Blog Archives

Common Life Insurance Myths to Be Dispelled

10/24/2014

People hate discussing life insurance, but they need to talk about it. If you have three kids and a wife who are depending on you, you need to take care of them, and in insurance policy will protect them if something happens.

Myth #1: Only the Breadwinner Needs a Policy
Depending on the circumstances, you may want to put a policy on the stay-at-home spouse too. This is because if tragedy strikes, it may force the working spouse to hire someone for cooking, cleaning and childcare. Unless the family can spare the extra income, insuring both spouses is necessary. Additionally, this gives the working parent time to take off work and help the family adjust if something happens.

Myth #2: Life Insurance is Too Expensive
Life Happens and LIMRA conducted a recent study where 25 percent of Americans said they needed more coverage. However, only 10 percent planned to purchase it within the next year. An estimated 63 percent said this was due to cost, but more than 80 percent of them overestimated the expenses. Approximately 25 percent believed that a $250,000 20-year policy costed $1,000 or more per year. In truth, it only costs an average of $150 per year.

Myth #3: Better off Investing Than Buying Life Insurance
People take a huge risk when they depend on their investments, especially if others are dependent on them. If you die without coverage, there may be no provisions for them after your assets have been depleted.

When looking at a policy, seek guidance from a trusted source. Avoiding the pitfalls of a policy can be done through experienced advice. Understanding the benefits and exclusions can help consumers to determine if the policy works for them. Jean Setzfand, vice president of financial security, has warned that you want to avoid being over insured to prevent overpaying.

Call Pachuta Insurance Today @ 706-769-2262
Sources:
Forbes
Fox Business

0 Comments

Does Your Homeowners Insurance Policy Cover Halloween?

10/9/2014

0 Comments

It is getting to be that time of year where ghosts, werewolves and the Little Mermaid visits your front door. However, your homeowners insurance coverage could be scarier than any monster that visits that night. For example, if your house gets egged or Tinkerbell breaks her arm, will you be covered? Not all insurance policies cover these issues, and understanding your policy can help you to avoid an expensive tragedy.

Slips and Falls
Kids get excited during Halloween, and many of the little kids will run, trip and fall. Luckily, most homeowners insurance policies cover injury on your property with liability coverage. The standard level of coverage is $100,000 per occurrence, but the amount can be increased depending on the policy. Where is the Loophole? While your policy may cover negligence, they may not cover intentional injuries. For example, if Tinkerbell hurts Timmy the pirate, you may not be covered.

Jack-o-Lantern Fires
According to the US Fire Administration, 15,500 fires are caused each year from open-flamed jack-o-lanterns. Most policies cover holiday lighting and candles that started fires. Where is the Loophole? Some companies will not cover fires caused by negligence. If you want to have an ambitious flame display, check with your company to understand their terms of negligence.

Plan It Out!
Proper planning prevents accidents on Halloween. When looking at Halloween lights, watch for safety certifications on your decorative lighting. One safety certification comes from UL, also referred to as Underwriters Laboratories. Lighting your property reduces the chances that a kid will trip over something.

Halloween is a spectacular experience for parents and children, but it can become a financial nightmare for people with homeowners insurance. Understanding your policy ahead of time keeps the holiday enjoyable for everyone. Most insurance companies cover vandalism under standard policy, provided the repair costs exceed the deductible for vandalism. Those concerned with Halloween mischief should double-check their policy.

Call Pachuta Insurance Today @ 706-769-2262
Sources:
AOL.com
House Logic

0 Comments