Understanding Waivers Of Premium

If you are purchasing a life insurance policy, one of the decisions you will need to make is whether to add a waiver of premium rider. A waiver of premium may be a valuable addition to your policy, depending on your needs. Our experienced agent will be happy to advise you on the various optional riders available, including waivers of premium.

What Is A Waiver Of Premium Rider?

Also known as a waiver of premium for disability, a waiver of premium rider is an optional addition to life insurance that can keep your policy from lapsing should you become disabled and are incapable of continuing to pay your premiums. This coverage goes into effect in cases of severe injury, permanent severe illness, or any catastrophic change that leaves you disabled. The cost of a waiver of premium rider will vary, depending on your health and likelihood of disability while the policy is in effect.

Who Qualifies For A Waiver Of Premium Rider?

This optional life insurance rider is typically available to individuals ages 18 to 60 who have no pre-existing disabilities. You can only opt for a waiver of premium rider when you purchase your policy – it cannot be added at a later date. The cost depends on a risk assessment based on your age and health. This rider is designed to cover unforeseen risks – not those that appear likely at the time you purchase your policy.

How Does A Waiver Of Premium Work?

The terms of waiver of premium riders will vary, depending on the insurer. However, there is usually a six-month waiting period before your premiums are waived. The benefits of this rider will typically end when you are no longer disabled. In cases of long-term disability, your life insurance premiums will be waived up to a certain age, for example, age 65 or 70. If your claim is approved after the waiting period has elapsed, the insurance company will reimburse you for the premium payments you made during that period.

If you make more than one claim for a recurring disability, it may be treated as a continuation, and you may not be required to meet another six-month waiting period before coverage begins again. However, if you make a second claim on a new, unrelated disability, a new waiting period will go into effect.

How Do You File A Waiver Of Premium Claim?

Each life insurance company has its own claims procedure for waivers of premium. You will need a doctor’s statement attesting to your disability to substantiate your claim. You will also need a notice of your disability from the Social Security Administration.

How Much Will A Waiver Of Premium Rider Add To My Costs?

This rider is relatively affordable on a month-to-month basis for most people who buy life insurance. On a term life policy, a waiver of premium rider may account for roughly 15 to 25 percent of your monthly premium. However, age, occupation, lifestyle, and health history are all factored in by insurance companies in determining the cost of life insurance and riders.

Is My Business Big Enough For Cyber Liability Insurance?

If you have a small business, you may wonder if your operations are large enough to warrant purchasing cyber liability insurance. In fact, a large percentage of small businesses are victims of cyber attacks or data breaches every year. Cyber liability insurance is becoming increasingly essential protection in the world of business today.

Why You Need Cyber Liability Insurance

As stated in a Small Business Trends article regarding cybersecurity:

43% of cyber attacks target small businesses.
The security of customer data is a significant concern for many small businesses.
60% of small companies go out of business within six months after a cyber attack.
Companies spend an average of nearly $880,000 in the aftermath of a cyber attack or data breach due to damage or theft of IT assets.
Disruption of normal business operations due to a data breach or cyber-attack costs an average of more than $955,000.

If your business falls victim to a data breach or cyber attack, cyber liability insurance can help it survive. Your general liability insurance is not likely to protect you from this type of loss. Many general liability policies specify that they will cover damage to a third party’s tangible property. Electronic data is excluded from this category.

What Makes Data Breaches So Costly?

The National Cyber Security Alliance reports that the global average cost of a data breach is $3.62 million. In many cases, the cost is sufficient to take a business down entirely. One data breach can mean hundreds of thousands of dollars for:

Legal fees
Investigating the incident
Notifying clients of the breach
Client identity recovery
Downtime for your business

What Does Cyber Insurance Cover?

Cyber insurance policies, as they were originally developed in 2000, covered business interruption and potential liability in the case of one business transferring a virus to another. Now, the coverage is much broader. Most cyber insurance coverage today includes multiple elements.

First-Party Coverage

First-party coverages help protect your company from direct losses resulting from cybercrime, including:

Loss of or damage to electronic data
Loss of income and extra expenses
Cyber extortion losses
Notification costs
Damage to your company’s reputation

Third-Party Cyber Liability Insurance Coverage

Cyber liability insurance provides coverage for damages or settlements resulting from covered claims made by third parties against your company and the cost of defending against such claims. This coverage may include:

Network security liability: Protects your company against lawsuits resulting from a data breach.
Network privacy liability: Provides protection from lawsuits based on allegations that you failed to properly protect sensitive data.
Electronic media liability: Covers lawsuits against your company for libel, slander, defamation, invasion of privacy, copyright infringement, or domain name infringement resulting from your publication of electronic data on the internet.
Errors and omissions liability: Included in some cyber liability insurance policies, this coverage provides protection for errors and omissions arising out of professional services offered by the insured.

