FAQ

Insurance, by definition, is a contract between you and the insurance company. The contract stipulates that as long as you pay the premium, the insurance company agrees to pay for your covered losses if you experience an accident, theft or vandalism, or your car is damaged by certain causes. The amount you receive in compensation is based on several factors, including your deductible and the limit you choose for your policy.

There are several categories of auto insurance, each of which covers a different aspect of your risk as a driver. Here is a brief overview of these types of coverage:
- Liability: If you are deemed at fault in a car accident, liability coverage will pay for repairs, medical costs for injuries suffered by others in the vehicle, plus other expenses related to the accident such as legal fees. Your liability limits are set at the time you purchase your policy. There are two parts to liability coverage: Bodily injury liability and property damage liability. The limits are the maximum amount the policy will pay out; anything above that would come out of your pocket unless you have other insurance.
- Collision: If you hit another vehicle or an object (like a guardrail), your collision coverage will pay for damages or repairs to your vehicle after you pay a deductible (up-front amount). In other words, if you have collision coverage with a $500 deductible and you suffer damage that costs $1,500, your collision coverage will pay $1000 after you pay the first $500.
- Comprehensive: Comprehensive coverage, which is also known as "other than collision," pays for losses to your vehicle if it suffers damage from something other than an accident. For example, if a tree falls on your car or you hit a deer while driving, some portion of that loss will be covered if you have comprehensive coverage. Like collision, comprehensive has a deductible attached to it.
- Medical Expenses: This coverage pays for injuries that you, a family member or anyone else riding your vehicle may suffer in an auto accident, regardless of who is at fault. It also pays for injuries you or your family members may incur while riding in other vehicles.
- Uninsured/Underinsured Motorist: This coverage pays for injuries and property damage you suffer in an accident when the driver at fault either is uninsured or does not have enough insurance to cover your injuries and damage. It will also cover you in the event that a hit-and-run driver flees the scene and you cannot file a claim against that driver’s insurance company.
- Roadside Assistance: Many insurance companies offer this optional coverage. If you need a tow or service for a flat tire or dead battery, roadside assistance will provide that service for a nominal premium. Rental Reimbursement: If your car is in the shop for several days and you need a vehicle, this coverage will provide that for you for a nominal premium.

Car insurance helps you to recover from damage, injuries, and expenses related to a collision or other incident. It is not designed for you to come out ahead financially, but it is designed to keep you from suffering major financial hardship due to an accident, whether it’s your fault or not.

Car insurance is about risk transfer. If you don’t have insurance, the financial risk is on you in the event of an accident. Buying auto insurance mitigates some of that risk. For the cost of your premium, the insurance company will take on much of that risk for you.

When you get behind the wheel, you take a risk. You may attempt to be the best possible driver, but you also have to trust that everyone else on the road is driving well and paying attention, too. Auto insurance provides a safety net when drivers make mistakes.

In the event of an accident, you are at risk financially. If the accident is not your fault, and the other driver does not have adequate insurance, you have to pay for all damages to your own car plus pay for any medical bills if you are badly injured.

When you are at fault, you are typically liable for damages to the other person’s vehicle as well as the medical costs of injured victims. Additionally, you must cover the repairs to your own vehicle and the costs of legal fees if you are sued. All of your assets are at risk if you are uninsured or underinsured.

There are a number of ways to get car insurance. It is important to understand that there are well-established insurance companies that offer excellent car insurance coverage, and there are companies that were built solely to sell car insurance and make money. Some auto insurance companies gain customers through advertising and others through word-of-mouth and excellent service.

When you buy insurance through a Chuck Nash Insurance agent, you can eliminate confusion and find the best policy for your budget and insurance needs. Independent insurance agents do not sell policies for one company; they shop from many different companies to find you the best rates and coverage for your situation.

Forty-seven states require vehicles to have some level of insurance coverage before they can be on the road. Failure to have insurance can mean a fine and/or jail time in these states, not to mention suspension or revocation of your driver’s license. In most of those states, the minimum required coverage is liability insurance to cover damage and injuries you may cause, though a handful of states require additional coverage, such as collision and comprehensive.

