Top 6 Reasons to Have Renter’s Insurance

Every home or apartment renter needs a renter’s insurance policy to cover their belongings. Landlords take out property insurance policies to cover any damages or losses to the physical building itself, however, your personal belongings inside the structure, whether it be a house, duplex, or apartment, are not covered in the landlord’s policy. 

You’ll need a renter’s insurance policy bought and paid for by you, the tenant, to cover your personal property and certain liabilities. While 85% of homeowners have a homeowner’s insurance policy, only 57% of renters have renter’s insurance as of 2022.

Why is it that so few renters carry insurance? Many people assume their landlord’s policy covers their belongings. This is not the case. People will also often underestimate the value of their possessions. If you combine the value of just clothing and electronics, it probably wouldn’t take long to tally up thousands of dollars in value.

Liability is another frequently overlooked reason to carry a renter’s insurance policy. If a friend, neighbor, or stranger is injured in your house, they could sue you. If you’re a renter not carrying a renter’s insurance policy, here are the top 6 reasons why you should. 

It’s important to have the right kinds of church insurance to bring security and peace of mind.  We will cover some of the most common types of insurance a church may need below.

1. Renter’s Insurance is Affordable

According to the National Association of Insurance Commissioners’ (NAIC) latest figures in 2022, the average renter’s insurance policy costs $15 to $30 a month. The actual cost of your policy will depend on many factors such as the amount of coverage you need, your chosen coverage, where you live, and your deductible amount.

2. Personal Property Losses Are Covered in Your Policy

Jewelry, computers, electronics, furniture, luggage, and clothing are all personal property protected in a renter’s insurance policy. The cost to replace most or everything you own can quickly add up, even if you don’t think you own very much. 

Most people are surprised by the amount of things protected in renter’s policies. For example, a standard HO-4 policy specifically for renters, will cover personal property losses from:

• Damages caused by aircraft
• Damages caused by vehicles
• Explosion
• Falling objects
• Fire
• Lightning
• Civil commotion
• Riot
• Smoke
• Theft
• Vandalism
• Malicious mischief
• Volcanic eruption
• Weight of ice, snow, or sleet
• Windstorm
• Hail
• Steam or water damage from plumbing, household appliances, heating, fire-protective sprinkler systems, or air conditioning.

Any losses from earthquakes and floods will not be covered in standard renter’s policies. You will need to take out a separate policy or rider for these perils. In areas prone to hurricanes, a separate rider might be needed to cover wind damage.

A deductible may need to be paid on your renter’s insurance policy before you can receive coverage.

3. Many Landlords Require Renter’s Insurance Policies

Your personal property is not included in your landlord’s insurance policy. Many landlords require proof of renter’s insurance policies in order to rent to a tenant.

Your landlord may be able to provide assistance in finding a renter’s insurance policy, should you need help. You may be required to provide proof of insurance by the landlord themselves, or, it could be required by the landlord’s insurance company. Many insurance companies agree that some responsibility can be shifted away from the landlord if the tenants are covered.

4. Liability Coverage is Provided

Standard renter’s insurance policies include liability coverage. In the event someone is injured in your home, protection is provided. The policy will pay any legal expenses and court judgements up to the chosen policy limit.

At least $100,000 of liability coverage is provided in most renter’s insurance policies. There is also usually a smaller amount allotted for medical-payments coverage. Higher coverage limits are available for purchase if necessary.

Keep in mind that losses caused by intentional acts or negligence won’t be covered in your renter’s insurance policy. Falling asleep with a lit cigarette and causing a fire, for example, will most likely not be covered by the policy.

5.Your Belongings are Covered When You Travel

You can travel with confidence knowing wherever you are, your belongings are covered. Whether your belongings are in your car, in your home, or with you while traveling, they are covered from loss due to theft and other covered losses anywhere you travel. Check your policy details or ask your insurance agent for more information on what is considered “other covered losses.”

6. Additional Living Expenses May Be Covered

If a covered peril renders your home uninhabitable, additional living expenses may be covered by your renter’s insurance policy. These additional living expenses can include costs associated with temporary living arrangements, food, and more. The length of time additional living expenses are covered and any caps in the amount the company will pay can be found in your policy.

Is Renter’s Insurance Worth Having?

