The Hoffman Insurance Agency

Lowering Your Health Care Costs

Tim Hoffman — Tue, 15 May 2012 21:40:55 +0000

In today’s economy everyone is looking at ways to lower their health care cost. Having health insurance is just part of the ways that people keep their out of pocket expenses down. Excessive and the unnecessary use of health insurance are only two things that can drive premiums up. Nobody wants to pay more in premiums or out of pocket expenses than necessary for health care. Below are just a couple of the things that you can do to help keep cost down.

Healthy Living

Healthy living may seem like a no brainer, but a lot of people with busy lifestyles may feel that they don’t have the time to do what it takes. There are a couple of things that you can do to keep health care costs down. One of those is to eat healthy. This doesn’t mean you can’t have ice cream. What it does mean however is that you should be aware of what you eat and how often. Even those with limited incomes can make wise choices and stay within a budget that will still allow them to eat healthy meals.

Of course you have to look at all aspects of your life when talking about healthy living. Remember that moderation in all things helps with your health. Cut out such things as smoking, excessive use of over the counter meds, limiting alcohol intake. Many of you may have already heard this same talk from your doctors. The thing is that this definitely makes a difference in how you feel and will help to decrease the number of visits made for health care.

Be Observant of Cost

There is no denying that at some point in your life you and/or your family will need to receive health care. You will get a bill for this care, and as such you need to check to see that the bill is accurate. If the bill is not itemized then ask for one that is so that you may know what charges your insurance company and you are facing.

According to the website healthinsurance.org “97 percent of hospital medical bills contain errors.” If you have ever looked at those bills then you can see why some help may be needed. You may be thinking, “How in the world I can check for errors in my medical bill?” There are medical bill auditors that can assist you with this process. Check your area for an auditor or talk with your health care insurance agent.

Lowering health care costs can be achieved through some simple steps. Living a healthier lifestyle is just one of the ways that costs can be kept down. Health care is expensive enough without errors in billing too. Getting your health care costs down is possible with the right amount of attention and dedication. Give The Hoffman Agency a call or contact us online today if you would like to find out more about how we can help you lower your insurance costs.

How Much Life Insurance Do I Need?

Tim Hoffman — Sat, 05 May 2012 18:28:43 +0000

Life Insurance – Asking how much you really need is a great question that can have more than one answer. Before deciding just how much life insurance will do the trick, it is important to know some factors that must be taken into consideration. One major consideration is to determine who in your family should be insured. Once everything is taken into account you can then look at what the amount that you will need to carry will be. Life insurance coverage should be evaluated at intervals during your lifetime. As circumstances and lifestyle changes take place then so does your insurance needs.

Determining Your Life Insurance Needs

To determine the amount of coverage that is needed for your particular circumstance look at the size of your family and the roles that they play. Are you the sole provider for the family or does the spouse/partner also provide for the family? How many dependents and what are the ages of those dependents is another factor that you must consider. Look at burial cost today with the cost ranging between $8,000 and $10,000. This is not a burden that you want your family to have. Consider any medical expenses that could be left as well.

As you can see there are multiple factors that should be taken into consideration. When looking at life insurance the general rule of thumb is to look at helping your family for the first seven to ten years while they adjust to the loss of your income. This may or may not be feasible because you also have to look at the cost of the life insurance premiums and how it affects your current finances.

Cost of Life Insurance

There are formulas that can be used to help you calculate your life insurance needs but remember these are not perfect and should only be used as a basic guideline. We can sit down with you and work up a plan that will meet your needs and that can fit into your budget as well. There is such a thing as having too much insurance especially when it means that the premiums are so expensive that they will not fit comfortably into your budget. Keeping your premiums manageable may seem like it would require a decrease in the amount of coverage, but never fear. We work with only the best companies and will help you the perfect policy.

Life insurance is just as important as other insurances because you don’t want to leave your loved ones with a hefty burden when you are gone. This type of insurance is based on individual or family needs when something unforeseen happens. The best way to determine how much life insurance you need is to sit down with your agent and spouse or partner and using resources that are available to make this determination. Remember that there are no canned answers to what will work for you and your situation.

Feel free to contact us here at The Hoffman Agency for more info on how we can help you find the best life insurance policy to fill your needs.

