Converting from Term to Permanent Life Insurance

 

People buy life insurance for lots of good reasons and, if you're like most, your reason for carrying life insurance falls into one or more of about half a dozen categories, including:

1. The number one reason for your buying life insurance is to provide financial protection for your loved ones in the event you die prematurely.  
2. You want to meet your financial responsibilities even after your passing.
3. Life insurance benefits provide cash that can make up for your family's loss of your income.
4. Benefits can be used to pay off debts left behind such as a home mortgage.
5. Your children may have the tuition needed to attend college from your life insurance proceeds.
6. Insurance benefits may be used to pay for your burial/funeral expenses.

Kinds of Life Insurance

There are several types of life insurance that fall into two broad categories:

Term Insurance, which is the simplest, most basic form of life insurance.  It pays benefits to your beneficiary if you die during the term of the policy, which is normally from anywhere between one and thirty years.  Most term policies provide no other benefits besides the death benefit.

Permanent Life Insurance, also called Whole Life Insurance, provides a death benefit for your whole life.  In addition, these policies accumulate a cash value that you can access after a certain period of time.  Traditional whole life insurance policies usually have a level death benefit amount and level premium cost throughout the life of the policy.

Converting Your Term Life Coverage to a Greensboro Permanent Life Insurance Policy

Term life insurance is typically sold as being the most affordable way of providing financial safety to your loved ones in the event of your unexpected death.  Because term insurance is "pure protection," unlike whole life with its cash value provision, you can get a higher death benefit for a significantly lower premium.  This is most important when families are young, with limited resources but a large need for a family financial safety net.

When your resources have increased and the need for the safety net becomes less, you may be considering converting your term policy to a Greensboro permanent life insurance policy.  Term policies typically have a provision allowing for this conversion, as long as it's done within their accepted time frame.  Simply contact your insurance agent and request a conversion.  A medical exam and going through underwriting should not be needed.

Can You Ever Have Too Much Insurance?

 

If you've ever caught yourself thinking "I'm insurance poor," it's likely because you've been adding up all those policies you've managed to collect and all those premiums you continue to pay.  If you're like most people, you have life insurance, car insurance, health insurance, homeowners or renters insurance and maybe more.  The question is, can you ever have too much insurance?

Vehicle Insurance

In the state of North Carolina, anyone driving a vehicle on public roads is required by law to have at least a minimum amount of liability insurance.  This is third-party liability coverage to help pay for financial losses suffered by others in an accident you cause.  Losses may be the result of property damage, bodily injury or death.  In NC, the minimum liability coverage required is:

• $30,000 per person per accident bodily injury
• $60,000 per accident bodily injury coverage for all persons
• $25,000 per accident property damage

How Much is Enough

Many experts recommend you increase your liability limits three to five times the minimums (or more).  The amount you carry should depend upon the number of assets you stand to lose if sued for liability.  Even more protection is available through the purchase of a high-value umbrella policy.  This is a relatively inexpensive way to significantly increase your asset protection.

Other car insurance options should depend on the value/condition of the insured vehicle.  If you're driving an older, beater car that you could easily replace, carrying collision and comprehensive coverage on it probably doesn't make sense.  The money you're spending on these coverages might be better applied to medical payments or uninsured driver's coverage.

Life Insurance

You buy life insurance to keep your dependents financially secure in case you die unexpectedly.  The death benefit should cover: 

• Your income
• Major debts
• Funeral expenses
• Future obligations such as your children's education

As you age, however, you likely don't need the coverage you once needed.  Your home mortgage may be paid off, the kids are grown and off on their own and your debts are what they once were.  In this case, you can lower your coverage to a more appropriate amount. 

Homeowners Insurance 

Your homeowners coverage should be enough to rebuild your home and replace your property should the home be totally destroyed.  This doesn't mean covering the market value of the home or the value of the land.  Umbrella coverage can extend your homeowners liability limit.

11 Golf Cart Safety Tips

 

Whether you're using a golf cart out on the links or for driving up and down the streets of your community, there are some tips we'd like to share to help you travel safely as you go.  For many, nothing beats the relaxation provided by a nice, sunny day out on the golf course, but nothing can ruin that good time quite as much as a golf cart accident.

Golf cart accidents can cause anything from minor injuries and/or damage to catastrophic injuries and even death.  According to the Consumer Products Safety Commission (CPSC), there are approximately 15,000 golf cart related injuries annually that are serious enough to warrant a visit to the emergency room.  While some of these accidents are a result of poor manufacturing design, most can be attributed to negligence on the part of those involved.  These are preventable accidents that may have been avoided by knowing and following these tips.

