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Frequently Asked Questions

Below are some of our frequently asked questions. If you have any other questions or concerns, please feel free to contact us.

  1. Who needs life insurance?
  2. What are the different types of life insurance?
  3. What is an annuity?
  4. Do I need more than the state minimum coverage for car insurance?
  5. How does an umbrella insurance policy work?
  6. What is the difference between Collision and comprehensive coverage for my automobile?
Who needs life insurance?
If someone depends on you financially, you probably need life insurance. If you're a breadwinner, life insurance can provide critical financial support to your loved ones if you die prematurely. Permanent life insurance can also help you establish a fund you can access for planned life events like college or retirement, or for emergencies and opportunities. Later in life, it can help you transfer your wealth to the next generation

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What are the different types of life insurance?
Term

Term insurance provides coverage for a specific period of time, such as 10, 20 or 30 years. If you die during that period, the beneficiary you name on your policy receives the death benefit amount. When the term ends, so does your protection, unless you select a term policy that gives you the option of renewing your coverage.

Term policies don't build cash value as most permanent life insurance products do. Because of this fact, when you buy a term policy you're paying for pure protection. For this reason, term insurance is usually the least expensive kind of life insurance coverage you can buy.

Permanent

Term policies provide protection for your entire life by paying a sum to your named beneficiary upon your death. Most permanent policies build cash value over time, and you can access this cash value for emergencies, opportunities or planned life events such as a college education or retirement.

There are different types of permanent policies. Whole Life products usually offer level premiums and strong, traditional guarantees, such as a schedule of guaranteed values. Universal Life products normally offer flexible features, such as the ability to change your coverage amount or your payment schedule after you purchase the policy. Finally, Single Payment Whole Life is a type of insurance you buy with one payment. Because the death benefit is higher than the single payment, this kind of insurance is often a good fit for people looking to transfer wealth.

Our expert agents at Bible Insurance Agency will be glad to help you determine which type of life policy best fits your needs and lifestyle. 



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What is an annuity?
An annuity is an insurance contract that can protect you from outliving your money by providing a constant stream of income that can last your lifetime.  Annuities are often considered the flipside, or opposite, of a life insurance policy.  Life insurance offers protection against dying too soon, and an annuity offers protection against living too long and outliving your income.

You can purchase an annuity with a lump-sum payment or through multiple payments.  Your money is then credited an amount of interest and continues to grow tax deferred.  In exchange for your money, you are guaranteed payments that can last your lifetime.



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Do I need more than the state minimum coverage for car insurance?
The simple answer to this question is yes.  You should have more insurance coverage than the state mandated minimum auto coverage.   The state mandated minimum auto coverage is designed to handle the basics of any auto accident or problem, however it is NOT designed to cover you in a "worst case" scenario.  Minimum coverage will not properly protect  you in the event something horrible happens.  The agents at Bible Insurance Agency are trained to with you to determine what amount of coverage is a "Best Fit" for you.

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How does an umbrella insurance policy work?
An umbrella insurance policy works exactly as the name describes.  The umbrella policy sits over the top of underlying insurance policies and provides an extra layer of liability insurance.

In the case of a personal umbrella underlying policies would include auto insurance, homeowners insurance, boat insurance, rental property insurance, etc. If the limit of liability is used up on the underlying policy then the umbrella kicks in to provide additional coverage.



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What is the difference between Collision and comprehensive coverage for my automobile?
Collision Insurance
Collision insurance laws may vary by state, but generally, this insurance covers a loss to the insured's vehicle caused by its impact with another vehicle or object.

Comprehensive Coverage
Comprehensive insurance laws may also vary by state, but generally, this insurance protects against any loss of damage to an automobile except those caused by collision or by upset; for examples, glass replacement towing and labor coverage, or coverage against fire or theft.


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1600 E Andrew Johnson Hwy | Morristown, TN 37814 | Ph: 423.586.4320 | Fx: 423.586.4271

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