The Truth About Big Insurance Companies vs Local Insurance Companies: What Massachusetts Homeowners Need to Know

Name: Vargas & Vargas Insurance
Address: 1133 Washington St, Dorchester, MA, 02124
Telephone: 617-298-0655

Posted on February 9, 2025February 21, 2025 by cvargas

When it comes to protecting your Massachusetts home, one of the biggest decisions you’ll face is choosing between national insurance giants like State Farm and Allstate or working with a local insurance broker. Let’s break down what really matters for homeowners in the Bay State.

Understanding Your Options

Think of national insurance companies as the big-box stores of the insurance world. They’re everywhere, and yes, they have some nice perks. These companies offer:

24/7 claims service for those middle-of-the-night emergencies
User-friendly mobile apps that make filing claims easier
Bundle discounts when you combine home and auto insurance (usually 15-25% savings)

But here’s something many people don’t know: local insurance brokers often provide these same services, plus a whole lot more.

The Hidden Costs of National Insurance Companies

Here’s where things get interesting. Those attractive rates you see advertised by big insurance companies? They’re often “teaser rates” – special introductory prices that can increase significantly at renewal time. It’s like getting a great cable TV deal that doubles in price after the first year.

According to the National Association of Insurance Commissioners (NAIC), the average homeowner’s insurance premium in Massachusetts is significantly affected by local factors that national companies might not fully consider. Learn more about average insurance costs in Massachusetts here.

The Wind Deductible Wake-Up Call

Let’s talk about a real situation that many Massachusetts homeowners don’t discover until it’s too late. Many national insurance companies have something called a “wind deductible.” Here’s what that means:

If your home is insured for $500,000
And your policy has a 2% wind deductible
You’ll need to pay $10,000 out of pocket before insurance kicks in for wind damage

Local Advantage: The Massachusetts Edge

Local insurance brokers bring some powerful advantages to the table:

Deep knowledge of Massachusetts building codes
Understanding of specific risks in different neighborhoods
Experience with what claims typically get approved or denied
Ability to find policies without high wind deductibles
Personal relationships with their clients

The Insurance Information Institute reports that working with an independent agent can often result in better coverage options tailored to local conditions. Check out their research here.

Making the Smart Choice

When choosing between national and local insurance providers, ask yourself:

Do you prefer talking to a different person every time you call about your policy?
Would you rather have a personal relationship with someone who knows your property?
How important is having local expertise about Massachusetts-specific issues?

Essential Questions to Ask Any Insurance Provider

Whether you go national or local, always ask these key questions:

What is your wind and hail deductible?
What’s your average response time for claims in our area?
How do you handle policy non-renewals?

The Price Factor

While national companies might seem cheaper at first glance, local brokers often find ways to save you money through:

Special discounts for updated wiring in older homes
Credits for proximity to fire stations
Discounts for homes near water sources
Competitive bundle rates for auto and home insurance

The Bottom Line

The right choice isn’t about big versus small – it’s about finding the best protection for your specific situation. While national companies offer convenience and well-known brands, local brokers provide personalized service and deep understanding of Massachusetts insurance needs.

For many homeowners, the value of having a local expert who knows the unique challenges of insuring Massachusetts homes – from triple-deckers in Dorchester to colonials in Wellesley – can outweigh the perceived benefits of going with a national carrier.

Remember: insurance isn’t one-size-fits-all, especially in a state with as much variety in housing and weather conditions as Massachusetts. Your best bet is to research both options and choose the one that provides the right mix of coverage, price, and service for your specific needs.

If you’re ready to find the right insurance coverage for your Massachusetts home, there’s an easy way to get started. Vargas & Vargas Insurance has been serving local homeowners for over four decades with personalized service and deep understanding of Massachusetts insurance needs.

Take the first step toward better coverage today – call Vargas & Vargas Insurance at 617-298-0655 to speak with a local insurance expert who understands your unique needs. Don’t wait until after a claim to discover gaps in your coverage. Reach out now and get the peace of mind you deserve with coverage that truly protects your home and family.

Understanding the 2025 Homeowners Insurance Rate Increases

Posted on January 24, 2025February 21, 2025 by cvargas

What’s happening with home insurance rates
Homeowners across the U.S. are facing shocking increases in insurance rates. If your bill has jumped recently, you’re not alone—rates have risen by 24% over the past two years.

As independent insurance advisors, we’ve helped thousands of homeowners navigate these changes, find savings, and secure better coverage.

