1600 East Andrew Johnson Hwy. Morristown, TN 37814 |
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Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.
Why do you need homeowners insurance?
Why do you need auto or water vehicle insurance?
What is the difference between Collision and Comprehensive coverage for my automobile?
Do I need more than the state minimum coverage for car insurance?
What is Fee-for-Service health insurance?
What is Managed Care health insurance?
What is the difference between custodial care and skilled care?
What is the difference between short-term and long-term disability polices?
What is the difference between non-cancelable and guaranteed renewable disability policies?
What are some of the other disability options?
What are the different types of life insurance?
Do I need business auto insurance?
Who needs life insurance?
If someone depends on you financially, you probably need life insurance. If you’re a breadwinner, life insurance can provide critical financial support to your loved ones if you die prematurely. Permanent life insurance can also help you establish a fund you can access for planned life events like college or retirement, or for emergencies and opportunities. Later in life, it can help you transfer your wealth to the next generation
Why do you need homeowners insurance?
It is really all about protecting yourself financially if something unexpected happens to your home or possessions. That’s important because chances are your home is likely one of your largest investments.
- If your home was destroyed by fire or damaged by a natural disaster, you’d need money to repair or replace it.
- If a guest in your home is injured, liability protection and medical coverage help pay expenses.
- If you are a victim of theft and vandalism, it can reimburse you for your loss or pay for repairs.
- If you are still paying for your home, your lender will require insurance.
It is important to know that homeowners insurance is meant to cover unexpected damage, not routine maintenance. Ask your agent to talk about what is covered and be sure to read your policy so you know exactly what’s included and what is not.
Why do you need auto or water vehicle insurance?
It’s really all about protecting yourself financially.
- If you’re in an accident or your car is stolen, it costs money, often a lot of money, to fix or replace it.
- If you or any passengers are injured in an accident, medical costs can be extremely expensive.
- If you or your car is responsible for damage or injury to others, you may be sued for much more than you’re worth.
- Not only is having insurance a prudent financial decision, many states require you to have at least some coverage.
What is the difference between Collision and Comprehensive coverage for my automobile?
Collision Coverage
Collision insurance laws may vary by state, but generally, this insurance covers a loss to the insured’s vehicle caused by its impact with another vehicle or object.
Comprehensive Coverage
Comprehensive insurance laws may also vary by state, but generally, this insurance protects against any loss of damage to an automobile except those caused by collision or by upset; for examples, glass replacement towing and labor coverage, or coverage against fire or theft.
Do I need more than the state minimum coverage for car insurance?
The simple answer to this question is yes. You should have more insurance coverage than the state mandated minimum auto coverage. The state mandated minimum auto coverage is designed to handle the basics of any auto accident or problem, however it is NOT designed to cover you in a “worst case” scenario. Minimum coverage will not properly protect you in the event something horrible happens. The agents at Bible Insurance Agency are trained to with you to determine what amount of coverage is a “Best Fit” for you.
What is Fee-for-Service health insurance?
These plans generally assume that the medical professional will be paid a fee for each service provided to the patient. Patients are seen by a doctor of their choice and the claim is filed by either the medical provider or the patient.
What is Managed Care health insurance?
More than half of all Americans have some kind of managed-care plan1. Various plans work differently and can include: health maintenance organizations (HM0s), preferred provider organizations (PPOs) and point-of-service (POS) plans. These plans provide comprehensive health services to their members and offer financial incentives to patients who use the providers in the plan.
What is the difference between custodial care and skilled care?
Because of old age, mental or physical illness, or injury, some people find themselves in need of help with eating, bathing, dressing, toileting or continence, and/or transferring (e.g., getting out of a chair or out of bed). These six actions are called Activities of Daily Living–sometimes referred to as ADLs. In general, if you can’t do two or more of these activities, or if you have a cognitive impairment, you are said to need “long-term care.”
Long-term care isn’t a very helpful name for this type of situation because, for one thing, it might not last for a long time. Some people who need ADL services might need them only for a few months or less.
Many people think that long-term care is provided exclusively in a nursing home. It can be, but it can also be provided in an adult day care center, an assisted living facility, or at home.
Assistance with ADLs, called “custodial care,” may be provided in the same place as (and therefore is sometimes confused with) “skilled care.” Skilled care means medical, nursing, or rehabilitative services, including help taking medicine, undergoing testing (e.g. blood pressure), or other similar services. This distinction is important because generally Medicare and most private health insurance pays only for skilled care–not custodial care.
What is the difference between short-term and long-term disability polices?
- Short-Term Disability policies (STD) have a waiting period of 0 to 14 days with a maximum benefit period of no longer than two years.
