It's Time Heuer Insurance Took Care of All Your Insurance Needs

Click any question below to find out more information. As always, we encourage you to contact Heuer Insurance Agency directly via phone or email with any questions you may have.

 

I’m just getting my business started. Do I need insurance right away?
What types of business property insurance should I consider buying?
Who decides how much my business property is worth?
What kinds of events does business insurance cover?
Everybody seems to be suing everybody these days. What if someone sues my business?
What about the cars and truck that I have in my business? Is the coverage like what I have on my personal car?
What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?
What actually happens when I report an accident?
Do I need special insurance for a classic car?
Under what circumstance do I not need certain types of auto insurance?
Is there anything I can do to lower my premiums?
What if I am sued or found liable for injury to another person?
I am a renter, not a homeowner. Do I need insurance?
Is my apartment covered under my landlord’s policy?
How are prices determined for renters insurance?
I live in an apartment with three roomates. Do we each need a policy?
I own a condo. How is my policy different?
What about flood, earthquakes and other catastrophes?
I rent out my basement, are my tenants covered by my homeowners policy?
My mother lives with us in a separate in-law suite, are her possessions covered?
What about our vacation home in the next state?
I work out of my home, is my inventory and business property covered?
Help! I’ve lost everything! Where do I start?
Do I really need insurance for my home?
My homeowners insurance is part of the payment I make each month to the mortgage company. Who decides what insurance to get?
I know I have that homeowners policy in a drawer somewhere. What exactly does it cover?
What kinds of perils am I protected against?
I work out of my home. Will my homeowners insurance cover my business?
What is coinsurance all about?
Who keeps an eye on the insurance companies?
What should I look for in an agent?
Which life insurance is less expensive, permanent or term?
If term life insurance is less expensive, why buy permanent?
How much life insurance should I have?
Who will receive the money if I die and how much will they receive?
Does the circumstance of death determine how much my beneficiary will collect?
Who can I name as my beneficiary? How often can I change them?
Are there different types of life insurance I should consider?
Do I have to die to collect life insurance?
Is flood automatically covered under my Homeowners policy?
Is earthquake automatically covered under my Homeowners policy?
Is fire automatically covered under my Homeowners policy?
When I rent a car does my insurance cover my rental?

 

I’m just getting my business started. Do I need insurance right away?

Yes, because the chance that you could suffer a loss begins with the first day of business. You
can’t get help after the fact. If you suffer a loss and have no insurance or have improper or
insufficient coverage, there is very little, if anything, your Heuer Insurance Agent can do to
help you. You must be prepared for the risks that are inherent in any business and the losses that they can cause.

Also, many states and local jurisdictions require that businesses be insured to begin operating.
And if you rent space for your business, your landlord probably requires that you be adequately
insured as well.

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What types of business property insurance should I consider buying?

The best thing to do is to take a complete inventory of all your business property, determine its value and decide if its worth insuring. Then check to see that the items on the inventory list are included in the basic business property policy and covered for the correct
amount. If not, ask the agents at Heuer Insurance Agency, a Trusted Choice® agency.

You also need to consider your business situation. Are you planning a major expansion? Does
your inventory have a decidedly peak season (like a toy store in December)? Or does it
fluctuate throughout the year (like a clothing store)? Is your liability limit high enough in light of
the new job contract you just signed? Business policies are designed to be added to or
subtracted from to meet your needs. Be sure to discuss changes to your business with your
Heuer Insurance agent so that he or she can help you ensure your policy still provides
adequate coverage.

Some common additional coverages for business property include (but are by no
means all-inclusive):

Boiler and Machinery Insurance

Even if you do not own a boiler, you may need this coverage. The term “boiler and machinery
insurance” is gradually being replaced with terms such as “equipment breakdown” or
“mechanical breakdown” coverage. This insurance provides coverage against the sudden and
accidental breakdown of boilers, machinery, or equipment including computer and
telephone/communication systems. Coverage usually includes reimbursement for property
damage, expediting expenses (e.g., express transportation charges), and business interruption
losses.

Builders Risk Coverage

This covers buildings in the course of construction. Depending on the policy, this coverage can
be for either the building’s value at the time of loss or its full value at the time of completion.

