Author: alien

7 Best Life Insurance Tips For First-Time Buyers

Posted on September 13, 2022 by alien - life insurance

If you are looking for life insurance for the first time, use these 7 life insurance tips to more easily find a policy that meets your needs.

In 2020, only 54 percent of Americans were covered by life insurance. Those who chose not to purchase life insurance most often did so because they could not decide which type of life insurance policy to get. Purchasing a policy for the first time can feel confusing and complicated—But first-time buyers can make the process a little easier for themselves. Here are 7 first-time life insurance tips to help you more easily identify and purchase the right life policy for your needs.

Start looking for coverage as soon as possible

When it comes to life insurance tips, finding coverage while you are young and healthy is one of the most important. Individuals who do not yet suffer from any medical problems have more insurers from which to pick and receive the lowest rates. Individuals who wait too long may only be able to purchase guaranteed issue coverage at higher rates. Do not wait to purchase your life insurance. Start the process today to get the best rates and widest selection of policies for your situation.

Know how much coverage you need

Most people require more life insurance coverage than they realize. While these policies are useful for helping to pay off major debt or cover funeral expenses, there are many other financial milestones that you may want to cover with your life insurance policy. When choosing your coverage levels, consider these factors:

Children’s college expenses
Mortgage costs
Lost income if you pass away
Dependents needing support
Alternative financial support for loved ones
Future weddings and other financial needs

There are two rules of thumb you can use to determine how much coverage you will require. The first is the DIME method. In this approach, you add up the costs to pay off your Debts, lost Income, Mortgage, and the Education of your dependents and purchase a life insurance policy that covers these financial needs.

The second approach is to purchase a policy that provides you with a death benefit that is 10 times your annual income. A financial planner or life insurance agent can help you pinpoint exactly how much coverage is appropriate for your needs.

Familiarize yourself with the different types of life insurance

While you do not need an in-depth understanding of every type of life insurance policy, becoming familiar with the basic terminology, benefits, and drawbacks of each type of policy can help you make more informed and beneficial choices for your circumstances. Talk with your agent about the differences among these types of policies:

Term life insurance—Remains in effect for a specific amount of time, such as 15 or 20 years
Whole life insurance—Remains in effect until you die
Universal life insurance—Permanent life insurance with flexible premiums
Final expense insurance—Covers only end-of-life expenses
Variable life insurance—Combines the death benefit with a savings account

There may also be other types of life insurance you should discuss with your agent. Understanding your options can help you choose the one that works best for your needs.

Purchase from an established company

The life insurance company you select for your policy is important. You want to buy from a business that is #1 Trustworthy and #2 Financially sound. The right business will provide you with a fairly priced and transparent policy that meets your needs, and will be able to back up that policy with the appropriate benefits if you pass away.

One of the best ways to evaluate a company’s financial soundness and reliability is to use rankings by organizations such as A.M. Best. Pick a company with an A rating from these organizations for the best policies and the best peace of mind.

Choose a simplified application process

In the past, most companies required you to get a physical exam before they would set a premium and issue a policy. However, one of the best life insurance tips for today is to select a company that offers a simplified application process.

These companies may require you to submit a thorough medical history and answer questions about your health, weight, job, and lifestyle. They will then use third-party sources to confirm the information you submit instead of using a medical exam to determine your level of health.

In contrast to guaranteed life insurance policies, which charge a higher premium to insure you without a medical exam, this approach often results in premiums that are comparable to those from policies that require a medical exam. That can make the application process easier while giving you an appropriate and affordable policy.

Start coverage while your application is being processed

Occasionally, it can take a few weeks to process your life insurance application. You may be able to ensure coverage during this period by sending in your first premium payment along with your application. Doing so can give you peace of mind that you and your loved ones are protected even if something happens before your policy is processed. Ask your insurance agent whether this is a feasible approach for your situation.

Compare life insurance quotes

Never settle for the first quote you receive on life insurance. Comparing at least several quotes can help you identify the policy that will offer both the coverage you need and the financial costs that fit within your budget. One of the best ways to compare quotes is to use an independent insurance agent who can work on your behalf to negotiate competitive quotes from multiple companies and help you to compare your options to find the one that fits with your requirements.

Life Insurance in McAllen

If you are seeking life insurance in McAllen, consider using SafeGuard Insurance Agency. We work with 120 companies, enabling us to negotiate premiums and policies that fit your needs. We will offer you 5-6 quotes designed for your circumstances, as well as ensure that you understand your options. The result is a way to get life insurance that is easier, less stressful, and more effective than using other agents or trying to find a policy online. Contact us today for your quote.

