If you were to ask a new mother how she felt about vaccination, almost every single one would tell you how much she hates it. It is distressing to see needles pricking into the delicate skins of their newborns. However, they know how important is to protect their children’s health and they choose to go through with it.
Insurance is no different. Paying the premiums may seem unnecessary, especially when your plate is already full. You could have your student loans to repay and your other expenses to manage. If you are married, there are a whole lot of other financial obligations that come into play. However, life is unpredictable and you never know what it can throw at you. The best you can do is protect yourself and your family against any unforeseen circumstances.
As important as it is to invest in insurance, it is equally crucial to find the right one for your needs. Every individual’s needs are different and depend upon other factors such as lifestyle, life stage and employment benefits. Nevertheless, there are four kinds of insurance that you must not miss. These can be your security blankets during your times of need and cover different aspects of your life.
As per the Kaiser Family Foundation, more than half of personal bankruptcies in America start with a medical emergency. Medical costs are sky-rocketing and insurance is the only way to assure quality medical care. No reason is enough to avoid health insurance. Even the fact that you don’t fall sick often or if you follow a healthy lifestyle. Medical emergencies can knock on your doors unannounced and may wipe out your wealth by a few hundred thousand dollars.
Health insurance can be an expensive affair. However, you can opt for an insurance plan offered by your employer. If you work at a smaller set-up that does not offer health insurance, you can explore the option of high-deductible health insurance. Even better is to combine it with a Health Savings Account (HSA). The high-deductible insurance plan will require you to pay lesser premiums. The catch is that you will have to manage most of the expenses on your own. However, your savings in an HSA account can cover up for them. HSA offers additional tax advantages if you were to withdraw your money to pay for medical bills.
Now, this is something that you must do for your family who is dependent on your income. The insurance amount can provide them with a financial cushion and cover for their expenses if something were to happen to you. Experts say that you must sign-up for life insurance that amounts to at least ten times your yearly income. Of course, there are other factors to consider such as your mortgage payments, credit card debt, your children’s college fees, etc.
A Whole Life policy will require you to pay premiums for your entire life whereas a Term Plan is for a stipulated period. You may connect with a financial adviser if you are confused.
It is common knowledge that driving without insurance is a punishable offense by law. However, there are other good reasons why you must consider insuring your car. For instance, if you ever happen to be in an accident, the insurance will cover the damages. Or worse, if you are responsible for the accident, the insurance will cover the expenses of any injuries or damages. If you opt for comprehensive coverage, the policy can cover a more diverse range of damages. This can certainly save you from shelling out a few thousand dollars from your pocket.
Your home is an expensive asset. Any damages to your home can not only wreck you emotionally but it can dent your savings too. The worst thing that could happen is to not be able to live there while the repairs are being done. When selecting home insurance, ensure that your policy contains extended dwelling. This clause will make your insurance company liable to pay for your home damages even if the repairs were to exceed the amount of your policy. Most insurance policies do not protect against floods and earthquakes. Make sure you have these depending upon where you live.