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What is Commercial Insurance? Total Guide to Business Coverage – 2021

Commercial insurance comes in several forms and serves to cover losses associated with your business activity. It protects the leadership of a business, as well as a business’s employees from incurring losses as a result of a workplace accident. And, it can make the difference between staying in business through unforeseen hardships, or shutting the doors for good.

Learn everything you need to know about commercial policies for businesses of every size and industry. Find out about the different options available for protecting your commercial enterprise from the full brunt of liability costs. And, discover how this type of business insurance can be a vital resource in the face of legal liability associated with an incident involving your business and employees.

The Total Guide to Commercial Insurance and What it Covers in 2021

Different types of commercial insurance protect your business from different kinds of risks. Also called business insurance, it covers many of the brutal expenses that your business incurs when being held liable for losses. Instead of shouldering the full burden of the risk, business insurance provides a buffer between your business’s liable expenses and its profits.

Business insurance typically carries a higher coverage limit than that of a personal insurance policy, since it has to provide coverage for numerous employees and business assets. Depending on the type of business, you can get coverage for your business’s financial wellbeing, reputation protection, and employees. Since every business is unique in the risks associated with its operation, every business must choose from a menu of coverage options available to create a policy that serves the unique needs of your business.

The Most Common Type of Commercial Business Policy

When it comes to a basic business insurance policy, many businesses begin with a standard Business Owners Policy or BOP. This basic policy provides three essential forms of business-coverage, including commercial property, general liability, and business income insurance. Every business needs these three types of coverage, and many businesses need additional coverage beyond that which is in a BOP.

BOP: Commercial Property, Business Liability, and Income Insurance

Commercial property insurance provides coverage for the infrastructure and physical property of your business. This type of coverage applies to equipment, like computers, electronics, tools, machinery, furniture, and accounts receivable. In the event of damage to your physical property, a BOP policy kicks in to help your business pay for the expenses.

General liability insurance kicks in to protect your business to cover damage claims. It covers claims of slander, advertising mistakes, bodily injury, and property damage. For example, if one of your employees accidentally drops hot soup on a customer, general liability insurance covers the expenses associated with damages awarded to the claimant.

The third type of coverage provided in a BOP is business income insurance. This type of insurance provides financial assistance to your business in the event of property damage. For example, if a car crashes through your office wall, it covers the rental cost for a temporary office.

Other Commercial Insurance: Auto, Workers Comp, and Cyber Liability

Apart from a BOP, your business may need coverage specifically catered to your commercial activity. Many insurance providers offer niche coverage options for businesses with specific needs. But, most providers offer businesses the option to extend their commercial policy with auto, workers compensation, or cyber liability insurance.

Commercial auto coverage is an essential addition to your policy if your business involves working with automobiles. Commercial auto coverage is similar to personal automotive insurance. The difference is it covers multiple vehicles in the event of a breakdown of equipment. It provides liability coverage for business-related auto accidents where injury or damage occurs.

Workers’ compensation insurance covers business expenses associated with lawsuits involving worker-related injuries. Many states legally require businesses to have workers’ compensation insurance if the operation involves construction, manufacturing, or engineering. In the event of a lawsuit, it covers medical expenses and wage loss, damages, and litigation fees for the defense.

More businesses operate digitally, meaning cyber liability insurance is more necessary than ever before. If your business operation involves managing digital assets, such as personal or financial information, cyber liability is essential. If your business’s cybersecurity is breached, compromising digital assets, and damaging digital infrastructure, cyber liability insurance kicks in to cover the expenses associated with the fallout. It can cover the costs associated with lawsuits regarding the compromising of personal information, as well as many other expenses.

Get Help Creating a Policy to Fit Your Business

Every business is different in the coverage it needs – but every business needs to be covered. There are many other forms of business coverage that are not mentioned here, and an associate can help you create a policy to fit your business needs. Talk to a Leliaert Insurance associate today for expert help in creating the right commercial insurance plan for your business.

What is Variable Life Insurance? Total Guide to Cash Value Policies – 2021

Variable life insurance is a type of permanent life insurance that offers policyholders a cash value portion of the account. Unlike other permanent life policies, a variable life policy comes with significantly more risk, while presenting the opportunity for more reward. These policies give you the most control over how aggressively you invest the cash value portion of your account, and where you decide to invest.

Learn about the risks and rewards that come with a variable life policy as opposed to other permanent life policies with a cash value feature. Find out how variable life compares in terms of premiums and ongoing costs associated with keeping the policy current. See the pros and cons of a variable life policy, and get help determining the best life insurance solution for your situation.

