Distracted Driving

Driver distractions or inattentive driving play a part in one out of every four motor vehicle crashes. That is more than 1.5 million collisions a year and 4,300 crashes daily, according to the National Highway Traffic Safety Administration. Text messaging, changing radio stations, even turning around to talk to passengers can prove deadly.

While cellphones and text messaging cause the most accidents, drivers are also distracted by using PDAs, laptops and navigational aids while driving. Other drivers create a potential hazard because they eat, drink, read, write or groom themselves when their full attention should be on the road in front of them. 

In January 2010, the National Safety Council (NSC) released a report estimating that at least 1.6 million crashes (28 percent of all crashes) are caused each year in the U.S. by drivers talking on cellphones (1.4 million crashes) and texting (200,000 crashes). The estimate is based on data of driver cellphone use from the National Highway Traffic Safety Administration and research that quantifies the risks using cellphones and texting while driving.

A July 2009 Virginia Tech Transportation Institute study found that texting while driving is far more dangerous than previously estimated. The collision risk became 23 times higher when motorists were texting while driving.

In addition, as of June 2010 eight states (California, Connecticut, Maryland, New Jersey, New York, Oregon, Utah and Washington State) plus the District of Columbia, ban the use of hand-held cellphones while driving.

EMPLOYERS MAY BE HELD LIABLE

Employers are now concerned that they may be held liable for accidents caused by their employees while driving and conducting work-related conversations on cellphones, according to the I.I.I. Under the doctrine of vicarious responsibility, employers may be held legally accountable for the negligent acts of employees committed in the course of employment. Employers may also be found negligent if they fail to put in place a policy for the safe use of cellphones.

The I.I.I. recommends the following safety tips when driving:

• Pull Off the Road Don’t drive while calling or texting; pull off the road to a safe location.
• Use Speed Dialing
  Program frequently called numbers and your local emergency number into the speed dial feature of your phone for easy, one-touch dialing. when available, use auto answer or voice-activated dialing. 
• Never Dial While Driving
  If you must dial manually, do so only when stopped. Pull off the road, or better yet, have a passenger dial for you. 
• Take a Message
  Let your voice mail pick up your calls in tricky driving situations. It's easy—and safer—to retrieve your messages later on.
•  Know When to Stop Talking
  Keep conversations on the phone and in the car brief so you can concentrate on your driving. if a long discussion is required, if the topic is stressful or emotional, or if driving becomes hazardous, end your conversation and continue it once you are off the road.
•  Keep the Phone in Its Holder
  Make sure your phone is securely in its holder when you are not using it so it does not pop out and distract you when you are driving.
• Don't Take Notes While Driving
  If you need to write something down, use a tape recorder or pull off the road.
• Don't Eat or Drink While DrivingSpills, both hot and cold, can easily cause an accident. If you have to stop short, you could also be severely burned.
•  Groom Yourself At Home
  Shaving, putting on makeup, combing your hair or other forms of preening are distractions and should be done at home, not while driving. 

While everyone should follow these safety rules, it is particularly important to review them carefully with teens when they are first learning to drive. “Teens and Distracted Driving”, a Pew Internet & American Life Project 2009 survey of 800 young people, found that 26 percent of American teens ages 16 to 17 have texted while driving and 43 percent have talked on a cellphone while driving. Forty-eight percent of teens ages 12 to 17 say they have been in a car when the driver was texting and 40 percent say they have been in a car when the driver used a cellphone in a way that put themselves or others in danger.

For More Information Please Visit: Insurance Information Institute 

Keep Cool by the Pool—With the Right Insurance and Simple Safety Measures

This week (July 22-29, 2012) swimming pools around the country will be holding pool safety events as part of the national Pool Safely campaign. There is no better time to consider the insurance and safety implications of owning a pool, according to the Insurance Information Institute (I.I.I).

 

“You can be sued if someone drowns or is injured in your pool even if they did not have your permission to be there,” said Jeanne M. Salvatore, senior vice president and consumer spokesperson for the I.I.I. “So it’s important to have the proper locks and safety equipment and to have appropriate liability insurance.”

 

If you own a swimming pool, or are in the market for one, the I.I.I. recommends taking the following steps:

 

Call your insurance agent or company representative
Let your insurance company know about the pool as it will increase your liability risk. Pools are considered an “attractive nuisance” and you may need additional liability coverage. Consider increasing the $100,000 minimum in your homeowners policy to at least $300,000 or $500,000 if you are a pool owner. You can also buy an umbrella liability policy, which, for an additional premium of $200 to $300 a year, gives you $1 million of liability protection over and above what you have on your home.