In this article, we’ll explain why rates are rising, which companies are increasing premiums the most, and what you can do to protect your budget.

Which Insurance Companies Raised Rates the Most in 2024?
American Family Insurance leads the pack with a 16.5% increase in 2024. They raised rates in 42 states, with Missouri seeing the biggest jump at 30.1%. Liberty Mutual comes in second with a 14.5% increase, while Progressive rounds out the top three with a 13.5% bump. According to the Insurance Information Institute, these increases are largely due to rising repair costs and more frequent natural disasters.

Where are rates climbing the fastest
Nebraska homeowners felt the biggest pinch, with rates climbing 22.7% in 2024. In fact, 33 states saw double-digit increases. The Consumer Federation of America, reports that states prone to severe weather events are experiencing the steepest rate hikes.

Why rates are going up
Several factors are pushing rates higher: Rising construction costs mean it costs more to repair or rebuild homes. According to Insurance Times, there’s also been significant improvement in profitability, with homeowners insurance showing a 13.8-point improvement in loss ratios during the first nine months of 2024. This improvement came despite challenges like Hurricane Helene. Natural disasters like hurricanes and wildfires are happening more often, with AM Best noting that Hurricane Milton in the fourth quarter is expected to have an even greater impact than Helene on homeowners results. Insurance companies are also paying more for their own insurance (called reinsurance). All these costs get passed down to homeowners..

Some good news
Not all companies raised rates by the same amount. USAA had the smallest increase at 3.1% in 2024. State Farm, the largest home insurer in America, kept their increases lower than average at 10.5%. Over the past six years, they’ve had the smallest total increase at 24.1%.

Homeowners insurance rates have risen sharply, but you still have options to reduce costs. With construction costs rising and natural disasters becoming more frequent, it’s more important than ever to review your coverage.

Your best move? Get a professional review of your policy. We’ll help you compare options, uncover discounts, and find the best coverage for your budget.

What you can do
At Vargas & Vargas Insurance, we specialize in helping homeowners navigate rate changes. Contact us at 617-298-0655 for a free consultation today.

Should I Bundle My Insurance Policies?

Posted on February 13, 2023February 8, 2023 by cvargas

One way to save money in premiums is by bundling insurance policies together. This is when you use the same provider for all of your insurance needs. It’s kind of like getting a “buy in bulk” discount.

Most providers will offer discounts for bundling policies because it helps them make more money. Essentially, you’re giving insurance providers more business, and to show appreciation, many will have significant discounts.

However, there are times when bundling might not be the best option. This, of course, depends on your provider. In rare instances, bundling could actually cost you more in the long run.

This can depend on a lot of factors, and as I said, it’s not very common.

Why Consider Bundling Your Insurance?

Perhaps the most obvious benefit of bundling insurance is the cost savings. When combing things like home and auto insurance through a single provider, you could save instead of paying higher premiums to two different insurers.

Another element of bundling is the convenience factor. Instead of having two online portals or two completely different agents, everything is often handled from a single point of contact.

It’s simply much easier to manage overall. Especially if one insurer already has all of your needs covered and knows the ins and outs of your situation.

How Much Can Bundling Insurance Save You?

Every insurer is different. How much you save depends on your provider and how they calculate your rates. However, many of the most popular providers will offer anything from 6-23% by bundling insurance policies.

On average, you could possibly save around 14% of your premiums every year. Again, though, this depends greatly on the insurance company.

In any case, it’s worth finding out how much your insurer will discount by bundling. After all, there’s nothing wrong with asking, right?

Can You Bundle Policies Later?

Most insurers will allow you to bundle policies as time marches on. This means that if you buy homeowner’s insurance and then two years later decide to add automobile coverage, you still have access to discounts.

Remember what I said earlier; it’s all about giving the insurer more business.

There might be some who don’t offer the best discounts if any at all. In that case, I suggest calling around to see if you can find a better alternative.

What Happens if You Cancel One of the Policies?

Canceling one of your policies may wind up costing you more money. Obviously, without a “bundle” of different services, you’ll revert back to the normal annual premium.

Then again, this also depends on how many accounts you’ve bundled together. Some companies will bundle home, auto, and life insurance. If you cancel, say, the auto insurance, you might still get the discount since you have home and life insurance policies remaining.

You should contact your provider to find out more information about what you can bundle together.

