The Insurance Purchasing Guide to Life’s Major Moments

The Insurance Purchasing Guide to Life’s Major Moments

The Risks, Insurance Policies and Advice for Personal Milestones.

© 2014, INGUARD®

!!!Insurance can be an in9mida9ng subject for those who are not familiar with the available op9ons, or how to match them to their specific needs. While insurance can be purchased online through self-‐help systems, this process can leave consumers with the impression that insurance products are a one-‐size fits all op9on—however, this is not the case. !Products vary in cost and extent of coverage based on your needs, unique circumstances, and other considera9ons related to your lifestyle and tolerance for risk. !!!!

!And while insurance is meant to protect you and your family from unexpected—and oPen costly—occurrences, it can fall short of your needs if the right coverages are not selected upfront. !We created this ebook to offer an overview of the specific insurance policies you should consider now, and at every stage of your life. !If you have any ques9ons aPer reading this ebook, or are looking for more informa9on about which insurance policies or coverage features you should consider, please contact an INGUARD representa9ve at 866-‐563-‐8821 or visit www.INGUARD.com.

ForwardPrepare for all of life’s major moments with an insurance plan that will help you make the most of your years.

2The Insurance Purchasing Guide to Life’s Major Moments

http://www.INGUARD.com

Purchasing Your First Vehicle ................. 4

Ren9ng Your First Residence .................. 7

Saying Your “I Do’s” …………………………… 12

Buying Your First Home ……………………… 15

Welcoming Your First Child ……………….. 19

Insuring Your Teen Driver ..................... 22

Planning for Re9rement ……………………. 26


Table of Contents

Purchasing Your First Vehicle

4

!!!Whether you are in the midst of obtaining your driver’s license, or are ready to upgrade from your family’s hand-‐me-‐down vehicle, purchasing your first car can be an exci9ng and in9mida9ng step into adulthood. This is a huge milestone for many people, and there are several factors that need to be considered prior to heading to the car dealership. !Most states require drivers to carry a minimum amount of liability insurance, and for good reason, too. Each year in the U.S., there are more than 6 million car accidents. !According to the Na9onal Safety Council, the average cost of a car accident resulDng in a nonfatal disabling injury is more than $78,000 and property damage is roughly $9,000. !

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Top Reasons to Buy Car Insurance: !1. To meet the legal requirements of your state. 2. To protect your car, your passengers and other motorists.

3. To defend yourself and pay damages if you are accused of having been par9ally or fully at-‐fault in the accident.



http://www.nhtsa.gov/staticfiles/numbers/Safety_In_Numbers_Older_Drivers_811864.pdf

http://www.nsc.org/news_resources/injury_and_death_statistics/Pages/EstimatingtheCostsofUnintentionalInjuries.aspx

!When it comes to paying for repairs and medical bills, insurance is essenDal. When you report an accident to your insurance agent, if your policy covers physical damage (comprehensive and collision coverage), you cover the deduc9ble and the insurance will cover the rest of the costly repair. Passenger Medical coverage can help cover medical bills to you and other occupants of your vehicle. !The average lifespan of passenger cars con9nues to rise—11.4 years in 2013, compared to 9.8 in 2002—all the more reason to make sure your car is properly insured if you are planning on keeping it for a long 9me.



http://www.nsc.org/news_resources/injury_and_death_statistics/Pages/EstimatingtheCostsofUnintentionalInjuries.aspx

7

!3 Money-‐Saving Tips To Consider When Buying Your First Car: !

1. Choose a car with great safety features. For instance, driving a car with airbags and self-‐retrac9ng seat belts can help you save money on insurance. As a general rule, heavier vehicles protect occupants bejer than lighter ones.

!2. Find a car that is equipped with an an9-‐lock brake system, and you will save approximately 10 percent on your car insurance premiums.

!3. Select a make and model that suit your needs, and will cost less to insure. For instance, older mid-‐ and full-‐size cars will cost less than newer sport-‐u9lity vehicles.

!Also check out this helpful how-‐to ar9cle from Consumer Reports, “How to buy your first car, And drive away with a great deal.”


