SouthGroup Gulf Coast - Your Trusted Choice

Monday, June 4, 2018

Motorcyle Insurance - Don't Leave Home Without It

Every activity comes with risks, especially those that involve wheels, speed, and the unpredictable factors that drivers and motorcyclists experience while on the road. Make sure you have the motorcycle insurance you need to be fully covered in the event of an accident.

Contact SouthGroup Insurance for home, auto and motorcycle insurance quotes.

Motorcycle Accident Facts

Motorcycle-related deaths increased by 55% in the past decade
4,500 people died in motorcycle accidents in 2010 alone
Motorcycle injuries and deaths cost about $12 billion annually

You know the risks are out there: a deer crossing the street in a blind curve; drivers neglecting to check their blind spot or traveling too fast through an intersection. Motorcycle riders see these dangers each time they ride.

You can’t prevent an accident from happening, but you can be prepared. Some of the important measures that can make a difference include taking a motorcycle safety course, wearing protective gear, and making sure you have adequate motorcycle insurance.

What kind of policy do you need, and how much coverage should you buy? Let’s discuss motorcycle insurance requirements and how you can find out more about what is required in your state.

Motorcycle Insurance Requirements

Every state in the U.S. requires motorcyclists to have liability insurance, with the exception of Washington State, Montana, and Florida. However, Florida still has a financial responsibility law, requiring motorcyclists to pay personal and property damages in an accident they cause.

Liability insurance pays (up to your set limits) for damages or injuries you cause in an accident, as well as your legal defense if needed. Because these costs can quickly soar to hundreds of thousands of dollars in the event of severe injuries, property damage or law suits, a good liability policy is highly recommended.

Structure of a Liability Policy

Liability coverage has three forms of coverage: bodily liability for one person, bodily liability for all people involved, and property liability. If you cause an accident and someone is injured, the bodily liability would cover the costs of treatment for that person.

When you buy motorcycle insurance, you determine the limit. If you purchase a 10/20/10 plan, it means the insurance company will pay up to $10,000 in medical care for one person, $20,000 for all injuries, and $10,000 in property damage.

Before you decide on the liability coverage in your motorcycle insurance policy, consider how much you can afford if the accident is severe. If the costs of the crash exceed your limits, you will have to pay out of pocket.

As an example scenario, let’s say you have coverage for 10/20/10, and you cause an accident resulting in $30,000 of medical expenses and $15,000 in property damage. You would have to pay $10,000 for medical care and another $5,000 in property damage, out of pocket.

How to Get Free Online Quotes and Compare Policies

You can get a free quote from TrustedChoice.com now.

There is more to getting a motorcycle insurance quote than just the numbers, however. When it comes to making the best decision on insurance, it is important to meet with an agent. Working with an agent in the Trusted Choice network means you will have someone to talk to who can answer your questions about the best policy, deductibles and limits for you.

Should you be purchasing uninsured and underinsured coverage in case you are in an accident caused by someone else who does not have the means to pay your expenses? Should you consider an umbrella liability policy? Do you know what kind of coverage you need if you travel with your motorcycle out of state?

Insurance can be confusing. Plans often have various limitations and exclusions, though they are not always clear. Without reviewing the policy with an experienced insurance professional, you may not know what your plan covers – and what it does not cover.

Before you buy motorcycle insurance, get free quotes from several providers. A Trusted Choice member agent can help you to get comparative motorcycle insurance quotes for you, and can also look for any discounts for which you may qualify.

Factors that Affect Your Rates

In general, motorcycle insurance rates are affected by the following factors:

Your credit score: It's true - your credit history affects your motorcycle insurance premium as much or more than your driving history. Statistically, motorcycle riders with poor credit are more likely to file a claim, so insurance companies tend to raise premiums for these customers to compensate for risk.

Your age and driving history: The insurance company will do a risk assessment based on how old you are and any included traffic accidents or violations on your record, both for your motorcycle and your car.

Where you live and travel: If you travel in high accident or crime areas, your risks are higher. Where you store your bike also matters: if it is kept in a locked garage, it is much less likely to be stolen or damaged.

How often you ride: If you ride year-round, you will face more risks than drivers who only use their motorcycles for a few months of the year, or only on weekends.

