There is no denying the fact that life loves to throw things at us most unexpectedly. As humans, we cannot do anything to stop this from happening. All we can do is take steps to protect ourselves in such incidents. Insurance updates our life circumstances. It gives us a meager measure of protection that becomes the thin line between bankruptcy and living hand to mouth. When a disaster occurs, insurance can provide the financial support needed. So how does one prepare for these situations? What are the insurances one should have?
The article will touch on the three most important kinds of insurance a person should invest in. The topic is critical to expound upon because there are too many options available right now and it can become hard to determine which the best policy is. Remember buying the right insurance is dependent upon the condition. Any plan that you think about should factor in the age, lifestyle, employment benefits, children, etc. The three essential insurance policies that cover an aspect of life are listed below.
- The most important is life insurance. It provides a nest egg and financial nest to the loved ones we leave behind. For a person who is the breadwinner of the home or has people dependent on them, life insurance is fundamental. As per experts, the best life insurance policy is one the covers ‘ten times your yearly income’. The sum the insurance pays out should be able to:
o Provide a cushion of money
o Pay for all existing expenses and debts
o Cover the funeral expenses
The life insurance should be large enough that it covers mortgage payments, credit card bills, college tuition(present or future), all loans and living expenses. The total amount should be enough for the family to re-group after death.
- Health insurance has become important in recent years due to the rising cost. Studies show most families go bankrupt after just one serious illness. Most US citizens end up filing for personal bankruptcy after a health issue. If you have health insurance, then most of the bills and costs of the disease or condition will be paid by it. The most viable option for health insurance is the employer’s program but not all business offer one. Also, if you have a pre-existing condition then finding insurance can be hard. The best possible way to find health insurance that suits you is to shop around.
- The last type of insurance every person should have automobile insurance. Any person who owns a vehicle needs to have insurance. In case of an accident, the insurance will cover damage to your car, other person’s vehicle and any property damage that might have occurred. Without insurance, the car becomes akin to a liability that demands money out of the pocket. Why should one tap into their life savings to pay for fines, repair of a car or medical bills that arise from vehicular accidents when auto insurance will do it for you?