Life Insurance - What You Need and Why
What is life insurance? Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, and cover burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. People often wonder if they really need life insurance, and if so, why. We’ll answer those questions and more below.
How Much Life Insurance Do I Need?
Why is life insurance necessary and important? If you have a family, or others who depend on you, it’s vital that you plan for their care in the event something happens to you and you are no longer here to provide for them. Unless you have substantial savings, life insurance is the life raft that will keep your loved ones afloat after you’re gone.
How much life insurance do I need? This question is highly individualized and depends on the size of your family, your savings, your debt and other factors. It’s best to meet with your agent and go over the list of items that need to be taken into account to determine the proper amount of insurance to cover expenses.
Are there different types of life insurance? Yes - There are 2 types of life insurance policies.
Whole Life - This type of insurance is sometimes thought of as a combination of a life insurance policy and a savings or investment plan.
- Protects your family against the destruction of your business or estate taxes after your death
- Your policy has cash value.
- The premiums are significantly more expensive than those of term life insurance (see below).
- Term Life - This type of insurance is a contract between you and the insurance company for a set amount of time.
- You pay a monthly premium for the policy (these can be as low as $15 and even less if you’re in good health) for the set amount of time and if you die during this period of time, the insurance company pays your beneficiary the amount of the policy.
There are 2 simple ways to save on your insurance premiums that are within nearly everyone’s reach:
- Be a Non-Tobacco User - Non-tobacco users can save as much as 50% on their insurance premiums, compared to their tobacco-using counterparts.
- Normal Body Mass Index Number - That nagging number can be a money saver when it’s within the “normal” range. That’s right, staying fit makes a difference on your waistline AND your insurance premiums!
Life insurance is an important piece of your planning. We understand that navigating the right type, amount, carrier and premium can seem overwhelming! We’re here to walk through the policies you may already have in place and help you find the exact products that best fit your needs and the needs of your loved ones.
Call us for a review of your current policies and to help you find the perfect products and policies to bring you and your loved ones peace of mind: (530) 674-3430.
Posted on December 19, 2016 by Tyler Campbell.
Supplemental Insurance Questions Answered
Health Insurance has been a hot topic in the recent years. Supplemental Insurance can be your safety net for the items your main Medicare policy provided by social security. Medicare supplemental coverage can cover the 20% Medicare does not. We’re here to answer your questions about what Supplemental Insurance is and how it can be an important piece of being properly covered.
Supplemental Insurance Questions and Answers
- What is Supplemental Insurance? - Supplemental Insurance is an insurance policy that covers the gaps that can exist in your healthcare coverage due to copays and deductibles.
- How do I know if I need a Supplemental policy? - Supplemental policies can make financial sense if you have a high-deductible plan. Due to rising costs, a high-deductible plan may make have been your policy choice. But when the unexpected happens, an affordable Supplemental policy can help pay the deductible and costs or they may pay out a lump sum when you are eligible for the needed coverage.
- What kinds of Supplemental Insurance policies are available? - The most common Supplemental policies include; vision, dental and accident coverage. You can also get an additional prescription plan over and above what is provided on part B of your social security.
- Why pay for Supplemental Insurance when I’m already paying for a Healthcare policy? - Supplemental Insurance is very affordable; commonly these plans are as low as $12 per month for an individual and between $20-$30 per month for a family. This cost is far less expensive than covering a high-deductible when the unexpected occurs.
Navigating the pros and cons of Supplemental Insurance can seem overwhelming. We’re here to help you find the best coverage and policies that make the most sense for you and your specific needs. We’re happy to review your current coverage and to help you fill in the gaps for the most complete coverage possible.
Contact us and let’s review your coverage as you prepare for 2017!
Call 1-800-251-0762 to make an appointment.
Posted on November 30, 2016 by Tyler Campbell.
Back-to-School for Businesses: Worker's Compensation Insurance
It’s Back-to-School time again, and while it’s the perfect time for students to pick up their learning, it’s also a great time for businesses to refresh their knowledge on their insurance coverage. If you’re a business owner, Worker’s Compensation Insurance is an area you may want to brush up on. We’ve put together a checklist of what you need to know and are here to help you make sure that each item is being taken care of for your business.