The make and model of your motorcycle: How expensive is your bike? How new? And how much horse power? A new Ducati 1199 Panigale will require more expensive repairs than a used Honda Stateline. This is because the Ducati will cost more to repair or replace in the event of an accident.

After-market additions: Insurers will also take into account whether you have added specialty components, such as a custom frame.

Additional Coverage

The costs of a severe wreck can quickly exceed your state’s required minimum coverage. Consider adding additional forms of insurance to a general motorcycle insurance plan.

Accessories coverage: If you have done any after-market upgrades or any enhancements to the motorcycle, you may want additional coverage for these items. It is a good idea to retain all receipts and photos of any equipment or custom work.
Collision coverage: If your motorcycle is damaged in an accident, collision coverage will pay for repair or replacement regardless of who was at fault for the accident.
Comprehensive coverage: Also known as “other than collision,” comprehensive coverage covers any damage not caused by an accident with another vehicle, including:
- Weather-related damage, such as hail
- Criminal activity, including theft and vandalism
- Collisions with wildlife
Medical payments / personal injury coverage: Pays for your medical treatment or funeral costs after an accident, regardless of who is responsible for the accident.
Uninsured / underinsured motorist coverage: If an uninsured or underinsured driver causes a collision in which you are injured or your motorcycle is damaged, this policy would cover your out-of-pocket expenses.

Finding an Agent

General motorcycle insurance policies available from an online insurance company may not be tailored to your needs. Even if you start your research by comparing online quotes, make sure you find an agent or motorcycle insurance broker.

A local agent in the Trusted Choice network can compare multiple plans from several insurance companies, find all available discounts and tailor a policy to fit your needs and budget. Contact SouthGroup Insurance, a Trusted Choice member agent today.

We are your LOCAL Trusted Choice Advisors, SouthGroup-Gulf Coast http://www.southgroupgulfcoast.com , SALES AND SERVICE AGENTS: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Tracy Arnold, Brittany Jones, Denise Russell, Melissa Moran, Alex Treutel, Anne Gillam, Ashlie Moody, Mark Strickland, Johnny Walton and Whitney Zimmerman Webb at SouthGroup Gulf Coast. You can reach us by snail-mail or in person: 412 Hwy 90, Suite 6, Bay St Louis MS 39520, email: info@southgroupgulfcoast.com, phone: 228-466-4498 fax:888-415-8922, FaceBook www.facebook.com/southgroup.gulfcoast, or Twitter www.twitter.com/atreutel !

We have 2 Gulf Coast locations to serve you - 2505 Pass Road - Biloxi and 412 Hwy 90 Suite 6-Bay Saint Louis, MS. We write coverage in 40 different states and can assist you with Mississippi insurance, Louisiana insurance, and Alabama insurance and many other states.

Insurance is stressful, but we make saving easy. We help you save money on insurance!
#trustedchoice #southgroup @southgroup @stateauto @libertymutual @TRV_insurance @safecoinsurance @progressive #savemoney @atreutel

Wednesday, May 30, 2018

Business Continuity is critical - be prepared for Hurricane Season!

The IRS issued Tax Tips https://www.irs.gov/businesses/small-businesses-self-employed/disaster-assistance-and-emergency-relief-for-individuals-and-businesses which is also good advice for your insurance coverage! Safeguarding your records will provide you with better information for tax deductions and insurance claims. Simple steps can keep you prepared:

1. Recordkeeping - With today's technology, you can easily take advantage of paperless recordkeeping for important documents such as tax returns, insurance policies, appraisals, receipts for major purchases, etc.

2, Document Valuables - A room-by-room inventory is extremely helpful in reconstructing records following a disaster. Consider photographing or videoing your contents. Be sure to store the pictures/videos in a safe place outside of your home or business. Multiple copies are recommended.

3. Update Emergency Plans - You and your family are the most important assets. Think through your emergency and/or escape plans NOW. Keep a battery operated weather/news radio and flashlights ready. Evacuate when directed by authorities.

4. Count on Your Agent - Know how to contact your local Trusted Choice agent following a loss, so they can assist you through the claim process. Don't rely on a 800 number - you need a person to talk to! In the event of a federally-declared disaster, be aware that the IRS may provide you with assistance on filing.

