Motorcycle Insurance
Coverage Options
To Get a Quote, contact an Allstate Agent or call 1-877-379-BIKE
There's no way around it: Anytime you're on the road, there’s a chance you might get injured. One of the most important things you can do is make sure your motorcycle insurance coverage can help with medical bills if you should get into an accident.
Medical Payments
Medical Payments typically covers reasonable and necessary medical expenses that are the result of any injury to you or your passengers. Some examples of expenses that might be covered include ambulance, hospital, x-ray, dental, and surgical.
Personal Injury Protection
If you're hurt in an accident, or worse, expenses could add up faster than you imagine. That's where this coverage can help, with reimbursements for:
Medical and hospital expenses
Lost income
Services you would normally do yourself
Funeral expenses
Child care expenses
You're typically covered regardless of who was at fault. Personal Injury Protection is only available in certain states.
Take care of your bike and it’ll take care of you, right? There are three kinds of motorcycle insurance coverage that typically help get your bike back on the road.
Collision
A collision almost always means damage to your motorcycle. And that’s just what this coverage is for.
It typically covers damages to your motorcycle that result from a collision with another object, which could include another car or motorcycle, a tree, or a building.
Comprehensive
It doesn't always take two vehicles to make an accident. Comprehensive Coverage typically covers your bike if it's damaged by:
Flooding
Wind
Vandalism
Theft
Some other reason that doesn't involve a crash with another vehicle
You get to choose the amount of your deductible (the amount you pay before eligible coverage kicks in). Comprehensive Coverage typically covers the cost of repairing or replacing your bike, up to the actual cash value.
Uninsured/Underinsured Motorist Bodily Injury
If an accident isn't your fault, you don't want to pay for the other guy's mistake. Especially if he doesn't have enough insurance coverage or any at all. This coverage typically covers damages that result from the injury or death of you or a passenger on your motorcycle caused by an uninsured or underinsured driver. Different states have different requirements for which coverage to have and how much.
If you’re in an accident, there’s a good chance someone else was involved. And if you’re at fault, you’ll want strong motorcycle liability insurance.
Property Damage Liability
If you're at fault in an accident and cause damage to others’ property, Property Damage Liability Coverage typically covers damages that result from the damage to another person’s property when you are at fault. Some of the things you may be liable for include vehicles, private residences, and storefronts and other structures.
Bodily Injury Liability*
If you’re at fault in a crash, it might be your responsibility to cover the medical bills for your passenger or the other driver. In a case like that, Bodily Injury Liability typically covers damages that result from the injury or death of another driver or a guest passenger on your motorcycle when you are at fault.
Some of the things you may be liable for include medical expenses, lost wages, and pain and suffering. (In most states, bodily injury to guest passengers on your motorcycle is automatically provided under this coverage. In other states, you can pay an additional premium so that Bodily Injury Liability also applies to guest passengers.)
*In some states, bodily injury to a passenger is covered separately under Passenger Liability coverage.
Tuesday, May 20, 2008
Wednesday, May 14, 2008
Teen Drivers
"Allstate America's Teen Driving Hotspots" Study Highlights Metro Areas With Highest Rates of Deadly CrashesStudy release launches Allstate's "Action Against Distraction" campaign, stresses dangers of distracted driving, calls for uniform, national Graduated Driver's License (GDL) laws
Downloads
Teen_driving_hotspots_release.doc05/08/2008 Northbrook, Ill. -
Metro areas in the southern United States scored lowest in a study released today by Allstate Insurance Company that identifies "hotspots" where fatal teen driving crash rates are highest. The release of the study, which includes data for metropolitan areas around the country, kicks off the company's national "Action Against Distraction" safe teen driving campaign.
The "Allstate America's Teen Driving Hotspots" study found that the 10 deadliest hotspots among the nation's 50 largest metro areas are concentrated in the southern United States and include three in Florida. According to the study, the metropolitan areas (a central city and its surrounding counties) that were the deadliest hotspots for fatal teen crashes are:
Tampa/St. Petersburg/Clearwater, Fla.
Orlando/Kissimmee, Fla.
Jacksonville, Fla.
Nashville, Tenn.
Birmingham, Ala.
Phoenix, Ariz.
