Insurance Archives - Page 7 of 9

Term vs Permanent Life Insurance

Buying life insurance is not on the top of everyone’s priority list. It makes us think about dying and how we have to plan for it when we leave family members behind. Morbid, yes. Necessary, absolutely. Life insurance is the best present you can give your family. There are two main options when buying life insurance – Term Life Insurance and Permanent Life Insurance.

As the name implies, Term Life Insurance is for a specified term or time period. Policies can range from 1-30 years for a term. This type of life insurance is relatively inexpensive because it does not build any cash value and it just ends when the term expires. The payments are at a fixed rate until the end of the term. If future life insurance is needed, the rate will most likely go up because the person buying it is now older (an influence on the rate of a policy) and could have health issues that were not present when first buying the term insurance. If the purchaser does die during the term of the policy, the beneficiary will receive full payment of the policy. This type of life insurance can be used for the purpose of covering a mortgage. If you have a 30 yr mortgage, you may buy a 30 yr term policy just to cover your mortgage payments if you die within that time period.

Permanent Life Insurance, sometimes called Whole Life, will initially be more expensive. However, the rate on the policy will not change regardless of any changes in health or occupation, as long as timely payments are made. A significant difference from Term Life Insurance is that Permanent Life Insurance will build up cash value. Over time, the policy value will be increasing by more than the actual premiums. The owner will have access to this cash if so needed. In the end, Permanent Life Insurance will be more cost effective and provide a better solution to family planning.

If you have any questions about life insurance and family planning, please call us! mancuso-nowak.com

When Should You Drop Collision On Your Auto Policy?

Dropping collision coverage on your auto policy can be an easy decision once you consider the various factors. The first things to check are the premium cost for the coverage and the actual cash value (ACV) of your automobile. To find an estimate of the ACV of your car it isn’t an exact science. It is a combination of looking at Kelly Blue Book value and what your car is selling for at local dealerships. The closer the premium is to your ACV the easier the decision is to drop collision. The deductible on the auto is also an important factor to consider.

A good example is: if the value of your car is $2,000 and the premium is $450 with a $500 deductible and you get into a single vehicle accident, you are already invested $950 on a $2,000 car and that’s just one year of premium. This is when you would consider saving money on your $450 premium and drop the collision. However, if you are living pay check to pay check the $1,500 ($2,000 ACV – $500 ded) you would get from the insurance company if the car was totaled would at least give you some cash to buy a new car.

Some times when your car is older and/or has very high mileage you can consider dropping collision because the older your car is the lower its actual cash value is. However, if you are very dependent on that vehicle and you must repair it for daily transportation, then the decision may be a bit more difficult. Also, can you afford the out of pocket cost of an accident or is it easier for you to manage paying for the collision coverage in small amounts throughout the year?

Everyone’s financial situation is different, so consider all the factors before deciding to drop collision. If you would like to talk to us about this decision, please call us! We are always happy to help: www.mancuso-nowak.com

Homeowners Policy: Basic vs Special Form

There are many confusing parts of insurance. One of them is the type of form/policy that you have for your homeowners insurance. There are a few different types of forms, but we will discuss a Basic Form or “Named Perils” versus a Special Form.

The Basic Form is commonly called “Named Perils” because it only covers the perils that are specifically named. If a peril is not named, there is no coverage for the loss. The common named perils are fire, lightening, windstorm, hail, explosion, riot, smoke, vandalism and damage caused by aircraft or vehicle. Some of the common losses NOT covered by a Named Perils form are water damage from a broken or frozen water pipe. Also, damage caused by ice dams, which are formed from the freezing and melting of snow on your roof. These types of losses are very common in Massachusetts. So even though a Basic Form is less expensive, it is rarely recommended.

The most comprehensive coverage will be the Special Form. This type of policy covers almost all losses to the building, with the exception of flood and earthquake damage. The Special Form is used almost exclusively on our homeowners policies. The Special Form pertains to the actual building and not to the personal property and contents of the building. The form can be extended to cover contents for an additional premium. There are a few occasions when a Special Form can not be used; such as, when a property has substandard conditions.

If you have any questions about your homeowners policy and what type of coverage you have, please call us to discuss. We are happy to explain all of your options and give you the best type of coverage for your needs. www.mancuso-nowak.com.