Yes. Although a common reason for neglecting to buy a renter’s insurance policy is affordability, you can’t really afford not to have renter’s insurance. A renter’s insurance policy provides liability coverage, protects your belongings, and can even cover your personal items while you’re traveling.

What Does Renter’s Insurance Cover?

A long list of items are included in a renter’s insurance policy. But the most common ones are furniture, electronics (including tablets and computers), and articles of clothing.

How Much Does Renter’s Insurance Cost?

Renter’s Insurance costs on average $18 – $21 per month in the states of West Virginia and Kentucky, according to LendingTree.

The Bottom Line

Renter’s insurance covers your personal belongings, whether they are in your car, in your home, or with you while traveling. Renter’s insurance also provides liability coverage in the event someone is injured in your home or if you cause accidental injury to someone in your home.

It’s important to  understand all that your policy covers, and ask your agent about deductibles, available discounts, and coverage limits.

Motorcycle insurance for a brand-new bike

For riders, purchasing a brand-new motorcycle can be a dream come true. But before you get out on the open road, you may want to consider the insurance implications of owning a new motorcycle.

First, you’ll want to understand standard coverage options and how they help protect you and your bike. Next, if you’re the first owner of a motorcycle, it may be helpful to explore additional coverages available to help protect your shiny, brand-new bike.

5 benefits of motorcycle insurance

A standard motorcycle insurance policy helps protect you and your bike in several ways:

1. It’s the law. Motorcyclists in West Virginia and Kentucky are required to have liability coverage. Liability coverage helps pay for another driver’s medical bills or property damage if you cause an accident with your bike.
2. It helps pay your medical bills if you’re injured in an accident. Personal injury protection or medical payments coverage help pay for your and your passengers’ medical bills after a wreck.
3. It helps pay for damage caused by uninsured drivers. If you’re hit by a driver who doesn’t have liability coverage, your uninsured motorist coverage may help pay for your medical or repair bills.
4. It helps cover damage from a wreck. Collision coverage helps pay to repair or replace your motorcycle if it’s damaged in a collision with another vehicle or object, such as a fence.
5. It helps replace a stolen bike. Comprehensive coverage helps pay to repair or replace your bike if it’s stolen or damaged by risks like fire, falling objects or vandalism.

Comprehensive coverage and collision coverage are optional on your motorcycle insurance policy if you own your bike outright. If you’re leasing or financing your motorcycle, however, your lender may require comprehensive and collision coverage until the bike is paid off.

Other coverages, such as personal injury protection or uninsured motorist coverage, may be required or optional, depending on your state’s laws. Check with your Bray & Oakley insurance agent to understand which coverages are required on your motorcycle insurance policy.

Extra insurance options for a brand-new motorcycle

Now that you know a little about the standard types of motorcycle insurance coverage, you may want to consider purchasing additional protection for a brand-new bike.

Why do I need extra insurance on a brand-new bike?

Like other vehicles, motorcycles tend to lose value over time, according to National Appraisal Guides. And standard collision coverage and comprehensive coverage factor depreciation into the amount you are reimbursed for a covered claim.

The coverage limits on comprehensive and collision coverages are the bike’s actual cash value. That means the maximum amount your policy would pay if your bike is totaled would be the bike’s depreciated value immediately before the covered claim.

So, if your motorcycle is totaled while it’s still nearly new, the actual cash value of your motorcycle may not be enough to replace your bike with a similar model. Also, if you’re financing a totaled bike, its actual cash value might not be enough to pay off your loan. That’s where additional motorcycle insurance coverage may be helpful for a brand-new bike.

Types of additional coverage for brand-new motorcycles

These additional types of coverage may be available as add-ons to your motorcycle policy. Some insurers may offer these coverages as a package to help protect your investment in your brand-new bike:

• New motorcycle replacement coverage
  If your motorcycle is totaled, new motorcycle replacement coverage helps pay to replace the totaled vehicle with a new motorcycle, rather than paying you the actual cash value (which may be lower) at the time of the accident.
• Repair provision coverage
  If your new motorcycle is damaged in a covered claim, this type of coverage helps pay for repairs without taking depreciation into account.
• Loan/lease gap coverage
  This coverage helps pay off an underwater loan or lease if your new motorcycle is totaled. Gap coverage works in conjunction with comprehensive or collision coverage. It helps pay the difference between your motorcycle’s actual value and what you still owe on your loan or lease.