To ensure your company has the protection it needs against cybercrime and data breaches, your best course of action is to speak with a knowledgeable agent as soon as possible. Our agent can work with you to determine your company’s level of risk and find the best quote on the cyber liability insurance you need.

Do I Need More Homeowners Coverage After Renovating?

Renovations can add substantial value to your home. Adding on a front porch, putting in a swimming pool, remodeling your kitchen, and other improvements can not only make your home more pleasant and comfortable to live in, but also increase its market value. After a remodeling project, it is vital to reevaluate your homeowners policy and ensure you have the right coverage at the best available rates for your newly remodeled home. Our friendly agent will be happy to assist you with the process.

While some types of renovations add value to your home and consequently increase your rates, others may qualify you for discounts and savings on the cost of homeowners insurance.

Remodeling Projects That Increase Your Need For Homeowners Insurance Coverage

The following types of renovations will increase the amount of homeowners insurance coverage you need to protect your investment in your home:

Remodeling existing living spaces: Many kinds of improvements can increase the value of your home, such as installing example hardwood floors or updating the kitchen. If your remodeling adds to your home’s market value, you will need to adjust your homeowners coverage accordingly.
Expanding living space: An addition will add value and square footage to your home. It is wise to speak to your agent about increasing your homeowners coverage before the project begins, in case of a fire or other losses before construction is complete. If the addition is for a home office, you may need to adjust both your homeowners insurance and business insurance.
Converting unlivable spaces to livable spaces: It is not uncommon to convert a garage, attic, or shed to living space. If you do this type of renovation, check your policy to find out if the area you are converting is already covered under your homeowners insurance. If not, you will need to increase your coverage. In the case of a converted garage, you may also need to adjust your auto insurance, as keeping your vehicle garaged may lower your car insurance rates.
Installing a pool: When you add a swimming pool to your home, you are adding to your liability as a homeowner. An “attractive nuisance,” such as a pool or trampoline, will increase your risk and raise your homeowners insurance rates.

Renovations That May Lower Your Homeowners Insurance Rates

Investing in certain types of improvements can lower the cost of homeowners insurance.

Installing safety features—such as a security system, smoke alarms, gas detectors, or shatter-proof windows—can help lower your homeowners insurance rates.
So can replacing an outdated HVAC system, as it may eliminate electrical hazards.
Updating your electrical system or plumbing can reduce the risk of fire or water damage and lower your costs.
Replacing your roof with durable materials can lower your risk of hail, snow, wind, and water damage, which in turn can help reduce your rates.
Installing a fence around your backyard or pool may also qualify you for a safety discount.

Our knowledgeable agent can help you find every available discount while ensuring you have sufficient homeowners insurance coverage to fully protect your home.

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Will Quitting Smoking Lower My Life Insurance Premiums?

There are many reasons to quit smoking, and reducing the cost of life insurance is one of them. When you kick the habit, you save money not only on the cost of cigarettes and healthcare, but on life insurance premiums as well. If you are ready to quit, talk to our friendly agent about how and when it will get you better life insurance rates.

How Does Smoking Affect Your Life Insurance Premiums?

Insurance companies classify individuals according to risk, and the higher the risk, the higher the premium for life insurance. Many insurers require lab work and a medical exam to gauge the risk, testing for diabetes, high cholesterol, and other health issues. They also test for nicotine, which can remain in the bloodstream for several days, as well as a byproduct of nicotine that remains in the body for even longer. A urine test can reveal smoking or tobacco use weeks after the last consumption.

You will probably be asked if you have used a tobacco product within the past year. Even if you only smoke occasionally, if the answer is yes, you will be classified as a smoker and pay higher rates for life insurance. However, premiums for heavy smokers may be even higher than for lighter, more casual smokers.

How Long Do You Have To Be Tobacco-Free To Qualify For Lower Rates?

