The Four Kinds Of Insurance Everyone Should Get
In life, we have to come to terms with the fact that we can’t always control everything. We don’t know what tomorrow brings, and most definitely, we cannot predict and prevent unexpected things from happening. That is why, more than ever, we all need the protection we can get, at the very least, financially protected. Insurance is all about safeguarding the things we can, financially speaking, should the unexpected happen.
In these short article, we will get straight to the point of presenting the four types of insurance we all should have to get ourselves protected to secure our future:
If you’re already working, getting the basics is a nice place to start. Having life insurance doesn’t only protect your loved ones from your untimely demise, but it is also showing them how much you care about them should it happen. One of the benefits is securing the funeral expenses and other unexpected expenses due to death. But the best of it all is having the ability to provide for your family even after you are gone. This is very important, especially if you are the head of the family. Financial experts suggest that coverage of at least ten times more than your yearly income is the best preparation.
Another type of insurance one should get after the life insurance is a health care plan. Every adult member of the family should be aware that their whole family is just one serious illness away before they all end up in bankruptcy. Okay, maybe not for the millionaires. For many adults, health should mean more and cause them to take charge of it because there is a need to be prepared for future health issues and critical illness. A statistic released by Journal shows that from 2013 to 2016, with more than 900 Americans filed for personal bankruptcy, two out of three bankruptcies were due to medical costs from illness.
LONG-TERM DISABILITY COVERAGE
Long-term disability insurance is insurance prepared in cases of accidents that would result in partial or total disability. Disability is another unexpected event that can change your life and your family’s life. So preparing for such an event is a must. Just like how we are one serious illness away to bankruptcy, so is one accident on a regular day that can lead to a long-term disability. Just like life insurance, this prepares us for the long-haul. Assuming that we always make sure we are physically safe, but if others aren’t, we can’t predict when that will happen or even prevent that from happening. So it is always best to secure what we can, at least financially.
Okay, not all might need to get this. But those with a driver’s license should secure an auto insurance policy. According to the National Safety Council, there are six million car accidents in the U.S., and there are an estimated 38,800 people who die from car accidents alone. A 2009 study also revealed that the number one cause of death for Americans aging 5 to 34 years old is accidents. To add to the loss, over 2 million drivers and passengers received treatment from emergency rooms with a total cost of $70 billion for the year alone. Getting yourself auto insurance helps you cover expenses and protect you against any litigation resulting from the accident.
THE BOTTOM LINE
Most of the financial experts will agree that the four types of insurance, life, health, long-term disability, and auto insurance, are the four basic insurance that one must get themselves covered. If you are currently working or employed, do check with your company or employer in case any of the insurance could already be part of your employee benefits. Otherwise, it is wise to get yourself an appointment with your financial advisor the soonest time possible. Why? Because the best time for you to have any of these insurances should have been yesterday and the next best time is today.
Based on Materials from Investopedia