Many people are reluctant to buy insurance products due to different reasons. These include having no extra money for the monthly or yearly premiums. Another reason is the lack of knowledge about insurance and its benefits. Most of them don’t understand how insurance works and the impact it can have on their lives or future. What they don’t know is that there are different types of insurance and the coverage varies accordingly.
The right insurance is generally determined by specific factors, which include age, lifestyle, the presence or absence of children, and employment benefits. But there are four types of insurance that most financial experts say everyone should have. It’s important to choose the best insurance plan that suits your needs and financial capabilities. A financial planner or adviser can recommend a plan based on your personal circumstances.
Here are your primary insurance options:
1. Health Insurance
A Harvard study has revealed that in 2007, 62 percent of all personal bankruptcy cases in the United States were caused by health problems. Of those who filed for bankruptcy, 78 percent had medical insurance. These numbers should remind you of the importance of getting a health insurance from that family member or friend working with a health insurance FMO (Field Marketing Organization). You may also want to consider increasing your current coverage if you think it is not enough.
2. Life Insurance
Life insurance is meant to provide for the needs of those you leave behind. Singles and people who have no child may not need this type of insurance, but it is extremely important for most people, especially those who have a family that depends on their income to pay the bills. Life insurance can help your loved one’s offset your lost income if you are the primary breadwinner. It ensures that they can get something in case you pass away.
3. Disability Insurance
Disability insurance works like life insurance in a way that it reimburses you for lost income. The difference is that it covers for those times that you are not able to work. Since one-third of all Americans get disabled at some point, it makes good financial sense to get a disability insurance regardless if you are single or the sole breadwinner of your family.
This type of insurance provides financial aid and coverage in case you sustain a debilitating injury or you get disabled from an accident or sickness. The inclusions are based on the type of plan or coverage you get.
4. Auto Insurance
Thousands of traffic incidents occur each year. Your car is a valuable asset and if it is damaged and you have no auto insurance, you may have no way to replace the vehicle unless you have a large amount in your savings accounts. Auto insurance can help pay for the expenses incurred because of the car accident, protect you from potential litigation, and provide protection or coverage in case of theft, vandalism, or natural disaster.
Preparing for the future should be everyone’s goal. Death is inevitable and accidents or injuries can happen anytime. You can gain peace of mind if you have insurance coverage.