COUNTING DOWN THE BIG FOUR - #4 Progressive

Ever wonder where insurance companies rank with the rest of the business world? Many think of insurance as a scam and therefore look for the cheapest way to make sure they have the minimum amount of coverage needed by law.  We've all been there; price is the determining factor for lots of shoppers.

Don't forget to think about company history, assets, net worth, etc. when choosing an insurance company.  Also, think of the access you have to live people should you need to file a claim or simply get an insurance document you may need.

The "Big Four" insurance companies pretty much offer the same basic products, but not all coverages nor companies are the same in how they actually protect you.

PROGRESSIVE

Quick facts about Progressive Insurance:

• 1937 - Created by Joseph Lewis and Jack Green 
• 1991 - 1st to use consumer's credit history; more accurate policy premiums
• 1995 - Website launch; 1st major insurance company to do so
• 1997 - Real time insurance offered online; another 1st
• 2009 - Name your price introduced
• 2010 - Android App released
• Currently #157 on Forbes Fortune 500; $24.4B in total assets
• 450 offices country wide; 25,000 employees

TERM VS. PERM - The Debate Goes On

People often cringe at the thought of not being around anymore, i.e. death.  What should be more scary is what happens to your spouse, children, and estate WHEN you don't come through the doors one day. There are many ways to take care of your loved ones from the grave. Life insurance is a great way to provide large sums of money without "on the cheap."  

The growing debate is whether to buy permanent (whole or universal) life insurance or temporary (term) insurance and invest the difference of the two.  Here's my two cents: 

The younger you are, the wiser it is to purchase permanent life insurance.  Those with young children should also purchase a policy for their child not for the death benefit (although you never know) but for the living benefit and financial growth.  That's another topic altogether.  

My suggestion is to have both types of life insurance, but to not "over-insure" yourself.  Think about it like this, would you want your loved ones to have to pay off a car and home if you owe on both when you expire?  

A 30 year term policy is a cheap way of covering both your home and auto(s) should you die unexpectedly.  If you own your  home outright, but have a loan on your vehicle, a 5 year term policy makes sense should anything happen to you during your loan period. 

Younger people who may actually take a moment to read this, you're getting older each day and the cost of insuring your life gets more and more expensive each year.  #thinkonthat

ASK THE RIGHT QUESTIONS TO MAKE THE BEST DECISION.

COMPARE BEFORE YOU SHOP, Part 4 ~ Renter's/Tenant's Insurance

Do Your Homework - RENTER'S/TENANT POLICIES

Ever stop to think just how much the stuff you've accumulated would actually cost to replace?  Go "shopping" around your apartment or rental home/condo one day and you would be surprised.  Ever stop to think about someone slipping and falling on your stairs or in your kitchen and you being sued?  What if you're cooking a fabulous meal for you and your significant other and the kitchen goes up in flames?  Do you have coverage if the neighbor (either upstairs or next door) causes a water leak that leads to your apartment being flooded and they have no renter's insurance?  

These scenarios are very real and could happen to anyone, yet could be avoided for merely pennies a day.  Most renter's insurance policies (depending on the amount of personal property you insure) run about $15-$25 per month and usually cover a minimum of $100,000 for your personal liability should you damage your rental unit due to negligence on your part.  Your liability coverage would also cover you should someone injure themselves at your residence and attempt to collect damages from you.  Most renter's insurance policies also provide you with some minimum coverages for jewelry, furs, computer items, silverware, etc. as well as basic medical expense coverage (usually $1,000) should you need it.  

Be sure you compare products and get the best possible liability coverage to protect your personal assets.

COMPARE BEFORE YOU SHOP, Part 3 ~ Condo Unit Owner's Insurance

Do Your Homework - CONDO INSURANCE POLICIES

When insuring your condo, make sure you know exactly what your Home Owners Association (HOA) Master Policy covers.  Coverages may vary from association to association, but typically the owner of the unit is covered in one of three ways: 

1. Coverage for the basic building, which includes walls, roof, floors, etc., but the unit owner is responsible for the appliances, carpeting, cabinets, wall coverings, and other items in their unit, including the interior walls in some instances.  
2. Coverage for both the basic building as well as items within each unit, other than the personal property of the unit owner. 
3. Coverage for both the basic building as well as the unit owner's fixtures and improvements. 

When the HOA Master Policy covers the structure, a condo unit owner policy is usually written to cover items that are the responsibility of the individual owner/tenant such as:

• The value of building additions/upgrades made at the expense of the unit owner.
• Value enhancements like an upgraded quality of carpeting.
• Damage to the unit that might not otherwise be covered because of the master policy deductible.

Doing your homework is critical.  Be sure to ask about additional endorsements 

for situations your master policy may not cover. The endorsement for water 

damage is a must add! 

COMPARE BEFORE YOU SHOP, Part 2 ~ Homeowner's Insurance

Do Your Homework - HOMEOWNER'S POLICIES, TX

Many times when I'm quoting homeowner's policies, the cost of the premium scares people away. Buying a home is a very tedious process; takes time, money, patience, and more money.  Why should insuring a home be any different?  

When insuring your family's lifelong memories, one must consider more than what it costs to insure the home, but what it would cost to rebuild in the event of a total loss? Of course nobody wants to think of losing "everything" to a fire or natural disaster, but insurance exists for a reason.  

It's never as simple as choosing the lowest bidder.  What is the insurance policy actually insuring? Are you getting dwelling foundation and water damage endorsements or not?  Most companies (and I'm speaking of Texas) allow you to choose those options when you start your insurance plan (at an additional cost of course), but you can't add it on later should you decide you want it.  

Is your home being insured to value (100%) or just to 80% where you are responsible for the other 20% under the co-insurance provision? Do you have replacement cost or actual cash value coverage?  What about your loss of use coverage?  

All of these are things you definitely need to discover by doing your due diligence, asking questions, and taking your time while deciding on home insurance provider.  Price alone is not enough. 

LIFE INSURANCE ON THE JOB: My two or three cents

IS YOUR FAMILY PROTECTED?

At least five to ten times per day, I have a conversation (albeit usually very brief) with someone regarding life insurance and the potential need their family would have in the event they suddenly don't make it home for dinner. 

I totally understand that most people cringe at the thought that one day they will no longer live and breathe as they currently do, but one thing is for certain we all get a "certain" amount of time here and that time can't be figured out by any algorithm I've ever been privy to.  

The name of the game is making sure your family can continue their same lifestyle should either of the main bread winners make an early, unexpected exit from this life.  Having life insurance at work is a GREAT start! You usually get a pretty good price (if not free) on the coverage and usually one to two times your yearly salary.  

Sounds like a sweet deal on the surface, but the moment you leave that position you no longer have coverage and if you stayed three to five years, you are now that much older when it comes time to rate you for your next life insurance plan. 

How do you combat this issue?  Make sure you have permanent life insurance outside of your employer and make sure you begin that coverage as early as you can to take advantage of the best possible monthly premiums.  Also, be sure you speak to an insurance agent about your options for coverage: term, whole, universal, term vs. whole, whole vs. universal, etc.