Four Times to Buy Insurance That May Surprise You
May 27, 2020
For the most part, we know the times it is important to obtain an insurance policy – buying a new car or home, starting a business and protecting your health. There are other times you may not have considered, however, when insurance can help mitigate substantial risk in your life. We will discuss four situations to consider insurance and why you will be happy that you did.
When you co-sign loans for your college-bound dependent
College is expensive, and if your child is taking out loans to help pay for their education, you may be helping them lock in lower interest rates by co-signing their student loans. While this puts your child in a better financial position when it comes time to pay off those loans, it also puts you at greater financial risk if they are unable.
If your child were to pass away unexpectedly, you as the co-signer would be responsible for paying the remainder of the debt balance. It is likely that when you co-signed these loans, you were not in a financial position to pay tens of thousands of dollars. A life insurance policy on your dependent with you as the beneficiary ensures that you have the money to pay off the debt if your child cannot.
When you are a stay at home parent of a child with a disability
When we typically think of life insurance we are considering what happens when the primary earner of the household passes away and how the family will survive the financial loss. We often fail to consider the impact if a stay at home parent dies unexpectedly.
The loss of a stay at home parent will likely mean the surviving spouse will need to secure childcare. This may be especially true and considerably more expensive if you have a child with a disability. A life insurance policy on the stay at home parent will help ease the financial challenges if replacement childcare is needed in their absence.
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When you run your business from your home
Millions of Americans operate small businesses from their homes, but basic homeowner’s insurance does not cover the activities or liabilities of a home business. A rider to your homeowner’s policy can cover some of your business insurance needs, but a home business insurance policy will offer greater protection for liability, theft and other business essentials.
When you live with your significant other but are not married
If your significant other owns a home and you live together but are not married (and your name is not on the deed), your possessions will not be covered under their homeowner’s policy. The owner of the home has a homeowner’s policy that reflects the deed and protects the owner of the home. In order to be added to the policy, you would need to be added to the deed. If that is not an option, you will want to consider Significant Other coverage.
Significant Other coverage extends protection to the partner not on the deed but residing full time in their partner’s home. It will help ensure that in the event of a loss, the personal property of each individual will be covered.
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If you would like to learn more about coverage for one of these situations or any other insurance need contact us to speak with a dedicated Brooks, Todd & McNeil agent