“What insurance do I need?”
As soon as you leave the nest and start earning an income, this is one of the questions that’ll be floating in your head, and for good reason.
You see, life is full of uncertainties. You could be in perfect health today and on a doctor’s table tomorrow. You are here today, tomorrow you could be no more.
Yes, uncertainties are part of life, but there are steps you can take adequately prepare yourself, such as purchasing insurance. However, there are many types of insurance, so you might not know the ones you really need.
In this article, our focus is on necessary insurance.
Health Insurance
Are you one of the 28.5 million Americans who don’t have any form of health insurance?
If you’re, don’t wait until you’re unwell to act. With the cost of healthcare increasing every year, a single illness can quickly wipe out your emergency fund and push you into medical debt. Insuring your health means you won’t have to worry about your healthcare bills.
It’s important to note that most Americans rely on their employer’s group health insurance. This is alright, but keep in mind you might lose coverage if you lose or change jobs. If this happens, be sure to purchase a health policy to keep you covered as you look for another job.
Disability Insurance
Most health insurance policies will pay for your medical expenses in the event that you suffer a disability, but they won’t compensate you for any lost income.
Think about it. If you were to become physically disabled today –perhaps as a result of a car accident – you might not be able to work again for a certain period of time or even for the rest of your life.
Here is where disability insurance comes in.
A short-term disability insurance policy will replace your lost monthly income for a specified period of time, typically six months. A long term policy will replace your income for several years, usually until you turn 65 (retirement age).
Also, if you sustain a personal injury which leads to disability, you might be eligible for compensation, especially if you have personal injury insurance, or the injury occurred as a result of another person’s negligence. Check out this homepage to learn why you will need a personal injury lawyer to help you.
Life Insurance
You probably don’t need life insurance if you’re single and childless. But as soon as you start a family or have people who depend on your income, life insurance becomes a necessity.
What will happen to your dependents financial wellbeing after you pass on? When you have life insurance, they will receive your death benefits (a pre-determined sum of money) from your insurer.
There are two types of life insurance: term life and whole life/permanent.
Term life insurance guarantees death benefits to your beneficiaries if you die within a certain time period. If you outlive the policy, your family won’t receive any benefits.
Whole life insurance lasts a lifetime, as long as you keep paying the premiums. It also offers a cash value component, which makes this policy more attractive.
What Insurance Do I Need? Answered!
To this end, now you know the answer to the question “What insurance do I need?” Health, disability, and life insurance policies are an absolute must. But depending on your specific circumstances, there are other additional policies you might need, such as homeowners insurance if you’re a homeowner.
Keep reading our blog for more financial tips and insight.
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