Acentria Insurance Blog

Life Events that Affect Your Insurance Needs 

As we age and reach different milestones in our lives, our insurance needs change. In order to ensure adequate coverage, contact a licensed insurance agent at Acentria Insurance if you’re affected by any of the following life events:

• New homeownership— Purchasing a new home is a big investment—one that you will want to protect. After purchasing a home, ensure that you have homeowners insurance to protect against things like fire, weather damage, theft, vandalism and accidental damage. This advice also holds true if you are buying a new condo or vacation home.
• Home renovations—Once you own a home, you may want to make updates to create a better living space. Be sure to report major home improvements to your insurance company to protect any increased value to your home.
• New children—Having or adopting children is not only a huge life change, but it’s also a major financial commitment. As such, it’s important to purchase the right policy to secure your child’s future. Add your child as a beneficiary on any life insurance policies, and make sure your coverage is sufficient.
• Teenage drivers— Teen drivers often carry the highest risk of auto accidents. While you want your teen driver to remain safe on the road, costly accidents can happen without warning. Consider adding your teen driver to your auto policy, as it is generally cheaper than purchasing a separate policy.
• Retirement—When you retire, you may change residences. If you have more than one home, this is a good time to let your insurance provider know where you plan to spend your time.
• Valuable purchases—A standard homeowners policy has limited coverage for highly valuable items. Supplement purchases and gifts that exceed the policy’s limits with a floater—a separate policy that provides additional insurance.
• Marriage—When your marital status changes, so do your insurance needs. Marriage typically leads to the combination of households, vehicles and other property, so it is critical to update your insurance policies accordingly. What’s more, life insurance is vital to married couples as it can ease the financial burden in the event of an untimely death of a partner. Ask about discounts on car insurance for married policyholders.
• Purchasing or selling a business—If you’re an entrepreneur, there will likely come a time when you will either buy or sell your business. During these times of major change, the proper coverage is crucial.

Insurance is critical for nearly every stage of life. Seeking coverage should be an active process, and individuals shouldn’t assume their insurance needs remain steady over time. Contact us today to better understand your insurance and prepare for your future needs.

*Know Your Insurance is offered courtesy of Acentria Insurance and Zywave, Inc. The above statements should not be construed as legal advice. Readers should contact legal counsel or speak with a licensed insurance professional for appropriate advice.

Life can be unpredictable. That’s why ensuring your loved ones are covered and protected after your death is important, especially we grow older. Family members who depend upon you for an income could be left in a challenging situation if you were to unexpectedly pass away.

Life insurance policies from Acentria Insurance are flexible, affordable and designed to fit both you and your family’s needs. As we somberly honor Widow’s Day, let’s take a deeper dive into the importance and intricacies of life insurance.

Are there different types of life insurance?

Acentria offers several types of life insurance policies suited for varying situations and needs. These policies are divided into two categories: term and permanent (or whole) life insurance

Whole Life Insurance: Otherwise known as straight life or permanent life, whole life insurance is the most traditional life insurance policy. Whole life is designed for customers who value absolute guarantees and consistency in rate of return, cost and benefits. These policies are more expensive than term policies in the early years, but they even out because of steady premiums.

Universal Life Insurance: Universal life insurance is a type of permanent life insurance that offers more flexibility in premiums and face value throughout the policy. Universal life insurance policies have the potential for higher earnings on the savings component, and there is usually a guaranteed return on the cash value. Disadvantages include possible higher fees and increasing premiums.

Variable Life Insurance: A variable life insurance policy is also a form of whole life insurance that typically has fixed premiums. With variable life insurance, you maintain control over the investment decisions for the cash value portion. However, this may be a riskier option because there is no guarantee for the cash value.

Term Life Insurance: Unlike the others, term life insurance is life insurance that protects you and your dependents for a specified period of time. It’s the simplest and cheapest form of life insurance, but there is no cash value. Once the period is up, your policy becomes invalid.

Employers often offer either term or whole coverage (or both). Some employers cover the full cost while others require employees to pay a premium.

What life events affect my life insurance policy?

If you have an existing life insurance policy, it’s important to keep your insurance agent up-to-date on any major changes that occur in your life. Your agent might suggest adding to your current life insurance policy (such as when you have children) or bundling that policy with another necessary policy (such as homeowners insurance for when you purchase a home).

These life changes include, but are not limited to:

• Buying a home or renovating your current home
• Having children or adopting children
• Retiring (and moving residencies)
• Getting married
• Being responsible for a teenage driver
• Buying or selling a business

Contact an Acentria agent to learn more about how these changes affect your current policies.

What factors impact life insurance premiums?

Many factors are considered when looking at life insurance premiums. Women typically pay less than men due to a longer life expectancy, while smokers pay higher premiums than non-smokers. An individual’s health, family history, occupational risk and lifestyle choices all impact your life insurance premiums.

All new life insurance policyholders are required to undergo a medical exam and answer questions about their medical history. It’s important to be honest during this process: lying about your medical history could result in a loss of policy or denied benefits for your dependents upon your death.

While some factors are beyond your control, there are ways to reduce your life insurance premiums through lifestyle changes. Quitting smoking, losing weight through diet and exercise, and improving your cholesterol all may help reduce your current premiums.

You may also have an opportunity to reduce your premiums through a group rate. Call your Acentria agent to learn more about our cost-saving group rates.

Protection Throughout Your Life and Beyond

At Acentria, we know the subject of life insurance can be overwhelming and possibly uncomfortable. We’re here to walk you through the process and answer any questions you have along the way. Our top priority is providing you with a policy that safeguards you and your family after you’re gone.

Request a life insurance quote here to learn how you can start protecting your loved ones today.