Everything You Need to Know About Variable Life insurance in 2021

Variable life insurance is the riskiest of the 4 different types of permanent life insurance that offer a cash value account included in the policy. Variable life insurance, like all permanent life insurance policies, is designed to remain in place for the life of the individual being insured. And, also like other permanent life insurance policies, variable life policies feature a death benefit, a cash value, and the premium.

What is the Death Benefit for Variable Life Policies?

The death benefit is the most standard element of any life insurance and is the main purpose of the policy. Every month, you pay a premium to keep your life insurance active, part of which goes to the death benefit. When the policyholder dies, the death benefit is bequeathed to a beneficiary. Apart from the administrative fees and that which goes towards the death benefit, the rest of the premium payment goes towards the cash value component of the policy.

What is the Cash Value Portion of a Variable Life Policy?

The cash value portion of permanent life insurance functions in the same manner as a standard investment brokerage account. The difference with a variable life insurance policy is the amount of investment control and mobility of funds afforded to the policyholder. As the investments appreciate, the policies cash value increases.

If you decide to close your variable life policy at any time, the cash value is the amount you expect to receive back. While the policy is active, the cash value principle is invested in securities that are similar to mutual funds or index ETFs. Most variable life insurance policies include a fixed-interest option that guarantees a steady rate of return to your cash value.

Why Choose a Variable Life Policy?

The benefits of choosing a variable life insurance policy include the potential for a higher rate of return on your investment. Variable life policies offer more investment options and flexibility than that afforded by a whole life policy. But, with greater reward potential comes greater risks, and variable policies are so named for that exact reason.

The cash value portion of a variable life policy most resembles a standard investment account. When the market is good the cash value swells, and when the market ebbs the cash value drains. But, unlike other policies, a variable life policy is built to afford easy access to the cash value.

Variable policies often include the highest amount of ongoing and additional fees to keep the account open. And, if you are worried about the ability to maintain premium payments, there are more frugal options for getting life insurance. If you want to learn more about variable life insurance, talk to an insurance associate for a free consultation.

What is Cash Value Life Insurance? The 4 Types of Policies – 2021

Cash value life insurance provides investment opportunities to earn interest over the policy’s lifetime. This type of life insurance policy features a separate partition that acts as a savings account, called the cash value. And, these life insurance policies let the holder access the interest on the cash value.

Learn everything you need to know about the 4 types of cash value life policies available and how they differ. Find out how a cash value policy works, what benefits they offer in the short vs long-term, and the responsibilities associated with them. And, see how these 4 types of cash value policies rank next to each other on the risk/reward scale.

What are the 4 Types of Cash Value Life Insurance and How Do They Work?

A cash value life insurance policy is one of 4 different types of permanent life insurance that earns interest over time. In general, the types of permanent life insurance with a cash value feature include whole life insurance, universal life insurance, variable universal life insurance, and indexed universal life insurance. And, the investment activity widely varies on a risk and reward scale, depending on which type of permanent life insurance policy you choose.

The biggest difference between this type of life insurance policy and a term policy is the assurance of interest in a separate cash-value account. The cash value portion of your account is accessible to borrow money against, or as liquid funds. So, like a savings account, a cash value account takes a portion of your monthly premium to use in an investment account that grows over time.

How Does the Cash Value Portion of Permanent Life Policies Work?

Every life insurance company is slightly different when it comes to the details of creating a policy. But, in general, there are two main elements at play in how permanent life insurance works. A permanent life insurance policy usually features a death benefit and a cash value.

The death benefit works similarly to that of any other type of life insurance. The value of the death benefit is bequeathed to a beneficiary at the time of the insured’s death. The amount of death benefit a policy pays depends on the face value of the policy – just like term life insurance.

The other element of permanent life insurance is the cash value. The cash value is in addition to the death benefit and acts as an investment account. The principle for the cash value portion comes directly out of the monthly premium, which makes these types of policies more expensive than those without a cash value feature.

Unlike the death benefit, you can access the cash value portion of your account at any time during your life. Over the life of the policy, the interest accrued in cash value is tax-deferred. Some policies offer a more stable return, whereas others offer an aggressive approach, and how much return the cash value portion yields is contingent on the type of policy you choose.

How Does Accessing the Cash Value Work?