Wednesday, May 2, 2018

How You Can Cover Your Risks With Business Insurance

Business insurance can be complex, and it takes an experienced insurance agent to help you get the right commercial coverage for your enterprise. You need an agent who can service not just one portion of your business insurance needs, but all of your commercial coverage, from commercial vehicle insurance to professional liability coverage to workers' comp.

A Trusted Choice^® independent agent who specializes in business insurance can do just that. Unlike captive agents who provide specific coverage from one insurance company, Trusted Choice agents work with many carriers. These agents can meet all of your commercial insurance needs, even when you need specialty coverage, or several different policies from different carriers.

Independent agents handle over 50 percent of commercial insurance policies in existence today, and are located in over 27,000 offices nationwide. Call a local agent in your area today to get help with your entire business insurance portfolio.

Top Risks Businesses Face

Property damage from fire, storms and accidents
Liability in many forms, including product liability, accident/injury liability, libel, malpractice and professional liability or “errors and omissions” risks
Fraud, embezzlement, extortion
Cyber-crime and data loss

Every company, large and small, has unique risks. Some have workers who operate heavy machinery or drive vehicles while on the job, while others serve food and alcohol or handle toxic substances. Doctors and hospital staff handle patients, body fluids, sharp needles and equipment. Some employees handle sensitive documents, data, or money, potentially opening the door to business fraud. For this reason, every company needs commercial insurance coverage specifically matched to the risks of the enterprise.

Determining your risks and making sure you have the right commercial insurance in place requires an evaluation of a wide range of factors, including:

Your business needs
How you serve your customers
How many employees you have on staff
The materials or substances those employees handle
Whether your employees drive in the course of their work
The safety of your building, equipment, and processes
The security of your data and intellectual property
Risks facing your corporate officers

To assess your business insurance needs, start by contacting an online Trusted Choice independent agent who specializes in commercial insurance. These agents can fully address every aspect of your business coverage and help to ensure that you do not have gaps that could leave your business exposed to financial risk.

Types of Commercial Insurance Policies

Every commercial operation needs business insurance. The specific blend of coverage types you need for your business depends on many factors, such as whether your employees handle money, dangerous substances, sensitive data or expensive merchandise.

Your agent will be able to recommend a package combining the coverage types you need, tailored to your risk management concerns.

For example, you may need some combination of the following types of commercial coverage:

General liability, contractor’s liability, or professional liability (errors and omissions)
Directors’ and officers’ liability
Malpractice insurance
Commercial property insurance
Commercial vehicle or commercial truck insurance
Contractors and builder’s risk coverage
Inland marine coverage
Business interruption insurance
Landlord insurance
Commercial tenants insurance
Crime coverage or fidelity insurance
Cyber-crime insurance
Workers compensation
Construction bonds

While you certainly do not need all of these coverage types to safely run your business, it’s nice to know that you have a variety of ways to manage the specific risks your company faces.

You may also want to offer or provide certain types of coverage to your employees, such as:

The coverage you choose for your business and employees should be designed to provide full protection for your company’s assets. A quality benefits package will show that you are an excellent employer to work for, and may even help you to attract the best talent.

Business Fraud Stats from the NFIB and the FBI

In 2011 the FBI secured $2.4 billion in restitution for corporate fraud
The same year, the FBI ordered $16.1 million in fines from corporate criminals
The median loss in a fraudulent scheme for businesses of 100 employees or less is $190,000

Corporate fraud, or “white collar crime,” is one type of business risk that nearly every commercial enterprise can encounter, whether it is a large corporation, a farm, a school, a restaurant, a non-profit charity, a medical practice or a machine shop. This is because any business operation, large or small, involves the exchange of money for goods and services.

According to the Association of Certified Fraud Examiners (ACFE), small business owners tend to believe their company is not prone to business fraud. However, in a study the ACFE found that small businesses are actually at a greater risk of employee embezzlement simply because they have a higher level of trust in their staff. The result of that trust can unfortunately result in more opportunity and more temptation for those who have access to the financials.

There are a few key lessons we can learn from the ACFE business fraud study:

The first step in mitigating risk is to gain a full understanding of what can happen in the course of doing business.
The worst time to find out that you need coverage for a problem is after the incident has occurred.

A qualified commercial insurance agent can work with you to help you evaluate your business risks and reduce your exposure.

