How to Replace a Life Insurance Policy in Florida

If you are interested in replacing your existing life insurance policy with a new one, you may find that there are many questions that can be quite confusing. Thankfully, it is easy to replace your life insurance policy in Florida if you know what to expect beforehand.

Reasons to Replace Your Policy

There are many reasons why people may choose to replace a life insurance policy in Florida. For instance, if you find better coverage at a lower price, it seems silly not to switch. Secondly, you may simply feel more comfortable with a different agent. Finally, it may be that your needs have changed; maybe you’ve gotten married, had a baby or changed careers. All of these things can indicate that it is time to look into a new Florida life insurance policy, and when you are asked about existing policies, you should be prepared to answer a series of questions.

Questions about the Existing Policy

Before your application for a new life insurance policy in Florida goes to underwriting, there are some questions that your new insurance agency will ask. You will need to tell your new provider that you have an existing policy, you will need to provide the policy number, insurance carrier name and date of expiration, and you will need to tell your new insurance company whether or not the policy you are purchasing is intended to replace the existing policy. These questions are all aimed toward protecting you—it is not a matter of contestability.

Protecting the Consumer

Because there are some insurance agents out there who are only interested in making a commission on selling insurance policies, the entire life insurance industry has developed a set of guidelines to protect consumers. To that end, agents who attempt to sell consumers policies that they do not really need or who try to talk them into switching to a less-than-effective policy are often reprimanded. After all, there is a lot of legality that surrounds life insurance and the insurance agency must always protect their best interests—as well as yours—in order to reduce risk.

Paperwork and the Process

When you choose to replace a life insurance policy, both the new and existing insurance carriers must complete a series of paperwork before the transaction can be completed. There are some time limitations to protect you, of course, but these vary from state to state and from policy to policy. Normally, the entire process should take less than 30 days; your existing insurance carrier will not ‘drop’ you if the new carrier does not agree to provide you with life insurance. Again, this is done for your protection—not to make the process lengthy or frustrating.

If you want to replace your life insurance policy in Florida, the process may seem a bit daunting at first since there is so much paperwork to be completed. However, you should always keep in mind that both the new and the existing life insurance providers are always looking out for your best interests. 

Adjust Your Florida Home Insurance Policy for Renovations

Before you dive into your next home renovation or improvement project, there is one very important thing you should consider—your Florida home insurance. Home renovations add value to your home so if you do not report this to your insurance company, your renovations, additions or other improvements will not be covered in the case of a loss.

Will the Renovation Raise or Lower the Premiums?

One of the things that many homeowners need to consider is the fact that their Florida home insurance premiums are likely to change once the renovation is reported to the insurance company. However, this does not mean that premiums will always go up; in some cases, they may actually go down. Your premiums will likely increase if you are adding square footage to your home, remodeling a kitchen with new appliances, and upgrading flooring or roofing. Some things that may lower your premiums include the addition of security systems, heating and cooling upgrades, or even the addition of a security fence.

Insurance for the Workers

Not only should homeowners ensure that their insurance policies will cover additions to their homes, but they should also make sure that the policy will cover any injuries that contractors and subcontractors could suffer on your property while the work is being completed. Although the homeowner is not always responsible for these injuries, this could be the case in the event that the contractor or subcontractor does not have the proper worker’s compensation coverage. Rarely will the homeowner need to worry about covering the injuries sustained, but it is always better to be safe than sorry.

When to Report Renovations

The best time for you to report renovations to your insurance company is before they are started. This way, you can get some idea of the amount of increase or decrease you can expect with your premiums. In some cases, the insurance company may stay in contact with you throughout the process and send an adjuster to review the changes once the renovations are complete. The purpose of this is not only to make sure that the noted renovations took place, but also to re-appraise the value of the home and determine what sort of changes should be made to the insurance policy or premiums.

Other Things to Consider

There are some changes you can make to your home that will have a rather large impact on your Florida home insurance rates and policy. For instance, if you put a pool in your backyard, your insurance rates will almost undoubtedly rise because this presents more risk for both your family and others. Many insurance companies will also require the homeowner to build a privacy fence around the pool to keep others from entering from the outside. Some other huge changes that will impact your insurance policy include adding a room, purchasing new furniture and adding artwork or other décor that is considered costly.

