Every day we hear on the news about someone dying and leaving family members behind. Some times, they have no surviving relatives while other times they leave behind a spouse and children. What happens to that persons’ debts, bills and funeral expenses? That’s where life insurance plays an important role.
There are differing viewpoints about how much life insurance one should purchase. One article may state a person should carry an amount that is twice their annual income, while others say three times or more. Other times, you'll see recommendations for what seems like an exorbitant amount.
Every situation is different. The best factor to determine how much life insurance is enough for you or your family is to evaluate your living expenses now. Many families today have a mortgage payment, car payment(s), credit card payments, health, auto and life insurance payments and the normal monthly utility bills. Many families today are two-income families with two spouses working fulltime. However, some families still manage to get by with only one person working and the other being a stay-at-home parent.
If you have mortgage insurance and insurance on your car loans and credit cards, they will be paid in the event of your death. This would certainly be a relief to your spouse. However, you will still need enough life insurance for your spouse and family to live comfortably for a few years, if not more. With you deceased, you may want your spouse to be able to stay at home with the children and take care of the home. With this in mind, you'll need a large enough amount of life insurance so it can be invested for the future of your family.
If you don't have mortgage and loan insurances, you'll want to have enough life insurance to pay off all the debts and still have enough for your spouse to live comfortably, by investing in college funds for the kids or to get by for a few years.
These are the factors you need to consider when determining how much life insurance you need. After paying off all debts, multiply the amount it would cost to live for one year by the number of years you'd like your spouse to be provided for financially. Now you're ready to contact an insurance agent.
Showing posts with label FAQ. Show all posts
Showing posts with label FAQ. Show all posts
Thursday, October 9, 2008
What you should do after an Automobile Accident
Question: What should I do at the scene of an accident?
Answer: Immediately stop at the scene.
• Call 911 if there are injuries.
• Call the police. In some areas police authorities may not come to every accident scene. They may consider factors such as the severity and location of the accident (e.g., some police authorities will not come to the scene if the accident is on private property). However, you should attempt to notify the police. You should also be aware that most policies require notification of police within a specified time period if the accident is a hit and run. Obtain names, addresses, telephone numbers, and driver’s license numbers from all drivers.
• Obtain license plate(s) and vehicle identification numbers. Ask to see driver’s license(s) and vehicle registration(s) to verify that the information is accurate.
• Obtain names, addresses, and telephone numbers of other passengers and any witnesses.
• If you have a camera, take photographs of the damage, the position of the cars, and the accident scene (e.g., traffic controls, visual obstacles).
• If the owner of a damaged car or damaged property cannot be located, leave a note with the names and addresses of the driver and owners of the involved cars.
• Notify your agent and/or your insurance company immediately.
• If anyone is injured or the vehicle damage exceeds $750.00, you must report the accident to the Department of Motor Vehicles within 10 days. Failure to notify the DMV may result in the suspension of your driver’s license.
You should not:
• argue with other drivers and passengers. Save your story for the police and your insurance company.
• sign statements regarding fault or promises to pay for damage.
• If another party offers to pay your deductible, don’t sign anything releasing him or her from further responsibility. By releasing the other party, you jeopardize your insurance company’s subrogation right, and the company may refuse to pay for damage to your car.
Answer: Immediately stop at the scene.
• Call 911 if there are injuries.
• Call the police. In some areas police authorities may not come to every accident scene. They may consider factors such as the severity and location of the accident (e.g., some police authorities will not come to the scene if the accident is on private property). However, you should attempt to notify the police. You should also be aware that most policies require notification of police within a specified time period if the accident is a hit and run. Obtain names, addresses, telephone numbers, and driver’s license numbers from all drivers.
• Obtain license plate(s) and vehicle identification numbers. Ask to see driver’s license(s) and vehicle registration(s) to verify that the information is accurate.
• Obtain names, addresses, and telephone numbers of other passengers and any witnesses.
• If you have a camera, take photographs of the damage, the position of the cars, and the accident scene (e.g., traffic controls, visual obstacles).
• If the owner of a damaged car or damaged property cannot be located, leave a note with the names and addresses of the driver and owners of the involved cars.
• Notify your agent and/or your insurance company immediately.
• If anyone is injured or the vehicle damage exceeds $750.00, you must report the accident to the Department of Motor Vehicles within 10 days. Failure to notify the DMV may result in the suspension of your driver’s license.
You should not:
• argue with other drivers and passengers. Save your story for the police and your insurance company.
• sign statements regarding fault or promises to pay for damage.
• If another party offers to pay your deductible, don’t sign anything releasing him or her from further responsibility. By releasing the other party, you jeopardize your insurance company’s subrogation right, and the company may refuse to pay for damage to your car.
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