Understanding Life Insurance

Whether you are new to purchasing life insurance, confused by your options, or just not a fan of the topic, a life insurance policy is deserving of consideration in every household, and an absolute must for some. When armed with the proper information, the decision-making process becomes a little easier and you can rest easy knowing you’ve made the right choice for you and your family.

 

Why Life Insurance?

 

The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, consider your financial situation and the standard of living you want to maintain for your dependants or survivors. 

 

Types of Life Insurance

 

• Term: The simplest, least expensive, and the most widely applicable. With term life, a life insurance company bases the policy premium on the probability that the insured will die within a stated term - typically 10, 20, or 30 years. The premiums are guaranteed for the length of the term, after which you can choose to continue coverage, or decide to let it lapse. 

 

• Universal: A type of flexible permanent life insurance offering the low-cost protection of term life insurance as well as a savings element (like whole life insurance), which is invested to provide a cash value build-up. The death benefit savings component and premiums can be reviewed and altered as a policyholder's circumstances change. Unlike whole life insurance, universal life insurance allows the policyholder to use the interest from his accumulated savings to help pay premiums over time.

 

• Whole: A contract with premiums that includes insurance and investment components. The insurance component pays a predetermined amount when the insured individual dies. The investment component builds an accumulated cash value the insured individual can borrow against or withdraw. 

 

Cost Associated with Life Insurance 

 

Most people are pleasantly surprised when they see the relatively low premiums of a simple term policy. Of course, a smoker or someone with health problems will likely pay more (or simply be declined for coverage).

 

Talking about life insurance isn’t always a popular discussion because most people don’t like talking about death. But open and honest discussions about planning for an unexpected death can be surprisingly life-giving. And chances are purchasing life insurance is still an important part of your long-term and comprehensive financial plan.

 

If you live in the Covington, Abita, Mandeville, St Tammany or surrounding areas and want to learn more about car, homeowners, and life insurance, visit the  website of Melissa Baxter-Penzato, Allstate Insurance Agent, or call (985) 875-7707. 

Sources:

https://www.fidelity.com/life-insurance-planning/what-is-life-insurance

http://www.iii.org/article/what-are-principal-types-life-insurance

https://resources.ehealthinsurance.com/affordable-care-act/life-insurance-basics

Keeping Safe from the Storm – Hurricane Preparedness

Summer and fall are prime months for stormy weather in the south. In addition to being rainy, the six-month hurricane season runs from June until November. Having an appropriate plan in case of severe weather is very important when you live in tropical areas such as Houston, Florida and the Gulf Coast States of Mississippi, Alabama and Louisiana.

 

• Secure your roof – Use hurricane straps or clips to strap down your roof. These fasten to the frame of the roof to help reduce damage from high winds.
• Bolt exterior doors – By installing head and foot bolts to all doors that enter your home, you will provide additional stability and protection from the damaging winds that typically accompany hurricanes and tropical storms.
• Create shutters for your windows – Custom-made storm shutters can be purchased to fit each of your home’s windows, patio door or other expanses of glass. Additionally, a skilled individual can also build them using exterior or marine grade plywood.  
• Fill in the gaps – Examine your windows, doors, and siding for gaps and cracks in the caulking. Fill these with new caulk promptly. This will help to keep driving rain from penetrating the area causing excess moisture to build up.
• Secure all exterior structures – Carports, porches, canopies and outbuildings such as sheds and pool houses can sustain severe damage from wind and rain. Make sure these buildings and additions are firmly secured.  
• Test pumps and drains – In addition to high winds, tropical storms and hurricanes also produce a great deal of rain. Be sure your sump pump and drains are working properly to help alleviate any standing water in your home. If you fear an electrical outage, consider purchasing a backup generator. 
• Trim the shrubs – Branches and limbs can create a lot of damage during a hurricane. Keep landscaping trimmed and remove dead or overgrown branches.
• Know your insurance coverage – Determine if you need any additional coverage on your existing insurance policy to cover flooding or wind damage. And, take careful inventory of the belongings in your home and store in a safe place so you can refer back to it if you suffer any property loss.

 

Allstate Insurance Agent, Melissa Baxter-Penzato, has the coverage you need to protect your home from natural disasters such as hurricanes. Contact her today at 985-875-7707 for information on this type of home insurance coverage.