Insurance and Financial Services. Your Financial Security Matters!

 Provides general answers to common questions. Because insurance laws vary throughout the United

States and coverage may not be available in some jurisdictions, the information provided may not

apply in all situations. Your policy language will govern any question of interpretation..

1 Why shouldn’t I buy the cheapest car insurance?

You may be surprised by what’s not covered by the cheapest insurance. Besides price,

 you should consider the level of personal service a company provides and the quality of

 assistance you receive in the event

of a claim. You should also think about an insurance company’s financial stability.

 Financial strength is a

good indication that the company will be there for you when you need it most.

2 Why do young men pay more than young women for car insurance?

Statistics show that young men have more accidents and claims. In recent years,

 however, claims for young

women are on the rise, so you may not iceless difference in rates.

3 Can I drop my collision coverage?

Before you drop collision coverage, it’s wise to discuss with your agents or company

 the value of your vehicle in the event of a claim. Consider how much risk you can

 afford to take, and how long you could go without a vehicle. If you have a loan on

 your vehicle, you need to check with your lending institution to see if you can drop

your collision coverage.

4 Whether my car is three years old or brand new, does my insurance buy me a 

 new car if it is wrecked beyond repair?

Normally, no. If the car is damaged beyond repair, most insurance companies

will only pay you the "market" value; however, our 100% repair/replacement

 coverage protects your newer vehicle for up to four model years.

5 Why do I need medical payments coverage on my car policy when I have

good health insurance?

Along with coverage for your medical expenses, medical payments provide coverage

 for people riding in your vehicle who are injured in an accident and may not have

adequate medical insurance. Your health

Insurance does not pay for your passengers.

6 Why do I need uninsured motorist or underinsured motorist coverage when

here’s a mandatory insurance law, and what does it cover?

Sadly, not everyone complies with mandatory insurance laws. This coverage

 generally pays for medical bills, other liabilities (e.g., loss of wages), and injuries

 for you and your passengers when the other driver is at fault and without adequate insurance.

7 The value of my vehicle goes down each year, so why does my insurance premium

 continue to increase?

Unfortunately, costs continue to rise for legal fees, medical expenses, and repairing

damage to vehicles. All consumers share in these costs.

8 Are others covered while driving my vehicle?

Yes. Generally, other licensed drivers are covered while driving your

vehicle with your permission.

9 If I purchase a new vehicle this weekend, am I covered?

Yes, most companies automatically cover your newly acquired or

additional vehicle if your

current carrier insures all of your vehicles.  after you acquire your new vehicle

(or before your next bill is due). It's advisable to

insure a newly acquired or additional vehicle immediately.

10 When should I buy road service coverage on my auto policy?

It is wise to purchase road service coverage when the manufacturer of your

 vehicle does not provide it. You may want to compare the manufacturer's coverage

with that offered on your policy so there are no surprises or coverage gaps. The

 following questions are more specific to individual policies. Although general guidelines

 are available on these questions, you will need to provide information to your agent in

order to get answers tailored to your unique situation.

11 When I rent a car, should I buy the rental agency’s insurance?

Generally, coverage from your own auto policy applies to the rental vehicle when driving

within the continental

. One area to examine closely is “loss of use.” “Loss of

use” means if you wreck a rental car, you may be charged for the revenue lost while the car

is being fixed for the damage you caused. Loss of use is not generally covered on your personal auto

 policy. It may be advisable to purchase the “loss of use” protection from the rental agency separatel

y, if possible. Read the contract carefully and ask the rental agent to explain it if you are unsure. If you don’t

purchase the insurance coverage offered by the rental company, an accident could result in an increase

 of your premiums.

12 I got a ticket recently. How will that affect my insurance premium?

In most cases, a single ticket will not affect your rates. However, if you receive a ticket

as a result of an accident in which you were at fault, it could raise your rates. One or more

 tickets could also affect your rates when you change coverage or switch to a new insurance company.

13 If I am in an accident, how will my rates be affected?

Generally, if you were considered at fault for this accident, your insurance

 company will most likely raise your premium.

14 What should I do if I have a claim?

First, take down the names, addresses and phone numbers of all other parties involved.

 Call the police. Additionally, ask for the insurance company information of other persons

 involved and do not discuss fault.

Then contact your company or financial representative.

15 What options do I have to keep my premiums low?

Several factors can help keep your premiums low. For example, you can adjust your

deductibles based on your willingness to assume some risk. You may also consider which

optional coverage’s you really need. 

16 What deductible should I carry on my home?

The higher the deductible you can afford to pay in the event of a loss, the lower

 your premiums will be.