Business Insurance FAQ

Tim Hoffman — Sun, 29 Jan 2012 05:16:54 +0000

Q:	What is General Liability Insurance?
A:	General Liability provides coverage for incidences that you are liable for such products that your company manufactures or sells, damages to individuals arising from your premises and also covers general operations both ongoing and after completion.

Q:	Is it OK for others to drive my business vehicle?
A:	It is OK for other individuals to drive your vehicles with your permission, however, if an individual used said vehicle often they need to be listed on your policy.

Q:	Insurance for sub-contractors, do I really need the certificate?
A:	Yes, if you are audited you may be requires to have proof that your sub-contractors have their own coverage. By having the certificated, you can prevent charges for incidences that happen to the sub-contractors.

Q:	What is the difference between Actual Cash Value (ACV) and Replacement Cost (RC)?
A:	This type of coverage refers to the liability coverage to help pay for damages that are incurred via your operation or products, after the point that you have no control over them.

Q:	What does Products/Completed Operations mean?
A:	This type of coverage refers to the liability coverage to help pay for damages that are incurred via your operation or products, after the point that you have no control over them.

Q:	What does 80% co-insurance mean?
A:	This is the way the insurance company encourages all insured to adequately insure their property in relation to other insured. Insurance carriers require that an insured party cover at least 80% of the property’s value in order to collect a partial loss in full.

Q:	What is Business Interruption/Extra Expense coverage?
A:	During repairs due to damages related to a fire or compensable loss, Business Interruption/Extra Expense coverage provides coverage for income loss and the expense of establishing a temporary site.

Q:	How does an audit work?
A:	At the end of the policy term, the insurance company will review the policy and either charge or credit the policyholder based upon an audit of estimated figures. Examples of estimated auditable items include payroll and sales. Audits can be performed or via mail or telephone or onsite by an auditor. A premium is charged for audit estimations.

Home Insurance FAQ

Tim Hoffman — Sun, 29 Jan 2012 05:05:35 +0000

Q:	What Personal Property Insurance?
A:	Personal Property coverage is included in a standard home insurance policy and protects your personal items and household contents in the event they are stolen or destroyed by fire, hurricane or other peril covered in your policy.

Q:	What is MedPay?
A:	MedPay (or Medical Payment) is coverage that helps cover medical expenses that you might be held responsible for due to an injury sustained on your property when there is no lawsuit.

Q:	What is Dwelling Coverage?
A:	This portion of your policy pays to replace the structural components of your home. This protects against the damage and possible loss of your home’s structure in the event of a covered claim such as a hurricane, hail, lightening or fire. (Separate policies are needed for flood and earthquake insurance).

Q:	What is Persona Liability Protection?
A:	Personal Liability Protection: This covers you in the event that a lawsuit is presented against you or covered family members for bodily injury or property damage. Your pets are also included in this portion of your policy protecting you against bodily harm or property damage that they may cause to others.

Q:	What is Loss of Use Coverage?
A:	This type of coverage provides for your living expenses in the event that you cannot live in your home due to a covered claim. It typically covers hotel and restaurant bills and other living expenses you may incur while your home is being repaired.

Q:	When should I review my home insurance policy?
A:	It is recommended to review your home insurance policy twice a year. However, you should also review your policy whenever one of the following situations occurs: 1. When the homeowners policy comes up for renewal. Has my home insurance provider made any changes to my coverage? 2. When you make major purchases or alterations to the home. This can be anything from a newly added room or purchase of adjoining lot. 3. Anytime you have change of circumstances. This could be financial or life style change related but never be afraid to ask questions. It is your home and you need to protect it and yourself as well. 4. When you’ve made your house safer. You need to review you policy when you do any major repairs or major weatherizing to your home.

Choosing Long Term Care Insurance Coverage

Tim Hoffman — Sat, 28 Jan 2012 12:17:41 +0000

The Baby Boom is over and Boomers are now beginning to hit retirement age at an exponential rate. As such many experts agree there will be a major need for Long Term Care (LTC) insurance as individuals begin to be taken care of by loved ones or move into assisted living or long term care facilities.

Traditionally many people have relied on Medicare benefits or private pay options; however, as costs have risen benefits have remained somewhat flat. LTC insurance helps to fill the gap left between the costs of care and the benefits that don’t quite cover. Having this coverage will certainly help keep your loved ones from feeling a definite strain on their finances as they help provide for your care.