The cash value portion of your permanent life insurance policy is accessible by several means, contingent on the stipulations of your policy. In general, the cash value is accessible by withdrawal, loan, surrendering the policy, or payment of policy premiums. Depending on the type of policy, there may be consequences or penalties for accessing the cash value.

Make a Cash Value Withdrawal

Withdrawing the cash value from your account is the most convenient and common way of accessing the cash value. As long as the amount being withdrawn is less than the premium paid thus far into your cash value account, withdrawals are tax-free. If, however, the amount you withdraw exceeds that which you have paid into the cash value, it is taxed by the IRS as standard earned income.

Borrow Money Against the Cash Value

Another option is to take out a loan on the cash value of your policy. You can borrow against the premium payments already made and the interest accrued by the cash value principle. And, loans taken against the cash value of your permanent life insurance policy are tax-free, as well.

But, if you die with outstanding debt from a loan against the cash value, the remainder is taken out of the insured’s death benefit value.

Close the Policy and Get the Cash Value

If you decide to surrender your permanent policy you can access the cash value, but not before paying a few fees. Most insurance companies require the policyholder to pay a surrendering fee when closing the policy. And, you also run the risk of being charged income tax on the value of your policy after it is dispersed back to you.

Use the Cash Value to Pay Monthly Policy Premiums

The other common way of utilizing the cash value is to help with premium payments for your permanent policy. Most insurance providers allow the policyholder to use their cash value to pay monthly premiums, as long as it doesn’t reduce the principle and cause the policy to lapse. And, if you are having trouble paying your monthly premiums, this type of life insurance might not be the right fit for your finances.

If you’re interested in a life insurance policy that features an investment aspect, a cash value policy might be the right choice. But, how do you know if it is the best option for your future? Talk to an insurance associate for a free consultation on whether a cash value life insurance policy serves your current and long-term needs.

Your Total Cyber Security Insurance Guide for Small Businesses – 2021

Most businesses have cyber security insurance of some sort, but what does that mean? Cyber policies span a wide range, and the coverage you receive can vary just as widely. So – does your business need this type of insurance and what does it cover?

Learn everything you need to know about cybersecurity liability coverage and what it is for. Find out whether your business liability insurance includes a cyber provision and the extent to which it might provide coverage for a variety of events. And, see if your business is getting the amount of coverage it needs for cyber-related incidents.

Cyber Security Insurance Guide – 2021: What is It and Who Needs It?

Of all the types of insurance for small businesses, the vast majority of businesses lack cyber security insurance. Cyber coverage is known as cyber liability insurance, and it is a purchasable add-on to most insurance companies’ standard business liability insurance policies. But the extent of coverage can widely vary between insurers.

If you are unfamiliar with why your business might need cyber protection, just consider the recent Solar Winds hack, Microsoft Exchange cyber attack, or the 36 billion digital records exposed through data breaches in the first half of 2020. Cyber threats are reaching small businesses on an entirely new scale, and the average data breach for a small business costs nearly $4 million in damages and repairs.

In 2021, most small businesses know that they need cybersecurity liability protection. So the real question is what you need your policy to protect. And, the answer is different for every business.

What is Cyber Liability Insurance?

Cyber liability is specialty business coverage for risks associated with digital threats to a business’s information, internet technology infrastructure, regulatory liabilities – and more. The majority of business liability policies refrain from expressly mentioning cyber coverage – unless to rule it out. You can add it to your general liability policy to cover events like data theft, ransomware extortion, malware attacks, denial of service – and others.

If you have cyber insurance, your business is covered for losses and other costs related to qualifying events. These costs can include legal fees and the associated expenses to investigate the cyber event.

But, a claim can be denied by the insurer for several reasons, like failing to safeguard the stolen data in the first place. And, according to IBM, nearly 85% of corporations fail to correctly safeguard their data files. So, along with coverage comes the responsibility to manage and monitor the security of your network.

Do You Need Coverage for a Cyber Event?

About 63% of small businesses reported experiencing a data breach in 2019, and the percent is only likely to increase in the coming years. And, of the businesses that experience a cyber attack, around 60% are out of business within a timespan of months. At the end of the day, if your business has valuable digital assets, it makes sense to have coverage.

Since the beginning of the COVID-19 pandemic, digital adoption by small businesses has accelerated six-fold. Between March and October 2020, like many businesses newly adopted a digital presence as was true of the past three years – combined. So, it is no wonder that cybersecurity threats have increased as well.

