Insurance Blog

What's All the Fuss About Annuities

Commonly used to fund retirement, annuities are especially popular with retirees and those approaching retirement age. Whether you're already retired or are thinking about retiring, you might consider an annuity to help support the next part of life's journey.

Purchases of the financial contracts between individuals and insurance companies have skyrocketed lately, as buyers have jumped on rising payout rates spurred by multiple interest rate hikes by the Federal Reserve.

What is an Annuity?

You’ve likely heard of annuities. But if you’re like a lot of people, you aren’t sure exactly what they are and how they work.

In simple terms, an annuity is an investment tool that can provide you with secure retirement savings or a source of funding for unexpected expenses. Annuities are typically purchased from an insurance company such as Erie Family Life, through a single, lump-sum payment or through a series of scheduled deposits.

While there are many different types of annuities. When you purchase a fixed rate annuity, the insurance company invests that money in ways that earn interest, until you select a date when the insurance company starts making payments back to you. You can start receiving money from your annuity immediately or you can sock it away on a tax-deferred basis for decades before you start getting the benefits. Those payments typically continue until you or your spouse pass away.

Why Are so Many People Purchasing Annuities?

According to insurance trade group LIMRA, consumers set a record in 2022 by investing $310.6 billion in annuities, 17% more than the previous record set in 2008.

Annuities' recent popularity is due in large part to their stability in the face of high interest rates. These interest rate hikes—which are expected to continue throughout 2023—typically mean higher yields on newly issued bonds, which in turn allows insurers to offer higher-credited rates for new deposits.

Sound confusing? Just know this: while higher interest rates can mean things like higher mortgage rates, a decline in stock values and slower economic growth, they can also be a sign of positive news for annuity buyers.

Want to see the interest rates Erie Family Life is offering? Check out this chart to get an idea.

What Kinds of Annuities Are There?

There are multiple types of annuities that can provide secure retirement savings. But depending on your needs, some annuities might work better than others.

Immediate annuities

These annuities allow the purchaser the ability to receive payments immediately upon deposit. Since payouts can be accessed so quickly, these are a popular choice for soon-to-be retirees.

Because you purchase these annuities with a single payment, they're often referred to as a Single Premium Immediate Annuity (SPIA). Income options can be set up for a specific period of years or over the course of your lifetime.

Deferred annuities

This type has an accumulation phase, during which time the annuity's cash value is building through investments. Payments will then begin sometime in the future. These plans are great for people who want to see their money grow and don't mind waiting a few years.

Deferred annuities can also be purchased with a single lump sum through what is called a Single Premium Deferred Annuity (SPDA). Erie Family Life offers you the choice of 3-, 5- or 7-year guaranteed periods. A guaranteed period is the length of the annuity plan selected, during which time your rate doesn’t change.

Another type of deferred plan, the Flexible Premium Deferred Annuity (FPDA), offers you the ability to contribute through scheduled deposits.

ERIE Knows Annuities

Many insurance companies offer annuities, but by choosing Erie Family Life, you can craft a plan to meet your unique needs.

Fixed-rate annuities

Fixed-rate annuities offer a guaranteed interest rate when you purchase it. This feature makes it an attractive option during times of market volatility and is undoubtedly a big reason why purchases of fixed-rate annuities soared in 2022, reaching $112 billion in sales, more than double the amount in 2021, according to the Life Insurance Marketing and Research Association (LIMRA).

They're also simple to understand: you pay a lump sum and your earnings grow tax deferred until you are ready to use them. You can choose whether you want your retirement income distributed over a certain number of years, over your lifetime or receive interest-only payments.

Annuities from Erie Family Life also offer benefits such as:

No contract fees
Guaranteed rates
Investing with a financially strong company you know and trust

To learn more about annuities, contact an ERIE agent. They can review your situation and determine the best options to help you get the most out of your retirement years.

This web page is not intended as estate planning or tax advice. Please consult a qualified professional advisor.

ERIE® life insurance products and services are provided by Erie Family Life Insurance Company, a member of Erie Insurance Group, and are not available in New York. See individual policies for specific coverage details. Certain terms and limitations may apply. Refer to our disclaimer for additional information.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York). The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of July 2022 and may be changed at any time.

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.

The insurance products and services described in this blog are not offered in all states. ERIE life insurance and annuity products are not available in New York. ERIE Medicare supplement products are not available in the District of Columbia or New York. ERIE long term care products are not available in the District of Columbia and New York.