5 Common Mistakes Businesses Make When Buying Insurance

Posted on August 19, 2022 by alien - business insurance

Business insurance can protect your company in the event of an accident or lawsuit. Finding the right insurance policy, however, can be difficult without the right support. Sometimes, businesses make mistakes that can cost them thousands of dollars, simply because they do not know what to look for when buying policies. Here are 5 common business insurance mistakes, and how to avoid them.

Purchasing the Cheapest Policy

Affordability is an important aspect of any insurance policy. However, the cheapest option is not always the one that best fits your needs. Some policies may cost significantly less than the other policies you are considering.

Chances are, these inexpensive choices will not offer the coverage you need. Either they do not compare to the other options available to you in the amount of coverage they provide, or they include restrictions and exceptions that severely limit your ability to use that policy.

While a cheap policy may save you money in the short-term, a single uninsured incident could end up costing you more than you saved in lower monthly premiums.

A better approach is to choose a policy that balances your coverage requirements with your financial realities. Here are some tips:

Pick an insurance company with experience and positive customer service.
Examine the benefits of a policy instead of just the cost.
Compare multiple policy options before committing to one.

Failing to Insure Income Loss

If an event occurs that requires you to submit a business insurance claim, it is possible that you will not be earning money from your company for a period of time. That can translate into a considerable loss of profits, in addition to the loss of new customers. Without that income, you may also struggle to pay employees, pay off loans, or manage other bills that require payment even while your business is closed.

That is why businesses should always include potential income loss in their business insurance policies. Business income coverage can help replace lost income, so you can continue to pay bills and loans and more easily get your business up and running once repairs are made.

The amount of coverage you receive will usually depend upon your income and expense records, and should help cover the amount of money you would have made if your business had remained open. You may even be able to get coverage for a specific period of time after your business reopens to cover losses suffered as business picks up again.

Failing to Regularly Review Your Business Insurance

Businesses change over time. Occasionally, they grow, adding income, buildings, and employees. Every so often, they shrink, moving to smaller offices and letting employees go. Failing to adjust your business insurance to account for these changes can be a costly mistake.

If your business grows, but your insurance policy does not grow with it, you may end up without enough coverage when you need it. If your business is growing smaller, but your coverage remains the same, you may be paying significantly more than you need to in premiums.

Regularly reviewing your insurance policy with your agent can help you keep the coverage you require, and get rid of the coverage you do not. And the appropriate amount of insurance can maximize your benefits without compromising your budget.

Failing to Purchase Enough Coverage

Buying less coverage than necessary is one of the most common business insurance mistakes, and it can leave companies struggling to recover from damage, theft, and other events. Two commonly overlooked coverages are workers’ compensation and general liability.

The most effective approach when buying business insurance is to find a policy that you can tailor to your needs, and to work with an agent who can help you navigate your many options. By making sure you have coverage for all of your unique business needs, you protect your company from significant out-of-pocket expenses if you ever have to file a claim.

To make sure you have enough coverage, you should also read and understand your entire policy. Know what your policy limits and exclusions are, so you avoid unpleasant surprises during the claim submission process.

Choosing Low Deductibles

The deductible is the amount of money you pay out of pocket before your insurance benefits take effect. A lower deductible leaves you with less financial obligation during a covered event. However, it also usually means you pay more in premiums for your insurance plan.

While it may not be wise to choose the highest possible deductible, you may be able to save money by choosing a slightly higher deductible for your business insurance. Doing so can lower your premiums without forcing you to pay a large sum of money in the event of a claim.

Business insurance can help you navigate business setbacks with more confidence. For help getting properly insured, and avoiding these common business insurance mistakes, contact SafeGuard Insurance Agency for a free quote today.

10 Important Questions To Ask Your Auto Insurance Agent

Posted on August 4, 2022 by alien - auto insurance

Close up of man's hands signing document

Auto insurance can protect you against financial loss in the event of an accident. In Texas, a certain amount of auto insurance is also a requirement for every driver. That makes finding a reliable insurance agent and appropriate coverage very important for most Texas adults. Before you settle on the first agent, and the first policy you can find, ask these 10 auto insurance questions of your agent to make sure you are getting coverage that meets your requirements and fits with your budget.

How much coverage do I need?

