Courtesy of iii.org

Life insurance can form a vital part of your family’s financial stability and well-being but, if you’re like most people, you may find the thought of shopping for the right type of coverage a little daunting. Fortunately, these eight simple steps can guide you along the way.

1. Determine whether you actually need life insurance. Most people do, but not everyone. If no one depends on you financially, if you have no debt and would leave an estate with enough cash to pay its own taxes and expenses, you probably don’t need life insurance. If you do not meet these criteria, you probably will need individual life insurance.

2. Calculate how much life insurance you need. There are two important questions to ask:
   1. What financial resources will be available to survivors after your death? For simplicity, consider three categories of resources: (1) Social security and other retirement-related survivor benefits; (2) group life insurance; and (3) other assets and resources. It is also important to know when these resources will become available—for example, social security survivor benefits are payable immediately to a surviving spouse with dependent children, but only after age 60 if there are no children.
   2. What financial needs will your survivors have after your death. For simplicity, consider three categories of requirements: (1) final expenses; (2) debts; and (3) income needs.
   3. Then subtract your survivors’ financial resources (step #2) from their financial needs (step #3) to determine how large a policy to buy. Many people are underinsured, often because they skip these steps or take a shortcut (such as simply buying a multiple of annual income). For more help in determining the right amount of life insurance, see: How Much Life Insurance Do I Need?

3. Consider other objectives you may have for your life insurance. Some types of life insurance policies include a savings feature that can be used for purposes other than paying death benefits.

4. Determine what type of life insurance best meets your needs. Essentially, there are three types of life insurance policies—term life, whole life and universal life. If you need the insurance for only a specific period of time, or are on a limited budget, a term policy, which has lower premiums, may be a good fit. If, however, you need the insurance for as long as you live and want to accumulate savings, a whole or universal policy may be a better choice.

5. Find out if you need to add any “riders” to the policy. There are two that you should consider—waiver of premium and guaranteed insurability. Some policies come with one or both included with the basic contract but, if not, it is generally a good idea to add them. Waiver of premium pays the life insurance policy premium for you if you are disabled. Guaranteed insurability permits you to add to the death benefit without providing additional evidence that you are in acceptable health.

6. Shop around. There are many ways to save money when buying life insurance, but they don’t always entail paying a lower premium immediately. That said, life insurance is a very competitive business so quotes can vary significantly between companies.

7. Decide whether to pay premiums annually. In most cases, it is better to pay annually rather than in installments because there is often a relatively large additional charge for paying smaller amounts more frequently.

8. Tell your beneficiaries about your life insurance policy. Once the policy is issued, inform your beneficiaries the company that issued it, where to find the paper copy of the policy and any specifics about what you want them to do with the death benefit. While is rare for people to be unaware they are the beneficiary of a life insurance policy, it does happen and you want to make sure that the benefit will not go unclaimed. And store your documents so that they can be easily accessed by your beneficiaries.

Courtesy of http://www.insuringflorida.org/florida-alert-5-days-into-hurricane-season-3-named-storms-already/

We have entered the 2016 hurricane season, and Florida is on alert for a tropical system. It’s the third named storm of the year, and did I mention we are only 5 days into hurricane season? Pay attention please. There has never been 3 storms named this early in the season, which began June 1 and continues through November 30. Keep track of things locally, through the national Weather Prediction Center or through state weather status updates from the Division of Emergency Management.

Complacency is the biggest threat to storm preparation. Maybe you don’t scare easily. Maybe you were well prepared every year since the storms of 2005 shook us up. But since then, many people have let their guard down, meaning they relaxed their vigilance. Consider this a reminder that it is time to ramp up your defenses. Here is a hurricane season checklist to put into action – now.

Is your insurance up to date? Have you talked with your insurer in the last year to make sure your coverage is up to date? If you rent, here’s a renter’s insurance checklist so you are protected if a storm blows through.

This storm is named Colin, and AccuWeather said it will likely track through northwestern Florida and race across the northern part of the state. Effects of this storm system are already being felt since it’s been raining in most locales all day today. Hopefully, it’s no big deal. And, hopefully, it can prove to get the attention of those who yawned at hurricane predictions over the past 10 years.

No one (ever) knows for sure what tomorrow brings. But if you know for sure that you have the basics covered, you’ll sleep better tonight.

