If you have short of money due to the trending COVID-19, you may have insurance companies being very low on your list of concerns.<\/p>\n\n\n\n
Instead of declining the payment of your bills due to hardship, be smart to contact your insurer because insurance companies are nowadays willing to work with clients or customers facing financial hardship.<\/p>\n\n\n\n
Some state departments that oversee the ethics of insurance companies are encouraging them to temporarily consider doing one or more of the following:<\/p>\n\n\n\n
They have also advised insurance firms to give a grace period of 30 days after payment is due. This will enable clients to pay and not lose coverage.<\/p>\n\n\n\n
Erin Ardleigh, founder of Dynama Insurance, an independent brokerage based in New York City said: “It\u2019s important to call the insurance company, explain the situation and see if they can provide any type of relief. Ask if there is an option other than canceling your coverage.\u201d<\/strong><\/em><\/p>\n\n\n\n\n\n\n\n Below are some pieces of information on what to do should you be caught in the COVID-19 hardship and as a result can’t your insurance premium’s bills:<\/p>\n\n\n\n In most states, drivers are required to have car insurance which means until you stop driving, losing coverage is not a legal option.<\/p>\n\n\n\n It is very possible to capitalize on the COVID-19 auto insurance refunds or even make some changes to your policy with the firm you deal with.<\/p>\n\n\n\n During the pandemic, most of the country’s biggest insurance companies are awarding their clients with partial premium refunds for the COVID-19 pandemic.<\/p>\n\n\n\n Allstate<\/a><\/span>, for example, is giving an average of 15% back to its car insurance customers for premiums they paid during the months of April, May, and June.<\/p>\n\n\n\n Also, State farm<\/a><\/span> is working on giving an average cut of 11% in policies in all states that they are located within.<\/p>\n\n\n\n Lastly, you can reduce coverage but it should be your last option. Most states have minimum liability insurance requirements they work with but you can smartly let go of the optional coverages to cut down costs.<\/p>\n\n\n\n If you have a car loan or lease, the contract that you have is likely to require comprehensive and collision insurance.<\/p>\n\n\n\n On the other hand, if the pandemic made you not drive your car at all and also you don’t have a loan or lease; here are some other options which include:<\/p>\n\n\n\n Downgrading coverage to comprehensive only insurance, protect your vehicle from damage while it’s stored.<\/p>\n\n\n\n You would have to file for an \u201caffidavit of non-use\u201d with your state\u2019s department of motor vehicles if you decide to go by any of the points listed above.<\/p>\n\n\n\n <\/p>\n\n\n\n\n\n\n\n An extended grace period is being offered to all customers just like other insurance. You can drop the coverage without having any immediate troubles because life insurance does not require loan contracts or regulators.<\/p>\n\n\n\n If due to the COVID-19 you are not able to pay your life insurance packages but want to keep the coverage it will differ and only depend on whether or not you are subscribed to a term or permanent insurance.<\/p>\n\n\n\n You are likely to lose the coverage if you are on term insurance after the grace period elapses. On the other hand, you will have more options if you have permanent insurance.<\/p>\n\n\n\n For example, many whole-life policies have built-in options to pay your premium in other ways. For one, the insurer may be able to use some of the cash value of the policy, Jon Voegele, board chair of Life Happens, an educational nonprofit supported by insurers and brokers, said in an email.<\/p>\n\n\n\n Your death benefit will go drastically down if you use your policy’s cash benefit. In some instances, your beneficiaries will be left with very little or nothing at all if you take out too much of your cash benefit after you die.<\/p>\n\n\n\n Below, we have educated you on some ways to lower the cost of your life insurance premium during this COVID-19:<\/p>\n\n\n\n Try to make use of dividends:<\/strong> In recent times, a lot of insurance companies are offering permanent policies that have got a payment option of dividends. As smart as you can be, use it to pay your insurance premiums.<\/p>\n\n\n\n Slash down your death benefit:<\/strong> You will obtain some form of coverage with this when on the permanent premium. It is not the best option yet, your beneficiaries will be left with a couple of cash when you die.<\/p>\n\n\n\n Change to term life: <\/strong>Some insurance companies allow you to cash out your permanent policy and use part of the capital to purchase life insurance instead.<\/p>\n\n\n\n Term life only provides benefits when you die during the policy term although it is cheaper.<\/p>\n\n\n\n\n\n\n\n Depending on states guidelines, some home insurance extends the grace period, lets go of the charging of late fees and as well won’t cancel your home insurance coverage during a stated period of time.<\/p>\n\n\n\n You can reduce your coverage if after the grace period you are still struggling to make payments. It should be your last move since it is very important to keep enough insurance to rebuild your house should the unfortunate happen.<\/p>\n\n\n\n Thinking about canceling coverage altogether? Even though homeowners insurance has no law requirement, if you have a mortgage, your lender likely requires it. Even without a mortgage, canceling your policy or even reducing coverage can leave you in dire financial straits should you be sued or your home or property damaged.<\/p>\n\n\n\n A lot of states issued a ban on health insurers. Their order resisted them from canceling coverage of their customers due to the inability to pay or collect reinstatement or late fees.<\/p>\n\n\n\n To be sure, you would have to check from your insurer since it didn’t live past May 2021. If you have a Marketplace plan and qualify for reduced premiums, you\u2019ll have a 90-day grace period to pay your monthly bill.<\/p>\n\n\n\n You can only get a health insurance plan during the yearly open enrollment period except that you have a life event that qualifies you like loss of job or increase or decrease in income.<\/p>\n\n\n\n These restrictions may definitely decline you from switching to cheaper insurance plans available.<\/p>\n\n\n\n If you have in your possession a marketplace insurance plan and your take-home income has changed, all you need to do is to update your health insurance application as soonest as you can.<\/p>\n\n\n\n This will aid you to be possibly qualified for additional savings and a lower monthly premium – isn’t that cool?<\/p>\n\n\n\n Read Also: Do You Need Personal Cyber Insurance For Cyberattacks?<\/a><\/strong><\/span><\/p>\n","protected":false},"excerpt":{"rendered":" If you have short of money due to the trending COVID-19, you may have insurance companies being very low on your list of concerns. Instead of declining the payment of your bills due to hardship, be smart to contact your insurer because insurance companies are nowadays willing to work with clients or customers facing financial […] More<\/a><\/p>\n","protected":false},"author":2,"featured_media":4704,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[2],"tags":[],"reaction":[],"adace-sponsor":[],"jetpack_featured_media_url":"https:\/\/orekodo.net\/wp-content\/uploads\/2021\/11\/Insurance-Due-to-Coronavirus-scaled.jpeg","wps_subtitle":"","_links":{"self":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/posts\/4703"}],"collection":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/comments?post=4703"}],"version-history":[{"count":0,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/posts\/4703\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/media\/4704"}],"wp:attachment":[{"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/media?parent=4703"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/categories?post=4703"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/tags?post=4703"},{"taxonomy":"reaction","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/reaction?post=4703"},{"taxonomy":"adace-sponsor","embeddable":true,"href":"https:\/\/orekodo.net\/wp-json\/wp\/v2\/adace-sponsor?post=4703"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Auto insurance:<\/h2>\n\n\n\n
Life insurance:<\/h2>\n\n\n\n
Homeowners insurance:<\/h2>\n\n\n\n
Health insurance:<\/h2>\n\n\n\n