Worker’s Compensation Insurance 101 for Businesses
- Worker’s Compensation insurance became mandatory for California employers in 1913.
- California Labor Code requires all employers (with at least one employee) to carry workers’ compensation insurance.
- The Worker’s Compensation System is a no-fault program. This eliminates litigation over whether employers were negligent in causing workers’ injuries.
- Your employees, by law, may not help with the cost of Workers' compensation insurance. It is part of the cost of doing business. An employer cannot ask employees to help pay the insurance premium.
- Upon state approval you are able to purchase self-insurance if your company meets requirements outlined here.
There are three parts to the worker’s compensation system:
- Benefit structure - Defines what injured workers are entitled to receive
- Benefit delivery - Benefits are primarily distributed through authorized insurance companies
- Benefit financing - Employers may finance their liability for worker’s compensation benefits through one of three methods (a) Self-Insurance, (b) Private Insurance or (c) State Insurance.
We encourage employers to take a few minutes to read the Division of Workers' Compensation (DWC) fact sheets and guides for injured workers by clicking here.
Kearby Insurance is here to help employers ensure they have proper Worker’s Compensation Insurance for their employees. We will go over your existing policy and update as needed and explain the finer points of the coverage. If you’re just opening your business, please make an appointment to sit down with us and we’ll help ease your mind by getting you into the proper Worker’s Compensation Insurance policy.
There are a lot more details to cover when it comes to refreshing your business's insurance needs, so we invite you to participate in a free, no-obligation consultation call to make sure you are properly covered.
Please call us at: 1-800-251-0762. We look forward to helping you!
Posted on September 12, 2016 by Tyler Campbell.
Stay Protected with Crop Insurance
At Kearby Insurance, we’re proud of our local Yuba and Sutter Buttes farmers and their dedication to providing quality produce to our communities. After working with farmers for the past 40 years, we understand the financial risks, as well as the strict adherence to the policies and provisions that are involved. If you’re a farmer, keep reading about how Kearby Insurance can help you with crop insurance.
How Crop Insurance Works
Federally subsidized crop insurance is available to farmers if their crop is eligible for their area. However, the only crop insurance provided in this case is 50% catastrophic coverage. As a farmer, you’ll need to purchase additional coverage to ensure proper protection against the uncertainty of natural occurrences. Luckily, Kearby Insurance has been working in the Yuba-Sutter area for decades and can help local farmers find the best crop insurance solution for the needs of our area. We live in a vibrant agricultural zone with a diverse variety of crops, including:
These are just a few of the rich yields found in our surrounding area according to the most recentSutter County Crop and Livestock Report. Whichever crops you are planning to grow and insure, we are committed to helping you find the right policy and the proper protection, not only for your crops, but your farm and even your home. Whether you’re a new farmer or it’s been your family’s way of life for generations, we understand that before we can get the right policy for you, we must properly address your risk management needs, such as:
- California Drought
- Rice Revenue Protection
- Whole-Farm Revenue Protection
As well as the many other concerns that are attached to the farming way of life. We encourage you to visit the USDA Risk Management Agency website for FAQ’s of specific crop policies and provisions that govern eligibility and indemnity by clicking here.
These are exactly the situations our crop insurance can help cover, because you can never predict what Mother Nature will throw at you!
We’re proud to help our local farmers obtain the additional crop insurance needed to keep their harvests and their farms safe. Call us today for a review of your current policy. We’ll help you keep all of your hard work protected against the uncertainty that Mother Nature can bring. 530-674-3430
Posted on August 23, 2016 by Tyler Campbell.
Fire Insurance: Don’t Let What Matters Go Up In Smoke
The term “Fire Season” is something we get used to hearing during the summer months. It’s true that the hot, dry weather of California summers add to the possibility of a fire. But house fires are something that you should protect your home and valuables against, all year long.
