Life Insurance is About Protecting Your Loved Ones

shutterstock_116494771The concept of life insurance is something that few people like to discuss. Planning for a time when you are no longer available to provide for your family might be difficult, but it is one of the smartest investments you could make. September is Life Insurance Month, and in recognition OceanPoint would like to highlight some fundamental facts about life insurance.

One of the most common misconceptions regarding life insurance is the cost. Many are dissuaded from purchasing life insurance because they feel it is too expensive. However, there are a variety of life insurance options available to fit your specific needs and budget. Some of the basics are:

Term life – This is the most inexpensive form of insurance because there are no cash values or dividends. Term policies are purchased for a specific period of time such as 10, 15, 20 or 30 years. If an insured loved one passes away during that time period, a beneficiary is paid the dollar value of the policy.

Whole life – As the name suggests, a whole life policy is protection for someone’s entire life. Premiums, which insurance companies invest, stay the same during the life of the policy. There are cash values, and some companies pay policyholders’ dividends. The cost is higher, but it is considered more effective for estate planning.

Universal life – A valuable coverage and living benefit, universal life policy allows for more flexibility and is more of an investment vehicle, however, increased contributions may be necessary if the investment interest assumptions are not met.

Variable life – A variable policy offers more investment options than a universal life policy, with the policyholder having the ability to select the investment options.

In short, life insurance protects those who depend on you for financial support. If the unexpected should happen, life insurance provides your dependents with income so they may continue to live comfortably. It can also cover medical, legal, and funeral costs as well.

At OceanPoint Insurance, we are committed to the total protection of you and your loved ones. For a complimentary review of your life insurance options, please call us today at 401.847.5200.

Ridesharing – Are you properly insured?

shutterstock_63837973The United States has recently seen an extreme uptick in what is often referred to as the emerging “sharing society.” As younger generations in particular opt for sharing of all kinds – cars, homes, and apartments – it is crucial to be aware of the impact these activities have on your insurance.

In an increasingly connected society, peer-to-peer services are springing up, through the use of mobile apps that allow consumers access to transportation services. As ridesharing companies such as Uber and Lyft keep growing, the industry is more popular than ever.

In most cases, ride sharing is not protected through a basic auto policy. This policy typically excludes coverage for liability, bodily injury, physical damage or property damage arising out of the ownership, operation or occupation of a vehicle while it is being used for transportation services. If you are considering using your vehicle for these services, you should note the following:

  • Operators/drivers must be licensed by the Division of Public Utilities and Carriers (DPUC) and maintain a minimum of $1.5 million commercial liability insurance.
  • You must obtain a special Hackney Operator’s License issued by the DPUC prior to transporting passengers for hire in RI.
  • These services are required to be provided only in vehicles bearing “Public Registration License Plates.”

Most standard personal auto policies contain exclusions for livery — which essentially means driving for hire. Typical exclusions found in policies are described below, but individual policy exclusions can vary. Policyholders are advised to contact their OceanPoint Insurance agent to learn which exclusions apply to them. All the exclusions below do not apply to a share-the-expense car pool.

Liability Coverage (Exclusion): Liability Coverage is not provided for any insured’s liability arising out of the ownership or operation of a vehicle while it is being used for public or livery transportation.

Medical Payments Coverage (Exclusion): Medical Payments Coverage is not provided for any bodily injury to the insured that is sustained while occupying the insured vehicle when it is being used as public or livery transportation.

Coverage for Damage to your Auto (Exclusion): Loss to your insured vehicle or any non-owned vehicle, that occurs while it is being used for public or livery transportation will not be paid for.

To learn more about insurance coverage for ridesharing, contact your OceanPoint Insurance agent at 401.847.5200.