As the coronavirus pandemic drags on, millions of Americans are still grappling with company layoffs and the loss of employee benefits. If you recently lost your job, you may be eager to replace some of these benefits—including your group life insurance policy. Here are some things to consider as you start to explore…Read more...
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Summary List Placement Table of Contents: Masthead Sticky The best renters insurance companies of 2020 If...Summary List Placement Table of Contents: Masthead Sticky The best renters insurance companies of 2020 If you're currently renting your home, renters insurance is coverage you should probably have — especially considering how little it costs. Business Insider compiled data from different renters insurance companies based on customer service and premium prices where available. From there, we determined the best. For sample quotes we entered data for two people renting a two-bedroom, one-bath, single-family with no pets in Philadelphia. Our top picks for the best renters insurance are below: Sample quote Customer rating* Available in all 50 states? 1. State Farm renters insurance $15.67 8 Yes 2. Lemonade renters insurance $16.84 1 No, available in 28 states 3. Erie renters insurance N/A 2 4. Allstate renters insurance $23.00 4 Yes 5. Farmers renters insurance $21.83 6 Yes Best for military: USAA renters insurance N/A N/A Yes, only to military members and family *J.D. Power Customer satisfaction 2020 Whether you're renting a studio apartment or an entire single-family home, renters insurance picks up where your landlord's insurance policy leaves off. If a fire destroys your rented home, your renters insurance could help to replace your belongings. Similarly, if someone hurts themselves in your rented home and sues you, this coverage could help. The average renters insurance policy costs between $15 and $20 per month, much cheaper than homeowners insurance. Renters insurance policies are available from a variety of insurers, and it might be smart to bundle it with car insurance or other types of insurance to get the best price on both policies. If you're searching for a new company for your renter's insurance policy, know that many factors can change the price you're quoted, including your credit score in some states, characteristics of the home you're renting, and even whether you have a dog. More on the best renters insurance companies of 2020 Here's some more detail on our winners: 1. State Farm renters insurance Pros: The biggest provider of renters insurance in the US Nationwide coverage Lowest monthly rate Ranked in top 10 for customer service State Farm is the biggest provider of private renters insurance in the US. This company had some of the lowest renters insurance rates in Business Insider's sample scenario, with a policy for a typical home in Philadelphia costing less than $16 per month. State Farm's renters insurance is a solid starting plan, covering the basics of the items you own, your expenses if something happens to your rented home, and liability. Learn more about State Farm renters insurance » 2. Lemonade renters insurance Pros: Easy online quoting and purchasing Ranked #1 in customer satisfaction B-corp status with corporate focus on giving back to charities chosen by customers Cons: Only available in 28 states No bundling discounts — Lemonade only offers home and renters insurance Lemonade offers renters insurance policy purchasing and quotes online with a very smooth and easy online experience. If you want to work with an agent, this probably isn't the company for you. But, for an easy and affordable renters insurance policy, Lemonade may be a good option. Learn more about Lemonade renters insurance » 3. Erie Insurance Pros: Ranked No. 2 in customer satisfaction Low-cost Cons: Only available in the Mid-Atlantic, North Central, and Southeast regions of the US Online process includes speaking with an agent If you want quick online quotes, this probably isn't the company for you. But it might be worth a phone call — if you live in one of the states it covers, Erie could offer competitive premiums and great customer service. Learn more about Erie renters insurance » 4. Allstate Pros: Nationwide provider Ranked in top 10 for customer service Multi-policy discounts available Cons: Policies start at $20, which is higher than other companies' starting costs Allstate has been around and offers coverage nationwide. In addition to renters insurance, it offers auto, life, homeowners, and business insurance. You may be eligible for discounts if you have other coverage with them. Learn more about Allstate renters insurance » 5. Farmers renters insurance Pros: Good marks for customer satisfaction Bundling discounts available Cons: Not the cheapest renters insurance Farmers offers relatively affordable renters insurance policies. Though it took the fifth spot, a sample quote of $21.83 still means there are companies that charge more. With many other types of insurance policies, including car insurance, there are plenty of ways to bundle and get a discount. Policy add-ons like identity theft protection could also be helpful. Learn more about Farmers renters insurance » Best for military: USAA renters insurance Pros: High marks for customer satisfaction Rated highly for other types of insurance, like car and homeowners Cons: Quotes not available online Only available to military members and family For military families or anyone eligible, USAA could be a good option as well. While quotes aren't available online, USAA consistently earns top marks for insurance coverage in other categories, including