Five Insurance Policies that are Beneficial for you and your Household

Insurance policies and programs seem to surround us all wherever we go and no matter what we are doing. Consumers are bombarded with insurance policies for babies, pets, cars, jewelry, and anything else you can imagine. The hard part isn’t finding insurance policies, it is figuring out which ones you actually need.

To get a good idea of which insurance you need, remember that policies that cover your important assets, such as your home and car, your family, and your health, are generally the ones that are worth the investment.

In order to get a better idea of which insurance policies you need, here are a look at five programs that everyone in the United States should consider at one point or another:

Disability Insurance

It is hard for a lot of people to imagine the worst-case scenarios in life, but these are the scenarios that you often have to be prepared for. One unexpected accident could ensure that you are unable to work for years at a time, and that lack of income can easily lead to foreclosures and bankruptcy.

That is where disability insurance comes into play.

The right disability insurance can replace up to 70% of income that one might lose thanks to injury, and many employers actually offer the policy as an optional benefit that employees can pay for. You can also opt to fund a program on your own, but that will usually cost more than the avenue that is connected to an employer.

However, as with any insurance policies, it is important to shop around carefully. These policies can include a lot of hidden terms and be very complicated. If your employer does not offer enough coverage, then it may be the best idea to discuss the issue with independent insurance agents that can point you in the right direction.

Health Insurance

Working out and following a diet plan doesn’t necessarily mean that you are going to avoid all accidents or serious illnesses. Chances are that you are going to require medical help at some point in your life, and that bill is going to be quite hefty. Something such as having a baby without insurance can cost around $10,000, and that is without any other complications. Cancer treatments can easily creep into the million dollar area, and there are a number of other medical problems that can take a huge chunk out of your income.

Once again, your employer will usually offer a group plan, but if not, you will need to look into individual policies. Be ready to accept the fact that individual plans cost more than group plans though, and that coverage often comes with more limitations.

Rental or Homeowner Insurance

There are a number of issues that can arise when renting a property or owning a home of your own. Fires, other accidents, theft, or even natural disasters can tear a home apart, and it can be hard to recover without the help of insurance. Homeowners insurance often covers the entire house and possessions within it, while renters’ insurance will protect all personal belongings within a home.

The best news about these policies is that they are often quite affordable.

When comparing this type of insurance, it is a good idea to find a policy that includes personal liability, which can cover the cost if someone else injures themselves on your property, or if a fire from your home spreads to others. You may also want to consider a perils policy that can cover natural disasters and other special circumstances that are left out of normal insurance policies.

Life Insurance

No matter how young you look or feel, anyone who has people that depend on them should be covered by life insurance. This protects family should anything unexpected arise and will allow beneficiaries to benefit from the policy in a tax free manner.

Sounds simple enough, but the decision between whole life insurance and term policies can be pretty complex. Term policies deal with coverage alone, while whole life policies allow for an investment component as well and can be used up until the age of 100 usually.

In most cases, term policies are less expensive, which make them better, but the decision has to be made on a case to case basis.

Auto Insurance

You may be in love with your brand new, beautiful car, but if one accident can send you into bankruptcy, is it really all worth it?

Each state in the U.S. requires different amounts of auto insurance, but the minimum standards are not usually enough to make a difference. Most drivers definitely want to invest in collision and comprehensive coverage as well, and this is especially true if your car is rather new. If you have a car that is more than ten years old, then often the cost of coverage is more than what the car itself is worth, which means you can sometimes pass.

Insurance surrounds us in this day and age, and that over-absorption can often make many of us start to undervalue insurance and feel like it isn’t worth the cost. However, when it comes to protecting your health and your assets, there are definitely certain insurance policies that need to be considered.

Just be sure you shop around and read over things carefully before signing on the dotted line.