Life is full of uncertainties. Things happen and the least thing that you can do is to give your life a bit of protection. The good news is that you can consider insurance or best policy plans. Insurance is meant to give you and everyone around you some measure of protection – at least financially if a disaster happens.
There are many insurance options that you can consider. You can even turn to financial experts for insights and recommendations but with so many options, it is difficult to come up to a decision based on your situation. There are many factors to think about before making a decision like children, age, lifestyle and even your employment benefits.
To help you make a decision, you should know that there are four insurances that most broker or agent advocate – life, health, auto, and long-term disability. Each policy covers a particular aspect of your life and it can make a difference at the end of the day. Here’s what you need to know about these insurance policies:
Life insurance
Life insurance is important if you are worried about the family you will leave behind. If your family is reliant on your salary to pay for everything, life insurance can provide for them should you depart unexpectedly. Experts are recommending that your life insurance should cover at least ten times your annual income. This will provide enough money to cover the existing expenses including your funeral expenses. It can also provide your family with a financial cushion.
When you estimate the amount of the insurance coverage, you should include not only the funeral expenses but also loans, credit cards and taxes, college costs, childcare, and even mortgage payments. You have to be aware that there are two types of life insurance – traditional whole life and term life. Talk to your broker or agent for more information.
Health insurance
A Harvard study in 2007 revealed that 62% of personal bankruptcies were caused by health problems. Knowing this, you should consider health insurance. If you already have health insurance, you should re-assess to increase your existing coverage. The key here is to shop around although it is difficult to find an affordable health insurance without an employer-sponsored program.
Auto insurance
More and more people die in motor vehicle crashes every year. In fact, the auto accident is considered the number one cause of death for Americans ages 5 to 34. It is important to protect yourself and your car from an accident because after all, your car is one of your most valuable assets. All states do not require auto insurance but if you drive without auto insurance and have an accident, you pay for the damages directly from your pocket.
Long-term disability insurance
Many people do not consider this because they think they will not become disabled. You have to understand that there is a chance that you will become disabled and you will be unable to work before you reach retirement. When this happens, your family will surely suffer if they are heavily reliant on you.
These insurance policies are important to your financial future, should a disaster occur. With this, you should talk to a broker or agent right away.