Pool Safety

June is HOT, especially this week! One of the best ways to cool off is a dip in the pool. Unfortunately, in the news recently there have been incidents of people, mostly children, drowning. You can prevent most pool accidents with some basic pool safety guidelines:

Have proper pool safety equipment readily available. Have a 4 foot tall fence surrounding the entire pool area with a quick latching door that locks.
If your house is the 4th side of the fence then make sure you have alarms on the doors and windows facing the pool. This will alert you if a child is outside near the pool.
Make sure the pool cover fits securely around the pool itself. The best type of cover is a lockable pool cover.
Have a safety flotation device located right next to the pool.
Keep a first aid kit in the pool area.
Post CPR instructions on a fence or pool house. It is much more helpful if you are CPR certified.
Make sure you are a good swimmer, if not take lessons. Same is true for your children. Start swim lessons early.
Never leave children unsupervised in the pool area.
Always have one person in charge of directly watching children in the pool. Never assume someone else is watching the kids. Talk about who is in charge before the kids go in.
If a child is in the pool and not splashing around…check them! This can often be “silent drowning.”

Pools are a fantastic way to beat the heat. If safety comes first everyone will have a great time! Look at our Homeowners page to find out more information on what your policy covers: mancuso-nowak.com/coverage/home. Call us with any questions!

Attention All Drivers! Watch Out and Yield for Bikers and Pedestrians

As you navigate the local streets in your vehicle, it is your responsibility to be aware of your surroundings. This is especially true when lots of bikers and pedestrians are around during the summer months. Making sure you yield when necessary and watching out for unexpected risks is the best way to take caution. This way, sharing the road won’t be so difficult.

Following the rules of the road will promote safety within your community. If you or someone else fails to do this, serious collisions and injuries could occur with bikers and pedestrians. As a driver, it is important to remember that a bicycle is considered a vehicle too, so it has the same rights as any other form of transportation. In addition, if you are near a cross walk, you should always expect someone to be walking across it. Here are some safety tips for you to follow as a driver to keep the roads safe:

Do not pull out in front of a stop sign too far. If you disobey this law, you could hit a cyclists or walker. Therefore, you should stop with enough room for anyone to get by.
At nighttime, always ride with the lights on. If you don’t do so, this puts you and others in danger of a collision.
If you are in a city, side street parking is common, as is bicycle riding and walking or running. Therefore, you should look outside before opening a door to avoid hitting someone.
Stop behind the white line at an intersection and not in the crosswalk.
When turning at an intersection, be sure to look both ways for pedestrians and bikers.

At Mancuso-Nowak Insurance Agency, we hope that by following these safety tips, you can stay in control on the road. We know that you may take every precaution to stay safe, but there is still always the possibility for an accident or injury. This is why you should have the proper auto insurance during unpredictable events. Our team understands that your needs differ from those of other drivers. This is why we are committed to building a life-long relationship with you. Let us guide you through this process so you may find peace of mind.

Your Insurance Renewal

Every year you receive your home and auto renewals in the mail or via email. What do you do with it? Do you even look at it? Or just at the premium? There are some key things you should consider when reviewing your insurance renewals:

What has happened to you/your family in the past year? Marriage? Newly licensed driver? Get a company car? Good report cards from school? All of this information should be updated with your insurance agent.

Are the correct vehicles listed on your auto renewal – look at model, year, drivers? Has anyone moved into or out of your house that should (not) be listed in the household as drivers?

Check the limits for your vehicles. We recommend $100,000 per person/$300,000 per accident for coverage #5 Optional Bodily Injury.

Are the lean holder and/or mortgagee information correct on your auto/home policy?

Is the dwelling value accurate on your homeowners policy? Have you made any updates or remodels to your house to increase the value? Added a home security system, pool, heating system (stove, etc.)? Replaced your roof?

Did you buy a new recreational vehicle – boat, jet ski, motorcycle, snow mobile?

All of these points should be considered when looking at your home and auto renewals. Adding Umbrella Insurance is also an excellent idea. It gives you $1M worth of coverage over both your home and auto insurance for just a couple hundred dollars a year. Our famous saying: You don’t need to be a millionaire to be sued for a million dollars. Please call us if you have any questions about your insurance coverage: www.mancuso-nowak.com.

Marriage and Insurance

The summer is the most popular time to get married. With marriage comes a lot of important financial decisions to make. One of these financial decisions is on insurance. Do you combine and have one auto policy or do you keep your policies separate? Do you need life insurance?

Here are some factors to consider:

Married couples have lower auto rates. Actuaries determine insurance rates. They base their rates on statistics. Statistically speaking, married people get in to fewer accidents. Non-married people actually get into twice as many auto accidents.
If you are buying a new house/condo now that you are married you can receive multi-policy discounts with your home and auto together.

On the other hand:

If your spouse has a bad driving record with lots of tickets and accidents, your premium will go up. So it would be better to keep separate policies.
If your spouse has a much more expensive car to insure than you, you may want to keep your policy separate.