What is a ‘new’ motorcycle?

What counts as a “new” motorcycle may depend on your insurer. If you buy a motorcycle second-hand, it likely won’t be eligible for the new motorcycle coverages described above.

New motorcycle protection is typically only available if you’re the first owner of a motorcycle that is newer than two model years old. This coverage typically expires once the motorcycle is more than a few model years old.

All coverages are subject to the limits stated in your policy, and some coverages may come with a deductible.

What else do I need to know?

Every situation and motorcycle owner is different.  You should speak with one of our specialists at Bray & Oakley Insurance Agency to make sure you are properly and legally covered.  Our team is well-trained, educated and we represent multiple companies and we are sure to find the right fit for your specific needs.

Events that may not be covered by Homeowners Policy

Did you know there are some events that are not covered by many insurance policies? It could be a problem if these events occur when not covered by your policy. Claude Singleton, manager at Bray & Oakley’s Lexington, Kentucky location, addresses this problem clearly. In the information below, you’ll get answers to the most frequently asked questions on what is NOT covered in some homeowners policies.

What are the events that may not be covered by homeowners policy?

As we review some of the items and areas that may not be covered, keep in mind that if certain events occur, it could be a serious event for you and your financial investment. Specifically we are covering sinkholes, flooding, and earthquakes. These events are typically not covered by homeowners policy. They’re an exclusion on most homeowners policies. And they are not covered, unless there are special actions taken by you and by the agent to make sure they are added to your existing policy.

Flood Insurance

Flooding would be, in general, groundwater that’s coming across your property from perhaps a major storm. It could have occured from a storm or any event that causes flooding to your property. IS THAT COVERED? No, it’s not covered, unless you’ve got specific flood coverage on your policy. Flood insurance is provided by FEMA. As with any insurance, this has to be added in advance of something happening. We work with property owners who are in known flood areas everyday at Bray & Oakley.  If you need assistance, we are glad to walk you through it and answer your questions.

Earthquake Insurance

Earthquakes are probably something that you’re not considering, unless you live in California or a more common area for earthquake activity.  Many people think there’s no need to have that type of coverage. Well, that’s actually not the case. There are faults in Kentucky, and there are faults in West Virginia that can cause serious damage to your home.  We talk about earthquake insurance in every conversation we have about homeowners insurance.

In Central Kentucky, there are earthquakes that happen. In Western Kentucky many years ago, the New Madrid earthquake occurred that shook up things terribly. And it was a major earthquake, larger than the San Francisco earthquake.

Yes, it can still happen. Claude says, “If I don’t mention this type of insurance to you, shame on me.  This can still happen in places where you wouldn’t consider having it, and I feel responsible to make sure you at least know about it and the options.”

