Benefits of Auto Pay for Your Insurance Premiums

We currently happen to be in a time of uncertainty with some businesses temporarily closing or being short staffed due to Covid-19 social distancing recommendations. One of the concerns that has developed is people still being able to pay their bills, such as insurance premiums.

Thankfully, most insurance carriers accept payment either online or via an automated phone system but Auto Pay could alleviate any worry or doubt you might have about these payments being processed correctly and on time. There are several benefits to Auto Pay, depending on what type of policy it is.


• When it comes to life or disability insurance, a lapse without timely reinstatement could mean that you will now require an underwriting review, sometimes involving medical evidence… or you could even have to secure new coverage at your current, older age and possibly lesser health.


• For a health insurance policy that cancels due to late or non-payment, it cannot be reinstated at all and you would be left without coverage until the next open enrollment period for the following year. Scary, right?!


• For auto or home insurance, it would depend on the company if they were willing to reinstate or rewrite the coverage. The biggest risk here is that something detrimental and very expensive could happen in that lapse period where you would have no coverage at all.


Auto Pay is convenient, yes. It saves paper and printing costs, yes. It’s peace of mind and one less thing to worry about, yes. But it’s also imperative for maintaining some pretty important coverage. This is coverage that you may not be able to get back if you elect to receive a paper bill that gets lost or doesn’t get paid. An Added bonus is cost savings as well… you can almost always save on installment fees by going this route.


If you’re able to arrange Auto Pay either through EFT (electronic funds transfer from a checking account), recurring credit card, online bill pay with your bank, or whatever options there are… it’s definitely the safest way to ensure that your coverage will not be interrupted or affected.


If you have questions about a specific policy or company that we work with, please let us know anytime at info@mcgriffwilliams.com or (352) 371-7977.

Misconceptions of Life Insurance

September is Life Insurance Awareness Month so what better time to clarify a few misconceptions.

According to LIMRA (Life Insurance and Market Research Association), Life Insurance Ownership in Focus, U.S. Household Trends, there are approximately 37.5 million households in the U.S. that have no life insurance coverage at all. And almost half of households that do have it, don’t have enough to replace their income in the event they needed it.

But why is that? It seems like a no-brainer to have coverage for your family’s financial burdens if something happens to you, right? So why do so many Americans go without?

Lincoln Financial Group’s research shows that the #1 reason people say they don’t have it is because it’s too expensive. But it doesn’t have to be. In some instances, it can cost less than your monthly utility or cell phone bill.

Another LIMRA study showed that about 108 million Americans say that they have coverage through their employer but they may not even know how much or what company it’s with. That won’t do you much good!

Some people may be so intimidated by the process that they just avoid it. However, there are some life insurance policies available now that can be bound within 24 hours with no blood test or medical exam.

Others may think it isn’t necessary if they don’t have children or they aren’t sure who to make the beneficiary, but you can always have multiple people as beneficiaries and it doesn’t have to be a blood relative.

Same goes for those that think because they don’t own a home, life insurance isn’t necessary. That’s a common misunderstanding that we hear often. However, a mortgage isn’t the only financial burden your loved ones could face in your absence.

Stay-at-home Moms tend to think they don’t need coverage because Dad’s income wouldn’t stop if something happened to Mom. Who will care for the kids? Mom was awfully nice to do it for free but it’s highly likely to cost a pretty penny for anyone else to step in.

We think life insurance is extremely important all year round but wanted to share these tidbits to hopefully spread some awareness this month in particular. Make smart choices and don’t let unpaid bills overshadow the legacy you’ll leave when you’re gone.

As always, we’re happy to help guide you on your life insurance journey and can answer questions anytime: 352-371-7977 or nick@mcgriffwilliams.com.

Calling All Moms!

One of the most important insurance policies a Mom in today’s society needs is life insurance…. so why do most Moms not have enough of it or any at all?

Historically, many Moms stayed home to care for the children while Dad worked. Currently, more and more Moms are working and with that, may not be covering themselves like they should.

According to Transamerica, 44% of women do not have life insurance. But yet, 40% of working mothers in US families are the bread winner. And it’s expected that 66% of the nation’s wealth will be controlled by women by the year 2030. It is extremely important for these working Moms to have the right protection!

Life insurance would be a great start to getting Mom covered. We all know most families would suffer tremendously in many ways if they were to unfortunately lose the matriarch, but life insurance could help sustain the family by paying for a nanny, a family member to move to help, a childcare facility, schooling, etc if Dad became the sole care giver. And Moms are busy, right? Now, there are even some companies that will issue life insurance with no medical exam! Less time spent and very little effort so Mom can stick to her juggling act of everything else.

Whether or not a family is fully dependent on Mom’s salary, disability insurance or “income protection” is also something that many Moms overlook. This too is a pretty simple process that would help pay the bills or get extra help if Mom is injured or ill.

Mothers are so valued and appreciated for intangible things so let’s not leave them underinsured! We’re always happy to help: nick@mcgriffwilliams.com or (352)371-7977.

Is a medical exam always required for Life Insurance?

Been thinking about getting life insurance, but the long process has left you with second thoughts? Changes to the underwriting process may save you some of that headache.

What changed?

It’s a tale as old as time. If you want life insurance you have to go through a weeks or even months-long underwriting process. Your insurance company has to evaluate things ranging from prescription drug records, medical exams, auto records, and more. Proving the information correct in all of these exams further delays you obtaining coverage. According to a study by LIMRA, more than 18.7 million people had given up on securing coverage during this long underwriting process.

Insurance companies are trying to automate the system so you and I can secure coverage without taking up as much time. Companies are employing technology to screen candidates based on key indicators. If you fit the criteria then the process moves along without the need for a medical exam. Please note that if you are flagged the process may require an exam.

What carriers offer this method?

Several carriers are beginning to use this accelerated program of underwriting, including:

  • Banner
  • Lincoln
  • Minnesota Life
  • Mutual of Omaha
  • Nationwide
  • Principal
  • Protective
  • Prudential

This process is still being perfected, but if you are interested in whether this option could apply for you don’t hesitate to give us a call at 352-371-7977 or email our Financial Insurance Advisor Nick Deas at nick@mcgriffwilliams.com.

 

Mortgage vs. Term Life Insurance

When it comes to life insurance it’s important to understand what you’re purchasing in order to keep your family and loved ones covered. One aspect of life insurance to understand is Term vs. Mortgage.

 

What is Mortgage Insurance?

As the name implies, mortgage insurance will cover your remaining balance on your mortgage in the event of your passing. One pro of mortgage insurance is that it is typically very simple to obtain. The amount of coverage you receive is directly tied to your mortgage so as you pay down your mortgage over the years the amount you receive decreases. The issue with the decrease in coverage amount is that your premium stays the same. The beneficiary for this insurance is owned by the bank who holds the mortgage.

 

What about Term Insurance?

Term life insurance provides coverage for a defined period of time, such as 10, 15, 20, 25 or 30 years. As a term insurance policyholder you pay an annual premium amount for the defined period of time and the insurer, or the company you purchased your policy through, will pay your beneficiaries the pre-determined policy amount. There are many advantages including the cost, but it only covers you during the term.

 

For many cases, mortgage insurance will not be enough for your loved ones. Even though your mortgage would be taken care of there is still the cost of living and funeral costs that will burden your family.

 

The video below provides additional information about both types of insurance. If you would like to discuss your options call us at 352-371-7977 or email our Financial Insurance Advisor Nick Deas at nick@mcgriffwilliams.com.

https://www.youtube.com/watch?v=PUNloFs2Rx0