Golf Cart Safety Tips

1. Learn how to safely operate your golf cart by reading the owner's manual, if available, and follow all safety guidelines.
2. Make sure the tires on the cart are inflated to the recommended tire pressure.
3. Golf carts are lightweight and top-heavy, making them fairly easy to flip over if not driven properly.  Avoid sudden or sharp turns and keep your speed within reason.  The number one cause of golf cart injuries is passengers jumping or falling off the cart.
4. Don't overcrowd your golf cart with passengers.  Everyone riding on your cart should have their own seat.  Don't allow anyone to hang out the side or back of the cart.  Overcrowding makes it easier for passengers to fall off and puts additional strain on the golf cart, making it more difficult to handle safely.  
5. Just like with a roller-coaster, keep all body parts inside the golf cart.
6. Just as with any vehicle, don't drink and drive or consume intoxicating substances before or while driving.
7. Avoid distractions when driving a golf cart (or any vehicle).  This particularly pertains to cell phone use, which the CPSC lists as the number one cause of distracted driving.
8. Use seatbelts in your golf cart.  While most golf carts don't come equipped with seatbelts, retrofitting them into your cart is fairly easy and well worth the modest cost when considering the added safety you'll enjoy.
9. Avoid bad weather when possible.
10. Perform regular maintenance.
11. Have fun but stay safe!

Life Insurance: What Happens If There Are Co-Beneficiaries?

 

The purchase of life insurance is a common financial planning tactic for North Carolina families, providing financial protection for survivors when the family breadwinner has passed.  Your Greensboro life insurance coverage is something that can mean a world of difference to as husband or wife left behind as well as to children who may require financial support until they're able to support themselves.

A primary purpose of life insurance, whether it's whole life, term life or universal life, is to allow the beneficiary or beneficiaries to have continued financial support after they have lost the person who was previously providing that financial stability.  

The benefit received from a life insurance payout may be used wherever it's needed, whether that means paying off outstanding loans such as a home mortgage or taking care of funeral expenses.  As a father of small children, you may be taking out a Greensboro life insurance policy to ensure that, should you pass away unexpectedly, your family may continue living in a fashion to which they've become accustomed and have the funds needed to send the kids to college.

Beneficiaries

Part of taking out a life insurance policy is choosing and naming a beneficiary or beneficiaries.  This could be: 

• A person or persons
• Your estate 
• A charity
• A trust
• A business (as in key person life insurance)

The beneficiary is the person, persons or entity that will receive the proceeds of your life insurance policy when you pass.

There are two types of beneficiary designations:

Primary beneficiary - the person, persons or entity that will receive the proceeds of your life insurance policy at the death of the policyholder

Contingent (or secondary) beneficiary - only entitled to receive proceeds from the policy if the primary beneficiary dies before the policyholder

Multiple Beneficiaries

You may name more than one primary beneficiary if desired, in which case they will receive either equal portions or a stated specific percentage of the death benefit when you pass.  There are two ways to select multiple beneficiaries:

Per Stirpes - beneficiaries are designated by lineage, with policy proceeds being equally divided among beneficiaries and/or their surviving children

Per Capita - policy proceeds are equally divided among all beneficiary survivors.  Click here for a more detailed explanation of Per Stirpes and Per Capita designations.

If a beneficiary dies before the policyholder, he or she must be renamed as soon as possible.

What Is Landlord Insurance?

 

Landlord insurance is homeowner's insurance designed to protect homes not occupied by the owner. If you own a house, apartment or condo that's used as a tenant rental, landlord insurance is what you need to protect yourself from the dwelling being the cause of your suffering financial loss from a number of risks. These risks, known a “perils” in the insurance industry, are similar to those contained in a standard homeowner's insurance policy, although the landlord policy is typically smaller in the depth and breadth of its protection.

Differences Between Homeowner's Insurance and Landlord Insurance

While it's possible to buy landlord insurance for your owner-occupied home, it wouldn't be wise since the coverage is lesser in scope and yet likely more expensive in cost. On the other hand, typical homeowner's coverage being carried on a rental property is a definite no-no, since any loss occurring on the property won't be covered and any claim will be denied.

