Skip to main content

Education Center

Car Accident

Life Happens, Are You Covered?

Thursday, May 16, 2019

Read Time: 2 mins  32 secs

Insurance should be part of your financial plan. Finding a policy that fits both your budget and provides you the coverage you need can give you peace of mind today and financial relief when the unexpected occurs. It is important to set yourself up early with good insurance so you will have the coverage in place, should you need it in the future. That isn’t to say you can’t purchase insurance later in life; it just may cost you more. 

Understanding insurance can be a bit tricky too. Don’t know where to start? We’ve broken down some of the common types of insurances and their uses.

Life insurance.
Life insurance can help give you peace of mind and provide security for your family in case of death. It can ease the stress of some expenses you may leave behind, such as funeral costs, mortgage payments, or unpaid debts. Any amount of coverage can help protect your family.

There are two main types of life insurance policies: term life insurance and whole life insurance. Whole life insurance extends coverage until the day you die and the benefits are transferred to your beneficiary; while term life insurance covers you for a set period of time. If you outlive this period, the policy expires, and you have to decide whether you would like to repurchase another policy or not. Whole life insurance typically costs more than term life insurance.

AD&D insurance.
Accidental death and dismemberment insurance (AD&D) is a policy that helps you or your loved ones with coverage in the event of a covered accident that causes death or a serious injury. 

Auto insurance.
Almost all states require you to have auto insurance. If you’re taking out a loan to purchase your vehicle, the lender will require you to have an insurance policy before you leave the dealership.

There are two types of auto insurance, liability, and full coverage. The difference between the two types of coverage is more straightforward than some other insurances. Liability insures against the damage you could cause other people or their property while on the road. Liability coverage is a legal requirement in almost every state. Full coverage applies to damage to your vehicle.

Home or condo insurance.
Unlike auto insurance, it’s possible to have a home without having insurance. However, if you have a mortgage on your home, your lender (or mortgage service provider) will require you to have an insurance policy in place. With a condo, most will require you to purchase condo insurance, regardless if you have a mortgage or not.

If there is no mortgage (congrats to you for having your mortgage paid off), it may be worth having insurance to protect your home and its contents. Having insurance could help cover the costs of damages if there is ever a weather event, like a hurricane.  In addition to covering damage from fire, weather, and theft, homeowners insurance may also help protect you if someone is injured on your property.

Renters insurance.
Live in an apartment, or are you currently renting a home? You have the option of renters insurance. Renters insurance is typically a low-cost coverage plan that can help reimburse you for loss or damage to the items in your apartment, such as furniture. It may also offer protection if someone is injured in your apartment. Many landlords now require their tenants to have renters insurance.

 

Remember to check your coverage annually to ensure you are getting the best rate and coverage.  Also, if you are in the market for insurance, simply being an AllSouth Member allows you to take advantage of a discounted (or low cost) insurance through TruStage a program that gives you access to Esurance and Liberty Mutual insurance companies. Explore and find the best insurance options that will protect you and your family.