Why do I need life insurance?
There’s no replacement for you and the contribution you make to your family. You want to make sure that people in your life, especially your dependents, can remain financially secure after you die.
That’s what life insurance does for you and your loved ones. It gives you peace of mind. Income replacement is the #1 reason why people buy life insurance.
Stay-at-home moms or dads also have an important, often overlooked, economic value that should be covered by life insurance.
Life insurance is also used to achieve specific business or estate planning goals.
Bottom line: life insurance financially protects your family and loved ones at a time when it is needed the most.
The Whitcomb Agency recommends that each family income provider carry no less than ten times their annual income/worth in life insurance.
The amount of your outstanding mortgage should also be a consideration. Any coverage for your mortgage should be in addition to the amount of insurance you calculate for your income coverage.
It’s quite common to see life insurance also referred to as mortgage protection insurance since most people equate buying life insurance with the need to pay off large debts.
Who should I buy life insurance from?
You take the time to purchase a life insurance policy, so you want to feel confident that the company will be around in 20 or 30 years to handle your family’s needs if the time arises.
That’s why the most important buyer’s tip is to buy from a financially sound life insurance company. Though competitive pricing is important, it’s more important that the company is stable, financially strong and able to fulfill the policy should you need it.
You should pay particular attention, at time of purchase and throughout the life of the policy, to the financial stability ratings of your life insurance company. The Whitcomb Agency recommends that you buy only from A (“Excellent”) rated companies or higher by A.M.Best Company.
What are the advantages of term life insurance?
The easiest life insurance to understand (and the lowest cost to buy) is term life insurance.
Term life insurance provides straightforward death benefit protection without any expensive “cash value” or investment component add-ons.
Your term life insurance policy will offer level premiums for your choice of 10, 15, 25 or 30 years during which the premiums are guaranteed not to increase. As long as you pay your premiums on time, the company cannot cancel you. If the insured dies during the term, the death benefits are paid to the beneficiary without any complicated process or rules.
It doesn’t get any easier than a term life insurance policy, plus it’s the most affordable type of life insurance.
What should I look for in a term life policy?
Most high quality term life policies sold today are guaranteed renewable, which gives you the right to continue your coverage beyond the initial rate guarantee period without a medical exam.
This feature can become extremely important to your family should you become sick and uninsurable towards the end of your initial term life rate guarantee period. Also be on the lookout for living benefits which many insurance companies now include at no additional cost. Click here to learn more about living benefits.
How often should I review my life insurance needs?
Your life changes constantly, right? From purchasing a new home to getting married or having children to starting a business or even retiring, your life and your financial situation are constantly in flux.
Because the financial needs of your loved ones change over time, you should take a look at your life insurance policy periodically.
The Whitcomb Agency suggests you review your life insurance coverage at least once every five years or when you experience a major life event such as change of income or assets, marriage, divorce, retirement, the birth or adoption of a child, or purchase of a major item such as a house or business.
Who can I name as beneficiaries?
In naming your beneficiaries, keep in mind that life insurance companies only allow the names of those who are actually financially dependent upon you in some way.
Adults or children that you support, or owe money to, are considered to have a financial interest in you.
An acquaintance, roommate, friend or relative, absent of a financial relationship, will not do. You can name a charity if you have a history of giving to that charity.
Is the rate given to me accurate?
Our team makes sure to provide you with the most accurate rate possible so that you know what to expect. If anything, the estimate we give you is higher than the actual price as we rather underpromise and overdeliver.
My current insurance company has significantly increased my rate. How can I get a lower rate?
If your current insurance company has increased your rate, you can be sure to find lower rates with The Whitcomb Agency. Our insurance brokers are here to find you the most competitive prices on the market today, and we’ll fit you with an insurance package that suits both your needs and your budget.
Is there a fee for getting an insurance quote?
With us, there isn’t.
Book a no-obligation consultation with our team, and you’ll receive free insurance quotes from different carriers so that you can easily compare and contrast. We work with you to find the right insurance quote, no strings attached.
