Life Insurance and Car Accidents

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A car accident  can be one of the most disastrous events in a person’s life. If the  accident is fatal, the repercussions can vibrate through many aspects of life for the survivors. Five ways that life insurance can help in the event of a car accident:

 

Paying for the final expenses of the victim(s)

Car insurance is set up to only pay certain amounts, even in the  event of a fatal car accident. If you are not at fault in the fatal  accident, the other driver’s car insurance policy will have to pay a  certain amount towards your final expenses, but this amount will not be  enough to cover the entire cost. Life insurance will cover your loss of  life and will provide benefits beyond what car insurance can.

 

Paying off automobile debt

If you are at fault in a fatal car accident, your car insurance may  only cover the debt left on your car if you have full coverage on the  policy. Even personal injury coverage on car insurance will not cover  these expenses. If there is a balance left over, it will be the  responsibility of your estate to cover those costs.

 

Covering expenses when the perpetrator is uninsured

There are limits to the amount of coverage on your uninsured  motorist’s portion of your car insurance. Anything above these amounts  will have to be paid out by your survivors from your estate. If you have  life insurance, you can make sure that your loved ones will be well  taken care of in the event that they have to pay bills and continue to  live while they pursue legal action against the at fault driver in the  court system.

 

Paying expenses above those handled by auto insurance

Above all, there will be expenses that car insurance just is not  equipped to deal with. Car insurance focuses on paying for your car and  in certain circumstances, the personal injuries or repairs for the other  driver. These policies do not cover your final expenses or any medical  expenses you may incur before you expire. When you have life insurance,  this type of policy is designed to pay out all final expenses, as agreed  in the policy, regardless of manner of death.

The expenses will be there for your survivors to pay and a life  insurance policy ensures they can do this, even in their time of grief.  Also, if the accident was your fault and there are expenses claimed by  the victim after your death, your estate will be able to make these  payments from the life insurance proceeds your survivors receive.

 

Life insurance costs less

Life insurance is cheaper than car insurance to purchase and  maintain. You can purchase minimal limits on your car insurance and then  buy a life insurance policy to cover everything the car insurance  policy does not cover. When you have life insurance and are involved in a  fatal car accident, the life insurance will pay your expenses and help  to provide for your survivors after your death. A car insurance policy  will only pay for the car.

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