Managing Risk in Every Aspect of Your Operations

One of the biggest challenges of risk management is simply assessing the potential problems your business may face so you can take the appropriate measures to reduce or eliminate those risks. If you run a commercial operation, there are several vital risk management strategies you can use to protect your business:

Spend some time identifying your company's specific risks, from customer relations challenges to employee safety concerns, property risks, business interruption and corporate fidelity.
Identify the specific proactive methodology you want to implement to mitigate each risk. This step will help you to develop a multi-pronged approach to reducing risk that includes everything from workplace safety measures to security systems, employee education and commercial insurance.
Work with a knowledgeable commercial insurance agent to choose the specific business coverage you need to reduce the financial impact on your enterprise in the event of accidents, injuries, property damage, fraud and the other risks you have identified.

By assessing your business risks from multiple angles with a qualified commercial insurance agent, you can more adequately protect your company from the challenges that can undermine your company's financial health.

Comparing Commercial Insurance Quotes

A member agent in the Trusted Choice network can review your business needs and help you evaluate the commercial coverage options that make the most sense for your organization. Your agent will also compare policies and quotes from multiple business insurance companies to make sure you have the right protection in place.

These independent agents are devoted to helping you get just the right insurance for your business. Because of their many insurance company partnerships, Trusted Choice independent agents can handle all of your business insurance needs with friendly and convenient service in one office, simplifying your business policies, and even finding you discounts.

Wednesday, April 4, 2018

Home Owners Insurance Glossary of Terms - How Much Coverage Do You Need?

Have you ever wondered how your insurance company determines how it will reimburse you for homeowners insurance claims? What if you had a total loss? Would you be able to rebuild? The answers to these questions depend on the type of home insurance policy you have and whether the value of your home is based on its replacement cost or its actual cash value.

Insurance companies provide coverage for your home and possessions based on either their actual cash value or their replacement cost. Actual cash value home insurance policies provide coverage for what your home is worth at the time of loss. Replacement cost policies will reimburse you for what it would cost to rebuild your home using all of the same materials at today’s prices.

It is important to remember that your home’s replacement cost is not the same as its market value, or how much you could sell it for. A home’s replacement cost for insurance purposes is based on a number of variables that determine what it would cost to rebuild your home with similar materials at today’s costs. The variables that make up your home’s replacement cost will fluctuate over time, so the number is not set in stone. You will need to review your policy at least annually to make sure that your replacement cost figure is keeping up with the times.

How should you determine your home’s proper replacement cost? Your insurance company will likely ask you a series of questions about your home and your responses will be plugged into a model that determines its replacement cost. Your job is to have some idea of whether or not the figure is accurate so you can be assured that your home is properly protected or that you are not over-insured. Consider talking to some home builders in your area as well as visiting some home improvement stores to help figure out what it would cost to replace your home’s interior and exterior finishes (including labor) at today’s prices. Together we can make sure that your home is properly insured and its replacement cost is accurate.

Don’t forget to evaluate your personal property coverage as well. Personal property coverage in a homeowners insurance policy typically starts out at a percentage of your home’s dwelling coverage, but if you feel you need more coverage because of certain valuable items, don’t be afraid to increase your personal property coverage limit or add special riders or endorsements to protect your valuables. Preparing a home inventory is extremely helpful in determining if you have sufficient coverage for the contents of your home.

Once you have settled on a replacement cost figure, remember that it will need to be re-evaluated every year to account for changes in building materials and labor as they fluctuate over time. We will work closely with you to determine the replacement cost of your home and belongings, and we can help you with auto insurance, personal umbrella insurance and any other personal insurance needs that you may have.

Have you reviewed your homeowners insurance policy lately? Are you satisfied that your replacement cost figure is accurate? Do you need to upgrade your actual cash value policy to a replacement cost policy?

Thursday, March 1, 2018

Spring cleaning tips from SouthGroup Insurance

Spring cleaning tips from SouthGroup Insurance

Of course, because spring is a time for new beginnings, cleaning and organization around the house are very popular this time of year. If you’re ready to tackle that monumental chore, read on for some helpful information. (And if you’re so tidy and organized throughout the year that spring cleaning isn’t a big chore for you, well, keep that to yourself! Unless you want your friends and neighbors to be jealous, that is.)

