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.
