FREQUENTLY ASKED QUESTIONS
General Insurance FAQs
Insurance provides financial protection against unexpected events, such as accidents, illnesses, or property damage. It helps cover expenses that would otherwise be a significant financial burden.
Premiums are the amount you pay for your insurance policy, typically on a monthly or annual basis. They vary based on coverage, risk factors, and provider guidelines.
Rates depend on factors like age, health status, driving record, location, claims history, and the type/amount of coverage selected.
Life Insurance FAQs
Life insurance provides a payout to your beneficiaries after your death to help cover financial needs like funeral expenses, debts, or income replacement.
- Term Life: Covers a set period (e.g., 10, 20, or 30 years) and pays a benefit if you pass during that term.
- Whole Life: Offers lifetime coverage with a cash value component.
- Universal Life: A flexible policy with adjustable premiums and a cash value.
It depends on factors like income, debt, dependents, and future financial goals. A common rule of thumb is 10-15 times your annual income.
Some policies require a medical exam, but no-exam and simplified issue policies are available for faster approval.
Most policies have a grace period (typically 30 days). If the premium isn’t paid, the policy may lapse, though reinstatement may be possible.
Yes, you can hold multiple policies to meet different financial goals.
Your coverage ends, but you may have options to renew, convert to permanent insurance, or buy a new policy.
Generally, life insurance death benefits are tax-free for beneficiaries. However, interest earned on the payout may be taxable.
Long-Term Care Insurance FAQs
Long-term care insurance (LTCI) helps cover the cost of extended care services that are not typically covered by health insurance, Medicare, or Medicaid. It includes assistance with daily living activities such as bathing, dressing, and eating.
It’s recommended for individuals who want to protect their assets and avoid the high costs of long-term care. It’s especially beneficial for those with a family history of chronic illnesses or those without family members who can provide care.
- In-home care services
- Assisted living facilities
- Nursing homes
- Adult daycare
- Home modifications for accessibility
- Respite care for family caregivers
Most policies exclude pre-existing conditions, mental disorders (except for Alzheimer's and dementia), and care outside the policy’s coverage area.
Costs vary based on age, health status, policy coverage, and benefits. Premiums are typically lower if purchased at a younger age.
The best time to purchase is in your late 40s to early 60s, while you're still healthy and premiums are more affordable.
It depends on the condition and the insurance provider. Some companies may offer coverage with exclusions, while others may deny coverage for certain health conditions.
A hybrid policy combines life insurance with long-term care benefits. If long-term care is not needed, a death benefit is paid to beneficiaries.
- Medicare: Only covers short-term skilled nursing care after hospitalization but not custodial care.
- Medicaid: Covers long-term care but only for individuals with very low income and assets.
The elimination period is like a deductible, meaning you must pay for care out of pocket for a set time (e.g., 30, 60, or 90 days) before the policy starts covering costs.
Property & Casualty Insurance FAQs (Auto, Home, Renters, & Business)
It covers damage to your home and belongings from events like fire, storms, theft, and liability if someone gets injured on your property.
No, flood insurance is separate and must be purchased through the National Flood Insurance Program (NFIP) or private insurers.
It protects you if someone is injured on your property or if you accidentally cause damage to someone else’s property.
- Actual Cash Value (ACV): Pays for damages based on the depreciated value of the item.
- Replacement Cost: Covers the cost of replacing the item with a new one of similar quality.
- Liability: Pays for damages/injuries you cause to others.
- Collision: Covers damage to your car in an accident.
- Comprehensive: Covers non-collision incidents like theft, vandalism, or weather damage.
- Uninsured/Underinsured Motorist: Covers your expenses if the other driver has little or no insurance.
It depends on your policy. Many full-coverage policies extend coverage to rental cars, but it's best to check with your provider.
In most cases, car insurance follows the vehicle, meaning your policy would cover the accident, regardless of who was driving.
Umbrella insurance provides additional liability coverage beyond your standard home, auto, or business policies. It’s useful for high-net-worth individuals or those wanting extra protection.