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

Posted on 26 September 2023 | 9:00 pm

The Ultimate Guide to Company Vehicles: Purchasing, Maintenance and Resale

Business fleets come in many shapes and sizes from two or three sedans to hundreds of commercial delivery trucks. But they all have one thing in common: they meet the essential transportation needs of the companies they serve.

When managed correctly, a fleet of vehicles can help you reduce expenses and improve the efficiency of your business. But if you don’t plan wisely, owning or leasing a fleet can have the opposite effect and will eat away at your bottom line through added ownership and maintenance costs.

Naturally, many business owners can be a little apprehensive about getting into fleet management, especially with the added stressors of the past few years. Car chip shortages are still impacting vehicle inventories and the price of available vehicles has risen, along with interest rates. Not to mention the impact current events have on gas prices.

To help educate you on the basics, we’ve reached out to an expert: ERIE’s own corporate fleet program manager who is responsible for purchasing and maintaining a massive fleet of vehicles that travel more than two million miles each month!

To help put your mind at ease, here are answers to some of the most common questions business owners may have when starting their own fleet.

What Type of Vehicle Should I Choose for My Fleet?

When a business is considering owning a vehicle (or vehicles) for employees to drive, it’s important to consider how it will be used. By assessing the needs of your business, you can narrow down the type of vehicle you should be looking for:

Transporting passengers: If you’ll be using your fleet vehicle to carry people (like offering a shuttle or taxi service), then you’ll probably want a minivan, full-size van or large SUV.
Sales force: When an employee is using a fleet vehicle for personal travel to and from clients, a sedan, compact utility vehicle (CUV) or small SUV is the most economical option.
Service: For jobs where an employee needs to transport tools and supplies (think plumbers and electricians), a full-size van or SUV typically fits the bill.
Delivery: What you’re moving will help you narrow down the right vehicle type, which is likely to be a full-size van, light truck or cargo truck.
Specialized service: If your work requires the use of industry-specific equipment, you’ll need a truck or full-size van that’s outfitted for the job. This could include adding a dump bed to a pickup truck or outfitting a van with shelving and ladder racks. (Learn more about what you should keep in mind when shopping for a pickup truck.)

What Vehicle-Specific Factors Should I Consider?

Once you decide on the type of vehicle, you’ll need to select a specific make, model and trim level. Here are some operational factors you should consider:

Vehicle safety: The safety of your employees is an important consideration when choosing a fleet vehicle. You can view a vehicle’s government safety ratings on the National Highway Traffic Safety Administration (NHTSA) website. The Insurance Institute for Highway Safety (IIHS) is another great source for learning about which vehicles do the best job of protecting people in the most common kinds of crashes: front, side, rollover and rear.
Fuel economy: The fuel efficiency of a vehicle will have a direct impact on your operating costs. But of course, the size of that impact will depend on how many miles your fleet travels each month. You can find a vehicle’s government fuel economy ratings on the manufacturer’s website or through the U.S. Department of Energy. Learn more about how to get better gas mileage.
Terrain ability: Consider what kind of road conditions your employees will be traveling in. If they’ll frequently need to drive off-road or in snowy cold-weather climates, you may want to purchase a vehicle with all-wheel or four-wheel drive.
Maintenance: Before choosing a vehicle, do some research on the manufacturer’s recommended maintenance schedules and take those costs into account. For example, you can run a fleet of sedans without paying for much more than oil changes, tires and brakes. But with larger vehicles and four-wheel drive trucks, parts will generally cost more and service intervals will be more frequent.
Options: Once you settle on a make and model, you’ll need to choose an options package. This may not seem like a big deal, but it can have a huge impact on driver satisfaction. A car with heated leather seats will be a better place for your drivers to spend their days than a base-level vehicle with roll-up windows.

How Should I Pay for My Fleet Vehicles?

When it comes to deciding how to finance your fleet vehicles, there are several options—each of which have their own advantages:

Buying: If you’re looking to buy a car, truck, van or an SUV that your business will own for the long haul, buying is a good option. It can also make sense if you have the capital to purchase the vehicle outright because you can avoid financing costs and recoup your investment when you sell the vehicle.
Leasing: Leasing is a great option if you don’t have the operating capital to buy a vehicle. By signing a lease, you can get into a new car with a relatively low monthly payment. But remember that you’ll be responsible for any mileage overages or vehicle damage when the lease term ends.
Renting: Short-term vehicle rentals are the most expensive option. However, depending on your circumstances, it could also be the best long-term financial move. For example, if you need a heavy-duty truck for a single job or for seasonal use, you can just rent it when you need it instead of paying for it year-round.

