The Skinny on Life Insurance

If you have any dependents that fall under your responsibility – children, spouse, a special needs adult – it may be time to have the life insurance policy conversation. It’s not always a pleasant thought, but it’s certainly necessary to consider if you are the primary caregiver to another person. In the event of your death or serious illness, the money needed to support loved ones comfortably in your absence can hard to come by and having a policy in place beforehand will make it easier.

At Cleary, we make sure that a life insurance policy is tailored to your specific wants or needs. The two most common types of insurance are term and whole life insurance, both of which can benefit you and your loved ones in a variety of ways.

Term Life Insurance, often regarded as the simplest and least expensive plan, provides coverage for a fixed period of time and typically may be renewed after the initial contract term expires. However, this offering does not provide savings.

On the other hand, Whole Life Insurance provides life insurance protection for as long as you live. Whole life policies also provide for the accumulation of cash value on a tax-deferred basis which can be used when you need it, to help with life’s opportunities.

Again, we know it’s not the prettiest thought, but it can be a comfort to know that the money afforded through these plans can help your family’s daily living expenses, the mortgage of your house or debts, and so on.

4 Questions to Ask Yourself When Considering Renter’s Insurance

When most people think about insurance, they associate it with buying a car or home. Renter’s insurance is often overshadowed in this way. Even though renter’s insurance is not always required, it’s still important when considering the net worth of your personal items.

At Cleary, we recommend renter’s insurance so that you’re protected against the damage or loss of personal property when you rent an apartment or house and have liability protection in case any lawsuits are made against you.

For example, if someone gets hurt on your rented property, and he or she decides to sue you, renter’s insurance will likely pay for both the injured person’s medical expenses as well as a lawyer.

Sounds pretty good, right?

Here are a few questions to ask yourself when you consider renter’s insurance:

  1. How much would it cost to replace my belongings if they were damaged or stolen?
  2. Could I afford to replace them?
  3. Do I live in an area prone to theft or other destructive forces?
  4. Can I afford Replacement Cost* coverage over Actual Cash Value (ACV)**?

* Replacement Cost refers to the cost of replacing lost or damaged items

** ACV involves the monetary reimbursement for what the item would have been worth by an insurance company.

If you’re still having trouble deciding, contact us and we’ll give you the skinny on renter’s insurance.

Insurance for Your College Student

Renters Insurance
So you’ve kicked off your kid’s college career with a new laptop and some other expensive high-tech gadgets. Now it’s time to follow up to ensure his or her property is safe in the event of theft, fire or other mishap.

In general, protecting a student’s personal property boils down to a simple rule: If your child is living on campus and going to school full time, your homeowners, renters or condo insurance policy (including liability protection) will cover his or her gear. But if he or she moves off campus, your policy most likely won’t protect his or her assets. Ditto if your students starts taking fewer classes.

Kids who change their permanent home addresses on such legal documents as driver’s licenses or tax returns (say, to qualify for in-state tuition at a public university) are no longer considered official parts of your household. They’ll need their own renters insurance.  Students who rent a shared apartment will need insurance, too, but be aware that they might have a tough time getting it. That’s because insurers might not sell a policy to a student unless everyone in the household has his or her own policy, too.

Auto coverage
Congratulations if your college student left the car at home. You might have some savings coming to you. But to get it, your student’s school needs to be at least 100 miles away. If you meet this criterion, give your insurer a call. You’ll generally receive about 10 percent off your premium.

Did your child leave with the car?   It is important to call your insurance broker and discuss your options.  The insurance carrier could conceivably raise your rates if the vehicle’s moved to a different location.