Different insurance companies have different policies for tobacco and nicotine products:

Some companies will give you a break if you are using a nicotine patch or other smoking cessation products, provided you are no longer smoking.
Some insurers require that you have not used tobacco for at least five years to qualify for lower rates.
Other companies require policyholders to have not used nicotine products for at least three years.
One insurance company offers non-smoking rates to individual policyholders who are trying to stop using tobacco products. This quit-smoking incentive allows people to purchase life insurance at lower rates for one to three years while they are trying to kick the habit. If they are still smoking when that time expires, premiums go up to higher smoker’s rates.

How Much Does Smoking Increase Your Life Insurance Costs?

Smoking can increase your life insurance rates substantially. A smoker may pay twice as much or more than a nonsmoker for the same coverage. The higher your age if you are a smoker, the higher your rates will be. For example, the average annual premium for a 20-year term life insurance policy with a death benefit of $250,000 is $753 for a 30-year-old male smoker, as compared to $7,107 for a 60-year-old male smoker.

What If You Are Vaping Instead Of Smoking?

Vaping has become more popular over the past decade, particularly among younger people. Insurance companies have different policies about vaping. Some will treat you as a smoker if you vape, because of the nicotine contained in the products, while others may classify you as a nonsmoker. Most insurers do not treat vaping as a smoking cessation aid, even if you are using it to quit.

What Kind of Insurance Do I Need If I Rent Out My Home?

If you own a home, you probably already have homeowners insurance to protect your investment from covered losses. However, a standard homeowners policy may not cover damages that occur when your house is being rented out, depending on the length of the rental term and the situation. Our experienced agent can advise you on what insurance you need if you plan to rent out your home.

Different Insurance Requirements For Different Situations

There may be a variety of circumstances under which you may want to rent your home. The situation may involve either a short-term rental of your primary residence or long-term lease of a second home.

Short-Terms Rentals Of A Primary Residence

If you are planning to rent your primary residence for a very short period, such as a week or several weekends, your insurance needs could vary depending on the specific circumstances:

Some insurers may allow a short-term rental if you have notified the company in advance. Other insurance companies will require a rider to your existing policy to cover your home under these circumstances.
However, if you are renting out your primary residence to various guests for short periods on a regular basis, this would constitute a business and would not be covered under a standard homeowners policy. For this type of arrangement, you will need business insurance – either a hotel or bed and breakfast policy.

Long-Term Rentals Of A Second Home

Buying a second home to rent is a popular investment strategy. When individual homeowners marry, they may decide to live in one home and rent out the other as a source of income. This strategy has tax and investment advantages, but it does require you to carry a type of business insurance known as a landlord or rental dwelling policy. Risks are increased when you rent out your property for longer periods, such as six months or a year. These additional risks will be reflected in your premiums, which generally run approximately 25 percent higher than the cost of a standard homeowners policy.

Landlord business insurance covers physical damage to the structure of your second home caused by covered perils, such as fire, hail, lightning, wind, ice, and snow. It also covers the loss of any personal property you leave on the rental site for tenant use or maintenance, including lawnmowers, snowblowers, and appliances.
Your landlord policy will also help protect you from liability. If a tenant or guest is injured on the property, this type of business insurance can cover medical expenses and legal fees.
Most landlord policies also provide coverage for loss of rental income during a period when the property is being rebuilt or repaired after damage from a covered loss. This coverage is usually limited to a specific period of time.

Whether it is your primary residence or a second rental home, residential property is a major investment. Our friendly agent can help ensure you have the insurance coverage you need to protect your home.

What To Know Before Trading In Your Car

There’s nothing better than that new car feeling. But before you drive your new ride off the lot, you often have to decide what to do with the car in your driveway. When it comes to getting rid of a used car, you have two options: selling it yourself or trading it in. (If money […]

How To Keep Your New Car’s Value As Long As Possible

Buying a new car requires a substantial investment today—one you will want to protect. According to the Kelly Blue Book, new car prices are currently averaging:

$20,000 for a small car
$25,000 for a midsize car
$26,000 for a small SUV
$32,000 for a minivan
$33,000 for a midsize SUV
$39,000 for a small luxury car

If you have recently purchased a new vehicle or are planning to do so, the following are some steps you can take to protect your investment.

Park Your Car In The Garage

Many people use their garages for storage and park their vehicles in the driveway or on the street. That could lower the value of your car because it leaves it exposed to the elements. Sun, heat, wind, hail, rain, snow, debris, and falling branches can all cause damage to your vehicle. If you don’t have a garage, consider installing a carport to help protect your investment.

