Debunking Insurance Myths - Series Final

Insurance is about managing risk. Insurance companies use sophisticated algorithms to determine how risky each of us is, and they price policies accordingly. That's why smokers pay more for health insurance and bad drivers pay more for car insurance.

Still, insurance can be confusing and aggressive sales agents only make the problem worse. To help clear things up, we're debunking some of the most pervasive myths about different types of insurance.

Life Insurance

Myth: Everybody needs life insurance.

If you have dependents or shared debts with anyone else, then you absolutely need to have life insurance. But if you're single with no outstanding debt, life insurance is optional. The only benefit of having it is to cover the cost of medical or funeral expenses that may come up. But if you have sufficient assets to cover those costs, than life insurance isn't necessary.

 

FACT:

When the beneficiary receives the death benefit from a life insurance policy, the money is free from income tax. The money that is accumulating in the cash value account is also tax free. If you decide to borrow against your policy by receiving a policy loan, the money will not be subject to taxation. However, your policy proceeds can bump your estate value above the federal threshold and trigger a tremendous federal tax hit--as much as 55 percent. The easiest way to avoid estate taxes on your policy is to assign it to another owner, such as the beneficiary, who isn't named to your estate. As long as it is outside your estate at the time of your death, the policy is safe.
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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.





 

Debunking Insurance Myths - Series Part 3

Insurance is about managing risk. Insurance companies use sophisticated algorithms to determine how risky each of us is, and they price policies accordingly. That's why smokers pay more for health insurance and bad drivers pay more for car insurance.

Still, insurance can be confusing and aggressive sales agents only make the problem worse. To help clear things up, we're debunking some of the most pervasive myths about different types of insurance.

 

Homeowner's Insurance

Myth: If something happens to your home, you'll be given the money to replace your items.

Many people mistakenly believe their homeowner's insurance will pay for them to replace an item if it's damaged or stolen, but that's not usually how it works. If you lose an old computer most policies won't foot the bill for a brand new one. All they'll give you is the amount of cash your old one was worth when you lost it. Policies do exist that cover full replacement of items, but you'll pay a higher monthly premium for those.

FACT: According to the National Association of Insurance Commissioners (NAIC), homeowners insurance covers the structure and contents of your house in case of damage. It is also required by lenders as long as you have a mortgage.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.

 

 

 

 

 

 

 

 

 

Debunking Insurance Myths - Series Part 2

Insurance is about managing risk.  Insurance companies use sophisticated algorithms to determine how risky each of us is, and they price policies accordingly. That's why smokers pay more for health insurance and bad drivers pay more for car insurance.

Still, insurance can be confusing and aggressive sales agents only make the problem worse. To help clear things up, we're debunking some of the most pervasive myths about different types of insurance.

Renter's Insurance

Myth: Your landlord's insurance will cover your stuff if something happens to the building.

Your landlord has building insurance, but the coverage does not extend to replacing your stuff. That's your responsibility. Don't expect someone else to pick up the tab if your property is ruined or stolen. That's what renter's insurance is for.

Important Fact : Coverage

Renters insurance can provide coverage for items and incidents inside and outside of an apartment or rental house. Renters are usually aware that belongings stolen from their homes could be covered by renters insurance, but fewer may be aware that items stolen from their vehicles could be covered as well. A renter whose child floods an apartment bathroom by leaving water running in a bathtub would likely end up paying out of pocket for the damage caused by the incident without renters insurance. That's because landlords' insurance policies usually cover damage to their buildings if the damage isn't caused by a tenant.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debunking Insurance Myths - Series Part 1

Insurance is about managing risk. Insurance companies use sophisticated algorithms to determine how risky each of us is, and they price policies accordingly. That's why smokers pay more for health insurance and bad drivers pay more for car insurance.

Still, insurance can be confusing and aggressive sales agents only make the problem worse. To help clear things up, we're debunking some of the most pervasive myths about different types of insurance.

Auto Insurance

Myth: The color of the car your drive can impact your car insurance premium.

Plenty of people believe that red cars are more expensive to insure, but this is simply not true. Other factors do matter, like how old the car is and whether or not it has added safety features, but color doesn't matter. If a red car will make you happy, go ahead and buy it.

Fun Fact:

Car Insurance is as old as cars

Today, auto insurance is mandatory in countries around the world, but it began as a specialty product for early auto enthusiasts. In 1895, an English insurance agent wrote out the first automobile liability insurance policy, and the first policy in the United States appeared three years later. Massachusetts was the first state to require all drivers to have insurance, starting in 1927.

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This blog is brought to you by SERVPRO^® of Great Neck/Port Washington, a leading provider of fire and water cleanup, mold mitigation, remediation and restoration services. For more information and a full list of our services, please visit us online at www.servproofgreatneck.com or contact us at 516-767-9600.