Insurance is one of those topics that people do not want to discuss. No one really wants to think about when they will die, getting sued, or becoming disabled. But, the people who are hurt the most are our family members when you do not have the proper insurance plans and coverages. Unfortunately, there are many types of insurance that you need to consider owning. Below are some of the most critical ones.
Three Types Of Insurance You Need
Term Life Insurance
I’m a huge fan of term life insurance over whole life insurance. This, in and of itself, is enough for an entire book let alone a paragraph. Permanent insurance such as whole life insurance policies are good for people who have a permanent need for insurance. The problem is that hardly anyone has a permanent need for insurance. As we grow older, our children grow up and graduate from college. As we age, we pay off our mortgage and other debts which also greatly reduce the need for insurance. If we retire, our spouses are typically our covered by our retirement investments through their lives. Though term life insurance rates vary between providers, a large amount of insurance for a low cost premium right when we need the coverage the most, in our younger years. One place to place to check quotes is Accuterm Life Insurance.
One out of three Americans will become disabled at some time in their working lives. You should have enough money set aside in a fully funded emergency fund of three to six months of living expenses. But, what happens to you if you are injured and cannot work for longer than six months? Your emergency fund would be tapped out. You need long term disability insurance that picks up after you exhaust your emergency fund. Short term disability insurance can be quite pricey, but your costs in insurance premiums will dramatically decrease if you purchase a policy that starts six months after you become injured.
Nothing scares me more than getting sued. When you have teenage kids who start to drive or when you start to accumulate assets, the threat of a lawsuit grows every day. Having umbrella insurance can help protect you again lawsuits that can quickly dwarf your liability coverage that you have with your car insurance coverage or homeowners insurance. Many car insurance policies limit the amount of hospital bills that they will pay. For example, some car insurance policies will only pay $100,000 in medical bills per person and up to a cap of $400,000 for total injuries in one car. You can quickly drain this amount of money if you hit a car that is full of people and someone is seriously hurt. You could be on the hook for damages that eclipse your insurance if you do not own umbrella insurance. Many people can purchase $1 million coverages for a few hundred dollars per year.
Do not let the unpleasant topic dissuade you from protecting yourself and your family with the right types and amounts of insurance. You need to protect your income if someone depends on you and that income to survive and live their day to day lives. You need to protect your income and either replace it with insurance or keep it coming in. That is why we need disability insurance. If you can’t keep the income coming in, you have to protect it. And, today we live in a far too litigious society that is quick to sue each other. You need umbrella insurance in order to protect yourself. There are many different types of insurance that you need to be aware of. While it is not a pleasant topic, it is one that can save you a lot of money in the long run.