Don’t Smoke In Your Vehicle

Cigarette smoke imparts an unmistakable odor to the interior of a car. It can also dull interior surfaces or cause them to turn yellow. If you smoke in your car or allow someone else to do so, it will reduce your potential resale market significantly and lower the value of your vehicle.

Get Regular Oil Changes

Regular oil changes are the most cost-effective maintenance you can do for your car. They are relatively inexpensive (approximately $30 to $50 per oil change) and can help prevent major engine problems in the future. It is generally agreed that the 3,000-mile oil change rule of the past is outdated. With innovations in technology, the new interval for changing your oil is closer to 5,000 miles or more. Check your manual to find out what is recommended for your new vehicle.

Have Your Car Tuned Up Regularly

Mechanical parts work together and problems can be progressive. A small issue now can become a large, expensive issue later. Regular tune-ups will make your car run better and more quietly and help prevent significant problems that could substantially lower its value.

Clean Up Spills As Soon As Possible

Although most car interiors are designed to resist staining, it is still essential to clean up spills promptly when they occur. Stains can become permanent if they are allowed to sit for too long. This is particularly true for children’s drinks with red food coloring. Coffee and tea can also leave permanent stains if not removed at once.

Carry Sufficient Auto Insurance Coverage

Having the right auto insurance is one of the most important things you can do to protect the value of your new vehicle. If you finance your car, you will be required to carry full coverage by your lender. The cost of car insurance can depend on several factors, including your driving record, where you live, and whether your bundle your auto and homeowners policies together. Our experienced agent can help you find the right car insurance coverage to protect your investment at the best available rates.

How Many Life Insurance Policies Do I Need?

Financial planning is not always cut and dried. Changes are likely to occur in a person’s life, and financial needs and goals shift along with them. Life insurance is part of the financial picture for a good portion of our lives. It may increase as our responsibilities increase and decrease as we accumulate more assets. There may be times when it suits a person’s needs to have more than one life insurance policy. There is no limit to the number of policies you can purchase.

Why Have Multiple Life Insurance Policies?

It is not uncommon to divide life insurance coverage among multiple policies. Any given individual may have, for example:

A large term life insurance policy for coverage
A smaller policy included in the mortgage payment
Balance life insurance on credit cards
A small whole life policy purchased during the individual’s childhood

A man or woman with a family may have term life insurance to provide protection for the family until the children are grown and have completed their educations. The same person may also have a universal life insurance policy for the investment options and lifelong coverage it provides.

What Happens When You Increase Your Life Insurance Coverage?

Insurance companies are typically concerned with the total amount of coverage you have, not the number of policies. As you add more life insurance coverage, your insurer will likely examine your physical condition and health more closely. A complete physical examination may be required if you want to significantly increase your total coverage with any one insurer.

What Are the Pros & Cons Of Buying Multiple Life Insurance Policies?

There are pros and cons of purchasing multiple policies to obtain additional life insurance coverage. One advantage is that dividing coverage among more than one insurer can help you avoid a full physical and close scrutiny of your health and help protect your privacy. Another advantage is the flexibility it gives you to purchase the best product for each purpose and to tailor policies to suit your needs.

On the con side, it costs more to buy multiple small policies than a single larger policy, as underwriting costs account for a significant portion of policy premiums. Additionally, if you are aware of certain health problems and buying multiple policies to avoid close scrutiny, your policies could be invalidated if that fact is revealed.

Alternatives To Buying Multiple Life Insurance Policies

Instead of purchasing and dropping life insurance policies to suit your changing needs, consider buying term insurance riders for an existing policy. Term riders are small policies piggybacked on your main coverage. They usually cost less than a standalone policy because the underwriting was already done when your main policy was issued. If you have a term life insurance policy and want to add permanent coverage, in most cases, you can simply ask your insurer to convert part of your term policy to permanent insurance. This strategy has the advantage of not requiring further health checks. Our experienced agent will work with you to find the best life insurance options to suit your needs.

25 Screen-Free Fall Activities For Your Family

The leaves are changing colors, the air is crisp, and the days are getting shorter. That, plus the arrival of pumpkin spice flavored everything, means fall has arrived! Your kids may have started school again. But there’s still plenty of time to have some fun outdoors before winter weather rolls in. Looking to keep your […]

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