Getting insurance is a very important thing and it should never be taken lightly. Life is very uncertain and we might come across serious illness, death, loss of property or extended medical care at any point of time in our life without any prior warnings. No matter how much we try to be careful we must all agree that accidents happen and thus it is always a wise idea to get insured and be prepared for any unforeseen situations.
Having insurance coverage not only protects you from disasters in your life but also gives you financial security and shields you from huge medical expenditures at the time of emergency. Thus, experts recommend that you put insurance coverage in the top priority list of your financial planning.
Here in this blog, we will give you a brief idea about the four different types of insurance which you must include within your financial planning.
· Life Insurance: In case you have a family depending solely on your overall income, life insurance is a must. Life insurance comes in several types but term life and whole life are two of the most common life insurance available. Term life (temporary) insurance helps in providing coverage for a specified time span which usually ranges in between ten to thirty years. It is a very good option for those who are in need of urgent safety until they attain retirement. On the contrary, the whole life (permanent) insurance policy helps in providing coverage as long as the premium is paid. It’s a better choice if you want your insurance to last your entire life. In general, insurance companies and financial advisors generally recommend to purchase insurance that can last for at least six to ten times of a person’s average annual salary.
· Homeowner Insurance: Remember homeowner insurance are of two different types: Homeowners liability insurance and basic homeowners’ insurance. The homeowner’s liability insurance generally comes into play especially if someone is injured inside your property premises and plans to sue you for that. According to the experts, the homeowners need to have a basic policy that covers all the costs for rebuilding their houses while liability insurance must at least give a coverage of $300,000.
· Car Insurance: In case you are the reason for a car crash and an injury of any third person, there are a good number of chances of you being sued for all the medical expenses and damages. Getting hold of car insurance can be of real help in covering all these overhead costs. It is always recommended to get hold of an insurance policy that consists of liability limits of at least $300,000 per accident, $100,000 for property damage, and another $300,000 per accident.
· Disability Insurance: As suggested by the name, disability insurance helps in protecting your income especially if you get a disability or cannot work any further. You might not need a short-term disability insurance if you have a lot of cash reserve in your hand. However, it is always a recommendation to buy long-term disability insurance in the very first place. There are chances, that your employer provides a group disability insurance, replacing sixty percent of your total income or a maximum of $15000 every month. Apart from that, you can also consider a personal disability policy. This policy can replace up to sixty to sixty-five percent of your average income. Unlike any other employer-sponsored disability policy, self-sponsored ones are portable in nature and can be kept with you no matter wherever you work.
Remember a certified insurance professional is indeed a great way to know why insurance coverage is necessary and all the options that are available with a particular type of insurance. You can always visit our website at The Whitcomb Agency where we even provide an automated quote system so you do not even have to speak to an agent. How cool is that !
Building a perfect and comprehensive financial plan can surely be of great help in mapping out an insurance strategy that can effectively and efficiently cover all your financial goals and needs.