Courtesy of Insuring Florida

According to the U.S. Census data, in 2010 there were 22 people over the age of 65 for every 100 people. By 2030, that number will rise steeply – with 35 of every 100 Americans being over 65 years old. That’s 19 percent of the population. No surprise that Florida ranks #1 with the most households with senior citizens. Obviously, the need for long-term care insurance will increase.

Most people buy long-term care insurance around age 60, says the U.S. Dept. of Health and Human Services. The younger you are when you buy it, the more likely you are to be accepted for coverage. If you apply in your 50s, there’s a one in 10 chance you’ll be rejected. If you apply in your 60s, the chance of rejection is two in 10, and the odds against you double if you wait to apply for coverage until you hit your 70s. Of course, the younger you are, the lower the premium will be for a given set of benefits and features. Once the premium is set, it stays at that amount for the life of the policy, unless the claims for the group of people who have bought that type of policy require rates for the group be raised to cover claim payments.

You’ve got lots of options in planning for the silver and golden (and platinum) years. Some people think they should invest what they would have paid in long-term care, rather than buying an insurance policy. But that may leave you vulnerable if you need the benefits earlier than planned. Like most things in life, do your homework on long-term care. And, celebrate your years – since this is Older Americans Month, and the theme is “Never Too Old to Play.” I like the sound of that!

Courtesy of iii.org

With Bonnie threatening to develop into a tropical storm over the Memorial Day weekend, the Atlantic could have its second storm before the official start of hurricane season, which starts on June 1 and ends on November 30. Reporters covering Bonnie and the 2016 Atlantic hurricane season can contact the Insurance Information Institute (I.I.I.) for information, analysis and interviews.

Wind damage from tropical storms and hurricanes is covered under standard homeowners, renters and business insurance policies. Flood damage resulting from storm surge caused by hurricanes is excluded under standard policies, however. Separate flood coverage can be purchased from FEMA’s National Flood Insurance Program (NFIP) and from a few private insurance companies.

Damage to cars from tropical storms and hurricanes is covered under the optional comprehensive portion of an auto insurance policy. Comprehensive coverage includes wind damage, flooding and falling objects such as tree limbs.

Courtesy of http://www.insuringflorida.org/the-right-insurance-keeps-your-boat-afloat/

Living in Florida means boating season never ends. With the right insurance protection, your boating days can be as carefree as a day at the beach. The type of insurance coverage you get depends upon the boat.

If you have a small boat, such as a canoe or kayak, you may have coverage under your homeowners or renters insurance policy. Coverage is usually about $1,000 or 10 percent of the home’s insured value. That amount of coverage includes the small boat, motor and anything you may use to tow it. It does not typically include liability insurance.

Extra liability coverage for boaters makes good sense. Some insurers exclude liability coverage for jet-skis under standard property insurance policies because of the high rate of accidents and injuries. Check with your insurer to see what’s covered and ask about additional protection that you can purchase through an endorsement. If you own a jet-ski or plan to rent one, check out ourjet-ski safety video.

People who own small boats need to “go large” on safety. According to the U.S. Coast Guard’s 2013 Boating Statistics, eight of 10 boaters who drowned were in vessels of less than 21 feet. And, 84 percent of drowning victims were not wearing a life jacket. Alcohol use is the leading contributor to boating accidents, along with operator inattention and inexperience. Not unlike the statistics for highways.

To cover physical loss for larger boats (and those valued above $1,000), you need broader coverage. With a watercraft policy or an endorsement to your existing homeowners policy, you’ll be covered for every type of loss or damage to your boat, including theft. There are a few coverage exceptions (such as normal wear and tear). Many boat owners choose a discounted package that covers the boat, motor and trailer.

Some people may decide to go without insurance on their boat because it’s paid in full, so no lender is “forcing” them to get coverage. That’s always an option, I guess, if you can afford to sink your investment. Back in 2004, when Florida experienced multiple hurricanes, you probably saw images of boats slammed together near marinas or flung into streets by high winds, resting a block from the ocean. I remember talking to a woman after Hurricane Ivan who said she had just sunk $10,000 into remodeling her yacht, which was found smashed to bits in a parking lot. “That’s not covered under my homeowners insurance, is it?” she asked. She knew the answer before asking the question, and now so do you.