Insurance FAQs

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Term Life Insurance

Many experts recommend that you have coverage of at least five to eight times your annual income. But you may find that you need more insurance coverage, depending on your family situation. You can combine the various types of life insurance policies to meet the changing needs of your family over the course of a lifetime. Here are some factors to consider:

  • In the event of your death, how much cash would your family have available to cover unexpected expenses, such as hospital bills, funeral expenses and existing debts like car loans and credit cards?
  • How much do you spend on day-to-day expenses like grocery and mortgage bills, daycare, utilities, taxes and other month-to-month expenses? Multiply this amount by the number of months or years until your family could replace your monthly income.
  • How much do you think it will cost to pay tuition for your children's education, to replace the family car, or to support aging parents?
  • If you are a dual-income household, consider life insurance for each income producer in the family.
  • If you are a single parent, consider how much it will cost to pay to care for your children, 24 hours a day, seven days a week.

In addition to these considerations, it's important to think about how long your family will need the protection. Most families' life insurance needs peak when children are young and decrease when the children have completed college — a span that lasts about 20 years.

If your children are close to college age now, a shorter-term policy may be better for you. But if you want to lock in level premiums for a longer period of time, or if you think that a change in your health might make it more difficult to re-qualify for coverage in the future, a longer-term policy or permanent insurance might be a better choice. In some situations, it may be wise to combine shorter- and longer-term policies to accommodate your changing needs.

It's a good idea to periodically review your insurance portfolio — especially after a major life change — to ensure it provides the protection you need. You may find you need to purchase additional coverage, or that you can take advantage of lower rates. Even if you bought a policy within the last few years, your savings could be significant. To compare rates from some of the country's top Term Life insurance providers visit www.wffinsurance.com or call 1-800-421-6413 ext 7086.

If you have a permanent form of life insurance that has a cash value, you may be able to obtain a policy loan from the insurance company. This is an advantage of permanent insurance. However, if you have any loans outstanding at the time of your death, they must be repaid or they will be deducted from your survivors' death benefit.

Some permanent life insurance policies and some group life insurance policies offer an optional Accidental Death benefit — also called a "double indemnity" provision — for an additional premium.

Accidental Death doubles the death benefit if a person dies in an accident as opposed to dying from natural causes. For example, if a person died in an accident and the death benefit in the policy was $25,000, the benefit would be doubled and the insurance company would pay $50,000.

Some insurance companies may share their profits in the form of dividends, as a feature on permanent forms of life insurance policies. They can be sent to the policyholder in cash, held by the insurance company to accumulate interest for the policyholder, used to offset premiums, or used to purchase additional insurance. In most cases, permanent insurance policies that pay dividends cost more than other policies.

Premiums for similar policies can vary significantly, so it is wise to shop around and compare prices from a number of different companies. More tips for saving money are available in the section.

Most insurance companies have financial strength ratings from independent organizations, such as A. M. Best Company, Standard & Poors' and Moody's Investor Services.

Look for companies with "A" ratings or better. Your State Department of Insurance can provide you with information regarding the complaint history of various insurance companies.

Life insurance should be one component in a financial plan that assures you and your family will achieve your dreams — even if one of you dies prematurely. Create a plan. Talk to your accountant, financial planner, personal banker, trust officer, insurance agent or attorney to discuss your finances. Or, you can call Insurance Central for information on available insurance policies at 800-421-6413, extension 7086.

 

 

Health Insurance

  • Most HMOs (health maintenance organizations) have lower out-of-pocket expenses when members use the HMO's preferred providers and facilities. If members go outside of the network, they generally have higher out-of-pocket expenses and may be responsible for paying the entire bill.
  • In addition, members must choose a primary care physician and see that person first whenever they need medical attention. The primary care physician will make necessary referrals to specialists.
  • With HMOs, the per-visit or annual deductibles are usually lower than with other plans.
  • Most PPOs (preferred provider organizations) charge members slightly more than HMOs to use providers and facilities outside of the PPO network and do not require referrals to see specialists.
  • PPOs are generally more flexible than HMOs but tend to cost members slightly more. The per visit or annual deductibles are usually higher than with HMO plans.
  • POS (point of service) plans are a combination of the features of HMOs and PPOs. With a POS, members choose whether they want to pay a flat fee for a network provider or whether they want to pay a deductible and/or coinsurance charge to see an out-of-network provider.

