Car insurance, Online education, Road safety, for secured future

Securing your loved ones' future is a priceless reassurance, making the decision to invest in a life insurance policy a crucial one. The task of determining when and if to acquire life insurance can appear daunting, but if you're pondering whether life insurance is a worthwhile investment, the answer is often a resounding "yes."

Various inquiries arise when contemplating life insurance: "What options are available to me? What are the associated costs? How does term life differ from whole life coverage?"

In essence, acquiring life insurance is synonymous with obtaining peace of mind. In this discussion, we'll delve into the types of life insurance, its mechanics, and whether the current moment aligns with your needs for purchasing a life insurance policy.

What is life insurance?

In simple terms, life insurance serves as a replacement for lost income. These plans offer essential financial security to your family in the event of your passing. When you acquire a policy, you pay regular premiums to your provider, who commits to disbursing a predetermined amount, known as the death benefit, to your dependents upon your demise. A dependable life insurance plan plays a pivotal role in ensuring your loved ones' enduring financial well-being. Knowing that coverages like final expense insurance or lost income coverage are available can offer further reassurance. By safeguarding their financial stability with a life insurance policy, you ensure your loved ones will be cared for. There are two primary types of life insurance:

Overview of term vs. whole

Term life insurance is a policy that provides coverage for a specified period, typically ranging from one to 30 years. If you pass away during this coverage term, the insurance company pays a death benefit to your named beneficiaries. However, if you outlive the policy, there is no payout, and the coverage expires.

Whole life insurance, the second type we'll discuss, is a more intricate form of insurance and is usually pricier. It offers permanent coverage while also accumulating a cash value over time. Part of each premium payment contributes to this savings component known as the "cash value."

Depending on your specific policy and provider, you may have the option to withdraw from or borrow against these funds in certain situations. Whole life insurance is the most prevalent type and provides lifelong coverage as long as you consistently pay premiums on time.

Younger is better

You may be fortunate enough to be at a point in your life where you’re young and healthy, but that doesn’t mean it’s not worth it to look ahead. For example, taking out a life insurance policy earlier in life can let you lock in better rates for the long term. Additionally, if you own property together with another adult, a life insurance policy can help them keep up rent or mortgage payments in the event of your passing.

Reasons you need life insurance (even at a young age)

Even if you are young and healthy, life insurance may be smart move. Here are some of the reasons you may need life insurance:

You’re going to have a baby

If your income disappeared, your minor children, who are unable to support themselves, would most likely be put at a severe disadvantage. The same is true if they will rely on you to help pay for their education or offer disability support.

You’re getting married

If you’re creating a life with your partner and they rely on your salary to pay for things like household spending, losing your income contributions could be disastrous for them.

You support your parents financially

If you are providing for an aging parent, life insurance can help your loved ones find new sources of assistance if you pass away.

You have private student loan debt

Your debts do not simply vanish when you pass away. People tasked with settling your estate’s debt who didn’t follow probate laws, co-signers on a loan, joint owners or account holders, spouses in community property states like California and Texas, and people tasked with settling your estate’s debt who didn’t follow probate laws could all be on the hook to pay your debts.

You work for yourself

If you work for yourself, you’ll need to consider the consequences of your death if you have a business partner or staff. To keep things running, you could take up a life insurance policy with your company partner as the beneficiary.

You have a high-risk job

You have a higher risk of mortality if you work in a dangerous or high-risk environment than if you sit at a desk all day. A larger premium is usually paid for in jobs like aviation, construction, firefighting, mining, oil and natural gas, and a few other fields.

You have extreme hobbies

If you’re a thrill seeker who loves extreme sports, a life insurance company will most likely consider you a higher-risk customer. However, it’s similar to having a high-risk job: you’ll pay more for insurance, but the expense is justified given your risk of dying from unnatural causes.

Who doesn’t need life insurance?

You can probably avoid buying a life insurance policy if no one in your life would be financially impacted by your death. For the time being, you may find that saving and investing in other assets — such as stocks, bonds, retirement funds, or real estate — is a better option.

Keep in mind that your life insurance coverage will be more reasonable if you are younger and healthier. If you anticipate significant life changes, it may be worthwhile to consider your options in order to lock in competitive pricing.

Should young people buy term or whole life insurance?

Term life insurance is, in general, the cheaper and more flexible alternative, and thus the preferable choice for the majority of people. You can customize term life insurance to cover the years of your life when your death would have the greatest impact on your loved ones, and then review the policy when they can sustain themselves without your life insurance.

