Insurance Learning Center
We make it easy!
We know insurance can be a challenge and we’re here to help! No matter what business you’re in, our goal is to deliver the best services and solutions for your home, business and family. When circumstances change, we’ll be there, we want to be your trusted advisors for the long haul.
- Expert Advice — when your circumstances change, we want to be your trusted advisors and can help review your coverage options
- Accurate Evaluations — with 15+ years experience, we’ll be your advocate when picking policies from multiple companies to ensure you get the right coverage and best value
- Financial Stability — we recommend only working with A rated organizations to ensure the insurer you’re considering is financially stable
- Customer Service — we’re here when you need us, our agent advisors are always just a phone call away
Types of Insurance
What Kind of Coverage Do You Need?
Before calling the insurance company and getting your insurance quote, take the time to decide what kind of coverage you need. In every state, you have to have at least liability coverage. Liability insurance pays on your behalf for damages due to an accident or loss that is your fault. You also need to decide if you would like to add comprehensive and/or collision insurance coverage, which are optional coverages in most states. If your auto is financed or leased, these contracts generally require comprehensive and collision coverage. Additionally, they generally require you to have liability insurance in amounts that are greater then the state minimums. You should review your contract to ensure that you the required coverage. Comprehensive insurance coverage is insurance that helps pay for losses to an insured auto due to fire, theft, or other losses that are not the result of a collision as stated in the insured’s policy. An insurance deductible can apply depending on the insured’s requests at the start of the policy. In most states this is an optional coverage and is not usually a required coverage. Collision insurance coverage is coverage that pays to repair or replace your auto after an auto accident. A deductible can apply depending on the insured’s requests at the start of the policy. In most states, insurance collision or accident coverage is an optional and is not usually a required insurance coverage. If you choose comprehensive and collision coverage, you will need to decide what deductible amounts you would like. A deductible is the amount that you pay before the insurance policy kicks in. The amount of your deductible is the single most important factor in the cost of your auto insurance. Talk to the professionals at FarmerBrown.com, to go over all these factors so you can get an auto policy crafted to meet your specific needs. Protect your automobile now. Obtain homeowners insurance overage now by requesting a free on-line quote. It’s competitive, fast, and convenient. If you have any questions while filling out the online application, please call the toll free numbers displayed or click on the on-line chat icon and a licensed FarmerBrown.com Insurance agent will assist you.
PERSONAL UMBRELLA INSURANCE
SMALL BUSINESS UMBRELLA COVERAGE
- Term insurance is generally purchased by those with a temporary need for life insurance, or by those with limited budgets.
- Term insurance may be appropriate for specific needs, including the needs of some business owners.
- Coverage for a specific amount of time until you are able to build up assets to cover your needs.
- Coverage for the amount of time the mortgage is for so in the event of an untimely death, the mortgage is taken care of.
- Coverage for those that cannot afford a permanent policy, especially young couples and new parents.
Permanent Life Insurance Permanent life insurance is insurance that you own for your entire lifetime. The amount of the death benefit or face value can be selected to meet your needs. Premiums are fixed and can be paid monthly, quarterly, semi-annually, or annually. As more premiums are paid, your policy accumulates a cash value, which grows on a tax deferred basis. This kind of insurance combines death benefits with a savings component. Permanent insurance, including Whole Life Insurance, Universal Life Insurance and Variable Universal Life Insurance, can provide protection for your entire lifetime, or in certain instances up to a specific age at which point the insurer pays the policy owner the cash value. You can borrow against and in some instances, withdraw to help meet future goals, such as paying for a child’s college education. In order to build up this cash value, you will pay higher premiums. Whole Life Insurance Whole life insurance is life insurance that insures you for your whole life. Over time a savings component, called cash value or loan value, builds and can be used for wealth accumulation. Whole life is the most basic form of cash value life insurance. Regular premiums pay both the insurance costs and fund the savings account. The insurance company will invest these funds in low risk investments. A fixed death benefit is paid to the named beneficiary along with the balance of the savings account. The premiums for this type of insurance are fixed throughout the life of the policy. Universal Life Insurance Life insurance which combines the low-cost protection of term insurance with a savings component that is invested in a tax-deferred account, the cash value of which may be available for a loan to the policyholder. Universal life was created to provide more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy. Additionally, the inner workings of the investment process are openly displayed to the holder, whereas details of whole life investments tend to be quite scarce. Premiums, which are variable, are broken down by the insurance company into insurance and savings. Therefore, the holder can adjust the proportions of the policy based on external conditions. If the savings are earning a poor return, they can be used to pay the premiums instead of injecting more money. If the holder remains insurable, more of the premium can be applied to insurance, increasing the death benefit. Unlike with whole life, the cash value investments grow at a variable rate that is adjusted monthly. There is usually a minimum rate of return. These changes to the interest scheme allow the holder to take advantage of rising interest rates. The danger is that falling interest rates may cause premiums to increase and even cause the policy to lapse if interest can no longer pay a portion of the insurance costs.
Variable Universal Life Insurance Variable universal life insurance is a combination of universal life insurance and variable life insurance in that excess interest credited to the cash value account depends on investment results of separate accounts (equities, bonds, real estate, etc.). You have a choice as to how the cash value is invested — stock and bond mutual funds. However, there is no guaranteed minimum interest rate with a universal life insurance policy. Survivorship Universal Life Insurance Survivorship universal life insurance provides a policy in which two people are covered on one policy. The death benefit is paid upon the second death. The premiums for this joint life policy are significantly lower than a regular policy. Many people take this type of life insurance to help pay estate taxes after the deaths of both a husband and wife. Term Life Insurance vs. Permanent Life Insurance Deciding between term life and permanent life insurance is no easy task. Each policy has its benefits. The younger generation tends to opt for term life insurance. It provides maximum coverage at the lowest premium. However, term insurance also has its disadvantages. This type of life insurance provides a death benefit only for a specific period of time. When the policy expires, so does the protection. While many term policies are convertible to permanent policies, others may not be. So there is the possibility of being uninsurable once the term policy expires. Also, with term insurance, premiums increase with each renewal, so the policy can become very costly. Permanent life insurance, on the other hand, can be the best long-term solution for many. Cash value life insurance provides life-long insurance protection. As long at the premiums are always paid, your policy will never be canceled. Although permanent life insurance premiums are often more expensive than term insurance premiums, your permanent life insurance policy can actually be less expensive in the long-run. This is because most permanent policies pay dividends, which can be applied toward the next payment. Therefore, premium payments may end after several years, yet coverage will continue for life. This kind of policy also allows for future loans, borrowing against your established cash value. Buying a life insurance policy is an important financial decision. Before choosing your policy, be sure you understand the kind of insurance you are buying, as well as the advantages and disadvantages to each policy. For more information on life insurance policies, contact your friendly FarmerBrown.com agent.