Insurance, it is something that most people don’t want to talk about. Given the current environment in Washington, the conversation often leads to feelings of fear and dread. But having the right insurance can be critical, because it’s what protects your assets. With that in mind here are five policies that everyone should have; it doesn’t matter if you a multimillionaire or working entry-level at your first job, these policies will help protect you and your family when you most need it.
As you know, car insurance is required by law. You should have a good idea of how much you drive in order to properly assess the coverage options you’ll need to protect you and your passengers. You want to make sure you have enough coverage for yourself, your car, and the people who either drive or ride with you. In addition, make sure you understand what will happen if your car is totaled in an accident. Even though you might be covered, this does not guarantee that you will receive a speedy payment or even a full reimbursement, so it’s important to ask questions and fully understand what your insurance policy covers, no matter what the policy is for.
For most people, their home is the most expensive asset they have, so it makes sense to protect this asset against loss. It doesn’t matter if you are the victim of a fire, burglary, or something else, you want to make sure your home is covered. If not, you will end up owing the bank for a home which is no longer worth what you paid for it and you could lose everything inside your home as well.
This doesn’t mean that all homeowner’s policies are the same. You really need to go over the details of your policy to understand what it covers, how replacement value is determined, and the process by which to collect on a claim. In addition, claims against a homeowner’s policy can be a cumbersome process and you might want to consider retaining an advocate to help you.
It’s also important to remember that you don’t need to own a home to purchase insurance. If you rent, you should also seriously consider buying renters insurance, so that your belongings are protected in the event disaster strikes. And the best part about renters insurance is that it can be very inexpensive, costing as little as $0.40 a day.
Don’t get caught without coverage, make sure you have a homeowner’s policy and know what it covers.
Even though life insurance is probably the most important insurance you can have, a recent survey by Fidelity Investments indicates that fewer than half of all Americans currently have a life insurance policy.
Why is life insurance so important?
Because it helps to protect those who are financially dependent on you if something happens to you. In the unfortunate event that it is needed, the policy will help your children, your spouse, your parents, or your business – to continue in your absence. You want to make sure those most important to you are taken care of in the event that you cannot provide for them.
Politicians in both parties are trying their hardest to make health insurance impossible to manage, but given the high cost of healthcare in the U.S., this is another policy you can’t do without.
Did you know that before Obamacare (also known as the Affordable Care Act) medical costs were the leading cause of bankruptcies? This is a shame as it means that not only is healthcare too expensive, but it also means that many people could not afford insurance, or could not afford enough to cover their bills.
Don’t get caught off guard, make sure you have enough insurance to cover your medical expenses.
Long-Term Disability Insurance
This policy falls under the category of insurance categories that a lot of people have never heard of. However, long-term disability insurance is not some obscure financial trick, it is a policy that will cover disability and care should you be unable to work.
Given the potential loss if someone faces a long-term disability, this is one that should not be overlooked. One helpful tip to keep in mind when choosing a long-term disability policy is that it should provide enough to ensure that you can sustain your current standard of living.
There you have it, five policies that everyone should have. Cover your assets and get insured.