Your vehicle just might be the most expensive possession you have other than your home. However, your auto insurance won't necessarily be costly.

While rates vary from state to state and take into account a variety of factors, car insurance is usually fairly affordable. The factors that affect your costs include whether your car is new or used, the overall safety rating of the car, your driving record, your age and gender, and even your ZIP code, as certain areas tend to have a higher occurrence of accidents and claims than others.

The discounts you may qualify for include:
- Good student discount: May apply if the young driver in your family has good grades
- Good driver discount: May apply if you’ve been accident-free for a period of time
- Multi-car discount: May apply if you insure more than one of your vehicles with the same company
- Multi-policy discount: May apply when you insure both your home and car with the same company

If you are self-employed and use your personal vehicle for business, you can take a tax deduction for your car insurance. For example, an independent sales professional who travels for work can take the deduction. However, only the actual mileage used for business travel is deductible. In other words, if you drive a vehicle 15,000 miles for business and 15,000 for personal use (a total of 30,000 miles annually) your deduction will cover half of your overall use.

Auto insurance is a contract, and as with many contracts, it can be canceled or voided by either party. You can drop the contract by changing to another company; the following are circumstances in which an insurance company can drop you:
- If you fail to pay your premiums
- If you present fraudulent information on your application for coverage
- If your license is suspended or revoked for any reason, such as too many accidents, or driving under the influence

Some states allow companies to drop coverage for other reasons; to learn about the laws in your state, contact a Chuck Nash Insurance agent.

There are a few reasons that your claim can be denied, including:
Filing a fraudulent claim exaggerating or fabricating an accident or loss.
Filing a claim under coverage you don’t have.
Filing a claim for a loss that is not included in your policy - for example, if you suffer an accident while using your car as a business vehicle.
Making improvements to your vehicle, such as giving it a fancy paint job, without notifying your company. The company might deny the claim or compensate you based on the original value of the vehicle.
If you miss a premium payment, you may have your coverage suspended until you catch up your payments; if you file a claim while your insurance is suspended it will be denied.

Some states allow companies to deny claims for other reasons, so it is a good idea to understand the fine print in your policy.

Credit scores and credit reports don’t always tell the full story about a person, but they do indicate your ability to pay your bills.

Car insurance companies do check credit as to determine your insurability. Your premium is a bill like any other, and a poor credit score can alert an insurer of financial trouble. If there is a chance that you may miss premium payments, an insurer may decide you are too risky to insure.

Car insurance is not an application for credit, so while insurance companies check your credit to determine your responsibility and financial security, they are not extending credit. A credit check for a car insurance quote is called a “soft pull” and it does not affect your credit rating.

Credit scores have become very important in recent years as lenders have tightened restrictions. Many families are focused on eliminating debt and getting caught up on payments so they can improve their credit scores and get better rates when getting a mortgage or a car loan. Every time you fill out an application for credit, your credit score can be affected because a good percentage of your score is based on how much total credit you have and the number of accounts you have.

An insurance company may check your driving record when you are looking for a new policy, renewing your existing policy or modifying the policy by adding a new driver or additional vehicle.

You may also wonder whether your driving record can prevent you from getting insurance. Your driving record check typically will not prevent you from getting coverage, but it does help the company determine the risk they will take when issuing a policy to you.

If you have a record that includes tickets, accidents or points on your license, these factors indicate to the insurance company that there is a higher risk of paying a claim. In order to compensate for that, the company may charge a higher premium than someone with a clean driving record.

When you make an insurance claim or begin the process to switch insurance companies, information about your claims history is placed into a national loss-underwriting database. That information can be accessed by all insurance companies that are considering insuring you.

However, insurance companies do not share your personal information directly with each other. The information included in the claims database is not shared, per se, but it is available for all companies to find. Keep in mind that since your driving record is on file with your state’s motor vehicle department, your information is public record – including tickets and accidents.

This is a common question. If you make sure you have your own vehicle covered, do you need to get the special coverage offered at the rental counter if you go on vacation and get a rental car?

