It’s tempting to think that if you have auto insurance in place, you would never need to worry about paying for expenses resulting from an accident. Most insurance policies can indeed cover the expenses resulting from an average type of accident. However, there are instances in which a policy might get exhausted. At The Select Insurance Agency, serving Coppell, TX, and the surrounding areas, we want to help you prepare for any accident. Keep reading to learn about types of policies that might exhaust your insurance policy.
What Does It Mean To Exhaust a Policy?
To exhaust a policy means that you have hit or exceeded the maximum amount the policy can pay on your behalf. Each auto policy will have a maximum amount. You should pay attention to these amounts as they are crucial to your coverage. If a policy hits or exceeds that maximum, any further expenses would need to be paid out of pocket.
What Kinds of Accidents Would Exhaust a Policy?
Accidents resulting in tremendous damage or injury could easily exhaust a policy. This often happens if the accident was your fault and others are seriously injured. Medical expenses that your insurance company must pay could quickly eat up the maximum allowed payout of the policy.
Accidents that result in legal action may also exhaust a policy quickly. This includes incidents in which others involved in the accident might sue you.
Can This Be Avoided?
To avoid paying out of pocket for expenses, you might want to consider having an umbrella policy in place. This type of policy can pick up and pay when other policies have been exhausted.
If you want to learn more about umbrella insurance, please contact us at The Select Insurance Agency serving Coppell, TX, and the surrounding areas.
Regarding life insurance, deciding which type of policy is best for you and your family’s needs cannot be easy. Term or whole life insurance? It’s essential to understand the differences between the two before deciding. For families in Coppell, TX, The Select Insurance Agency provides excellent advice and service for life insurance policies—read on to learn more about term and whole life insurance.
Term Life Insurance Basics
Term life insurance covers you for a specific period (typically 10-30 years). Your beneficiaries receive death benefits if you pass away during that time frame. With term life, the premiums are typically lower than those of whole-life policies because they do not accumulate any cash or loan value—which means that once the term ends, so does the policy.
Whole Life Insurance Basics
Whole life insurance lasts a lifetime (as long as you keep up with premiums). This type of policy accumulates cash value over time, which allows policyholders to borrow money from their policy as needed. Additionally, this cash value grows tax-deferred. The premiums are usually higher than those of a term policy because these policies also come with an investment component.
The Pros and Cons
Ultimately the choice between term and whole life insurance comes from personal preference and budget constraints. Term policies are less expensive than whole life but offer fewer benefits, whereas whole life offers long-term security but also comes with higher premiums. Both policies have pros and cons; while one might suit a particular family better, there is no “one size fits all” answer here.
If you live in Coppell, TX, and need help determining whether term or whole life insurance is best for your family, please consider contacting The Select Insurance Agency today!