In Texas, you must have a minimum amount of liability coverage to comply with state law. This coverage, referred to as 30/60/25 coverage, includes the following:

$30,000 of coverage per person for injuries
$60,000 total coverage per accident for accident-related injuries
$25,000 of property damage coverage

However, you may need additional insurance coverage depending upon your individual needs. Serious accidents can quickly result in claims that far exceed Texas’ minimum insurance requirements. Uninsured or under insured drivers can leave you without the resources to pay for accident damages. You may want personal injury insurance to protect you in the event that you are injured in an accident.

Your insurance agent can walk you through your coverage options, help you to understand their importance, and advise you on which choices are best suited to your needs and financial circumstances.

Are other drivers covered under my insurance?

When obtaining auto insurance, it is important to understand exactly what your policy covers, so you can make sure you have the appropriate coverage for your needs. One of the most important questions to ask your insurance agent regarding your coverage is who the policy covers.

For example, if you purchase an insurance policy that only covers you as the driver, you may not be covered if your son, daughter, friend, or partner was the one driving during an accident. Usually, you will need to add anyone who will be regularly driving your car to your policy for an additional fee.

Does my insurance policy cover rental cars, towing, or roadside assistance?

Another important aspect of coverage that you should ask about when obtaining auto insurance is whether your policy covers rental cars, towing, or roadside assistance in the case of an accident or breakdown. This policy feature can save you a significant amount of money by covering some or all of the costs of these services.

If you do choose to have them as part of your policy, ask your insurance agent whether they include the following:

Daily limits on the covered cost of the rental car
24/7 service
Time or financial limits on roadside assistance
Towing limits (e.g. Do they only tow a certain distance, to the nearest repair shop, etc.?)
Other limitations

What discounts are available?

An appropriate auto insurance for you will include premiums that fit within your budget. Sometimes, you can get discounts on your auto insurance premiums that make it easier to afford the coverage you require. Ask your insurance agent about any discounts that are available for you. These discounts may include the following:

Safety equipment discount (e.g. Discounts for safety features in your vehicle)
Good student discounts
Job discounts (e.g. Discounts for drivers who have jobs in certain low-risk fields)
Multi-car discounts
Homeownership discounts
Defensive driver discounts (For taking a defensive driver course)

Your insurance agent should be able to give you a complete list of available discounts, so you can use the ones that apply to you to get a premium that is as affordable as possible.

How will different deductibles impact my premium?

Your deductible is the amount of money you must pay out of pocket before receiving coverage from your auto insurance. For example, if your deductible is $500 and your damages are $3,000, you would pay $500 and your insurance company would pay the remaining $2,500.

Usually, the higher your deductible, the lower your premium will be. Ask your insurance agent to review your deductible options with you. You may choose to move forward with a higher deductible in order to get a lower premium, or you may choose to pay a slightly higher premium in order to have less of a financial responsibility in the event of an accident.

What are my premium payment options?

Another way to potentially lower the annual cost of your premium is to ask about premium payment options. Often, you will pay your auto premium monthly. However, paying less frequently can sometimes earn you a discount. You may save money paying quarterly or annually instead. Look into your options with your insurance agent in order to get the best premium payment setup for your circumstances.

What factors impact my premium?

Before committing to an insurance policy, it is important to understand what factors are affecting your premium. The amount and type of coverage you choose is one of the biggest influencers of your payments. However, there are a multitude of other factors that can also affect how much you pay for your auto insurance. Here are some of them:

Driving habits
Type and age of your car
Geographic location
Your demographics
Driving record
Credit score
Your job

Make inquiring about these factors one of your auto insurance questions to ensure you understand your premium and are receiving the best possible premium for your situation.

What is the claims process?

While you never want to be in an accident, you also want to know that your insurance company will be available to you if you need them. That is why one of your auto insurance questions should be about the claims process. Find out the following from your insurance agent:

How does the claims process work?
What are the steps to follow to submit a claim?
What are the time limits and deadlines related to filing a claim?
Can I submit a claim 24/7?

Ensuring a simple, straightforward claims process and 24/7 availability will help give you more confidence if you ever do need to use your auto insurance.

Do I need umbrella or gap insurance?

Umbrella insurance is insurance that provides financial protection in the event that your other auto insurance limits are exhausted. Gap insurance provides the money required to pay off your car loan if your car is totaled, and you owe more on your car loan than the car is worth. Your insurance agent can help you to decide if either of these policies will provide you with benefits that will make adding them to your coverage worth the additional expense.

These auto insurance questions can help you find insurance that meets your needs and your financial considerations. Trust SafeGuard Insurance Agency to work with you to meet your insurance requirements and provide you with greater confidence when you are out on the road.