Life is unpredictable, and it will throw your way the worst when you least expect. While none of us has control over what happens when you step out of your door, when driving, working, sleeping, or just living, it’s important to be prepared. Insurance is one of the best emergency preparedness item, but you need to make sure that you have the right insurance. There’s nothing more painful than buying the kind of insurance you don’t need. Given the financial protection that you get from having the right insurance policy and the fact that insurance policies are expensive, you need to make sure that you’re buying the insurance you need.
Here are four of the insurance policies you should buy to protect yourself and your loved ones.
Spending a single day in the hospital easily racks up a bill of about $2000 in most parts of the country which means that not having insurance is a very bad idea, especially if you can afford it. To avoid facing the dreaded medical bankruptcy should things fail to work for you, look for an insurance policy. A Harvard study revealed that about 67% of bankruptcies reported in 2007 resulted from health problems.
Life insurance is important when it comes to financial security upon your death or retirement. While most people don’t think much into life insurance policies, will and other things that affect the welfare of your loved ones upon your demise, it’s important to buy a life insurance policy. When buying a life insurance policy, make sure it covers ten times your current annual income. By suggesting an amount as high as this, you are sure that the life insurance money will cover any existing expenses, funeral expenses, and some money will be left behind to serve as your family’s financial cushion.
Before buying life insurance, you also need to factor in the cost of expenses like mortgage payments, credit cards, loans, taxes, and the cost of education for your children.
You can buy a whole life policy or a term life policy depending on whether you wish to pay your insurance premiums until you die or if you want the policy to mature after a specific number of years.
You need an auto insurance policy to own and drive a car anywhere. If yours is a commercial vehicle, make sure you buy the appropriate commercial car insurance. Note that you should buy an insurance cover that offers more than the minimum level of protection.
Accidents happen all the time, and whether you get hurt or someone else gets hurt because of you, you must have insurance to ensure that the related costs are covered. You might not be able to pay out of pocket hence the need for auto insurance.
Long-term disability coverage
You might think that you’ll never need this policy and years later you might not need it, but as we mentioned above, life is unpredictable, and things could turn against you faster than you can blink. You might be disabled from an accident before you retire, and this policy will come in handy then.