17 What coverage should I consider that might not be included on a standard homeowner’s policy?

Items such as jewelry, furs, guns, coins and currency, collectibles and fine china are subject to

 specific limits of coverage on most standard homeowners policies. If you have any of these types

 of items that may have an appraised value higher than the specific limits, you can purchase the

 additional coverage you need for a few dollars more. You'll need to work directly with your

agent or insurer to get this done. You may need special documentation, which could include

 an appraisal. Optional sewer backup and sump pump coverage is also available from some insurers.

18 A storm knocked down my tree. Will insurance pay for the removal of the tree?

Normally, a home policy will cover the costs of removing the tree from a covered building;

some policies will also cover the cost to remove fallen trees in other situations.

19 How do I insure against flood?

Flood insurance is available to any property owner located in a community participating in the

 National Flood Insurance Program. It can be purchased from many property and casualty

 insurers. Contact your financial representative to see if your home qualifies for flood insurance.

20 My son is going away to college. Do I have coverage for his personal items?

Generally, yes. Most home policies provide an extension of coverage for these items.

21 If a visitor to my home is injured, how do I make sure my insurance pays for the medical bills?

Normally, it's automatically covered under your homeowner’s policy medical payments

 coverage regardless of who is at fault.

22 How much liability coverage should I have on my home and auto policies?

This is impossible to generalize; your personal and financial situation as well as your

 preferences are unique. This answer can only be determined by working with a financial

 representative who can help tailor solutions to your needs.

23 What percentage of my money should be in savings, investments and insurance? Why?

Generally, three to six months' salary should be immediately available in savings, 10 to 15

 percent of salary should be dedicated to long term savings and investments, and approximately

 2 to 5 percent of salary should be used to fund your life insurance program. These guidelines

 can help protect you from unexpected losses, help to provide a stable foundation for retirement,

 and protect your family if premature death occurs.

24 How much life insurance do I really need?

As a broad rule of thumb, seven to 10 times your annual salary is recommended. This factor

 takes into account mortgage loans, expenses at death, short-term debt (such as car loans and

 credit cards), ongoing cash flow for dependents, and possible retirement funding for a surviving spouse.

25 What guideline should I use in selecting between term insurance and whole

(Permanent) life insurance?

When your protection needs are high and your budget for covering these needs is low, term

 insurance is an excellent source. However, term insurance premiums typically are level for

 only 10, 20 and 30 years–not for life–with no buildup of cash value or equity. Whole life

insurance is a good choice when your budget allows this type of protection for the following

reasons: 𐂋 Guaranteed level premiums 𐂋 Guaranteed Insurability Options for future life

 insurance purchases 𐂋 Buildup of cash value and equity 𐂋 Collateral for borrowing money

 against cash values (however, loans will decrease the cash value and face amount of the

 policy) Many times, people select a combination of both term and whole

 life depending on how much they can afford.

26 Why would I want to purchase whole life insurance when I can get a

much better return in the stock market?

You wouldn’t! Life insurance isn’t an investment tool. Its primary mission is

 to provide guaranteed level premium life insurance protection for your family.

27 Do both spouses need life insurance?

Generally, yes, because whether you have single or dual incomes, the death of one

spouse will usually impact necessary cash flow.

28 Should I have personal life insurance when I’m already covered by my group plan?

Generally, yes. In the future you may lose your job, change jobs or become disabled.

Additionally, you risk the possibility of becoming uninsurable at a later date.

29 Why would I need to purchase life insurance when I already have mortgage

 insurance (PMI) through my bank?

You might not have what you think you have. Bank mortgage insurance (PMI)

protects the lender from default of the loan. In the event of death, life insurance

 allows the surviving family members the option to pay off the loan or keep the

 death benefit for other needs.

30 Why should I have life insurance on my children?

You can provide your children with some guarantees that allow them to purchase

 future life insurance without evidence of insurability. It's a good idea to purchase

 life insurance on children when their insurability is at its highest level. Life insurance

 premiums are lowest for children.

31  If I have a Disability come policy, what percentage of my salary would I receive if I were injured on the job?  

                Call me 

33 Do I really need life insurance after I retire? How long should I keep it?

 If you came this far you should call me or send me a e-mail to set up a meeting

 bekimisone@yahoo.com

bekim@insuranceandfinancial.org

1105 Kilbride Dr Racine, WI 53402

P.O. BOX 370312 Milwaukee, WI 53237  

(cell) 262-902-2877

(Office) 414-502-0972

 (Fax)262-752-0397