Using Life Insurance For Cash Flow Banking

If you need to supplement college expenses or help to pay off your McKinney, TX mortgage, taking out a loan from the cash value you’ve built up in your life insurance policy can be a smart way of handling your limited cash flow. Using the value built into your whole life insurance policy, also called cash flow banking, can be an advantageous method of financing necessities or paying off bills. If you have good financial restraint, the lack of financial restrictions on how your whole life insurance cash value can be used is a definite perk for permanent life insurance policyholders. Here are some tips from Parker Preferred Insurance to help you understand what cash flow banking is. 

Life insurance is designed to protect your loved ones in the event that you die. But, whole life policies can also be helpful in other financial situations, as long as you are wise about how you use that value. For example, life insurance dividends should not be used for: 

Covering a short-term cash shortfall – You may not be able to pay back your loan or continue paying the premiums and lapse on your policy. 

Covering a short-term loss of income – If you become unemployed, it’s better to find a new job than rely on the cash value of your life insurance policy – but, it could be preferable to taking out a home equity on your McKinney, TX home or getting a personal loan, depending on the interest rates.  

Benefits of Life Insurance Cash Value 

The cash value of your whole life insurance policy is guaranteed to continue increasing over time, as long as you keep up with the premiums, and your earnings will grow as tax-deferred income as long as you live. 

As a whole life policy owner, you’re eligible to receive dividends, which can be used to grow cash value or increase the size of your death benefit. By taking a loan against your cash value, you can benefit from generally more competitive rates than you’d get from a typical personal loan from a bank, making them an attractive source of cash or credit, especially when interest rates are low.  

For more information about how to utilize your whole life insurance policy as a source of personal cash flow banking, contact the experts at Parker Preferred Insurance today. 

Why Do I Need Motorhome Insurance?

If you are thinking about taking a road trip, one of the cost-efficient things that you could do would be to drive your very own motorhome. Before you buy a motorhome in the McKinney, TX area or plan any trips, it is important to consider your motorhome insurance needs. There are several reasons why you need to make sure that you have proper coverage on your motorhome.

Ensures State Requirement Compliance

If you intend to take your motorhome out on the open road, you will need to comply with the state minimum requirements. Similar to any other type of vehicle, you will need to carry liability insurance whenever you are driving your motorhome. In Texas, this will require you to have property damage coverage of at least $25,000 per accident and bodily insurance coverage of $60,000 per incident with a $30,000 per person cap.

Protects Your Asset

While you will want to make sure that you are in compliance with the law, you should also make sure that you are properly protecting your asset. When you purchase a motorhome, you could be taking on a lot of financial responsibilities. Because of this, you will need to make sure that your motorhome is properly protected. A full policy will provide you with protection against many different types of losses. Also, if you have taken out a loan to buy the motorhome, you could also be required under the loan agreement to carry insurance at all times.

If you are looking for a new motorhome insurance policy in the McKinney, TX area, you should reach out to Parker Preferred Insurance. When you meet with this team you can further discuss all of the different motorhome insurance options available to you. This will help you to pick the perfect motorhome policy for your situation. Contact our offices to get a quote in the DFW area.


5 Tips for Storing an RV During Winter

If you don’t plan to use your RV this winter, now’s a good time to start preparing it for storage before cold winter weather sets in. Here are a few tips to ensure your vehicle is stored safe and sound during the cold winter months in McKinney, TX and the DFW area.

