FAQ
Automobile Insurance
Q: Do I need to purchase insurance when I rent a car?
A: Your auto policy responds to all your insurance needs with the car rental because it is viewed as a replacement vehicle under your auto policy. That also includes the deductible you have with collision and other than collision. The rental insurance will waiver that deductible so you have no out of pocket expense. You must weight this value against what the rental company will charge you for this benefit. Remember, however, if you DO NOT carry Physical Damage Coverage (Collision and Comprehensive), your policy will not cover the physical loss to the rental car.
Q: What happens if I have an accident?
A: If you have a accident, obtain information on the other party involved which can be obtained from their insurance card (ID card). This includes insurance company name, phone number and policy number. If the police respond, ask when the police report will be available for pickup.
Q: What is Gap insurance, and do I need it?
A: This applies to leased vehicles and represents the difference in amount of the lease value and the vehicle value when a claim is submitted. There are factors involved, including down payments, interest rates, length of lease, etc. The Gap insurance pays the difference to you and/or the leasing company.
Homeowners Insurance
Q: Why do I need Renters insurance?
A: Renters insurance responds to all personal property you own while a tenant and will reimburse you for its loss due to fire, robbery, burglary. Plus you have included in the policy:
# Additional living expenses for motel during repairs
# Medical payments to others if injured while in your apartment
# Personal Liability due to a lawsuit not related to your work or profession.
Q: Should I have Replacement Cost Coverage on my home?
A: Yes, because there is much better coverage under your homeowners policy with this endorsement. The company must respond to the full value of the property in case of a loss. Otherwise, the company would pay only the face amount of the policy and that amount may be lower than the cost to rebuild your home due to inflation costs.
Financial Services
Q: Does it pay to obtain mortgage Life insurance?
A: Yes. The cost is very modest compared to the benefit received. You have the peace of mind in knowing if you are not here due to natural or accidental death, the home would be paid off in-full.
Q: How can I help fund educational costs for my children?
A: Life insurance can provide a death benefit that can help fund your children's education in the event of your untimely death. In addition, some policies have a cash value that builds on a tax deferred basis. By withdrawing cash value down to your cost basis and then by taking policy loans, you can access a supplementary source of funding. Please be aware, however, interest is charged on policy loans and the cash value and death benefit will be reduced by the amount of the loan outstanding.
Q: Do I need life insurance if I created a Trust Fund?
A: It is in your best interest to have life insurance because they are discounted dollars received to meet the immediate needs that arise at death. They are the most liquid assets you will have in your financial planning.