Kansas City, Mo. (and Kan.)
Atlanta, Ga.
Charlotte, N.C.
Louisville, Ky.
The study examines recent federal crash statistics, Allstate claims data on teen collisions, and U.S. Census bureau statistics to score metro areas across the nation on rates of fatal crashes involving teen drivers.
"The study shouldn't just concern parents and leaders in the nation's deadliest hotspots - car crashes claim the lives of more American teens than anything else coast-to-coast," said George Ruebenson, president, Allstate Protection. "Although some cities post better scores than others, the whole country must take responsibility for addressing this crisis. We feel that state and federal leaders should enact uniform national standards for graduated drivers licensing laws. Further, we must have better conversations with teens about safe driving and set good examples through our own good driving behavior."
Interestingly, the markets scoring best in the study include some of the nation's largest cities. While these metro areas generally had more total fatal accidents than others - including the New York City area with a nation-leading 869 fatal accidents involving teen drivers from 2000 through 2006 - the scores were lower when factored against the size of local teen populations. The best scoring cities are:
San Francisco/Oakland, Calif.
San Jose, Calif.
New York City (including Long Island and northern New Jersey)
Los Angeles, Calif.
Cleveland, Ohio
Milwaukee, Wisc.
Boston, Mass.
Portland, Ore.
Salt Lake City, Utah
Chicago, Ill.
The study also found that, across the U.S., fatal crash rates for teens are double in rural areas compared to cities and suburbs. Nationally, of the 43,437 fatal crashes involving teen drivers from 2000 through 2005, 29,998 were in metro areas. But the average rate of fatal teen crashes in rural areas nationally is 51.5 annually per 100,000 teens, compared to 25.4 in metro areas. The greatest disparities in rural over metro crash rates was seen in Florida, with Delaware and Utah also posting significant differences.
The study was conducted by Allstate in conjunction with Sperling's BestPlaces (www.bestplaces.net), a Portland, Oregon research firm specializing in demographic studies and analysis. A more detailed breakdown on the study results - including other market and state comparisons - can be found here: "Allstate America's Teen Driving Hotspots" Study
Today's release of study findings by Allstate Insurance Company kicks off the company's new national "Action Against Distraction" public awareness and policy campaign, which also calls for a national federal standard for graduated driver licensing (GDL) laws and urges Congress to enact the Safe Teen and Novice Driver Uniform Protection (STANDUP) Act.
In addition, throughout May and June - months leading up to some of the deadliest driving days for teens - Allstate will be conducting teen distracted driving training courses aimed at reducing the impact of distracted driving practices such as texting and talking on the phone while driving. Teens in over a dozen cities throughout the United States will participate in the distracted driving training courses.
According to the National Highway Traffic Safety Administration (NHTSA), an average of more than 17 teens a day die on American roads during June, July and August - the three months with the highest teen crash rates. Nearly 6,000 teens die in car crashes every year, a statistic that hasn't changed in more than a decade. While research shows that both parents and teens believe alcohol is the cause of most crashes involving teen drivers, the primary causes of most teen crashes - between 2003 and 2005 - was driver error (87 percent).
To help teens stay safe through prom, graduation, the summer and beyond, parents should initiate a conversation about smart driving. This conversation can include completion of a Parent-Teen Driving Contract, which helps set guidelines for smart driving and consequences for not living up to those expectations. Parents and teens can fill out the interactive contract - setting their own expectations and consequences - online at www.allstate.com/teen.
Research conducted by the National Institute of Child Health and Human Development indicates intervention materials, including parent-teen driving agreements, increase parental restriction of high-risk teen driving conditions among newly licensed drivers.
Allstate also urges state lawmakers to enact better state-level GDL laws that allow novice drivers to gain driving experience gradually and under low-risk situations. An effective tool for saving lives, GDL laws typically involve longer periods of supervised driving, restrictions on late-night driving, limits on teen passengers and cell phone bans for drivers.
Downloads
Teen_driving_hotspots_release.doc05/08/2008 Northbrook, Ill. -
Metro areas in the southern United States scored lowest in a study released today by Allstate Insurance Company that identifies "hotspots" where fatal teen driving crash rates are highest. The release of the study, which includes data for metropolitan areas around the country, kicks off the company's national "Action Against Distraction" safe teen driving campaign.