If the pool itself is expensive, you will need enough insurance protection to replace it in the event it is destroyed by a storm or other disaster. And don’t forget to include any deck furniture around the pool when calculating the value of your belongings.

Contact your town or municipality
Each town will have its own definition of what constitutes a ‘pool’, often based on its size and the depth of the water. If your pool meets the definition, you must comply with local safety standards and building and electrical codes. This may include installing a fence of a certain size, locks, decks and pool safety equipment.

“Pools offer a great way to keep cool in this heat and humidity, but they can also be dangerous,” cautioned Salvatore. “A child can drown in a few inches of water in less than 30 seconds.”

To help spread the word about the importance of pool safety, the I.I.I. is partnering with the U.S. Consumer Product Safety Commission (CPSC) for the third year of its Pool Safely public education campaign (also on Twitter: @poolsafely).

Drowning is the leading cause of unintentional deaths in the U.S. for children aged five and under, according to the CPSC. “Pools offer a great way to keep cool in this heat and humidity, but they can also be dangerous,” said Salvatore. “A child can drown in a few inches of water in less than 30 seconds.”

 

Keep your children and other pool users safe by taking these precautions:

1. Create several ‘layers of protection’. In other words, set up as many barriers as possible to the pool area, in addition to the fences that are often required by towns and municipalities.
2. Never leave toys or floats in the pool when it is not in use—they can be a deadly temptation for toddlers who might fall into the pool when trying to reach them.
3. Check the pool area regularly for glass bottles, toys or other potential accident hazards. Keep CD players, radios and other electrical devices away from pools or nearby wet surfaces.
4. Limit alcohol use around the pool as drinking alcoholic beverages negatively impacts balance, coordination and judgment—and its effects are further heightened by sun exposure and heat.
5. Clearly post emergency numbers on the nearest phone, so they can be located easily in the event of an accident. 

In addition, Pool Safely recommends the following:

 

Watch Children in and Around the Pool

• Never leave a child unattended in a pool or spa and always watch your children closely around all bodies of water.
• Teach children basic water safety tips.
• Keep children away from pool drains, pipes and other openings to avoid entrapments.
• Have a telephone close by when you or your family are using a pool or spa.
• If a child is missing, look for him or her in the pool or spa first.
• Share safety instructions with family, friends and neighbors. 

Learn Water Safety Skills

• Learn how to swim and teach your child how to swim.
• Learn to perform CPR on children and adults, and update those skills regularly.
• Understand the basics of life-saving so that you can assist in a pool emergency. 

Have Proper Pool or Spa Equipment

• Install a four-foot or taller fence around the pool and spa and use self-closing and self-latching gates; ask your neighbors to do the same at their pools.
• Install and use a lockable safety cover on your spa.
• If your house serves as a fourth side of a fence around a pool, install and use a door or pool alarm.
• Maintain pool and spa covers in good working order.
• Ensure any pool and spa you use has drain covers that comply with federal standards, and ask your pool service provider if you do not know.
• Have lifesaving equipment such as life rings, floats or a reaching pole available and easily accessible. 

RELATED LINKS

Articles: I’m installing a pool; what kind of insurance do I need?; Should I buy an umbrella liability policy?

Video: Swimming Pool Safety

Pinterest: Pool Safety Board

 

For More Information Visit: Insurance Information Institute

Lightning Coverage and Safety

Damage caused by lightning, such as fire, is covered by standard homeowners and business insurance policies. Some home and business insurance policies provide coverage for power surges that are the direct result of lightning striking a home or business. There is also coverage for lightning damage under the comprehensive portion of an auto insurance policy.

With the explosion in the number and value of consumer electronics in homes, such as flat screen TVs, home entertainment centers, multiple computers, gaming systems and other expensive devices, it is more important than ever to take precautions.

Preventing Losses

The I.I.I. offers the following tips to protect homes and businesses against power surges and lightning strikes: 

1. Install a lightning protection system. A lightning protection system supplies structural protection by providing a specified path on which lightning can travel. When a building is equipped with a lightning protection system, the destructive power of the lightning strike is directed safely into the ground, leaving the structure and its contents undamaged. The system includes a lightning rod or air terminals at the top of the house that can be disguised to look like a weather vane and wires to carry the current down to grounding rods at the bottom of the house. According to the Institute for Business & Home Safety (IBHS), the lightning protection system needs to be securely anchored to the roof; otherwise it may whip around in a storm and damage the building. So make sure to have a licensed electrician install your lightning rod and protection system.

