What's the difference between Replacement Cost and Actual Cash Value coverages?

Answer

Actual Cash Value (ACV) and Replacement Cost (RC) coverage options refer to different ways your belongings may be replaced in the event of a covered loss. Many of your belongings will decrease in value over time, so it’s important to consider this when you purchase coverage for protecting your property. Although both coverages are based on the cost today to replace damaged property with new property, the difference between the two comes down to the deduction for depreciation.

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What are Comprehensive and Collision coverages?

Answer

Collision coverage helps pay for the damage to your car after an accident involving another vehicle. Comprehensive coverage helps pay for damage to your car from vandalism, weather, and accidents involving animals.

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What is an umbrella policy and why do I need one?

Answer

A personal Umbrella Policy is a liability insurance policy that provides an extra layer of coverage over and above your underlying insurance policies, which may include home, auto, boat, and rental properties. Commercial Umbrella Policies provide excess coverage over the top of business, business auto, and often times workers compensation policies. The excess layer of liability protection offered in an Umbrella Policy is a very cost effective way to protect your assets. You have more to protect than you think, so think about it.

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What is the difference between Universal and Whole Life insurance?

Answer

Whole Life and Universal Life insurance are both permanent insurance policies; meaning they are designed to last your entire life and won’t expire as long as premiums are paid. They both also can accumulate cash value that you can borrow against tax-free. There are differences, though. For example, Universal Life policies have flexible premiums that allow you to change how much you pay each year, as long as a minimum amount is payed so that the policy won’t lapse. Universal Life policies also can earn a higher interest rate than Whole Life, thereby resulting in lower premiums for the same amount of coverage. Furthermore, interest on Universal Life policies is often adjusted monthly, whereas interest on Whole Life policies is adjusted annually.

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