June 18, 2010
Ask an expert
Q: I’m young and haven’t started a family yet, but lots of people have said I should buy life insurance. Why?
John Neighbarger, ERIE Agent
John W. Neighbarger Insurance Agency
A: The younger you are, the more your life insurance can do for you, especially if you choose universal life insurance. This type of policy gives you valuable insurance coverage that will stay with you over the years and it can provide a way to accumulate money.
The interest accumulated with universal life insurance is tax-free until withdrawal, so, up to certain limits, you can accumulate cash quickly. The younger you are when you purchase the policy, the more time there is for the cash value to grow. The cash you accumulate can come in handy later in life to fund an education, supplement your retirement, purchase property, etc.*
Also, with universal life insurance, you can adjust the amount of insurance to meet your changing needs. If you purchase a policy with a $50,000 benefit now, you can apply for a face amount increase if your needs change—say, when you start a family.
If you’re interested in protecting your financial future, especially if you hope to have a family some day, now really is the best time to buy. You’ll pay lower premiums by purchasing life insurance at a younger age, your insurability will be guaranteed should you later develop a health condition, and the cash value has the most time to grow. You also have the most flexible options.
Talk to your Agent. He or she can give you more details and help you select an ER IE Family Life** product that’s right for you.
*Surrender charges may apply
**Erie Family Life insurance not available in New York
Have a question for an insurance expert? Let us know. E-mail us at firstname.lastname@example.org or send us a letter.
Stay Cool by the PoolBe safe when splashing away
According to the Association of Pool and Spa Professionals, more than 8.3 million households have an in-ground or above-ground pool. It’s a number that’s been steadily rising since 2002. If you’re one of the new pool owners, here are a few precautions to take, courtesy of the Insurance Information Institute.
Call your ERIE Agent. Let your Agent know you have a pool, since it will increase your liability risk. Most homeowners policies include liability protection. Pool owners, however, may want to consider increasing the amount.
Put fencing around the pool area. This keeps people from using the pool without yourknowledge. It may also be required in some municipalities.
Never leave small children unsupervised—even for a few seconds. And, never leave toys or floats in the pool when not in use as they may prove to be a deadly temptation for toddlers trying to reach them.
Keep children away from pool filters. These and other mechanical devices that have a suction force may injure children or prevent them from surfacing. In case of an emergency, know how to shut off these devices and clearly post this information.
Check the pool area regularly for debris. Glass bottles and toys can be potential hazards. Also, keep CD players, radios and other electrical devices away from pools or nearby wet surfaces.
Post emergency numbers near the phone. And, keep a first aid kit, ring buoys and reaching poles near the pool. You may also want to consider taking basic first aid and CPR training
More tips from the Insurance Information Institute.
Sprinkle or Monsoon?Which summer storm is most likely to blow through your neighborhood?
No one expected Hurricane Ike to hit Ohio in 2008. But hit it did, leaving more than 13,000 ERIE Customers with damage to their homes and cars. ERIE answered the call to service by helping Customers recover from their losses. (After all, that’s the whole reason we provide insurance.)
Luckily, though, most storms are predictable. Sometimes, you can even take steps to prevent damage, saving yourself money, headaches and heartaches down the road.
To see what storms are most likely in your area and how you can prevent damage, go to disastersafety.org. Type in your ZIP code for information customized to your region.