Legal and Contractual Cyber Insurance Responsibilities for Businesses

When it comes to your business’s requirement to have cyber coverage, you might be under legal or contractual obligations if your company handles any personal information. Especially when it comes to customers’ and clients’ sensitive information, your state’s requirement for cyber insurance might be obligatory. Even if the data files are kept in “off-line” storage, you likely need cyber coverage if your business stores credit card information, bank account numbers, social security numbers, and even names and addresses.

Another reason you might be required to have cyber coverage on your general business liability policy is if your business’s revenue crosses paths with European markets. If you deal with businesses or sell to consumers in Europe, the European Union mandates the application of standards implemented under the General Data Protection Regulation (GDPR).

What Types of Events and Incidents Does Cyber Liability Cover?

The events and incidents covered under a cybersecurity insurance policy regarding your business’s digital exposure. In general, the costs associated with an event are covered for first-parties, third-parties, or both. Expenses that are covered for first-parties often include the costs of IT forensics, credit protection, crisis management, notifications, and crime engineering.

Third-party expenses often cover the costs of breaches of contract, breach of network security, Denial of Service (DoS), malware and computer virus software transmission, negligence of the protection of data therewithin, legal defense and fees, and financial penalties as a result. Also, cyber policies generally cover some or all of the costs associated with a ransomware event, in which digital assets are leveraged by hackers for financial extortion.

Even when all the best safeguards are in place and the best standards of cybersecurity are being followed, cyber threats still pose a threat. In the event of a cyber attack, is your business covered? Talk to an insurance associate today for a free consultation on choosing a cyber security insurance plan that protects your business’s digital liability.

Is Life Insurance for Children Available and Why Do You Need It? 2021

In the face of recent world events surrounding the COVID-19 pandemic, there is a new interest in life insurance for children. Generally, children have little need for a life insurance policy, except for in special circumstances. So when does it make sense to get life insurance coverage for your child, and are there alternatives?

Learn everything you need to know about child life coverage and shopping policies in 2021. Find out how it works, what you need to know when buying, and the rough-average monthly-premium. And, discover alternative solutions to children’s life insurance that make sense for your family.

Life Insurance for Children in 2021: How it Works and What Its For

Just like standard life insurance – life insurance for children is primarily a form of income protection. So, since a child doesn’t make income, you don’t need life insurance to cover the loss. This logic, however, ignores the financial obligations that accompany anyone’s untimely death, like funeral costs, as well as the potential benefits of investing in a permanent life insurance policy for your child.

In general, there are two umbrella reasons you might want to take out a life insurance policy on your child. The first is if your child has a chronic illness or other medical condition that poses a risk to their lives. The other reason you might take out a life policy on your child is as a form of long-term investment and savings for their future.

These two routes are quite different in the needs that they serve, as well as the general cost of monthly premiums. Breaking down children’s life insurance into these two categories helps you see the benefits, drawbacks, and practicality of both. The biggest difference between life insurance policies for kids is that one is term life and the other is permanent life.

How Does Life Insurance for Kids Work?

The biggest benefit of buying a life insurance policy for your child is if a critical illness of some sort will make it difficult for them to get insurance in their adulthood. When thinking about these policies, they are often whole life insurance and carry significantly higher premiums than that of a term life policy. Whole life insurance policies usually have monthly premiums that cost about 15-times more than the cost of term life insurance premiums.

But, the extra money you spend on a child’s whole life insurance policy is not wasted. They usually carry a cash value in the form of a policy rider, which is accessible by your child in their lifetime. So, in a way, the policy includes a savings account with dividends.

What You Need to Know When Shopping Insurance Companies

That being said – this type of investment is criticized by some economists for having a low rate-of-return, high-rates, and fees that can make these policies untenable. For those able to afford the high-premiums for their lifetime, the benefits remain intact for the life of your child, without any changes based on the state of your health. But, if you are unable to sustain the policy premiums for the duration of the policy – or you transfer the policy to your adult child and they are unable to continue payments – the cash benefit can be significantly impacted.

Most children’s whole life insurance policies max-out at age-18. So, with most insurers, you can still create a policy for a child who is 17 years old. Gerber Life, however, will not create a policy for children over the age of 14, and the policy automatically transfers to the underwritten child when they turn 21.

Is Life Insurance a Cost-Effective Way to Save for My Child’s Future?

If you are looking at a way to save for your child’s future, a whole life insurance policy is certainly a valid route. It provides a death benefit, as well as a savings account that allows you to borrow money against the balance later in your life. So, opening a new policy for a young child can provide a means to pay for expenses in their adulthood, like college.