- Long-Term Disability policies (LTD) have a waiting period of several weeks to several months with a maximum benefit period ranging from a few years to the rest of your life.
What is the difference between non-cancelable and guaranteed renewable disability policies?
- Non-cancelable means the policy cannot be canceled by the insurance company, except for nonpayment of premiums. This gives you the right to renew the policy every year without an increase in the premium or a reduction in benefits.
- Guaranteed renewable gives you the right to renew the policy with the same benefits and not have the policy canceled by the company. However, your insurer has the right to increase your premiums as long as it does so for all other policyholders in the same rating class as you.
What are some of the other disability options?
- Additional purchase options
Your insurance company gives you the right to buy additional insurance at a later time for an additional cost.
- Coordination of benefits
The amount of benefits you receive from your insurance company is dependent on other benefits you receive because of your disability. Your policy specifies a target amount you will receive from all the policies combined, so this policy will make up the difference not paid by other policies.
- Cost of living adjustment (COLA)
The COLA increases your disability benefits over time based on the increased cost of living measured by the Consumer Price Index. You will pay a higher premium if you select the COLA.
- Residual or partial disability rider
This provision allows you to return to work part-time, collect part of your salary and receive a partial disability payment if you are still partially disabled.
- Return of premium
This provision requires the insurance company to refund part of your premium if no claims are made for a specific period of time declared in the policy.
- Waiver of premium provision
This clause means that you do not have to pay premiums on the policy after you’re disabled for 90 days.
What are the different types of life insurance?
Term
Term insurance provides coverage for a specific period of time, such as 10, 20 or 30 years. If you die during that period, the beneficiary you name on your policy receives the death benefit amount. When the term ends, so does your protection, unless you select a term policy that gives you the option of renewing your coverage.
Term policies don’t build cash value as most permanent life insurance products do. Because of this fact, when you buy a term policy you’re paying for pure protection. For this reason, term insurance is usually the least expensive kind of life insurance coverage you can buy.
Permanent
Term policies provide protection for your entire life by paying a sum to your named beneficiary upon your death. Most permanent policies build cash value over time, and you can access this cash value for emergencies, opportunities or planned life events such as a college education or retirement.
There are different types of permanent policies. Whole Life products usually offer level premiums and strong, traditional guarantees, such as a schedule of guaranteed values. Universal Life products normally offer flexible features, such as the ability to change your coverage amount or your payment schedule after you purchase the policy. Finally, Single Payment Whole Life is a type of insurance you buy with one payment. Because the death benefit is higher than the single payment, this kind of insurance is often a good fit for people looking to transfer wealth.
Our expert agents at Bible Insurance Agency will be glad to help you determine which type of life policy best fits your needs and lifestyle.
What is an annuity?
An annuity is an insurance contract that can protect you from outliving your money by providing a constant stream of income that can last your lifetime. Annuities are often considered the flipside, or opposite, of a life insurance policy. Life insurance offers protection against dying too soon, and an annuity offers protection against living too long and outliving your income.
You can purchase an annuity with a lump-sum payment or through multiple payments. Your money is then credited an amount of interest and continues to grow tax deferred. In exchange for your money, you are guaranteed payments that can last your lifetime.
Do I need business auto insurance?
Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business.
Many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the “principal insured” rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.
Do I need workers compensation insurance?
Employers have a legal responsibility to their employees to make the workplace safe. However, accidents happen even when every reasonable safety measure has been taken.
To protect employers from lawsuits resulting from workplace accidents and to provide medical care and compensation for lost income to employees hurt in workplace accidents, in almost every state, businesses are required to buy workers compensation insurance. Workers compensation insurance covers workers injured on the job, whether they’re hurt on the workplace premises or elsewhere, or in auto accidents while on business. It also covers work-related illnesses.
Workers compensation provides payments to injured workers, without regard to who was at fault in the accident, for time lost from work and for medical and rehabilitation services. It also provides death benefits to surviving spouses and dependents.
Each state has different laws governing the amount and duration of lost income benefits, the provision of medical and rehabilitation services and how the system is administered. For example, in most states there are regulations that cover whether the worker or employer can choose the doctor who treats the injuries and how disputes about benefits are resolved.
Workers compensation insurance must be bought as a separate policy. Although in-home business and business owners policies (BOPs) are sold as package policies, they don’t include coverage for workers’ injuries.
How does an umbrella insurance policy work?
An umbrella insurance policy works exactly as the name describes. The umbrella policy sits over the top of underlying insurance policies and provides an extra layer of liability insurance.
In the case of a personal umbrella underlying policies would include auto insurance, homeowners insurance, boat insurance, rental property insurance, etc. If the limit of liability is used up on the underlying policy then the umbrella kicks in to provide additional coverage.