Life is much unexpected and you may never know which turn may lead you to which road. It is certainly not possible to dodge all unfortunate situations that might come your way. However, you can take actions and preventive measures in present time that’ll keep you prepared in case of any mishap. Buying insurance policies is one way to keep you prepared to face difficult circumstances. The kind of insurances you require may depend on several factors like your age, children, lifestyle, along with employment benefits being provided to you.
There are however, four kinds of insurances that every one of us should have to keep ourselves and our family financially secured. Every one of the insurance covers a specific arena of our lives and has their own significance.
Types of necessary Insurances
Financial experts advocate the purchase of insurances that covers your life, health, auto, and long term disability.
Life Insurances are not necessary to secure your financial future but that of your family. It provides for a stable financial ground for your family to stand on in the unfortunate situation of your death. This is specifically more important if you have a family which is dependent on your salary to carry out their day to day expenses.
Ideally, a Life Insurance should be able to provide ten times your yearly income to help your family pay for funeral expenses, mortgages, loans, credit card bills, home expenses, etc. You would also want to consider child care expenses and educational expenses if you have children at home.
There are mainly two kinds of Life Insurances; Term insurance and Traditional Whole Life Insurances.
Health Insurances are specifically important if you want to save your family from bankruptcy in case a serious illness decides to knock on your doors. Medical expenses for a single day in hospitals can take away a major portion of your salary if you don’t have any coverage.
Many employers’ programmes allow you to enrol yourself for a health insurance which is the cheapest. However, they might not cover all the medical expenses and you might want to research more to buy an insurance that provides you with most security.
Some medical insurance plans include Medicare, Medicare Advantage plans, Medicare Supplemental Plans, Medicare Prescription drug plans along with many more. You can check and buy medicare supplement plans 2019 that suit your needs the most.
Long-Term Disability Coverage
This one is one of the most important yet the least thought of, of all the kinds of insurances. You might have your medical expenses covered in case you are faced with a serious illness or disabling accident. The question to ask is, do you have you living expenses covered if a situation like this occurs and you won’t have you pay check to pay for mortgage, bills or other daily expenses?
You savings may be able to pay for two or three months of these expenses but you would need more coverage if you are unable to return to work for more than a year or if you are disabled for life.
In some states it is mandatory to have auto insurance if you are driving on the road. Several accidents takes place on the road and the cost of damaged vehicles and attending to injures or emergency conditions can be very high. Auto insurances protect your vehicle if it is damaged in an accident or natural disasters and also pays for a new vehicle in case of theft and vandalism.
It also covers the expenses of treating the injuries of the passengers in the vehicle in case of an accident.