Fire Insurance is a specialized insurance policy beyond your property insurance, designed to cover the cost of replacement, reconstruction or repair beyond what is covered by the property insurance policy.
Covering your home, its contents and your valuables against the possibility of a fire is not only important, but will save you from added distress during a difficult time. We are happy to review each of the 4 areas of coverage with you in detail during a free consultation. These areas are:
- Dwelling - The structure of the house
- Other Structures - Structures on the property that aren’t directly connected to the house
- Personal Property - Items within the home (not all items are covered)
- Loss of the Use - The cost of additional living expenses due to loss of your home
Call us at (530) 674-3430 for a quote or to schedule a free consultation to make sure you’re properly covered.
Posted on July 15, 2016 by Tyler Campbell.
How Good Health Habits can Benefit Your Insurance Premium
Did you know that Life insurance companies take your health and habits into account when calculating your premium?
It’s true! Your healthy habits make a difference!
There are 2 simple ways to save on your Insurance Premiums that are within nearly everyone’s reach:
- Be a Non-Tobacco User - Non-tobacco users can save as much as 50% on their insurance premiums, compared to their tobacco-using counterparts.
- Normal Body Mass Index Number - That nagging number can be a money saver when it’s within the “normal” range. That’s right, staying fit makes a difference on your waistline AND your insurance premium!
Sticking to a healthy routine of eating right, exercise and being tobacco-free are ways each of us can make a difference in the quality of our daily lives. The benefits aren’t only for ourselves, but for our loved ones and will be felt across all aspects of our lives.
We live in a great place for getting outside and staying active! Our local, Yuba City Parks and Recreation programs offer several activities and places to get outside and get active!
We’re always happy to review your current policy to help you save on your premiums! Give us a call at (530) 674-3430.
Posted on June 13, 2016 by Tyler Campbell.
Flood Insurance: Misconceptions and Needs
Most of us don’t realize that flood insurance is an important part of being fully insured, no matter where we live.
When you purchase your home and your homeowners insurance, you might think you’re covered for anything that can happen to your home and its contents. Unfortunately, flood damage is not included in that coverage.
Here are some common misconceptions about flood insurance:
- Flooding won’t or can’t affect you
- You don’t need flood coverage right away
- Minor damage due to flooding is covered n homeowners insurance
We know it’s easy to let flood insurance slip your mind, but consider these facts:
- In the last 5 years, all 50 states have been affected by flooding or flash floods
- Homeowners Insurance does not include any flood damage
- Everyone lives in a flood zone (it’s true!). Click here to view flood zones for more info
- In most cases, it takes 30 days after purchase for a policy to take effect, so it's important to buy insurance before you actually feel threatened by the weather
Flooding can happen anywhere.
Call us at (530) 674-3430 to review your current homeowner’s policy and we’ll help you get the proper flood coverage for your area. We’ve got you covered!
Posted on May 17, 2016 by Tyler Campbell.
Homeowners Insurance - What you Should Know
Your home is likely the largest investment you will make. It holds all your memories, your belongings and protects your family. It’s a treasured possession and needs extra care when being insured.
Homeowners insurance protects you, as a homeowner, against loss from theft, fire, storms, and other things that can cause damage to your home and your property. What homeowners insurance protects against (or "covers") is stated in your written insurance policy. Most policies — but not all — cover your home and the personal property in your home, such as furniture, appliances and clothing.
Most homeowners insurance policies cover medical payments and any money that you would have to pay if someone got hurt while on your property.
What does a homeowners insurance policy cover?
Most policies cover loss and damage due to:
- Damage from vandalism
- Smoke damage
- Storm damage
Most policies do not cover:
- Damage by floods
- Earthquake damage
- Termite or other insect damage
- Loss from normal use of your home or property
The monetary amount you've insured your home for is the most important number to consider. For example, if your home is insured for $100,000, this is the most you will be able to get from the insurance company if your home is destroyed. The amount of coverage on your home is listed on the first page of your insurance policy, called the "Declarations Page". Make sure your total coverage is enough to rebuild your home if it is totally destroyed.
