The Life Insurance Buying Process

Another Great TEDMUS TIP: 12/4/2013

WHAT ARE THE LIFE INSURANCE BUYING STEPS?

When you buy life insurance, there are several steps to go through:

1. CHOOSE THE LIFE PRODUCT THAT IS BEST FOR YOU AND/OR YOUR FAMILY.  Perhaps it’s whole life or term - or a combination of the two. Your budget, age, health, and death benefit needs should all be taken into consideration.  Your agent can/should help you with this. 

2. COMPLETING A LIFE INSURANCE APPLICATION. Typical life insurance applications can be lengthy - some can be up to 30 pages in length and have confusing questions. Talk with your agent if you get confused here. Once the application is complete, send it back to your agent.

3. PARAMEDICAL EXAM. Depending on your death benefit, you may have to go through a paramedical exam.  Blood, urine, and vitals are typically ordered with life insurance. Other additional medical screening tests may be ordered if you have a larger death benefit need.

4. UNDERWRITING. Most of the time, a life underwriter will go through your submission to see where your ‘rank’ in terms of being a ‘risk’, i.e. Preferred Best, Preferred, Standard, Non-standard, etc. Depending on the complexity of the application, this process can take a couple of weeks to complete.  Your medical records may be reviewed and requested in this process.  Your agent should be in communication with you during the process.

5. DECISION.  Once the underwriter responds, you can decide to purchase or not purchase the life insurance.

6. REVIEW AND REEXAMINE YOUR NEEDS PERIODICALLY.  It’s always smart to review your life insurance needs on a future basis. The market is cyclical, just like anything else. Again, your agent should consult and help you in this process.

For more great insurance tips, check out our website at www.tedmusinsurance.com or call us at 800 903 5752.

Recently I was given the opportunity to be published in the November 2013 American Agent & Broker insurance magazine. Take a look at the article; here at our website: http://www.tedmusinsurance.com/site_documents/36795_Tedmus_Broker_Article.pdf

TEDMUS TIP:

Hi everyone, as most of you know already, we had a large windstorm a couple of days ago that caused a lot of damage in the Bay Area. Many people reported experiencing trees and debris fall on their property and neighbor’s property.  As winter will be arriving soon, make sure to trim and remove any potential falling trees that may be a falling or trip hazard(s). Proper maintenance and upkeep will make sure wind and rain will be controlled and you and your home stay safe.  

If you think a tree might be on its way ‘out’, it may be best to remove the tree rather than having it fall down in a windstorm and then having to pay to remove the tree and/or report the tree as a homeowners claim – not to mention the liability.

Depending on the size of the tree, trimming and/or removing a tree may cost a couple hundred dollars but in an accident you may go through that yourself with your homeowners deductible – not to mention having a claim on your record for three to five years.

Every scenario is a little different when it comes to claims but always check in with your agent for recommendations on what best to do here.

For other great tips and advice, visit www.TedmusInsurance.com or call us at (800) 903 5752.

Auto Accident Scene Tip

Another TEDMUS Tip: Auto accident tips

When you're involved in an auto accident, try and get the names of witnesses and/or a police report - you'll have a much easier time proving your version of the accident. Write everything down, and take pictures if you have a cell phone camera. It not only helps your case, but also protects you from the other driver changing his story and blaming you. (Sadly, this happens a lot!) Call the police if anyone is injured, the property damage is serious, or there is any dispute over fault.

For more great tips, visit www.TEDMUSINSURANCE.com, or give us a call at 800 903 5752.

Always carry the same liability limits on your insurance policies

When you buy automobile, Homeowners, boat, snowmobile, or any other liability policy, always buy the same liability insurance limit. No exceptions.

People make this mistake a lot, especially when they have their insurance coverage split between different agents and/or insurance companies. You can reduce the changes of this happening by having as much of your liability insurance as possible with the same agent.

Whenever you cause an injury or property damage, you want the same amount of money available to you for legal costs and judgments no matter what the cause of the accident. In the same way that you wouldn't buy more liability insurance for claims that occur on Monday, Tuesday, and Wednesday than the rest of the week, don't buy different liability limits for different policies.

If you have an umbrella policy, make sure that all the underlying liability insurance limits meet the minimum requirements of the umbrella policy. If they don't, you'll owe the difference.

For more great helpful tips, visit TEDMUS INSURANCE SERVICES online, or call us at 1 (800) 903 5752.

 

What is subrogation and why should I care about this?

TEDMUS TIP #10: What is subrogation and why should I know this term?

You're in a wreck. Another driver caused the accident, but you choose to have your insurance, under Collision coverage, pay for the damage to your vehicle. Your legal rights to seek reimbursement from the other driver are transferred to your insurance company. This transfer of rights is known as subrogation. Your company gets compensated by the other driver's company.   When your insurance company subrogates against the other driver, it usually attempts to get your deductible reimbursed too, saving you a lot of hassle. For various reasons, it often collects less than 100 percent of the amount that it spent fixing your car. Whatever percentage it collects, you get the same percentage of your deductible back. The bad news is that the collection process often takes several months or more. So when you spend your deductible, don't look for the cash to come back to you anytime soon.    With that in mind though, if you do have collision coverage, always use the coverage and pay your deductible unless the other driver is 100 percent at-fault. After subrogation, your net cost will always be less than collecting directly from the other driver's insurance. Plus, your claim will be handled much faster and smoother.   Of course, if you don't have collision coverage or your damage is less than your deductible, you have no choice but to collect from the other driver's insurance company.   For more great helpful tips, visit TEDMUS INSURANCE SERVICES online, or call us at 1 (800) 903 5752.