2. Use surge protectors. Today’s sensitive electronic equipment is particularly vulnerable to lightning. To assure the highest level of protection, UL-listed surge arrestors should be installed on electrical service panels. Installations typically include surge arrestors for the main electric panel, as well as incoming phone, cable, satellite and data lines. Surge arrestors protect against damaging electrical surges that can enter a structure via power transmission lines. By filtering and dissipating the harmful surges, arrestors prevent electrical fires and protect against electrical discharges that can damage a building's electrical system, computers, appliances and other systems. UL-listed transient voltage surge suppressors can also be installed to protect specific pieces of electronic equipment. Keep in mind that power strips offer little protection from electrical power surges.

3. Unplug expensive electronic equipment. As an added precaution, unplug expensive electronic equipment such as TVs, computers and the like if you know a storm is approaching.

Do’s and Don’ts for Lightning Safety

1. When Thunder Roars...GO INDOORS! Take shelter in a home, large building or substantial fully enclosed building, preferably protected with a lightning protection system. Hard topped-vehicles are generally safe shelters, as well.

 

2. Avoid areas where you will be the highest object. If you are caught in an open field with no nearby shelter, and your hair begins to stand on end (an indication that lightning is about to strike) drop down and crouch with hands on knees, rocking up on the balls of your feet. (The idea is to make as little contact with the ground as possible.) Never lie down flat or place your hands on the ground. 

 

3. Certain locations are extremely hazardous during thunderstorms. Avoid lakes, beaches or open water, fishing from a boat or dock, riding on golf carts, farm equipment, motor cycles or bicycles. Take shelter in tunnels, subways, even ditches or caves if necessary—but never under a tree!

 

4. If caught on high ground or in an open area, seek shelter in a low area and stay away from trees. A small grove of bushes or shrubs is preferable to lone trees.

 

5. To avoid side flashes (voltage from a nearby struck object) stay clear of fences or isolated trees. Keep away from telephone poles, power lines, pipelines or other electrically conductive objects. 

 

6. Stay off the telephone! In your home, don’t stand near open windows, doorways or metal piping. Stay away from the TV, plumbing, sinks, tubs, radiators and stoves. Avoid contact with small electric appliances such as radios, toasters and hairdryers.

For more information please visit: Insurance Information Institute 

Renters Insurance Checklist

If you rent a house or apartment, your landlord’s insurance will only cover the costs of repairing the building if there is a fire or other disaster. You need your own coverage, known as renters or tenants insurance in order to financially protect yourself and your belongings.

 

Renters insurance includes three important types of financial protection:

• Coverage for Personal Possessions
• Liability Protection
• Additional Living Expenses 

The following checklist can help you choose the right coverage when you are shopping around for renters insurance or speaking with an insurance agent or company representative.

1. Coverage for Personal Possessions

1. How much insurance should I buy? Make sure you have enough insurance to replace all of your personal possessions in the event of a burglary, fire or other covered disaster.The easiest way to determine the value of all your personal possessions—including furniture, clothing, electronics, appliances, kitchen utensils and even linens—is to create a home inventory. This is a detailed list of all of your personal possessions along with their estimated value. An up-to-date home inventory will also make filing an insurance claim faster and easier.
   The Insurance Information Institute offers free Web-based home inventory software, available at www.knowyourstuff.org.
2. Should I get replacement cost or actual cash value coverage?
   An actual cash value policy pays to replace your possessions minus a deduction for depreciation whereas a replacement cost policy will pay the cost of replacing your possessions without accounting for depreciation. The price of replacement cost coverage is about 10 percent more but can be well worth the extra expense as the value of most items tends to depreciate quickly.
3. What disasters are—and are not—covered?
   Renters insurance covers you against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and certain types of water damage (such as when the tenant upstairs leaves the water running in the bathtub and floods out your apartment or a burst pipe). Most renters insurance policies, however, do not cover floods. Flood coverage is available from the federal government’s National Flood Insurance Program (888-379-9531, www.floodsmart.gov) and from a few private insurers. You can get this coverage from the same agent or company representative who sold you the renters insurance policy. Earthquakes are not covered either. You can either get a separate policy or have it added as an “endorsement” to your renters policy, depending on where you live.
4. What is my deductible, and how does it work?
   A deductible is an amount of money you pay out-of-pocket before the insurance coverage kicks in. Deductibles are available as a specified dollar amount, typically $500, $1000 or $2000, though higher deductibles are available. The larger the deductible, the lower the premium charged for the same amount of coverage, so if you can afford a deductible of at least $1,000, you may get as much as 25 percent off your premium. Remember though, that you will be responsible for paying the deductible each time you file a claim.
5. What is a “floater” and do I need one?
   If you have expensive jewelry, furs, sports or musical equipment, or collectibles, consider adding a floater to your policy. Most standard renters policies offer only a limited dollar amount for such items; a floater is a separate policy that provides additional insurance for your valuables and covers them if they are accidentally lost. You will need to present receipts and/or appraisals for the items covered by the floater. It is important that expensive items be appraised properly as you will pay a premium based on the appraised value and in the event of a claim, be compensated for this dollar amount. You can ask your insurer to recommend a reputable appraiser. For some items, like laptop computers, a stand-alone policy may also be an option. Check your renters policy first to see whether your laptop is covered and what the deductible is. 

