Frequently Asked Questions

 An independent insurance agency is simply an agency/agent which provides insurance solutions that are not tied to a company. Instead of working for any particular company, they work for their clients. Independent insurance agencies offer countless options, personalized advice and also help you with claims.  

Life insurance is an important part of planning your estate and protecting your legacy.  Everyone needs life insurance, whether it is to cover mortgage or debt obligations, for family security, or just final expenses. The last thing you want to do is leave a loved one with any burdens. 

 Term Life insurance pays a benefit in the event of the death of the insured during a specified term. People usually purchase Term insurance when they need a large face value for a limited time period, generally to cover debt obligations like a mortgage. It is usually the cheaper way to buy life insurance due in part to the fact that it does not accumulate any cash value. Whole Life insurance pays a benefit in the event of the death of the insured and also accumulates a cash value. It is generally a bit more expensive than term, but does not limit the coverage to a specific number of years. 

 Actual Cash Value coverage will only pay for the replacement cost less depreciation. As the name suggests, a Replacement Cost policy will pay up to policy limits the cost necessary to replace property destroyed by a covered loss, with no deduction for depreciation. You will pay a higher premium for Replacement Cost coverage. With Replacement Cost coverage, at the time of the loss the company will pay the ACV of the damaged or destroyed property. An additional payment will be made for the difference between the ACV and replacement value once the property has been replaced. 

 Flood is not covered under a homeowner’s policy. If you are interested in obtaining a flood policy, talk to a North Cedar Financial agent. 

 Your insurance company will only pay up to the amount of your policy limits. So, if you’ve chosen Iowa's minimum property damage limits of $15,000 and cause an accident which results in $25,000 in property damage, the insurance company will only pay $15,000, and you will be responsible for payment of the remaining $10,000. 

 A PUP kicks in when the limits of your primary policy (auto, home, etc.) are exhausted, subject to certain exclusions. As a result, your current assets and your future earnings are better protected. 

 You’ve worked long and hard to get to where you are today. You own a home and a variety of personal possessions, some of which may have been expensive, and you and your family have a car or two, or maybe even three. You’ve done your duty and pinched pennies to save for retirement, all in an effort to provide for your family’s present well-being, as well as its financial future and security. But, if you aren’t protected by a PUP, everything you’ve worked for could be at risk because of a single accident or lawsuit.