The main benefit of using a whole life insurance policy to help pay for college is that it is not recognized as a financial asset when calculating your financial aid. Some economists advise against the whole life policy, instead recommending you open a 529 plan to save for your children’s college. The 529 plan, however, does count as an asset in terms of calculating your child’s eligible financial aid.

Whether for future savings or because of an illness, a child life insurance policy is only one way to plan for expenses. And, navigating the options available can be overwhelming without help. Get a free consultation with an insurance associate to learn more about whether you should look into getting life insurance for children in your family.

Self Employed Health Insurance – 2021: Everything You Need to Know

For anyone who does not receive healthcare coverage through an employer, it’s up to you to find self employed health insurance. Health insurance for self employed individuals is available through the Federal government as well as private insurers. And, being your own boss comes with some tax perks when it comes to deductions.

Learn everything you need to know about getting health coverage under a self-employed insurance policy. Find out what health care options are available to you, and whether you qualify as a self employed individual. And, see how to determine which insurance plan is right for you.

How Does Self Employed Health Insurance Work in 2021?

Self employed health insurance can provide equivalent coverage as that from an employer, or you can find insurance on a budget. Health coverage is essential – whether your business has one employee or 1,000. But, as the self-employed owner of a business, you can take an extra income tax deduction for your health insurance costs.

The Health Insurance Marketplace provides a consolidated hub to get quotes from all the major healthcare insurers. And, you can specifically search for a policy designed for self-employed individuals.

Self-Employed vs Small Business: Which Are You?

When it comes to qualifying for self employed health coverage, it’s a matter of numbers. If you are the only employee in a business, which you run, then you qualify. But, do you have one or more employees?

If you even have a single employee you might qualify for a small business health insurance plan through the Health Insurance Marketplace. A small business policy might add the benefit of providing coverage for a spouse or family member, as well as yourself. Ask yourself, do you run an income-generating business that has zero employees?

If the answer is, yes, you are probably eligible for self employed health insurance through the Individual Marketplace. An employee is someone who receives a W-2 form at tax time from a small business. If your business occasionally hires contractors, they do not count as employees. In which case, you can still qualify as self employed.

What Coverage Options Exist for Self Employed Individuals?

If you find yourself in a situation where your self-employed income is scarce, see if you qualify for a premium health credit. You can find out if you qualify by filling out a Health Care Marketplace application. Low-income households are determined by the level of gross household income, compared to the size of the household.

If you are having a hard time affording the healthcare options available for self-employed individuals through the Marketplace, you might qualify for Medicaid or CHIP. Medicaid and CHIP are available through your state. And, they afford individuals in need and children healthcare coverage at little to no cost.

On the Healthcare Marketplace, you will find a range of types of coverage. Each option offers different levels of coverage at an affordable premium. In general, the less you pay on your health care monthly premium, the more the cost of medical care. And, the opposite is true when paying a high monthly premium – it affords you greater coverage on medical expenses.

If you do not qualify for Medicaid, and can’t afford a general individual policy, think about getting catastrophic health insurance, instead. Those who are under the age of 30 and have no medical pre-existing conditions might qualify for catastrophic insurance.

Insurance Tax Deduction for the Self-Employed

For the self-employed, the cost of your annual health insurance is all deductible. At tax time, you can deduct the premiums you paid over the previous year in the form of monthly health and dental premiums. That means that you subtract the total cost of your insurance from your taxable gross income over the year and receive the difference in your tax return.

But, if your single-person operation lost money over the previous year, you might not be able to claim the deduction in full. Are you ready to take the next step to get insured? Talk to an insurance associate today for a free consultation on finding the right self employed health insurance for you.

What is Supplemental Life Insurance? Everything You Need to Know

Supplemental life insurance is additional coverage that usually is purchased atop an existing policy. If your employer provides your basic life insurance policy, supplemental can be used to cover a spouse or dependent. Whether through your employer or a private insurer, it is important to understand what this type of insurance is, and whether or not it serves your needs to add it to your policy.

Learn everything you need to know about supplemental life policies through your employer or a private insurance company. Find out how supplemental policies work and what they cover. And, see whether it makes sense to add a supplemental policy to your existing life insurance.

What is Supplemental Life Insurance and Do I Need it?

The purpose of supplemental life insurance is to increase the amount of insurance your term life policy covers. Normally, your employer-offered term life insurance policy is between $15,000 to around $25,000. Adding an extra term life insurance policy can increase it to around $80,000 to $100,000.