The "Allstate America's Teen Driving Hotspots" study found that the 10 deadliest hotspots among the nation's 50 largest metro areas are concentrated in the southern United States and include three in Florida. According to the study, the metropolitan areas (a central city and its surrounding counties) that were the deadliest hotspots for fatal teen crashes are:
Tampa/St. Petersburg/Clearwater, Fla.
Orlando/Kissimmee, Fla.
Jacksonville, Fla.
Nashville, Tenn.
Birmingham, Ala.
Phoenix, Ariz.
Kansas City, Mo. (and Kan.)
Atlanta, Ga.
Charlotte, N.C.
Louisville, Ky.
The study examines recent federal crash statistics, Allstate claims data on teen collisions, and U.S. Census bureau statistics to score metro areas across the nation on rates of fatal crashes involving teen drivers.
"The study shouldn't just concern parents and leaders in the nation's deadliest hotspots - car crashes claim the lives of more American teens than anything else coast-to-coast," said George Ruebenson, president, Allstate Protection. "Although some cities post better scores than others, the whole country must take responsibility for addressing this crisis. We feel that state and federal leaders should enact uniform national standards for graduated drivers licensing laws. Further, we must have better conversations with teens about safe driving and set good examples through our own good driving behavior."
Interestingly, the markets scoring best in the study include some of the nation's largest cities. While these metro areas generally had more total fatal accidents than others - including the New York City area with a nation-leading 869 fatal accidents involving teen drivers from 2000 through 2006 - the scores were lower when factored against the size of local teen populations. The best scoring cities are:
San Francisco/Oakland, Calif.
San Jose, Calif.
New York City (including Long Island and northern New Jersey)
Los Angeles, Calif.
Cleveland, Ohio
Milwaukee, Wisc.
Boston, Mass.
Portland, Ore.
Salt Lake City, Utah
Chicago, Ill.
The study also found that, across the U.S., fatal crash rates for teens are double in rural areas compared to cities and suburbs. Nationally, of the 43,437 fatal crashes involving teen drivers from 2000 through 2005, 29,998 were in metro areas. But the average rate of fatal teen crashes in rural areas nationally is 51.5 annually per 100,000 teens, compared to 25.4 in metro areas. The greatest disparities in rural over metro crash rates was seen in Florida, with Delaware and Utah also posting significant differences.
The study was conducted by Allstate in conjunction with Sperling's BestPlaces (www.bestplaces.net), a Portland, Oregon research firm specializing in demographic studies and analysis. A more detailed breakdown on the study results - including other market and state comparisons - can be found here: "Allstate America's Teen Driving Hotspots" Study
Today's release of study findings by Allstate Insurance Company kicks off the company's new national "Action Against Distraction" public awareness and policy campaign, which also calls for a national federal standard for graduated driver licensing (GDL) laws and urges Congress to enact the Safe Teen and Novice Driver Uniform Protection (STANDUP) Act.
In addition, throughout May and June - months leading up to some of the deadliest driving days for teens - Allstate will be conducting teen distracted driving training courses aimed at reducing the impact of distracted driving practices such as texting and talking on the phone while driving. Teens in over a dozen cities throughout the United States will participate in the distracted driving training courses.
According to the National Highway Traffic Safety Administration (NHTSA), an average of more than 17 teens a day die on American roads during June, July and August - the three months with the highest teen crash rates. Nearly 6,000 teens die in car crashes every year, a statistic that hasn't changed in more than a decade. While research shows that both parents and teens believe alcohol is the cause of most crashes involving teen drivers, the primary causes of most teen crashes - between 2003 and 2005 - was driver error (87 percent).
To help teens stay safe through prom, graduation, the summer and beyond, parents should initiate a conversation about smart driving. This conversation can include completion of a Parent-Teen Driving Contract, which helps set guidelines for smart driving and consequences for not living up to those expectations. Parents and teens can fill out the interactive contract - setting their own expectations and consequences - online at www.allstate.com/teen.
Research conducted by the National Institute of Child Health and Human Development indicates intervention materials, including parent-teen driving agreements, increase parental restriction of high-risk teen driving conditions among newly licensed drivers.