car insurance and homeowners insurance. If it's an option for you, a quote from USAA would be a good place to start your search. Learn more about USAA renters insurance » The best renters insurance based on customer satisfaction How much people like their renters insurance providers may factor into your decision. According to a J.D. Power survey, these are the top renters insurance companies in the US, based on customer rankings: Lemonade Erie Segment Average Allstate American Family Farmers Auto Club of Southern California State Farm ASI Progressive Nationwide Liberty Mutual The Hartford Travelers CSAA Average annual premium for renters insurance by state Like homeowners insurance and car insurance, renters insurance can vary a lot by state. Where you live will play a big role in your quote, and each company will consider that differently. Here's the average annual premium for renters insurance by state, according to the Insurance Information Institute. State Average annual premium Alabama $235 Alaska $166 Arizona $178 Arkansas $212 California $182 Colorado $159 Connecticut $192 Delaware $159 District of Columbia $158 Florida $188 Georgia $219 Hawaii $185 Idaho $153 Illinois $167 Indiana $174 Iowa $144 Kansas $172 Kentucky $168 Louisiana $235 Maine $149 Maryland $161 Massachusetts $194 Michigan $182 Minnesota $140 Mississippi $258 Missouri $173 Montana $146 Nebraska $143 Nevada $178 New Hampshire $149 New Jersey $165 New Mexico $187 New York $194 North Carolina $157 North Dakota $120 Ohio $175 Oklahoma $236 Oregon $163 Pennsylvania $158 Rhode Island $182 South Carolina $188 South Dakota $123 Tennessee $199 Texas $232 Utah $151 Vermont $155 Virginia $152 Washington $163 West Virginia $188 Wisconsin $134 Wyoming $147 Frequently asked questions How were the winners determined? The best renters insurance company is one that offers the most coverage for the least amount of money, and also has a good reputation for customer service. Business Insider compiled data from different renters insurance companies based on customer service and premium prices where available. From there, we determined the top five. To find out how much policies typically cost, Business Insider obtained sample quotes for renters insurance for a two-bedroom, one-bath home with a smoke detector and no pets with two occupants in Philadelphia, Pennsylvania. Customer satisfaction was also considered as a factor, with almost all of the companies taking top spots for customer satisfaction in JD Power's renters insurance satisfaction survey. How much is renters insurance? According to data from the Insurance Information Institute, the average renters insurance policy cost $180 per year in 2017, or about $15 per month. The amount you'll pay for renters insurance can vary based on several factors, including the location, type, and size of home you're renting, your credit score, and the amount of coverage you're looking for. Other things may also play a role in the price of your renters insurance, including whether you have a dog, and how many people live with you. Renters insurance is generally pretty affordable, and can sometimes be bundled with other policies for better rates. If you already have car insurance, it might pay to get a quote from your current insurer including renters insurance to see if it offers a discount. What does renters insurance cover? Sure, your landlord has an insurance policy on your rented home. But, it probably won't cover you or your things if anything happens to your building, or if you're facing a lawsuit from someone hurt on your property. Renters insurance doesn't cover any structural damage that happens to your home, however. There are two main parts of coverage to a renters insurance policy: property coverage, and liability coverage. Property coverage If a fire burns down your rented home, for example, your landlord's insurance policy will help to rebuild it. But, it won't help you, the tenant, replace or repair your items. That's what renters insurance is for. Renters insurance can help to replace or pay for property that you bring into the home if something unexpected happens to it, from fires to theft. If your items are stolen or damaged, you could get help with the cost of replacing those items from your renters insurance policy. Sometimes, renters insurance will also cover property left in vehicles, or other items that could be stolen. Some renters insurance policies also include identity theft protection. Liability protection Liability protection from your renters insurance policy could help protect you if someone sues you over damage or an accident that happens on your property. Depending on your coverage, it could help cover you up to a certain dollar amount. How to find the best cheap renters insurance To be sure that you're getting the best price for your renters insurance coverage, you'll want to shop around and get quotes from several different insurers. Compare the quotes, and look for the most coverage types and limits. Then, look for the lowest premiums that fit your budget. If you don't want to visit renters insurance sites individually, you can use a free tool like the one offered by Policygenius to compare quotes from multiple companies in one place. Related Content Module: More Personal Finance CoverageJoin the conversation about this story »
Coverage is a major expense for employers, especially those in small businesses, as they deal with...Coverage is a major expense for employers, especially those in small businesses, as they deal with the pandemic’s economic fallout. Many may face end-of-year renewal deadlines that are harder and harder to afford.