Building Ordinance Coverage

Provides coverage when a community has a building ordinance stating that when a building is
damaged to a specified extent (usually 50%), it must be completely demolished and rebuilt in
accordance with current building codes rather than repaired. Special attention is required when
establishing the amount of insurance.

Business Interruption Insurance

This covers the loss of earnings as a result of damage or loss of business property.
Reimbursement for salaries, taxes, rents, and other expenses plus net profits that would have
been earned during the period of interruption can be included.

Commercial Crime Coverages

This covers money and securities, stock and fixtures against theft, burglary and robbery both
on and off the insured premises and from both employees and outsiders.

Debris Removal Coverage

Covers the cost of removing debris after damage from a fire or any other covered peril that requires
debris removal before reconstruction of the damaged building can begin. This is not part of fire
insurance coverage and must be added by endorsement.

Fidelity Bonds

This covers business owners for losses due to dishonest acts by their employees.

Glass Coverage

This provides coverage for glass breakage such as store windows and plate glass on office fronts.

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Who decides how much my business property is worth?

Property insurance can be purchased on the basis of the property’s actual cash value, on its
replacement cost, or on an agreed amount. The differences among the three are:

Actual Cash Value

Is the replacement cost of the item minus depreciation. For example, a new desk may cost $500.
If your 7-year-old desk gets damaged in a fire and its value has depreciated by 50% then the amount you would receive from the insurance carrier is $250.

Replacement Coverage

This coverage pays the cost of replacing an item without deducting for depreciation. So, if today’s
cost for a desk of a size and construction similar to the 7-year-old one damaged by fire would
determine the amount of compensation. If it costs $500 today, that would be the replacement
coverage.

Agreed Amount

Art objects, antiques and other unique items are usually insured at or on an amount agreed upon
when the policy is being written. An appraiser values the goods to be insured and the business
owner and the insurer agree upon an amount that the insurer will pay if the goods are
destroyed due to a covered peril.

Check your policy. If you prefer replacement coverage and do not already have it, this
coverage can be added to your policy. Inflation-guard coverage, automatically increases
your insurance amount a certain percentage, protecting your property against rising construction costs. Your
Heuer Insurance agent can tell you about the costs involved.

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What kinds of events does business insurance cover?

Basic property insurance policies generally cover losses caused by fire or lightning and the
cost of removing property to protect it from further damage (e.g. removing inventory or
equipment from a damaged building so it won’t be stolen). “Extended perils,” including
windstorm, hail, explosion, riot and civil commotion, and damage caused by aircraft,
automobiles or vandalism, are usually covered in a standard policy. Other important perils,
often not covered and considered “optional” in almost all standard policies, include earthquake
and flood damage, building collapse, and glass breakage.

Property insurance can be written as either a “named peril” policy or an “all risk”
policy. A named peril policy provides coverage for those perils specifically named in the
policy. An all risk policy covers loss by any peril not specifically excluded in the policy. The
term “all risk” does not mean that all perils will be covered and, to avoid confusion, is often
replaced with the term “special form” or “special causes of loss” coverage.

Check with your HIA agent on the perils covered by your policy. If you wish, additional coverage can be added.

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Everybody seems to be suing everybody else these days. What if someone sues my
business?

No business can afford to be unprepared for a lawsuit. Liability insurance protects your
business assets when the business is sued for something the business did, or failed to do that
contributed to injury or property damage to someone else. Liability coverage extends not only
to paying damages but also to the attorneys’ fees and other costs involved in defending against
the lawsuit–whether valid or not.

The standard business owners policy provides liability coverage, as does a separate policy
known as a commercial general liability (CGL) insurance policy. Generally, commercial liability
insurance, whether purchased in a separate policy or as part of a standard business owners
policy, will cover bodily injury, property damage, personal injury or advertising injury. The
medical expenses of a person or persons (other than employees) injured at the business or as
a direct result of the operations of the business are also covered.

Usually excluded from both types of liability insurance policies are suits by customers against a
business for nonperformance of a contract and by employees charging wrongful termination,
racial, gender discrimination or harassment.

Check with your Heuer Insurance agent for help finding liability protection covering the
situations that may arise in your business. We find ways to fill in the holes.