All in all, the more value that a renovation will add to your home, the more you can expect your rates to climb. However, for things that will actually protect your home, your rates may go down. Be sure to report any proposed renovations to your Florida home insurance company immediately so that you will not be surprised with these changes down the line. 

How to File a Florida Health Insurance Claim

In some cases, when you visit a doctor or other healthcare provider, you may be told that you will need to file your own insurance claim. Though this is quite rare in today’s day and age, you will need to know how to file your Florida health insurance claim efficiently in order to receive your reimbursement quickly.

Keep and Organize Receipts

When you are asked to file a Florida health insurance claim, you will often be required to pay for the services you receive with your provider and then ask your insurance company for reimbursement. Because of this, you should always keep any receipts you receive when you pay for healthcare out of pocket. In this manner, you will have proof of what you paid for your insurance company. In the event that you are not required to pay up front, simply save copies of all of the bills you receive from the provider, clinic or hospital as proof of what you are being charged for the services rendered.

Obtain a Claim Form

The next step in the process involves obtaining a Florida health insurance claim form from your insurance provider. This form should not be incredibly difficult to fill out, and it should only take a few minutes of your time. You will need to provide information such as your insurance policy and group number, who the payment should be made to, the reason for the medical care you received and some basic personal information. If there is anything else that you are required to submit along with the form, this information will be listed. You can always contact your insurance company if you have any questions about the claim form.

Make Copies for Your Records

Before you send your claim form, receipts and/or bills to the insurance company, you should always make copies of these things for your own personal records. This way, you can easily pick up on any errors made by the insurance company as your claim is being processed. Similarly, should your claim get lost in the mail or after it has arrived at your insurance company’s processing facility, the documents will be easier to replace. Always keep your records in a safe location and preferably in physical as well as digital formats.

Send your Claim Form

After you have ensured that your claim form has been properly filled out, you should contact your insurance company and let them know that you are about to mail your Florida health insurance claim to them. Then, make sure that there is nothing else you will need to send as this will help to expedite the process. Be sure to ask how long it will take for the claim to be processed, as well; this will prevent any surprises in the future. Finally, mail the claim form to the address provided. If you do not receive anything within the promised timeframe, you can contact your insurance company for more information.

Most times, completing a Florida health insurance claim form is a simple process. You should remember to fill out the form accurately and completely before mailing it in order to prevent any errors that will slow the reimbursement process. 

Three Ways to Buy Long Term Care Insurance in Florida

If you are interested in purchasing long term care insurance in Florida, then you may be surprised to find that everything isn’t as cut and dry as you may have thought. There are three options to consider: a long term care policy, a fixed annuity with long term care benefits, or a life insurance policy that has a long term care rider incorporated into it. Here is some helpful information for choosing the route that is best for you and your family.

Stand-Alone Long Term Care Policy

The most common way to purchase long term care insurance in Florida is via a stand-alone policy. However, these can be risky and are therefore not for everyone. Not only are these policies incredibly expensive, but they do not gain any cash value over time. The premiums often increase over time as they are not ‘locked-in’ as they are with life insurance policies. Finally, the underwriting process involved with obtaining such a policy—or even utilizing the benefits it was designed to provide—can be time consuming. However, this type of policy will undoubtedly provide the best benefits available when it comes to long term care.

Fixed Annuity with Long Term Care Benefits

A fixed annuity with long term care benefits is not as expensive as a stand-alone policy, but it also carries some risks. An annuity is much like a CD; it provides a steady income stream for life. However, these are difficult to justify in today’s market since the interest rates on annuities are so low. Consumers who either cannot afford a long term care policy or who do not want to go through with purchasing a policy they may never use should explore this option for obtaining long term care insurance in Florida anyway—especially if they already have an annuity. By adding an additional 2% to 3% rider, you can obtain the benefits you want at a lower cost.

Life Insurance Policy with a Long Term Care Rider

The way a long term care rider works with a life insurance policy is actually quite simple. If you need life insurance and you have already purchased a policy, speak to your insurance agent about the cost of adding such a rider. When the long term insurance benefit needs to be used, this triggers the rider and the cash needed to pay for the care is taken from the cash benefit that would be paid out in the event of your death. This is generally only a good idea for those who have life insurance policies worth quite a bit of money since long term care is expensive and a death benefit should still be present for surviving family members.

