While there are a variety of reasons that our members buy life insurance, the most prevalent is protection for their loved ones. Proceeds can be used to pay debts, educate their children, and, most importantly, replace the income the deceased provided to their family. The amount of coverage a member needs is competely different for each member. The type of coverage that works best for each member varies equally as much. The following is a breif description of the major types of insurance. There are many variations within each type, and often a member will need combinations to best serve their individual needs. MEMCU Insurance can provide you with the information you need to make the appropriate decision to protect your family and to provide the peace of mind that comes with knowing you are properly prepared for the uncertainties of life.
Term Life
Term life insurance offers low premium cost insurance protection for a specified time period. The means you can own a substantial amount of insurance for low premium expenditures. While the premiums appear low, the true cost of the insurance protection is the total of all premiums during the period of the contract. Some term life insurance products offer an extra cost rider called "Return of Premium," which returns all premiums paid at the end of the contract period.
Whole Life
Whole life insurance has higher premiums for the same amount of protection as term insurance, but builds cash value that offsets the cost of the protection over time. Because of this feature, the true cost can be much lower than term insurance. Whole life insurance is also considered an asset on one's financial balance sheet.
Universal Life
Universal life basically combines life protection and an investment vehicle to create cash value for the contract. It gives the owner the flexibility of deciding how much premium they would like to pay within certain limits. The owner needs to exercise caution that the contract is funded at proper levels to maintain coverage at older ages and to make sure cash value objectives are reached.
Your residence is much more than the raw materials with which it was made - it is your home. Protecting your home and its contents likely rank as one of your top priorities.
Homewoners Insurance Policy
The typical homeowners insurance policy covers the house, the garage, and other structures on the property, as well as personal posessions inside the house such as furniture, appliances and clothing, against a wide variety of perils including windstorms, fire and theft. The extent of the perils covered depends on the type of policy. An all-risk policy offers the broadest coverage. This covers all perils except those specifically excluded in the policy.
Homeowners insurance also covers additional living expenses. Known as Loss of Use, this provision in the policy reimburses the policyholder for the extra cost of living elsewhere while the house is being restored after a disaster. The liability portion of the policy covers the homeowner for accidental injuries caused to third parties and/or their property, such as a guest slipping and falling down improperly maintained stairs. Coverage for flood and earthquake damage is excluded and must be purchased separately.
Renters Insurance
A form of insurance that covers a policyholder's belongings against perils such as fire, theft, windstorm, hail, explosion, vanalism, riots, and others. It also provides personal liability coverage for damage the policyholder or dependents cause to third parties. It also provides additional living expenses, known as loss-of-use coverage, if a policyholder must move while his/her dwelling is repaired. It also can include coverage for property improvements. Possessions can be covered for their replacement cost or the actual cash value that includes depreciation.
Flood Insurance
Coverage for flood damage is available from the federal government under the National Flood Insurance Program, but is sold by licensed insurance agents. Flood coverage is excluded under homeowners policies and many commercial property policies. However, flood damage is covered under the comprehensive portion of an auto insurance policy.
Personal Articles Floater
A policy or an addition to a policy used to cover personal valuables, like jewelry or furs.
Umbrella Policy
Coverage for losses above the limit of an underlying policy or policies such as homeowners and auto insurance. While it applies to losses over the dollar amount in the underlying policies, terms of coverage are sometimes broader than those of underlying policies.
Rider
An attachment to an insurance policy that alters the policy's coverage or terms.
Covering your motorized vehicle against damage to itself or other property is an important, and often legally mandated, responsibility. Making sure you have the right coverage at the right price is why MEMCU Insurance is here. Following are some terms that may be helpful as you consider your Automobile/Vehicle insurance options, but please contact us with any questions. We are here to help.
Auto Insurance Policy
There are basically six different types of coverages. Some may be required by law. Others are optional. They are:
GAP Insurance
An automobile insurance option available in some states that covers the difference between a car's actual cash value when it is stolen or wrecked and the amount the consumer owes the leasing or finance company.
Insurance Score
Insurance scores are confidential rankings based on credit information. This includes whether the consumer has made timely payments on loans, the number of open credit card acounts and whether a bankruptcy filing has been made. An insurance score is a measure of how well consumers manage their financial affairs, not of their financial assets. It does not include information about income or race.
Studies have shown that people who manage their money well tend also to manage their most important asset, their home, well. And people who manage their money responsibly also tend to handle driving a car responsibly. Some insurance companies use insurance scores as an insurance underwriting and rating tool.