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What about the cars and truck that I have in my business? Is the coverage like what I
have on my personal car?

Yes, but in addition to covering the vehicles you own for liability, medical payments, uninsured
motorist coverage, comprehensive and collision, it also covers you when you rent a car and
when your employees are operating their personal cars for your business. Be sure to review
your auto exposures with your Heuer Insurance agent.

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What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered?

Yes, liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So if a friend borrows your car and has an accident, you’re still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy
will also be available to cover the cost of damages and injuries.

The same rules apply when you borrow someone else’s vehicle. Your own insurance follows you no matter whose car you are driving. But the vehicle owner’s policy is the primary if
you have an accident.

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What actually happens when I report an accident?

After an accident, you should call Heuer Insurance Agency as quickly as possible to help you complete a claim form, determine what exactly happened and evaluate any damages or injuries. Your agent will then contact your insurer’s claims adjuster (usually
within an hour of your report) whose job is to work with you to fix the problem. While
compensating you for auto repairs or medical expenses is easy and immediate, determining
liability is more complicated. The adjuster will begin the settlement process, the length of which
will depend on the cooperation of the other party.

The amount of compensation for your loss can vary according to the adjuster’s analysis of the
damage. You do not have to accept the first amount of money you are offered, if it is lower than
the cost of your repair or recovery. While you may have to do some homework to prove your
reported loss is valid, it’s worth it to be certain your insurer lives up to the provisions of your
policy.

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Do I need special insurance for a classic car?

You should always talk to us about insuring your rare and valuable
property. Since a classic car usually cannot be replaced, you’ll probably want ample
compensation if it is lost. A classic car, because it is rare or unique, may indeed require a
special insurance policy.

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Under what circumstance do I not need certain types of auto insurance?

While most drivers today are generally insured for collision and theft, this coverage may not be
necessary for every vehicle.

Liability insurance, as mentioned earlier, is essential and in many states required. But if you
drive an older car that isn’t worth much money, you may be able to do without
collision insurance. If you have an accident, repair costs could easily be higher than the value
of your vehicle, thus “totaling” it. This means your insurer will pay you the total book value of
your vehicle, and that could be far less than the cost of your vehicles repair. So, collision
insurance may not cover your loss adequately.

Since it depends on special circumstances, ask your agent at Heuer Insurance Agency for assistance.

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Is there anything I can do to lower my premiums?

Because your premium is based partly on the level of risk the insurance company must take, there are things you can do to lower your premium. Installing deadbolt locks (to discourage theft), fire extinguishers, smoke alarms, and burglar and fire alarms that alert your local police
and fire stations can often save you up to 15 percent on your premium. Check with your Heuer Insurance agent before purchasing any of these items to see if your insurance carrier
has specific requirements to qualify for the applicable discount.

Many insurers also offer discounts if you insure both your home and automobile with the same
company. Another way to save may be to increase the deductible on your homeowners policy.
If your deductible is $100, it means that you agree to pay this amount first, and your insurance
company will pay for damages that exceed this deductible. By increasing your deductible from $100 to $250, or even $500, this decreases the insurance company’s risk, which may mean a
savings in your premium.

Also, it pays to shop around for insurance coverage just like anything else. Of course, you may want to keep in mind that the extent of coverage also determines the premium cost so the cheapest policy is not necessarily the best. Your agent at Heuer Insurance Agency can help you evaluate the different policies and companies so you can make the choice that is right for you.

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What if I am sued or found liable for injury to another person?

Liability covers bodily injury and property damage to others due to your negligence. The
coverage applies to non-auto accidents that occur either at your residence or off the premises.
Medical expense payments such as first aid can also be due to the injured party. Should you
be sued or suspect that you may be, contact our office immediately

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I am a renter, not a homeowner. Do I need insurance?

The same rule of thumb applies to renters as to homeowners. If a catastrophe struck tomorrow,
could you afford to replace everything you own? Or if you were sued, would you have enough
money to pay legal fees and possibly settle the suit? If not, chances are you would benefit from
the protection that renters insurance brings.