The terms of each health plan will vary. Under some individual plans, eligibility automatically stops at age 18; while others will continue to cover full-time students to age 23, 24 or 25. Check the provisions of your plan regarding children who are students over age 18.

If you get seriously ill or in an accident (a car or ski accident, for example), the expenses could wipe you out financially. To safeguard both your health and your financial well-being, you should obtain health coverage.

If you are self-employed, it is important to learn whether or not your health coverage will cover work-related injuries.

You may wish to consult an insurance advisor about how health insurance and/or workers' compensation insurance applies in your situation. Some individual health insurance plans exclude all coverage for work-related injuries.

Most group insurance plans offer extended coverage after termination of employment, but you must apply.

Don't delay. You can shop for alternatives later, but it is important to enroll for the Consolidated Omnibus Budget Reconciliation Act (COBRA) extension immediately after you terminate your employment so that your coverage will continue without interruption.

Some people have health conditions that prevent them from buying an individual health insurance plan from an insurance company.

If you are in this situation, contact your state's Department of Insurance. Many states have special programs to help people who cannot purchase health insurance.

Most people consider a supplemental health insurance plan to Medicare after age 65. Learn what is and is not covered by Medicare. If you are still employed, find out how your employer's group plan coordinates with Medicare and what happens when you retire.

 

 

Auto Insurance

It depends on your individual financial situation. You'll need to consider how much you can afford to spend to repair or replace your vehicle after an accident. In addition, you could be responsible for medical expenses, loss of wages, awards for pain and suffering, and damage to vehicles or other property.

With liability insurance, the higher your limits, the more financial protection you will have against lawsuits. In most states, the minimum liability coverage required by law is not adequate, so you should consider higher limits.

Some policyholders believe they should purchase lower Liability limits on older vehicles. Because Liability insurance covers bodily injury and property damage, there is no relationship between the amount of Liability insurance you need and the age of your vehicle.

If you want to reduce the insurance premiums on an older vehicle, consider lowering or eliminating your Collision or Comprehensive coverages.

It varies by state and insurance company, but potential discounts may be based on:

  • The age of the drivers
  • The drivers' grade point averages (if they're students)
  • Your vehicle's safety features, such as airbags, automatic seatbelts, anti-lock brakes, etc.
  • Any driver's training or defensive driving classes you may have taken

Ask your insurance company for more information about which discounts are available to you and read more about it in our article about

In most states, anyone who drives your car with your permission is covered under your automobile insurance policy.

Because the people who live in your household are the most likely drivers, the insurance company is entitled to get a full view of the potential risk. This ensures that they are charging the correct premium to each policyholder.

You should always inform your insurer of all drivers in your household.

Some insurance companies offer discounts for off-street parking, others offer discounts to policyholders who own a home or offer a multi-policy discount if you purchase your automobile and homeowners insurance together. Knowing your situation allows the insurance company to give you all of the available discounts.

Check with your insurance company. The impact depends on the amount of damage in the accident, if it was your fault, or the type of traffic violation. Most companies offer safe-driver programs and do charge higher premiums for drivers who have accidents or receive traffic violations

When you pay for Uninsured Motorist coverage, you're not paying someone else's insurance. Instead, you're paying to cover your own expenses if you are injured in an accident caused by someone who doesn't have insurance. In most states, Uninsured Motorist coverage is required by law. Remember, you are protecting yourself. This means you should consider purchasing the same limit of coverage that you carry for liability.

It depends on the rental agreement, how long you are renting the vehicle, and the terms of your own policy. Generally, short-term rental agencies include some minimum amount of insurance and give you the option to purchase excess coverage. Read the coverage definitions closely because many contracts require that your personal insurance be the primary insurance and the rental coverage secondary. The package offered by the rental agency may be expensive and may not give you the coverage you need.

For example, youthful drivers and off-road use are often excluded in coverage offered from the rental agencies. Your own policy may cover you for short-term rental of private passenger cars but may not apply on long-term leases or on commercial vehicles. It is a good idea to check with your own insurance company before renting a vehicle and to review the provisions of the rental agreement.

 

 

Renters Insurance

Take a look around you and then add up the value of your TV, stereo, furniture, clothing, and other items.

Your landlord’s insurance coverage is not responsible and does not insure your personal property in your home or apartment. Would it be difficult for you to replace them without insurance? Make a list, room by room, of your personal property to estimate the total value of your possessions. Keep track with our Property Inventory (PDF).

