Life will throw quite a few unexpected events at all of us. Typically, we won’t be able to stop these events from happening, but we can choose to protect ourselves from them. Insurance is one of the ways that we can get a semblance of protection, at least in a financial manner, when these events occur.
There are quite a few different insurance options out there and in an ideal world, we’d have all of them in place. However, with the multitude of options, it can be rather difficult to figure out which ones are truly necessary.
Having the right insurance will always be determined by your specific circumstances. Factors like employment benefits, lifestyle, age, and children are all things you need to take into consideration when you’re planning your specific insurance portfolio.
That all being said, there are a few insurances that are recommended for everyone. Each of these will cover a certain aspect of your life and will be critical for your financial future.
Car insurance
Not all the 50 states require drivers to have insurance coverage for their vehicles, but most of them have requirements when it comes to financial responsibility in case there’s an accident. That said, you can get quite affordable auto insurance quotes for coverage that will suit your needs. Quite a few states will even do random periodic checks of their drivers where proof of insurance is required. If you don’t have any coverage, the fines will vary according to the state and can be as much as $1,000 and be accompanied by points on your license or even the suspension of your license.
Homeowner’s Insurance
When it comes to owning a home, there are many expenses that renters just don’t have. One of these is homeowner’s insurance. Depending on the coverage outlined in the policy, this can cover anything from floods and fires to burglaries, dog bites, falls, and more. In other words, in addition to protecting the investment in your home, it can also protect anyone who enters it.
Health Insurance
Finding health insurance that’s affordable can be difficult, especially if you don’t have a program that’s employer-sponsored or if you happen to have a pre-existing condition. Even then, premium costs for employees can be as much as $4,100 per year. With yearly deductibles, ever-increasing co-payments, and dropped coverage, this is something that’s become a bit of a luxury that fewer and fewer can afford, but even a policy with minimal coverage is better than none at all. The cost for a single day in a hospital can be as much as $3,999. Even if you only have minimal coverage, it’ll provide a bit of monetary cushion for a stay in the hospital.
Life Insurance
The largest benefit in having a life insurance policy is that it’ll provide for the loved ones you’ll leave behind. This can be incredibly important when your family depends on the money you make to pay bills. A good life insurance policy should have a payout of ten times what you make in a year. This amount would provide your family with enough money to cover any existing expenses as well as funeral costs, while also giving them a bit of a financial cushion. Having that cushion will give them a chance to regroup once you’re gone.
Yes, insurance can be expensive, and it’ll definitely take quite a chunk from your budget, but not having it can lead to you being financially ruined. Make sure that you and your family are always protected by having all the insurance coverage that you need. You really can’t afford not to have it.
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