2. Liability Protection

1. Do I have enough liability insurance in the event someone sues me?
   Renters insurance provides liability protection that covers you against lawsuits for bodily injury or property damage done by you, your family members and even your pets. This coverage pays for both the cost of defending you in court and court awards—up to the limit of your policy. Most standard renters insurance policies will generally provide at least $100,000 of liability coverage, but additional amounts are available. Consider whether the amount of liability coverage provided by your policy is sufficient to protect your assets.
   Did you know you also have no-fault medical coverage as part of the liability protection provided by your renters policy? This coverage is only for injuries sustained by others and is not a substitute for your own health insurance. Medical payments coverage allows someone who gets injured on your property to simply submit his or her medical bills directly to your insurance company so the bills can be paid without resorting to a lawsuit. Most policies include about $1,000 to $5,000 worth of this coverage.
2. Do I need an umbrella liability policy?
   If you need a large amount of liability protection, you can purchase a personal umbrella liability policy. An umbrella policy kicks in when you reach the limit on the underlying liability coverage provided by your renters or auto policy. It will also cover you for things such as libel and slander. For about $150 to $300 per year, you can buy a $1 million personal umbrella liability policy. The next million will cost about $75 and $50 for every million after that. Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your renters policy before selling you an umbrella liability policy for $1 million of additional coverage.  

3. Additional Living Expenses

1. If I can’t live in my home after a disaster, will I be covered?  If your home is destroyed by a disaster that your policy covers and you need to live elsewhere, renters insurance provides additional living expenses (ALE). ALE pays for hotel bills, temporary rentals, restaurant meals and other expenses you incur while your home is being repaired or rebuilt. It is important to know out how much coverage you have, and what the limits are. Some companies provide coverage for a set amount of time, while others have a financial cap.

4. Other Coverages

1. I run a business out of my home; do I need supplemental coverage?A typical homeowners or renters policy provides only $2,500 coverage for business equipment which is generally not enough to replace all of the equipment required by even a small home business. You may also need coverage for liability and lost income. Insurance companies differ considerably in the types of business coverages they offer. Some may meet the specific needs of your business, while others may not. So it is wise to shop around for coverage options as well as price.
2. Am I covered if I am traveling or away from home?Most renters polices include what is called off-premises coverage. This means that belongings that are outside of your home are covered against the same disasters listed in your policy. For example, property stolen from your car would be covered. However some companies may limit the amount of off-premises theft to 10 percent of the amount of personal possessions insurance. If you think you need additional off-premises theft coverage—for example if you travel a lot—shop around for a policy that has the insurance protection you need.  

5. Discounts

Insurance companies often offer discounts on renters insurance if you have another policy with them for your car or business. You can also get discounts if you:

• Have a security system
• Use smoke detectors
• Use deadbolt locks
• Have good credit
• Have multiple policies
• Stay with the same insurer
• Are over 55 years old 

Companies offer several types of discounts, but these can vary widely by company and by state, so review your options carefully. Also, some employers and professional associations administer group insurance programs that may offer a better deal than you can get elsewhere

For more information please visit: Insurance Information Institute

Prevent Dog Bites—And a Lawsuit; Average Cost of Dog Bite Claims Is On the Rise

Dog bites accounted for more than one-third of all homeowners insurance liability claim dollars paid out in 2011, costing nearly $479 million, according to the Insurance Information Institute (I.I.I.).State Farm Mutual Automobile Insurance Company, the largest writer of homeowners insurance in the U.S., paid out more than $109 million as a result of its nearly 3,800 dog bite claims in 2011.

