This is a guest post written by LV.com.
I don't think there is anyone out there who likes to think about what happens if they die or if they get into a car accident. It is human nature not to want to think about these negative feelings and thoughts. However, as much as it pains us to think about these possible scenarios, it is important to protect ourselves and our families from burden that the loss of our life or the totaling of our car entails.
Many people say that it's not important to get life insurance if you don't have any dependents. When you do have dependents though, be it your spouse or your first newborn child, life insurance becomes much more important. We do not know where our lives may take us, we do not know how long we have to live on earth. We do know that if we die, we will leave behind our loved ones. And the last thing you want to do is leave behind debt for your loved ones. With the massive mortgages necessitating dual income earning families these days, it's important to think about possibilities of you not being here to support your family. Certain life insurance policies can offer you one lump sum, this will help your spouse pay off the mortgage, help send your children for post secondary education, and just live life as best as possible under the circumstances. Your loved ones can try to go one with living life without having the financial burden of large debts and possibly having to file for bankruptcy. They have enough to deal with, you don't need to let them deal with financial burden on top of grieving their terrible loss.
Another feature of a good life insurance policy is where you have the option of taking money out beforehand if you were terminally ill. Cancer is occurring at a higher and higher frequency, even in those who are young, and who we do not expect the possibility of cancer. Those who have wanted to have children, those who are diagnosed with breast cancer at the age of 32, and those who are diagnosed when they are 50 and they haven't gotten the chance to see their unborn grandchildren yet. Cancer is undeniably a terrible disease to have, and treatment to fight it even when you are diagnosed as terminally ill can be very costly. An insurance policy that includes payments before death occurs can be very helpful. Especially if your loved ones take time off work to care for you. Or your loved one needs to have private nursing or needs to go into a hospice. These services can be very costly.
With car insurance, you want to get the most bang for your buck for less. It's important to read the fine print and realize what your annual car insurance covers and what it doesn't. Oftentimes, you can save on car insurance by increasing your deductible. What is the likelihood of you being at fault in a car accident? If you have an impeccable driving record, you should take advantage of increasing your deductible and paying less annually in car insurance. If you want the potential car accident to be as completely stress-free as possible, you can choose to add on extras, like a courtesy car if your car is stolen or completely totaled, you can. The best thing about good car insurance companies is that you have the option of adding on extras, and that they aren't added on for you to start off with.
Youngandthrifty's Take: I hadn't needed to buy life insurance until I got my mortgage, but I want to make sure that my partner isn't going to struggle with finances if I die. I think that's the last thing he should have to worry about. I think it's important to think about the “what ifs” and buy life insurance early (and remember to renew) because you never know where life may take you. With the ever increasing rates of cancer and terminal disease in younger people, I think it is especially important to protect our loved ones from financial burden.
As for car insurance, I still need to look into alternate car insurance companies other than the Crown corporation of ICBC (Insurance Corporation of British Columbia). I know that as a young driver, it is better to stick with ICBC, but now that I have 10+ years of driving experience under my belt, it may be time to look around for cheaper car insurance companies. The great thing about ICBC is that its so hassle free and everyone uses it. The bad thing about ICBC is that its a crown corporation and they were caught rebuilding cars that had been written off and trying to sell them for a profit.
Readers, do you have life insurance? What are your annual car insurance rates? (mine's $1600 and this includes the 43% discount for 10 years of good driving experience)
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