One of the reasons you might look into purchasing a supplemental policy for your term life insurance is if pre-existing conditions make it difficult for you to get adequate coverage in your base policy. Or, maybe your base life insurance doesn’t cover your spouse or children, whereas a supplemental policy will. In other cases, a supplemental policy might be able to carry to a new place of work, whereas your base life insurance only exists through your current employer.

Determine How Much Extra Life Insurance You Need

The amount of extra life insurance you need is determined, by estimating the level of the financial burden your death will incur, compared to the amount of coverage provided through your current life insurance policy. Is it enough to cover the costs? In general, you should look for coverage of at least 5-times your annual income.

If your life insurance amounts to more than 20-times your annual income, you probably are over-insured. That being said – everyone’s financial situation and personal circumstances vary. So, there is rarely a one-size-fits-all solution when it comes to how much life insurance you should have.

A good place to start is to think about how many individuals rely on your income. If you have children you are likely to have more fiscal responsibilities on your shoulders, for which supplemental insurance can account. Or, if the nature of your occupation is particularly hazardous to your health or life, it might be responsible to purchase additional insurance.

What Does a Supplemental Life Policy Cover?

In general, it works to increase your policy payout for two main reasons. It can be used to fill in the gaps where a term life policy falls short. Or, it can work to increase the overall value and extend the coverage provided under a whole or permanent life insurance policy.

Most of the time, access to supplemental life coverage is contingent on the group term life policy provided by an employer. Many policies are conditional on your employment status from where the policy is provided, and supplemental insurance only exists within an employer’s group policy. Some insurers, however, offer portable policies, which you can convert from the group to a personal policy – in which case, you may be able to retain the base and supplemental policy.

4 Main Types of Supplemental Term Insurance

Through an employer, there are four primary forms that supplemental insurance takes. First, it can supplement the coverage amount on your current life insurance. The second and third types of supplemental insurance work to cover the life of the primary policy holder’s spouse or domestic partner, and to cover the life of a child or dependent.

Most insurers require the primary policyholder to purchase supplemental for themselves before adding supplemental for a spouse or child. The fourth type of coverage is supplemental accidental death and dismemberment (AD&A) insurance. AD&A coverage pays out if you are critically injured or killed.

At the end of the day, the amount of term life insurance offered might be enough to cover your family’s financial need in the event of your untimely death. But, for many families, it is not enough without additional coverage from a supplemental policy. Talk to an insurance associate for a free consultation and professional advice on whether supplemental life insurance is worth it for you.

What Is Permanent Life Insurance? Whole vs Universal vs Term Life

Permanent life insurance is – put simply – a way to combine a death benefit with an interest-bearing savings account. It is permanent because the policy does not have any expiration. But, different types of permanent life insurance offer different benefits and drawbacks.

Learn everything you need to know about whole and universal life insurance. Find out the pros and cons of the two main types of permanent life coverage. And, see what the big differences are between permanent and term life insurance policies.

What is Permanent Life Insurance and Should You Get It?

Permanent life insurance refers to two specific forms of permanent life insurance: whole and universal life. Some insurers offer other types of permanent life policies, but whole and universal life are standard permanent life policies offered by any life insurance company. Whole life and universal life insurance are alike in many ways.

Both types of permanent life insurance policies include a death benefit, as well as a savings element. The difference lies in how the savings aspect, called cash value works with whole vs universal life insurance. Whole life offers a guaranteed-rate savings account, while universal life offers a savings element variable interest rate that is based on the performance of the market.

Permanent Life Policy Basics: Whole vs Universal

The feature indicative of a permanent life insurance policy is the built-in savings element, called cash value. Over time, cash value appreciates as you make regular monthly premium payments on your policy. Your policy’s cash value is tax-deferred and you can borrow against the equity in your policy’s cash value.

The death benefit feature of a permanent life insurance policy is a chunk-sum of money bequeathed to a beneficiary upon the policy holder’s death. The death benefit is separate from the cash value. If you cancel your permanent life policy early, you receive the accrued cash value of your policy, but not the death benefit. How much your policies cash value appreciates over time depends on whether you have a whole life policy or universal life policy.

Whole life insurance is the most common type of permanent life insurance policy. Whole life policies are popular because they have a guaranteed rate of return. You can be confident that the savings will appreciate over time, which comes at the expense of higher monthly premiums.