  1. If you don’t have room on your property, choose a safe, secure facility to store your RV for the winter season. Make sure your vehicle fits well in the location you’ve chosen before signing off on a rental agreement.
  2. Update your RV registration, license plates, and insurance coverage, if necessary, before taking your RV to a facility for storage. At Parker Preferred Insurance, we can help you adapt your insurance coverage to protect your camper while in storage.
  3. Test drive your RV before taking it in for storage to make sure it’s driving well. If you hear strange noises or notice problems, take it in for a checkup and have any necessary repairs done. Have the oil and oil filter changed, as well, if you haven’t done so in a while. Doing repairs before storing will ensure your RV is in top shape for your next road trip in the spring.
  4. Inspect your RV inside and out and make any repairs to windows, awnings, furniture, etc. Thoroughly clean the interior, removing all food and defrosting the fridge. Leave fridge door open to prevent musty smells. Close windows and blinds to keep the sun from fading carpets and fabrics. Disconnect AC connects and clean air filters.
  5. Cover your vehicle with a protective tarp to keep it safe from the elements during the cold winter months.

For quality RV insurance coverage that can protect your valuable investment all year round, contact an agent from Parker Preferred Insurance in McKinney, TX.

Motorcycle Winter Safety Tips

There’s nothing better than taking the motorcycle out on a hot, sunny day and feeling the breeze blow by as you cruise down an old back road. Once winter time comes around, though, it’s time to put the motorcycle up. You don’t want to ride when it’s cold, rainy, or snowy out. If you do, you’re more likely to be in an accident. If you have to get the motorcycle out during the winter time, there are certain safety tips you’ll need to follow. Here at Parker Preferred Insurance, we’ve put together a helpful go-to guide outlining two must-tips that will help ensure you are safe on the roads in McKinney, TX or anywhere in the DFW area.

Always Wear the Correct Gear

You’re going to need to layer up during the winter, particularly when the temperature is below freezing. You will, of course, want to wear long sleeves, a jacket, face mask, and jeans with long John’s under them. Ideally, though, since you will still sweat even in cold weather, you’ll want to make sure the layers you wear allow your skin to breathe. 

Prep the Motorcycle

If you don’t use a windscreen during the summer, that’s fine. In the winter, though, you’re going to want to keep as much wind off your face as possible. With this in mind, you’ll want to invest in a durable windshield that comes up high enough to keep your whole body protected from the wind. It won’t cover the wind from your hands, but you’ll be wearing gloves to keep them warm. You might even want to consider investing in heated grips.

Want to learn more about motorcycle winter safety tips? Contact Park Preferred Insurance serving the McKinney, TX area.

What is a Freeze Coverage Clause for Boating Insurance?

When your boat is no longer in use during the winter months, it is important to winterize your boat. Depending on where you live, this may include removing the boat from the water and placing it in a storage facility and/or removing certain fluids so they cannot freeze over. However, despite all of your efforts, the unexpected can happen. The storage facility you are storing your boat inside may have a power outage, which causes your boat to freeze, or temperatures that are lower than normal may hit your area, causing your boat to freeze. At Parker Preferred Insurance, serving the greater Dallas, TX area, we recommend freeze coverage for all of these unexpected events. 

Freeze coverage does not cover a boat freezing in every situation. It only covers freezing that is unplanned or unexpected. As such, you still need to take the correct steps to winterize your boat and protect it based on the climate and region you live in. If you fail to take the correct steps, and your boat freezes, your claim can still be denied. Freeze protection is designed to protect those who take the right steps to protect their boat from freezing and encounter unforeseen circumstances that cause the boat or engine to freeze over. If you took the right steps and your boat still froze, freeze coverage will kick in and pay for the damage that occurred. 

Do you have a boat in the greater Dallas, TX area? If so, now is the perfect time to think about adding freeze coverage to your boating insurance policy. Contact Parker Preferred Insurance today to find out how much it will cost you to change your plan and add this to your policy. 

What is Umbrella Insurance?

You know what health insurance, home owner’s insurance, and auto insurance cover. After all, it is right there in the name. However, umbrella insurance is a little less obvious.

Like the rainy day tool it is named for, an umbrella Insurance policy keeps all the areas excluded by other types of insurance under the coverage of protection. 