Why It’s Important To Work With A Local Independent Insurance Broker

While it may be tempting to go with the big national insurance companies, working with a local independent insurance broker can save you money on your insurance. Here’s why:

1. As a local independent broker, we have access to a variety of insurance companies, so we can shop around and get you the best possible insurance rates.

2. Local independent broker, we know the ins and outs of the insurance market in our area, so we can help you find discounts and savings that you might not be aware of.

3. Bundling your insurance policies with a local independent brokercan often save you money. That’s because many insurers offer discounts for bundling multiple policies with the same insurance agency.

4. Working with a local independent broker gives you someone to talk to face-to-face about your coverage needs and concerns. You’re not just a number to us, so we’ll take the time to really understand your situation and find the best coverage for you.

Bundling Insurance Policies Can Save You Money

How much can you save by bundling policies? At Vargas & Vargas Insurance, we’ll help you answer that question by using our network of providers to find the best deals for you. Contact us today to see how much we can help you save by bundling your policies together.

It’s convenient, and it could result in saving quite a bit on your premiums.

What A Home Insurance Policy Doesn’t Cover

Posted on March 16, 2022March 23, 2022 by cvargas

Is your home insurance policy covering you when you need it most? If you’re like most people on a “standard” home insurance plan, there are several things that aren’t actually covered with your policy!

Don’t worry – you’re about to find out what a home insurance policy doesn’t cover, and how you can quickly make a few updates to your plan to make sure you’ve got the coverage you need.

Before we get into that, take a quick inventory of what you’re hoping is covered in the case an unfortunate event presents itself to you. As we take a deeper dive into what isn’t covered, you’ll be able to quickly identify whether you’ll need extra coverage or if you’re in the clear!

What Doesn’t A Home Insurance Policy Cover?

Most home insurance policies don’t cover the following:

In-Home Businesses
Floods
Earthquakes
Vehicles used for business
High-value Jewelry.

Take a quick look at each in more detail, and how you can protect yourself.

In-Home Businesses Are Not Covered By Your Homeowners Insurance

Did you join the recent surge of people deciding to jump into at-home work, including freelancing, or even starting a business that’s based in their home? Whether you’ve just started or you’ve been at it for years, many people are unprepared for a sudden loss to their business equipment.

Don’t let that be you!

There are several ways to get your business property covered if you’ve got a home-based business.

According to the Insurance Information Institute (III), you can:

Add a Policy Endorsement to your existing homeowners insurance. This simple endorsement is a simple way to increase your coverage to include business property. If your policy has minimal coverage for business property already (as some policies do), this can be a low-cost way to get the coverage you need.
Add an In-Home Business Policy. This policy is for you if you need more comprehensive coverage for business equipment and have a need for liability coverage for your business. It can be a life-saver if you need to recoup costs beyond simple business property, such as loss of important papers, records, income, etc.
Add a Businessowners Policy (BOP). If you’re a small/mid sized business that operates out of more than one location (including your home), you’ll want to consider the broader coverage offered by a BOP.

Be Careful: Floods Are Not Covered In Most Home Insurance Policies

This one is slightly tricky, as most people don’t think they live in an area susceptible to flooding.

However, “flooding” can mean many things in your insurance policy. For example, a failed sump pump or water damage due to a clogged drain are generally not covered in a standard home insurance policy.

Many people have been saved by adding a separate flood insurance policy, as there is some gray area in standard policies, and they chose to be safe rather than sorry!

Earthquakes Aren’t Covered

Earthquakes are on the rise, according to data compiled by the National Oceanic and Atmospheric Administration branch of the US Government (and shown in this chart). Despite this, earthquakes are not covered by most home insurance policies.

If the thought of an earthquake hitting your area makes you tremble a little, you may want to consider specific earthquake coverage to be on the safe side.

Vehicles used for business

Not surprisingly, vehicles used for business are not covered in a homeowners policy, even if the damage to the vehicle happens on your property.

High-Value Jewelry

Jewelry-lovers take note! If you’ve got jewelry valued at over $2,000, there’s a good chance your homeowners insurance will not cover these pieces.

To make sure you’re covered, you can easily add on additional coverage into your policy to account for the loss if something should happen to your valuables.

We’d recommend learning about coverage for commercial auto insurance if you own vehicles used for business, or check with your employer to ensure they have the correct coverage.

We’re Here To Help Find The Right Coverage For Your Situation

Don’t be alarmed if you’re in any of the categories above. Everyone’s situation is unique, and you deserve to be informed about what is – and what isn’t – included in your coverage.