How Do I Get the Best Deal on a Fleet Vehicle?

For many business owners, the first thing they look at is the initial cost of purchasing the vehicle. But this approach can be shortsighted. To get the best value out of your fleet vehicle, it’s better to consider the total cost of ownership, also known as the “life cycle cost.” This includes:

Purchase price: How much you pay to buy, lease or rent the vehicle.
Maintenance costs: How much it costs to operate the vehicle over your ownership.
Resale value: How much the vehicle will be worth when you decide to sell it.

By considering these factors, you may find that a more expensive vehicle will actually cost you less to operate because the cheaper car would require more maintenance and will have a lower resale value.

How Do I Compare Potential Fleet Vehicles?

As we outlined above, there are a lot of factors to consider when choosing a fleet vehicle. One mistake many people make is putting too much emphasis on one single criterion. A good way to avoid this is by using a vehicle selection matrix analysis.

This tool allows you to choose your own selection criteria and assign a rating of one (worst) to five (best) for each vehicle you’re considering. When you add up the scores, the vehicles with the highest totals should be at the top of your list.

For example:

How Long Should I Keep My Fleet Vehicle?

As a rule of thumb, it makes sense to sell a fleet vehicle after around 36 to 48 months, or 60,000 to 80,000 miles. This is the sweet spot for remarketing where you’ll recover the most money from selling the car.

During this period, maintenance will also be relatively low (usually limited to oil changes, a set of tires and brakes).

After that, you fall into what is called the “maintenance trough.” This is the period between 80,000 and 120,000 miles where you’ll need to invest a lot of extra money into repairs. If you keep a vehicle for that long, you might as well plan on using it for up to 200,000 miles.

ERIE’s fleet of company vehicles is at its oldest due to car and chip shortages post pandemic, and performing routine maintenance has helped us keep our older vehicles in good condition. We currently have 70 vehicles (of a fleet of over 1,200 vehicles) manufactured in 2018 that we are in the process of replacing with 2023s.

Here’s another tip: resale values of fleet vehicles are often highest in early spring or fall.

What Should I Know About Insuring My Fleet?

Whether you rely on a single car or a large fleet of vehicles, commercial auto insurance is something most businesses need. That’s because an accident can happen to even the most careful driver—and these accidents can cost thousands or even millions of dollars.

Commercial vehicle insurance for both owned and leased cars and trucks protects your business in many important ways. ERIE offers coverage¹ for:

Liability if you’re responsible for harming others or for damaging their vehicles or property.
Damages if your car is damaged or destroyed in an accident or by something other than an accident, such as theft, vandalism or hail.
Uninsured/underinsured motorists if an at-fault driver is unable to pay any or all of the costs owed to you.
Medical costs for you or your passengers’ injuries.

By working with a local ERIE agent, you can customize your policy to meet the specific needs of your business.

Are There Any Other Factors I Should Consider?

Here are a few more things to keep in mind as you begin to build your own business fleet:

Personal use: Consider whether you will let an employee use your fleet vehicle for personal use. This can make sense if you’re providing a car for a traveling salesperson or remote worker. But it can also be considered taxable income by the IRS so do your homework in advance.
Branding: Branded vehicle wraps are a great way to advertise your business. But many employees who use a fleet vehicle for personal use don’t want to travel in a rolling billboard. Generally speaking, branded vehicles are a better option for strictly corporate use.
Driver requirements: A commercial driver’s license is required for vehicles with a gross combined weight rating (GCWR) of 26,001 or more pounds. But your state may have additional license requirements for smaller vehicles weighing more than 10,000 pounds.
Inspections: Your required fleet inspections will depend on the types of vehicles you operate and where you drive them. Cars and SUVs may only need an annual state inspection. Trucks may need to be inspected twice a year, and mounted equipment could require quarterly inspections. If you’re only driving within your state, you’ll deal solely with state regulations. However, if you are traveling interstate or are operating large commercial vehicles, you’ll need to comply with federal Department of Transportation (DOT) guidelines.
Fleet management: Managing a few vehicles is something most business owners can handle on their own. But if you’re building a fleet of several dozen vehicles or more, consider working with a fleet management company or a major leasing company. These firms can arm you with the advice and data you need to effectively manage your fleet. They can also provide added benefits such as safety programs and driver monitoring services which may also lower your insurance rates.

