurance falls under this heading. A policy can be purchased for a definite time, usually ten to thirty years. If your demise happens in that period, your beneficiary will receive payment of a death benefit. If you outlive the covered period, then the policy ends.

Long-term protection – This is also known as permanent life insurance, including whole and universal life insurance. Long-term protection covers you for the rest of your life. Like term coverage, long-term protection yields a death benefit to your beneficiary at the time. It also offers benefits before your death, such as having a cash value that can be accessed in times of need, such as a child’s wedding or college tuition. Some retirees have used long-term protection policies to supplement their income.

One type of policy may be enough to cover your needs, or you may want a combination of different coverages. What you choose depends on your particular situation. Discussing your needs with an agent can help you to decide what coverage or coverages are best for you and your loved ones. As time passes, your needs may change. Periodic reviews of your policies to gauge if adjustments are needed to your policy will ensure your loved one’s needs are met.

What Amount of Life Insurance is Needed?

Everyone’s needs are different, and there is no one size fits all policy. Sometimes the group coverage you receive through your employer is just not enough.  Most life insurance policies obtained through group coverage are not portable, so when you leave the company, you most likely leave the life insurance. You need to examine what will play a role in determining how much life insurance you need. Factors like the size of your family, the value of your home, how much debt you’ve incurred, and your business (if you own one). If you have children, you will want to ensure coverage of essential expenses, such as food and clothing, to future costs like college tuition.

The key factor is what you want for your family.  How much help do you want to leave for your family when you can no longer be with them? Do you want to keep them headed toward their life goals? Do you want to make sure your spouse can stay in the home you made together? These are just a few things you may want to take into consideration.

Is Life Insurance Expensive?

Your age and health will determine how much life insurance costs. Younger and healthier people typically pay lower premiums. However, the cost of not having life insurance cannot be put into a dollar value. If you do not invest in life insurance, the burden left on your loved ones will be costly.

Getting life insurance is an easy way to have peace of mind knowing that if something happens to you, your family will be able to carry on.

If you have any questions about Life Insurance, contact us via email or at (863) 646-LOCK.

Ordinance of Law Coverage

Why do most customers have a general idea of what their Home insurance covers? Most don’t understand covered perils and how the claim is handled. I don’t understand many things under the hood of my car that the mechanic does. Ordinance and law coverage is one of them.

One of our clients in Winter Haven, Florida, had a kitchen fire recently. They deemed the house was over 40% damaged because it was not built to code. The county requires it to be removed and rebuilt from the ground up. The undamaged portion of the structure has to be torn down and rebuilt due to a change in municipal codes. This is where the ordinance of law coverage comes into play.

Typically your policy comes with a percentage. A lot of times, it is 10% of the structure value, in some cases, you can increase the percentage for a fee.

Ordinance of law coverage is designed to pay for:

• Cost of demolishing and removing the debris of undamaged portions of the structure that must be torn down or modified.
• The increased cost of reconstruction that is, the added cost to repair or rebuild under the current code. This may include upgraded electrical system sprinkler systems redesigned to meet hurricane-resistant standards.
• Loss of Value of the undamaged portion of a building when it must be torn down to meet code requirements.

I would suggest becoming familiar with local and state zoning laws. You can contact the zoning board and ask the questions such as:

• Since the building has been constructed, could any code changes affect my property?
• Does the existing code prohibit rebuilding, location, or size, and what percentage has to be damaged to rebuild?

At Lock Insurance, we always recommend this coverage and stress on older homes. Contact us today so we can review your current policy to make sure you have the correct information so you can make a wise decision once the claim happens. It’s too late to review your policy and implement the changes.