New Parents’ Guide to Insurance

As new parents, you’re probably overwhelmed by the amount of planning and the number of decisions you must make in order to ensure the comfort and safety of your newest addition. It's important that you not overlook how insurance fits in to your new role as a mommy or daddy.

Life Insurance
When you become a parent, you may want to consider creating a trust to be the beneficiary of your life insurance policy. By naming a trust, you can ensure that your death benefit proceeds don't get added to your estate or, after your death, your spouse's estate for tax purposes. In addition, you can make sure that a portion of your benefit is allocated toward your minor child at the time he or she reaches the age of majority or whenever you specify within your trust. Additionally, a trust allows you a certain amount of control over the use of your death benefits so that you can direct them to help make financial life easier on your spouse and children immediately after you pass away and later on in life.

Buying life insurance for your child gives them a financial head start when they become adults because by buying a child an insurance policy, you lock in low rates and can start creating cash values that they can take loans against later, such as when they go to college.

Disability Insurance
Your children rely on you to support them. A disability insurance policy ensures that you can continue supporting them even in the face of a disabling injury. Disability insurance gives you much more control over the receipt of benefits than Social Security and can also help you rely less on savings during the waiting period for benefits to begin.

Home or Renters Insurance
Giving children a safe place to live is one of the most basic responsibilities of a parent. With home or renters insurance, you can ensure that your children have a safe place to live even after an insurable incident makes your home unlivable as long as you have loss of use benefits. In addition, both types of insurance will help you replace your family’s lost possessions. Finally, a home insurance policy will help you get necessary repairs to make your home livable once more.

Auto Insurance
Not only is Houston auto insurance required by your state, but it also offers one of the best ways to keep your family safe. Auto insurance can help pay for liabilities you incur, removing the need to access your savings to satisfy injured parties. In addition, the medical payments can help your family afford the best care after they've been injured. It's important to note that state insurance limits may not be representative of the actual protection you need.

If you have questions about the kinds of insurance policies you should have as a new parent or you want to make changes to your insurance portfolio, give us a call at Reliable Insurance Managers.

How to Compare Car Insurance Rates and Policies

If you are searching for a new car insurance policy, your initial impulse is probably to compare insurance premiums in order to make certain that you get the best deal on your policy. But comparing rates alone will not provide you a good indication of which policy is more cost effective, dependable and better suited to your general needs. Use this list to help you narrow down your choices for all the reasons you should consider, not just cost.

1. Compare coverage options.

Check out the coverage options for all the different policies you have gotten quotes for. Make sure they are similar and that they provide you the security that is most vital to you. This may mean they only consist of state-required coverages or that they include additional protections like uninsured motorist coverage.

2. Compare deductibles and limits.

Policy premiums will differ, especially if you set different limits and deductibles on each. It isn’t a fair comparison to put a low-cost policy with high deductibles and low limits up next to one with small deductibles and high limits. So when you do your comparisons, make sure the deductibles and limits on each policy, for each coverage option, are comparable.

3. Compare A.M. Best ratings.

An insurance policy is only as good as the company that issues it. When comparing two different policies from two different carriers, don’t just center on cost, deductibles and coverages; take a look at the A.M. Best rating for every company to make sure they are alike in terms of financial standing.

4. Compare customer service and payment options.

If you like to do business on the internet, make sure that the insurance companies you are looking at have that capability. If you’d rather to converse on the telephone, make sure they can do that. Also, verify their different payment options (online, automatic draft, check, etc.) and pick the policies from those companies that have what you are searching for.

5. Compare rates.

Now that you’ve made sure that you have several comparable policies from different companies, it’s time to actually look at the rates and compare them. Be sure to check out all premium types—the annual, semi-annual, quarterly and monthly so that you get a good idea of the differences.
Once you’ve compared all these items and narrowed down your choices, you should finally come up with the policy that meets most, if not all, of your needs.

Call us at 713-227-7283 to review your current Houston auto insurance policy or customize a new policy today!

The 5 Most Common Distractions of Teen Drivers

The 5 Most Common Distractions of Teen Drivers


AAA recently released the findings of a study they conducted regarding the distractions encountered by teen drivers. The purpose of the study was to discover what preventable environmental events pulled a teen’s attention from the road. Using videos, audio clips and other data, they amassed a list of distractions encountered during real-life driving adventures.

Because this list is based on actual events, it gives us priceless data that can help us determine which topics are most important to discuss with our teens and how to teach them to be better, less distracted, drivers. Here are the five top distractions AAA researches observed.