Looking After You

Whether you’re managing a fleet of 2 or 200, ERIE will always be there to help protect you and your business. To learn more about our business auto insurance, or to get a free no-obligation quote, contact a local ERIE agent in your neighborhood.

TAGS: Car Sense

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

Posted on 25 September 2023 | 9:00 pm

Getting the Best Value for Your Auto Insurance Needs

Your Window to Savings

You may be eligible for valuable discounts on your auto policy. We want to make sure you’re getting the best value for your dollar based on the coverage you and your family need, but we need to hear from you to do so. Are you driving less? Or are you adding more drivers? Take a look at the list below to see if you might be eligible for any of these discounts (and then talk to your ERIE Agent).

Less is More. If you’re a claims-free driver and have the record to prove it, check out ERIE’s Diminishing Deductible option available in the ERIE Auto Plus endorsement.

Everyone Deserves a Break. With First Accident Forgiveness, you won’t be penalized the first time you’re at fault in an accident after you’ve been an ERIE Customer for three or more years. (Three-year wait not applicable in all states.)

The More the Merrier. If you insure multiple cars or have multiple policies with ERIE, there could be discounts available.

On the Road Again…or Not. If you plan to store your vehicle for 90 consecutive days or more, ERIE offers a reduced usage discount in most states.

Simply Say Safety. You may be able to save if your car has safety equipment like factory-installed air bags, anti-theft devices and antilock brakes (discount not available in Kentucky).

Just Once. How about if you want to pay your annual premium (premium is just a fancy word for the price of insurance) in one lump sum? There’s a discount for paying in full up front.

Sweet Sixteen? If you have young drivers on your policy or you need to add a driver this year, ask your Agent about any eligible teen driver discounts. Whether your young driver is still living with you, has been with ERIE for consecutive years, or is eligible for a driver training discount, your Agent can help identify savings opportunities.

Questions about discounts? Consult your policy declaration page or talk to your Agent. After all, who doesn’t like to save a little money?

Read more about Understanding Your Auto Coverage:

Common Auto Insurance Coverages
Added Options to Enhance Your Auto Insurance Policy
Visible ERIE "Xtras" Included with Your Auto Policy

Looking for ways to save money on your insurance? You may be eligible for valuable discounts on your auto policy. We want to make sure you’re getting the best value for your dollar based on the coverage you and your family need.

That’s where a coverage review with your agent comes in. Are you driving less? Or are you adding more drivers? These are just a few things that can make you eligible for savings. Take a look at the list below to see if you might be eligible for any of these discounts 1 (and then talk to your ERIE agent).

Your Window to Savings

Less is More. If you’re a claims-free driver and have the record to prove it, check out ERIE’s Diminishing Deductible²option available in the ERIE Auto Plus® endorsement.

Lock in Your Rate. Avoid insurance rate increases, even after a claim, with ERIE Rate Lock^®.³ Your rates won’t change until you make certain changes to your auto insurance policy, like adding or removing a driver or changing your primary residence.

Everyone Deserves a Break. With First Accident Forgiveness, you won’t be penalized and get a surcharge the first time you’re at fault in an accident after you’ve been an ERIE Customer for three or more years.⁴

Customize for Your Needs. The higher your deductible, the lower your premium can be. You can adjust your deductible to fit your specific needs and budget (keep in mind some lenders stipulate how high a deductible can go).

The More the Merrier. If you insure multiple cars or have multiple policies with ERIE, there could be discounts available. Talk to your ERIE agent.

On the Road Again…or Not. If you plan to store your vehicle for 90 consecutive days or more, ERIE offers a reduced usage discount in most states.

Simply Say Safety. You may be able to save if your car has safety equipment like factory-installed air bags, anti-theft devices and anti-lock brakes (anti-lock discount not available in Kentucky).

Just Once. How about if you want to pay your annual premium (premium is just a fancy word for the price of insurance) in one lump sum? There’s a discount for paying in full up front.

Young Drivers. Unmarried drivers under 21 who reside with their parents may be eligible for additional savings on their car insurance.⁵

Savings Are Just a Conversation Away

Every penny counts – we get that! And that’s why we want to ensure you're getting the best value for every dollar spent on your insurance. If you have questions regarding specific discounts or would like to see different pricing options, we encourage you to talk to your ERIE agent. After all, who doesn’t like to save a little money?

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

Posted on 19 September 2023 | 9:00 pm

Fact or Fiction? Debunking Deer Collisions

Watching deer in their natural habitat can be an enjoyable, peaceful experience. But encountering one on a roadway? That’s a different story.