INGUARD insurance specialists can explain the difference in insurance costs among the models you are considering.

http://www.iihs.org/iihs/brochures/shopping-for-a-safer-car

http://www.forbes.com/sites/jimgorzelany/2013/01/14/the-cheapest-and-most-expensive-2013-cars-to-insure/

http://www.consumerreports.org/cro/2012/12/how-to-buy-your-first-car/index.htm

http://www.inguard.com/contact










RenDng Your First Residence

8

!!You are finally breaking away from the nest, and ready to move into your own place. The tradeoff for the extra independence, however, is the reality of the extra financial responsibility that comes with the territory. !There are a mul9tude of poten9al mishaps that could occur at your rented residence. If a fire, theP or other misfortune takes place, having coverage for your personal property can mean the difference in your ability to rebound financially. Addi9onally, if someone is injured at your rented residence and sues you, renters insurance would cover your legal expenses. !Renters insurance is a type of personal package policy that includes personal liability insurance and damage to the contents of your apartment caused by a covered peril.

9

Top Reasons to Buy Renters Insurance: !

1. Renters insurance protects more than your personal belongings (includes medical expenses and liability).

!2. It is affordable! The average cost of renters insurance is $15 per month. Factors that have an impact on total cost include how much property insurance you need, the liability limits you select and the loca9on of your apartment.

!3. Many first-‐9me renters do not have substan9al savings available to cover a major loss. So if something happens, they may be in big financial trouble without insurance.



http://www.nytimes.com/2012/01/29/realestate/getting-started-a-word-to-the-wise-renter-insurance.html?_r=0

http://homes.yahoo.com/news/how-much-home-or-renters-insurance-is-enough-.html

http://money.usnews.com/money/blogs/my-money/2013/05/03/why-you-cant-afford-to-skip-renters-insurance

10

If you are ren9ng in an older building, or someone’s personal home, you should consider the cost of the structure and contents within when discussing renters insurance with your agent. !Make sure your insurance can adequately cover the extent of a serious loss, beyond your personal belongings. !If you plan to live with roommates, it is also recommended that each tenant have their own policy. Renters insurance varies state-‐to-‐state, so it may be tricky to iden9fy which items are protected under one roommate’s policy. !When discussing renters insurance with your agent, make sure you know which items would be covered by your policy, and which items need to be covered by your roommates’ policies.



http://insurance-quote-review.toptenreviews.com/home-insurance/does-my-renter-s-insurance-cover-my-tenants-.html











Tips for RenDng Your First Apartment: !

1. Establish a realis9c budget based on the neighborhood you select.

!2. Ensure that all communica9ons are documented in wri9ng.

!3. Inspect the apartment before signing. !4. Provide a list of reliable references. !

If you have lijle or no credit, it may be difficult to find a landlord willing to accept your applica9on. Finding a trusted co-‐signer can help you become approved for your rented residence. !Check out this US News Personal Finance ar9cle for more 9ps on ren9ng your first apartment.


http://money.usnews.com/money/blogs/my-money/2013/06/07/why-some-use-a-co-signer-on-their-apartment-lease

http://money.usnews.com/money/personal-finance/articles/2012/05/21/tips-for-renting-your-first-apartment

Saying Your “I Do’s”

12

!!!“First comes love, then comes marriage…” A catchy childhood jingle, but the part of the rhyme that is omijed is the escala9ng price of marriage proposals and weddings. !According to the Associated Press, “the cost of the average American wedding [is] about $26,000.” !Considering that the average cost of an engagement ring is $4,000, and the average cost of two wedding bands is $1,500, you may be looking at a prejy pricey milestone that may require a stand-‐alone policy to protect financially. !!

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http://bigstory.ap.org/article/wedding-insurance-expands-nuptials-get-pricier

http://www.nytimes.com/2014/02/01/your-money/with-engagement-rings-love-meets-budget.html

http://online.wsj.com/news/articles/SB10001424127887323277504578193632809752150

Another thing to consider: !As you begin to share responsibility for the support of a household, you should also begin to consider the value of life insurance for both partners. !For more informa9on, see the “Welcoming Your First Child" chapter, star9ng on page 19.



Like many other expensive assets, you should consider which insurance opDons you might need to cover any poten9al losses, damages or even changes of heart.











Buying Your First Home

15

!Buying your first home is one of the most important moments in your life. Whether your dream loca9on is in the suburbs, country or a downtown metropolitan area, make sure you have the right coverage to protect your property and the people you love. !Home insurance protects more than the physical structure of your home—it extends to any personal property that may be stolen or damaged by another covered peril. !Another important coverage to consider is liability insurance, which protects your assets and earning power in the event you are accused of property damage or causing bodily injury to someone else.


Buying Your First Home

Top Reasons to Purchase Home & Liability Insurance:

!1. It provides financial protec9on for you and your family.

!2. It can cover the cost of medical bills if someone is injured on your property.

