What type of life insurance should you purchase?

 Insurance  Comments Off on What type of life insurance should you purchase?
Apr 172012

The topic of obtaining life insurance is something that few people ever want to talk about.  But, having that conversation now could provide great comfort and peace of mind in the future.  Simply put, life insurance protects those who depend on you for financial support. If the unexpected should happen, life insurance provides your dependents with income so they may continue to live comfortably. It can also provide a timely emergency fund for medical, legal, and funeral costs, should family savings not be adequate to cover them.  Here is a brief explanation of each type of policy:

Term life – This is the most inexpensive form of insurance because there are no cash values or dividends. Term policies are purchased for a specific period of time such as 10, 15, 20 or 30 years. If an insured loved one passes away during that time period, a beneficiary is paid the dollar value of the policy.

Whole life – As the name suggests, a whole life policy is protection for someone’s entire life. Premiums, which insurance companies invest, stay the same during the life of the policy. There are cash values, and some companies pay policyholders’ dividends. The cost is higher, but it is considered more effective for estate planning.

Universal life – A valuable coverage and living benefit, universal life policy allows for more flexibility and is more of an investment vehicle, however, increased contributions may be necessary if the investment interest assumptions are not met.

Variable life – A variable policy offers more investment options than a universal life policy, with the policyholder having the ability to select the investment options.

To make sure you and your loved ones are provided for and protected, call your independent, Trusted Choice insurance agent at 401.762.2218.


 Posted by at 5:18 pm

If your home floods … are you protected?

 Insurance  Comments Off on If your home floods … are you protected?
Apr 022012

As we approach the spring season and the likelihood of rain showers, it is imperative that homeowners understand the importance of securing proper flood insurance.  Standard homeowners insurance and renters insurance does not cover water damage resulting from ground water flooding.  Unfortunately, many homeowners learned last Spring that flooding can occur almost anywhere.

Your local independent agent can help to explain your options regarding flood insurance.  Supplemental coverage is available through the National Flood Insurance Program (NFIP).  This coverage provides for up to $250,000 for the structure of the home and $100,000 for personal possessions.  While the NFIP provides replacement cost coverage of your home, it will only cover the actual cash value of your possessions.  This is important, because actual cash value is designed to replace your possessions, minus their depreciation in value – the older your valuables are, the less they are worth.

Most homeowners in designated flood zones typically have the necessary flood insurance; however inland areas are also susceptible.  People living next to rivers or ponds, and even those whose homes reside at the base of a hill should consider their coverage options.  Flood insurance is just as important for renters as it is homeowners.  If your apartment became inundated with ground water flooding, none of your possessions would be covered – thus resulting in a total loss.

If you would like additional information on coverage available through the National Flood Insurance Program, contact your independent, Trusted Choice agent.  Please remember that there is a 30-day waiting period for coverage to take effect so if you are considering flood insurance it is best to act now.


 Posted by at 9:06 pm