Life is full of turning points that affect lifestyle and attitudes. Young people may not worry much about insurance until something bad happens to their vehicle. Additionally, various major life milestones can lead to greater assets and new responsibilities. Here are five major milestones that can affect how you think about insurance.
Buying a new car or motorcycle
One of the most exciting major life milestones is buying a new car or motorcycle, especially if it reflects career success. You can transfer the coverage to your new vehicle if you already have auto insurance, and another option is to add a new car to your existing policy. Make sure your new car is covered based on your state's requirements when driving it off the lot. In addition to meeting the state's minimum car insurance requirements, you will likely have to carry other forms of insurance if you finance your vehicle through a conventional lender. Collision coverage pays for damage to your vehicle from an accident. Comprehensive coverage pays for damage from non-accidents.
Marriage unifies two people in several ways, including financially. Once people get married and have a family, they should look at health and life insurance options. They may already have sufficient health plans from their employers. Otherwise, the couple may want to start their own family plan. A life insurance plan will help provide income for the family and pay funeral expenses if one of the parents dies. When it comes to auto insurance, a couple can save money under a shared plan. Many families benefit from a multi-car discount of up to 25 percent when putting all household vehicles on the same plan.
You don't have to reach retirement age before getting attractive bargains for seniors. Turning 55 is a big deal because it's when many insurance agencies offer senior discounts. Other businesses that offer discounts for people 55 or older include restaurants, movie theaters, and various service providers.
Having kids (or grandkids)
Once you have kids, you'll need to plan their financial future, which will include insurance when they become old enough to drive. Families often choose family health insurance plans that allow each member to visit the same doctor. Life insurance is another consideration in planning a stable economic future for your survivors. The two main types of life insurance plans are whole life and term life. Whole life is the broader plan suited for big families. It provides much more benefits beyond the basics of final expenses, which include funeral costs. A whole life plan is like building a savings account the policyholder can withdraw from or borrow against. The main drawback to a whole life is that it costs more than a term life plan, which only lasts for a certain term.
Buying a home
Another milestone that raises many insurance issues is buying a home for the first time. It's an achievement that brings comfort and pleasure, but in order to maintain this scenario, you need a homeowners insurance plan that protects all your belongings under the most challenging conditions.
Also Read: New Homebuyers' Guide to Home Insurance
Get the Best Insurance for Every Milestone with Little & Sons Insurance Services
Taking on new risks and responsibilities raises questions about your insurance needs. Contact our team at Little & Sons Insurance Services. We're ready to answer your questions and provide more information on how major life milestones affect insurance.
Related Article: Review Your Home and Auto Insurance Policy in These Situations