2023 | Boizelle Insurance Partnership - Page 13
6 Insurance Questions for Newlyweds or Those Soon-to-Be
Whether you’re getting married, planning to have children, or if you have anyone in your family that depends on you, it’s important to do the best you can to anticipate what is going to happen in the future. While no one can have an absolute certainty on what the future holds for them, there are a number of important steps you can take the make your future–and the future of those you care about most a secure one. Here is a short list of questions you should ask yourself if you are recently married or plan to be soon.
- We’re getting married. Should we join our auto insurance?
If one of you has a long list of at-fault accidents on your driving record or auto insurance claims, it may be a better idea to keep your auto insurance policies separate. If you both have a good driving record and no recent gaps in your insurance, you may be able to save some money by combining your policies.
- We’re searching for our first home. Should homeowners insurance factor into what we decide to buy?
Did you know that there are various factors that can determine how much you are required to pay for your homeowners insurance? Factors such as distance from a fire department, proximity to areas more prone to storms, the age of your home and your claims history can all have an effect on the overall cost of your insurance.
- We’re having a baby? Should we get life insurance?
Adding a new baby to the family means added responsibilities and added costs. A life insurance policy can assist you with fulfilling those responsibilities and covering those added costs in the event of an untimely death. A life insurance policy can also help you cover the costs for a funeral. Even more, it can help to pay off your mortgage and help to fund your child’s education.
- Term or whole life?
Term life insurance provides coverage for a specific amount of time. For example, a 30-year policy can help cover the costs of a 30-year home mortgage. For young people, a term policy is often the better option because it tends to be the most affordable. The good news is that you do have the option of converting your term policy to a whole life policy later on.
Whole life insurance offers coverage for the duration of the policyholder’s life. It is sometimes referred to as a permanent life plan.
- What do you offer beyond the basics for homeowners insurance?
Call us to discuss options to expand your coverages beyond the standard homeowners insurance policy. We can help you to protect your underground service lines, appliances, and more.
- We’re used to making purchases online. Why do we need a human insurance agent?
In today’s day and age, with so many parts of life now involving automated messaging and assistance, it can be difficult to navigate the process of getting the best insurance for you. That’s why speaking with a real person is so beneficial. One of our experienced insurance professionals can help answer any and all questions you have, so that you can be sure you are getting the best coverage for you.
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What Is a Guaranteed Insurability Option? Why Do I Need One?
When you’re young healthy, life insurance is probably the last thing on your mind. You’re probably more focused on eating whatever you want, traveling to various destinations, and skydiving (okay, maybe not skydiving, but participating in other endeavors that could pose a risk to your life). While you’re young, maybe you think you don’t have to pay attention to overall health. That couldn’t be farther from the truth. Sure, it’s okay to indulge yourself occasionally, but one of the keys to prolonged health and prosperity is developing healthy habits.
When you’re young, a life insurance policy is going to be more affordable. Why? Because insurance companies take into account the fact that young people are predominantly more healthy and are far less of a risk to develop chronic ailments, diseases, or severe illnesses.
While you’re young, it’s the perfect time to add what’s called a Guaranteed Insurability Option rider or GIO.
The fact of the matter is that we can’t know precisely what’s going to happen tomorrow, five years from now, ten years from now, or 30 years down the line. Life Insurance gives you the chance to be proactive rather than reactive. And remember, if you’re in a situation where you’re reactive, especially in cases of your physical health, it’s probably going to cost you more than if you took the time to plan and anticipate what could happen in the future.
A lot of young people are deterred from purchasing a life insurance policy because they have this misconception that it’s expensive. It’s actually quite affordable.
Some important questions to ask yourself are:
- Do you currently have a mortgage or any outstanding student loans?
- Are you a single parent with a child or multiple children who depend on you?
- Are you the sole earner in your household?
- Do you have a family that needs care in the event you are no longer around the provide for them?
Depending on your circumstances, particularly your financial situation, a term life insurance policy may be better suited for you if you don’t have money saved. The risk you take with a term life insurance policy, though, is that it may never pay out. A better option that provides more security and peace of mind is a whole life insurance policy. A whole life insurance policy offers:
- Guaranteed life insurance protection that will never decrease.
- Guaranteed cash value that can be borrowed to take advantage of future opportunities.
- Payments guaranteed not to change, regardless of changes to your health.
- Additional accelerate death benefit option for terminal illness included at no charge.
A Guaranteed Insurability Option rider helps you create the ability to protect yourself throughout your life. You have it for as long as the policy is in place.
It’s important to remember these few limitations: you only have the ability to add to your coverage through your GIO rider up to the age of 46 and you can’t exceed the million-dollar coverage limit.
As long as you have the GIO rider, you have the ability to add coverage to your policy for qualifying events such as: getting married, purchasing a home, and having a child. You are able to purchase additional life insurance coverage without having to take the step of going through underwriting all over again.
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