If it’s happened to you… you’re not alone. More than 1.5 million drivers are involved in deer collisions each year, according to the National Highway Traffic Safety Administration, causing nearly $1 billion in vehicle damage. (Learn how auto insurance can help you if you hit a deer.)

We’ve already shared tips on how toavoid hitting a deer if one jumps in front of your car. But what about those common bits of folklore that everyone seems to have heard about deer collisions? Is there any truth to those?

Watching deer in their natural habitat can be an enjoyable, peaceful experience. But encountering one on a roadway? That’s a different story.

6 Common Myths About Deer

Myth: Deer are more active at sunrise and sunset.

Status: True.

While deer can—and do—cross the road at all hours of the day, dusk and dawn are their peak hours of activity. Deer are “crepuscular” animals. That’s a fancy way of saying they move the most during twilight. So if you’re driving as the sun is rising or coming home from work at dusk… be especially careful.

Myth: You’re more likely to hit a deer in the fall.

Status: True.

Nearly half of all deer/vehicle collisions happen between October and December. Not coincidentally, deer mating season and peak hunting days also fall between these months. As deer are running from hunters or looking for a mate… odds are they’ll cross a road somewhere in between. They're just one of four fall driving hazards we address in another blog story.

Myth: Deer whistles can prevent collisions.

Status: False.

Deer whistles attach to your vehicle and are said to emit a frequency that alerts deer of your presence and send them running away. Despite anecdotal evidence – we all probably know someone who swears by their deer whistle! – no credible study has proven them to be effective. One research study at the University of Georgia found that no matter how loud or high-pitched the whistle, the sound isn’t enough to alter the deer’s behavior. Tried-and-tested technology like crash avoidance features might give you more (or… less?) bang for your buck.

Myth: Hitting a deer isn’t that dangerous.

Status: False.

Nobody wants to face the repair costs of a deer collision. But in many instances, these crashes cause more than just inconvenience. In 2016, the IIHS recorded 189 deaths from collisions with animals. It’s important to note that the most serious injuries occur when a vehicle leaves the roadway—so know when to swerve, and when to stay in your lane.

Myth: More deer are present at “deer crossing” signs.

Status: True.

If you encounter a deer crossing sign, it’s there for a reason. Signs are installed in areas with high deer populations and a history of deer collisions. Additional factors that can lead to crashes, such as road conditions and visibility, also inform where deer crossing signs are placed. (And before anyone asks: The signs, of course, are for people to read… not the deer.)

Myth: If I hit a deer, I can take home the meat.

Status: It depends.

If you have a taste for venison, you may be tempted to make the best of an unfortunate situation by taking the unlucky animal home with you. But first, check with the authorities – it’s usually the body that regulates hunting in your state, such as the Game Commission or the Fish and Wildlife Division. (Here’s a helpful list, organized by state.) In some states you’re free to take the animal, but not before filing a police report or applying for a special permit or tag. In other states, it’s downright illegal.

Does My Auto Insurance Cover Hitting a Deer?

Deer-vehicle collisions are covered under the comprehensive portion of your auto insurance, which is an optional coverage you can choose to add on. (Learn more about understanding your auto policy.) An insurance professional like a local Erie Insurance agent can help you customize an auto insurance package that fits your needs and budget. Find a local agent in your neighborhood or get a free online quote.

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

Posted on 12 September 2023 | 9:00 pm

Life Insurance: A Family Conversation on Financial Security

You care enough about your family to protect their financial security with life insurance.

But, as crucial as that coverage is, it’s equally important to make sure your loved ones know what your insurance does for your family and how it works — well in advance of the day it matters most. Everyone should grasp the purpose, function and (most importantly) benefits of their protection.

So, how does a family discuss an issue as fundamentally uncomfortable as life insurance benefits? Here are some suggestions to make that conversation more productive and less distressing.

Discuss Goals

One of your first objectives should be to get everyone talking positively.

Happiness, ambition and hope are great subjects to frame family continuity. One of the easiest ways to do that is to talk about life goals:

What kinds of careers or important pursuits do your loved ones envision?
What educational, professional or personal achievements matter most?
What positive steps can be taken to anticipate and overcome likely obstacles?

By starting the conversation off on a positive note, you establish a “can-do” spirit that keeps everyone focused on life over the horizon.

Examine Benefits

Once you’ve established that the future is bright and that it’s well worth protecting, discuss the practical benefits of your insurance coverage.

