How Insurance Policies Protect the Future of Your Family
By now you realise that life is not smooth-sailing and sometimes it will throw unexpected things. There is nothing you can do to keep things from happening but at least you can choose to give your family a bit of protection. This is possible with insurance. Insurance will provide a guarantee of compensation for a particular loss, damage, illness or death.
Insurance is your way of protecting the future of your family. There are many insurance options available. You can consider Policy Pedia – Insurance Agents to tell you about your options and what is the best in your situation. When choosing, always factor in children, age, employment benefits, and lifestyle. A good insurance agent will recommend four insurances – life, health, long-term disability, and auto. Here’s how each policy protects the future of your family:
Life insurance will provide for your family when you leave
Life insurance is important because it will give you peace of mind for when you suddenly depart. It is crucial to get this type of insurance especially if your family is heavily reliant on your salary to pay for the bills. Experts are suggesting that when planning for a life insurance policy, it should cover at least ten times your annual income.
This will cover funeral expenses, mortgage payments, loans, credit cards and taxes, college costs and even childcare. You have to know that there are two types of life insurance – Whole Life and Term Life. Whole Life is a policy that you pay until you die while Term Life is a policy that has a set amount of time. In deciding, you should consider factors like your age, occupation and your dependents.
Health insurance will protect you from personal bankruptcy
According to a study by Harvard in 2007, they found out that 62% of personal bankruptcies were caused by health problems. Knowing this, it is crucial that you consider health insurance. If you already have one, at least evaluate if you need to increase it.
The best option is to participate in your employer’s insurance program. However, because of the rising co-payments and yearly deductibles, health insurance has become a luxury. Regardless, a minimal policy is better than nothing.
Long-term disability will cover your living expenses when injured
Do not assume that you will not become disabled. It is always prudent to be prepared. With this, you should consider long-term disability coverage. This will cover your living expenses when you are injured or you are unable to work for many months or a year. Health insurance can help you with hospital bills but the expenses incurred after can be shouldered by long-term disability coverage.
Auto insurance will pay for the expenses of the injured
Accidents happen and it will give your family peace of mind knowing that you are covered. The auto insurance will pay for the expenses of the injured. On top of that, it will help you against litigation that might arise from that accident.
To understand these things thoroughly, you should seek out an insurance agent or broker. Insurance is expensive and it will certainly take out a chunk out of your budget but without it, the family will be in financial ruin.