The following is a guide on steps to follow when choosing your Long Term Care policy. Follow it and you will find yourself in much better shape as you get older and begin to require a greater level of care.

Knowing Your Coverage Needs

Knowing how much and what type of Long Term Care insurance to choose is as much about knowing your personal health as it is about anything else. Sit down with an insurance professional in Charlotte NC or in your home area. Here at The Hoffman Agency we like to get a good feel for your personal history, both health and financial, before making a recommendation as to what sort of coverage you might require.

Choosing the Right Insurance Carrier

Selecting the right Long Term Care provider will again depend on your needs. While you must consider the premium you wish to pay, it is also highly important to consider the types of coverage being offered. An independent insurance company such as The Hoffman Agency will be able to help you examine several different companies without having a ton of legwork. This will help ensure that you have the best selection possible.

Understanding the LTC Policy

Once you have selected your Long Term Care policy, it is important to make sure you understand what it says. The following steps can help you to make sure that you know just what your policy means:

Read the entire LTC policy thoroughly
Ask your insurance provider if you need help understanding phrasing or terminology
Make sure you have an appropriate amount of time to review the policy before being required to sign
Keep a copy of all transactions and/or receipts to or from the insurance agent
Try to document all written or vocal statements made by you and the insurance agent

Utilizing Your Long Term Care Insurance Policy

Using your insurance should be made as simple as possible. Make sure that family members have access to a copy of your policy so that they will be able to easily contact the insurance provider. The provider will then be able to walk them through the necessary steps to be able to get your benefits started.

While no one likes to think about needing care in their advanced years it is a reality we must all face. By investing in a decent Long Term Care insurance policy, providing this care can be made a great deal easier.

Give The Hoffman Agency a call or use our contact form here on the site today if you would like to speak with one of our insurance professionals about how you can get the coverage you need.

Winter Driving Tips

Tim Hoffman — Tue, 24 Jan 2012 10:27:01 +0000

Winter weather can be both gorgeous and dangerous all at the same time. Any time you plan on being out on the road during this time of year you should take precautions to help ensure that you and your passengers stay safe and sound. Besides using a good degree of common sense and planning ahead of time, there are other things you can do to help reduce the likelihood of an accident.

The following list has been designed so that you will have the tips and tools that you need to help stay safe and keep from having to submit an auto claim.

Preparing for Winter Weather Before It Arrives

One step that should always be taken before the weather turns bad involves having a mechanic perform a multi-point check to ensure that your battery is functioning properly and that all your fluids (oil, transmission, windshield washer, antifreeze, and brake) are at their proper levels. Your brakes should also be checked for wear as should your exhaust. It also certainly pays to ensure that your heating system is up to par.
Keep your tank as full as possible. This will help you keep from running out in the event that you end up stuck in a jam.
Snow tires, snow chains, all weather radials or such should be installed as soon as the law in your area allows.
Keep an emergency kit on hand in your vehicle. It should include a small camp shovel, booster cables, tool kit, blankets, towrope, flashlight, extra batteries, flares, and a first aid kit. If you live in an area that gets a great deal of snow, then you should also consider carrying a set of dry clothes and waterproof matches for melting snow into drinking water.

Winter Driving

By backing into your driveway you can make it much easier and safer to pull out onto the street especially if there is ice present.
Give yourself a decent turn radius when rounding curves. By turning too tightly you run the risk of going into a spin.
Anti-lock brakes can be engaged by slamming on them once you start a skid. If you do not have anti-lock brakes though pumping them will help to give you a greater deal of control.
While jogging can be great for your health, it can be downright deadly when done in the ice and snow. Keep an eye out for joggers during winter weather. There will always be those die hard individuals who will head out no matter what the weather.

If you must travel during severe weather make sure you follow these tips as well:

Never travel alone. Having someone with you can make all the difference if you happen to get stuck. Also, let someone know when you plan to arrive as well as your chosen travel route.

If you get stuck make sure you stay in the vehicle until help arrives. Run the engine and heater as little as possible. Make sure that you get out and clear your exhaust pipe of snow. This will allow your car to properly ventilate so that carbon monoxide will not build up in the cabin since doing so could end up poisoning you and your passengers.