Life insurance is always important to have, but once you are married many of your finances are combined. You make joint investments, such as buying a house/condo. With such large joint investments, it would be difficult for just one of you to make all the payments if something happened to your spouse. This is why life insurance is so crucial. It not a fun thing to do…thinking of a loved one passing away, but preparation is the best policy. Even if both of you have life insurance through work, it is also smart to buy a separate policy for each of you. If one of you loses his/her job, all the money invested into the company life insurance is gone. You don’t have life insurance anymore. On the other hand if you are putting money into personal life insurance policies they are always there. Think of your husband/wife, would you want them to struggle finically if something happened to you? Buying life insurance could be the most thoughtful and caring thing you buy!

If you have any questions on your policies after marriage, please call us and we can discuss all of your options! mancuso-nowak.com/coverage/personal/#/

* Beautiful wedding picture from one of our employee, Nina Arroyo!

Know the Facts: Personal Condo Policy HO-6

If you live in a condominium you will need an HO-6 Personal Condo Policy to protect your property inside of the unit. Your master policy will cover the building itself. Each master policy is different as to what the “building” actually is. Sometimes your responsibility is from the studs in and other times it is from the walls in, so make sure you are insured properly. To better understand what the different parts of the HO-6 policy we broke it down:

Deductible: $500 or $1,000. The higher the deductible the lower the premium. Policy coverage starts after the deductible is met.

Dwelling Coverage: You must carry at least $1,000 but it is in your best interest to cover at least the amount of the Master Policy Deductible, which is often $10,000. This provides coverage for interior walls, ceilings, floors. Be sure to add endorsement 17-32 if you are on ISO-Form, which is often called the All Risk Coverage Endorsement.

Loss of Use: If unit is uninhabitable, this will pay cost to rent elsewhere and provide meals, storage rental and any other added costs you incur.

Medical Payments: If someone sustains minor injury in your unit and requires medical attention with no legal action.

Personal Liability: Covers you and members of your household in a lawsuit. Will provide legal defense if you are served to defend an action where you did bodily injury or property damage to someone else.

Personal Property: Covers all of your personal belongings; such as, clothing, furnishings, appliances, sporting equipment, window treatments, electronics. Basically, everything not permanently attached to the building. Also provides coverage away from the premises. Insurance for your jewelry with an appraisal can be added to provide the best coverage.

Personal Property Replacement Cost Endorsement: Is allowing your belonging to be replaced at today’s cost vs a depreciated cost.

If you have any other questions about your HO-6 policy, please call us: www.mancuso-nowak.com

Distracted Driving

April is Distracted Driving Awareness Month. We all try to multi-task, especially while driving…one of the worst places to do it! On your way home from work, rushing to think of dinner plans, you decide ordering take-out is easiest. While driving you are searching your phone for the number or asking Siri to find it for you, not fully paying attention to the road. A car stops short in front of you and you end up rear-ending them. If you are lucky and everyone is ok, this is still an at fault accident that will give you a surcharge on your car insurance, just because you were trying to multi-task. Don’t. One call/text could ruin everything while driving. The statistics are there: you are 4x more likely to get in a car crash while using a cell phone or hand held device. Don’t assume that since you have a hand held device it is risk free.

1. Hands-free features in dashboards actually increase mental distraction

2. Using voice-to-text is more distracting than typing texts while driving

3. Drivers who text with their hands or voice (using speech-to-text systems) keep their eyes on the road less often and have reaction times twice as slow

The truth is using your cell phone in any form, is making you a distracted driver. Please don’t make a statistic out of yourself and take the focused driver challenge. There are many ways we can be distracted while driving, but using a cell phone is the number one distraction. So if you try to limit your phone use to while you are stopped or when you get to your destination, you will be a lot safer and so will the other people on the road.

* statistics from The National Safety Council

How to Prevent Slip and Fall Homeowners Claims

We often think of slip and fall insurance claims coming from businesses, but many claims are through homeowners policies. There are people almost every day coming on to your property: friends, relatives, neighbors, FedEx employees, plumber, etc. It is important that you keep your house as safe as possible, for both your family and visitors (invited or not).

Here are a few simple steps to help prevent slip and fall accidents:

Install railings on you stairs (with most insurance companies this is a must or you will not be covered)
Properly shovel and use a non-slip ice melt after storms
Use non-slip pads under all of your area rugs
Clean up spills immediately…kids are pretty tricky with where they drop things, so be mindful of all the places they are
Keep cords close to the wall out of the way
Properly light outside walkways
Fix all broken steps: outside and inside (make sure stair rugs are properly secured)
Use doormats both inside and outside of your house
Use non-slip mats both inside and outside the bath/shower

It is always a good idea to have an umbrella policy also. Our motto: You don’t need to be a millionaire to be sued for a million dollars! A $1M umbrella policy is an inexpensive way to give you that extra protection in case you have a slip and fall accident on your property and are sued. Call us for details www.mancuso-nowak.com

Mancuso Nowak

Category: Insurance