Insurance Options:
Coverages to NOT Just Think About
Yes, insurance is something we all need. It helps to protect you from a financial pitfall. If you aren’t covered, you have shifted full financial responsibility on yourself. I don’t know about you, but my emergency fund is not big enough to pay for the kinds of emergencies that these policies can easily take care of for me.
You have probably never been schooled on these coverages like you were on savings. I mean, did anyone ever tell you, “Don’t forget to buy insurance!” Probably not. Chances are you mostly see insurance as something you have to have when it comes to your vehicle. But what about your other options? It's time to educate yourself.
Automobile Coverage
You know that auto coverage is for protecting your vehicle in the event of an accident. You are very familiar with that. If an accident happens, you file a claim. Your policy pays for the damages after your deductible. And, not having it is against the law.
Health Coverage
You should be aware that health insurance is typically something you obtain through your employer. Few of us have individual health policies. Health coverage works like this: you pay a co-pay when you see the doctor, and the policy pays the rest of the doctor's bill. Without this type of coverage, you are then responsible for paying your medical bills in full. To read more about what health insurance is and learn how important it is to obtain while your still young, click here.
Life Coverage
Life coverage is familiar to some of you, but most of us don’t know the value of having this type of coverage. For those of you with young children, a life policy is a must. And, the younger you are, the cheaper it typically is. For those of you without young children, find out how a life policy can be beneficial here.There are different types of policies available, depending on your situation. If you’re looking for a policy to pay for your children’s needs in the event of your passing, a simple term policy may be all you need. To be honest, that’s probably the type that most of us will find helpful. However, other options available are whole life, universal life, and variable life.
Long-term Care Coverage
This policy type is not as well known. It covers long-term care expenses, such as living in a nursing home or to those who need in-home assisted living. The younger you are when you purchase it, the cheaper the premiums*. You don’t necessarily need to be sick before you purchase it. As with a life policy, your rates will depend on your health. That said, it is smarter to purchase this type of coverage before an illness occurs.
To read more on what long-term care insurance is and how it works, click here.
Disability Coverage
Did you know that you are far more likely to become disabled than you are to die prematurely? While you often think about buying life, you pretty much forget about disability coverage. Don’t you think it’s smarter to have both?This coverage does exactly what it sounds like it does: it helps you in the event you become disabled and cannot work. It acts as a way of supplementing your income.
Home Coverage
If you own a home and have a mortgage, you are required to carry home owners insurance. The amount of coverage needed depends on the amount of your mortgage. It is also important to note that most home policies don’t include coverage for floods.
Renter’s Coverage
If you don’t own a home and rent instead, you may purchase what is called renters insurance. A renters policy covers the replacement of your personal belongings, just like a home owners policy would. The premium* for this type of coverage depends on the value of your belongings. In recent years, I've purchased $30,000 of coverage for only $9 per month. *Premium – refers to the cost of the policy. Premiums can be stated in monthly, 6-month, or yearly amounts.
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