How much life insurance should I get?

Of course your own financial security should be factored in when buying life insurance. While life insurance is a worthwhile investment, it’s important to remember that you will likely have monthly payments on your policy. The amount of life insurance you purchase will have a direct impact on the amount of your premium payments.

When considering purchasing a term life insurance policy or whole life insurance, consider who is financially dependent on you, and what is your medical history, your life expectancy. In the matter of an untimely death, what will happen with your outstanding debts? Which policy can accumulate cash? How much of a death benefit amount would provide the financial protection you and your family need.

Online insurance calculators, like this one from NerdWallet, are a wonderful place to start when shopping for coverage. They’ll ask you questions about your lifestyle and requirements to help you figure out how much coverage you need.

You can also calculate how much life insurance you need manually with a few simple steps:

• Multiply your annual income by the number of years you want the insurance to cover.
• Add any fixed expenses (like kids’ college tuition).
• Finally, subtract any non-retirement savings or investments you have that could cover some of these costs in lieu of an insurance benefit.

Should I use group life insurance through my job?

As a benefit, many employers provide free life insurance. Basic group life insurance policies are sometimes referred to as employer-provided life insurance policies. Coverage is almost always guaranteed, which means you won’t have to undergo a medical exam or answer any health-related questions to be eligible.

There’s no reason not to accept a basic life insurance policy because it’s free and often provides guaranteed coverage. All you have to do is sign up, and enrollment may be automatic in some cases.

What is supplemental life insurance?

Supplemental life insurance is a type of insurance that offers an extra layer of protection to an existing policy. Supplemental insurance is coverage that you buy in addition to your primary policy. Often known as employee-paid or voluntary life insurance, supplemental life insurance is typically purchased from your company. It can help assist with financial matters, and can be used as an additional death benefit. Private insurers can also provide coverage

Now that your life insurance questions have been resolved, we can help you with your non-life insurance needs! Check out all of the great products we offer.  Contact us or get a quote today.

Investing in a life insurance policy is a wise decision for every family. However, for single-parent households, the significance of this need becomes even more paramount.

In a 2022 study from Life Happens,1 two in five parents said they are “barely” or “not at all” financially secure. And when it comes to losing the primary wage earner, the same study found 44% of families would feel financial hardship in less than six months.

As a single parent, you are both the sole financial provider and primary caretaker for your children. So purchasing life insurance is a great way to make sure that your children can continue to enjoy the lifestyle they have – even if you pass away unexpectedly. Think of it as an added layer of protection that can help your family move forward without facing financial hardships in the process.

How Can Life Insurance Help the Children of Single Parents?

Single parents know all too well that the costs of day-to-day living can add up fast. With life insurance from Erie Family Life, your policy’s death benefit can cover a range of expenses to protect your children when you’re gone. This includes:

Guardianship Expenses

In the event something should happen, you may have already identified a guardian for your children in your will (If you don’t have one, check out our guide to writing a will). The role of this guardian is to care for your children until they reach adulthood. But with the cost of raising a child estimated at more than $300,000, the new caregiver for your children will likely need some financial assistance. A life insurance policy can help your child’s guardian with those costs, making sure their essential needs are taken care of until they reach adulthood.

Debt Payments

If you’re like most people, you probably have a car payment, mortgage or student loans. If someone has co-signed any of these loans for you, they might be responsible to repay them in the event of your untimely passing. Having life insurance can ensure that no one else becomes accountable for your debt. That includes consumer debt like credit cards, personal loans or medical bills.

Funeral Costs

The cost of a modest funeral currently ranges between $8,000 and $10,000. That can be a big burden during a difficult time – forcing your family to cover the expense or resort to crowdfunding. A life insurance policy can help fund your funeral arrangements and final expenses, allowing your family to grieve without worrying about the bill

What Life Insurance Options Are Available?

When it comes to life insurance, the two most common types of policies are:

• Term life insurance: With term life insurance, you’re covered for a specific number of years, and you determine how long the “term” will be. If you live beyond that time frame, your coverage expires and no benefit is paid.
• Whole life insurance: Whole life insurance offers coverage for your entire lifetime. With this type of policy, your family and beneficiaries are often protected for the duration of your life and the policy is paid upon your death.2

Many people consider whole life insurance as part of a long-term protection strategy. That’s because some policies accumulate cash that you can borrow against, if needed.3

But for single parents, term life insurance is a popular choice. With this type of policy, you can select a term that will cover you when you need it most — such as the time it will take your children to reach adulthood. Term insurance also generally allows you to purchase more coverage for a reasonable price. This limited term makes it a cost-effective option to protect for the loved ones you leave behind.