Let’s talk over your current policy and make sure you’ve got everything you need for your situation.
Contact us today to get a customized plan, or to just get the peace of mind that you desire!

Home Renovations That Might Lower Your Massachusetts Home Insurance

Posted on December 13, 2021February 15, 2022 by agentinsure

Home Renovations That Might Lower Your Massachusetts Home Insurance When you are getting ready to renovate your home, you may be thinking of additional costs such as your home insurance. Some improvements will typically lower your home insurance rates.

At Vargas & Vargas Insurance, we want Dorchester, MA homeowners to get their home renovations done right.

If you are thinking of renovating, you may want to add these modifications to your home to help with your Massachusetts home insurance policy.

Alarm System With Monitoring

When you have an alarm system on your home, with the audio or video monitoring, you increase your security. You are likely to see a reduction in insurance rates with an alarm system from an approved company.
You may not need to get your alarm company approved but check with your provider. Adding an alarm system during home renovations will also keep your new changes secure from safety threats.

Install a Sewer Backup Valve

Sewer backup is a significant home insurance risk. You can even update your home insurance policy to include coverage for this, as the costs are exorbitant.

Adding a sewer backup valve is easy, and can help you in the event of a sewer backup disaster. When water has nowhere else to go, it will come into the home. This is an expensive problem, and your insurance company knows this. Add a valve to the sewer and this could save you from this problem, and also from insurance costs.

Install a Sump Pump

A flood in the basement is a disaster. If you don’t have one already, a sump pump is a very affordable way to prevent flooding when bad weather hits. Overland flooding in Massachusetts is on the rise and could lead to an increase in claims. Add one to avoid this mess, and to potentially lower your home insurance costs.

Get a Quote

When you are renovating your home, you need to talk to your insurance company or update your home insurance policy. At Vargas & Vargas Insurance, we want Dorchester, MA homeowners to have the most thorough policy, through every change in love. Call us for a quote and update your policy today.

How to Organize Your Insurance Policies to Help Your Spouse or Dependents Find Them

Posted on September 15, 2020August 3, 2020 by cvargas

older couple organizing and discussing their insurance policy documents on the computer

Acquiring policies like life insurance can put your mind at ease and help you feel secure. But it’s only the start of formulating a game plan that will keep you and your family prepared for any unforeseen circumstances. Part of your ongoing strategy must involve decisions about organizing and storing your policies so that they can be retrieved by your spouse or dependents as needed. By following these guidelines, you can live your life without worrying about how your insurance policies will be stored and accessed.

Choose a Secure Physical and Digital Location

Step one for organizing any insurance plan is to keep it in a safe place that only you — and others you give permission to — can open. There’s so much personal information in policy documents that is important to protect, so we recommend using either a safe or lockable filing cabinet. Let your spouse or dependents know where the key or password is stored. In addition to keeping the papers in a physical location in your home, consider sending a copy to a trusted lawyer or loved one who will also keep it safe.

A digital copy can far outlast paper, which can be lost, stolen, or destroyed. For this reason, definitely keep electronic records of your insurance policies. Make a list of passwords for where your policies are stored on your computer, and share the information with your dependents so they can find them. If you aren’t using software to store your insurance policy, you can scan your hard copy onto your computer.

Communication Is Paramount

While discussing your home or life insurance with your spouse and family can be uncomfortable, clear communication is going to be how you avoid any additional difficulties in case of a crisis. Your dependents need to know which policies you have, and they should probably know the names of your agent, insurance company, and other important contacts. Set clear expectations about how and when these should be accessed, and go over how you have stored everything. By communicating effectively, you can avoid your family being another statistic in the millions of insurance dollars that go unclaimed every year.

Update Outdated Documents

Finally, you should keep everything up to date and know when your policies need updating. There are many life events that can require you to update paperwork, including a new birth, a divorce, a new marriage, a change of address, business developments, and many more. Seek advice from a qualified local insurance agent if you are unsure of when an update might be required.

At Vargas & Vargas Insurance, we can help you with these and other questions or concerns regarding your insurance policies. Our ultimate goal is to assist you in any way we can with top-notch insurance plans and unbeatable customer service.

What You Need to Know About Forced Place Insurance

Posted on June 16, 2020April 15, 2020 by cvargas

Unexpectedly finding yourself paying for forced place insurance can create a significant dent in your monthly budget. This type of insurance is a lender’s response to expired or insufficient insurance, and it costs significantly more than your own policy. It sometimes as much as four times the cost of your own policy. Fortunately, there are steps homeowners can take to resolve their current insurance deficiencies and request that their lenders remove the forced place insurance policy.