Allstate also urges state lawmakers to enact better state-level GDL laws that allow novice drivers to gain driving experience gradually and under low-risk situations. An effective tool for saving lives, GDL laws typically involve longer periods of supervised driving, restrictions on late-night driving, limits on teen passengers and cell phone bans for drivers.
Tuesday, May 13, 2008
Social Security
5 Things to Know About Social Security
When it comes to something as important as Social Security, it’s good to know you’re getting as much from it as possible. Here are five key facts to remember:
1. Your payments will be bigger if you wait until your full retirement age.
You can start taking Social Security payments as soon as you turn 62, but your benefits will be reduced 20 to 30%. That’s a big chunk, especially if you expect to spend many years in retirement. You might consider working a bit longer or relying on your retirement savings to help cover your living expenses until you can receive full benefits.
What's Your "Full Retirement Age?"
If you were born in... It's...
1937 or earlier 65
1938 65 + 2 months
1939 65 + 4 months
1940 65 + 6 months
1941 65 + 8 months
1942 65 + 10 months
1943-1954 66
1955 66 + 2 months
1956 66 + 4 months
1957 66 + 6 months
1958 66 + 8 months
1959 66 + 10 months
1960 or later 67
2. You can work while getting Social Security.
As long as you’re 62, you have the option to take Social Security. If you earn more than $13,560 a year between age 62 and your full retirement age, your benefit payments will be temporarily lowered, based on how much you earn. Say you earn $10,000 over the limit. Your benefits would be reduced by $5,000. If you make $20,000 over the limit, they would be reduced by $10,000. (The limit gets updated each year.)
The good news is that you don’t actually lose out on those benefits. Instead, your payment amount is recalculated so that you receive more money later on. It’s another way working in retirement can help stretch out your income over time.
3. Your payments won’t start automatically.
The two rules above mean it makes the most sense for you to tell the Social Security Administration when you’re ready to start receiving monthly benefits. You can do that over the phone (1-800-772-1213), in person, or through the Social Security online application.
4. Your benefits could be taxed.
Only a third of Social Security beneficiaries end up paying taxes on their benefits. It all depends on the earnings listed on your income tax return. If you file with more than $25,000 as an individual (or $32,000 jointly), you’ll have to pay federal income taxes on your benefits. The rules for state income taxes vary from state to state.
5. Your payments can help your family, too.
Let’s say your monthly benefits turn out to be three times as much as your spouse’s. (It’s a common scenario, especially in families where one spouse paused their career to stay home with the kids.) If she waits until her full retirement age to start getting benefits, her payments will be raised so they equal half of yours.
After you die, your spouse will get either your monthly benefit check or hers—whichever is more. And if you have disabled children, kids under age 19, or elderly parents who depend on you for at least half their income, they could receive "survivor benefits."
Read more on the Social Security Administration’s website.
When it comes to something as important as Social Security, it’s good to know you’re getting as much from it as possible. Here are five key facts to remember:
1. Your payments will be bigger if you wait until your full retirement age.
You can start taking Social Security payments as soon as you turn 62, but your benefits will be reduced 20 to 30%. That’s a big chunk, especially if you expect to spend many years in retirement. You might consider working a bit longer or relying on your retirement savings to help cover your living expenses until you can receive full benefits.
What's Your "Full Retirement Age?"
If you were born in... It's...
1937 or earlier 65
1938 65 + 2 months
1939 65 + 4 months
1940 65 + 6 months
1941 65 + 8 months
1942 65 + 10 months
1943-1954 66
1955 66 + 2 months
1956 66 + 4 months
1957 66 + 6 months
1958 66 + 8 months
1959 66 + 10 months
1960 or later 67
2. You can work while getting Social Security.
As long as you’re 62, you have the option to take Social Security. If you earn more than $13,560 a year between age 62 and your full retirement age, your benefit payments will be temporarily lowered, based on how much you earn. Say you earn $10,000 over the limit. Your benefits would be reduced by $5,000. If you make $20,000 over the limit, they would be reduced by $10,000. (The limit gets updated each year.)
The good news is that you don’t actually lose out on those benefits. Instead, your payment amount is recalculated so that you receive more money later on. It’s another way working in retirement can help stretch out your income over time.