Electronic devices:

In almost 7% of the clips AAA researchers studied, electronic devices such as cell phones were present and distracting, and female teen drivers seem especially prone to being distracted by them. Not only is it important to talk to your teen about the dangers of using a cell phone or texting while driving, but it is also important to have a system of preventative measures in place that stops them from engaging in this behavior while behind the wheel. This can include downloading apps that auto respond to text messages while your teen is driving so they feel less compelled to answer texts themselves, monitoring cell phone usage so that you can identify periods when calls were made or received while driving, and having consequences for utilizing electronic devices while driving. But it’s not just about having consequences in place—it’s also about enforcing them.

Adjusting controls:

Distraction due to adjusting dashboard controls was present in 6.2% of the data collected by AAA. Changing the radio station, raising the volume of the stereo, changing CDs, skipping tracks, and even operating some of the dashboard utilities such as directionals and windshield wipers can easily pull your teen driver’s eyes away from the road ahead. Make sure your teen understands that they must be comfortable with all dashboard controls before they begin driving and that the only appropriate time to play with the radio and CD player is when they are at a complete stop or when they are able to do so without looking at the controls. It only takes a few seconds to get into a car accident—make sure they understand that changing the radio station provides just enough distraction for that.


Attending to personal hygiene:

3.8% of the data collected by AAA showed teen drivers distracted by personal hygiene behaviors. Make sure your team understands the consequences of removing his or her eyes from the road for the three seconds it takes to put their misplaced hair back in place. Let your teen know that brushing their teeth, shaving, combing their hair and applying makeup are all behaviors that should be done before they get in the car or after they reach their destination.

Eating or drinking:

In 2.8% of the clips analyzed, a teen was distracted by either eating or drinking and sometimes both. It’s hard enough for a teen driver to learn how to interpret and react to all the information presented when they are driving—adding eating and drinking to the menu seems simple, but can result in way too much distraction and should be discouraged while they are behind the wheel.

If they must eat breakfast after leaving for school, give them something easily portable that they can munch on after they've parked the car and are walking to their first class.

Reaching for another object.

In 2.5% of the clips observed, teen drivers were distracted as they reached for another object found inside the vehicle.  Remind your teen that while driving, paying attention to the road is the most important task they have to complete. Should they need to reach for an object that is not right next to them while driving, it's a good idea to pull over and stop the car or to ask a passenger to get it.

By minimizing the distractions your teen faces while driving, you’ll not only keep them safer but also keep their insurance premiums lower. To discuss more safe driving tips for you and your teen, or to talk about Houston auto insurance rates and limits that are perfect for teen drivers, give us a call at 713-227-7283.

Insurance for College Graduates

Whether you're graduating from high school or college, this can be one of the most exciting times in your life. But don't allow your enthusiasm for freedom and the future to interrupt your good sense and the process of purchasing the right insurance policies for all of your risks.

Renters Insurance Whether you are moving into a dorm or an apartment, you need specific protections for property such as your computers, clothes, and furniture as well as protection against potential liabilities. If someone should be injured while visiting your apartment you could be found liable for their injuries and the subsequent medical expenses, damages, and lost wages. A renter’s insurance policy will pay for many of these expenses while also protecting you from the loss of your property after an insurable incident.

Health Insurance You may be permitted to remain on your parent’s group health insurance policy if you are going to school full-time or are under the age of 26. But don't take for granted that your parent’s policy can still cover you or is even the best option. Instead, talk to an insurance agent to ensure that you are properly covered and to find out if there are any less expensive alternatives available.

Auto Insurance If you've been on your parent’s auto insurance policy, graduating from high school or college may mark the time when you should look into your own auto insurance coverage. Auto insurance rates can vary based on many factors including the amount of driving you do and the location where you park your car. Talk to your insurance agent to discover the best options for your auto insurance coverage.

Life Insurance Locking in life insurance rates when you're young and healthy is extremely important. Insurance premiums will only rise as you age, so taking out a first or supplemental policy when you graduate is a good idea. If you take out a whole life policy you may then be able to tap into cash values for tax-free loans in a few years while also guaranteeing your family some benefits for final expenses should you pass away.

We are here to help you get your insurance on track for your new post-graduation life. When you're ready to get started with a Houston Auto Insurance Quote, give us a call at (713) 227-7283.

Long term care insurance - When should I purchase it?

If you are 40 or over, then the time to start shopping for a long-term care (LTC) insurance policy is now. There is no age that marks the starting point for the LTC shopping experience, but the older you get the more expensive your rates will be, which means it's best to shop as early as possible.

Why Age Matters
The younger you are when you buy your LTC policy, the longer the insurance company has to collect premiums from you before you can be expected to start utilizing the benefits. In addition the younger you are the fewer health problems you will have had and since health is a factor in determining your premiums, this could make a substantial difference.

