Insurance is a very important thing to consider. Car insurance vs. life insurance which is more important? You will find the answer in this article.
Life insurance costs half of what you cost when insuring a car. This amount is very much different when you choose a car insurance policy.
Life insurance is very important, especially during an emergency, and we cannot predict it. You, too, have a dream car that you might get with hard work.
When we have a dream car, car insurance is a must. This is the safest way to protect ourselves financially in case of a car breakdown due to theft or an accident.
Coverage is an Important Thing to Consider
Many people hesitate to choose car insurance or life insurance. However, both are equally important but risky.
We can see, in general, how much car and life insurance cost. Car insurance has a limit, and the price should not exceed the purchase price in the showroom.
As for life insurance, there is no limit on human life, and the amount of coverage is based on the person’s income.
Buying insurance without considering the amount we will get is also wrong. Life insurance must provide a large amount, especially for living family members.
Car insurance must also be in the right amount and by the value of your vehicle. The choice of life insurance and car insurance are both very important, but you can set priorities.
Difference Between Car Insurance Vs. Life Insurance
If both are equally important, you can calculate how much premium you have to pay each month.
For more details, here are some differences between life insurance and car insurance that you need to know:
1. Contract Term
The most distinguishing thing between life insurance and auto insurance is the duration of the policy. Life insurance can be regarded as a long-term plan and is responsible to the policyholder to pay monthly, quarterly or annual premiums.
Life insurance also has terms of a premium payment period. For example, 15 to 20 years, and some even take a lifetime.
However, car insurance is usually a short-term plan renewed yearly. In addition, the car’s value is an important coverage in determining the value of insurance.
2. Premium Payment
Life insurance is usually paid periodically. Starting from yearly, quarterly and monthly. On the other hand, vehicle insurance will usually be paid once when a new policy is purchased or renewed.
You usually get car insurance at the showroom when you buy a car. You will also get several vehicle insurance options, especially on transmission issues.
Choose insurance that can provide transmission repair costs. This will protect you from events beyond your control, such as accidents or theft.
3. Insurance Claim
For life insurance, the sum insured must be paid to family members as heirs within the policy term, namely when the policyholder has died.
This sum insured can also be returned to the policy owner when it is due. The important thing to note is when the policyholder has a serious illness.
So after getting a doctor’s diagnosis or the condition of the policy owner is very worrying, you can claim life insurance to treat and perform routine care at the hospital.
This is different from vehicle insurance which can be claimed when an event happens to your car, such as accidents, theft, accidental damage, etc.
Car insurance will be claimed when there is an emergency; for example, if you have an accident and need more treatment.
But you have to pay attention when buying car insurance. Because not all insurance will cover the cost of repairing the car, especially if there is transmission damage, you can take out an insurance policy for routine car maintenance.
Car insurance vs. life insurance is both equally important and a priority. But again, do you want to pay for a life insurance policy at the expense of half your income?
Or do you want to buy car insurance that you must pay for when buying a car that requires extra fees? All the best options are in your hands.