An umbrella cannot keep a rainstorm at bay, but it can make standing in one much less uncomfortable. In the state of Texas, an umbrella insurance policy will extend the coverage you have to cover the unexpected downpour. Parker Preferred Insurance offers umbrella insurance to the Dallas, TX area.

What does it cover?

There are three ways that an umbrella insurance policy can extend your protection. They include higher coverage limits, legal defense coverage, and additional coverage for otherwise uninsured events.

With higher coverage limits, the state minimum coverage for many types of policies may not be enough to pay your potential liability. An umbrella policy that offers higher limits to these types of coverage, you can reduce the amount with which you will need to come out of pocket.

As far as legal defense coverage is concerned, umbrella coverage can be the difference between winning a case and losing. If you are sued by another party, an umbrella policy might help pay your attorney fees.

Some items are not covered by other types of insurance policies. An umbrella policy may provide coverage for these types of unfortunate events. This includes things like:

  • invasion of privacy, slander
  • slander and libel
  • false arrest and malicious prosecution

Having the right coverage can keep you from getting soaked by an unexpected rainstorm. If you are looking for more information about umbrella policies or other insurance needs in the Dallas, TX area, give Parker Preferred Insurance a call at 972-987-6083 or stop by our offices today.

The Difference Between Condo Insurance and Renter’s Insurance

Condo owners in the Dallas, TX area may be curious about what insurance they need to protect their new home. There are subtle differences between a condo insurance policy and a renter’s insurance policy that may need further explanation. The agents at Parker Preferred Insurance can answer many of those questions and will be able to write a policy that meets your specific needs.

Condo Insurance vs Renter’s Insurance

The main difference between condo insurance and renter’s insurance is what it covers in terms of the building itself. Because you actually own your residence, your policy will cover many of the same types of damage that would be covered under a homeowner’s policy as long as it is within your living space. Renter’s insurance only covers damages to your personal property. 

Protect Your Investment

A condo is a real estate purchase. Unlike a rental or lease agreement, you own your home. It is an investment that will grow in equity just like a traditional piece of real estate. When you start to research on condo insurance, you need to take into account that you will be responsible for any repairs or damages that may occur to your home, even if they are not your responsibility. While the exterior of the building is owned by someone else, anything that is within your living area is yours to protect and insure.

At Parker Preferred Insurance, the agents are always ready to answer any questions Dallas, TX residents may have concerning various types of insurance. If you have just purchased a condo in the area and are in need of an insurance policy to protect your investment, call and schedule an appointment today!

Can A Life Insurance Policy Be Sold As An Asset?

A life insurance policy has benefits other than paying death benefits. 

Parker Preferred Insurance here are alternatives to investing in the stock market in the Dallas and McKinney, TX area. It was observed by investors that the stock market crash in 2009 did not cause significant financial damage to the value of permanent or fixed life insurance policies. Investors were made aware of this fact and considered the attractiveness of life insurance as an investment strategy and considered adding life insurance to their portfolio.

Permanent life insurance not only holds its value but there is growth in its cash value over time, which can result in a higher return rate than on bonds. On the other hand, the value of a permanent life insurance policy will be affected by any lowering of its credit rating which would cause a downgrading in the value of the insurance company’s investments. As a result, Insurance companies, as an investment strategy, may limit their risks by avoiding residential mortgage-backed securities (RMBS).

Investors are now considering life insurance policies as life settlements (aka senior settlements) which are treated as assets that can be sold. The policy owner, whose life circumstances have changed, can sell his or her life insurance for a lump sum payment, thus exchanging a death benefit for a living benefit. The payment is less than its death benefit value but exceeds its cash surrender value. The policy owner sells his life insurance for a lump sum payment, thus exchanging a death benefit for a living benefit. The investor’s return on investment is when the policyholder has passed.

The agents of Parker Preferred Insurance in McKinney, TX not only will guide you to protect your loved ones but will also provide creative insight into other benefits of a life insurance policy. Please call us to have your questions answered and to get a quote!