Long term care insurance in Florida can be a bit complicated to say the least, but the best option for you often depends on the types of insurance and investments you have already made. If you already have a fixed annuity, adding benefits to this just makes sense. Similarly, if you have a high-value life insurance policy, then adding a rider to this is much more affordable than purchasing a stand-alone policy. 

Florida Car Insurance for Not-So-Perfect Drivers

Some people have immaculate driving records and a wide range of affordable choices when it comes to Florida car insurance. Others, however, have not been so lucky and may have trouble even finding an insurer—much less finding a policy that is affordable. Here are some tips for getting insured at rates you can afford with a less-than-perfect driving record.

Risks to Insurers

The first thing that should be considered when it comes to Florida car insurance is that insurers assume risks when they provide coverage to anyone, whether they are good or bad drivers. If you have had a DWI/DUI, have been involved in a number of traffic accidents, have had a large number of traffic tickets or have had your license suspended for any reason in the past, insurers will often claim that the risks involved with insuring you are too great. Some of them may not even offer you a policy; others will insure you at outrageous rates—even for the minimum coverage required by law. This can make shopping for and obtaining insurance very difficult.

Determine the Necessary Coverage

The first thing you should do when you purchase auto insurance is determine the exact type of coverage you need. In the event that you are required by the court to have SR-22 insurance, then you can expect to pay quite a bit more for your coverage until the court order has expired. If there is a lien on your automobile, you may be required by the lienholder to carry full coverage insurance until the car is completely paid off. In these situations, be sure to tell potential insurers exactly what you need so that you can get quotes that make sense. If you need full coverage, a quote for liability insurance is not going to be helpful.

Take a Higher Deductible

The truth is that there is no way to reduce your Florida car insurance rates dramatically if you have a bad driving record. However, you can take some steps to ensure that you get the best rates possible in your situation. For example, after you have determined the type of policy you need, you can then decide how high you want your deductible to be. While a $500 deductible is by far the most affordable, you might be able to save between 20% and 30% on your policy if you choose a $1500 deductible instead.

Take a Defensive Driving Course

Another way to reduce your premiums is to enroll in and pass a defensive driving course. You can get information about these from your local police department or BMV, and while there is some cost involved with taking the course, it is still a good idea. These courses teach drivers how to stay safe on the road—and even how to avoid unsafe drivers. When these courses are completed and proof can be shown to an insurer, it proves that you understand what you need to do to be a better driver—and may help you get better rates on your Florida car insurance.

People who have bad driving records still need to be insured, and although it can be difficult to find an insurer who can provide affordable coverage, it certainly isn’t impossible. Following the tips here will help you find Florida car insurance that you can afford. 

Determining the Amount of Florida Life Insurance You Need

There are industry standards that agents use to determine the amount of Florida life insurance an individual needs. The amount you will need depends on your individual circumstances, as well. Here, we’ll take a look at the ways to determine the amount of life insurance you need.

The Usual Rule

Most Florida life insurance agents tell their clients that they should purchase a policy that is valued at between five and 10 times the amount of their annual salaries. This means that an individual who earns $50,000 per year will need to take out a policy that is worth between $250,000 and $500,000. Of course, it is important to consider that your circumstances may be different. If you are young and single with very little debt, you may not need this much coverage. Conversely, if you have a large, young family or a significant amount of debt, then you may need more coverage than this; your family may depend on your income for many years to come.

Analyzing the Situation

Determining the right amount of life insurance for you requires a very careful analysis of your personal situation. First, you should consider the amount of debt you have accumulated. Upon your death, all of these debts will need to be repaid. If you are single, this may be the only burden you need to consider. You will also need to consider the size of your family and whether or not your spouse will be able to support your family after a certain period of time. These two things together will help you determine whether or not you need a lot of Florida life insurance, a moderately-valued policy, or just a small policy to cover your debts.

Determining Actual Coverage Amounts

After these factors have been considered, the next thing that agents and their clients will need to do is figure out how many years that the insured’s income will need to be replaced and the percentage of the income that will need to be replaced. Then, it is also very important to allow some leeway for things like inflation and interest income, as well. By taking the total derived in this manner and subtracting your current savings, you can determine the amount of Florida life insurance you will need.

