5 Insurance Policies Everyone Should Have

Insurance is a means of protection from financial loss. Protecting yourself against financial loss is very important. More so, having a solid financial plan and investing in the right policies can go a long way to help safeguard your possessions.

In this article, we shall look at 5 Insurance policies that everyone should have:

1. Long-Term Disability Insurance

The future is so unpredictable, you can be fit and strong today but an unforeseen accident or bad event can render you physically disabled. This is when the need for a Long-Term Disability (LTD) insurance comes in to help you. A lot of people over look this insurance with an excuse that ‘nothing will happen to me’.

However, the ‘nothing will happen to me’ mentality is not a good one and it will be too late for you when the reality dawns on you.

I know a lot of you reading this might be asking that what then is the Long-Term Disability (LTD) Insurance?

Well, we shall answer your question in the most clearest way.

Long-term Disability (LTD) Insurance is the type of insurance policy that an employee can depend on when he or she is unable to work for a long period of time due to an accident, illness or injury. Financial benefits are given to people who have this policy.

This type of insurance coverage sees to it that the employee is given a portion of their income while they are absent from work.

Without this policy, that period of not being able to work to get an income due to illness, accident or injury could make it hard for you to afford basic necessities such as supporting family, paying fees, keeping up with saving goals and retirement goals.

Most long-term disability insurance policies pay out for two, five, or 10 years, or until retirement. You really need to give this a thought today because it can really help to ease pressure during times of uncertainty.

2. Life Insurance

Do you ever ask yourself that if you should die today, how will people who depend on you such as your kids, spouse, parents, or other loved ones survive? If you don’t want them to go through financial crises in event of your demise, then, you must start planning now.

This is where Life Insurance plays a role. When you have a good life insurance policy in place, your loved-ones can enjoy a comfortable lifestyle when you are no more there for them to ask from you. This is a form of security for them in case you leave this earth untimely.

Think about how much you earn a year and also about the number of years you have remaining until retirement from your work. After that, try and invest into a policy where you can pay some amount of money on monthly basis. So that incase you pass away, your loved ones can have something to depend on.

Also, factor in the cost of your burial too— so that if you die, your burial wouldn’t be a burden on your dependants.

3. Health Insurance

Health is wealth. If you should fall sick today, you can’t do without a medical attention. Undeniably, the cost of medical care keeps going up every single day and this is the reason why you must have an insurance to cover your health.

Let us admit, however, that health insurance doesn’t come cheap. But it’s better to pay for it instead of waiting until the need arises. The cost of a surgery when it arises can rack up to a five-figure cost. And getting detained at the hospital can seriously dry up your bank account.

Having said this, we can agree that although the cost of health insurance is expensive, the potential cost of not having one is much higher. Just give it a thought and get a health insurance today.

4. Homeowner’s Insurance

In the event of disaster or accident that befalls your home, Homeowner’s Insurance serves as a financial protection that insures your home’s structures, and you belongings. The very things that Homeowner’s Insurance differs depending on the terms and conditions that the firm with which you are dealing with.

However, most policies cover damage to your house and any permanent structures on your property in case of disasters such as fire outbreak, wind, hail, water damage etc.

This insurance protects belongs such as furniture, appliances, clothing, dishes, among others. In some cases, limited coverage is given to some items such as jewellery which got damaged or stolen in event of the disaster or accident.

One thing you should know for sure is, cost of replacing certain things in your household isn’t easy, hence, the Homeowner’s Insurance could help in easing off the pressure. This policy is for people who currently own a house or are about to get one. Don’t just pray to God that disaster shouldn’t happen. You should also insure your house so that you wouldn’t be found wanting incase of any disaster.

There is a subset of Homeowner’s Insurance which is Renters Insurance. Let us look at it quickly below:

Renters Insurance

The renters insurance is the type of insurance policy that covers theft, water backup damage, certain natural disasters, bodily injuries and more in a rented property. Many people think this type of insurance isn’t necessary, but it is highly recommended for protecting your space and belongings in the event of a covered accident.

5. Automobile Insurance

Even though they are not desirable, accidents are inevitable. No matter how sensibly you ride your car, there is someone out there who is not as sensible as you, hence, they can get you in trouble. So far as you are on the road with an automobile, there’s a possibility that you can get involved in an accident and someone can get injured or their property can get damaged.

When this happens, lawsuits could come flying in every direction which could cost you every penny in your bank account. So in other to be saved of the burden of paying the full cost of damages, Automobile insurance can come in handy by lifting off a chunk of the expenses by a great percentage. In most places in the world, having an automobile insurance is required by law and failure to get one can land you in serious trouble with law enforcement agencies.

Try and get an automobile insurance today if you have an vehicle like car, two-wheeler or commercial vehicle etc.

Summary

Know that in life, certain misfortunes and losses are unavoidable. Don’t be caught wanting. Because when the reality occurs, it could cost you your whole bank account. Instead of waiting for the damage to occur before you start preparing, why don’t you start preparing now? Be prepared by investing in insurance so that your burdens can be lessened in the event of a disaster.

To this end, Automobile, Homeowners, Health, Life, and Long-term disability insurance are some of the insurances that every one must have.