Typically, we won’t be able to prevent unexpected things from occurring, but we can sometimes be protected in the event they do happen. The purpose of insurance is to financially safeguard us in case of certain events occurring. However, there are quite a few different options when it comes to insurance, and while financial experts might say that you need ALL of them, you might not be able to afford them all, so it’s important to determine the types you truly need.
Health Insurance
Most families are a single serious illness away from having to declare bankruptcy. Most bankruptcies are caused by medical issues – due to a loss of income from illness, medical bills, or both combined. Those two sentences alone should be all it takes to give you the incentive to get health insurance or to take a close look at your existing coverage to ensure it’s enough. However, co-payments that are constantly on the rise, deductibles that seem to always be increasing, and dropped coverages have all made health insurance something that’s become a bit of a luxury that many people just can’t afford – regardless of the necessity. Just keep in mind that even minimal health insurance policies are better than none at all, especially in case of emergencies. We had an emergency last year when we were visiting Tennessee, we needed urgent care in Nashville, TN when our youngest child had a case of food poisoning because he ate too many fried chicken pieces. Having insurance gave us peace of mind and we didn’t have to fork out thousands in hospital bills.
Life Insurance
When it comes to this type of insurance, you’ll need to speak to an agent and determine if you need term life insurance vs whole life insurance. The largest benefit of any type of life insurance is that it’ll cover the expenses of your funeral and be able to provide for the loved ones you’ll leave behind. This can be incredibly vital if your family happens to be dependent on the salary you bring in to ensure the bills are paid. It’s recommended that any life insurance policy should cover a minimum of ten times your typical yearly salary. That said, not everyone can afford that.
This is way more important than mobile phone insurance (for those who might need to prioritize). Consider the fact that many families might not have the ability to meet their typical daily expenses within even a month of the death of the primary breadwinner.
Long Term Disability
When it comes to types of insurance that many of us might think we’ll never need, long term disability coverage is one of them. That being said, many employees entering the workforce will end up becoming disabled for one reason or another and won’t be able to work until they’re able to retire. Most of the time, even those insightful people who have made sure they have fantastic health insurance, have built up a nice little nest egg, and have a great life insurance policy won’t think to prepare themselves for a time when they might not be physically able to work. What does long term disability cover? While health insurance is great for medical bills, this type of insurance takes care of your daily expenses that are typically covered by your paycheck. This is why long-term disability insurance is important.
The Bottom Line
Many financial experts agree that long term disability insurance, health, and life insurance are the three most important kinds of insurance anyone can have. When shopping for insurance, you should always check first with your employer to see what they might offer. If they don’t happen to offer the type you’re in search of, go ahead and get quotes from a few different insurance providers. The ones that offer several different areas of coverage might be the ones that have the best rates and can give you discounts for purchasing more than a single type of coverage. Remember that not having insurance can be much more expensive than having it.
