{"id":83562,"date":"2022-12-28T20:13:08","date_gmt":"2022-12-28T20:13:08","guid":{"rendered":"https:\/\/businessyield.com\/?p=83562"},"modified":"2023-01-05T10:16:30","modified_gmt":"2023-01-05T10:16:30","slug":"whats-the-difference-between-car-insurance-and-life-insurance","status":"publish","type":"post","link":"https:\/\/businessyield.com\/insurance\/whats-the-difference-between-car-insurance-and-life-insurance\/","title":{"rendered":"What\u2019s the Difference Between Car Insurance and Life Insurance?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Having adequate insurance is critical to protect yourself and your family. For most people, car and life insurance are two must-have forms of coverage.<\/p>\n\n\n\n
Obviously, car insurance is intended for drivers, while life insurance takes care of your loved ones if you were to pass away. However, what is some other key differences between these two types of coverage?<\/p>\n\n\n\n
All U.S. states require at least some minimum form of auto insurance before an individual can drive on the road. In many cases, this is not just to protect the driver but also other vehicles and public property in case of an accident.<\/p>\n\n\n\n
By contrast, life insurance is not required by law. Though it\u2019s widely accepted as something every adult should have, there are no requirements stating that someone must carry life insurance.<\/p>\n\n\n\n
A life insurance contract can only be paid out once to the insured\u2019s beneficiaries. This is because to trigger the death benefit; the insured must pass away.<\/p>\n\n\n\n
Auto insurance, on the other hand, can pay out multiple times. The insured could be in several accidents and receive multiple payouts from the same provider.<\/p>\n\n\n\n
In both circumstances, these benefits are not considered to be taxable income. They are treated as a specific benefit the insurance company provides in exchange for monthly premiums (paid with taxable income).<\/p>\n\n\n\n
Because the severity of each auto accident can be different, the payouts from car insurance will fluctuate. They could range from a few hundred dollars to the total replacement cost of the vehicle itself, plus medical expenses and the replacement cost of damaged property.<\/p>\n\n\n\n
Meanwhile, life insurance has only one specific benefit. This amount is pre-negotiated and agreed to in the contract so that both parties clearly understand what the beneficiaries will receive.<\/p>\n\n\n\n
Individuals can find term life policies between 5 and 30 years when shopping around for good life insurance quotes<\/a>. Permanent-style policies can last the insured\u2019s lifetime.<\/p>\n\n\n\n By contrast, car insurance policies are much shorter, typically lasting either 6 or 12 months. At the end of this period, the provider and the insured can decide if they want to renew this contract.<\/p>\n\n\n\n