Types Of Personal Insurance And When You Might Need Them

Insurance is like an airbag. You don’t need it most of the time (heck, it doesn’t even come to mind), but you’d be super glad you have it when you need it. However, instead of slamming your head against the wheel in an emergency, the right insurance plan can save you from crippling debt and a future of financial catastrophe.

If you’re not covered under any insurance policy and have just started snooping around, then congratulations! You’re on the right path. However, you’ll be quick to notice how the insurance industry is flooded with so many plans to the point it becomes overwhelming.

In this article, we’ll take a look at the most important forms of insurance you should consider, that is those under the classification of personal insurance.

Life Insurance

If you already have a family, pay extra attention to this one. But if you’re single, you shouldn’t skimp on this just yet. If you are the insured person of a life insurance policy, your beneficiaries (spouse, children, parent, etc) will receive a lump sum of money in the event of your passing.

The amount of money will depend on the policy. Obviously, the more the premiums, the higher the coverage. It is advised that you opt for coverage that’s at least 10 times your income. This money can be used to pay for your family’s outstanding debt, burial fees, college tuition, mortgage and so on.

Life insurance policies are usually long-term commitments. However, in the event that you need to transfer ownership, life insurance transfer is fairly easy. The two popular kinds of life insurance policies are term life insurance (TLI) and whole life insurance (WLI).

LEARN MORE  13 Things The World Needs To Thank London For

Honestly, we’d suggest getting started with TLI as it is the most affordable option. On average, it costs $229 annually for a 20-year plan with a coverage of $500,000 assuming the insured is 30-years-old. This price skyrockets 10x for WLI!

Health Insurance

Did you know that on average, Americans spend $5000 out of pocket on healthcare alone? Even if you have that much money in emergency savings and take care of your health, you should look for health insurance.

Medical costs rack up quickly, and with surgery, you could be facing a bill worth at least 5 digits excluding the ambulance costs.

Keep in mind that for most health insurance policies, you will need to pay for the deductibles on your own before the policy kicks in. The higher your premiums, the lower your deductibles. So it’s important that you look for a policy that strikes the right balance for your needs.

But before you contact an insurance agent, do look into your HR department if you’re working for a company. Many employers provide their employees with health insurance as part of the employment benefits.

Disability Insurance

One of your most important assets is your ability to work and make a living. So what happens if you become ill or disabled and can’t work?

This is when disability insurance comes into play. This type of personal insurance will pay out a portion of your monthly income if you’re out of work. On average, it’s 60-80% of your monthly income, though it depends on your premiums as well.

However, the term “disabled” can be loosely defined. At times, if you have been let go due to your medical condition but still have the ability to work elsewhere, your policy may not payout. It’s important that you look for a reputable insurance provider that will explain everything you need to know.

LEARN MORE  The Prequel And Sequel To Obamacare In 2015
Total
0
Shares
Previous Article

Boost For Global Response To COVID-19 As Economies Worldwide Formally Sign Up To COVAX Facility

Next Article

How Technology Is Boosting The CBD Industry

Related Posts
Total
0
Share