+Take it one room at a time. Deciding to clean or organize your entire home can quickly get overwhelming. If you focus on just one area or room, then move to another only when you’re finished, you’ll likely work more efficiently.
+Follow the six-month rule. Generally, if you haven’t used something in six months (with the exception of seasonal items), it’s a good idea to consider throwing it away or donating it.
+Don’t forget the kitchen. Just like other rooms, your kitchen likely has things that haven’t been used in some time — and this includes food in the refrigerator or freezer. Give those appliances a thorough cleaning and get rid of anything you won’t be eating.
+Set yourself up for success. Paper clutter is something we all could probably cut back on pretty easily. Setting up a few recycling bins throughout the house gives you a convenient alternative to just setting that old magazine or paperwork down somewhere and watching the pile grow.
+Make some money! Of course, the spring cleaning garage sale is a tradition for many homeowners, and can be a great way to bring in some extra income. Talk about a win-win situation — you get rid of stuff you don’t need, and someone pays you for it!
+Stay safe. When you’re cleaning or maintaining your home, be mindful of the physical risks involved. Lift with your leg muscles, not your back. Avoid prolonged repetitive motions. Use ladders, lawnmowers and other dangerous tools with caution.

Contact Us!

We are your LOCAL Trusted Choice Advisors, SouthGroup-Gulf Coast http://www.southgroupgulfcoast.com , SALES AND SERVICE AGENTS: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Brittany Jones, Tracy Arnold, Denise Russell, Melissa Moran, Alex Treutel, Anne Gillam, Ashlie Moody, Mark Strickland, Johnny Walton and Whitney Zimmerman at SouthGroup Gulf Coast. You can reach us by snail-mail or in person: 412 Hwy 90, Suite 6, Bay St Louis MS 39520, email: info@southgroupgulfcoast.com, phone: 228-466-4498 fax:888-415-8922, FaceBook www.facebook.com/southgroup.gulfcoast, or Twitter www.twitter.com/atreutel !

We have Gulf Coast locations to serve you - 2505 Pass Road - Biloxi, 5400 Indian Hill-Diamondhead, and 412 Hwy 90 Suite 6-Bay Saint Louis, MS. We write coverage in 40 different states and can assist you with Mississippi insurance, Louisiana insurance, and Alabama insurance and many other states.

Insurance is stressful, but we make saving easy. We help you save money on insurance!
#trustedchoice #southgroup
#southgroup @stateauto @libertymutual @TRV_insurance @safecoinsurance @progressive #savemoney @atreutel

Thursday, February 1, 2018

Ground Hog Day Tips -- Get Ready For Spring!

With Groundhog Day just around the corner, it’s time to start thinking about spring. (Or time to at least hope that springtime is coming, anyway.) And whether Punxsutawney Phil or the local groundhog sees his shadow or not, we here at SouthGroup Insurance have you covered.

Get ready for spring

Although everyone thinks of cleaning when it comes to spring, there are a number of things you should do to make sure your home is ready when the weather changes. Below is a selection of maintenance tasks from the National Center for Healthy Housing (you can see the full list at http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12334.pdf).

+Check to make sure your roof’s shingles are in good condition, and check your attic for any possible roof leaks that should be repaired.
+Look for peeling paint and repair/touch up as needed.
+Check for signs of leaks at window and door sills and use caulking or weather stripping to seal.
+Clean your dryer vent and make sure exhaust ducts are clear.
+Make sure there are no puddles or wet spots in your basement or crawlspace.
+Look for signs of rodents, roaches, termites, etc. Call an exterminator if you suspect an infestation.
+Clean your gutters and downspouts.
+Clean air conditioner coils and drain pans.
+Check/replace the batteries your home’s smoke and carbon monoxide alarms.
+Replace filters in your air conditioner and dehumidifier.

What? Six more weeks of winter?

Well, you can take solace in the fact that spring will be here eventually. In the meantime, here are some quick tips from Johns Hopkins University to avoid the “winter blues” and get through those long weeks of waiting.

+Keep active. Exercise releases endorphins that will elevate your mood.
+Eat well. High-sugar foods and large amounts of caffeine can feed depression and actually decrease your energy level. Foods such as whole grains, fresh fruits and vegetables, seafood and lean meats can help your immune system.
+Go to the light. Bring as much light into your life as possible, by spending time outdoors, opening your shades so your home receives more natural light, or even get help from a “light box.”
+Get your rest. Go to bed around the same time every night and wake up at the same time each morning. You’ll have more energy during the day.