Transcript

Claude  00:13

We’re reviewing through your homeowners policy. And I’m actually looking at my own personal declarations page right here, the home insurance, there are some things that are not covered by many insurance policies. And if these things occur, it can be a serious event for you, which could be tragic from a financial standpoint. And that would be things like a flood, or an earthquake, or a sinkhole. And those are coverages that are typically not covered by homeowners policy, they’re an exclusion on the homeowners policy. And they are not covered, unless they’re special action taking Kate taken by you and by the agent to arrange that on your policy. Now, I’m speaking in general statements, of course, that’s what I have to do on this type of video. And there may be specific things related to you and your particular circumstance that we should visit further about. But in general, these statements are quite accurate. That earthquake and flood, and sinkhole are not covered by your policy unless they’re specifically covered, unless they’re specifically shown in your declarations page. So if you’re looking through, then you go, I’ve got a concern, I don’t see those coverages, then they would be worthwhile to talk about this. Let’s talk about those risks. Flood would be in general, groundwater that has occurred that’s coming across your property, from perhaps a major storm that’s happened above you, or to the north of B or whatever, whatever direction would be. But it’s suddenly coming your way or could be bursted. Damn, it could be something like that. I was not from a storm, but something else happened. Is that covered? No, it’s not covered, unless you’ve got specific flood coverage on your policy. And that has to be done. Flood insurance is is provided by FEMA. It’s a federal part of the federal government. And this has to be arranged in advance of something happening. But if you are concerned about flood insurance, let us know we’ll be glad to look into that and make sure what can be done in your area. So that earthquake, earthquake is probably something that you’re considering, unless you live in California, that there’s no need to have that type of coverage. Well, that’s actually not the case. There are faults in Kentucky, and there’s false in West Virginia that that can happen that can cause serious damage to your home. And so we can talk with you about earthquake insurance, if you’d like. It’s a very good thing to have. I visit with her about earthquake insurance, every every conversation I have about homeowners insurance. And in our area, I live in central Kentucky. In our area, there are quakes that happen in Western Kentucky many years ago, there was something called the new Mandroid of pronounced mattered, not Madrid, New Madrid fault that occurred that shook up things terribly. And it was a major earthquake, larger than the San Francisco earthquake, which which we’ve heard of in history has been just a terrible thing, terrible event. Well, thankfully, in Kentucky, there were less people in the area. And it happened in kind of a rural zone that rerouted the Mississippi River, it had all sorts of things, there’s something called Real foot lake out there. All that’s because of an earthquake, it’s a real thing that really didn’t happen. Well, the the that fault is still there, and can still happen. Yes, it can still happen. If I don’t mention that to you. Shame on me. And I recommend that you visit with us. We’ll be glad to help you about that and just show you pricing. Is that something you want to consider? After I’ve talked with people about earthquake insurance? About half of them take the earthquake insurance and half of them say no, don’t want it and that’s okay. Whatever person chooses, that’s okay, as long as I’ve shared that with them, and that they can make their choice. And I’ll say that’s 50% Take it 50% Don’t take it. I’ll say that half my customers are pretty smart. I just can’t tell you which half Okay, that’s insurance humor there.

Okay, next thing, we’re gonna talk about a sinkhole. If you live in an area that’s got a lot of limestone. And here in central ticket, there’s a lot of limestone. There can be sudden sinkholes that you’ve not seen before, to where the water is leached away the foundation over a period of time. And that can be a serious problem when suddenly your house has been encroached upon by this big ol hole in your backyard that appeared out of nowhere. And is there coverage for that. In general No, there’s no coverage for that unless you pre arranged sinkhole coverage and sinkhole is available and center protected And then other places as well. And we could talk with you about that. And that really depends on your specific, your personal specific concerns. Another thing that we should mention, perhaps in passing, there’s something called Mind subsidence. That is in some counties in southern some in West Virginia and Kentucky. There’s a real need, you’re required to have mine subsidence coverage. That’s when there’s been underground mining. Many types of many, many feet below the surface that you’re not even aware of. But certain counties are required to have that coverage. And certain counties there’s, there’s no need that you cannot get that coverage. But all those things you need to look at you need to be aware of and let us know we’ll be glad to help you review your policy. Right Oakley insurance has several insurance companies to choose from and we work hard to do things right for you. So give us a call

Sinkhole Insurance

If you live in an area that has a lot of limestone, such as central Kentucky, you can be affected by sudden sinkholes. Water can wash away the foundation over a period of time and that can be a serious problem.  Suddenly, your house can be in danger by a nearby sinkhole on your property.

Is there coverage for that? By default, no. There’s no coverage for that unless you add sinkhole coverage.  This is something you should at least discuss with your agent at Bray & Oakley.

What is Mine Subsidence Coverage?

Mine subsidence is when there’s been underground mining nearby, many feet below the surface that you’re not even aware has happened. These areas are required to have this coverage. Yet in other areas there’s no need to get the coverage. Talk to your agent to see where your property falls in the requirements.

Claude advises, “Let us review your policy. We’ll be glad to help you determine if you have the best coverage for your situation. Bray & Oakley insurance has several insurance companies to choose from, and we work hard to do things right for you. So give us a call.”

Equipment Breakdown Coverage

Equipment Breakdown in home can be very expensive to replace or repair.  HVAC units, hot water tanks, dishwashers, stoves, and refrigerators are some examples of equipment that could possibly break down. Some of these items have a manufacturer’s warranty; others could possibly be covered under a special coverage.