Learn how delaying the purchasing long-term care insurance could increase in cost for you.

If you're 40 or over and you're starting to finalize your retirement planning, you shouldn't hesitate in obtaining long-term care insurance. The only thing you stand to gain by putting the purchasing decision off is a higher premium. Give us a call today at 713-227-7283 for a Houston long term care insurance quote and give you an idea of what your premiums will look like if you delay this important decision.

Updating Your Life Insurance in 2012

The ultimate goal of anyone with a life insurance policy is to ensure that their loved ones are comfortable after they pass away. If you do not update your insurance coverage when changes occur in your life, you could leave your family without the benefits you intended. In order to determine what changes you should make to your life insurance coverage in 2012, consider the following. 

1. Are there any new family additions? If you’ve added people or pets to your family, then your cost of living increased. That means your family will need more in order to continue in the same standard of living after you’re gone. 
2. Did you relocate? If you’ve relocated then you have all new expenses, which may be more than those that you originally had when you took out your insurance policy and chose a death benefit.
3. Have you been promoted? If you earn more money now than you did when taking out the policy, then your family will need a larger death benefit to replace that income after you pass away.
4. How are your savings? If you have had trouble meeting your savings goals for emergencies, college tuition and retirement that may indicate that your heirs need even more financial assistance when they no longer have your income to rely on.
5. Has your debt increased? If you’ve purchased a new home, new car, or even new electronic gadgets, then you may have increased the amount of debt your family needs to pay off after you pass away. Increasing your death benefit will allow them to more easily meet these obligations.
6. What is the new cost of living? Inflation can increase the standard cost of living for your family. Consider how much inflation has affected the effectiveness of your current death benefit and make the appropriate increases.
7. Who’s your beneficiary? Are the primary and contingent beneficiaries on your policy still the individuals who should be on your policy? Or, have you got a trust that should now be named on the policy?
8. Will your heirs pay estate taxes? Estate taxes are back in effect. If your family will be expected to pay them based on the size of your estate, then it’s a good idea to increase your policy death benefit. If you’ve made your spouse the beneficiary, consider the fact that your death benefit, should you pass away prior to him or her, will be added to his or her estate later and may prompt estate taxes.

Your death benefit may face several expansions over the course of your life. These may be handled with the issuance of separate term policies or through increases of your main policy death benefit. If you want to discuss your options for gaining complete coverage for your family, give us a call. 

Have more life insurance questions? Call Reliable Insurance at 713-227-7283 or get a Texas Life Insurance quote today!

The Value of Accidental Death Coverage

The Value of Accidental Death Coverage

Some deaths are expected. Following months or years of illness, an expected death may even come as a relief that ends the suffering of the now deceased and allows his or her survivors to come together and celebrate the deceased’s life. Other deaths are sudden; the result of an accident that no one could have prepared for. These deaths take life much too soon and leave the deceased person’s family reeling.

An accidental death and dismemberment rider increases your life insurance policy’s death benefit in the event that your death is caused by an accident. This additional benefit can’t stop the pain your family would feel if they lost you suddenly, but it could help them deal with the sudden an unexpected financial loss.

Accidental Death

You have built a life for your family based on the income that you presently make and that you expect to make in the future. Without the means to replace that income after your death, your family may be in deep financial trouble. While your existing life insurance policy can help clear up some of this strain, the additional benefit found in an accidental death rider could ensure that they are able to meet obligations that you did not anticipate when you initially took out the policy and set the death benefit. In addition, it can help them get the grievance counseling they need to move past the emotional strain of your death and the resulting anxiety.

Accidental death riders do have exclusions that you should read. In order to qualify for the payment of benefits, the death must be the result of an accident. Some deaths caused by events such as acts of war, may be excluded.

Dismemberment

AD&D riders provide a percentage of your death benefit to you, rather than your beneficiaries, should you suffer the loss of a limb, your sight, or your hearing (see your policy for exceptions and details). Having access to a portion of your death benefit can be extremely helpful in assisting your family to adjust to this loss and the medical costs it creates. It can also help fill the gap between the date you experience the loss and the waiting period of your disability policy. 

If you’re interested in learning more about how an accidental death and dismemberment rider can help you and your family be protected against an early, unexpected loss, give us a call. 

At Reliable Insurance, we have been serving Texas since 1996. We specialize in Texas Life Insurance as well as home, business and car insurance in Houston, Katy and surrounding areas in Texas. Contact us today at (713) 227-7283 for questions or to get a free Texas Life Insurance quote.