3. Your payments won’t start automatically.
The two rules above mean it makes the most sense for you to tell the Social Security Administration when you’re ready to start receiving monthly benefits. You can do that over the phone (1-800-772-1213), in person, or through the Social Security online application.
4. Your benefits could be taxed.
Only a third of Social Security beneficiaries end up paying taxes on their benefits. It all depends on the earnings listed on your income tax return. If you file with more than $25,000 as an individual (or $32,000 jointly), you’ll have to pay federal income taxes on your benefits. The rules for state income taxes vary from state to state.
5. Your payments can help your family, too.
Let’s say your monthly benefits turn out to be three times as much as your spouse’s. (It’s a common scenario, especially in families where one spouse paused their career to stay home with the kids.) If she waits until her full retirement age to start getting benefits, her payments will be raised so they equal half of yours.
After you die, your spouse will get either your monthly benefit check or hers—whichever is more. And if you have disabled children, kids under age 19, or elderly parents who depend on you for at least half their income, they could receive "survivor benefits."
Read more on the Social Security Administration’s website.
Protection
4 Simple Ways to Protect Your Home
It could be the biggest purchase you ever make. Here are four simple, but crucial, ways to protect your home for the future.
Protect your mortgage.
Thirty years is a long time, and life is full of surprises. Do you know how you’d make your mortgage payment if you were out of work for several months, if a health crisis drained your savings, or if you or your spouse were to die? Make a back-up plan now, and you’ll thank yourself later.
Many families rely on life insurance or annuities to protect their mortgage. They factor in the mortgage balance when deciding what level of benefits they need. You can also use savings accounts and money-market funds to make sure funds are available for short-term needs.
How about your home equity loan? If you have a line of credit, you can use the money for anything you want—to fund vacations, pay off credit cards, or cover other shortfalls. But keep in mind that you’re putting your house on the line. Decide ahead of time how large a monthly payment you can afford, and make sure you stay below that amount.
Learn to love preventive maintenance.
Cleaning out air filters and testing smoke alarms are no one’s idea of fun, but they could save you big bucks (and headaches) in the long run.
The biggest hurdle is often organization—knowing what to do and when to do it. There are standard recommendations for how often to do most repair and maintenance tasks. (Clean your furnace or air filter every three months. Test your circuit breakers twice a year. Drain the sediments from your water heater once a year. You get the idea.)
A good home-maintenance guide will tell you what you need to do and how often each task should be done. Browse through a couple books at the library or bookstore. Then grab your calendar, and you’re ready to get started. Mark down the date you do each task, then count forward and mark the next "due date." Follow the schedule and your house will stay in great condition for decades to come.
Here are three popular books to get you started: How Your House Works, The Ultimate Guide to Home Repair & Improvement, and Home Maintenance for Dummies.
Don’t skimp on insurance.
If you haven’t taken a close look at your homeowners insurance policy, now is the time. Homeowners insurance is required whenever you have a mortgage. Your house is collateral for the loan, so your lender wants to be sure it’s protected. But you should make sure that the policy fits your needs, too.
Make sure your belongings and your valuables are protected, not just the home itself. Clarify exactly what the insurance does and doesn’t cover. Take note of the coverage limits on your current policy, and be sure they’re still appropriate. While you’re at it, see if you qualify for new discounts—especially if you’ve had a theft-protection system installed.
Keep the home’s resale value in mind.
Buying a home opens up all kinds of exciting possibilities, but unless you plan to live out your days in that house, you’ll need to keep its future market value in mind.
Watch out for hot housing markets whose prices could plummet suddenly. Be honest with yourself about how much house you can afford. Use a mortgage calculator ahead of time and stick to that number even if your lender pre-approves a higher amount. And later on, keep future owners in mind when you renovate. (They might not love that aquamarine kitchen tile as much as you.)
It could be the biggest purchase you ever make. Here are four simple, but crucial, ways to protect your home for the future.
Protect your mortgage.
Thirty years is a long time, and life is full of surprises. Do you know how you’d make your mortgage payment if you were out of work for several months, if a health crisis drained your savings, or if you or your spouse were to die? Make a back-up plan now, and you’ll thank yourself later.