Of course, if you have strong feelings of depression, please seek assistance from friends, family or a trusted health-care provider. There are people ready to help, whatever the season.

SIDEBAR: Time for an insurance review?

If an annual insurance review wasn’t included in your New Year’s resolutions, why not get it done while you’re in the cleaning and organizing mood this spring? Your life changes over the course of a year — sometimes in monumental ways. That means your insurance needs can change, too.

At SouthGroup Insurance, we can work with you to make sure you’ve got the coverage you need, while at the same time utilizing all possible credits and discounts to make that coverage affordable. Just give us a call at {agency-phone-#}. We want to help you meet your goals, and make sure what’s important to you is protected!

We are your LOCAL Trusted Choice Advisors, SouthGroup-Gulf Coast http://www.southgroupgulfcoast.com , SALES AND SERVICE AGENTS: Angelyn Treutel Zeringue, Tammy Garfield, Tammy Hogue, Brittany Jones, Denise Russell, Melissa Moran, Alex Treutel, Anne Gillam, Ashlie Moody, Tracy Arnold, Mark Strickland, Johnny Walton and Whitney Zimmerman at SouthGroup Gulf Coast. You can reach us by snail-mail or in person: 412 Hwy 90, Suite 6, Bay St Louis MS 39520, email: info@southgroupgulfcoast.com, phone: 228-466-4498 fax:888-415-8922, FaceBook www.facebook.com/southgroup.gulfcoast, or Twitter www.twitter.com/atreutel !

We have 2 Gulf Coast locations to serve you - 2505 Pass Road - Biloxi and 412 Hwy 90 Suite 6-Bay Saint Louis, MS. We write coverage in 40 different states and can assist you with Mississippi insurance, Louisiana insurance, and Alabama insurance and many other states.

Tuesday, January 2, 2018

New Year's Resolution - Get Life Insurance

You are not planning to have a heart attack tomorrow, or get a cancer diagnosis, or accidentally step out in front of a bus. For that reason, and especially if you are young and healthy and have no dependents, life insurance probably isn’t for you. Or is it?

Let’s look at what life insurance is, what it covers, and why people buy it. Then you can decide if now is the time to contact an independent agent in the Trusted Choice network who specializes in life insurance. Because these agents work with multiple life insurance carriers, they can compare policies and options on your behalf and help you make the best choice. Contact a local agentwww.southgroupgulfcoast.com for help meeting your life insurance goals.

Life Insurance Statistics

40% of American adults have no life insurance
Over 50% of U.S. households lack adequate life insurance coverage
About 40% of people surveyed say they would have immediate financial trouble if the primary wage earner in their household died

Why Buy Life Insurance?

As with all insurance, life insurance plans are about preparing for the unexpected. We don’t plan to have a heart attack or meet an untimely end. We may fret about the unforeseen, but there are few ways to prepare for it. Life insurance provides a way to be prepared and get peace of mind.

The main reason to buy life insurance is for financial protection for your family and dependents. If you are the sole income earner or the major provider in your family, then life insurance definitely makes sense. If you should die unexpectedly, your policy will help your loved ones pay your final expenses and potentially receive ongoing support. The amount they receive will depend upon the size of policy you buy.

Do You Need Life Insurance When You Are Young?

Most people don’t think about buying life insurance when they are young, healthy and single. However, if something should happen to you unexpectedly, a life insurance policy could pay for your student loans or other large outstanding debts, as well as your funeral expenses. These are never fun things to think about, but evaluating risks is a first step to preparedness.

Another good reason to consider buying life insurance at a younger age is to lock in rates. The affordability of life insurance is based largely on your age and risk factors, and life insurance for adults becomes increasingly expensive. While you are young and healthy, you will pay lower premiums. With short term insurance you can choose a lock-in term, such as 15 or 20 years at a preferred rate.

It is important to know that many term policies can be converted into permanent policies later on, without having to re-qualify. If you develop a severe or chronic condition at any point, your life insurance is already secured. Essentially you can insure your insurability.

