Archives April 2022

When choosing a life insurance policy to protect your family’s financial well-being, there are a number of things to consider. You need to understand the basics, such as how this type of insurance policy works, coverage types, why it’s beneficial to have, and how to choose the right plan for you and your family, before making any decisions.

How Does Life Insurance Work Exactly?

The purpose of a life insurance policy is to  provide a death benefit to your pre-selected beneficiary, which in most cases is a spouse, child, or other family member. Upon your passing, your beneficiary, or your licensed insurance agent, would submit a claim to the insurance company basically informing them of your passing. Once the insurance company receives all the required documents, the beneficiary would receive a payout based on the terms of the life insurance policy.

Understand the Two Main Types of Life Insurance

There are several things you should consider when purchasing the best life insurance policy for you, and understanding the two main types of life insurance, permanent and temporary, is a good place to start.

Permanent Life Insurance

A permanent life insurance policy sounds exactly like what it is: you’ll be covered for the entirety of your life, so long as you are paying the premiums. This type of policy gets paid of regardless of the age at passing as long as the policy is up to date.

Two of the most popular types of permanent insurance are whole life and universal life. Most whole life policies provide a level premium, so the rate that you pay stays the same for the entire policy. With most life insurance policies, you can get a larger death benefit by passing a medical exam. Other permanent insurance policies available include universal life and variable universal life.

Universal life and whole life are the two most common types of permanent life insurance. Whole life insurance is more standard, and you pay consistent premiums throughout the life of the policy. In addition to lifelong protection, universal life insurance, which has flexible premiums, has a savings component (called “cash value”) in which you can borrow or withdraw against the insurance policy’s value and your cash value earns interest.

Temporary Life Insurance

A temporary life insurance policy, sometimes also referred to as term life insurance, is issued only for a certain amount of time, typically from five to 30 years.

Term life insurance policies stipulate a death benefit to your assigned beneficiary only if you pass away during the pre-determined term of your temporary policy, until the age of 95.

The majority of temporary life insurance policies are level premium term policies, meaning your premium will remain consistent for an established period of time. There are a few other, less common, types of term life insurance, such as decreasing term coverage and annual renewable term coverage. However, these are typically not the right option when looking for the best protection for your family.

As you review various policy options, consider the length of time you would like to have coverage.

Choosing The Best Life Insurance Policy for Your Family

Life insurance can help give you peace of mind and secure what matters most for all ages and stages of life.

Protect the life you want for those that matter most. This is what GWK Insurance is here for. We make it a point to educate, inform, and assist our clients in the process of making the right insurance choices.

Contact us today to start evaluating life insurance policies that can help provide financial security for your loved ones by covering expenses like the mortgage, college tuition, and other everyday living costs.

No matter what type of risks your business may face, there are insurance coverage options available to help protect your company. When determining which types of insurance to invest it, be sure to consult with your insurance agent. They can help guide you in the right direction and ensure your business is properly covered in case any issues arise down the road.

5 Types of Business Insurance to Consider

Consider the following 5 types of business insurance to help safeguard your company and minimize potential financial setbacks in the future.

#1 General Liability Insurance

General liability insurance typically covers legal issues due to injuries, accidents, and negligence claims. This type of insurance protects you when claims are made regarding libel, slander, settlement bonds, lawsuit defense, property damage, bodily injury, medical expense, and more.

#2 Product Liability Insurance

If you sell a product, you may be held liable for its safety. Product liability insurance is most necessary for businesses that wholesale, distribute, or manufacture products. This type of insurance can protect your business from monetary losses should a defective product cause bodily harm or injury to one or more individuals. Speak with an experienced insurance agent to determine the amount of coverage you should have, which is dependent on the products you manufacture/sell.

#3 Professional Liability Insurance

If your business provides services, you should strongly consider investing in professional liability insurance, sometimes referred to as errors and omissions insurance. This type of insurance helps to safeguard your company when it comes to issues such as errors, malpractice, and negligence in regards to the services you provide to your clients.

Be sure to check state and local requirements, or consult with your insurance agent, as many types of professions are required to carry this type of policy, such as medical doctors being required to carry malpractice insurance in many states.

#4 Commercial Property Insurance

This type of insurance coverage protects your business when it comes to loss or damage of company property which can come as a result of storms, fires, wind, etc. Commercial Property Insurance can include everything from lost income to building damage to the contents inside the building.

To select the best possible type of commercial property insurance for your business, consult your insurance agent.

#5 Home-Based Business Insurance

Now, more than ever before, businesses are being run out of the business owners’ homes. And, what many people do not realize is that home insurance does not cover your business’ losses.

Depending on the type of business you have, and the risks associated with your business, you may be able to add provisions to your existing home insurance policy to cover some basic business risks, like property damage. However, you may decide that these very basic add-ons will not suffice to properly protect your company. Consider purchasing additional insurance coverage, such as professional liability and/or general liability insurance to be appropriately insured.

Find The Best Business Insurance for Your Company

At GWK Insurance, we know that starting up and running a company is a lot of work, and adding shopping for business insurance to your already-full plate can feel overwhelming. But we are here to help you find the best possible business insurance to protect your company. Contact us today to help you find the best quotes for your insurance needs.

Getting a new home insurance policy may not be the most exciting task, but it is vital to protecting your family and your property. Not to mention, all mortgage lenders require you to carry home insurance.

Whether you just purchased a new home or your current policy no longer fits your needs, you should shop for the best home insurance policy to fit your specific needs.

To help you do that, let’s take a look at some of the most important things you need to know about home insurance before starting your search. Some of them may surprise you.

#1 Home Insurance Coverage Varies Depending on the Policy

It is important to know that policies can provide varying levels of coverage. A typical home insurance policy covers your house, your belongings in it, and your liability for any injuries or property damage caused to others. Additional living expenses may also be covered by some policies, in the event that you cannot live in your home while work is being done to it after a natural disaster or accident.

When comparing home insurance policies, think details, details, details. Read each policy in its entirety and be sure you understand exactly what type of damage it protects against, the compensation it provides, the deductible amounts, etc.

#2 Understand What is Excluded from Each Policy

Floods, earthquakes, termites, mold, and wear and tear are amongst the many types of exclusions outlined in most policies. But there are additional coverage options you can add to your home insurance policy — like flood insurance — to get the coverage you need for those occurrences.

Depending on your location and proximity to flood zones, you may be required by your mortgage lender to purchase flood insurance through the National Flood Insurance Program.

And, along the coast in some areas in Florida, home insurance policies exclude wind damage. But you can shop for a wind damage policy to best fit your needs and local requirements.

#3 Difference Between Rebuild and Market Values

Oftentimes, a home’s market value is less than the cost to rebuild the home. That being said, a home insurance policy that only covers the market value of your home will not provide full coverage for rebuilding it in the case of a total loss.

Keep this in mind as you read the fine details of any policy, as it could potentially mean having inadequate insurance should you need to rebuild the home.

#4 Policy Pricing Can Vary Greatly

Although you may think that two policies offering the same coverage, exclusions, deductibles, etc. would be the same price, that is incorrect. This is why it is so important to shop around for not only the best policy for your needs, but also for the best price. You need to consider both when making your decision.

When comparing prices, be sure you are comparing apples to apples to really understand the cost difference. It will just lead to confusion if you try to compare prices of two completely different policies.

Shop The Best Home Insurance for You

At GWK Insurance, we know shopping for home insurance can feel daunting. But we are here to help you shop for and purchase the best possible home insurance policy to protect your home and family. Contact us today to help you find the best quotes for your insurance needs.