Winter Home Maintenance Tips

Tim Hoffman — Fri, 20 Jan 2012 08:05:46 +0000

Your home is probably one of the most important, and expensive, investments you will make. By taking care of your home properly throughout the year you will help to protect this investment. Your home will continue to be a place of safety and will help keep your family and friends well for many years to come.

With winter here, there are many steps that can be taken to help protect and weatherize your home which can help reduce the likelihood of an expensive homeowners claim. The following is a list of tips to help you get started down the right path.

Homes that rely on heating fuel should ensure an adequate supply remains on hand. In the event of a heavy snow, carriers may not be available for days afterward. By keeping a proper supply your family can stay warm and toasty during the wait.
If you haven’t already done so, replace or clean your furnace filter. While it is best to do so before the need for the furnace arises, it is better late than never. It is also advisable to have your heating system serviced by a professional before the winter months hit.
The heat in your home should never be set lower than 55 degrees. Any lower and it can be difficult, and expensive, to get the heat back up to a tolerable and safe level.
If there are rooms that are not in use, close them off while also making sure that there is sufficient heat to prevent frozen pipes.
All pipes that run through areas that are not heated should be well insulated. This includes those that run through the attic or crawlspace of your home.
A tip for any time of the year – always check your hoses on your washing machine making sure to replace them when any sign of wear or leakage appears. Also, clean out the exhaust duct and the space underneath your clothes dryer so that lint will not have a chance to build up which could lead to a fire.
Check your gutters and roof drains clear of debris which could clog them. Doing so will better allow run-off to flow from the roof and help prevent rotting eaves and fascia.
Make sure to check all outdoor fixtures and outlets for loose connections and/or frayed wires. Also, never overload a circuit by using too many plugs on one outlet or by overuse of extension cords.

By following each of these home maintenance tips you will be better prepared for the winter weather to come. This can make a world of difference in whether or not you will be facing an expensive homeowners claim this season.

Saving Money on Insurance: When It’s Not Worth It

Tim Hoffman — Thu, 29 Dec 2011 00:34:48 +0000

Let’s face it, these days every penny counts. When it comes to auto insurance though there are definitely times when saving a bit can come back to bite you.

Listed below are four instances in which an inferior insurance policy can be a severe hindrance or can even lead to financial ruin.

Unexpected Death

While no one likes to think that they will simply pass away with no notice, it does happen every day. In this case, if you don’t have a decent life insurance policy in place your family could be the ones to suffer the fallout.

Also, keep in mind that life insurance rates can be a great deal cheaper if you opt in at an earlier age. The older you get, the more expensive it can be.

Lawsuit Due to Injury Sustained on Your Property

A homeowner’s policy can sometimes seem expensive, but by cutting corners and selecting minimum coverage you could be placing yourself in a tight spot. In the event that someone gets hurt while on your property you could be open to a lawsuit. This even applies if they are on your property without your permission.

While the rule of thumb may be the more property you have, the more liability you should carry, it is important to speak with a trained insurance specialist who can help advise you on an appropriate level of coverage.

Hit by an Uninsured Motorist

The law in most all states says that drivers must be covered by a certain level of auto insurance. This does not mean that everyone carries such coverage. By leaving off on uninsured motorist coverage you can be placing yourself in the position of responsibility by having to cover your own damages.

When you compare the average yearly cost of uninsured motorist coverage with the amount you may have to pay in the event of such an accident, the need for such becomes quite clear. Another type of coverage, underinsured motorist, can also come in handy when faced with someone who has purchased too little insurance.

Car Rental Following an Accident

Many of us today do not have a spare vehicle that we can drive in the event that our main one is damaged in an accident. This means that you may be faced with having to rent a car until your own can be repaired or replaced. While some auto insurance policies may cover reimbursement for a rental, not all will do so. This is usually offered as an option which people tend to pass up.

Take a few moments and figure up the amount you would pay out of pocket for a rental in the event of an accident. Suffice to say that you would be much better off opting for the additional rental car coverage especially if repairs will take any length of time.

While there are more than just these four instances, these alone should make you stop and think before deciding to opt for the cheapest possible policy or before turning down options that could help save a great deal more in the long run.

