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TALKING POINT TUESDAYS

2/12/2019

February: #InsureYourLove

I know most people do not associate life insurance with Valentine's Day but actually it is one of the best gifts you can give to your loved ones! Life insurance is about planning ahead so you and you're loved ones aren't financially disadvantaged if the unexpected happens.

If you're young and healthy, the last thing you're likely to think about is your own mortality. A 2017 Princeton survey commissioned by InsuranceQuotes.com found that 65 percent of 18 to 29-year-olds don't have life insurance. Of those who lacked coverage, 71 percent said it wasn't necessary because they're young and healthy. There are some benefits to consider buying life insurance in your youth.

1. As a general rule, life insurance for young adults is less expensive the younger and healthier you are when initially purchasing it.

2. Life insurance can reduce the stress for your loved ones by paying for burial costs or other final expenses.

3. Cosigners are sometimes legally responsible for shared debts. So if your parents cosigned for your private student loans, the lender may require them to pay what's owed if something happens to you. A life insurance policy could provide the means to your parents to pay off the debt and any other financial obligations.

4. Permanent life insurance policies can serve as a tax-advantaged savings vehicle through the accumulation of cash vale. Life insurance is a great additional option to consider in your overall retirement planning.

To learn more about life insurance click on the photo above.

Please call us to be connected with one of our insurance professionals.

Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148

We are "Your Link to Security!"

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Car Insurance + Your 16-Year-Old

2/11/2019

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Getting behind the wheel for the first time with license in hand is an exciting time for a sixteen year old - the freedom, the control, the independence! Having an extra driver in the home can be more convenient for the parents as well, but it can also be a scary, stressful, and expensive thought. It's important to make the right choices early on for your new teen driver, like determining the proper vehicle for them and selecting the right insurance coverage.

So, how much will it cost to insure my 16-year-old?

Determining the cost of car insurance for one individual can be tricky as there are various factors that can change a rate drastically. Some of these factors include the state you live in, your insurance carrier, qualified discounts, and whether or not your teen drives their own vehicle. The cost will be lower if you are simply adding a driver to your current policy (roughly an additional $20 a month), but that cost can climb up to $200+ a month if you are adding a teen driver and a vehicle. Call your insurance agent to get a better idea of what you can expect to pay.

Why does car insurance cost more for a 16-year-old?

A driver's experience on the road is a big variable when it comes to insurance. Car insurance companies are designed to minimize their financial risk, so it makes sense that a more experienced driver with a good driving history would be less of a risk on the road than a not-so-experienced driver with no history. Practice makes perfect, right? Good driving status comes with time, and young drivers do not yet have a record to show whether or not they are a safe driver. Insurance rates tend to go down once a driver hits the age of 25.

What are some of the most common driving mistakes for teens?

Distracted driving, tunnel vision, and speeding are some of the most common mistakes made on the road by teenagers, according to AAA. Cell phones are the biggest culprit when it comes to distracted driving. Other distractions could include eating, noisy passengers, adjusting the radio, inputting directions in a GPS, or even applying make-up. It's not possible to outlaw all distracted driving, but many states have implemented laws against the biggest offenders. Tunnel vision can be common among new and nervous drivers. This is when a driver focuses too much on the car in front of them and does not scan the surroundings for possible dangers while driving. Teens tend to have tunnel vision on the road which makes it easy to miss cautions like merging cars, pedestrians, or animals crossing. Speeding is another common mistake, but this is not limited to 16-year-olds. It is far too easy to press a little too hard on the gas pedal, and a lot of the time it is not intentional. However, it is dangerous all the same. When it comes to teens in deadly car accidents, statistics have shown that speeding is often a factor.

How can I save money on car insurance for a 16-year-old?

There are a couple ways you can save.

Have your teen on a parent's policy. The cost can be up to 30 percent cheaper this way. There are also discounts, like a multi-policy or multi-car discount, that a teen usually cannot get on their own.
Share vehicles. This can be a huge money saver. The fewer the cars, the lower the cost! Many car insurance carriers allow the teen driver to be added as a secondary driver, or even an occasional driver if they happen to be going to school in another state. Since the teen would not have primary access to the vehicle, typically they would pay a lower rate.

What is the best car for my teen to drive?

If you could make it work, the best car for your teen would be the car you drive. BUT if car sharing is just not an option, you'll want to find something reliable yet affordable. Used cars in good condition would be something to look into. Be sure to check for airbags and other safety features when purchasing a used car. You may even want to consider having a safety inspection. A car with airbags will have cheaper liability insurance than a car without because they reduce the potential for serious injury. And selecting a liability only policy will keep costs down when compared to purchasing a full coverage policy for a young teen driver.

This is an exciting time for your 16-year-old! And it should be for your too. We here at ALINK Insurance Services want your teen to be safe on the road, and we want your family to have the coverage they need. Give us a call today to discuss the effects of having a teen on your auto insurance. We are "Your Link to Security!"

Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148

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Talking Point Tuesdays

2/5/2019

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The Importance of Umbrella Insurance

A common question we often receive from our personal and commercial clients is – What is an umbrella, and why do I need it?

To put it simply, an umbrella provides you with additional or excess liability coverage over and above the limits you carry on your standard, underlying insurance. For a personal client, this is commonly your personal liability coverage attached to your home or renters insurance as well as your auto liability. For a commercial client, this can be a number of different policies and coverages, most commonly your general liability, auto liability, and employers’ liability, usually attached to your workers’ compensation policy.

Umbrella policies provide valuable additional protection against loss of your personal assets, income, and future earning potential. It pays when the limits on your underlying policies have become exhausted. For example, a common underlying personal auto limit $250,000 per person, $500,000 per accident, and $100,000 in property damage. What happens if you cause a multi-car pileup that results in the destruction of several vehicles, and injuries (or even death) to multiple people? There is a strong possibility that your insurance limits will not be sufficient to pay for the damages. Conversely, business auto limits are often written with $500,000 or $1,000,000 combined limits. This may not be enough in the event of a multi-vehicle, multi-injury accident. A lawsuit could cost tremendous hardship for you and your family, or your business.

Umbrella policies are available in $1,000,000 increments. Generally speaking, personal umbrella carriers can go as high as $5,000,000. Most commercial insurance carriers can go up to $10,000,000, with some carriers going even higher. Here at ALINK Insurance Services, we’ve written umbrella policies with excess limits over and above $30,000,000 for high risk clients.

The best part is that most umbrella policies qualify for a multi-line discount on the underlying insurance policies, making this insurance one of the most affordable on the market. A $1,000,000 limit can often be purchased for around $15 a month on personal lines, and $40 a month for commercial.

If you would like to learn more about how you can benefit from an umbrella policy, please call us to be connected with one of our insurance professionals.

Denver Metro/Parker: 303-752-6479
Colorado Springs: 719-473-6262
Surrounding States: 877-643-6148

We are "Your Link to Security!"

0 Comments

TALKING POINT TUESDAYS

Car Insurance + Your 16-Year-Old

Talking Point Tuesdays

The Importance of Umbrella Insurance

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