Underground service line Coverage

There’s something called underground service line coverage. You’ve probably received mailings from your utility company a couple of times a year to tell you just add this to your billing each month and we will protect you from underground service line damage to your property between your house and the main service provider. There’s a possibility that your homeowners policy could have that coverage on it as well.

Transcript

00:13

We’re talking about your homeowners policy. And I’ve got my doc page right here. Hopefully you’ve got yours available that you can check on some things. I’d like to visit about some other coverages that may be on your policy, or they may not be on your policy that you might check with your agent about. And I’ll just tell you, we’re glad to review your policies. And we’re glad to talk talk through potential coverages for you. These are some things that if if your claim was to occur, you would be very glad that you had this this coverage, these are additional things. And sometimes you’ll find this type of coverage under a packages, packages of coverages or options that you have. I’m speaking of Equipment Breakdown, that’d be where there would be a mysterious type of loss to your equipment, like HVAC equipment, any type of electronic system in your home, and it suddenly stopped working under normal circumstances, you would have to be showing, it would have to have shown an event that occurred that to be an insurance claim, if it just stopped working. In many cases, if it just stops working, because it’s old, or deteriorate or whatever, then sorry, that’s not covered up. There’s a manufacturer’s warranty. But it’s possible if you’ve got Equipment Breakdown coverage on your homeowners policy, it’s possible for that to be considered. Now I’m not right now making a blank statement, or every time it will be whatever. I’m not saying that, because I have to use general statements in this type of video. But your specific thing might be different, but Look carefully. There’s an Equipment Breakdown coverage on your policy. If so, you might also find that your HVAC unit that stopped working suddenly, May will be covered by that. But there’s there’s things that you need to do steps that you need to take the first thing if you do have that concern, call your current agent and find out about that, if you’d had that occur. If you’ve not had that to occur, and you just want to visit about it. Let us know we can talk through things with you. And see if you that’d be something you’d be interested in having. Also, there’s something called underground service line coverage, you will probably receive mailings from your utility companies a couple of times a year to tell you just add this to your billing each month. And we will protect you for underground service line damage to your to your property between your house and and the main drain or the main whatever system out in the road. There’s a possibility that your homeowners policy could have that coverage on it as well. Underground service line coverage covers different types of utilities or water, sewage, electricity, cable, things like that. It’s between your house and the street. And the specifics, we can give you more specifics on if you’d like. But in general look for that, to be on your policy most often is is not there. But let us know we’ll be going to be glad to show you this. Identity theft is another one that is a form of loss. It’s something that might be electronic in nature as how they got to your identity. But what has occurred has been a real loss to you financially. And it’s possible that your homeowner’s policy might have that type of coverage on there as well. And look for look for your deck page, or give us a call. We’ll talk through it with you. There’s also something called Cyber coverage, which is a type of bet in depth as well. It’s just another step up that some of the companies are recognizing and providing additional funds to help you recover from your loss of an asset which is your identity and perhaps some expenses involved with that. Some other coverage would be water, backup sewer, sewer and drain backup. And this would be not groundwater, groundwater that affects your home. That’s a type of flood and that’s a different item that we need to discuss at another time. But this will be one inside your home. The drain from the sewer or inset from the commode just came up and and overflowed with with stuff from the city that is missing. That may be on your policy and may not be on your policy look for it. If it’s not on your policy, chances are being excluded item they will not be covered item but sewer and drain backup can be very messy. And I’ll just give you a tip that I talked with my insurance my clients about that is this. How nice is your lowest floor? If you’ve got a very nice, finished basement, or your first level is your last floor you’re your main reinforce your lowest floor, and how’s your furnishings in there? If that’s got, you know, the black water element, what how much of a problem is for you? That’s a significant problem. So consider that coverage. And again, when you’re looking at these these in your, in your documents, look for sewer and drain backup. If you have questions about this, we’re glad to get more specific with you. We’re glad to do so.

Claude  05:26

And we at Bray & Oakley, have several companies to work with. We’re independent agents. And that helps a lot and we’re here to help you. So give us a call.

DIFFERENT TYPES OF LIFE INSURANCE AND WHICH ONE IS BEST FOR YOU

With the world taking many unexpected turns with each passing moment, getting life insurance is not an option anymore. It is a compulsion. You must have suitable life insurance for yourself for the bright future of you and your family.