You will have to double-check your particular policy, but most policies do provide the same coverage for a rental car that you have for your personal vehicle unless the rental is being used for business purposes. It’s always a good idea to check your policy. If you are seeking a new policy, a Chuck Nash Insurance agent can help you find one that does cover rentals.

If your car is stolen, a number of things need to happen for you to be compensated for your loss. First, you will need to file a police report and wait while there is an attempt at recovery. If your car is not recovered, you can file a claim with your insurance company if you have comprehensive coverage.

Because of the risk insurance companies face with fraudulent claims, you will need to complete some paperwork to file your claim. But providing you have documentation for the stolen vehicle, your insurance will compensate you for the value of the vehicle up to the limit of your comprehensive coverage.

Most insurance companies will not issue or maintain insurance for someone who has a suspended or revoked driver’s license. If you need to get from home to work while your license is suspended, you are not out of luck.

You can work with your local DMV to get a hardship license, or you can file an SR 22 form through your insurance agent who can file that with the DMV. If you are allowed behind the wheel due to a hardship license and/or an SR 22 form (which guarantees insurance coverage for a period of time), then you will be able to get car insurance.

Home Features and Characteristics — Your home's age, type of structure, wiring, roof, garage, etc., can affect your homeowners insurance premium. Older homes can often cost more to insure, and those costs can differ depending on whether your home is brick, frame, stone or has synthetic siding.

Location — Where your home is located can change your homeowners insurance premium. For instance, your home insurance rate can be affected if your home is in close proximity to a fire station; is exposed to extreme weather, such as hurricanes, tornadoes or earthquakes; or is in a neighborhood more prone to theft.

Protective Devices — Burglar alarm systems, smoke detectors, fire extinguishers, sprinkler systems and deadbolt locks can lower your homeowners insurance premium.

Personal Factors — What you do can affect your homeowners insurance premium, too. For instance, smokers may pay more for home insurance than nonsmokers. A good credit history also can lower what you pay for home insurance.

Claims History — If you have a history of claims on a homeowners insurance policy, you may pay a higher premium.

Unlike driving a car, you can legally own a home without homeowners insurance. However, if you finance your home with a mortgage, your lender most likely will require you to have home insurance coverage to protect your home in case of damage cause by unforeseen circumstances, such as fires or natural disasters..

If you live in an area that is prone to flooding or earthquakes, your lender may also require you to purchase flood insurance or earthquake insurance..

After you pay off your mortgage, you aren't required to have home insurance. However, you should keep your home insurance policy active to avoid risking what you’ve invested in your home..

If you purchase a condominium or co-op, your board may require you to buy condo insurance or home insurance. Be sure to check with your board to see what type of policy is required..

If you’re looking to insure a townhouse and your townhome association has a master policy (which typically covers the structure and common areas), you’ll get renters insurance. If your association does not have a master policy, you’ll get homeowners insurance.

When you purchase a home and a homeowners insurance policy, you should create an up-to-date home inventory to expedite a claim settlement if you ever need to make one. With a complete home inventory, your insurance company can verify property easier, which makes settling your claim easier. Plus, you can easily verify losses for your income tax return with an updated home inventory.

Start your home inventory by making a list of your possessions, describing each item, and noting the make and model and where each item was purchased. Include sales receipts, purchase contracts and appraisals if you have them, too. Organize clothing into categories for easier reference.

Remember to list big-ticket items like jewelry, artwork and collectibles. Take pictures of rooms and important individual items..

Videotape your home by walking through it and describing the contents throughout the house..

Save an inventory list on your personal computer and store it on a separate disk or drive..

Put all your photos, lists and videotape documentation in a safe deposit box.

Canceling a homeowners insurance policy and choosing not to renew it are two very different actions an insurance company can take.

Typically, insurance companies can only cancel an active policy if one or all of the following occurred:
- The policy has been in force less than 60 days
- You fail to pay the premium
- You commit fraud or made serious misrepresentations on your application

Nonrenewing a homeowners insurance policy is a decision you or your insurance company can make to discontinue coverage at the end of a policy term. Depending on your state, if your insurance company chooses to nonrenew your policy at the end of the policy term, it must notify you and provide an explanation within a specified time period. You can contact your company's consumer affairs division if you disagree with the reason or want further explanation.