There are three types of landlord insurance policies: DP-1, DP-2 and DP-3. Each contains dwelling protection and liability protection. They may also contain loss of use protection. Additional optional coverage is also available. Here's a brief rundown:

• DP-1 – This is the most basic and lowest-cost landlord insurance. It's a “named perils” policy, meaning that only perils specifically listed (or named) in the policy are covered. Most DP-1 policies are actual cash value (ACV) policies, which means any claims payments for covered property losses may include a calculated amount subtracted for depreciation.
• DP-2 – Also known as Dwelling Fire Form 2, DP-2 is average protection for a rental home and considered adequate for most rental properties. It is also a “named perils” policy, typically covering 18 listed perils similar to those found in the popular homeowner's HO3 policy. Unlike the DP-1 policy, the DP-2 is a Replacement Cost Policy as opposed to Actual Cash Value coverage. This means that depreciation is not factored in when a claims payment is made, thereby providing much more comprehensive coverage. Most DP-2 policies include Loss of Rents coverage, which pays you rent if your tenants are forced to move out while repairs are made to a property damaged by one of the policy's covered perils.
• DP-3 – The best rental property insurance, DP-3 is “All Risk,” meaning all perils except those specifically excluded are covered. This is Replacement Cost insurance and also includes Loss of Rents coverage.

4 Types of Insurance You Probably Don't Need

Some types of insurance you should have, such as life insurance, if you have a family depending on your income for their day to day living expenses. Some types of insurance you must have, by law, such as car liability coverage if you drive a vehicle on public roads in almost all of our United States. But some types of insurance are unnecessary and, although they may appear appealing when being described by an insurance salesman, you not only don't need them but they are likely to just be a waste of your money. Here's a list of a few insurance policies you're probably just better off without.

1. Child Life Insurance – child life insurance may look appealing at first because of its low cost and promised accumulating cash value, but that same money put into your child's education fund, savings account or even into your own additional life insurance coverage may be considerably more valuable. Life insurance is designed to provide financial protection to those depending on your income, and children typically have no income upon which dependents rely.
2. Flight Insurance – if you already have a life insurance policy in place, taking out extra coverage before flying in an airplane is redundant. Deaths in airplane crashes are relatively rare, but if you are unfortunate enough to suffer such an event, your standard life insurance policy already has you covered.
3. Rental Car Insurance - `buying extra insurance from a rental car company when renting a car may also be redundant, since your personal car insurance policy likely already covers you in a rental car. Double check your car coverage to make sure, and if you're not covered by your personal policy then the small fee charged by the rental car company may be worth the cost.
4. Auto Collision Coverage – if you're driving an old model car that's not worth a whole lot of money, you're likely better off forgoing the inclusion of collision coverage on your policy. This may also be said of the comprehensive portion of your policy. Instead, put the money you save on premiums in a car repair/car replacement fund to be used in the event your vehicle gets damaged or is stolen. For newer, more expensive cars, however, full coverage is probably your best bet.

These are just a few of the many types of insurance you can do without. Check here for more.

Is It Too Late to Change My Homeowners Insurance Policy?

There are numerous reasons for considering changing your Greensboro homeowners insurance policy and you may be curious as to the best time to make this proposed change. After having had your homeowner's coverage for a certain period of time you may be wondering if it's too late to change or cancel your coverage. The answer to that question is, “No.” You may change your homeowner's insurance coverage at any time, assuming you follow certain steps to ensure that you're never without coverage, not even for one day.

Some Reasons For A Change

It's a good idea to revisit your homeowner's insurance coverage and the company underwriting that policy on an annual basis, even if making a change isn't something that's on your mind. Remember that the limits on your coverage may no longer be appropriate, especially if you've made significant improvements to your home or the cost of building a home in your area has gone up significantly since your homeowner's policy was first written.

You may wonder if there's a different insurer out there that can provide you with equal or better coverage than you currently have but at a better price. If you've been shopping around and find such a company it may be worth considering a change. If you decide to make a change, you can do it at any time and, if you've already paid up for your current coverage in advance, you'll be due a partial refund.

Perhaps you've had to make a claim under your current policy and are unhappy with the way the process went. This is one reason people decide to switch insurance companies, and there are plenty of other Greensboro homeowners insurance providers from which to choose. Using a trusted insurance broker is a good way to find some options to your current policy. Let them do the work and present you with options and then you can make an informed choice.

Switching Can Really Pay Off

When comparing different homeowner's policies to find a better deal, don't forget to factor in discounts and incentives. The company you're currently with may offer a loyalty discount that you didn't know about because often you must ask in order to find out about different discounts. Some insurance companies will discount your policy if you carry coverage for more than one area, such as auto insurance, homeowner's insurance, life insurance, etc. Consider all these factors.