However, when you start looking to get yourself a life insurance policy, you might face a tough decision because there are many different life insurance policies. Moreover, to decide which type of life insurance is most suited for you, you must also consider your region.

If you are a resident of West Virginia looking for a life insurance policy, here are all the types that you must consider.

TYPES OF LIFE INSURANCE

Term Life Insurance 

Term Life Insurance is one of the most efficient and feasible life insurance policies. As the name suggests, this policy lasts for a specific period of 5, 10, 15, 25, or 30 years, depending on the plan you choose.

After the term is completed, you can either renew the policy or simply get the coverage and opt for another policy looking at your situation at that time.

This policy is mainly suited for people who wish their life insurance to cover a specific debt or situation. For example, you can get this policy to cover a few years for your family in case you pass away so that they would have the finances to fulfill their expenditures till they find another source of income, or you could use the policy to cover your home loan for you.

Buying this policy is one of the cheapest ways to get life insurance; however, you might face difficulty when renewing as the renewal rates increase each year.

Whole Life Insurance 

Consider the whole life insurance policy as the complete opposite of the term life insurance. Here, you are getting insurance literally for your entire life till you pass away. The policy lasts till your death and requires you to pay premiums until then, and works as a cash asset for your future.

It’s the life insurance equivalent of ‘set it and forget it’. All in all, your premiums remain the same, you receive a guaranteed rate of return on the cash value of the policy, and the death benefit amount remains the same.

Whole life insurance is for customers who want lifelong coverage and are ready to pay a premium for the policy’s guarantees. Through this policy, you can be stress-free about how your family will do after you pass away because it will have them covered for the better good.

Variable Life Insurance

Variable life insurance policies have cash values linked to investment accounts, such as bonds and mutual funds. Premiums for variable life insurance are typically fixed, and the death benefit is guaranteed regardless of market conditions.

If your investment options perform well, you might make a lot of money. You can even borrow against the cash value or take partial withdrawals from it.

Variable life insurance provides long-term protection with a monetary value. The policyholder chooses which sub-accounts to invest in, and the amount of growth in the cash value account is determined by those decisions. Your sub-accounts performance can also cause you to lose money.

The policy requires a bit of risk-taking, and if it passes, it’s all sunshine, but everything could turn blue if you lose it. So, if you are willing to take that risk, this is the right policy for you. It’s either you make it, or you lose it. 

Survivorship Life Insurance 

The survivorship life insurance policy is for partners, such as husband and wife. The policy covers insurance for both the partners, and the beneficiaries can receive the pay-out after the passing of both the partners.

This policy is a cheaper way to get insurance for you and your spouse without paying premiums for two separate policies.

However, the key here is that this policy is only suitable if you think the beneficiary would not need the money until after the death of both insured people. If one of the partners dies, the other will not receive any pay-out since they will not be among the beneficiaries, but they themselves are part of the policy.

This policy is often purchased by couples who wish to send money to charity after their passing or to their next of kin. 

Credit Life Insurance 

This life insurance is a short time insurance plan that is bought to lay off a specific debt. The difference between the credit insurance plan is that the pay-outs are instead paid to the person or firm from which you have taken a loan instead of your family.

A Credit Life Insurance policy is for you if you have taken a large loan and you know your family might not be able to pay that off after you have passed away. You obviously would not want them to suffer. Hence, the credit insurance will cover up for you.

However, you must know that this policy will not cover any penny to provide for your family after your passing. 

Universal Life Insurance 

A Universal Life Insurance policy is similar to the whole life policy but is cheaper and offers lesser guarantees compared to that. Within the domain of Universal life insurance, there are different varieties for you with various requirements and payoffs.

Universal life insurance is a wonderful option for people who want to be covered for the rest of their lives. Some Universal life insurance policies are appropriate for investors who desire to link their cash value gains to market performance.

• Indexed Universal Life Insurance 

The cash value component of indexed universal life insurance is linked to a stock market index. A formula is used to calculate your gains, which is explained in the policy.

You can get cash value that increases over time. If the stock market does well, you could see significant gains. Your payments and death benefit amount are variable within certain limits. To simply understand, you should know that your cash value gains depend on the specific cap your policy terms have. For example, if the index goes up 30%, you will be getting a 15% return of it. 

