FAQs

Frequently Asked Questions

What do I do if I've had an accident?

Try to determine if anyone is injured. If the accident is minor, emergency help may not be necessary, but call for an ambulance if you have doubts. Then call the police. An officer will tell you whether you can move the vehicles and will take statements from those involved. As soon as you can, call your agent.

How do I protect myself from uninsured drivers?

Uninsured and underinsured (UM/UIM) coverage is designed to pay for medical bills and pain and suffering if an uninsured driver hits you. You can also buy uninsured property coverage for damage to your auto. With this valuable protection, you'll be able to repair your car and avoid using your collision coverage, which pays after you pay your deductible.

How do I insure a home while it’s being built?

A standard homeowners policy should cover you, but you’ll need to let your agent know that the house is under construction.

What is replacement cost coverage?

This is optional coverage that gives you the full cost to repair or replace your personal property if it is damaged or destroyed.

On a standard policy, you get actual cash value in the event of loss to your personal property. For example, without replacement cost coverage if your television set is destroyed by fire and it’s 5 years old, you’ll get the actual cash value of the set—let’s say, $180. However, a comparable set now costs $475. With replacement cost coverage, you’ll get the full $475, less your deductible.

Can I take out a loan against my life insurance policy?

If you have a whole life policy, you can take out a loan against the cash value in the policy. However, you must pay back the loan with interest. If the loan is not repaid at the time of death, the loan balance is deducted from the death benefit.

If you have a term life policy you cannot borrow against it, since this policy does not accumulate cash value.

If I'm the beneficiary of a life policy, do I have to pay income

No. Life insurance death benefits are free from income tax. The death benefit may be subject to estate and inheritance taxes. If the value of the estate, including the death benefit, is more than $650,000, the death benefit is subject to tax. However, inheritance taxes vary by state.