Insurance Buying Tips

Tim Hoffman — Wed, 28 Dec 2011 22:51:28 +0000

When you set out to purchase an insurance policy, do you go in expecting it to be something that you will need to use at some time? Most people would say no; however, it is important to look at this sort of purchase as one that could very well be needed in the future. By treating it as something you will have to rely on, you will better understand why choosing the correct amount and type is so important.

How Much Is Enough?

Protecting yourself, your loved ones, and your assets can depend on many things. How many dependents do you have? Do you have a mortgage? Does your spouse work? Each of these must be considered when selecting an appropriate amount of coverage. While there are many online calculators that can help, sitting down with a trained agent can make a serious difference in making the right choices.

Shopping Around

Just as with anything else, if you want to find the best possible policy to fit your needs, then it is important to look at several different carriers. An independent insurance professional can help accomplish this much more easily as they typically deal with many different companies and can help you find the right policy without near the footwork on your part.

Another benefit to working with an independent insurance professional is that they can help you navigate the many different levels of coverage offered by each carrier. Knowing that you are covered by a company that is both reputable and that offers a high level of customer service is certainly worth its weight as well.

Know Before You Buy

Keep in mind that an insurance policy is for all intents and purposes a legal contract. As such, it will typically involve quite a bit of technical language that may be difficult to understand. Make sure that you read it carefully and know what you are signing before doing so. Usually, a policy will tell you many things including:

Individuals or Assets Being Covered
Coverage Limitations and/or Exclusions
Coverage Periods
Amount of Coverage
Amount of Premium
Required Method for Reporting a Claim

Again, make sure to ask your independent insurance professional to clear up any questions you may have concerning any of these points.

Periodic Evaluation of Needs

Life brings changes. With these changes come changes in your insurance needs as well. As such, it is important to step back and review your insurance coverage to ensure that you still have the proper level necessary. Some of the various times you might want to re-evaluate your insurance coverage may include:

Following Marriage or Divorce
When Renting an Apartment or Buying a Home
Beginning a Family
Sending a Dependent to College
Purchasing a New Vehicle
Selling or Buying a Business
Taking on Care of an Elderly Parent
Retirement

No matter which of these life events is taking place, by evaluating your existing insurance coverage and assessing for any further coverage needs, you will be putting yourself in a much safer financial position in the event of any unfortunate circumstances.

Life Insurance FAQs

Tim Hoffman — Fri, 23 Dec 2011 05:26:15 +0000

Q:	How much is “enough” when it comes to life insurance?
A:	Most experts will tell you that between 6 and 8 times your annual earnings is an ample amount. There are other factors though that should be considered when trying to determine as this amount as closely as possible. Some factors to consider include: Various sources of income not including your salary/earnings Your marriage status and your spouse’s earning capacity How many financial dependents you may have Whether you can expect death benefits Social Security and/or from life insurance plan sponsored by your employer If you will need to provide coverage for any special circumstances including estate planning, an education fund, mortgage repayment, etc. Always speak to your insurance advisor who can help determine a more precise calculation on the amount of life insurance you might need.

Q:	Should I purchase life insurance on my spouse and/or children?
A:	While you may consider doing so in some cases, typically it is more important to concentrate life insurance needs on the individual who provides the main income for the household. This is the main focus before considering additional coverage for other family members. In the case of a dual income household, it would certainly be of benefit to provide life insurance coverage for both spouses.

Q:	Is there any need for term insurance or cash value life insurance?
A:	When you are making a decision on purchasing life insurance you must answer two basic questions: “How much do I need?” and “What type of policy should I purchase?” These two questions actually involve two separate types of decisions – an insurance decision and a financial decision. You should always strive to answer the “insurance” question first. An example of this may be the case in which you need such a large amount of coverage that you will need to select term life so that you can take advantage of the lower premium. The financial decision will cover factors such as your tax bracket, whether you need short or long term coverage, and rates of return.

Q:	Can I use my life insurance policy to repay my outstanding mortgage loan?
A:	Typically, you can use your existing insurance policy for many different needs including paying of a mortgage in case of death of the insured.Another type, credit life insurance, is sometimes recommended when selecting an installment loan for purchasing new vehicles or expensive appliances or even in the case of debt consolidation. This raises a question: is credit life insurance a smart buy? Credit life insurance almost always more spendy than term life insurance. Also, if you already have sufficient coverage through your regular policy, it is usually not advised because of its relatively high cost.