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.  

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:
• Let's 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.

You can find more information regarding life insurance on our website.  To speak with an Absolute Insurance Agent, please call our agency at (515) 279-2722 or service@insaia.com.

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!

What is the benefit of insuring an item as Scheduled Personal Property?

We often include reminders in our newsletter about adding jewelry and other items as Scheduled Personal Property, or SPP, to your Homeowners, Renters, Dwelling, or Condo Insurance Policy.  Have you ever wondered how SPP is different than the regular contents coverage included on your policy?

While your typical homeowners policy includes limited personal property coverage for the contents of the home, sometimes there are limits placed on certain categories of valuable covered items.  For example, a homeowner insurance policy might have a $1500 sub-limit on jewelry.  If you had a loss for a necklace valued at $400, you would probably be fine getting it covered under your homeowners insurance policy (assuming it was lost under a covered peril), but if you had a necklace worth $5700, you would most likely only be covered up to that $1500 policy sub-limit.  Many homeowners choose to seek additional coverage through a scheduled personal property endorsement to their policy.

Scheduled Personal Property also provides broader coverage for the scheduled items.  For example, if your wedding ring drops down the drain while you are washing dishes it may not be covered unless it is included as a Scheduled Personal Property item on your policy.  Also, if a loss were to happen to a SPP item, the policy deductible doesn't apply. 

What types of items can be added as SPP?
• Jewelry
• Musical Instruments
• Art
• Stamp or Coin Collections
• Cameras
• Furs
• Computers
• Silverware
• Golf Equipment
• Firearms
If I have an item I want to add as Scheduled Personal Property to my policy, what do I have to do?
Each item that is added as Scheduled Personal Property to a policy is listed individually and needs to be appraised before they are added.  If it is a recent purchase, the receipt might work in place of an appraisal.  Please contact your Absolute Insurance agent at 515-279-2722. 

June 28th is National Insurance Awareness Day

Have you ever noticed how many "National ..... Days" exist?   While it is fun to celebrate National Ballpoint Pen Day, National Pop Goes the Weasel Day, National Catfish Day, and National Donut Day (all in June by the way), there is one that we focus on here at our agency - June 28 is National Insurance Awareness Day.  (Okay, we did celebrate National Donut Day here at the office too).

National Insurance Awareness Day is just a reminder to review your insurance coverage and see if any changes need to be made.

Some things to keep in mind:

• Is there a special item that you received for Christmas, birthday, or anniversary that might need specific coverage?  A piece of special jewelry?  An expensive guitar?  That road bike you have been eyeing?  
• Do you have a student going off to college in the fall?  This might affect your auto rates depending on where they go to school, and if they are taking a vehicle to school or not.  
• Did the value of your home change?  Does the coverage on your policy need to be adjusted as well?  
• Have you done any updates to the home?  New roof?  New Heater?  New Plumbing?

Our agents at Absolute Insurance work with customers throughout the year to review existing coverages, but if you haven't revisited your policies in a couple years or you have had a big change in your life, this might be a good time.  Give your Absolute Insurance agent a call at 515-279-2722 today to set-up a time to review your insurance policies.

Tips for Traveling with Kids

Do you have a trip planned this summer?  Here are 10 tips to make your trip a little less stressful:

• Set reasonable expectations - know the limits of your children.  For example, will your kids be able stay engaged for a 3 hour architecture tour, or would a shorter version be a better fit?
• Bring plenty of food - bring a variety of treats, space them out throughout your trip, hide a couple “extra special” treats for when it gets a little crazy.
• If you are flying with a baby, make sure to bring an extra outfit for you and baby in your carry-on in case of a diaper issue or throw up.
• Most airlines allow for family boarding, but if you have an assigned seat I will sometimes wait to board so my kids can run some energy out.
• If you are flying solo with kids, you can ask at the ticket counter if you can get a “gate pass” for someone to assist you through security and to the gate.
• If you are driving, plan a picnic or take food to a park/playground instead of sitting down at a restaurant.  This way your kids can run around and wear themselves out.
• Pack some new activities for when the kids get bored - a new book, raid the Target dollar area, a new app on the tablet, etc.
• Have your kids pick out an activity they want to do or a place they want to visit along the way or at the destination.  Kids love getting to pick things out
• Have a photo contest - post a picture taken by each person on social media and have people vote on their favorite. Winner gets to choose an activity or restaurant
• At the end of a long travel day, have a glass of wine, read this description of another mom’s disastrous flight with her child, and maybe your long day won't seem so bad :) 

When do you have to stop for a school bus?

As kids head back to school, drivers need pay extra attention to the rules of the roads and be on the look-out for school buses, pedestrians, and students riding their bikes to and from school.

1.  Make sure to slow down in school zones - know the times of day that the reduced speed limits are in effect.  If you will be driving through a school zone on your commute, give yourself a few extra minutes because there will likely be extra traffic in addition to the reduced speed limit.  Speeding tickets are double what you would normally pay in some school zones.
2.  Pedestrians have the right-of-way at all crosswalks and intersections - be on the look-out for kids crossing at unmarked crosswalks as well.  Not every school has a crossing guard to help students and parents cross the street.
3.  Make sure to slow down or stop for school buses.  If you encounter a school bus with its yellow lights flashing, you must slow down and go no faster than 20 mph.  If the red lights are flashing or the stop arm is out, you must stop at least 15 feet from the school bus.  You must remain stopped while the lights are flashing and the stop arm is out.  After a school bus has stopped to let students off, watch for children on the side of the road.  

When do you have to stop for a school bus?  

SCENARIO 1: YOU ARE TRAVELING ON A TWO- OR THREE-LANE ROAD
If you are approaching the bus from the rear: When you see flashing red or yellow warning lights, you are not permitted to pass the school bus and you should be prepared to stop.  You should stop behind the school bus when the school bus stops and the stop arm is extended. Stop no closer than 15 feet from the rear of the bus, and remain stopped until the stop arm is retracted and school bus starts moving again. Proceed with caution.
If you are meeting the bus from the front: When you see yellow warning lights flashing you must slow your vehicle to no more than 20 mph and be prepared to stop. You should stop in front of the school bus when the school bus stops and its stop arm is extended. Your vehicle needs to remain stopped until the stop arm is retracted. You should proceed with caution.




SCENARIO 2: YOU ARE TRAVELING ON A ROAD WITH TWO OR MORE LANES IN EACH DIRECTION
If you are approaching the bus from the rear: When approaching from the rear, the rules are the same as for a two- or three- lane road. When you see flashing red or yellow warning lights, you are not permitted to pass the school bus and you should be prepared to stop. You should stop behind the school bus when the school bus stops and its stop arm is extended. You need to stop no closer than 15 feet from the rear of the bus, and remain stopped until the stop arm is retracted and school bus starts moving again. Proceed with caution.
If you are meeting the bus from the front: When you are meeting the bus in one of the opposite two lanes (or more), you do not need to stop, even if the bus has stopped with lights flashing and stop arm out. The bus is not permitted to load or unload children who must cross this type of roadway, unless there are official traffic control devices or law enforcement present. This is the only time you may pass a school bus that is stopped and has its stop arm extended.