Many families rely on life insurance or annuities to protect their mortgage. They factor in the mortgage balance when deciding what level of benefits they need. You can also use savings accounts and money-market funds to make sure funds are available for short-term needs.
How about your home equity loan? If you have a line of credit, you can use the money for anything you want—to fund vacations, pay off credit cards, or cover other shortfalls. But keep in mind that you’re putting your house on the line. Decide ahead of time how large a monthly payment you can afford, and make sure you stay below that amount.
Learn to love preventive maintenance.
Cleaning out air filters and testing smoke alarms are no one’s idea of fun, but they could save you big bucks (and headaches) in the long run.
The biggest hurdle is often organization—knowing what to do and when to do it. There are standard recommendations for how often to do most repair and maintenance tasks. (Clean your furnace or air filter every three months. Test your circuit breakers twice a year. Drain the sediments from your water heater once a year. You get the idea.)
A good home-maintenance guide will tell you what you need to do and how often each task should be done. Browse through a couple books at the library or bookstore. Then grab your calendar, and you’re ready to get started. Mark down the date you do each task, then count forward and mark the next "due date." Follow the schedule and your house will stay in great condition for decades to come.
Here are three popular books to get you started: How Your House Works, The Ultimate Guide to Home Repair & Improvement, and Home Maintenance for Dummies.
Don’t skimp on insurance.
If you haven’t taken a close look at your homeowners insurance policy, now is the time. Homeowners insurance is required whenever you have a mortgage. Your house is collateral for the loan, so your lender wants to be sure it’s protected. But you should make sure that the policy fits your needs, too.
Make sure your belongings and your valuables are protected, not just the home itself. Clarify exactly what the insurance does and doesn’t cover. Take note of the coverage limits on your current policy, and be sure they’re still appropriate. While you’re at it, see if you qualify for new discounts—especially if you’ve had a theft-protection system installed.
Keep the home’s resale value in mind.
Buying a home opens up all kinds of exciting possibilities, but unless you plan to live out your days in that house, you’ll need to keep its future market value in mind.
Watch out for hot housing markets whose prices could plummet suddenly. Be honest with yourself about how much house you can afford. Use a mortgage calculator ahead of time and stick to that number even if your lender pre-approves a higher amount. And later on, keep future owners in mind when you renovate. (They might not love that aquamarine kitchen tile as much as you.)
Life Documents
5 Financial Documents You Need to Have
Don't wait until an emergency happens to start getting your affairs in order. Start with these five key documents:
Will
You need a will. It will properly explain your wishes to everyone you leave behind, sparing your family emotional strain during an already difficult time. If you have children, a will is an absolute must. If you and your spouse were both to pass away, this is the document that will say who you want to become their legal guardians. That’s definitely not something you want left up to the courts.
A lawyer can help you draw up your will, or you might consider using a will-making computer program. Once you have the will, take a look at it every few years and update it whenever there’s a significant change in your life, like marriage or divorce, a new child, or a change in your preferences.
Health Care Proxy
A health care proxy gives the person you choose the legal right to make health care decisions for you if you aren’t able to make them for yourself (for instance, if you’re unable to communicate). Be sure the person you choose knows your wishes and will respect them, regardless of their own views.
Living Will
Living wills are more specific than health care proxies. Their purpose is to clearly explain to hospital staff what sort of medical treatment you want if you’re terminally ill or can’t communicate on your own. Say you had a life-threatening health problem and were rushed to the hospital. They would provide you with a form like this to fill out, but if you were unconscious you wouldn’t be able to. It’s really important to have this document ahead of time.
Durable Power of Attorney
This document makes the person named in it your “attorney-in-fact” and gives them permission to make legal and financial decisions in your place. Just like with a will, this is incredibly important if you have children. As with all these documents, name your choice carefully.
Emergency Information Sheet
If something happens unexpectedly, this will give all the information someone needs to contact your family, find your other four key documents, and take care of the things that need to be taken care of. Include names, phone numbers, and addresses of your doctor, your hospital, and the person you’ve chosen as your health care proxy. Label everything clearly. Even a stranger should be able to understand.