What Is Forced Place Insurance?

Forced place insurance is an insurance policy that your mortgage company purchases to cover their interest in your home if:

You let your home insurance policy expire, or
Your policy does not meet their coverage requirements.

Forced place insurance generally only covers the cost of your mortgage. While other insurance policies cover your possessions and the full cost of replacing your home, as well as protect you in the event of a lawsuit, forced place insurance does not protect the homeowner and only replaces the cost that protects your bank or mortgage company.

Why Is Forced Place Insurance So Expensive?

Forced place insurance is generally more expensive than regular homeowners insurance. That’s because it is an extra step that your lender needs to take if they determine that you have not met the insurance requirements specified in your mortgage. Because your property must be insured in order to protect your lender, allowing your homeowners insurance to expire — or purchasing a policy that does not meet the needs of your area — gives your lender the right to purchase any policy they choose for your property.

In many circumstances, the cost of forced place insurance can cost multiple times the amount of a typical homeowners insurance policy. Because the cost of this policy becomes the homeowner’s responsibility, most lenders will not shop around for an affordable option.

If you want to know more about forced place insurance and how to get a more favorable policy, we can help. Contact Vargas & Vargas Insurance today.

What You Need to Know About Personal Property Insurance (for Your Home)

Posted on June 9, 2020April 15, 2020 by cvargas

Homeowners insurance in Massachusetts is complicated. That’s why the staff at Vargas & Vargas is creating blogs. We want to help our customers understand the most important insurance topics as they relate to YOU. With this article, we’ll explain personal property insurance, also known as contents coverage.

As always, feel free to reach out to us directly to speak to a licensed agent if you have questions beyond the scope of this article.

What Is Personal Property Insurance?

Personal property coverage, or contents coverage, is a protection built into your homeowner’s policy for the contents of your home. It covers your belongings, like:

Furniture
Clothing
Carpeting
Dishes and cookware
Almost everything else you own (with a few exceptions)

Take a look around your home. What would it cost to replace everything if the home was to burn down? It would probably cost quite a bit. So most homeowner’s policies will start their basic guess of your personal property’s value at 50% of your home’s reconstruction value. In other words, if we believe your home would cost $300,000 to rebuild, we can guess that your belongings are worth about $150,000.

To get more refined valuations, keep receipts for the more expensive purchases in your home. They can be very helpful after a loss. Also, every homeowner’s insurance policy is unique. Some programs provide more contents coverage than others. So talk to a licensed agent if you feel your contents coverage isn’t enough. We can always provide more!

What Isn’t Covered?

Certain items aren’t protected by personal property coverage. The list includes things like:

Luxury jewelry
Fine art
Expensive furs
Heirloom antiques and collectibles of high value

If you own valuables like a $70,000 painting or a $20,000 Gibson guitar signed by John Lennon, then talk to your agent to get it endorsed on your homeowners policy.

But if you own a $13,000 diamond ring, you’ll need special insurance for it. This type of coverage is called a Personal Article Floater (PAF) — or simply a “floater” — in the industry. Just provide us with certified appraisals, and we’ll do the rest!

Need to talk about personal property insurance? Vargas & Vargas Insurance has service centers all around Massachusetts, and we’re happy to help. Email us today or call 617-298-0655 to speak with a licensed agent.

These Auto Insurance Companies Are Giving Money Back During COVID-19

Posted on May 12, 2020May 12, 2020 by cvargas

couple looking at reduced insurance premiums during shelter-in-place orders

It’s no secret that the COVID-19 global pandemic has caused immense strain — physically, mentally, and financially. While the uncertainty of the coming months continues to weigh heavily on everyone’s minds, more and more stories are coming to light every day about individuals and corporations trying to do what they can to help. The insurance industry is among them. Several companies have implemented plans in recent days that will attempt to lessen the monetary burden their customers are facing for car insurance and other policies. Wondering if your company is one of them? Check out the list below.

Farmers

Customers with Farmers or 21st Century-branded policies will see a 25% reduction on their premium for the month of April. The discount will be applied as a credit to next month’s billing statement. If you paid your premium in full, it will be issued as a check or direct deposit to the account on file. The reduction is being applied automatically and requires no action on your part.