A deductible is the amount you will have to pay out of your own pocket before your insurance company will pay on a claim. For example, if you have a $250 deductible and fire damages your personal property in the amount of $1,000 the insurance company would pay $750 ($1,000 less your $250 deductible).

No, in standard Renters insurance policies. In most states, policyholders must purchase optional earthquake coverage for an additional premium.

Yes, in most states windstorm is a covered peril; however, coverage for a resulting flood may be excluded. You may have to purchase this coverage separately.

No, Renters insurance policies do not cover damage caused by flood. The National Flood Insurance Program (NFIP) offers flood coverage, for contents only in some areas.

Before you call an insurance company, the NFIP recommends that you call your landlord to find out the "flood zone" of the property you are renting. For a competitive flood insurance quote, call Wells Fargo Insurance at 877-393-5663.

Theft, burglary or robbery claims should always be immediately reported to the police. Some policies provide coverage for stolen property only if there has been forcible entry into a locked home or apartment.

Most policies have limited coverage on certain types of property for loss caused by theft - check your policy for more specific information.

Renters insurance policies will generally cover this type of property for its Actual Cash Value—for details, see the section However, each policy typically provides a limit for how much is covered. Other policies may apply limits if burglary or theft causes the loss.

Your Renters insurance policy may pay up to a specific amount (i.e., $250) for the legal obligation of any insured to pay because of the theft or unauthorized use of credit cards issued to or registered in any insured's name.

Some states have laws that limit your liability to a specific dollar amount per card. Check your policy for coverage and limits.

Renters insurance usually provides an extension of coverage for property away from your primary residence location (subject to limitations). Check your policy for specific coverage and limits.

Renters insurance usually provides an extension of coverage for limited amounts of cash. Some companies will increase the amount by endorsement for an additional premium. Check your policy for coverage and limits.

Most basic Renters policies will cover fine arts as personal property, subject to the basic perils and deductible on your policy. If you own fine arts, you may want to consider adding an endorsement to your policy providing specific "all risk" coverage on scheduled items for an additional premium. For example, if you have a porcelain doll that is accidentally broken, your basic policy would not provide coverage, because breakage is not a named peril. If you have added a fine arts endorsement (including breakage), the doll would be covered.

This depends on your own policy and your lease with your landlord. Damage to your personal property from a leaking waterbed is usually only covered when the leak results from one of the named perils of the policy, such as fire or vandalism for example.

The landlord typically covers damage to the rental unit, however many lease agreements specifically state that the owner of a waterbed is responsible for damage to the rental property resulting from leaking. It's important that you check your lease if you own a waterbed; then talk to your insurance company.

Some policies will provide a nominal amount of coverage for business property (i.e., $1,000), but in most cases it is not covered. You should check with your insurance company if you have any business property at your home or if you are operating any type of home-based business from your residence.

Probably not, unless that person is a named insured or a relative. If you have a roommate, check with your insurance company about coverage for him or her.

Maybe. If you are a dependent away at school, your parents' homeowners insurance policy may provide limited coverage for your personal property. Ask your parents to check with their insurance company.

In most cases, you can simply provide your new address and some information about the construction of the building at your new location if you move within the state in which you are currently insured.

If you are moving to another state, some insurance companies may not be able to continue your policy. If you are concerned, check with your insurance company before you move.

Renters insurance policies will generally recognize your new address as an "insured location" for some limited time (i.e., 30 days) from the time you begin your move. However, if the property is stolen or damaged in transit from one location to the other, the amount of coverage may be limited to 10 percent of the total coverage. Check with your own insurance company before you start your move.

 

 

Identity Theft


Your credit score is like a report card of your credit history. It's a sophisticated rating system, only seen by lenders, that's used to determine if you're a good or bad credit risk. It compiles all your available financial data into a model that computes a score between 350 and 850, a higher score being ideal. Your score is based on your payment history, credit usage, length of credit history, bankruptcies, and more.

Negative information, like late payments and collection accounts, can generally remain on your credit record for as long as 7 years. Bankruptcies stay on your record for 10 years.

The information in your credit report comes from Experian, TransUnion, and Equifax, the nation's three largest credit bureaus. The information is merged into one easy-to-read report, which gives a complete picture of your credit history. All information is kept strictly confidential.

Contact an Identity Theft Protection Specialist.

Yes! Your information remains confidential between you and the respective credit reporting agencies.

The monthly fee for Identity Theft Protection is $12.99. This valuable protection can be conveniently charged to any Wells Fargo check card or credit card.