Insurances Everyone Should Have
Despite having a stable income and lifestyle, disaster can strike and upend a person's life. Here are insurances everyone should have for protection.
Insurance is based on the principle of transferring financial loss in the event of a catastrophe. While no one wants to speculate about a disaster, having a plan provides the right protection and makes difficult situations manageable. Everyone should be ready for life's uncertainties with the following insurance covers:
The cost of one hospital visit can lead to financial distress. There is nothing worse than facing a life-threatening condition with no insurance coverage. The treatment expenses can drive a person into debt. Therefore, if health insurance is not part of employment benefits, one can look for a policy that suits their needs. It can be a high-deductible plan to cover minor procedures or a comprehensive policy to cover surgeries and chronic illnesses. While most health policies cost an arm and a leg, they give you a sense of security if you fall sick.
Life insurance provides a financial buffer in the event of untimely death. When a breadwinner dies, the family is usually left in disarray with no income to cover their daily costs. Everyone should have life insurance, especially those with loved ones that rely on their income to survive. Even a family with two earners usually has a hard time with the sudden loss of a source of income. This insurance policy can also save one's business partners from selling out part of the business after a partner's death. In the US, the average burial costs range from $7000 to $9000. Lack of a plan to cover the funeral expenses can drive your family into debt. With the various life insurance options, one should consider the amount of support their beneficiaries get when choosing a plan.
Most property owners need homeowners insurance, especially if they have a mortgage. While it is a requirement to get a loan, one can also insure their property from theft and destruction. Property insurance covers the house's physical structure and personal items like furniture and electronics. If a tree falls on the house, your insurance covers the damages to the roof and other items. The insurance policy also covers the home against fire. With the cover, one will not suffer financial loss if the entire structure burns down.
Car insurance is a legal requirement for vehicle owners. While multiple motor vehicle policies exist, one can only choose a suitable cover for their needs. At a minimum, one must have liability coverage for third parties. It saves one from financial distress in case a third party is hit by the vehicle. Collision coverage can also come in handy during a crash. The insurance will pay to fix the car instead of out of pocket costs. Auto insurance is affordable, so it does not make sense to skimp on coverage.
Most Americans have some form of health insurance, but they skip on disability insurance. The purpose of disability insurance is to provide income in case one becomes unfit to work. Accidents happen, and severe injuries can cause disability, limiting one's ability to work. Whether it is a short-term or long-term disability, an insurance cover provides a financial buffer.
Everyone needs insurance to ease their worries in case of unforeseen misfortunes. However, one should know when to splurge on a comprehensive policy and save money with an affordable cover.