Renters insurance offers the same general personal property coverage and liability protection
as a homeowners policy. Thus, your camera is insured while you are on vacation, and you are
covered if your grandfather clock crashes into the apartment lobby’s wall and leaves a gaping
hole. In fact, most policies are surprisingly extensive and may include additional living
expenses (also called loss-of-use coverage) if you are forced by fire or any other covered peril to live
elsewhere.

 

Isn’t my apartment covered under my landlord’s policy?

No, the landlord’s insurance covers damage to the building and the landlord’s property, but not
your personal property or liability. Plus, you may be liable for damage to the building if it is your
fault. If you go out and leave the stove on and an ensuing fire causes extensive damage to the
entire building, you may be held liable to the landlord.

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How are prices determined for renters insurance?

Renters insurance is surprisingly inexpensive. That’s because you are not insuring a building.
Like all property/casualty policies, the value of your property to be insured and other risk
factors are weighed by the insurance company to determine your premium. Your agent at Heuer Insurance Agency can help you find the best combination of coverage and cost that you determine are right for you.

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I live in an apartment with three roommates. Do we each need a policy?

Usually, it is best if all roommates are on the same policy although it’s possible for each to purchase his or her own coverage. If you do need to “go it alone”, you alone receive the security of renters coverage. Check with one of the agents at Heuer Insurance Agency.

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I own a condo. How is my policy different?

Condo owners insurance covers the same general areas outlined throughout this guide for
homeowners in the important areas of personal property and liability. In addition, condo owners
insurance provides coverage for some situations specific to condominium unit owners.

Usually, the condominium association buys insurance to cover the property (building and
structures) and liability coverage for the general association. If you own a condominium unit,
you may be responsible for covering from the “walls in” on your unit, that is, for your personal
property and the interior of your unit (whatever area is excluded from the condo association’s
policy) as well as for your personal liability.

Sometimes, condo owners are assessed by their condo association for losses “outside the
walls” that were not completely covered by the association’s policy. For example, if the
clubhouse is destroyed and the condo association did not have it insured, you could be
assessed for a “share” amount needed to replace it.

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What about flood, earthquakes and other catastrophes?

Most catastrophes are covered; for example, wind damage from hurricanes and tornadoes
come under the windstorm peril and so they are included. Flood and
earthquake damage, however, are not covered by a standard policy.

Be careful not to be lulled into a false sense of geographic security. Flood and earthquake
activity is more widespread than many people realize. For example almost 90 percent of the
U.S. population lives in seismically active areas. Since 1900, earthquakes have caused
damage in all 50 states. If your home is located in a flood-prone area, you are 26 times
more likely to suffer a flood loss than a loss from fire.

You may want to check with your Heuer Insurance agent about special catastrophic policies
for normally excluded conditions like floods and earthquakes. Of course, the cost of such extra
coverage may reflect the high risk involved. If for example, you live along a shoreline, you can expect to
pay a higher premium for flood coverage than someone living on a mountain top would pay.

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I rent out my basement, are my tenants covered by my homeowners policy?

No, your property and the structure (the basement) are covered by your policy as is your
personal liability. The tenants’ possessions and liability are not covered by your
policy. Therefore, they may wish to purchase their own renters insurance. Whether you are a
lessor or a renter, you should check with your HIA agent to make sure you have
the coverage that is right for you.

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My mother lives with us in a separate in-law suite, are her possessions covered?

As a member of the family, she is probably covered under your homeowners policy. So too is
your child while away at college covered for personal liability, theft or damage to his or her property
even in the dormitory or college apartment. However, you should check with your agent at Heuer Insurance to be sure you have chosen the coverage that is right for you.

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What about our vacation home in the next state?

Insurance companies can operate in more than one state so the company that carries your
primary residence may be able to issue a policy for your vacation home. Personal liability is extended from the primary homeowners policy so the second policy need cover only property. This type of policy
is called a “dwelling policy.”
If you rent out your second home for all or part of the year, your homeowners policy may
need to be endorsed (changed) to cover the increased liability exposure. The renter’s property
is not covered under your dwelling policy. Should damage occur while someone is renting your
property, they will need to check with their own agent about their coverage.

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I work out of my home, is my inventory and business property covered?

