Thursday, November 1, 2018

Common Questions about Life Insurance

At Absolute Insurance, we often hear some of the same questions regarding life insurance.  Here are a few of the most common questions that we get:

1.  I already get life insurance through my employer - I don't need additional life insurance, do I?
Oftentimes the coverage you receive through your job isn't enough to care for your family in the event that you die.  You will also lose the coverage once you stop working there.  Most of our clients who have life insurance with us keep the coverage their employer offers, but it serves as a supplement to their regular life insurance policy that they have with our agency.

2.  I know most life insurance policies require a medical exam - what does that involve?
The medical exam is similar to a basic physical that you would have at your doctor's office.  The insurer will send a technician to your house or office for the exam.  The exam usually consists of your vitals (height, weight, heart rate, etc) and sometimes a blood sample.  They may swab the inside of your mouth to test for tobacco use.  

3.  What is the death benefit on a life insurance policy?
The death benefit is the face value, or the amount your policy is worth.  This is the amount that your life insurance policy will pay out to your beneficiary should you die.  

4.  Can I list more than one person as a beneficiary?
Absolutely!  You can have one person as beneficiary or multiple people.  For example, if you have 3 children and wanted to split the policy between your three children you can list them all as beneficiaries.  You can also list a trust as a beneficiary too.  

Thursday, October 25, 2018

Life Insurance 101

Thinking of buying life insurance, but are overwhelmed with the different options?  You aren't alone!  Oftentimes we have clients tell us that they have avoided purchasing life insurance in the past because they didn't know which type of policy is the best for them:  Whole Life, Term Life, Transitional Life - what does it mean?  

What is life insurance?
Life insurance is a contract between you and an insurance company to provide you with coverage based upon your timely payment of premiums. Life insurance provides a death benefit to your named beneficiary (usually a spouse) upon your death.

Types of Life Insurance:
There are several types of life insurance, but the main types we sell are term, whole life, and transitional life.  
  • Term Life Insurance:  A Term Life Insurance policy is a life policy for a fixed period of time, or "term", such as 20 years.  Some policies allow the insured to convert the policy at the end of the term into a permanent policy.
  • Whole Life Insurance:  A Whole Life Insurance policy covers someone for the rest of their life.  It also includes a cash value component that increases over time.  You can borrow money against the account or surrender the policy for the cash. But if you don’t repay policy loans with interest, you’ll reduce your death benefit, and if you surrender the policy, you’ll no longer have coverage.
  • Transitional Life Insurance:  One of our life insurance carriers, Pekin Insurance, has come up with a product that is somewhat of a hybrid between term life and permanent whole life insurance.  Transitional Term Life Insurance provides a high, level term death benefit for the selected period, ending with a lower paid-up permanent whole life death benefit of an amount chosen by the insured at the time of policy issuance.  All the policy values are fully guaranteed.  Here is an example of how a transitional life insurance policy would work:
    • Lets say you want a $1,000,000 term life policy for a period of 20 years. After 20 years, your plan is that your home will be paid off, you will be debt-free, your children are raised and on their own, and you no longer need the $1,000,000 you once did. You still want some life insurance that would pay final expenses and maybe leave something left for your kids and grandkids.  With Transitional term, you could set the term limit for $1 million for 20 years and at the end of the 20 years set the policy up so that you would have $50,000 in paid up whole life insurance that will not go away for the rest of your life and you will not need to contribute to or pay another premium toward that $50,000 for the remainder of your life.  The $50,000 is fully paid up and guaranteed.  I am using $50,000 as an example but the amount could be anywhere between $10,000 and $950,000 in this example.

Monday, May 7, 2018

Classic Car Insurance

Do you have a classic car, truck, motorcycle, or boat?  Before you bring your beauty out from winter storage, make sure that your classic vehicle is insured correctly.  At Absolute Insurance, we know that insuring a classic or collector vehicle is different than insuring the car you drive everyday.  By insuring through a classic car insurance company, you are able to get insurance tailored to your unique vehicle. 

At Absolute Insurance, we work with several different companies that understand classic and collector cars.  Why is this important?  Classic Car insurers understand that there isn't a set "blue book" value for your vehicle.  You, as the customer, tell the insurance company what the value of your classic car is.  The company affirms the value of your car, and then guarantees that amount will be paid to you in the event of a covered total loss.  They also have claims specialists that help in finding stock replacement parts for your vehicle in case your car is involved in an accident or other claim. 

Contact your Absolute Insurance agent today at (515) 279-2722 to get a quote or additional information about insuring your classic car today!