Universal life, on the other hand, has lower monthly premiums and offers greater flexibility to increase or decrease the death benefit and premium payments. But, the rate-of-return from savings is not guaranteed, as it is with a whole life policy. Universal life basis the savings aspect in the stock market, which is inherently volatile.

In bull markets, your universal policy may see a rapid rate of appreciation, and the opposite in a bull market. Since a universal life policy incorporates more variability in your rate of return, it carries the benefit of lower monthly premiums.

Permanent Life vs Term Life Insurance

Another low-premium life insurance option is term life insurance. Term life insurance is the opposite of permanent life, in that the policy will generally expire before the policyholder. Many term life policies include the option to convert it into a permanent life policy – like renting to own.

The main reason to choose term over permanent life insurance is that term life carries much lower monthly premiums. Finances aside, however, permanent life is a better option for providing savings and, with some policies, dividends after a certain point. Opening a term life policy with the option to convert into a permanent policy can be beneficial for individuals with short-term financial restrictions to opening a new permanent policy.

Permanent life is a tool to provide additional stability to your and your family’s fiscal future. No matter your financial or physical health, there is a life insurance policy that meets your needs. Talk to an insurance specialist for a free consultation on whether term or permanent life insurance is right for you.

If You Can’t Afford Health Insurance Here are Your Options in 2021

If you are one of the American’s who can’t afford health insurance – you are not alone. The past year has caused a level of financial insecurity for millions of Americans that haven’t been seen since the Great Depression of the 1930s. And, with lawmakers in Washington, as of yet, unable to agree on how to resolve the issue, out-of-work and low-income citizens are searching for healthcare solutions.

Learn about the options available to individuals who find themselves without the ability to afford health insurance in 2021. Find out whether you can take advantage of existing assistance programs through the federal government or other entities. And, discover options for getting the coverage you need on an alternative basis to mainstream health insurance and the Affordable Care Act.

Can’t Afford Health Insurance in 2021? These are Your Best Options

It’s no secret that there exists a gaping healthcare cost disparity in the United States, resulting in millions of Americans who can’t afford health insurance. Even with the ratification of the Affordable Care Act (ACA) or Obamacare, the gap between those with insurance and those without continues to grow. And, the unprecedented numbers of unemployment claims, as a direct result of the global COVID-19 pandemic have done everything to exacerbate the already widening gap between the insured, and the uninsured.

For millions of Americans, simply going uninsured is not an option. Going uninsured might mean giving up access to essential medications or life-saving therapies. If you are one of the many Americans finding themselves without the ability to pay for health insurance, there are other options available to you.

Option #1: Cost Assistance Program

Obamacare is prohibitively expensive for many Americans, but it offers a cost assistance program for those in need who qualify. Your income must fall within 100% to 400% of the federal poverty level to be eligible for assistance. But, for many earners put out-of-work due to COVID-19, this program may help.

The ACA Cost Assistance program works to cover the costs of your insurance premium by providing a payment subsidy. The amount covered by the cost assistance program is determined by your income, as well as the cost of coverage in your area. By taking part in this program, the federal government sends your premium subsidy directly to your insurance provider, which deducts it from your premiums on medication and other medical procedures covered under your plan.

If you make 100% to 250% of the federal poverty level you may be eligible for coverage with cost-sharing benefits. Cost-sharing benefits offer lower deductible costs and copays for individuals with higher financial need. Talk to an insurance expert to find out if you are eligible for ACA Costs Assistance.

Option #2: Medicaid Healthcare Coverage

Medicaid is a joint program through federal and state governments that provides healthcare coverage for people with disabilities, those receiving social security, and low-income individuals. In general, Medicaid may be available to you if your household income falls below the 133 percentile of the federal poverty level.

The eligibility qualifications and restrictions for receiving Medicaid vary by state, but it is an invaluable resource if you can’t afford health insurance. And, even if you don’t qualify for health insurance through Medicaid, the Children’s Health Insurance Program (CHIP) can likely offer coverage for your children. Talk to an insurance associate for help navigating your state’s Medicaid application process.

Option #3: Catastrophic Healthcare Coverage

If you are under the age of 30 or qualify for a hardship exemption for financial reasons, you may qualify for catastrophic healthcare coverage. Catastrophic health insurance is cheaper than traditional health insurance plans and includes all the same coverage as your standard HMO. The drawback to catastrophic health insurance, however, is that the deductibles are higher than with a standard health insurance plan.

Unlike with a standard plan, tax subsidies and tax credits are not eligible to use on a catastrophic health insurance plan through the ACA marketplace. If you have preexisting conditions or foresee the need for regular medical care, it is more efficacious to pursue a standard plan through the ACA marketplace.

