Everyone Should Have These Insurance Policies

We can't always prevent surprises, but there are things we can do to minimize their impact. Insurance can help us protect ourselves financially when the unexpected happens. There are many insurance policies available, and many financial advisors recommend buying them all. For many people, figuring out what type of insurance they need can be difficult.

Most financial advisors recommend that we have all four types of insurance: life, auto, health, and long-term disability.

Life Insurance

The main benefit of life insurance is the ability to pay for your funeral and care for your loved ones. If your family depends on your income to pay for living expenses, you should take this into consideration. Industry experts recommend life insurance that pays ten times your annual salary. However, this is a price many people cannot afford.

When calculating how much life insurance you need, remember to factor in funeral costs and daily living expenses. Mortgage loans, credit card debt, outstanding loans, child care, taxes, and future educational expenses are all examples of such obligations.

Health insurance

According to research, you and your family are statistically within one major illness away from bankruptcy. More than half of those who filed for bankruptcy between 2013 and 2016 had a medical problem, whether it was unpaid expenses, lost wages due to illness, or both.

If you work without health insurance, check with industry groups or associations about group health insurance. If this is not possible, private health insurance must be purchased.

Long Term Disability Insurance

Long-term disability insurance is something most of us think we'll never need. Still, the Social Security Administration reports that one in four people entering the workforce becomes disabled due to some form of accident, preventing them from working until retirement.

Sometimes even financially secure people don't have a contingency plan if they can't return to work. Even if your health insurance covers hospitalization and medical expenses, your day-to-day expenses will continue to be covered by your salary.

Car Insurance

While not all states require motorists to purchase auto insurance, most have established standards for financial responsibility in the event of an accident. States that require insurance regularly conduct random checks on drivers for proof of insurance. To avoid the $500 to $1,000 fine, you must have insurance.

If you don't have auto insurance and are involved in an accident, accident penalties are the last thing you need to worry about. Car accidents can injure you, passengers, and even other drivers, and auto insurance can help pay for medical bills and protect you from lawsuits. Plus, auto insurance can protect you in the event of vandalism, theft, or natural disasters.

As with other types of insurance, the cost of your auto insurance will depend on your specific circumstances. Make sure you look around for insurance and plans to get the best price and see if you qualify for any discounts.