Yes, but within certain limits. Both are covered as personal property used for business
purposes. However, like all personal property, there are monetary limits on reimbursement.
Whether your home business is your primary occupation or a hobby that nets you a few
hundred dollars a year, it is still a business and you should treat it as such. If you’ve invested
quite a bit in equipment (woodworking tools, for example) and sell the occasional decoy, you
should consider whether the personal property limits are sufficient.

Also, keep in mind that the personal liability protection in your homeowners policy does not
extend to business liability. Check with Heuer Insurance Agency concerning your business insurance needs.

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Help! I’ve lost everything! Where do I start?

If most of us suddenly found ourselves without anything due to some calamity, we would be
hard pressed to know all that we had lost. When was the last time you counted the number of
shoes you own or CDs, not to mention furniture, dishes, drapes, or audio and video
equipment? The list goes on and on. How much is it all worth and where would you start if you
had to replace it?

Now is the time to make a list of major household items and possessions. The handy inventory
form at the back of this guide will make your job easier. Where possible, list the serial number, date and cost of purchase, and even include the receipt if you
can.

Another easy way in preparing a home inventory is to use a video camera or take pictures of
your home and its contents. As you take the video, you can also talk about the items and their
date and cost of purchase.

Whichever method you choose, have a copy made and ask a friend or family member to hold
on to it, or store your copy in a safe deposit box. That way if the worst happens and your home
is destroyed, the inventory list will be safe at another location. We have other ideas…do you have time to talk with one of our agents?

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Do I really need insurance for my home?

For most people, their home is their single most valuable possession and largest investment.
Homeowners insurance protects your investment as well as you, your family and your
household possessions.

If you were to suddenly lose your home due to fire or a tornado, or have the contents damaged
or stolen, you probably could not afford to replace everything all at once. If somebody sued you
for an injury or damage caused by you or your property, the cost of defending against that
lawsuit could be very expensive regardless of the outcome.

All of these situations are covered by the homeowners package policy. And while it may be
unpleasant to think about fire, theft, and other uncertainties of life, let’s face it, that’s reality.

Yet another reason you need to carry homeowners insurance is that mortgage lenders require
it. No mortgage company will lend the large amounts of money needed to finance homes at
today’s prices without requiring an insurance policy to protect that investment.

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My homeowners insurance is part of the payment I make each month to the mortgage
company. Who decides what insurance to get?

You do. It’s your home and your insurance policy. As a means of protecting its investment, the
mortgage company collects a set amount from you each month, puts it in escrow, and then
pays your insurance and taxes when they fall due. However, the policy is still yours and you
may select the insurance you feel offers the best coverage at the best rates. In fact, if you allow
the mortgage company to choose, you might well end up paying more for your homeowners
insurance.

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I know I have that homeowners policy in a drawer somewhere. What exactly does it
cover?

“Exact” coverage is hard to define because there are different policies. However, about 80
percent of homeowners policies are based on a standard form, which we described in this
guide. All homeowners policies cover two important areas: property and liability. Remember
that you have to have protection against the proverbial thief in the night and the person who
slips on your sidewalk by day.

What this means in insurance terms is that your homeowners policy has two basic
components. It covers your structures, possessions, property insurance, and it furnishes
protection against personal liability. Personal liability, as its name implies, means you are
legally obligated to pay money to another person for actions caused by you, your family, or
your property. Liability extends to medical payments to others for injuries caused by you or
your family.

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What kinds of perils am I protected against?

Remember that policies vary, but homeowners insurance usually covers for damage to both
structures and personal property caused by:

  • Fire or lightning
  • Windstorm or hail
  • Explosions
  • Riot or civil commotion
  • Aircraft
  • Vehicles
  • Smoke
  • Theft or vandalism (sometimes called malicious mischief)
  • Falling objects

Talk to us. What’s your concern?

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I work out of my home. Will my homeowners insurance cover my business?

Yes, but on a very limited basis. Loss of business property is usually reimbursed up to $2,500 in the house and up to $250 for business property damaged or lost away from the premises. Even if your business is a sideline such as a craft studio, these limits may be too low to cover all the equipment and materials you have accumulated. It’s also important to know that no business liability coverage is included in a standard homeowners policy. Your Heuer Insurance agent can help you ascertain any additional coverage you might need. This additional coverage may be added to your homeowners policy or found in a separate commercial policy.

