Monthly Archives: August 2013

Is Life insurance tax-free in Milford, Pennsylvania?

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So you’re thinking of investing in a life insurance policy in order to provide for your loved ones, but aren’t sure what tax implications it will have on them when you pass on and they have to make a claim. The good news is that, should this unfortunate event occur, in the state of Pennsylvania, life insurance payouts are exempt from the inheritance tax. This means that your beneficiaries won’t have to pay any taxes on the money they receive from your life insurance policy.

When deciding on how large of a policy to buy, the general rule of thumb is to buy eight to ten times the amount of your annual income. If you earn $50,000 a year, then you should look at policies ranging from $400,000 to $500,000. Of course, this isn’t a hard and fast rule. You should carefully consider your family’s circumstances when making this decision. If you’re almost empty nesters, you can go with a lower figure than a young family in which the oldest child is only in elementary school. And perhaps you need more than ten times your annual income depending on your living standards.

Also remember, that in situations where one parent stays at home, he or she needs to be insured just as much as the primary breadwinner. The at-home parent provides a huge economic value to the family; some of their many duties include acting as a chef, housekeeper, taxi driver and tutor. Opt for at least $250,000 in life insurance on this person so that the family can stay afloat financially should something happen.

Your Milford, Pennsylvania independent agent will be glad to work with you to determine how much life insurance you need. They can look at your unique situation and help you accordingly.

In Milford, Pennsylvania, in what cases is the FIR necessary in a home insurance claim?

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As a homeowner in Milford, Pennsylvania, you may have questions about how to file an insurance claim. You may have heard about filing a First Information Report (FIR). Some companies may refer to this as a Field Inspection Report. The requirements for this documentation vary by individual insurance companies. As an independent agent in Milford, we can help you understand the details of a FIR.

In the event of a home break in, you are expected to file a police report for the incident. When you file the initial report, you may not have all the information you need regarding your lost property. The report is designed to verify that the event occurred and help speed the claim process. While not all companies will require this report, all homeowners should take this step.

If your insurance claim is for a small amount, the company may not require extensive documentation. However, in many cases, you will need to be prepared to provide a complete list of all property stolen or damaged and some proof of the value. Keep receipts, or copies of receipts, for expensive purchases in a safe location to provide the details you need.

In the case of a required FIR for many home damages, an adjuster may be sent to your home. The adjuster will asses the damage and makes a written report. Photographs are also frequently taken to support the written documentation. When the insurance company sends someone to your home, that individual will file the report with the company for you. You should make sure that you receive a complete copy of the findings.

As an independent agent, we will take the time to work with you to ensure you have the right home insurance for your needs. We will also be by your side when you make an insurance claim. Get in touch with us today and see how easy it can be to cover your Milford, Pennsylvania home.

If I have an insurance suspension in Milford, Pennsylvania, will this affect me in getting a driver’s license in another state?

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Through the Driver License Compact, states can share information on licensed drivers. While a suspension of your insurance in Milford, Pennsylvania may not always prevent your from obtaining a license in another state, there are a few situations that you should be aware of before you cross state lines.

What is the Driver License Compact?

The Driver License Compact is an agreement between 46 states to adopt uniform enforcement of driver’s license policies. Member states keep information on traffic convictions and license suspensions or revocations so that each state has updated information. As a member of the agreement, Pennsylvania will share your records with other member states.

When a Suspension to Insurance Can Affect Your License?

Since you do not have to have auto insurance to obtain a driver’s license, a suspension to your insurance in Milford typically won’t affect your ability to obtain a license in another state. However, there are some special circumstances where your ability to obtain a new license can be jeopardized. If you received a traffic violation, such as a DUI, that causes your license to automatically be suspended if you fail to maintain coverage, then you may not be able to obtain a license in another state.

If a lapse in insurance has caused your license to be suspended in Pennsylvania, it is important to satisfy the reinstatement requirements before you move to another state. Once you are out-of-state, other Compact members will not be able to issue you a license until your Pennsylvania suspension is resolved.

How an Independent Agent Can Help

An independent agent can help you renew your auto insurance coverage and take the steps to getting your license back if it has been suspended due to a lack of car insurance coverage. Contact us today to keep your license in good standing before you move to another state.

What happens to the home insurance policy if the insured house is sold in Honesdale, PA?

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If you’ve just sold your house in Honesdale, Pennsylvania, then you’re probably up to your eyeballs in paperwork, but be sure to contact your home insurance provider in order to square things away before you move. When you sell a home, you have two options when it comes to home insurance. If you’re satisfied with your current insurance company, then you need to contact them and work with them to cancel the old policy and start a new one on your new residence. The other option is to work with your independent agent to get a live comparison of home insurance quotes and look into switching insurance providers before moving to your new home.

Many home owners are able to get cheaper home insurance policies when they run a comparison, which makes it a no-brainer to switch companies. If you decide to go this route, then you’ll need to contact your current home insurance provider once you’re ready to leave your old home. You’ll work with them to cancel the policy, and be reimbursed for portion of the policy which you won’t use. Some companies will impose a fee, but often times this is offset by the savings you’ll receive with your new policy. Each company has different policies, so you’ll need to get the exact details from your current provider in order to know the procedures you must follow to cancel your policy properly. You’ll also need to contact your mortgage lender to find out their requirements for selling your home and canceling your insurance policy.

To work with your local independent agent in Honesdale, Pennsylvania, give us a call today. We’re here to answer all of your questions related to home insurance, and can help you save money by finding a new home insurance policy for your new home.