Life insurance isn’t just about money in general; it’s about safeguarding your family’s dreams and ambitions by removing common, avoidable barriers to success. Benefits that provide that protection often include:

Mortgage protection. If you have a mortgage on your home, life insurance can ensure that your family isn't burdened with large mortgage payments or even worse, a forced sale of the family home.
Student loan protection. If you've cosigned for your child's student loans, your life insurance policy could protect them from being solely responsible for repayment in case of your untimely demise.
Funeral cost coverage. Funeral costs can be significant. A life insurance policy can ensure that these expenses are covered, reducing financial stress during a very difficult time.

By associating benefits with common goals, it becomes easier to focus on the practical, nuts-and-bolts aspects of your coverage than on the dispiriting reason it’s needed in the first place.

Be Practical

There are simple, practical aspects to insurance coverage that everyone in the family should know, and discussing them before they’re needed is a great way to get everyone on board.

Administrative information. Ensure that your family is aware of where your life insurance documents are stored. This could be in a safety deposit box, a secure filing cabinet, or digitally stored in a secure location. Are there combinations, passwords or technology (e.g. two-factor authentication) involved?
How-to information. Make sure your family understands the claim process. Each insurer will have a different process, so take the time to explain it. Having this information handy will make the process easier for your loved ones when the time comes.
Important contact information. Provide the details of the insurance company, your policy number and your agent or broker. This information is crucial when it comes time to file a claim.

Know Your Options

Exploring and understanding your life insurance options is an important part of establishing the kind of security your family needs. Make sure you’ve discussed your coverage options with your agent as you plan the protection you’ll be discussing with your family.

Here are a couple of important decisions to consider.

Term and Permanent

Life insurance policies generally fall into two categories: term and permanent.

Term insurance is like renting insurance for a specific period (the term). It's straightforward and generally less expensive. If you pass away within the term, the death benefit is paid out to your beneficiaries.

Permanent insurance, on the other hand, provides lifelong coverage and has an investment component. It is often used for estate planning purposes and tends to be more expensive due to its lifetime coverage and cash value accumulation.

Make sure you understand both categories by discussing them with your agent.

Locking in Your Rate with a Guaranteed Insurability Option Rider

One way to ensure you can increase your life insurance in the future without further evidence of insurability is by adding a Guaranteed Insurability Option (GIO)¹ rider to your policy. This option allows you to lock in your rate now and provides the opportunity to purchase additional coverage at specified intervals — often when it would be otherwise unavailable.

Since there are often age and benefit limits to GIOs, it’s crucial to discuss this option with your agent early in your insurance planning.

Enduring Peace of Mind

You’re not just insuring your life; you’re insuring your family’s future and peace of mind. Understanding and communication are key components to a fruitful family discussion of life insurance, so don't delay these important conversations.

Contact your local ERIE agent today to protect what matters most with affordable and flexible life insurance coverage.

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions.

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

Posted on 12 September 2023 | 9:00 pm

What's All the Fuss About Annuities

What is an Annuity?

Why Are so Many People Purchasing Annuities?

What Kinds of Annuities Are There?

Immediate annuities

Deferred annuities

ERIE Knows Annuities

Fixed-rate annuities

The Ultimate Guide to Company Vehicles: Purchasing, Maintenance and Resale

What Type of Vehicle Should I Choose for My Fleet?

What Vehicle-Specific Factors Should I Consider?

How Should I Pay for My Fleet Vehicles?

How Do I Get the Best Deal on a Fleet Vehicle?

How Do I Compare Potential Fleet Vehicles?

How Long Should I Keep My Fleet Vehicle?

What Should I Know About Insuring My Fleet?

Are There Any Other Factors I Should Consider?

Looking After You

Getting the Best Value for Your Auto Insurance Needs

Your Window to Savings

Your Window to Savings

Savings Are Just a Conversation Away

Fact or Fiction? Debunking Deer Collisions

6 Common Myths About Deer

Myth: Deer are more active at sunrise and sunset.

Myth: You’re more likely to hit a deer in the fall.

Myth: Deer whistles can prevent collisions.

Myth: Hitting a deer isn’t that dangerous.

Myth: More deer are present at “deer crossing” signs.

Myth: If I hit a deer, I can take home the meat.

Does My Auto Insurance Cover Hitting a Deer?

Life Insurance: A Family Conversation on Financial Security

Discuss Goals

Examine Benefits

Be Practical

Know Your Options

Term and Permanent

Locking in Your Rate with a Guaranteed Insurability Option Rider

Enduring Peace of Mind

Request a Quote

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