An analysis of homeowners insurance data by the I.I.I. found that the average cost paid out for dog bite claims was $29,396 in 2011, up 12.3 percent from $26,166 in 2010. In fact, from 2003 to 2011, the cost of the average dog bite claim increased by 53.4 percent. The number of claims rose 3.3 percent from 15,770 in 2010 to 16,292 in 2011. These increases can be attributed to increased medical costs as well as the size of settlements, judgments and jury awards given to plaintiffs, which have risen well above the rate of inflation in recent years, according to the I.I.I. 

Dog Owner Liability

There are three kinds of law that impose liability on dog owners; not all the laws apply in every state: 

1. Dog-bite statute: The dog owner is automatically liable for any injury or property damage the dog causes, even without provocation.
   
2. “One-bite” rule: In some states, the owner is not held liable for the first bite the dog inflicts. Once an animal has demonstrated vicious behavior, such as biting or otherwise displaying a “vicious propensity,” the owner can be held liable. Some states have moved away from the one-bite rule and hold owners responsible for any injury, regardless of whether the animal has previously bitten someone.
   
3. Negligence laws: The dog owner is liable if the injury occurred because he or she was unreasonably careless (negligent) in controlling the dog.
   

In most states, dog owners are not liable for losses incurred by trespassers who are injured by a dog. However, if a dog owner is considered legally responsible for an injury to a person or property the owner may have to reimburse the injured person for medical bills, lost wages, pain and suffering and property damage.

 

Some people purchase dogs for the purpose of guarding their homes; however, deadbolt locks and home security systems can be safer burglary deterrents, and can often earn you a discount on your insurance premium, the I.I.I noted.

 

How to Protect Yourself—And Your Assets

Homeowners and renters insurance policies typically cover dog bite liability as part of the standard policy’s liability coverage, which can range from a limit of $100,000 to $300,000. If the claim exceeds the policy limit, the dog owner is personally responsible for all damages above that amount, including legal expenses. A liability policy also provides no-fault medical coverage in the event a dog bites a friend or neighbor. This allows for medical bills to be submitted directly to the homeowner’s insurance company. Homeowners can generally get $1,000 to $5,000 worth of this coverage. 

 

Most insurance companies will insure homeowners with dogs. However, once a dog has bitten someone, your insurance company may charge a higher premium or exclude the dog from coverage. Some companies require dog owners to sign liability waivers for dog bites. Others will cover a pet only if the owner takes the dog to classes aimed at modifying its behavior. 

 

A single lawsuit—even if won by the dog owner who is being sued—can end up costing hundreds of thousands of dollars in legal fees and lost wages. The greater a person’s assets, the higher the risk of a costly lawsuit. The personal liability coverage available through a standard homeowners or automobile policy may not be enough. Therefore, the I.I.I. advises homeowners to consider purchasing a personal excess liability policy. Also known as an umbrella liability policy, this protects you against personal liabilities, such as dog bites, that could impact a substantial portion of your assets.

 

Umbrella liability coverage usually ranges from $1 million to $10 million, and covers broad types of liability. Most insurance companies have required minimum amounts of underlying coverage—typically at least $250,000 of protection from your auto policy and $300,000 of protection from your homeowners policy. If you own a boat, you must also have boat insurance with a specified minimum amount of coverage. Personal excess liability insurance is relatively inexpensive. The first $1 million of coverage costs about $150 to $300 per year, the second million about $75, and subsequent increments of $1 million cost about $50 per year.

 

Of course, the best way to protect yourself is to prevent your dog from biting anyone in the first place. The most dangerous dogs are those that fall victim to human shortcomings such as poor training, irresponsible ownership and breeding practices that foster viciousness.

 

National Dog Bite Prevention Week^®  (May 19-25, 2012), is an annual event designed to provide consumers with information on how to be responsible pet owners while increasing awareness of a serious public health issue.

