Personal Injury Protection (PIP) Insurance

Life insurance and personal injury protection insurance are very different. Personal injury protection may help cover funeral costs if you or your passengers are killed during a car accident. The death benefit from a life insurance policy isn't limited to being killed in a car accident. While a small life insurance policy may only cover funeral expenses, in many cases a life insurance death benefit will help surviving loved ones cover living expenses like paying bills, the mortgage and even for college.

Personal injury protection insurance is designed to help if you are injured and unable to work due to a car accident. Disability insurance coverage is designed to help replace income if an injury or illness prevents you from working.

PIP insurance doesn't cover any damage to your vehicle, your property or someone else's property. It also doesn't cover injuries to other drivers involved in the accident or their passengers. And if you were driving your vehicle for work purposes when the accident took place (or committing a crime) PIP will not typically apply.

Personal injury protection insurance is mandatory in certain states, especially "no fault" states. If it is a requirement in your state, then you must purchase PIP coverage in order to legally drive your vehicle.

If PIP is optional in your state, it can be a good idea to purchase extra coverage—especially if you have a high deductible health plan. Think about your financial situation and your ability to cover medical expenses or replace lost wages if you are injured in an accident and find yourself unable to work.

Northwestern Mutual does not offer personal injury protection insurance. This is the type of coverage you would buy along with your auto insurance.