4 Types Of Insurance Every Individual Must Consider!!

Types Of Insurance Every Individual Must Consider

No one can predict an unprecedented time, it can hit our lives anytime. Fortunately, we have ample options to help us face any unexpected situation, something that can provide us complete protection. Insurance is one such option! It does not just safeguard people but also helps them fulfill their needs at uncertain times.  

In the present age, one can find multiple options for both insurance and financial experts to help you pick the best insurance for you. 

At times, people find it really difficult to analyze and decide what/which insurance they should purchase. Choosing the best type as well as the amount of insurance is always based on an individual’s situation. There are a number of aspects that are considered when a person builds his or her insurance portfolio including children, age, lifestyle, and employment benefits.

Following are the main four types of insurance that are suggested by most financial experts:

  • Life Insurance 
  • Health Insurance 
  • Auto Insurance 
  • Long-term disability Insurance 

Life Insurance

Life insurance reaps a number of benefits. Such insurances cover your funeral expenses as well as provide to people you leave behind. 

This is the ultimate option for people who have a family who are dependent on their salary to meet daily expenses. Talking about life insurance, it provides coverage 10 times a person’s yearly income. However, not everyone can afford that number.

When you calculate the total amount of life insurance coverage that you require, you should not only add funeral expenses but also everyday living expenses including mortgage payments, outstanding loans, credit card debt, taxes, child care, and future college costs.

Also Check: Everything You Should Know About Stop-Loss Insurance

Health Insurance

Just a serious illness and a person along with his family will have to deal with bankruptcy. This has been stated by a number of researchers, too. That clearly states the importance of health insurance. One should not just decide to rely on efficient health insurance but also review or increase coverage of any existing insurance. 

With the increasing co-payments, deductibles, as well as dropped coverages, health insurance is nothing less than a luxury now. Fewer and fewer citizens can actually afford it. 

In case, you do not have health insurance provided by your employer, then you should check with trade companies or associations and enquire about group health coverage available. And if you do not consider it as the best option, then you should purchase one of the private health insurance.

Auto Insurance

According to recent research, there are 6 million car accidents (on average) in the United States every year. More than 38,800 people died in car crashes in the year 2019 alone. 

Not every state asks drivers to possess auto insurance, still, most do have certain regulations related to financial responsibility for an accident. And all those states that do ask for insurance carry out random checks of drivers periodically as a proof of insurance. 

So, if you don’t have coverage, then you may have to pay hefty fines as well. These fines differ from state to state. These usually range from the suspension of a person’s license to points on his or her driving record to hefty fines from $500 to $1,000.

Long-Term Disability

When it comes to long-term disability insurance, most people think they will never require it. In simpler words, they consider it good for nothing! But according to stats, 3 out of 10 employees have the high-possibility of becoming disabled and won’t be able to work even before they reach the age of retirement.

We just give importance to health insurance and auto insurance to protect our family and vehicles. But at the same time, there is no harm to ensure a good life when you may not be able to work for weeks, months, or ever again. 

While health insurance covers hospitalization and medical bills, a person still has various other expenses that he or she has to meet on a daily basis, which is normally covered by his or her paycheck. Hence, long-term insurance allows a person to plan a step ahead.

Also Check: Top 5 Types of Insurance for Internet Business

Final Takeaways

So, these were the four types of insurance one should definitely have. In addition to this, you should also check with your employer for these insurance coverages. If they don’t provide the same, then you should acquire quotes from various insurance providers. 

Last but not the least, insurance may be an expensive affair but not having one can be far costlier. Keeping that in mind, purchase the best insurance for yourself at the earliest!

Leave a Comment

Your email address will not be published. Required fields are marked *