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:
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:
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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A lot of people may be hesitant to purchase a life insurance policy. They may think it’s too expensive. The truth is that a life insurance policy is much cheaper if you buy it when you’re young and healthy because insurance companies consider healthy people far less at risk of dying than someone much older who may also be in poor health.
If You’re Getting Married
Once you get married, you not only have yourself to take care of, but you have someone who, not only loves you, but depends on you to be their partner through life. If one of you dies unexpectedly, a life insurance policy can help with any financial woes or struggles that may occur.
If You’re Planning to or Already Have Children
We all know that having babies costs money. Everything from feeding them to buying diapers for them, to paying for child care, those expenses certainly add up. A life insurance policy can help ease your stress level when it comes to providing for your kids.
To Cover Lost Income
If you die and you left loved ones behind who solely relied on your income, an adequate life insurance policy will help them cover those monthly mortgage and car payments.
Funerals
It’s a sad reality, but a reality nonetheless. Funerals cost money. No one likes to think about having to say their final goodbyes to a loved one. A life insurance policy can help ease the burden of having to pay for a funeral. Although you may be gone, your loved ones can take comfort in knowing they did everything they could in saying their final goodbyes.
Pay Off Debt
Unfortunately, debts don’t just disappear if you die suddenly. If you and your spouse both signed on that dotted line for a mortgage, now that you’re no longer around, your spouse may have to carry the heavy load of the repayment. Another scenario may be creditors coming after your estate. Your loved ones already have to deal with the heartbreak of losing you. Don’t add financial burdens and struggles to that mix.
College Funding
Countless Americans borrow money through student loans in order to pay for college. Did you know a solid life insurance policy can provide an excellent way to supplement your payments? Paying for higher education is definitely a costly endeavor. And life insurance can certainly help! Talk to one of our experienced agents about how a life insurance policy can benefit you!
If You Own A Business or Are a Co-Owner of a Business
If you are a business owner, you’ll want to make sure that your family as well as your employees are protected in the event of your untimely death. Running a business isn’t cheap and requires a lot of different expenses. From office supplies to payroll, a life insurance policy can help those you leave behind.
Estate Taxes
If you’re concerned about your children’s inheritance, a life insurance policy can help protect them from inevitable inheritance taxes they are going to be hit with. A life insurance policy can help cover those costs.
Life Insurance Is More Affordable Than You Might Think
On average, you’ll pay more for your daily cup of coffee than you pay for your life insurance. Still, it’s important to keep in mind that these types of policies tend to become more expensive the longer you wait to purchase one.
Peace of Mind
Although none of us can know what’s going to happen in the future, a life insurance policy can help put your mind at ease, knowing that no matter what happens, your loved ones will be protected.
Call our office at 301-948-2010 to speak with one of our experienced life insurance professionals. They can help you find the coverage that best fits your needs.
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As each new year begins, all of us take some time to reflect. We reflect on our goals, our accomplishments, and how our lives have changed. Perhaps you had a goal to go the gym three times a week. Or maybe, you told yourself you were going to travel more. Whatever the case may be, we all have different goals, different needs, and it’s up to us as individuals to have the discipline and tenacity to stay focused on what we need to do to make our lives better for ourselves and our families.
All of us may have resolutions that we set for ourselves as individuals, but how much thought have you given to creating a better life for your loved ones? Let’s talk about how paying attention to your insurance needs can make your life a whole lot easier and more enjoyable, so that you can live each day with the peace of mind you deserve.
They say that the only constant in life is change. And that’s true whether you’re 18, 80 or somewhere in between.
One thing to consider when life changes is your insurance coverage. Here are six common transitions that your Erie Insurance agent can help you navigate.
You’re off to college.
With Erie Insurance, full-time students younger than 24 are automatically covered under their parents’ homeowners policy. Part-time students (or students who are 24 and older) may need to take out a renters insurance policy. If you choose to live in an apartment instead of a dorm, think about purchasing a separate renters insurance policy. (Learn more about renters insurance below.) When it comes to car insurance, you don’t need your own policy if you’re taking a family member’s car to school. If you’re a co-owner on the vehicle or if you own your own car, you probably need your own policy.
You’re renting your first place.
You found the perfect place, but since your landlord’s policy doesn’t typically cover your stuff, you’ll want to look into getting your own renters policy. In addition to protecting your belongings, a renters policy also provides worldwide liability protection for a situation like harming someone while riding your bike. If someone is hurt in your apartment, your policy most likely would pay his or her medical bills. A renters policy will often cover additional living expenses if your apartment is damaged and you can’t stay there because of something like a fire. There are many affordable options—plus, you can qualify for a discount if you purchase both a renters and an auto policy from ERIE. In some cases, the discount can pay for pay for most (or all!) of the renters policy.*
You just got married.
If you’re just starting out, you’ll definitely want to look into life insurance. Life insurance can be the most affordable way to help ensure that you or your new spouse is able to carry on if the unthinkable were to happen. Also remember to ask about your auto insurance. You could qualify for discounts, including a multi-car discount if both cars are insured by ERIE. Finally, you may need extra coverage on an engagement or wedding ring. With an Erie Insurance homeowners or renters policy, your coverage for lost or stolen jewelry is capped at $3,000. So if your ring is worth more, you’ll want to consider separate coverage.
You welcomed a bundle of joy.
You may have binkies, diapers and formula on your mind, but another thing to consider is life insurance protection for your family. Everyone needs financial protection—even a stay-at-home parent. With life insurance, you can provide for your loved ones even if…well, you’re not there.
You retired and are renting a place somewhere warm for the winter.
No penalty for sand between the toes! If you’re going south, an extra policy is not needed in the majority of cases. That said, a lot depends on the policy you already have, how long you’ll be gone and what kinds of things you’ll be taking to your temporary home. For these reasons, it’s a good idea to check in with your agent before you head south.
You or a loved one is entering an assisted living facility.
When it’s time for help with care, it’s a good idea to consider a renters policy if you or a loved one is entering an assisted living facility. A renters policy covers belongings—and, more important, personal liability. For instance, renters insurance could cover your loved one if he or she was responsible for injuring someone.
Many people can’t afford to pay big medical bills out of pocket, so definitely contact your Boizelle Insurance before making the move. Life may change, but one thing that doesn’t is being able to rely on us. You can always turn to us when it comes to making sure you’re protected at every stage of life.
*Individual policies may differ.
Originally by: Amanda Prischak, Erie Insurance
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