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Arkansas Insurance Blog

How Do Annuities Work?

With so many options for refunding retirement from Roth IRAs to pensions to 401Ks, it is easy to forget about an investment vessel known as an annuity. In short, an annuity is a contract between yourself and an insurance company with agreed-upon goals that could include lifetime income, principal protection, legacy planning, or long-term medical cost planning. An annuity is often referred to as an investment. Still, it is important to recognize that it is a transfer of risk contract that locks you and the insurance company into certain obligations that can only be broken in extreme circumstances. Annuities work by providing the policyholder with access to limited funds on a specific cadence like monthly or annually and can be considered similar to income received via Social Security.

While there are many reasons to purchase an annuity, the most common is because it provides guaranteed income for the entirety of your life. Like other insurance types, the policyholder pays a premium to the insurance company to harbor the risk of an annuity. This payment can be made over a specific period of time or in a single lump sum and is considered part of the insurance accumulation phase. Unlike auto or home insurance, you don’t pay an annuity premium indefinitely. Eventually, you stop paying for the policy, and it begins to pay you in what is known as the payout phase. 

At Adams Insurance & Financial in Northwest Arkansas, our friendly and talented team of insurance professionals are ready and willing to answer all your questions on annuities. We’ll work tirelessly to ensure that you understand the specific aspects of your annuity and customize a policy that best meets your future needs. Give Adams Insurance & Financial in Northwest Arkansas a call today to learn more about how we can help you secure your financial future.

Does my auto policy cover the driver or the vehicle

Auto insurance provides protection when you are on the road. Most states have requirements for how much auto insurance you must have. The amount and type vary by state. It is up to you as the auto owner and as a driver to know the requirements in your state. At Adams Insurance & Financial in Northwest Arkansas, you can count on us for all your auto insurance needs. We specialize in giving our customers more than just ordinary customer service; we go above and beyond to make sure you get exactly the coverage you want. 

When you own a car, you need to have auto insurance to protect yourself and your vehicle. You may wonder if you, as the driver, are the one that is covered or if it is your vehicle. The occasion may arise when you drive a vehicle that is not your own, and you may wonder if you are covered. You may also allow someone else to drive your vehicle, which is not listed on your insurance policy. Generally speaking, the vehicle is what is covered. This means no matter who you allow to drive your car; your insurance will be responsible in the event of an accident. 

This could leave you being responsible for the deductible. It is something you should discuss with the person who is using your car before the actual event. It is also something to consider yourself if you have an accident in a vehicle that belongs to someone other than yourself. An exception is when you rent a car, and in this case, your personal insurance will provide the same protection in the rental vehicle as you have on your personal vehicle. 

When you want customized auto insurance, contact Adams Insurance & Financial in Northwest Arkansas, our customer service won’t disappoint. 

4 Reasons You Need Life Insurance

Life insurance isn’t a topic most people want to discuss. From our experience at Adams Insurance & Financial, we see most people procrastinate life insurance until something significant happens. This shouldn’t be the case. Purchasing life insurance early on is a worthwhile investment you can count on. But because it’s never too late, you can still buy life insurance to enjoy the below benefits.

To protect your loved ones.

If you have anyone that depends on you for financial support, that alone is a reason to buy life insurance. Life insurance substitutes your income when you pass on. As such, your dependents don’t have to suffer financially when you are long gone.

To leave an inheritance. 

Yes, you might not have substantial assets to leave to your heirs, but with life insurance, you have something to pass on. This way, you will leave your kids or parents with substantial financial support to cater to expenses you used to pay when you were alive.

To pay off debts.

Perhaps you have a home or car debt. If you were to die today, who will assume your obligations? Generally, your next of kin will have to bear the financial liability. Would you want that? Certainly not. With this in mind, obtaining life insurance takes care of your debts, thus making sure that your loved ones don’t have to carry your debt burden when your time comes.

For a sense of security.

Generally, human beings worry a lot. To this end, the thought of death might invoke a flurry of thoughts, especially pondering how your loved ones will cope when you are long gone. Of course, they will be sad, but they don’t have to slump into a financial mess when you die. Taking life insurance won’t replace life, but it gives you the certainty that your family will be taken care of when you die.

Life insurance in Northwest Arkansas.

Need more information on life insurance? Please contact us at Adams Insurance & Financial for more insights. And if looking for a life insurance investment, we are ready to help you protect your loved ones now and in the future. Please contact us today if you are in Northwest Arkansas and the surrounding areas.

4 Reasons You Need Life Insurance

Life insurance isn’t a topic most people want to discuss. From our experience at Adams Insurance & Financial, we see most people procrastinate life insurance until something significant happens. This shouldn’t be the case. Purchasing life insurance early on is a worthwhile investment you can count on. But because it’s never too late, you can still buy life insurance to enjoy the below benefits.

To protect your loved ones.