• Variable Universal Life Insurance 

A Variable Universal Life Insurance policy falls under the category of permanent life insurance. It is a combination of life insurance’s principal benefit – the financial pay-out to your loved ones in the event of your death with investment subaccounts.

The cash value of your policy can be invested in these investment subaccounts. Your cash value may increase if the market performs well. In the event that the market underperforms, your policy may lose weightage. People who have experience with other types of investments will be familiar with Variable universal life insurance in a higher-risk environment.

Burial/Funeral Insurance 

A burial/funeral life insurance policy is designed to cover the costs of burial services and more after someone passes away. Without having to wait for an insurance company medical exam, the coverage can be purchased online or over the phone. In truth, there is no medical check required for burial insurance.

Applicants are supposed to tell their age, smoking history, whether or not they have any significant illnesses, and some other demographic-related information. Acceptance is guaranteed for some policies. Others need a two-year premium payment term before receiving benefits and only cover people up to the age of 100.

It is a cash policy that accumulates cash value over time. Burial insurance can be obtained for small sums, such as $5,000 or $10,000, but other types of insurance, such as term or whole life, may have much higher minimum coverage requirements.

As a result, burial insurance premiums may appear to be less expensive than policies with higher benefits. The premiums for this sort of insurance do not fluctuate, and the coverage is permanent. Funeral services, burial plots and headstones, caskets, funeral procession, and other miscellaneous charges are all covered by this insurance.

A FEW IMPORTANT THINGS TO CONSIDER

While these are the most common types of life insurance policies best suited for people of West Virginia, there are still a few questions you need to answer for yourself before you get into purchasing one.

Which is the most popular type of Life Insurance? 

Among all the types of life insurance policies we have mentioned, whole life insurance is the most popular one as it is a permanent life insurance policy and works with you till your death. You can rely on this policy and avoid getting worried about how your family will survive after your passing away. 

Which type of Life Insurance is also an investment? 

Permanent life insurance policies with an investing component allow you to increase your money while avoiding paying taxes. This implies that any interest, dividends, or capital gains earned on the cash-value component of your life insurance policy are tax-free until the proceeds are withdrawn.

Moreover, the permanent life insurance policy works as an investment for your family. The premiums that you pay today are considered as your investment which is later utilized by your family after you pass away. This way, your family will have the ground money to start until they can find a new source of income. 

What are the living benefits of a Life Insurance Policy? 

While the life insurance policies generate pay-outs after your death and are for the benefit of your family, there are a few living benefits for the policyholder that you must know about;

Term Life Insurance Living Benefits 

• If you have a terminal disease, the living benefit of term life insurance pays out a portion of your term life insurance policy. This provides you with much-needed funds to cover medical expenditures, debt, and other expenses.
• A critical illness rider is a variation on this option that allows you to collect your death benefit if you’re diagnosed with a specific illness or disease.
• If you don’t die within the term period, all of your premiums will be refunded to you.
• In the case that you are disabled for six months or more, you can use this living benefit to avoid paying your premiums. While not a true monetary advantage, it is nevertheless an excellent choice to have because the disability might not allow you to work, and you might not have money to pay off the premiums.

Permanent Life Insurance Living Benefits 

• The permanent life insurance policies give you an option of withdrawal. A withdrawal allows you to access a portion of your permanent life insurance policy’s cash value. If the amount you withdraw is less than or equal to your premium payments, you won’t have to pay any taxes on it.
• If you take out a loan against your permanent life insurance policy, you’ll be paid interest, but it’ll generally be less than the interest charged by other lenders. You won’t be subjected to a credit check or be bound by a long list of conditions.
• When you cancel your permanent life insurance policy, you can get the cash value part as a one-time lump sum amount. The sum will be deducted from any outstanding loans and unpaid premiums by the insurer.

A PRO TIP: ASK AN EXPERT

Choosing which life insurance policy to get for yourself could be a hard decision, but it is an important one because it affects your entire life. While choosing a policy, you will be choosing the future of your family after your passing hence, you need to consider each point and make a wise decision.

The best way to select one is to get a piece of advice from a life insurance expert that can guide you based on your needs and requirements. Here at Bray & Oakley Life Insurance Agency, we offer both consultancy and quotations for the best policy based on your needs. Contact us today to help you figure out the policy that you need!