Optional Equipment Breakdown Endorsement for Home Insurance Policies: (Note only for Safeco Customers)

Heating systems, air conditioners, electronic equipment and major appliances are all important to everyday comfort and convenience, but it’s easy for consumers to take them for granted. When one of these items breaks down, repairs can be expensive and time consuming, and in most cases the repairs aren’t covered by insurance. Safeco Insurance offers peace of mind for their customers and at $2.00 per month, it's a superior value!

So what's covered?

Damage due to the breakdown of certain household equipment is covered when the cause is sudden, direct and accidental. Examples include parts failure or electrical surge. Covered equipment includes but is not limited to appliances, heating and cooling systems, swimming pool mechanical equipment, water heaters, well pumps, home security systems, electrical systems, computers and home electronics.

What's not covered?

Overall wear and tear is specifically excluded in the policy and is not covered. Losses must be sudden, direct and accidental.

Here are some examples;

The furnace is no longer producing hot air

- Covered: The blower motor has ceased functioning due to a bearing failure

- Not Covered (due to wear and tear): The heating element has corroded over time and is in need of replacement

Air conditioning unit is not maintaining temperature

-Covered: The connecting rod in the motor has broken

-Not Covered: due to wear and tear): It's condenser coils have deteriorated and developed pinhole leaks leading to a loss of refrigerant

Find more great tips at TedmusInsurance.com or call us at (800) 903 5752.

Collision Deductible Waiver coverage? Should I buy it

Should I buy the Collision Deductible Waiver (CDW) that car rental companies offer?

Many of our clients ask us this when renting cars in the United States. It is an important question and the long-story short is…it varies from person to person.

YET, there are two situations where it makes GOOD sense to buy the coverage.

1) Protecting your record and your auto insurance rates. One disadvantage of relying on your personal auto-insurance policy to pay for damage to a rental car is that if you file a claim for which you are responsible, your rates will usually increase from 20 to 25 percent for three years. This is NOT so if you purchase coverage from the car rental agency. If you have one or two points already on your record than why risk getting another point? It will only cause you to have higher premiums and less market availability for your auto insurance. Protect yourself and protect your record from further damage and put the claim on the car-rental agency.

2) When renting the car for business use. When you are renting for business purposes and your employer reimburses your expenses why not get the CDW? Makes sense! Because you’re using the rental care for your employers benefit, it seems reasonable that your  employer should pay for the insurance and any claim costs.

For more helpful tips, visit www.tedmusinsurance.com or call us at 1 (800) 903 5752.

General Tips for Reducing Automobile Losses

·         Drive within the speed limit. People who speed have a lot more accidents. Also, don’t drive too slow, you’ll be surprised how many slow drivers get into accidents! Police give tickets for this as well! Be aware of your surroundings at all times, follow the flow of traffic and be cautious of other drivers not paying attention around you.

 

·         Take a defensive driving course. Not only do some auto insurance companies provide discounts but you will be a better driver and have less chances of being involved in an accident.

 

·         If you have teenage drivers, give them many more hours of behind the wheel practice than they normally would take at driver education classes. 

 

·         Do NOT drink and drive. Use a designated driver at all times or call a taxi. Be safe and don’t push it.

 

·         Always wear a seatbelt, and insist that your passengers do too.

 

·         Equip your car with all the optional safety equipment – antilock brakes, air bags, safety tires, back up cameras, and even front sensors. Some of these safety features result in premium credits as well.

 

·         Get into the habit of locking your car. You’ll prevent more thefts than you can imagine this way, even if you’re going into the gas station for a candy bar.

Find more great tips at www.tedmusinsurance.com

UNDERSTANDING HOW INSURANCE COMPANIES PRICE THEIR POLICIES

Insurance is nothing more than a mechanism allowing people in similar circumstances to share their losses. In any given year, people who have accidents collect from those who don't. The insurance company is just the collection basket.

When you buy car insurance, you get grouped, and share losses with, people similar to you in age, location, use of car, and driving record (tickets and at-fault accidents). When any of these factors change, you move to, and share losses with, a different group of drivers. (Remember when you turned 25 and your rates dropped 30 percent? On that day, you weren't a better driver than the day before, but you transferred to a group of more experienced drivers who have fewer accidents and lower premiums).

Similar changes in your insurance rate happen when you move from one city to another, one zip code to another, or change the use of your cars, or when you get tickets or are in an at-fault accident. You simply change groups. When you hit a post and file a claim, you change groups - just like when you get a couple of speeding tickets.

Before you file a small claim with your insurance company, find out first how much more you'll pay over the next few years in insurance premiums. If it's greater than the claim value, you're probably better off paying the claim yourself.

Your agent, if you have one, should always warn you of this pitfall when you report a small claim, it’s always best to communicate with your agent in these situations. There have been many times when homeowners with captive companies (AAA, Geico, Progressive) didn't have agents to discuss claims with and could have prevented major longterm increases in premium and cancellation notices.

Find out more helpful tips like this at www.TEDMUSINSURANCE.com