Buying life insurance is one of the most important things you can do to ensure that your family can maintain their standard of living in the event something happens to you or your spouse. This article will help you understand the kinds of life insurance that are available to you and the pros and cons of each type.
There Are Two Main Types of Life Insurance
The two kinds of life insurance are whole life and term life. The differences in the policies primarily come down to the ability to accrue cash value and the length of the policy.
According to https://floridainsurancequotes.net/life-insurance/get-best-whole-life-insurance-quote-florida/, whole life policies have higher premiums than term insurance. These policies stay in force for your entire life as long as you continue to make your scheduled payments. These policies allow you to reinvest your premium payments into a variety of investments (stocks, bonds, money market accounts) so that as you hold the policy it builds up a cash value. One of the nice features is that, over time, this will allow your policy to have a cash value which could exceed the amount of your covered benefit. If you can afford to hold a policy until you retire, this cash value may provide a nice supplement to your income. This cash value (also called the surrender value) will only be available in its entirety if you hold the policy for a set period of times, typically 10-12 years.
There are other, less expensive investment options. So your first consideration with a whole life policy is if you will be able to afford the premiums over time.
As its name implies, term life is a type of life insurance that you hold for a specific period of time. Because the cost of the policy is just the cost of the insurance and there is no investment component, you can get a term life policy for significantly less than you would pay for a whole life policy. Many consumers find that they can purchase more insurance coverage at https://floridainsurancequotes.net/life-insurance-quote/ which can provide additional peace of mind. You can generally define the number of years you want to hold the policy. For example, you may want to hold the policy until you retire, and then switch to a new, less expensive policy that would cover your empty nest in retirement. This is a difference from whole life which you would either have to cash out or continue to pay a high premium.
One caveat about term insurance, it is cheaper the younger you are. As you get older, the cost difference between the types of policies can narrow considerably. It’s good to open a term life policy while you’re young.
How Much Coverage Do I Need?
This is a great question that doesn’t have an easy answer. A good rule of thumb is to consider the amount of insurance that you think your surviving spouse would need to live comfortably, them multiply that amount by the number of years you think they would need the insurance benefit. By this I mean, for example, that if you have a spouse that currently does not work, it is not unreasonable to expect that over time, they will want and seek employment, particularly as children get older.
So by this measure if you figure your spouse would need $50,000/year for about 5 years you would want to consider a $250,000 policy. But that’s just where your calculation starts; you also need to consider your current housing situation. Many people look at insurance as a way to ensure that their family can stay in their house. So you should make sure there is enough in the policy to allow the house to be paid off.
And parents with children also may want to ensure that there would be enough money to finance or at least begin to finance a child’s college education. That’s why you can start easily seeing policies get to $500,000 or even $1,000,000. You are not insuring yourself against what will happen, but what may happen.
Can I Afford It?
Life insurance is based on a risk premium. Simply put, insurers understand, and count on, many policy owners to outlive their policy. That means they will not have to pay out that $250,000 or $500,000 to every policy holder. This allows them to make premiums affordable.
Something to remember is that the healthier you are the better rate you’ll get. While this may not sound fair, you have to remember that insurers at https://floridainsurancequotes.net/life-insurance-quote/ are insuring against predictable risk. For an insurer, this includes taking into account your overall health. People who are at a high risk for a life-threatening medical condition (e.g. if you smoke, if you are significantly overweight, etc) you will have to pay higher premiums then those that do not have those risk factors.
Many people assume that their standard Florida home insurance policy will cover everything that they have in their homes, and while it does cover a lot, there are many items that you might want to get extra coverage on.
But will my standard Florida homeowners insurance cover my book collection?
The short answer is that yes it will, up to a point. It all depends on the value of your book collection. Are the books precious? Are they the fossilized remains of extinct creatures? Have they come from outer-space? Or were they just collected on the beach one day to remind you of a lovely vacation by the sea?
If your book collection needs any sort of specialized treatment or care or is in anyway rare, then it needs a specialist policy. It won’t be covered enough under a general policy according to https://floridainsurancequotes.net/florida-homeowners-insurance/.
There are such things called riders, or sometimes known as endorsements. They are written statements which are then attached to your policy to increase your coverage. A new rider or endorsement should be taken out on each individual collection. For example, if you also collected fine art to go alongside your book collection, then a rider would be needed for both as they both have different values and maintenance and repair procedures should they be damaged.
But it isn’t just accidental damage but also theft. What if someone were to steal your precious books? Under a standard FL home insurance policy your books are only covered for a certain amount. The payout on stolen jewels might not cover their true value at all.
Standard Home Insurance Policy
Many standard home insurance policies do not provide specialist coverage for collections and if they do, it is very limited to a maximum of $2,000 but usually far less and the insurer does not take into account the actual value of individual collections or art pieces, which is why is it important to have your collection valued by an independent expert before approaching a home insurance provider as the policy cover and premiums will be based on the true value figure and not under the general umbrella of the standard home insurance policy.
But as with any financial product, it is best to speak to an adviser at https://floridainsurancequotes.net/florida-homeowners-insurance/. They will be able to tell you exactly what you are covered for and for how much. They will also be able to help you to make any additions or changes to your home insurance in FL that may be needed.
Not all states are alike when it comes to the cost of car insurance. Where you live can either cost you more or less depending on certain factors like do you live in a big city and how dangerous are the roadways where you are. Who knew that when looking for a new home that you needed to factor in the cost of car insurance along with the quality of school district and crime rate when looking at a particular neighborhood.
How Much Insurance Is Required?
In Florida, the law states that every driver must have at least $10,000 in property damage liability and $10,000 in personal injury protection. This is the minimum liability required but you can also extend your policy for more protection. Much needed info when you are looking for minimum Florida auto insurance coverage at https://floridainsurancequotes.net/auto-insurance/florida-auto-insurance-minimum-coverage/.
Where Are the Highest Auto Insurance Rates at?
If you can’t afford to pay for an expensive auto policy then avoid driving. In all seriousness, some of the neighborhoods in this city are more affordable than others.
Rates range from almost $3,000 to almost $4,000 while in the less expensive parts of the country, the average rate is just over $1,000.
In general, auto insurance in the country tends to be cheaper than in the city. You just have to shop around intelligently.
The Hurricane Factor
Many things can factor in whether your auto insurance goes up or down like your age and your driving record, what kind of car you drive and like you have already seen, where you live, but there are some factors that are unique to the state that are important for you to know, especially if you are a new state resident. Hurricanes and other severe weather affect Florida’ residents’ homes and cars every year. The best way to ensure that you have the money to repair or replace your vehicle if it gets damaged in a hurricane is to get full comprehensive auto coverage. Don’t forget to worry about the gators too.
Other unique elements of auto insurance include the state law that offers windshield repair or replacement deductible free when you have insurance and the one that says that once your vehicle has been in Florida for more than 90 days, you must have the state’s limit insurance.
Ways to Save Money on Your Auto Insurance
Here are some tried and true methods to help you save on car insurance.
- Shop around for the best policy. Use websites to compare auto insurance in Florida at https://floridainsurancequotes.net/auto-insurance/compare-auto-insurance-florida/ and you will find the best deal.
- Take advantage of discounts offered online and don’t be afraid to offer to have one of the black boxes in our car to monitor your driving. It is the most effective way to prove to an insurance agent that you are a safe and reliable driver.
- Change your car to one of the safer rated models that do better in an accident and which has the most safety features.
- Change your policy by raising your deductible and reducing your rate.
No matter what you decide, make sure you do a lot of research and personally talk to an agent about your concerns.