Life is full of challenges and throws various unexpected situation on us. Protecting us from those challenges is the most important step that helps in creating a strong financial security as well. The best way to protect the future’s uncertainty is through insurance. Getting the right kind of insurance will go a long way toward helping you to protect your family, income and your assets. It also safeguards you against the perils of the unknown and help you financially, if you’re unable to pay from your pocket to overcome the loss, such as the medical costs of a serious illness, an accident, or damage through natural disasters.
Insurance is a complex business. Choosing the right kind according to your need may be difficult. There are a number of insurance available and with so many options, it can be difficult to decide which insurance policy you really require. Getting the right insurance policy done always depends upon your present specific situation. Aspects like health condition, family income, lifestyle, children, etc. are a few points to consider when purchasing the insurance portfolio. There are though, five types of insurances that most industry experts recommend: life, health, property, auto and long-term disability. Each one is very important to your financial future security and covers a specific facet of your life.
Life Insurance: This is one of the most important type of insurance policy, if you have a family that is financially dependent on you. If your children, spouse, or parents would face financial hardship after you, life insurance policy will protect them. Think about how much money you earn each year and buy a policy that will replace that money. As per most of the industry experts, a life insurance policy should cover atleast 5 – 10 times of your total annual income to cover all the living expenses, such as child care, education, taxes, loans, etc.
Health Insurance: The increasing expense of medical care is a good reason, enough to purchase a health insurance policy. Even a normal health check-up can result in heavy bills. More serious health issues that require a hospital stay, and a surgery or an operation can increase your financial burden. Especially, in today’s time, where new diseases are emerging and demands expensive treatment, it becomes a must to take a health insurance plan. If you are in the service industry, always check with your employer, whether they are providing the family health insurance coverage or not. If not, it’s must to get one today itself.
Property Insurance: Whether you own a house, have a home loan or a renter’s, you must maintain some type of property insurance that protects your possessions in case of burglary, fire, or any natural disaster. This will save you from the expense of repairing the damage that are too costly or impossible to pay from your pocket. Many people don’t give it much importance, but trust, it’s must. A property policy is hardly $15 – $20 per month and is easily affordable.
Auto Insurance: This insurance is another a must-have. In fact, it is illegal to drive without some form of auto coverage. Accidents can’t be predicted and can result in heavy bills. Having no auto insurance could possibly cost you everything you own, to repair your own damage, to cover against other events like theft, accident or other problems. Purchase an auto insurance plan depending on the value of your vehicle and your region’s or state’s requirement.
Long-term Disability Insurance: This is the one insurance most people do not think about, and hence, rarely purchased. However, according to the Social Security Administration, 3 in 10 labour’s entering the workforce will be unable to work, or will become disabled before they reach the retirement age. This insurance helps when you hurt yourself and are unable to work for an extended period of time or never. It supports the income you would have earned. This type of insurance is mainly depending on your job profile. For example, if you have a kind of administrative or desk job, the insurance premium would be really low. But, if you are in the manufacturing or construction sector, the insurance coverage would be highly expensive.
The five options listed above are all insurances that are essential and everyone should own these insurances. Though getting an insurance policy is costly and certainly takes a lot of your money, but being without it could lead to financial disaster. These policies usually come in a wide variety of forms and sizes and have many different benefits, features, and prices. Purchase them carefully, take expert advice, talk to the agent and read the policies to ensure that you understand the cost and the coverage. Make sure the insurance plan that you take are suitable or meeting your requirements and protects you and the people around you or close to you.
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