If you are in tough financial times and need help with your medical expenses, start by finding out whether or not you qualify for Medicaid. Navigating the ins and outs of healthcare coverage can be confusing and stressful – especially when your wallet is thin. If you can’t afford health insurance, a professional insurance assistant will help you find an insurer and plan that meets your needs.

Pros and Cons of Budget Auto Insurance: Does it Offer Enough Coverage?

Basic or budget auto insurance meets your state’s minimum coverage requirements but might not cover an entire claim in the event of a car accident. While basic coverage saves you money on monthly premiums, you are on-the-hook for higher out-of-pocket expenses when it comes to your coverage limits. Budget car insurance is more affordable because it provides less coverage.

The question is whether budget auto coverage is a good choice for you? Learn everything you need to know about basic coverage, minimum requirements, and the costs associated with it. And, see the pros and cons of basic car insurance vs the full coverage of standard auto insurance.

Is Budget Auto Insurance Good Enough? Total Guide to Basic Coverage

Budget auto insurance is not the best car insurance option for every driver, because it leaves most drivers underinsured. To be underinsured is for your auto insurance policy to fall short of covering the full cost of a claim. Basic coverage enables you to be road-legal for the least possible monthly premium – but there are pros and cons to choosing the bare minimum auto coverage.

Driving without insurance is not only illegal but extremely financially risky. Your health and wellbeing aside – uninsured drivers are saddled with the entire cost of any expenses in the event of a car accident. These expenses can include those associated with repairing or replacing your vehicle, other vehicles involved in the accident, damage to personal property, medical expenses for yourself and others involved – etc.

For obvious reasons – driving uninsured is illegal to ensure coverage for these circumstances. So, the basic budget car insurance you can purchase to fulfill your legal insurance requirements is, often, liability insurance.

Basic Auto Liability Insurance vs Full Coverage Auto Insurance

The least-expensive budget auto insurance option in most states is basic liability insurance. Basic liability car insurance provides coverage for property damage and bodily injury that you cause in the event of an auto accident. Basic liability protects other people and things from you – not the other way around.

Opting for budget auto insurance means that you are sacrificing coverage for your vehicle, yourself, and your passengers. In the event of a car accident, basic liability car insurance does not cover damage to your car or medical costs for injuries sustained by you or anyone else in your car. If you cause an accident, to cover damage to your vehicle and those riding in it you need auto collision insurance.

Collision insurance provides coverage for your car and passengers if you cause an accident, but it does not cover damage sustained from something other than an accident. For damage caused by natural events (floods, falling branches, etc.), vandalization, and theft, you need comprehensive coverage. Full coverage auto insurance is the combination of basic liability, collision, and comprehensive coverage in a single policy.

Pros and Cons: Basic Liability vs Full Coverage

Most states require basic liability coverage, at minimum for drivers to be street-legal. You might be considering cutting back on your coverage if you are suffering from financial hardship. Going down to the bare-bones liability coverage can be a more frugal option, but it carries a higher financial risk if you are involved in an auto accident of any kind. Remember, liability protects others from damage or injury caused by you but does not protect you from damage or injury caused by others.

Sometimes you don’t have a choice but to cut down your expenses to the bare essentials. In this case, basic liability coverage is the best budget auto insurance option to keep you legal. Aside from financial hardships, basic liability is also useful when trying to find affordable coverage on an old vehicle.

Build an Auto Policy that Meets Your Needs and Your Budget

Older cars might incur higher premiums on full coverage because of the higher price for repairs in the event of an accident. Especially if the vehicle does not see frequent use, minimum coverage budget auto insurance is a practical option. But, if you drive the vehicle with any frequency, minimum coverage leaves you exposed to possible financial hardships down-the-road.

If you don’t carry collision coverage you are exposing yourself to medical financial burdens in the event of bodily injury to you or the passengers in your car. And, if you don’t carry comprehensive coverage, you are not protected from loss due to theft and damage from fire, floods, or hurricanes. So, if you can afford full auto coverage it will provide the most p[rotection for you, your car, your passengers, and that of others in the event of an accident.

Many drivers, however, cannot afford full auto coverage for one or all of their vehicles, which means you have to work with an insurance company to create a policy. Insurance agencies can bundle together different coverage options to build a customized policy to suit your needs and budget. Talk with an auto insurance associate to start building a budget auto insurance policy that meets your current needs.