Life is unpredictable. We cannot see our future. But one thing that we can do is to safeguard ourselves and our valuable assets from unexpected events. Insurance is a tool for doing that. There are many types of insurance policies in the market and if you ask some financial advisor they will recommend you to take all of them. It is important to choose the correct insurance policies according to your needs. Insurance gives us financial protection from untimely death, accidents, damage of properties, etc. You need to ensure those assets which have a high impact on your life. There are five types of insurance policies everyone should have in your financial portfolio which we will discuss in this article.
5 Insurance Policies Everyone Should Have!
#1: Health insurance Policy
Health insurance is a written agreement between you and the insurance company in which you are applying for health insurance. It is a type of insurance policy that takes care of your medical bills by covering your medical and surgical expenses. It either reimburses the expense that you have paid to cure your illness or pays the money directly in the bank account to the service provider.
Health care costs are up by manifold in the recent past. Due to irregular eating and living an unhealthy lifestyle, there is a rise in health issues. The higher cost of health care could leave any family bankrupt. This is a case in most American families whose loved ones are suffering from some type of physical problems. So it is better to take health insurance cover. It will secure hard-earned money you have gained over time and also it will boost your confidence to live life to the fullest.
There are different types of health insurance policies available in the financial market. You should analyze all facilities the policy is going to offer before you one. Some of the nice companies in the USA are Guardian life, Assurity, etc.
#2: Critical Illness Insurance Policy
All of us have seen people suffering from a serious illness. The effects of critical illness can be financially tough to handle. The medical expenses keep growing in this situation. If someone in your family is suffering from this type of illness the other members get affected too. You need constant care. It affects their work-life too. Besides the medical expenses, there are other types of expenses like mortgage payment, insurance payment, household needs, etc.
Critical illness insurance is designed to help you out of these situations. It provides you the money when you need it the most. If you want to avoid this type of policy you can go for Long Term Disability Insurance. It provides you enough coverage so that you can enjoy your current lifestyle even if you are not working.
#3: Life Insurance policy
The Life insurance policy usually protects the persons who are financially dependent on you. If you die your parents, spouse and your children who are financially dependent on you will face financial hardship. So to protect them you should have a life insurance plan in your portfolio. It should be a top priority. Life Insurance gives your family a chance to pay off the debts and helps them to meet the household expenses. It helps your family to maintain their lifestyle if something happens to you.
There are different types of life insurance like whole life insurance, term life insurance, etc. you should choose the type of plan that is suitable for you. The life insurance policy gives you a sense of security and peace of mind that when you won’t be around your family will still be able to meet their expenses. So this type of policy is really necessary for everyone.
#4: Homeowner’s Insurance Policy
Having your own house gives you social status. People spend a lump sum from their hard-earned money to build a house. Due to some natural calamities like earthquakes, cyclone if your house gets damaged or destroyed completely it will be hard for you to build another one. So it is better to buy a house insurance policy so that if something happens to your property you will get back the money from the insurance company.
A standard homeowner’s insurance policy generally insures home along with the things that are kept inside the home. It also provides for additional living expenses while you are repairing your home. So this type of policy is also a good choice for the portfolio.
#5: Automobile Insurance Policy
Almost every American owns a car. Automobile insurance is needed by law in most places of the states. So car Automobile insurance is something you should not avoid. If you are involved in some accident and someone gets injured or someone’s property gets damaged then the insurance will cover you. If you don’t have insurance then you are at risk.
Good automobile insurance can help with vehicle towing, repairs, and replacements and it also covers the damages to the other party. So if you buy automobile insurance it should cover those conditions. If you purchase only the minimum required coverage it saves very little money and puts everything on your risk only.
There are many insurance companies in the market with different types of policies and different types of features. So you should check all the policies before taking one. Taking advice from a financial advisor is always a good choice. Choose the policies according to your need. Read the policy and talk to the agent to be sure about the coverage and the cost. Don’t purchase any policy until and unless you are sure about it.
So, this was all about the insurance policies everyone should have. If you want to know more feel free to comment in our comment box below.