Life Insurance is Affordable

Even if you determine that you need much more life insurance than you originally thought, all is not lost. Thankfully, life insurance rates have gone down significantly over the last decade. As an example, a healthy 40-year-old man who is otherwise healthy would have paid upward of $1000 per year for a half-million dollar life insurance policy with a 20-year term 10 years ago. However, these days, life insurance is not nearly as expensive. Today, the same individual can purchase the same policy for less than $400 annually.  

You should speak directly with a Florida life insurance agent to determine the exact amount of coverage you will need. You will be asked questions about your personal health, your family, your debts and other factors. Then, you will likely be asked to participate in a physical examination in order to gauge your overall level of health. 

Florida Health Insurance for Hospitalization

In the state of Florida, there are several different types of health insurance that are available to consumers. Some of these cover only doctor visits, others cover only prescription medicines, and still others cover things such as major surgeries and hospitalizations. Florida health insurance with a hospitalization benefit is very important for many reasons which are pointed out below.

Accidents and Injuries

Although you may be very healthy right now and you might feel as if you can cut costs on your Florida health insurance by leaving out hospitalization coverage, you should probably think again. In the event of an automobile accident, for example, you may think that your automobile insurance—or the at-fault party’s automobile insurance—will cover all of your injuries. However, this is simply not the case. Most of the time, individual insurance policies have limits on the amounts they will cover, and anything after that must be sought in civil court. If you were the at-fault party, your insurance may not pay for any of your injuries. Hospitalization insurance is very important in these situations.

Unexpected Illnesses

Aside from accidents and injuries, even the healthiest of people get sick. Diseases like cancer and things like heart attacks and strokes affect people of all ages, and they almost always require serious medical intervention or even surgery. Lack of Florida health insurance for hospitalization can mean that you would have to pay all of these expenses out-of-pocket, and it also means that you may not have access to the best care that is available to you. In this case, even some hospitalization insurance is better than none as it could mean the difference between the best ER in your state or the one that simply costs the least.

Maternity

Women who become pregnant with only basic health insurance that covers doctor visits may not have many out of pocket costs in the beginning but, if something goes wrong during the pregnancy, hospitalization may be necessary. In fact, a percentage of pregnancies result in weeks or even months of hospitalization, particularly if the mother is at high risk for preterm birth. Then, when it comes time to deliver, the costs average about $12,000 in the United States—and this is if a C-section or other procedure isn’t necessary. If a C-section or some other surgical intervention is needed, hospital bills can easily top $25,000.

Cost vs. Benefit

The main reason why people fail to include hospitalization insurance when they purchase their policies is the cost. Although people often feel that they simply cannot afford to pay the premiums associated with surgery and hospitalization benefits, the truth is that they really cannot afford to go without such coverage. A single, otherwise healthy individual can expect to pay around $2000 annually for this benefit—or save this much money if the benefit isn’t part of the insurance policy. However, when it is considered that hospitalizations almost always cost several thousand dollars, failing to include this coverage in Florida health insurance policies is truly a gamble.

While saving money in today’s economy is very important, so is your health. You should be sure to review your options for Florida health insurance very carefully before you purchase and make sure that hospitalization coverage and surgical coverage are included. You are always encouraged to shop around for the best plans and rates that will fit your budget. 

Do You Have Enough Florida Homeowner's Insurance?

The cost of Florida homeowner’s insurance—like the cost of everything—is on the rise. Florida is prone to hurricanes, thunderstorms and tornadoes that cause significant property damage, and insurers are quietly raising premiums while scaling back coverage at the same time. Here are some things to consider when you purchase your policy.

The Paradox of Shopping Around

Consumers often compare various insurance policies by considering two factors: price and reputation. In fact, very few homeowners actually take the time to ask about the things that are covered, the amount of coverage they will receive in certain situations, or even if they will receive the actual cash value of damaged property or the replacement cost. These days, many insurance companies do not even provide consumers with a copy of their policies until after they have been purchased and, even when they do, they rarely take the time to read the endless pages of paperwork. This can cause some serious problems in the event of an actual disaster, robbery or other event.