For more information on the differences between these two types of life insurance policies, read our blog post on Term vs. Whole Life Insurance.

How Much Life Insurance Do I Need?

Despite the compelling reasons for having life insurance, nearly 70 percent of single parents with kids living at home are not covered by a life policy. Sometimes it’s simply because they aren’t sure how much life insurance they need or how to make sure they choose the right coverage.

If you have questions, your local ERIE agent can always help you find quality, affordable life insurance coverage that fits your life and budget. But in general, your life insurance policy should line up with the financial obligations you’ll want to cover. This can include the cost of household expenses for your children until they reach adulthood, as well as any outstanding debts and funeral expenses. And if you want to help your kids pay for college, include that amount, too.

Need help doing the math? Check out ERIE’s Life Insurance Calculator to estimate the coverage amount that’s right for you.

Regardless of your driving habits, be it long road trips, carpooling, or daily commuting, car ownership inevitably comes with its fair share of inconveniences. Even staying on top of regular vehicle maintenance can sometimes feel like a daunting task. Add the smallest cracked windshield into the mix, and you find yourself in need of urgent repairs.

Whether it's a pebble impact or a branch encounter, it's crucial to understand how to address a cracked windshield. As a responsible car owner, maintaining a clear view of the road is essential not only to meet state inspection standards but also to ensure the safety of yourself and fellow road users.

What causes a cracked windshield?

Regrettably, numerous common dangers can lead to windshield cracks. Incidents like flying debris on the road, abrupt shifts in temperature, or car accidents are potential causes of windshield damage. Additionally, subpar glass quality or incorrect installation can also harm your windshield. Given that your windshield contributes significantly to your vehicle's structural integrity, any form of windshield damage should be taken seriously.

Road debris

This is by far the most common cause of front windshield damage. Rocks and gravel from the road surface can be thrown into the air by other car’s tires at such a velocity that they chip your windshield glass on impact. Even small chips or cracks can quickly spread and cause more substantial damage.

Abrupt temperature changes

If you live in an area where the temperature tends to swing wildly from day to night, your windshield may be more at risk than if you live somewhere with a more consistent climate. Windshield glass is made to expand and contract with temperature changes, but abrupt, extreme fluctuations can still cause the glass to crack.

Car accidents

This one goes without saying. Like many parts of your car, your windshield is designed to break in a way that won’t injure you in case of an accident. This means that, while your windshield will break in any severe enough accident, its tempering and protective coatings should prevent it from shattering into dangerous pieces.

Low-quality glass

When replacing your windshield, be wary of prices that seem too good to be true — they most likely are. Less than honest businesses may try to cut corners and skirt industry standards when installing a new windshield, which puts your safety at risk.

Incorrect installation

An improperly installed windshield is at much higher risk for damage. Signs of sub-par installation include wavy or blurry glass, water leakage around the edges of the windshield, gaps between the frame and the glass, and rattling or cracking sounds.

Does my insurance cover cracked windshields?

As with most insurance questions, the answer is a resounding “it depends!”. Different types of car insurance offer different coverages for windshield damage, which we’ve explained below.

Comprehensive coverage: Short answer, yes!

An auto insurance policy carrying comprehensive coverage should generally cover windshield repair and/or replacement, so long as the damage was due to a covered event. Covered events may include, among others:

• Inclement weather
• Falling objects
• Theft or vandalism
• Damage from hitting an animal

Collision: Yes, if you were in a collision

As the name implies, collision coverages will take care of windshield repair and replacement costs, minus the cost of your deductible, so long as the damage was caused by a collision. If you rear-end someone while waiting at a light, or even get into a more serious accident, collision coverage will take care of any damage to your windshield.

Liability: No

Liability insurance is meant to cover the costs of damages that you caused to another party. It kicks in if you are in an accident where you are the at-fault driver. So, if you cause a car accident and you need your windshield replaced, you will be responsible for the repair or replacement costs.

Should I always file a claim for windshield damage?

Many car insurance companies have a zero-deductible policy in place for windshield repairs and replacements. If your insurance company has this policy, you should definitely file a claim — you can have your windshield repaired or replaced at no cost to you.

However, depending on the amount of your deductible, in some cases it may be more cost-effective just to pay for your windshield replacement out of pocket. When shopping around for windshield replacement quotes, you may find that many come out to roughly the same amount as your deductible. If this is the case, you’ll be better off not filing a claim.

