Tuesday, January 22, 2019

10 Key Insurance Policies - Part 1

The aim of insurance is to protect you against the unexpected. We know that we will all die eventually, but we do not know when, so we have life insurance to provide for our dependents after we are gone. We are not aware of when we will fall sick, be injured in an accident, have our homes damaged by natural disasters and so on. Life is full of uncertainties and it is natural to try to have as much protection as possible against what could happen. The problem is that resources are limited and trying to have insurance against every possibility may not be financially viable.Every individual and family’s insurance needs are different. That being said, there are some types of coverage that are essential for just about everyone. These are the key policies that should always be in place. The specifics may differ from person to person, but an insurance broker will be able to give you focused guidance that will ensure you get the coverages you really need.

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     ·  Disability insurance: Studies show that about one-third of Americans will suffer, from some form of disability during their lifetime that will prevent them from working and earning an income. The effect this can have on a family is often not fully appreciated. The fact is that, almost half of all home foreclosures are caused by people being disabled and unable to work and pay off their mortgages. Disability insurance is the only protection you have if your earning ability is affected by sickness or injury.

     ·  Long term care insurance: Americans may be healthier than ever before and may live longer, but it is important to keep in mind that over half of the population will require some type of long-term care, such as an extended stay in a nursing home or having an in-house nurse after the age of 65. At the minimum, a 12 month stay in a nursing home will cost $60,000. It will probably be much more, depending on the amount of care required. Not having this coverage could wipe out your savings and retirement portfolio. What happens to you, and your spouse, then?

     ·  Health insurance: A major illness or a serious accident could leave you, or a family member, with medical bills running into hundreds of thousands of dollars. This could not only wipe out your savings, but also bankrupt you. Health insurance is the only protection you have against the ever-rising cost of medical care.

     ·  Umbrella insurance: It is not only the rich who are sued for damages. The world we live in is becoming increasingly litigious and even the smallest of issues can result in claims for damages. Many people make the grave mistake of presuming that because their assets are limited, it is not worthwhile for anyone to sue them. They forget that their future income may be included in any damages awarded. Umbrella Insurance is the best form of protection at a lower cost.

     ·  Term life insurance: Death could strike anyone at any time. Term life insurance is a cost effective way to ensure that your dependents do not suffer financially after your death and that their futures will remain secure.

The next part of this blog will look at the other essential insurance coverages.

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