Although homeowners insurance policies differ in their actual structure, most contain the same basic components:

Declarations Page — Usually the first page of your homeowners insurance policy, it typically contains the following summary information:
- Name and address of the insured
- Dollar amount of coverage in the policy
- Description of the insured property
- Cost of the insurance
- Name of the insurance company insuring the risk
- Contact information
Definitions — Explain the meaning of terms used in the policy..

Coverage — Details the extent of protection for both property (house, structures, contents) and liability (bodily injury or property damage to others for which you are liable) in your homeowners insurance policy..

Exclusions — Explanation of what is not covered by your homeowners insurance policy, under both property and liability coverage..

Conditions — Outline the responsibilities of both the insured and insurance company under the policy. Your duties in the event of a loss and also the procedures the company will follow to settle any losses are detailed here..

Endorsements — Riders, amendments or attachments that alter the standard coverage provided by your home insurance policy. If you choose endorsements for your policy, you may pay an additional premium for them.

Homeowners insurance typically covers you for:
- The structure of your dwelling
- Other structures on your property
- Your personal belongings
- Personal liability

The type and amount of coverage you need depends upon:
- The type of home you live in
- Its value
- The value of your personal property
- Whether or not you have a mortgage on your property
- Your personal finances
Since your family situation changes over the years as you remodel and increase the value of your home, the right amount of coverage for you will change over time. So be sure to evaluate your coverage needs on a regular basis.

Part of the process of securing a mortgage on a first home is purchasing homeowners insurance. Because the bank has a financial interest in your home, they need to be sure that their investment is protected if a loss occurs.
As a new homeowner, you also need to be sure that your investment is protected, including your home's structure and your personal belongings.
Of course, you should also protect your financial assets in the event that someone is accidentally injured on your property. You don't want to find yourself responsible for costly medical bills. Personal liability coverage protects your assets in the event of financial liability or lawsuit.
Not sure how much your home is worth?
Our insurance agents can help you with that, and your financing institution will insist on at least a minimal level of insurance coverage.
If you want to know more, call (512) 546-7100

When you live in a condo or co-op apartment, you enjoy many of the advantages of home ownership, but you don't actually own the building that you live in. As a result, home insurance for condo and co-op owners is different from homeowners insurance.
A specialized form of homeowners insurance, called HO-6, addresses the needs of condo owners.
There is a master policy held by the Condo Association or Co-op Board that generally covers the building and its common areas in case of covered losses. However, as a condo owner, you need insurance to protect your personal property from fire, lightning, explosion, storms, vandalism and theft and more. These are just a few of the named perils (specific risks) typically covered by an HO-6 policy.
These coverages protect your personal belongings in the event of loss.
As a condo owner, you also need to insure improvements you may have made to the structure of your unit, like private entry ways, garages, additions, balconies, and specialized fixtures. If these were not part of the original structure of your unit, then these improvements should be covered by your condo insurance policy to properly protect your investment.
Note that master policies differ from condo association to condo association.
Be sure to know exactly what is covered by the master policy, and make sure that your HO-6 coverage takes care of the rest.

Whether you live in a house, a condo or an apartment, if someone is hurt or suffers a loss in your home you could be found personally liable. In other words, you're financially responsible for the expenses that may result.
It may be as simple as someone slipping in your home, in the entryway or on the stairs. Even a broken leg can cost thousands of dollars in medical expenses - and potentially more if lost wages are involved.
Have a dog? Dog bites occur all too often, and you will be responsible for pain and suffering, medical expenses, and potentially lost wages.
If the person injured decides to sue, can you cover the legal expenses? Do you really want to put your assets at risk?
Personal liability coverage is a standard part of most home insurance policies. A few extra dollars can go a long way to preventing financial disaster down the road.

