In the modern age, nearly everything is insured, but nothing is written. Who knows what’s going to happen tomorrow, right? Well, if that’s the case, you may be partially wrong. The consequences might be unmatched and unprecedented if anything had to happen. Insurance is known to safeguard us, our financial health, and whatnot. However, there are various insurance options for you. And, guess what? If you visit an insurance professional, they would want you to have everything possible, which might be misleading at first. Besides, buying the right amount and type of insurance is always essential and determined by your situation and condition
Factors like age, children, employment benefits, and lifestyle play a significant role when you’re developing or building your cover portfolio. But, in total, there are four major types that many financial experts suggest we all have: health, life, long-term disability, and auto.
1. Life Insurance
One of the most significant benefits of life insurance is that it can include the potential to cover your funeral and offer for those left behind. This is primarily essential if you have a dependent family who relies on you for bill payments. Industry professionals suggest that such a policy can cover ten times your entire year’s income. However, that is a number not everyone can afford. So, when you estimate the life insurance coverage, don’t just think about the funeral coverage but your daily expenses. These may include outstanding loans, mortgage payments, taxes, credit card debt, future college costs, and child care.
In addition, the term life is one of the policies that tend to cover you for a specific period. Moreover, there are several other differences between the two insurance types. So, you might want to seek some professional guidance and advice to avail full benefits.
2. Health Insurance
If you think about it statistically, you and your family are one severe illness away from bankruptcy. In one of the surveys, more than 850 Americans who filed for such a situation between 2012-2015 had problems from income loss, unpaid bills, or both. These figures should incentivize you to get health coverage or possibly review or increase the current coverage. The least expensive and best option maybe being in an employer’s insurance program.
If you did not know, the annual premium cost in an employer-sponsored health program was close to $7,200 for single coverage and around $20,500 for the entire family.
3. Long-Term Disability Coverage
Long-term disability insurance is one of the types we never appreciate. Moreover, we also think that one would never require such insurance. However, according to some statistics, one in every four workers entering the workforce can become disabled and can never work before reaching the retirement age.
More often than not, even workers who have incredible health coverage with a nice nest egg and a profound insurance policy do not prepare for their day or the months and weeks to follow where they won’t be able to work again. While health insurance pays for medical bills and hospitalization, you are still left with day-to-day expenses that your coverage generally covers
A rough estimate of the accident and illness figures state a different story altogether. Several employers offer short and long-term disability coverage as part of their package. If you did not know, this might be an ideal option to secure affordable disability coverage.
4. Auto Insurance
Auto insurance is one of the most applied-for insurances on the planet. With the automotive industry booming in the current state, it would be fair to say that many have changed on the road. With endless vehicles making their way on the roads, there has been a significant rise in car accidents. In 2018 alone, more than 6.6 million accidents took place. Moreover, while not every state requires drivers to have auto insurance, many comprise financial responsibilities in the accident’s events.
States that require insurance tend to conduct periodic checks of drivers for insurance proofs. So, if you do not have any coverage, the fines do vary from state to state. And, these fines can range from license suspension to points on your record. Not only has it become integral to everyone’s approach, but it has become essential for people to buy auto insurance.
The Bottom Line
Several professionals agree that health, life, auto, and long-term disability coverage are four insurance types one must-have. As a result, always check if your employer has these things covered in your insurance premium. And, if it is the other way around, request them for a brief coverage that covers most of these. Even though insurance is relatively expensive, not buying them can be far more detrimental to your financial health. That is why it is ideal to be on a safer side rather than being sorry in the end.
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