 

To reduce the chances of a dog biting someone, consider taking the following steps: 

• Consult with a professional (e.g., veterinarian, animal behaviorist, or responsible breeder) to learn about suitable breeds of dogs for your household and neighborhood.
• Spend time with a dog before buying or adopting it. Use caution when bringing a dog into a home with an infant or toddler. A dog with a history of aggression is inappropriate in a household with children.
• Be sensitive to cues that a child is fearful of or apprehensive about a dog and, if so, delay acquiring a dog. Never leave infants or young children alone with any dog.
• Have your dog spayed or neutered. Studies show that dogs are three times more likely to bite if they are NOT neutered.
• Socialize your dog so it knows how to act with other people and animals.
• Discourage children from disturbing a dog that is eating or sleeping.
• Play non-aggressive games with your dog, such as “go fetch.” Playing aggressive games like “tug-of-war” can encourage inappropriate behavior.
• Avoid exposing your dog to new situations in which you are unsure of its response.
• Never approach a strange dog and always avoid eye contact with a dog that appears threatening.
• Immediately seek professional advice from veterinarians, animal behaviorists, or responsible breeders if your dog develops aggressive or undesirable behaviors.

Most dogs are friendly, loving members of the family but even normally docile dogs may bite when they are frightened or when protecting their puppies, owners or food. Ultimately, the responsibility for properly training and controlling a dog rests with the owner.

For More Information Visit: Insurance Information Institute

Life Insurance Provides Essential Financial Protection—and It Costs Less Than You Think

 Term life insurance can provide an essential financial protection for families and its comparatively low premiums make buying enough coverage affordable, according to the Insurance Information Institute (I.I.I.).

However, many Americans are dissuaded from buying adequate life insurance because they overestimate how much it will cost them. A recent study by LIMRA and the LIFE Foundation, two industry-supported organizations, surveyed more than 2,000 Americans in January 2012, and found that 20 percent of those who had some life insurance, and 49 percent of the respondents who said they had no life insurance, acknowledged they did not have enough coverage. Most reported they did not obtain more, or any, life insurance because it was “too expensive.”

The survey respondents who admitted they needed more life insurance coverage estimated it would likely cost around $400 a year for a $250,000 term-life insurance policy that would cover a healthy 30-year-old for a term of 20 years. But the real annual premium is closer to $150 in that scenario, according to LIMRA and the LIFE Foundation. Life insurance is also available for purchase by middle-aged and older prospective policyholders.

Term life insurance provides protection for a specific period of time and typically offers the greatest amount of coverage for the lowest initial premium cost. Permanent life insurance, also known as whole life, offers lifelong protection and the ability to accumulate cash value on a tax-deferred basis, but has higher initial premiums than a term policy for the same face amount. The death benefits paid by life insurers are income-tax-free, allowing beneficiaries to replace an income-earner’s income, or a family caregiver’s services.

“Term life insurance can provide beneficiaries with a very cost-effective form of financial protection,” said Michael Barry, vice president, Media Relations, I.I.I.

The face-amount of a life insurance policy—the benefit payable to a policyholder’s beneficiaries should the policyholder die while the policy is in force—should be sufficient to do three things.

1.     Replace Income: Buy enough life insurance so that, when combined with other sources of income, it will replace the income you, as the policyholder, now generate for your beneficiaries, while also financing the expenses your beneficiaries will incur to replace services you provide within the household (e.g., landscaping, tax preparation). Most families who lose their primary income-generator to premature death, and have children under the age of 18, have potential post-death income sources besides life insurance. The most common is Social Security survivors insurance. The maximum Social Security survivors’ monthly income benefits for a surviving spouse, and two children under age 18, could be about $2,400 per month, which would increase to match inflation.

Stay-at-home parents, and those caring full-time for an adult family member, should also consider purchasing life insurance so that their children, or any adults needing full-time care, have the resources to hire professionals who can perform those tasks.

2.     Replace Employer-Provided Benefits: This is income that you receive through your employment but is not part of your wages. It includes things like the employer’s subsidy of your health insurance premium, or the matching contribution to your 401(k) plan, and is often overlooked. The cost of replacing just your health insurance and retirement contributions could be the equivalent of $2,000 per month or more.

3.     Cover Death-Related Expenses: These include the funeral costs, taxes and administrative fees associated with “winding up” an estate and passing property to heirs. At a minimum, these expenses can total upwards of $15,000.

RELATED LINKS

Consumer: Life Insurance; Unclaimed Life Insurance Benefits

Facts and Statistics: Life Insurance

Video: Finding a Lost Life Insurance Policy

THE I.I.I. IS A NONPROFIT, COMMUNICATIONS ORGANIZATION SUPPORTED BY THE INSURANCE INDUSTRY.

Insurance Information Institute, 110 William Street, New York, NY 10038; (212) 346-5500; www.iii.org

For More Information Please Visit: Insurance Information Institute