Here are just a few of the things that can lower your home insurance premiums:
- Safer building materials
- Security systems
- Smoke alarms
- Sprinkler systems
- Deadbolt locks

Don't assume that your personal belongings in a college dormitory, fraternity/sorority house, or apartment are automatically covered by your parents' homeowners insurance policy.
Be sure to check the provisions of that policy, but generally speaking, you are not adequately covered unless you have coverage for your personal possessions.
Studies show students in dorms, fraternity/sorority houses, and college apartments are at risk, particularly if they own expensive electronics or sporting goods.
College students may think they are covered by their parents' homeowners policies, but that's generally not true. If covered, they are only partially covered.

Renters insurance provides coverage for your lost, damaged, or stolen personal possessions. It also provides coverage for injuries to another person that might occur in your rented home or apartment. For example, if someone is hurt in your apartment, and the injury is deemed to be your fault, that person can file a liability claim with your insurance company to cover the costs associated with the injury.

If the injured person chooses to file a law suit against you, your renters liability insurance would pay for your legal defense, up to the limits set on your policy. If you do not have renters insurance, these costs would be your responsibility to pay out of pocket.

To learn more about renters insurance and the amount of coverage that makes sense for you, talk to a Chuck Nash Insurance agent. An agent can provide free renters insurance quotes from several different insurance carriers and help you find the right coverage at an affordable price.

Speak with your property manager relating to any insurance coverage requirements that might be required. We offer both a voluntary basic renters policy and also a voluntary stand-alone liability policy. The basic renters' policy provides both liability coverage and personal property coverage. The stand-alone liability provides insurance coverage for accidental physical injury to another person as well as damage to property caused by the insured policy holder. It does not provide coverage for your personal items if they are destroyed in a fire or other accident. We recommend you carefully consider your individual coverage requirements.

Yes, your spouse and up to three additional adults (over 18 yrs.) can be covered under one policy. Nominal additional premium amounts may apply.

Renters insurance provides financial reimbursement to cover a tenant’s lost or damaged possessions as a result of fire, theft or vandalism. It also covers a tenant’s liability in the event that a visitor is injured on the premises. Whether the renters insurance or the landlord insurance pays for the costs associated with the injury will depend on the circumstances of the incident, the location on the premises where the injury occurs, and who is at fault.

Renters insurance can also provide compensation for alternative living arrangements in the event that your rental unit or rented home becomes uninhabitable due to storm damage or an apartment fire.

Renters insurance will help to pay your costs if you suffer a loss, such as a burglary. The amount of compensation you will receive depends on the type of loss and the amount of coverage you have in place. For example, you can buy “actual cash value” (depreciated) coverage for your personal property, or you can buy replacement cost coverage for your personal possessions.

Certain items such as jewelry, collectibles or other valuable items may have a value limit or require additional insurance coverage to provide full coverage for loss, theft or damage. You will also be responsible for a deductible, which is an out-of-pocket expense.

In the event that a visitor to your home, condo or apartment is severely injured, that person can file a claim with your insurance company, and your insurer will address the claim.

Renters insurance is necessary if you are renting a home or apartment and want to be sure your valuable possessions are protected from loss, theft or damage, and protects you in the event of liability claims as well.

You are not required to carry renters insurance by law, but a landlord can require renters insurance in your rental agreement in your lease. Carrying renters insurance protects you and the landlord by ensuring that no matter what happens on the premises, either your renters insurance or the landlord’s insurance will provide compensation.

As an example, what happens if a neighboring tenant leaves cooking unattended and starts an apartment fire that damages your unit and belongings? It’s possible that some combination of the neighbor tenant’s renters insurance, the landlord’s property insurance, and the personal property insurance in your renters policy will come into play to cover the cost of repairs.

Renters insurance is important because your possessions are not protected by the landlord’s insurance policy. Landlord insurance covers damage to the building but does not protect your possessions.

Another good reason to have renters insurance is for protection against liability claims. The liability portion of your renters insurance will provide compensation if a visitor to your rented home is injured. If that person files a lawsuit against you, your renters liability insurance will also help to cover the costs of your legal defense.

Renters insurance can also cover temporary accommodations in the event that you have to live elsewhere while your rental is being repaired due to fire, smoke or water damage.