Will filing a windshield claim affect my insurance premium?

In most cases, filing a claim to have your windshield repaired or replaced will have little to no effect on your insurance premium. However, if you file a claim in the situation listed above, wherein the repair price is roughly the same as your deductible, you could see your premium increase as a result of this largely pointless claim.

Will I get OEM glass or an aftermarket windshield?

OEM (Original Equipment Manufacturer) parts are made by your vehicle’s original manufacturer. OEM auto glass generally costs about 40％ to 60% more than its aftermarket competition. Due to this price difference, in some cases aftermarket glass is all your insurance company will cover. Aftermarket glass is generally of very similar quality to OEM glass. However, you can  request to have OEM glass  and pay the difference between that and what your insurance company pays.

How can I protect my new windshield?

Once your new windshield is installed, there are a few things you can do to help keep it in tip-top shape for as long as possible. While you can’t anticipate day-to-day dangers like road debris or falling tree branches, you can protect your new windshield by:

• Driving safely. You might not be able to avoid the random rock that ruins your day, but you can certainly improve the overall lifespan of your new windshield by following common sense safe driving precautions. Maintain a safe following distance, obey all traffic laws, and try to avoid driving in particularly bad weather.
• Regularly replacing your wiper blades. Damaged wiper blades can really do a number on your windshield. If you notice that your wiper blades are not moving water like they used to, or are more abrasive than they should be, make sure and replace them right away.
• Steer clear of harsh chemicals. Don’t use anything on your car that isn’t, well, meant to be used on your car. Some chemicals can do lasting damage to windshields and compromise their longevity.

Hopefully, you won't find yourself needing the windshield repair and replacement details in this article anytime soon. However, life is full of surprises, and especially during the winter season, your windshield might face increased vulnerability. It's essential to carefully monitor even the tiniest cracks and chips in your windshield, promptly repairing or replacing damaged auto glass. This proactive approach is not only for your safety but also for the safety of all road users.

Why should you consider getting motorcycle insurance even if you don't have a motorcycle license? Discover the reasons behind the importance of protecting yourself and your bike, ensuring your freedom on the open road remains uninterrupted.

Your vehicle's tires are the literal connection between your rubber and the road, and during the summer, they face their toughest challenges. Intense heat, extended road trips, and construction projects can take a toll on your summer tires.

With the transition from gray, gloomy days to the vibrant blue skies and warm sunshine, it's only natural to cast a longing glance at that neglected motorcycle resting in your garage. The allure of beautiful weather has a way of reigniting the desire to hit the open road.

Frequent car washing serves as a commendable strategy for safeguarding your vehicle. Beyond its aesthetic benefits, it plays a pivotal role in averting rust and paint deterioration by eliminating damaging contaminants.

Just like the legendary knights of fairy tales relied on their noble steeds, today's modern road warriors find their brilliance in long-lasting vehicles. A glance at the statistics reveals a fascinating trend: the average age of cars on the road is now a remarkable 11.4 years, according to IHS Automotive. Drivers are choosing to keep their trusted rides for over a decade before seeking a new adventure.

When considering purchasing a car, few options can match the reliability of a compact car. These vehicles offer affordability, fuel efficiency, style, and, depending on the make and model, commendable performance. Popular choices include the Honda Civic, Toyota Corolla, Toyota Prius, and Hyundai Elantra. Positioned one step above subcompact cars and one step below mid-size cars, compact cars comfortably seat up to four passengers, although some buyers might desire more space. In today's market, light trucks like SUVs, crossovers, pickups, and minivans dominate, accounting for over 75 percent of new vehicle sales, a trend that began nearly 20 years ago. Amidst the rising numbers of larger vehicles on the roads, one may wonder about the safety of driving a compact car.

The advantages of a compact car

The main advantage of a compact car lies in its lower cost, making it an attractive option for various types of buyers. Whether you're a first-time buyer on a budget, a struggling college student, a value-conscious shopper, or in need of an affordable family vehicle, the compact car's affordability has always been a strong selling point.

Compact cars boast excellent fuel economy due to their modest power requirements, resulting in more miles per gallon. This aspect can lead to significant savings for most drivers. When combined with their affordable purchase price, compact cars become a highly economical choice for many car buyers.

Maneuverability is a key advantage of compact cars, making them easier to drive and park in various situations. Their small size allows for effortless steering on the road and proves beneficial in tight parking scenarios, such as parallel or reverse parking, as well as navigating through narrow city and town roads in the U.S.

