Archives July 2022

Purchasing a life insurance policy is important if you are concerned about ensuring the financial security of your dependents. However, purchasing a life insurance policy comes with many questions and decisions that may be intimidating, possibly causing you to hesitate. Unfortunately, putting off such an important conversation can be expensive and even harmful in the long term, particularly if the unexpected occurs.

What Questions Should You Ask When Purchasing Life Insurance?

The following are five important questions you should ask when purchasing life insurance.

#1 What Kind of Life Insurance Policy Should I Get?

First, it is important to understand the basic types of life insurance coverage available. There are two main forms of life insurance that you can purchase: term and permanent insurance.

If all other requirements are satisfied, a term insurance policy offers protection for a predetermined period of years and pays a death benefit. Term insurance policies typically last one to 30 years and are purchased to pay for a child’s education or to cover mortgage payments.

The death benefit of a term policy may remain constant over the course of the policy, or it may decline — it depends on the kind of coverage you select.

Permanent life insurance, however, gives the insured a death payout regardless of how long you live. A permanent insurance plan might be entire, universal, or variable universal, and it is more complicated than a term insurance policy.

Traditional insurance policies have a predetermined premium and death benefit at the time of purchase. Variable and universal policies, on the other hand, will change based on how the market performs.

#2 How Much Life Insurance Do I Need?

The amount of life insurance you need will depend on a variety of factors, such as the sum required to settle your debts, including your estate taxes and funeral costs. The amount needed by your dependents to maintain their standard of living in the event of your death should also be factored into the decision. Other factors that may impact the quantity of coverage you purchase are:

• Your income
• Your age
• Existing debt
• Current expenses
• Future expenses, such as sending children to college

Before you decide to get insurance, be sure your insurance agent considers your financial situation and your family’s future needs. Once your insurance agent has considered all your present and future financial needs, you can then begin to consider which policy is best for you.

# 3 How are Death Benefits Paid?

Unless the beneficiary elects to receive the benefit as an annuity or in installments, the death benefit is given out as a single, income tax-free payment. A few policies (including some employee benefit plans) require pre-tax payments for the premium; in these cases, the death benefit may not be income tax-free.

A death benefit may also be divided between multiple beneficiaries. For instance, as the policyholder, you may name more than one beneficiary and divide the benefit equally (or unequally) among family members such as children.

#4 Does the Policy Provide Living Benefits?

The idea that life insurance solely offers death benefits is a widespread one. Many life insurance policies also include living advantages, such as the ability to borrow money against the policy’s cash value.

Depending on the company, the insured party may be eligible for living benefits while they are still alive. Some life insurance policies offer common living benefits such as:

Early payment: This benefit, which helps pay for care and medical expenses, is available to insureds who have been told they have a terminal illness. The percentage of the benefit is determined by your insurance and the firm.

Long-term care: If the insured needs assisted living because they are unable to provide for their basic needs on their own, the long-term care benefit may allow them to use the proceeds from their life insurance policy to help cover those costs.

Short-term care: If the insured is hurt or temporarily disabled, this benefit may help pay for the costs of care in the short term.

It is noteworthy to remember that while some of these benefits may be covered by the life insurance policy, others may be purchased separately. If you’re interested in finding out more about your options, our expert representatives are ready to assist you.

#5 What Life Insurance Benefits are Guaranteed?

You should thoroughly read the entire policy before buying life insurance to understand what benefits are ensured in the event of death. Depending on how long the policy is in effect, you may be offered a “life insurance illustration” when you request a quote. This document outlines the estimated value of your policy.

However, the economy, particularly with variable policies, can produce a significant volatility in prediction values. You should make sure you are comfortable with the guaranteed figures when you are examining your illustration.

Evaluating the Best Life Insurance Coverage for Your Needs

No matter your current phase of life, life insurance can create a sense of comfort for you and for those who matter most to you. GWK Insurance is here to help with your life insurance needs. We make it a priority to inform, educate, and help our clients make the best insurance decisions possible.

We are experts in helping you make the right insurance choices to protect the financial future for those you care about most. Contact us today to begin comparing life insurance policies that best serve your specific needs.

Purchasing your first car is a big milestone and one that comes with important responsibilities. Choosing auto insurance includes deciding what coverage and deductibles you need.

It is important to first realize that a number of variables such as age, marital status, and home ownership can affect coverage and cost when it comes to auto insurance.  The type of coverage and size of deductible you want in the event of an accident may also influence the policy and restrictions you select.

Here are four of the most important elements to understand when considering your first your first auto insurance policy.

#1 Coverage Pays for Damages You May Cause

Liability insurance comes in two different varieties. In most states, both are types are mandated by law.

Bodily Injury Liability

This coverage could assist in covering your legal costs as well as the injured party’s medical expenses and lost wages in the event that they sustain injuries as a result of an auto accident you caused. This insurance frequently has two distinct limits: one for each injured person and another for each accident.

