In times of uncertainty, insurance is there to save your days. In fact, it can help you make a solid personal financial plan by protecting your most valuable possessions. From businesses to health and life, there will be many insurance policies that meet your personal needs. But, which insurance to choose? Here is the list of 5 insurance policies everyone should have to help you safeguard your important assets.
#5. Automobile Insurance
If you have a car, having automobile insurance is very much needed. In many places, this type of insurance policy is even required by law. As accidents occur unpredictably, having insurance will provide you with the protection needed. Just imagine you are getting involved in a car accident and are required to pay a large sum of money. This is where insurance will be your savior.
#4. Renters Insurance
Whether it is for businesses or living space, renters should have protection over their possessions. Aside from personal belongings, renter insurance will also help you cover additional living expenses and liability for losses.
Generally speaking, there are two most common types of property coverage, they are renter insurance and homeowner’s insurance. Though these two are different, they also have quite similar components. These include coverage for the dwelling, other structures, personal property, additional living expenses, liability, and medical payments. Since renters don’t need to insure the dwelling or other structures, the coverage for these two components is usually $0.
#3. Health Insurance
Everyone agrees that costs of medical bills are expensive. That makes health insurance one of the 5 insurance policies everyone should have in their financial plan. Forget about drug preps or medical treatments, even consulting your family doctor can lead you to pay hefty bills. According to reports, injuries that need surgery can result in five-figure costs. Some people might think that health insurance can lead to a financial burden. But, the potential cost of skipping this health coverage can be much higher.
#2. Life Insurance
If you have a spouse or kids who depend on you financially, make sure that you consider having life insurance. This kind of insurance policy will help your beloved ones avoid financial hardship if something unexpected happens to you. The death of a breadwinner will lead the family to potentially lose income as well as financial support. Not to mention the burial costs that often burden the family.
#1. Long-Term Disability Insurance
You never know what can happen in the future so it is not bad to prepare yourself. One of the things that can affect your entire future; physically, mentally, and financially is a long-term disability. Unfortunately, you can only enjoy benefits from this kind of insurance is that the disability occurs after you purchase it. Most of the time, there will be a waiting period required before you can claim coverage. Not only that but medical information from a physician is also required. With the insurance, you can cover daily expenses and medical bills even if you have no regular job anymore.