What is the difference in insurance if my vehicle is financed?
If you’re financing your vehicle, lenders require full coverage rather than the mandatory minimum coverage for your region. To qualify, you’ll have to invest in collision coverage as well as comprehensive coverage.
I have an RV/motorhome that I want to insure. Do you offer coverage?
Yes, at The Whitcomb Agency, we offer specialized RV and motorhome insurance.
Ask our insurance brokers today about our customized insurance plans.
What is collision coverage?
Collision coverage pays for vehicle repair or replacement in the event of a crash with another vehicle or an object connected to the ground. You are covered up to the current cash value of your car.
What is comprehensive coverage?
Comprehensive insurance pays for the repair or replacement of your vehicle in the event of damage caused by an unexpected situation such as theft, vandalism, fire, natural disaster, falling or flying objects, or civil disobedience. You are covered up to the current cash value of your car.
What is an “at-fault” accident?
An “at-fault” accident is when you are considered responsible for causing it, either through an act of your own or a failure to take action.
If I let my friend drive my car, will he or she be covered?
In most cases, car insurance goes with the car rather than the driver. Hence, as long as your friend has a license, your insurance should cover any damage that might occur.
What is a lapse in insurance?
A lapse occurs when you stop paying for or cancel your car insurance. We recommend avoiding an insurance lapse as this can result in costly consequences.
When you choose The Whitcomb Agency, we make sure you’re making your payments on time and let you know about all the risks involved.
What is a deductible?
When submitting an insurance claim, a deductible is an amount you’re responsible for before the insurance company covers the rest.
As your dedicated insurance brokers, we do our best to introduce you to carriers with the lowest deductibles so that you barely ever have to pay out of pocket. This way, not only will you shop the most competitive rates, but you’ll also discover trustworthy lenders that prioritize their clients.
How long do tickets and/accidents stay on my driving record?
Typically, driving accidents and tickets stay on your record for 3 years, but depending on the severity of the violation, they could be there for up to 10. For example, an “at-fault” accident will remain on your driving record for at least 6 years from the date of conviction.
Is hail damage covered?
Comprehensive insurance covers hail damage as it falls under the category of “act of nature”. Still, this usually involves a deductible. If severe damage has occurred, you are covered up to the actual cash value of the vehicle.
Is my car covered for damage caused by a flood?
Again, comprehensive coverage covers flood damage. If you want full insurance coverage for your vehicle, specifically for non-vehicular accidents, opting for this extra coverage is essential.
I drove through a pothole and damaged my car. Is the damage covered?
If you have collision coverage or all-perils coverage in your car insurance plan, you are covered for all pothole damage. Driving through a pothole is considered a single-vehicle collision and is, therefore, a covered loss.
How do limits and deductibles impact my premium?
Your premium is how much you pay your insurance company regularly to keep your coverage in place. Depending on the insurance type and specific policies, you can pay your premium monthly, quarterly, biannually, or annually. Whether it’s home, car, or life insurance, limits and deductibles are common factors that affect your premium rates.
An insurance limit is the maximum amount covered when making a claim—usually, the higher your coverage limit, the higher your premium. Our insurance agents can guide you in the right direction when it comes to pinpointing the perfect coverage limit for your needs. And they’ll stay on budget, too!
An insurance deductible is the amount of money you have to pay out of pocket for a covered claim. Generally, you may be able to save money on premiums by selecting policies with higher deductibles. Consult with our insurance professionals to see what’s in your best interest.
What is no-fault insurance?
No-fault insurance means that your insurer will process your claims and cover the damage, no matter who is at fault for the accident. This insurance type speeds up the coverage process, increasing premiums for the party at fault.
When should I review my insurance protection?
At The Whitcomb Agency, we believe it’s a good idea to review your insurance protection at least once a year. Still, if you have gone through a significant life change, it’s best to check in with us as soon as possible.
Get in touch with us now at (512) 528-4652 to schedule an appointment.