If you have anyone that depends on you for financial support, that alone is a reason to buy life insurance. Life insurance substitutes your income when you pass on. As such, your dependents don’t have to suffer financially when you are long gone.

To leave an inheritance. 

Yes, you might not have substantial assets to leave to your heirs, but with life insurance, you have something to pass on. This way, you will leave your kids or parents with substantial financial support to cater to expenses you used to pay when you were alive.

To pay off debts.

Perhaps you have a home or car debt. If you were to die today, who will assume your obligations? Generally, your next of kin will have to bear the financial liability. Would you want that? Certainly not. With this in mind, obtaining life insurance takes care of your debts, thus making sure that your loved ones don’t have to carry your debt burden when your time comes.

For a sense of security.

Generally, human beings worry a lot. To this end, the thought of death might invoke a flurry of thoughts, especially pondering how your loved ones will cope when you are long gone. Of course, they will be sad, but they don’t have to slump into a financial mess when you die. Taking life insurance won’t replace life, but it gives you the certainty that your family will be taken care of when you die.

Life insurance in Northwest Arkansas.

Need more information on life insurance? Please contact us at Adams Insurance & Financial for more insights. And if looking for a life insurance investment, we are ready to help you protect your loved ones now and in the future. Please contact us today if you are in Northwest Arkansas and the surrounding areas.

Common commercial insurance terms explained

When you are new to business or commercial insurance, you may have lots of questions. You may find some included terms confusing. Insurance companies use terms that may not be part of everyday language. Most people will need clarification of at least some insurance terms. At Adams Insurance & Financial in Northwest Arkansas, we are here to help our customers any way we can, whether answering questions or explaining terms. 

  • Actual cash value- This is the amount your property is actually worth today. A 10-year-old machine you use in your business is not worth the same amount when purchased. When you choose this type of coverage, depreciation is taken into account when you try to collect. 
  • Business interruption insurance- If your business suffers a covered peril, this insurance can provide the money your company needs to meet normal expenses while you cannot do business. 
  • Business owners’ policy (BOP)- A Business Owners’ Policy combines two of the most common commercial insurance coverage types, property and liability coverage. Usually, this combination will be less expensive than the two policies separately. 
  • Commercial Lines- These are insurance products that provide business coverage in the form of commercial auto, general and professional liability, workers compensation, and other coverage to protect your business.  
  • Replacement cost- Replacement cost is exactly what it sounds like. If something you need to do business with is damaged beyond repair, it will be replaced at the cost of replacement today, not the cost when it was purchased. 
  • Rider- This may also be referred to as an endorsement. It is an amendment or an alteration to your policy that provides additional or something not covered on the original policy. 
  • Workers Compensation Insurance– This is a commercial line of insurance that protects workers when they are injured while doing their job. 

Contact Adams Insurance & Financial in Northwest Arkansas for all your commercial insurance needs. 

Which home insurance coverages should you focus on as a young homeowner?

Owning a home at a young age comes is great. It comes with many responsibilities and opportunities to make well-thought decisions like marriage or having children. For this reason, you want to make sure your loved ones and your new home is safeguarded with a home insurance policy. With so many additional market policies, finding coverages that will work for you and your family may seem daunting and overwhelming. That’s why Adams Insurance & Financial recommends knowing what to focus on in advance.

The Dwelling Coverage

This coverage covers your entire home; the floor, walls, and ceiling. It also covers critical aspects such as plumbing, wiring, heating, and cooling. The coverage is essential in helping you rebuild your home in case of damage. If you live in Northwest Arkansas, make sure your coverage limits are updated every year to reflect the current rebuild cost.

Personal Property Coverage

All your valuables such as clothing, furniture, appliances, and electronics are covered under personal property coverage. You can choose between a replacement or actual cash value, depending on your preference. However, you might want to get a separate policy for priceless or treasured possessions like artwork, jewelry, and sports memorabilia.

Additional Living Expenses

Also known as loss of use, additional living expenses can be essential, especially when your home is so damaged that it becomes unlivable. Your insurance company in Northwest Arkansas helps you find a convenient place to stay and live as your home gets repaired.

Liability Coverage

Home insurance without liability coverage is incomplete. You may not be in a position to control all accidents that happen in your home, especially with visitors or friends around. Liability insurance helps protect you in case someone sues you for damage or injuries. The coverage is even more essential when you have teenagers in your home.

Let Adams Insurance & Financial help you protect your investment with adequate home insurance. Our talented insurance agents are ready to walk you through the insurance journey and make sure you find coverage that matches your needs, style, and budget. Contact our team today!

How annuity insurance figures into financial planning

No matter what your age, retirement is always looming. You may think you are too young to be thinking about retirement, but the earlier you start formulating a plan, the better chance you have of enjoying a comfortable retirement. The days when you could count on an employer pension to supplement your Social Security are in the past. You have to create your own long-term financial security. At Adams Insurance & Financial in Northwest Arkansas, we want to help you create a plan you can afford today and give you a secure future. 