Legal Terms in Policies

While parts of your Florida homeowner’s insurance policy may be easy to read, exclusions are often hidden in clauses that are written in ‘legalese’ and buried within the middle of the policy—exactly where the insurer hopes you won’t look. This practice remains perfectly legal and, although consumers truly believe they understand their coverage, many do not. The best way to ensure that you know exactly what is covered in the event of a disaster or other emergency is to ask a lawyer or even a paralegal to review your documentation. On the same note, you should always ask for a copy of the policy before you provide a signature or make a single payment.

Why Insurers Cut Corners

A recent story showed that, in 2011, insurers paid out double what they paid in 2002 for Florida homeowner’s insurance claims. This has been blamed on many things, but the increase in property values along with the number of significant weather events that affect the state are the prime culprits. Rather than dropping homeowner’s insurance from their lineup of offerings, many companies simply upped the premiums significantly or made serious cuts in coverage. As such, homeowners who were once completely covered in the event of a hurricane or flood may find that they are required to pay tens of thousands of dollars out of pocket.

What Homeowners Should Do

Although there is not much that you can do about the rising cost of Florida homeowner’s insurance, there are some ways in which you can protect yourself. As previously mentioned, make sure that you are provided with a complete policy before you make a payment. Similarly, you can ask a lawyer to look over the policy before you sign so that you have a complete understanding. Finally, when you are shopping for insurance coverage, remember that the lowest premiums often mean the least coverage; do not let a company’s good reputation fool you into thinking that you are receiving the best policy for your individual needs.

Your home is your biggest investment, so your Florida homeowner’s insurance policy should cover it as much as possible. You should also pay close attention to whether or not your policy contains flood insurance as this is one of the most commonly excluded things for Floridians. 

Replacement Cost Coverage for Personal Property under Florida Homeowner’s Insurance Policies

When you purchase Florida homeowner’s insurance, you are protecting your home as well as all of the personal property contained within it. However, many homeowners fail to understand the differences between replacement cost coverage and actual cash value. Here, we have outlined how you will be reimbursed for your property in the event of a disaster.

What is Actual Cash Value?

Most Florida homeowner’s insurance policies provide you with what is known as the ‘actual cash value’ of your personal property in the event that it is damaged during a disaster or stolen. This is not the amount of money that you actually paid for your property; this is the amount that it will cost to replace the property after depreciation. For example, if you had a nine-year-old television that you paid $800 for when it was new, you will not receive $800 if the television is destroyed or stolen. Rather, you will receive the amount that the insurance company deems the television would be worth after nine years of depreciation—this is the actual cash value of your television.

What is Replacement Cost Coverage?

These days, many Florida homeowner’s insurance companies are offering what is known as replacement cost coverage instead of providing the actual cash value. This provides you with more coverage in the long run. Using the above television example, the insurance company would not provide you with the actual cash value of your television under this type of policy. Rather, you would receive an amount of money that the insurance company deems necessary to replace the television you lost in its current condition—and this is often more money. This type of coverage is also available with automobile insurance policies, as well.

How the Insurance Company Determines Actual Cash Value or Replacement Costs

There are many factors that go into determining the actual cash value or replacement cost of the property you lose during a disaster or theft. In most cases, the insurance company will consider things such as the purchase price at the time that the item was new as well as depreciation and estimated wear and tear. In the case of determining the replacement cost, the company will check with various vendors to determine how much a replacement product will cost. For this reason, the insured typically does not receive a check; the funds will be paid directly to a vendor who will ship or deliver the replacement products to the insured.

Why Replacement Cost Coverage is Better

In the event that your home or property is involved in a disaster or theft, it is likely that you will lose some valuable property that you could not otherwise live without. While jewelry and certain other luxuries can wait for replacement, it is unlikely that you will be able to get through each day without things like a stove, a furnace or a refrigerator. When the Florida homeowner’s insurance company only pays the actual cash value, this is often not enough to replace the products you lost—and this can lead to serious financial hardship. For this reason, you should always consider the advantages of replacement cost coverage.

There is no denying that replacement cost coverage is often more expensive than traditional coverage, but if you lose your personal property in a fire, a storm or even a robbery, it can certainly prove invaluable. In most cases, this coverage is often more affordable than you may think.