[dropcap]L[/dropcap]ife gives us many unexpected things that we cannot stop from occurring. But we can do something else to give our lives a bit of protection.Insurance means to give us protection to some extent, at least financially. There are many insurance options available, and many financial experts tell us that we need to have these insurance policies in place. Hence, with alot of options, it is difficult for a person to determine what insurance he/she really need. Purchasing the right insurance is always determined by your specific situation. Many factors should be considered while planning insurance policy such as children, age, lifestyle and employment benefits.
Hence financial experts recommends 4 different Insurance policies.
- Life Insurance.
- Health Insurance.
- Long-Term Disability Coverage.
- Auto Insurance.
Life insurance is providing those you leave behind.It is extremely important if you have a family that is dependent on your salary.Some Industry experts suggest that it should cover “20 times of your yearly income.” This money would be enough to cover existing expenses,bills, funeral expenses and also give your family a financial support. That support will help them re-group after your death.
When estimating the amount of life insurance coverage you need not only to cover funeral expenses,but also consider the factor for example mortgage payments,loans, credit cards and taxes, but also child care, and their future college costs (fees etc).
LIMRA, formerly known as the Life Insurance Marketing & Research Association, says that if the primary wage earner dies in a family with dependent children that family will only be able to cover their living expenses for a few months, and four in 10 would have difficulty immediately.
Health Insurance is a type of insurance coverage that pays for medical and surgical expenses that are incurred by the insured.Hence the “insured” is the person who is owner of the health insurance policy; the person with the health insurance coverage.Medical expenses are very high in every country,therefore experts suggest that individual should save some money for health purpose.The best option is to apply or participating in employer insurance plan,many large companies provide this benefit.Even if you have minimal coverage, it can provide some monetary benefit for your hospital stay.
Long-Term Disability Coverage
Most us think we will never need this type of Insurance, as none of us assumes that we will become disabled. Social Security administration record that that every three in 10 workers will become disabled due to work load, and they will be unable to work before they reach the age of retirement. Of the population, 12% are currently disabled in some form, and nearly 50% of those workers are in their working years.
If you are injured in some accident for even three months, and you have not enough savings to cover your living expenses,then what will you do? Or what if you are suffering from a major medical condition such as cancer and were unable to work for over a year.
Many companies offer both short-term and long-term disability coverage as part of their benefits package. This would be the best option for securing affordable disability coverage. If they don’t, seek out a private insurer. If you aren’t sure how much coverage you need, AARP offers a very good disability insurance calculator to help you.
There is over 10-million traffic accidents in the U.S. in 2009 (latest available data) and 33,808 people died in motor vehicle accidents according to data given by the Fatality Analysis Reporting System (FARS). Mostly the cause of death between ages of 5 and 34 were auto accidents. Over 2.3 million drivers and passengers received treatment in emergency rooms in 2009, and the costs of those accidents including deaths and disabling injuries was around $70 billion.
In most cases drivers do not require to have auto insurance, most do have requirements of financial responsibility in the event of an accident. If you do not have saving, the fines can vary by condition of accident and can range from the suspension of your license, to points on your driving record.
If you drive without auto insurance and have an accident, the fines will probably cause financial burden. Your car,is a valuable asset you use every day. If your car is damaged in an accident and you have no auto insurance, you will have no way to replace that vehicle unless you have a large savings account.
If you, a passenger or the other driver is injured in the accident, your auto insurance will pay those expenses, and help guard you against any litigation that might result from the accident. Auto insurance also protects your vehicle against theft, vandalism or a natural disaster such as a tornado or other weather related incidents.
These are few types of Insurance policies,now you should also know about strategies of Insurance policies.