I'm a financial planner, and I almost always recommend the same type of life insurance to my clients
Summary List PlacementI can't tell you how many times clients have come to me and said...Summary List PlacementI can't tell you how many times clients have come to me and said some version of, "I know I need life insurance now that I bought a house and have kids, and this guy I went to college with is trying to sell me permanent life insurance — is that the right thing for me? It feels expensive." In most cases, my answer is simple: You do need life insurance, but you don't need permanent life insurance. Here's what I tell my clients. How life insurance works Life insurance is intended to provide a lump-sum cash payment after your death to your beneficiaries to help them with things like paying off debt, paying monthly expenses, and funding college for kiddos. You typically need it if someone depends on your income or your care. If you're working, your income between now and retirement is likely a huge part of your family's ability to reach their goals, and life insurance is meant to help replace some of your lost income should you die prematurely. If you're not working but you're a primary caretaker for your kids, replacing you would be costly, too, so life insurance can help your family take care of the million things that you do in any given day should you die. The difference between term and permanent insurance There are two main types of life insurance: term insurance and permanent insurance. (Spoiler alert, I almost always recommend term insurance.) Term life insurance lasts for a specific period of time, the term of the policy. It has a set premium for and a set death benefit that stay the same for the entire policy term. For example, if you're 35 and you get $1 million of 30-year term coverage, your premium, let's say $75 per month, would stay the same for 30 years. Term insurance has a much lower monthly premium than permanent coverage. Permanent life insurance is intended to be in place for your entire lifetime, and provides the opportunity to invest in a tax-advantaged cash value account. However, most people don't need life insurance for their entire life, because at some point they retire and have enough assets and income from Social Security to live comfortably. And, after all of the commissions and substantial fees associated with permanent coverage, investing in life insurance isn't a very efficient way to reach your investment goals. Oh, and permanent life insurance premiums are much higher than term premiums. Why I recommend term life insurance in most cases So which type of coverage is the right kind to choose? For the vast majority of my clients, term is the clear winner. My clients are looking to term insurance to provide a death benefit to pay off their mortgage, fund college, and cover expenses for their families until they reach retirement. Since most of my clients are in their 30s with young kids and plan to retire in their 60s, we typically use 30-year term coverage to last until they're ready to retire. Depending on the age of their kids, we'll split their coverage between two policies — a 20 year policy to last until their youngest child finishes college, and a 30-year policy to last until retirement. All of that said, there are some special cases where permanent coverage makes sense. If you are buying insurance to provide for a special-needs child who will need care no matter when you die, permanent life insurance can be a good option. Other times permanent coverage might make sense are when you're trying to maximize a pension payout, when you're funding a buy-sell agreement for a business, when you anticipate an estate tax issue (which means you're planning to die a multi-millionaire), or when you just really want to leave a specific amount to a certain beneficiary no matter what. Financial planners and financial advisers get very heated about the old "term vs. perm" life insurance debate. For those who sell insurance, permanent life insurance pays huge commissions compared to term coverage. And those who sell insurance are not always required to look out for your best interest when they're selling insurance to you. Yup, you heard me right. If you're working with an adviser who is trying to sell you insurance, ask them if they are bound to a fiduciary standard in the life insurance transaction, and inquire about how they get paid based on the various insurance policies they're pitching to you. If you don't get answers you like, RUN! Natalie Taylor, CFP, BFA, draws on 15 years of financial planning experience, seven years in fintech, and a decade of professional speaking to share advice that works in real life. Related Content Module: More Life Insurance CoverageJoin the conversation about this story »