The cost of renters insurance is generally quite affordable. You can typically expect to pay between $100 and $250 per year on average, depending on where you live and the coverage amount you carry on the insurance policy. The national average for renters insurance is $15 to $30 per month.

The best way to find the renters insurance you need is to contact a Chuck Nash Insurance agent to compare renters insurance costs and find an affordable policy that meets your needs.

Renters insurance is not tax deductible except in the following situations:
- You use a part of your residence regularly and exclusively to operate a business. You then may deduct a portion or your renters insurance, based on the dimensions of the space where you operate your business relative to the total size of the premises.
- You are an employee and work in both your employer’s office and your rented premises. In this case you can deduct a portion of your renters insurance in the same manner as a home office. Check with your accountant for complete details.

When you choose a renters insurance policy, you will need to choose coverage amounts for three basic types of coverage:
- Personal property: Typically a minimum of $2,500 worth of coverage
- Liability: Amounts you choose, such as $100,000 of coverage for liability claims and legal defense
- Additional riders: Coverage you may need for your collectibles, personal items of value such as jewelry, and outdoor toys such as snowmobiles, ATVs or personal watercrafts (PWCs)

Did you know that the average person has over $20,000 worth of personal belongings? When you consider the cost of electronic equipment, clothes, jewelry, tools, kitchen gadgets and other personal items, you probably have far more invested in your personal property than you realize.

The best way to determine how much insurance you should carry for your personal property is to create an itemized list of your belongings and their replacement costs. It is important to determine how much it would cost to replace each item as brand new. This should give you a ballpark figure for the total amount of insurance coverage you should carry.

To choose the amount of liability coverage you need, consider the potential costs of a liability claim if you were sued for negligence or for another person’s loss. A Chuck Nash Insurance agent can help you assess your needs and risks and choose the coverage amounts that are right for you.

Renters insurance covers fire and smoke damage after you pay your deductible. The amount of compensation you will receive in the event of fire damage depends upon several factors, including:
- The amount of coverage you buy
- Whether you choose actual cash value (depreciated) coverage or replacement cost coverage for your belongings
- Your deductible amount

In the event of a fire, you will file a claim for the loss, pay the deductible for your policy, and then receive compensation for the remaining costs of your loss, up to the limits of your policy.

Renters insurance covers your possessions from theft after you pay your deductible amount. Renters policies typically cover your belongings, whether your rental home is burglarized, or the items are stolen from your car or while you are traveling. Review the specifics of your policy to determine the circumstances under which you can file a renters insurance claim for theft.

Your renters insurance will typically cover your belongings if they are stolen from your car, but would not cover damage to the car itself. For car damage, you will want to check your comprehensive automobile insurance policy.

Whether your items are covered if they are damaged, stolen or destroyed while in your storage unit depends on the specifics of your renters policy. Some insurance companies do not cover personal items in a self-storage unit while other companies will extend limited coverage. You can buy additional insurance coverage through the storage facility, if it is offered, or through your insurance company.

Renters insurance policies typically exclude bug infestations of any kind, including bed bugs, cockroaches, and other bugs as well as rodent infestations. You most likely are also not covered for any damage these pests cause, or for the costs to eliminate an infestation problem.

Most renters insurance policies do not cover damage caused by floods. Like home owners, renters must purchase flood insurance separately to be covered for damage from flooding. However, you will likely be covered if there is a water leak within your rental unit that causes water damage to your belongings. Be sure to read your renters insurance policy carefully so you know what is and is not covered.

Whether or not damage to any of your personal electronics or other belongings is covered depends on the coverage you buy and the cause of the damage. If you have replacement cost coverage for your personal belongings, and the damage to the television was caused by a covered peril such as fire, theft or vandalism, your TV will be most likely be covered. If it breaks from wear or misuse, your broken TV will not be covered.

Life insurance protects anyone who depends on you financially. If you die unexpectedly, life insurance provides money that can offset the sudden loss of income.