State Farm

State Farm policyholders will be apportioned part of a $2 billion dividend from the company. While exact percentages for individual customers will vary by state, policyholders will be credited a percentage of their premium from March 20 through May 1. The company estimates that the average will be about 25% of the premium for that time frame, and customers don’t need to take action to receive the credit.

Progressive

Policies active with Progressive at the end of April or May will receive a 20% premium credit. The company will notify its policyholders when the credit will appear, and it will be automatically credited toward the balance of their next bill. If you’ve paid your policy in full, then either a check will be issued, or the amount will be deposited into the payment account on file.

Allstate and Esurance

Through the months of April and May, Allstate and their family company Esurance are offering customers a 15% refund based on their premiums for those months. The money will be directly deposited into whatever account their latest payment was made (or credited to their account) – so no action is required by customers to receive the money. The company is also offering payment relief plans upon request, extended coverage for personal vehicles in certain commercial capacities, and the ability to sign up for free identity theft coverage through 2020.

Nationwide

For policies active as of March 31, 2020, Nationwide will be offering policyholders a one-time premium refund of $50. When you’ll see the money will vary by state regulatory approval. The company is also offering the ability to suspend some cancellations, defer payments for certain policies, and waive some late fees in certain circumstances due to COVID-19 related hardships. While no action is required for the premium refund, you’ll need to reach out to a representative for additional considerations.

USAA

Every member with USAA who has an auto policy in effect as of March 31, 2020, will receive a 20% credit on two months of premiums without needing to contact the company. Extended coverage, policy leniency, and special payment arrangements are also available upon request.

Geico

A 15% renewal discount is being offered by Geico for auto, motorcycle, and RV policies set to renew between April 8 and October 7, 2020, for 6-month policies and between April 8 and April 7, 2021, for 12-month policies. The credit is also being extended to new business policies written between April 8 and October 7, 2020.

No action is required on the customer’s end; the discount will be credited automatically upon renewal. Cancellations due to nonpayment have also been paused through at least April 30, 2020, for all states, while some states may get longer windows. You can see if your state has a longer grace period here.

Liberty Mutual

Liberty Mutual customers with personal auto insurance policies will receive a 15% refund on two months of premiums, based on the premium amount as of April 7, 2020. The refund will be automatically deposited into the account used to make your last payment or by check. When the funds will arrive is subject to individual state regulations, but customers do not have to take any action to receive their money.

Vargas and Vargas Insurance is here to help you. As local independent insurance agents, we represent many local insurance companies that are also offering to lessen the burden when it comes to your automobile insurance premiums. Contact us with your insurance questions or to get a quote. We’re available during business hours at 617-298-0655, or you can reach out through text and online. We take pride in helping you with all of your coverage needs and look forward to taking care of you today.

The Financial Benefits of Getting Life Insurance Early

Posted on February 25, 2020January 26, 2020 by cvargas

Young adults can save a significant amount of money by obtaining life insurance before they turn age 35. Yet, most young adults miss this opportunity. If you’re in your twenties or early thirties, it’s important to consider the financial advantages of getting life insurance now.

Your Total Lifetime Cost Is Lower

Age is the primary factor insurers use to determine the amount of your life insurance premium. Generally, the cost of life insurance increases with each year of age. For term life insurance policies, the premium remains the same for the duration of the policy. Someone who purchases term life insurance as a young adult could potentially pay thousands of dollars less than someone who buys the same coverage at an older age.

To illustrate this, let’s meet Robert and Matthew. Matthew is a healthy 30-year-old man. He purchases a 30-year term life insurance policy for $299 a year with a $250,000 benefit. His 40-year-old brother Robert is in good health, too, and he decides to get a policy with the same term and coverage amount. Robert pays a $442 a year.

Although they bought the same coverage, Matthew saves $4,290 because of his age. Also, since Matthew’s annual premium is lower, his youth would give him the advantage of paying less overall — even if he had a longer coverage period than Robert.

Good Health Has a Financial Benefit

Your health also has an impact on how much you’ll pay for life insurance premiums. Adults under age 36 are more likely to be in good health. It’s the period in your life when you’re least likely to have chronic health conditions like obesity, diabetes, or hypertension. Chronic illnesses raise the cost of life insurance.

In summary, as a young adult, you have a window to reap an incredible financial benefit by not waiting to get life insurance. Contact us today to learn more about our term life, whole life, and universal life insurance services.

Vargas & Vargas Insurance

Our Company