An insurance plan gives you the chance to be protected from the unknown. From financial loss to health to property damage, you can insure practically anything you own. Depending on the needs of a policyholder, there are several types of insurance plans. There are some policies that every person should consider having.
As you grow older, you realize that some insurance policies are more important for you than others. Have a look at the most crucial ones that you should consider having in place.
Life Insurance
The most valuable thing that you own is your life. Life insurance can do two things for you; protect you while you are alive and protect your family after your death.
You can opt for traditional whole life insurance that protects you for life as long as you keep paying the premiums. Alternatively, you might be interested in a term life plan that only covers you for a certain period. The choice depends on several personal factors, including your age, your occupation, and who your beneficiaries are.
Health Insurance
In 2019, a study published revealed it only takes one serious illness to lead you into bankruptcy. The study showed that 67% of bankruptcies filed were due to medical expenses. Depending on the level of care, a visit to the emergency room can cost you several thousands of dollars if you are not insured.
The least expensive and most common reason for a hospital stay, giving birth, would cost around $3,500 thousand. One of the costliest hospital stays is due to heart conditions and can set you back more than $60,000 thousand.
Knowing these numbers, it should be clear that even minimum health insurance will be better than no insurance at all.
Disability Insurance
All of us have to be prepared that, for any reason, we might not be able to work for an extended period. Some of us can wind up, never being able to work again due to illness or injury. The majority of people who apply for disability insurance get injured outside of the workplace. Most employers do offer long-term disability insurance, but it may not be enough to cover your costs.
In Canada, for instance, disability insurance usually covers anywhere between 60% and 85% of your regular income. Trying to get extra insurance is always costly. For a good reason, the professionals behind GroupEnroll.ca suggest that employers enroll in group insurance, whether it is a disability, health, retirement, or even dental plan. It is not only more affordable for the employer, but also provides tax benefits, shows employees that they are valued, and helps you to hire the top talents when candidates know that their workplace covers them.
Home Insurance
Both homeowners and landlords need to take home insurance seriously. Home insurance protects your home and any extended parts of it, such as a garage, from damage. You should be aware of the 80% rule when it comes to home insurance. In simple terms, this unwritten rule says that insurance will only cover the damages of a house if the policy is equal to at least 80% of the total replacement value of the house. This means that you might not receive enough insurance to cover the damage if your policy does not cover the 80% rule.
House damage, major renovations, and other home improvements are costly, and it is a smart idea to review or renew your house insurance for enough coverage. It is crucial since everyone needs a place to live but especially important for homeowners that live in areas that are prone to severe weather such as storms, hurricanes, or tornadoes.
Tenants also need to consider having renters’ insurance because many landlords make it a requirement to rent. Theft or damage to the property is not on the landlord, so renters insurance will protect you, though most tenants tend to ignore it as long as their landlord does not require it.
Auto Insurance
We won’t state the obvious, but as long as you have a vehicle, auto insurance is a must. Considering the number of accidents that happen every day and how much it costs to repair car damage, it is surprising that many drivers do drive around without car insurance. Don’t be one of them because if you are an uninsured driver involved in an accident, there is a heavy price to pay.
Insurance is all about protection. These mentioned policies protect you and your family. You deserve to have peace of mind knowing that you are protected from unforeseen, unfortunate, or tragic events that turn people’s lives upside down. If you are looking for a financial safety net, the best route to take is to get insured and protect yourself from potential financial hardship.
