What is Life Insurance?

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Purchasing life insurance can be confusing and may not seem worth the hassle and price you pay.  However, most people overestimate the price of life insurance by 2 to 3 times what it will actually cost you.  But the question always remains, “What type of life insurance if right for me?”  Below is a brief description on the 3 most commons types of life insurance that will hopefully give you an introduction into the life-long protection life insurance provides.

Life insurance is a contract between an insurance company and you where upon death they are obligated to provide a payment to your beneficiary in the form in a tax-free lump-sum for the amount detailed by the plan you purchase.

There are many different types of life insurance but there are three mains ones everyone should be familiar with:

  • Term Life Insurance

  • Universal Life Insurance

  • Whole Life Insurance

Term Life Insurance

This plan is designed to provide financial protection over a set period.  It tends to be less expensive and the premium payments stays the same over the course of the plan whether it’s 10 years, 20 years, etc.  The benefit is in that the case of loss of income, financial burdens, etc., a term life plan can help save money while still providing protection.

Universal Life Insurance

A type of long-term, permanent life insurance, a universal life insurance plan is designed to provide last indefinitely and is open to a change in premium rates and coverage amount.  However, due to its lifetime coverage it carries a higher premium price.

Whole Life Insurance

Another type of permanent life insurance, whole life insurance differs from universal because it provides a consistent premium to be met and is protection for the individual until time of death or the age of 100 when the lump-sum payment is paid directly as an endowment.

There are so many different types of life insurance that it is easy to get confused and become unsure of which type is right for you.  If you ever have questions and need help making the right decision on any personal insurance needs, give us a call at 614-463-0455.

Insurance Purchasing Tips for Millennials

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Insurance Purchasing Tips for Millennials

You have hit the age where everything has started to pile up all at once. Student loans, rent, car payment, insurance, insurance, insurance. Don’t fret because if you plan smartly and understand the benefits of buying insurance. A good life insurance plan can provide you with protection for the inevitable and provide a long term financial security safety net.

The problem is that the current generation with buying power “millennials” are considered the least insured generation. (According to a survey from the Princeton Survey Research Associates International)

This is due to many factors but most of them lead back to “it’s too expensive.” “I’m healthy, I don’t need it or will ever use it.” Insurance generally costs a lot less than what you are thinking, and renter’s insurance costs alone get overestimated by millennials but more than five times the actual costs.

There are so many things insurance covers that you will never be expecting that it just makes too much sense not to have it. Break-ins, car accidents, etc. You can be prepared for what you can’t predict!

Need help on the best practices for buying insurance? Here are five tips that will start you on a path to long-term protection.

Smart shopping.  While shopping for insurance it is smart to make adequate coverage the top priority. Determine the type and amount of coverage you will need, and what your budget is. (We can always help and are just a phone call away at 614-863-0455) Keep in mind, buying the lowest priced insurance is not always the fiscally smart thing to do. Think of a car accident, you saved $100 per year on your insurance when you purchased it and opted for a $1000 deductible over a $500 one. You get into an accident, your at fault or fault can't be determined and you need to get your car repaired. Would you rather be paying $500 or $1000 to get you car fixed? You must think in terms of what you can afford now for coverage vs. what you can afford if an accident happens.

Discounts.  Once you narrow down what your budget is and how much coverage you need, you can look around for any discounts you may be eligible for. Carriers often offer discounts for paying your policy in full, having a history of safe driving, good grades in school, and bundling your policies together under one carrier. Always ask and start saving.

Fill in the gaps.  Most policies will cover all the basics and while buying online on your own can be quick, easy, and inexpensive, you may need extra coverage to meet your needs. If you have expensive items in your home that would be hard/impossible to replace in case of loss, you can add extra coverage to cover those items.

You aren’t too young to purchase life insurance.  Life insurance is essential for everyone despite how much you think your worth is. For a millennial, it’s cheap to get a good policy due to being younger and healthier. If you have kids and you, or your partner pass, a life insurance policy can help cover funeral arrangements in the short term as well as expensive long-term costs such as child care, and even help pay for your kids college expenses someday. Long-term disability coverage also should be considered in the case of becoming disabled and not being able to work.

Work with independent agents like us.  (See: What is an Independent Insurance Agent) Independent insurance agents are an amazing resource, especially for first time purchasers. We work with numerous carriers, so we can do the shopping for you with multiple companies to ensure you get the best price with the right amount of coverage and not miss any details on what you would need. We have the experience to be able to provide clear understanding to you about the coverage you need, the discounts you are eligible for, and any changes you should be aware of going forward when you need to add or remove coverage.

Insurance can be one of the toughest things to consider and when your young it hard to spend the money and there are many reasons you will tell yourself to not purchase it. Ditch the financial short-sighted benefits of opting against insurance and think about the long-term benefits and protection it provides and be thankful there are places (Like the Arnold Insurance Agency) here to help you navigate and work with you to start provided stability for your future. Lean more about personal insurance by visiting us at our website, facebook, twitter, or give us a call 614-863-0455.

What is Umbrella Insurance?

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Umbrella insurance

Also known as personal excess liability covers gives you extra protection against lawsuits and claims made against you that exceed what your normal policy covers.

For example, say you are in an accident and you must pay $500,000 in bodily injuries to the other party but your bodily injury limit only covers $200,000.  Where does the other $300,000 you owe come from?  Well this in effect is the beauty of having an umbrella insurance policy because it will cover the remaining $300k. 

So what does Umbrella Insurance cover?

What's covered under umbrella insurance:

  • Bodily injury

  • Personal injury

  • Property damage

  • Landlord liability

What typically isn't covered under umbrella:

  • Personal belongings

  • What's Covered

  • Intentional or criminal acts or omissions

  • Written or oral contracts

Who should have it?

Generally, anyone who has 1 million or more in net worth should always have an umbrella policy because the minimum amount sold on a policy is $1 million. However, it might make sense for someone who falls below that number to purchase it.

Arnold Insurance Agency can answer any questions about personal umbrella policies, so you can decide whether having additional liability coverage makes sense for you. Give us a call today at 614-863-0455 or visit www.arnoldinsuranceagency.com

 

What is an Independent Insurance Agent?

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What is an independent insurance agent?

The first thing to consider is that they are not just an "salesperson" trying to sell you an expensive policy but more of a producer who represents the insurance companies and works with you to guarantee that you are getting the best available option in terms of coverage at the right price. Think of them as a personal shopper who goes out to the store and picks out the groceries (policies and coverage's) that fits your budget and your needs. 

They are trained and licensed experts:

Our agent have years of experience working to understand the complexities of the insurance industry so that they are able to explain to you what you are purchasing is easy to understand terms. This knowledge also gives them to ability to know exactly what to look for in getting you the best policy that fits your needs. 

They create a one-stop shop:

By now we know that our agents can shop dozens of policies across dozens of companies all at once for you to guarantee you are getting the best option available, but did you know they can take care of all your insurance needs all at once as well? If you own a small business, you can secure commercial insurance coverage from Arnold Insurance Agency along with insuring your car and home too!

They are with you every step of the way: 

While you can buy insurance online yourself, too many people either buy too much coverage or not enough while paying way too much. Having an agent walk you through a tailored policy ensures that you have the right coverage and do the work for you in finding the right price. When the unexpected happens and you need to file a claim or need to change your coverage, your agent can be your advocate, working with the insurance company on your behalf.

Independent insurance agents save you time, save you money and build a relationship with you that can last a life time to ensure you always have peace of mind while buying the best policies. Arnold Insurances goal is to protect you and your family from those unexpected events by finding the right coverage at an affordable rate. Give us a call today 614-863-0455!