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What is coinsurance all about?

Most business policies include a “coinsurance” clause stipulating what percentage of the total value of your property must be insured to be fully reimbursed for a loss, even a partial one (most losses are partial). If you insure for less than that amount, your insurance company may impose a “coinsurance penalty” on your claim.

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Who keeps an eye on the insurance companies?

Insurance is a heavily regulated industry. Every state has a department that regulates and
monitors every insurer operating within the state’s borders. In addition to approving rates,
your state’s insurance department is involved in all insurance matters on behalf of private
citizens and businesses. It also issues operating licenses to insurers and agents, based on
their ability to meet the state’s requirements for conduct and knowledge about insurance
issues.

Your insurance company and Heuer Insurance Agency work together to provide you with
prompt, quality service in the case of a claim. If you ever have difficulty resolving a claim, you
should speak with your Heuer Insurance agent. However, you can also contact your state’s
insurance department if you wish to know more about your options and rights as an insurance
consumer.

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What should I look for in an agent?

Agents are there to help you. At the most basic level, any agent should be able to answer your
questions about insurance, help you thoroughly assess your insurance needs and offer you
insurance products to help meet those needs. Also, any insurance agency should provide you
with prompt, quality service in the case of a claim.

Just as important is the level of professional confidence and personal comfort you feel with the
agent. Many people stick with the same insurance agent for decades, even generations. It helps to find an agent you can get to know and trust. Heuer Insurance Agency has been here since 1929!

An important, but sometimes overlooked factor to keep in mind is that there are two kinds of
insurance agents: those who represent only one insurance company and those who represent
more than one insurance company.

Agents offering through their agencies only the policies of one insurance company often are
referred to as “captive agents,” because the company they represent does not allow them to
offer their customers competitive alternatives.

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Which life insurance is less expensive, permanent or term?

Since term insurance only provides a benefit if the insured dies during the policy term, its
premiums will be the closest to pure death cost. This is why term is the least expensive
coverage to buy at younger ages. At an older age, the cost of a term policy rises rapidly
along with the increasing death cost, and may soon become prohibitive for many senior
citizens. A term insurance policy’s premium will remain the same during the term, and then
increase at each renewal. For example, an annual renewable term policy is written for one year
at a time, so the premium will generally increase each year. A five-year renewable term policy
premium will remain level for the five-year term, and then increase at the renewal. Once
renewed, the policy premium remains level until the next renewal, and so on until the renewal
provision expires (typically at age 65), or when the insured either decides the premium has
risen too high or the insurance is no longer wanted.

Permanent insurance rates are also fixed for the policy term. However, since the policy is
permanent, this fixed premium must represent an average death cost over the entire expected
life of the insured. The result is that permanent policy rates will often be significantly higher
than term rates for the younger ages, but then significantly lower for the older ages.

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If term life insurance is less expensive, why buy permanent?

There are many reasons. Here are three of the key considerations:

  • Permanent insurance will always be there. Some final expense needs are permanent,
    and only permanent insurance is guaranteed, assuming you pay the premiums, to be
    there when needed. Term insurance, by its nature, is temporary, and at some point will
    become nonrenewable. In fact, a good life insurance rule of thumb is to buy permanent
    insurance for permanent needs (funeral, burial, estate liquidity), and term insurance for
    temporary needs (mortgages, college costs).
  • Permanent insurance premiums are fixed for life. While the premium may be higher at
    younger ages than term, it will never go up, and that can be a great comfort upon
    reaching an older age and not having to face the possibility of your term insurance premium
    increasing beyond your ability to pay, possibly at the very time you need your insurance
    the most.
  • Permanent insurance builds cash values. During those early years of your policy, when
    your lifetime average premiums are higher than the death cost, that extra money is set
    aside to help cover the higher death costs in later years. But in the meantime it is put to
    good use. In effect, it becomes a form of savings account inside your life policy. This
    cash value, as it grows, can be used as the basis for a loan from the insurance
    company, used to pay premiums if necessary, or taken as a cash settlement in the event you cancel the policy.