Property Damage Liability

This insurance can shield you if your car damages someone else’s property. You may not have to compensate the other party’s damages out of your own pocket if property damage coverage helps reimburse them for their losses.

#2 Coverage That Helps Protect You if You’re Injured

Personal Injury Protection (PIP)

If you are hurt in a car accident, this coverage might assist in covering your health insurance deductible (if you have one) as well as any additional medical expenses that go beyond the limitations of your health insurance. While you are recovering, this insurance may also cover your lost income. In the worst circumstance, PIP may assist in paying for your funeral costs. Keep in mind that not all states offer PIP.

Medical Payments

Similar to personal injury protection, this coverage may assist in covering your medical expenses related to an auto accident. However, this coverage extends to your passengers and any family members who were in the car at the time of the collision. This coverage can also assist in covering medical costs if you or a member of your family is hurt in a pedestrian accident or while riding in another vehicle.

#3 Coverage That Helps Protect You from Drivers Without Insurance

Uninsured/Underinsured Motorist

If you are hit by a driver who does not have auto insurance or whose policy limits are insufficient to fully cover the costs of the accident, this coverage may be able to help safeguard you. Depending on the insurance requirements in your area, it can also help cover the cost of any vehicle damage in addition to your medical expenses.

#4 Coverage That Helps Protect Your Vehicle

Collision

This coverage accommodates repairs or even the replacement costs of your car as a result of a collision with another car or item.

Comprehensive

This insurance might help with non-auto accident-related damage to your vehicle. Examples include theft, fire, and fallen objects.

Guaranteed Asset Protection (GAP)

You will normally receive fair market value for your car from your insurance carrier if it is stolen or totaled in an accident. However, if you still owe a lender more than the automobile is worth, GAP insurance may be able to help you get paid the price difference.

Finding the Best Auto Insurance Policy

Reliable insurance coverage is an important component of auto ownership. The first step is choosing an insurance agency you can trust.

At GWK Insurance, we help individuals and families get the proper coverage for their specific needs. Contact us today to help you find the right auto insurance policy coverage for your needs.

During the summertime, most individuals find themselves occupied with vacations, events, pool and beach days, baseball games, and other outdoor activities.

After your days of fun in the sun, returning to your air-conditioned home to relax is one of the best ways to cool down from the heat. However, what do you do when your air conditioner unit suddenly stops working?

Whether from unit failure due to age and use, physical damage caused by weather, or simply failing from a broken coil, air conditioner units are not always reliable. In the middle of the heat and humidity, it can be difficult to know how to proceed with repairs. You don’t want to be left wondering if you are required to perform them yourself or if your insurance company will cover repair costs.

Is My Air Conditioner Covered?

Here is a general breakdown of which air conditioner-related issues your homeowner’s insurance will likely cover and what is typically not covered by the average policy.

Policy Definitions

Your homeowner’s insurance policy will lay out specific perils that are covered. Generally, a peril is considered to be any event that causes damage to your personal belongings inside the home, or the structural integrity of the home itself.

Most policies typically cover fire, theft, and weather damage. The following are example scenarios:

• Hail damage: if the central air conditioning unit is damaged in a hailstorm, the homeowner’s policy will most likely cover these repairs. A central air conditioning unit is considered part of the structure of the home, and will often be covered under dwelling coverage, depending on how the unit is damaged.
• Fallen trees: most homeowner’s policies cover damages caused by falling objects, specifically when caused by inclement weather.

It is important to note that while most central air conditioning units will be covered in peril-related incidents, window units typically fall under personal property, and are not always covered. Contact your insurer for further explanation of what your specific policy covers.

Age and Usage

If the air conditioning unit breaks down because it is older and well-used, be aware that most policies do not cover general wear. Therefore, repair costs will be your responsibility as the owner.

If you live in an older home, an easy way to ensure that your unit is running properly is to schedule annual maintenance checks. These checks will either reveal that everything is running smoothly or will ideally identify a problem long before your unit breaks down.

General Part Damage

Homeowner’s policies do not cover part failure or damages if they are not caused by a peril-related event. For example, if the air conditioning unit’s fan stops functioning on a hot day, and no peril-related event is identified, then the homeowner would be responsible for the cost of repairs.

The same is true of frozen coils, leaking refrigerant, thermostat/sensor failure, and drainage issues. These issues are fairly common in a central unit and can be avoided through annual maintenance checks.

We are Here to Help!

Put simply, your central air conditioning unit is typically protected from any weather damages, vandalism, or other peril-related incidents. Unfortunately, breakdown from a lack of maintenance or common age-related issues is unlikely to be covered under your insurance policy, and repairs will be your responsibility.

At GWK Insurance, we can help you find the best insurance policy that meets your budget, lifestyle, and needs. If you find yourself unsure of your options or are looking for a homeowner’s policy for your specific needs, our experienced agents are ready to assist you. Contact us today to get started.