Don't wait until an emergency happens to start getting your affairs in order. Start with these five key documents:
Will
You need a will. It will properly explain your wishes to everyone you leave behind, sparing your family emotional strain during an already difficult time. If you have children, a will is an absolute must. If you and your spouse were both to pass away, this is the document that will say who you want to become their legal guardians. That’s definitely not something you want left up to the courts.
A lawyer can help you draw up your will, or you might consider using a will-making computer program. Once you have the will, take a look at it every few years and update it whenever there’s a significant change in your life, like marriage or divorce, a new child, or a change in your preferences.
Health Care Proxy
A health care proxy gives the person you choose the legal right to make health care decisions for you if you aren’t able to make them for yourself (for instance, if you’re unable to communicate). Be sure the person you choose knows your wishes and will respect them, regardless of their own views.
Living Will
Living wills are more specific than health care proxies. Their purpose is to clearly explain to hospital staff what sort of medical treatment you want if you’re terminally ill or can’t communicate on your own. Say you had a life-threatening health problem and were rushed to the hospital. They would provide you with a form like this to fill out, but if you were unconscious you wouldn’t be able to. It’s really important to have this document ahead of time.
Durable Power of Attorney
This document makes the person named in it your “attorney-in-fact” and gives them permission to make legal and financial decisions in your place. Just like with a will, this is incredibly important if you have children. As with all these documents, name your choice carefully.
Emergency Information Sheet
If something happens unexpectedly, this will give all the information someone needs to contact your family, find your other four key documents, and take care of the things that need to be taken care of. Include names, phone numbers, and addresses of your doctor, your hospital, and the person you’ve chosen as your health care proxy. Label everything clearly. Even a stranger should be able to understand.
Life Changes
How Often Should You Adjust Your Life Insurance Policy?
The whole point of life insurance is that you never know when you’ll need it. So even though your policy might be long-term, you need to make sure it offers the right amount of benefits for your current situation.
A good rule of thumb is to recalculate your life insurance needs once a year, or more often if there’s a major change in your life. Here are some examples:
The Things You Own
Whether you’re married or single, it’s good to know that your finances will be resolved if you should die unexpectedly. That could mean paying off loans or a mortgage, and it’s especially important if you have a lot of debt or want your family to keep living in your home.
Take another look at your policy when:
You buy or sell a home
You take on new debt
Family Matters
You'll want to know that your family's financial needs will be covered if you’re no longer able to provide for them. You'll need the most life insurance when your kids are growing—enough to last them until they become adults and cover their college education. This is even more important if you're the main breadwinner.
Consider raising or lowering your coverage when:
You get married or divorced
You have a baby
Your children become financially independent
Your children finish college
Your long-term goals change
Work Life
The general rule for life insurance is that your policy’s “death benefit” (the amount that gets paid to your beneficiaries if you die) should pay seven times your annual salary. The idea is that as your salary changes, your family’s lifestyle changes to match. If you’re self-employed or own a business, you might also have business-related expenses to cover.
Think about adjusting your policy when:
Your salary changes
You start or sell a business
Your spouse’s job changes
The whole point of life insurance is that you never know when you’ll need it. So even though your policy might be long-term, you need to make sure it offers the right amount of benefits for your current situation.
A good rule of thumb is to recalculate your life insurance needs once a year, or more often if there’s a major change in your life. Here are some examples:
The Things You Own
Whether you’re married or single, it’s good to know that your finances will be resolved if you should die unexpectedly. That could mean paying off loans or a mortgage, and it’s especially important if you have a lot of debt or want your family to keep living in your home.
Take another look at your policy when:
You buy or sell a home
You take on new debt
Family Matters
You'll want to know that your family's financial needs will be covered if you’re no longer able to provide for them. You'll need the most life insurance when your kids are growing—enough to last them until they become adults and cover their college education. This is even more important if you're the main breadwinner.
Consider raising or lowering your coverage when:
You get married or divorced
You have a baby
Your children become financially independent
Your children finish college
Your long-term goals change
Work Life
The general rule for life insurance is that your policy’s “death benefit” (the amount that gets paid to your beneficiaries if you die) should pay seven times your annual salary. The idea is that as your salary changes, your family’s lifestyle changes to match. If you’re self-employed or own a business, you might also have business-related expenses to cover.
Think about adjusting your policy when:
Your salary changes
You start or sell a business
Your spouse’s job changes
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