Talk to our life department, we can show you options, and then you choose what policy is best for you.

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How much life insurance should I have?

There are varied needs for funds upon the death of an individual, and all must be
taken into account to arrive at a proper amount of insurance. For simplicity, some authorities
recommend a good rule of thumb to be five times your annual income. Your Trusted Choice® agent at Heuer Insurance Agency can talk with you about your needs and goals, and illustrate how each item translates
into a given amount of funds needed at the time of death. He or she can also share how to
account other sources of income (such as Social Security or retirement plans) that will actually
lower the amount of life insurance necessary.

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Who will receive the money if I die and how much will they receive?

Upon death of the insured, the insurance company pays the policy’s benefit amount to the
beneficiary (or beneficiaries) named by the insured on the policy. Some policies may provide
additional benefits, so be sure to discuss this with your Trusted Choice® agent, Heuer Insurance Agency.

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Does the circumstance of death determine how much my beneficiary will collect?

During the first two years of the policy period, there may be conditions (fraud, misstatement of
age, suicide) that can affect the death benefit paid by the policy. Your Heuer Insurance agent
can discuss these with you. After two years, the full policy death benefit is payable, regardless
of the cause of death. (Some policies may also pay extra benefits in certain conditions, for example, death of the named insured as the result of an accident.)

Will my beneficiaries receive the benefit in one lump sum, or will it be distributed over a period
of years?

That is entirely up to you, or you can leave the decision to your beneficiaries. Both options are
available.

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Who can I name as my beneficiary? How often can I change them?

Your choice of beneficiaries is entirely yours. You can name individuals, organizations or your
estate. You can also change them at any time. The original beneficiaries under your policy, as
well as any changes you later make, must be designated in writing to the insurance company,
and attached to your policy by endorsement.

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Are there different types of life insurance I should consider?

Although there are many types of life insurance policies, nearly all are variations of two basic
types, term and permanent. (A third type, known as universal life, is a combination of term,
permanent and various investment options. Its complexity is beyond the scope of our overview,
but if you are interested, your Trusted Choice® agent can discuss if a universal policy would be a good fit for
your life insurance needs and goals.)

  • Term insurance is exclusively death coverage. The policies are written for a specific
    length of time (the term referred to in the name). Common terms are for one year, five years,
    and ten years, although longer terms may be available. If the insured dies during the term
    of the policy, the death benefit is paid to the beneficiaries. If at the end of the term the
    insured is still alive, the coverage ends.
  • Unlike term insurance, a permanent insurance policy (often referred to as whole life)
    never terminates as long as the premiums are paid. It also builds cash value in the
    policy that can provide valuable living benefits in addition to the death benefit.

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Do I have to die to collect life insurance?

For term insurance, the answer is always yes. For permanent insurance, as the living benefits
accumulate, they may be used to provide funds for financial needs such as loans, premium
payments and retirement benefits.

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Is flood automatically covered under my Homeowners policy?

Flood is not covered under a Homeowner, Dwelling Fire or Rental Insurance policy.
Floods are the most common and costly natural catastrophe. Floods are nature’s
number one disaster. You do not have to be in a Flood zone to purchase Flood
Insurance. Call your insurance agent at Heuer Insurance Agency to obtain a Flood quote. It can be
purchased as a separate policy through the National Flood Insurance Program.

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Is earthquake automatically covered under my Homeowners policy?

Earthquakes are not covered under a Homeowner, Dwelling Fire, or Rental Insurance
policy. Many of
our homes today sit on fault lines. This coverage can usually be added to your policy by
endorsement for an additional premium. Call Heuer Insurance Agency for a quote.

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Is fire automatically covered under my Homeowners policy?

Fire Coverage is automatically covered under all Homeowner, Dwelling Fire and Rental
policies.

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When I rent a car does my insurance cover my rental?

You would need to purchase Comprehensive and Collision coverage through the rental
carrier commonly referred to as a Loss Damage Waiver. This waiver basically absolves you of any liability if the car becomes dented, breaks down, or gets scratched. It will also protect you from
diminution in the value, should you be involved in an accident. This protection also
extends to loss of use, should the rental vehicle be in for repairs.

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