!3. If you are responsible for damage to your neighbor’s property, your insurance company will defend you if you are sued.

!Many endorsements and coverage enhancements are available to be tailored to your specific situa9on. To save even more, contact your insurance agent to inquire about bundling your home and auto insurance. Some programs enable you to save up to $400 per year or more depending on your carrier.


http://www.reuters.com/article/2012/05/24/us-insurance-rates-bundling-idUSBRE84N14Z20120524

18

If you plan on conduc9ng business in or from your home, commercial property insurance is another coverage op9on that you should certainly consider. This type of insurance provides financial protec9on for your office equipment, inventory and other valuable assets related to your business opera9ons. !A standard Homeowners policy will not cover your legal liability for accidents or injuries arising out of any business ac9vi9es, such as office, studio and sales, from your home. Let your insurance representa9ve know of any such business ac9vi9es at home, and discuss the op9ons for geong liability insurance to cover them.


http://www.inguard.com/blog/3-types-of-insurance-every-home-based-business-owner-should-consider











Welcoming Your First Child

19

!!!One of life’s greatest joys is the welcoming of a new baby. There are many elements you plan ahead for when your baby is on the way—prepping the room, organizing the clothes, purchasing diapers and countless toys, an9cipa9ng sleepless nights, etc.—but the most important factor you should plan ahead for is the financial stability for your family. !It is no secret that having a baby is expensive. If you do not carry health insurance, you will pay a bundle of money for your new bundle of joy. Even before you enter the hospital for delivery, consider the costs for prenatal classes, ultrasounds and other doctor visits. !!!!

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Did you know? !The average hospital stay for U.S. deliveries costs $3,500 per day, and “the average total price charged for pregnancy and newborn care is about $30,000 for a vaginal delivery and $50,000 for a C-‐sec=on, with insurers paying out an average of $18,329 and $27,866.”



http://content.time.com/time/specials/packages/article/0,28804,1930805_1931673_1931670,00.html

http://children.costhelper.com/prenatal-classes.html

http://hcup-us.ahrq.gov/reports/statbriefs/sb71.pdf

http://www.parents.com/blogs/everything-pregnancy/2013/07/01/must-read/labor-delivery-costs-hospital-bill/

!!!Something to keep in mind: If you and your family are not already covered by health insurance, now is the 9me to assess your needs. !When the baby comes, will your wallet be prepared? !Life insurance covers financial expenses in the event of the unexpected. Protect your family with coverage that replaces lost income, eliminates debt and provides financial security for the future. !Life insurance will actually cost less the younger you are when you start the policy. If you purchase life insurance early, your cost savings will really add up over the term of the policy. !!

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Top Reasons to Invest in Life Insurance: !

1. Life insurance helps protect your spouse and children from financial insecurity in the case of your un9mely death.

!2. Life insurance proceeds can help provide funds for college.

!3. In the event of an accident or death, life insurance helps ensure that your mortgage is covered so your family does not lose their home.

Insuring Your Teen Driver

22

!Welcome to the joys of paren9ng, part two! !If you thought your days of unnecessary tantrums were over, think again. Raising a teenager is tough business, but teaching your teen to drive safely is a scary job many parents must tackle. !Depending on your exis9ng auto insurance, your premiums could triple by adding a teen driver to your policy. Make sure you go over the rules of the road with your teen, and lead by example in showing him or her safe driving skills.


Insuring Your Teen Driver

http://www.dmv.org/insurance/how-to-add-teens-to-your-auto-insurance-policy.php

Steps to Take When Adding a Teen Driver:

!1. Call your account manager to discuss your op9ons.

!2. Know which car(s) the teen will be driving. !3. Discuss the cost of insurance so your teen understands the coverages provided.

!4. Outline the procedure of u9lizing your insurance carrier. This prepares your teen driver in the event of a traffic accident or driving viola9on.


Steps to Take When Adding a Teen Driver: !1. Select an older car model with the latest safety equipment for your teen. !

2. Depending on your insurance policy, your teen could be eligible for certain discounts, such as being a good student.

!3. Set limits around the amount of 9me you allow your teen to drive. Being a low-‐mileage driver is a bonus discount that could save you money. !You can even invest in a GPS product that enables you to track your teen’s driving behavior, loca9on and speed. Even if you trust your teen infinitely, the GPS feature is worth considering if the car is ever lost or stolen.

!4. Teach your teen proper defensive driving techniques to help decrease the likelihood of a possible traffic accident. Highlight that the biggest risk comes from distracted driving. !