Life Insurance Over 30

Most people begin seriously thinking about buying a life insurance policy at about the time they start a family. If you are like many people, the light bulb may come on at about the age of 30, when you realize that you are mortal, and that you have real financial responsibilities.

An important consideration for anyone who wants to purchase life insurance is that it will never be cheaper than it is today. It’s not too late at the age of 30, 40 or 50 or even later to buy life insurance that will protect your dependents from financial hardship or provide for you in retirement. But your costs will go up the longer you wait. If you do buy life insurance now, you can lock in a life insurance premium at a more affordable rate than it will be a few years down the road.

How Much Life Insurance Do You Need?

Choosing a life insurance plan requires a bit of math. You want to figure out how much your family needs for daily spending and major upcoming expenses in the event that you pass away too soon and cannot provide for them. Or, if you are young, single and healthy, you can look at the cost of paying off any debt you have accumulated, or the cost of care for an aging parent.

For the following simple example, we will pretend there is no interest or tax. But in reality those factors will affect the amount of benefit your beneficiaries receive.

Example:

You purchase a $500,000 life insurance policy.
Upon your passing, your family spends $10,000 for your final expenses, leaving $490,000 to be divided up over the payout period for your designated beneficiaries.
If the payout period is 20 years, the payments would be about $24,500 per year, or about $2,040 per month.

Again, interest and tax are not figured into this simplified example. What makes life insurance so confusing is that there are several different types of coverage, including term life and whole life or permanent life insurance. Additionally, the details of the policy you choose will be unique to your personal situation.

Life Insurance Terminology

It can be difficult to make sense of life insurance terminology. Here is a brief overview of the most common terms:

Accidental death insurance: Also known as accidental death and dismemberment insurance, or AD&D, this coverage pays you or a beneficiary a benefit if you are in an accident that results in your being killed or dismembered.
Annuities: An annuity is a type of insurance that either pays income after your initial investment (immediate annuity) or accumulates income (deferred annuity). Either of these types of annuities can be fixed (guaranteed) or assigned a variable rate that pays out based on the policy’s associated investments. Life insurance companies typically offer annuities to help people obtain a stable income during retirement.
Critical Illness Insurance: While not a life insurance policy, critical illness insurance is often available through life insurance companies. You might buy critical illness insurance (or CI) if you have a family history of heart disease or cancer in order to ensure that you have the financial resources to pay for your care if you are diagnosed with a severe illness.
No exam life insurance: This is life insurance coverage that some companies offer without requiring a medical exam first. Typically, this option will be more expensive because without submitting the results of a medical exam to the insurance company, you are an unknown and potentially greater risk.
Term life insurance: This is a life insurance policy that provides a death benefit only. Your annual premiums are locked in for a set term, such as 10 or 20 years. In the event that you pass away during this period, a death benefit is paid to your beneficiaries.
Permanent life insurance: This is a long-term policy, such as universal life insurance or whole life insurance, that includes an investment component and can cover retirement expenses in addition to providing a death benefit.
Universal life insurance: A permanent life insurance policy with a “liquid” account that accrues cash value, as well as interest, with each premium you pay. You can take out loans as needed for unexpected expenses or opportunities, such as a home purchase. You also can pay more than the scheduled premium, or take breaks from paying premiums.
Whole life insurance: Whole life is a permanent policy with an investment component that provides for your financial needs similarly to universal life insurance, but without the liquidity of the funds. This life insurance policy accrues a cash value and pays out at the end of the policy, if it is kept current.

Finding the Right Life Insurance for You

Life insurance causes more confusion for people than perhaps any other type of insurance, partly because there are several different types of life insurance products, and partly because the best life insurance is unique to each individual. Should you buy term life or permanent life insurance? Do you need a broker or can you get life insurance from an agency? Should you buy life insurance coverage online or is that too risky?

While you can buy online life insurance, it may be difficult to know what you are getting and whether it will adequately meet your family’s needs. Buying life insurance is a very personal decision. You may want a policy that builds cash value over time, or you may simply want to purchase coverage that will provide a death benefit if you should pass away within a specific term.

Depending upon the ages of your children and how long it is until they graduate from college, a 10-year, 20-year or 30-year life insurance term policy might be appropriate for you. Or, you may need life insurance to cover only your final expenses. These choices are individual, and for this reason it is smart to consult with a knowledgeable life insurance agent.

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