Modern compact cars come equipped with a plethora of advanced features that were once exclusive to expensive vehicles. These may include four doors, ample cargo space, GPS navigation, keyless entry, power locks and windows, and high-quality sound systems. Technological advancements enhance the appeal of compact cars, adding convenience and luxury to this vehicle class.

The safety of a compact car

In theory, compact cars are seen favorably in terms of safety because of their multitude of safety features, many of which come standard in car models. These features include front and side airbags, anti-lock brakes (ABS), LED headlamps, blind spot monitoring, seatbelt and anchoring advancements for car seats, brake assist, and backup cameras. In addition, many popular compact car models perform well in safety and crash test ratings.

However, newer SUVs also feature advanced safety features that have become standard for many models, and in the past few decades, have become lighter and more car-like as a vehicle.  They may even feature safety options smaller cars would not have room for, such as backseat air bags. Pickup are less likely to have advanced safety features, but in terms of safety measures, SUVs have been getting closer to those features already enabled in compact cars.

The dangers of compact cars

Despite the presence of standard safety features in numerous compact cars and their satisfactory performance in safety tests, occupants of these vehicles confront elevated fatality rates and more severe injuries when involved in collisions with larger cars.

According to the Insurance Institute of Highway Safety (IIHS), in the 2017 model year, small cars and minicars comprised 15 out of the 20 models with the highest death rates, while half of the 20 models with the lowest death rates were luxury SUVs. This discrepancy in death rates is attributed to smaller vehicles bearing the brunt of force during collisions with larger vehicles, leading to the elevated fatality rates in compact cars. Additionally, larger vehicles cause more severe injuries to occupants during crashes. Nonetheless, the IIHS study identified two 2017 compact car models, the Volkswagen Golf and the Nissan Leaf, as outliers in this trend, exhibiting notably lower death rates compared to the higher averages of their compact car class.

Are large cars (SUVs and trucks) having an impact on compact cars?

The prevalence of large vehicles on the road, whether they are SUVs, minivans, small pickups or large, is a reality. For the occupants of a larger vehicle, statistics show they have the lowest death rates in a collision compared to occupants in smaller vehicles.

However, IIHS has found that large vehicles like SUVs are more likely to kill pedestrians than smaller cars. Other research has stated larger, full-size trucks, because of their sheer size and frame, create blind spots that can hide pedestrians and smaller cars, increasing the risk of collision, severe injury, and death to those on and around the road with them. Researchers have stated bigger vehicles have a harder time avoiding crashes. But as new car sales have indicated, the market is there for bigger vehicles.

Why do car accidents happen?

While the safety and impact of large vehicles on the road is being studied and researched, especially in comparison to a compact car, driver behavior cannot be overlooked.  Here are some of the leading reasons accidents occur:

• Speeding, or driving faster than the legally posted limits
• Driver distraction, such as texting, eating or other activities while driving
• Fatigue or drowsiness
• Alcohol or drug impairment

Other factors and considerations have also been known to impact driver safety:

• Mechanical problems
• Road and weather conditions
• Poorly-designed roads

Tips to drive safely

If you are driving a compact car, as with any car you drive, you should always follow your state and local government guidelines around driver safety, comply with the posted speed limit and remain a focused and courteous driver. In addition, to protect yourself from the possibility of a larger vehicle blind spot, whether from an SUV or larger, full-size truck, keep these tips in mind:

• Keep away from the sides of SUVs and large trucks whenever possible. Quickly pass them if you must and be vigilant in signaling so you are satisfied you’ve been seen by the driver.
• Ensure you can see the larger vehicle’s side mirrors. If you’re unable to see the driver in their side mirror, it’s probable they don’t see you either.
• Anticipate and watch for the other drivers’ actions. Stay observant and keep an eye on other vehicles’ signals and brake lights.
• Ensure there is enough space in front of you. If you can see a vehicle’s headlights in your rearview mirror, you are out of the front blind spot.
• Do not tailgate. Driving behind larger vehicles means you may not see what is in front of them. Stay clear of the zone directly behind them and provide ample space for them to slow down or stop.

Unleash the exhilaration of car ownership, as few experiences in life rival the thrill of purchasing a vehicle. Whether it's your initial foray into car ownership or an addition to your growing collection, the joy of hand-picking, test driving, and driving away from the lot is unparalleled. Yet, the significant upfront and ongoing expenses tied to owning a car frequently render the option of cash payment impractical for countless drivers. This common predicament fuels the need for alternative financial solutions, allowing aspiring car owners to embrace their dreams without the burden of immediate full payment.