Like many insurance products, annuity insurance isn’t just one product. There are variables. The common thread is that they are designed to provide a steady, reliable stream of income when you retire. They are also a way to put more of your income into a tax-deferred account. While a 401K has limits on how much you can save each year with annuities, there is no yearly limit. On the other hand, the money in your annuity is not insured by the FDIC. The safety of your annuity is based on the financial security of the company you choose to purchase it from. 

People are living longer, which means you need to provide a much longer income stream in retirement. Like many financial planning products, you have choices about the risk level you feel comfortable with. You can increase the growth of your annuity with a product that has a level of risk. But with no guarantee, these products are not perfect for everyone. Talking to your financial advisor is the best way to determine if annuities are for you and what type of annuity you are comfortable with. 

Contact Adams Insurance & Financial in Northwest Arkansas to discuss annuity insurance and how it figures into your financial planning.

When should I update my life insurance

Life insurance is a very personalized type of insurance. It needs to be tailored to your life, and it is not something that remains the same when you are 20 as when you are 40 or 60. It needs to grow with you as your life ebbs and flows. Having an insurance agent you trust and who has personal knowledge of your situation is important. Adams Insurance & Financial in Northwest Arkansas is just such an agency. Our experienced staff is ready to provide "out of the ordinary" customer service. 

You change employers

It is often the case you get life insurance as part of a benefits package. When you change employers, you will need to take on the payment of that benefit yourself if you want to retain it. It may not be the best option for you.  

You get married

When you get married, you should change the beneficiary on your life insurance policy. This is a very good time to make sure you have adequate coverage for your new spouse. 

You have children

When you have children, you have a responsibility for more than 20 years into the future to provide for their needs. If you want to pay for college, this is also something to factor in the amount of life insurance you need to have, 

You retire

When you retire, you need may totally change. If your children have all flown the coup, you may not need the amount of life insurance you have had over the years. A decreased income is also something that may determine your life insurance needs. 

When you are ready to review your current life insurance coverage at Adams Insurance & Financial in Northwest Arkansas, we are ready to help you. Give us a call and let us help you to update your life insurance. 

Do I need auto insurance in Arkansas?

Residents of the Northwest Arkansas area are going to find that it is a lot easier to get around town and get all of their daily tasks done if they own a car. If you do go out and purchase a vehicle, it is also very important that you get the right insurance policy. There are several reasons why you will need to get auto insurance when you own a car here. 

The State Requires Coverage

One of the reasons you will need to have auto insurance here is that the state will require it. If you choose to purchase and drive a car, you need to meet the state’s minimum auto insurance requirements that state you need to have liability insurance. This coverage ensures you are able to pay for any damages that you cause in an accident. If you are caught without coverage, you could face serious penalties. 

Coverage is Required by Lender

Another reason that you are going to need to get auto insurance is that it is going to be required by your lender. Many people that purchase a car are going to take out an auto loan. If you do have a loan, the lender will want you to have a full collision and comprehensive policy. This ensures that their collateral is protected against many forms of risk, including theft and vandalism. 

As you are looking for a new auto insurance policy in Northwest Arkansas, calling Adams Insurance & Financial would be a good option. The team at Adams Insurance & Financial knows the complexities that come with picking auto insurance. They will be able to answer all of your questions while helping you to choose a policy that will give you the right protection. 

Commercial Insurance Requirements in Arkansas

In 2018, Arkansas was home to more than 247,000 small businesses employing more than 400,000 people. Since 2018, those figures are estimated to have grown, with small businesses being a crucial part of Arkansas’ economy. Consequently, if you are a small business owner in Arkansas, you must have enough insurance to cover not only your business and assets but also your assets like company vehicles and property. 

When deciding between coverage options, it is essential always to have enough liability coverage to protect the entirety of your assets. Liability coverage helps pay for damage to a third party person or property. Additional examples of coverage offered under liability include advertising errors if accused of copyright infringement, reputational damage to help pay for defense against claims of slander or libel, and medical payments if someone is injured while at your place of work. 

Outside of several exceptions, the vast majority of small businesses in Arkansas are required to carry workers’ compensation insurance if they have three or more employees. Workers’ compensation insurance helps pay for medical bills and lost wages due to workplace injuries and illnesses. Additionally, any vehicle owned by the business must be covered under commercial auto insurance. 

When it comes to shopping for commercial insurance in Northwest Arkansas, look no further than Adams Insurance & Financial. Our friendly and knowledgeable team of insurance professionals know the industry like the back of their hands and are ready to customize a policy that perfectly fits your company’s needs. Give us a call today to schedule a no-obligation consultation to learn about how we can help protect your livelihood.

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