- Protecting your family. Your family depends on you. In the event of your death, your family and dependents will need a financial cushion to get back on their feet. If you have children, you might want to cover their child care and education costs until they are adults. If you have a mortgage or other debt, you want to make sure your family is not burdened by it after you are gone.
- Protecting your business. Business owners who want to ensure that their business keeps running are prime candidates for life insurance. Life insurance can help your partners, employees and heirs. Business owners also might want to consider life insurance policies for key employees.
- Protecting your heirs. For high net-worth individuals with large estates that will be subject to estate tax, life insurance can help heirs pay their taxes rather than selling off assets.

First, you need to choose a policy type. The two major types of life insurance are permanent and term. For the majority of consumers, term life insurance is the right choice. Term insurance covers you for a set amount of time, and the benefit can be used to cover any expenses in case you die. When choosing a policy, you should keep your goals in mind. If you are a new parent, you want to make sure your policy will cover any child care, education and other costs for your children. If you own a home, you want to make sure your spouse will be able to afford the mortgage payments without your income.

Once you choose a policy type, you need to determine a policy amount. When choosing a policy amount, you need to keep your financial obligations in mind. If you are a parent, you will most likely want to cover child care and education costs. If you’re a homeowner, you will probably want to cover your mortgage.

With term life insurance, in addition to choosing a policy amount, you will have to decide a policy duration. Policies can last for up to 30 years. To choose a term life insurance policy duration, you should take your longest lasting financial obligation into account. For example, if you have 30 years left in your 30-year mortgage, you will most likely want to get a 30-year life insurance policy as well.

Term life policies, which are best for most people, insure you for a specific time period, such as 10 to 20 years. If you die within the term, and assuming your premiums are paid up, your beneficiaries get the payout amount.

Whole life policies, a type of permanent life, cover you as long as you live, so they tend to be far more expensive for a comparable payout or benefit amount.

Whole life policies also have an investment component built in, known as "cash value".

For the average consumer, term life is the right choice.

We will need your date of birth, ZIP code and gender to give you a quote. The older you are, the more you will have to pay for life insurance. Men and woman also pay different rates. Policies will vary slightly from state to state..

Health information is very important when calculating life insurance rates. To provide a quote, companies typically will ask for basic health information such as height and weight. Eventually, the company to which you apply will ask you to sign a release for your medical records. Most policies also require a medical exam before setting the final premium.

When calculating life insurance rates, companies will take your lifestyle into account. Smokers pay much more for life insurance than nonsmokers. Similarly, people who engage in extreme sports and people with bad driving records will probably pay more.

Medical exam: For most policies, you will have to complete a health exam. The insurance company you're applying to will send a healthcare professional to your home or office.

Interview: The insurance company will ask you questions about your family medical history and lifestyle.

Paying for your insurance: Once you are approved for life insurance, be sure to pay your premiums. Otherwise, your company will cancel your policy. Also, as you experience life changes, your life insurance needs will change as well. If you buy a new home, get married or have more children, you might want to revise your life insurance policy.

The Insurance Law requires a “free look” period of not less than ten days nor more than 30 days from the date the policy is delivered to you.
A policy sold by mail order must provide for a 30 day period, and a policy sold in a replacement situation must provide for a 60 day period.
The insurer must refund to you any premium paid, including any policy fees or charges.

For scheduled premium policies, the policy will provide for a 31 day or one month grace period within which you can still make your premium payment.
Your policy will continue in force during that time.
For policies in which the amount and frequency of premiums may vary, the policy must provide a grace period of 61 days.

For scheduled premium policies, the policy must provide for reinstatement of the policy within three years from date of default, unless the cash surrender value has been exhausted or the period of extended insurance has expired.
In order to reinstate the policy, you must complete a reinstatement application and provide evidence of good health to the satisfaction of the insurer.
In addition, you will be required to pay all the overdue premiums with interest (not to exceed 6%) and repay or reinstate any outstanding loans at the applicable policy loan interest rate.
This reinstatement right is not required for polices in which the owner may vary the amount and frequency of premium payments.

If the insured dies by suicide during the first two policy years, the insurer will refund the premiums paid less dividends paid and less any indebtedness, including interest due and accrued.
The face amount will not be payable.
If the policy was issued as a result of a conversion from another policy, the two year suicide period runs from the issue date of the original policy.