Common Myths about Life Insurance

There are a lot of confusion when it comes to life insurance. Most people are unsure when and what kind of life insurance to get for the most part. Some procrastinate thinking they have all the time in the world and the reality of death does not sink in their minds. Lack of knowledge about it leads to wrong and sometimes dangerous information that many believes. Here are some common myths about life insurance.

1. It is okay to depend on your life insurance through your job. There's no need to get a personal life insurance policy.

Life insurance through work is a great benefit but once you leave the company, your coverage ends too. It is wiser to get a personal life insurance especially while you're still young and in good health. There are several good options out there that are affordable and will cover your needs.

2. Having health issues disqualifies me from getting a life insurance.

There are companies that still covers people with health problems. Just be informed that they tend to be more expensive and coverage may be lower, but it is possible.

3. It is too expensive.

A research conducted by LIMRA shows that 25% of Americans said they need more life insurance, but only 10% planned to purchase it. A big reason for this is that most people think that getting a life insurance can be too expensive. If you start young, the chances of getting it in a more affordable cost are higher but that being said, older people can get decent prices that won't break the bank with good coverage. The best way to achieve this is to shop different companies and talk to an agent.

4. You don't need life insurance if you are single, or married with no children.

Having a life insurance can help cover your debts and also provide for your spouse or other loved ones even if you don't have children. Your beneficiaries whether it's your niece, nephew or sibling can help provide financially to them.

5. If an unlikely event that you passed away in a different country, life insurance does not cover you.

Most policies will pay your beneficiaries if unfortunately you passed away in a foreign country. Just be aware that some insurance policies exclude certain countries that are currently on the U.S Department of State Current Travel Warnings. Call your agent to find out prior leaving the country.

Be more informed about life insurance. Don't delay. Find an agent and ask about the different life insurance policies that will be beneficial to your needs.

How to Pick an Insurance Agent

How important is it to pick the right insurance agent? Very important! If your insurance need is simple, say you just need basic car insurance, calling a toll free number or going online is enough. But if you have different insurance needs, then generally, it is better to consider finding an insurance agent to advise and help you find the right coverage.

Looking for an insurance agent should not be a painful experience. Here are some ways or tips into finding a good insurance agent.

·         Referrals or Personal Recommendations

The best way is to ask people you know: family members, friends and colleagues. Asking is always better than relying on advertisement that you read online or through phone directories. Most people can direct you to the right person if they had a positive experience in dealing with the insurance agent. If it’s from a trusted source, there’s some guarantee that the agent gives quality service to his/her clients.

·         Reviews/ Testimonials

Review and social media sites like Yelp, Facebook, LinkedIn and many more can help you point to the right direction when choosing an insurance agent. Other people’s testimonials can give you a good idea what kind of services are being offered and most importantly, if the person has a good reputation.

·         Personalized Advice

When you talk to an insurance agent representative, he/she should be very familiar with their services and can help you find the best coverage for your specific needs and can also help you minimize your cost. A good agent will advise you on how to adjust your policies to help you save money and get more benefits on your coverage.

·         Trust Your Instinct

Don’t get scammed. Do a thorough research. Some people poses as insurance agents who offer and sells policies but are not really certified. Always ask good questions and check if they are licensed to help you avoid being scammed.

These are just some helpful tips to help you find the right insurance agent. Always best practice is to do your research. Knowledge is power. The more you know and ask the right questions, the better chances you will find the agent and also insurance company that will suit your needs.

Earthquakes: Is Your Home Prepared for it?

Earthquake is nothing new in California. As Californians, we experience earthquake more than any other states in the United States, and perhaps the world. The insurance coverage for natural disasters has been increasing yearly for its increase in activity throughout California. Each year, California has about 10,000 earthquakes in which most cannot be felt.  However, disasters do happen and it is best to be covered beforehand. In 1994, Northridge earthquake was the deadliest natural disaster that occurred in the United States, which required the insurance companies to offer earthquake coverage when issuing insurance for residential homes.

AllState offers different types of insurance for any natural disasters such as homeowners, mobile home, condo, and renters. Most homes do not cover earthquake and other natural disasters. These insurances tend to be fairly flexible, depending on the policies. One can easily reduce the risk of earthquake damage by getting specific insurance for your needs. As the chances of natural disaster occurring is slim, the cost of insurance is low.

Most residential insurances do not cover earthquake, or any other damage from natural disasters. An additional CEA (California Earthquake Authority) coverage must be bought to insure your residence. The CEA policy requires the homeowners to set deductibles, the amount in which you have to cover without the help from insurance companies. Deductibles are usually set in between 10-15% of the policy limit, or the amount you household is insured. If the personal belongings and possessions are lost due to fire, 50-70% will be covered. There is some exclusion when it comes to household furniture and belongings such as jewelries, fur coats or sofas. On average, the annual cost of coverage for $500,000 policy is around $7,500.

In the long run, having covered by your insurance company is worthwhile, since the cost is low and natural disaster is unavoidable. In fact, there is a 99% chance of 6.7+ earthquake will hit California within the next 30 years. If you want to play it safe, investing in safety for the future is always good to have as a peace of mind.

Consider Buying Life Insurance For Your Children

Whether you think your children might need life insurance or not is up to you but consider this: a policy on an individual can give that person a lifetime of benefits. And who doesn’t want benefits, especially ones that lasts a life time?

Whether you are saving for your children’s college fund or considering an expensive family vacation, life insurance might be just what you’re looking for. It definitely comes in handy for the future if something should happen to you.

Buying life insurance now can insure your children’s ability to buy more life insurance in the future at rates based on their health now. We all know those medical bills can cost us a fortune. Don’t take the risk of letting your children pay more for life insurance when medical bills are involve in the future. If purchased now when they are young, your children can buy life insurance at a lower costs to them even if they were to get certain health diseases such as diabetes. Plus, it requires less paperwork at a younger age.

Money just might feel like it’s growing on trees! Permanent life insurance policy can accumulate over time and are tax free! Consider buying life insurance at a younger age because the amount initially invested in these policies is far less. In addition, benefits are far greater than if you waited to buy life insurance when you’re 30, 40 or 50.

Further yet, have the security for your children and yourself knowing that when something shall happen to you, Allstate Insurance has your back. You’ll be relieved to know that you’re in good hands.

Allstate has a wide range of life insurance solutions, so you can choose a policy that works for you and your family. Find out if term life, universal life, or whole life insurance suits your needs and your budget. For more information or if you have question refer to an Allstate agent near you.