If a fire destroys your home, your homeowners policy will also pay for your loss of personal property, such as furniture and appliances.
To make sure you get the right amount of coverage, make a list of all of the belongings in your home and how much they are each worth.
- Write down the serial numbers of all electronics and technology
- Take pictures of each item to keep on file
- Store them in the cloud if possible
- If you don't have cloud storage, keep the list and photos off your property and somewhere that you consider to be safe
- A bank safety deposit box is a good secure location
It’s a lot to think about and to prepare for, but it’s well worth the effort! Even if you think you’ve checked off every box and that all your possessions are adequately covered, it’s a good idea to have your policy reviewed and updated annually.
Call us for a review and assessment 1-800-251-0762. We’re here to help!
Posted on April 5, 2016 by Tyler Campbell.
Top Reasons You Need Life Insurance
In recent years, the economic changes have many Americans making difficult decisions about their budgets and unfortunately Life Insurance isn’t always at the top of their lists. Imagine how difficult the already tight-budget lifestyle can be, if an emergency, lost job or death in the family occurs.
Talking about Life Insurance can be uncomfortable because it means opening up all the topics of the "bad" or "unexpected" things that can happen in our lives and to our families. We would like to help change that perspective for you. Think of it as a way to highlight all the good things that can come from proper planning.
Protection for your family and your loved ones:
- The unexpected is always a possibility. A sudden death, no matter the cause, leaves a family with so much to deal with. Proper Life Insurance can eliminate debt from the loss of income as one of the issues that a family has to worry about.
Support in case of unexpected illness:
- We never expect to get ill or need special care. If this happens, Life Insurance can provide the protection you and your family may need through financial support.
- Create and Leave an Inheritance:
- You may not have other assets to leave your heirs, but by purchasing Life Insurance and naming your beneficiary or beneficiaries, you can create an inheritance. This is a way to set your children up for success with financial needs that can arise. This is also a great way to ensure that a charity that you would like to support is left a lasting gift.
- Money cannot, and will not, replace a loved one, but the peace of mind that Life Insurance and financial stability can bring in the face of sudden tragedy or uncertainty are valuable enough to merit having these conversations and implementing proper planning.
- It just makes sense for peace of mind:
Let us help set you and your loved ones up for success. Call today for your consultation 530-674-3430 or toll free at 1-800-251-0762.
Posted on February 9, 2016 by Tyler Campbell.
Open Enrollment Ends January 31st - Your Health Insurance is Important!
You’ve probably been hearing the buzz about the Open Enrollment period. Do you know the facts? According to HealthCare.gov the important dates and information are;
- November 1, 2015: Open Enrollment started — first day you can enroll in a 2016 insurance plan through the Health Insurance Marketplace. Coverage can start as soon as January 1, 2016.
- December 15, 2015: Last day to enroll in or change plans for new coverage to start January 1, 2016
- January 1, 2016: 2016 coverage starts for those who enroll or change plans by December 15.
- January 15, 2016: Last day to enroll in or change plans for new coverage to start February 1, 2016
- January 31, 2016: 2016 Open Enrollment ends. Enrollments or changes between January 16 and January 31 take effect March 1, 2016.
If you don’t enroll in a 2016 health insurance plan by January 31, 2016, you can’t enroll in a health insurance plan for 2016 unless you qualify for a special enrollment period.
Navigating the options can seem overwhelming. Don’t worry, we can help! With a little bit of information, we can help you find the policy that’s right for you and your family.
Often, customers ask if it’s really necessary to have health insurance. It absolutely is! Life can change in an instant and knowing that you have the coverage you need for the care that may be required, is well worth it. And if you are uninsured, did you know there’s a tax penalty? The penalty has increased each year since it’s inception in 2014. To get an idea of what you may be expected to pay for remaining uninsured, follow this link for more specifics.
Call today 530-674-3430 to let us help make sense of health insurance.
Posted on January 4, 2016 by Tyler Campbell.