5. Develop a contract outlining the specific driving rules that you would like your teen driver to follow. Review the rules with your teen prior to handing over the car keys. You can also download a variety of mobile applica9ons to monitor your teen’s driving behavior. !Make a strict rule: no texDng, or similar acDviDes, while at the wheel.


http://www.consumerreports.org/cro/news/2013/06/five-best-used-cars-for-teens/index.htm

http://www.dmv.org/insurance/good-student-auto-insurance-discounts.php

http://www.usatoday.com/story/news/nation/2012/10/19/parents-monitoring-teen-driving/1638475/

http://www.cdc.gov/ParentsAreTheKey/pdf/Parent_Teen_Driving_Agreement-a.pdf

http://www.journal-news.com/news/news/local/parents-have-new-options-to-monitor-teen-drivers/nghRT/

http://stoptextsstopwrecks.org/

Planning for ReDrement

26

!!!!!!The golden years of re9rement are meant to be spent doing the ac9vi9es you enjoy the most. You worked hard to build a comfortable lifestyle, and now is the 9me to plan for the days where you can kick up your feet and relax. !!!!!!!!!!

!!!!!!When you begin planning for re9rement, make sure you consider certain coverages in your preexis9ng life insurance plan, including: !AnnuiDes & ReDrement Accounts: This service ensures that you and your family are secured with a steady source of income aPer you re9re. !Long-‐Term Care: Coverage for the expenses of long-‐term care, including home care, hospice care and assisted living. Plans protect your family’s financial future, especially with the increasing cost of long-‐term care. !!



!!ReDrement Planning in Your 20s, 30s, 40s and 50s: !20s: Start developing good money-‐saving habits in your 20s to help secure your future. Pay your bills on 9me, and ensure that your credit cards are paid in full each month. !Also, set aside money from every paycheck–even if it's only a small amount–and invest it in a long-‐term savings account. !It is also important to have several savings plans, including a rainy day fund, a mid-‐life fund and a re9rement fund. !!!!!

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Many people focus on the first and last, but forget to save for the expenses that occur in your 30s/40s, such as high school and college tui9ons, caring for geriatric parents and assisted living, or even going back to school and star9ng a new career. !Click here for more 9ps on re9rement planning in your 20s.


!!!30s: You should start thinking about re9rement in your 20s, but your 30s are when you really need to get serious about your future needs. !Create a budget, invest part of every paycheck in automa9c payroll deduc9ons for a 401(k) plan and invest in a comprehensive insurance plan. !Click here for more 9ps on re9rement planning in your 30s. !!!!!!!!

40s: You are geong closer to re9rement, but you s9ll have roughly 20 years before officially re9ring. !By now, you should have a prejy good nest egg set aside for re9rement, but you need to keep building that to ensure a comfortable transi9on. !Start by developing a savings strategy, consider conver9ng to a Roth IRA if it makes sense for you, and take the 9me to brush up on your employment skills by taking training classes on new technologies. !Click here for more 9ps on re9rement planning in your 40s. !!!!!!



http://content.time.com/time/specials/packages/article/0,28804,1930805_1931673,00.html


!!!50s-‐60s: These are the prime years right before re9rement, so there are a few reali9es to keep in mind to ensure that all of your savings are used for their ini9al purpose. !First, you need to learn how to say “no” to your grown children when they ask for money. Take advantage of the catch-‐up provisions in medical savings accounts and re9rement accounts, and talk to your insurance representa9ve about adding long-‐term care to your insurance policy. !Click here for more 9ps on re9rement planning in your 50s-‐60s. !!!!

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!!Protect your lifestyle and wealth with a solid, long-‐term insurance strategy. Start by preparing for life’s milestones with a plan that will help you make the most of your years, and enjoy each stage of life to its fullest. !It is never too early to start saving, so talk to your insurance representa9ve to develop a plan that works best for you. !Share these Dps with friends and family who are entering a major life change, and help them feel confident in the insurance programs they put forth to protect themselves, their assets and their families. !

If you have any ques9ons aPer reading this ebook, or if you’re interested in learning more about insurance coverages and INGUARD’s holis9c consulta9on services, contact us at 866-‐563-‐8821 or visit www.INGUARD.com. !!If you have any ques9ons aPer reading this ebook, or are looking for more informa9on about which insurance policies or coverage features you should consider, please contact an INGUARD representa9ve at 866-‐563-‐8821 or visit www.INGUARD.com.

Conclusion Want to learn more?


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The Insurance Purchasing Guide to Life’s Major Moments