In reality, life will throw you plenty of things. But while we may not be capable of preparing for all these surprises, we can prepare for most of them, at least financially. This is where the insurance comes into place.
This insurance provides some measure of protection financially, should such an event occur. There are numerous insurance options available, several of which, financial experts tells us to have them in place. Here are the four types of insurance every individual must have.
Life insurance: This is the one type of insurance that will benefit your family the best. This is extremely vital especially if you have a family that depends on your earnings. When opting for a life insurance, it should cover at most ten times your yearly income, as it would not only provide sufficient funds to cover existing expenses, funeral expenses and provide your family with the financial cushion it requires. It should also include other payments such as living expenses, loans, credit cards and taxes. It can also include child care and future college costs. This financial cushion will help your family members to stay stable until an alternate solution has been found.
Health insurance: Studies show that statistically, your family is just one serious illness away from bankruptcy. A large number of all personal bankruptcies are caused by health problems, with most of the individuals claiming medical insurance at the start of their illness. By these numbers alone, you should be convinced to obtain health insurance or increase your current coverage. However, the key to finding adequate coverage is to shop around. While businesses do offer this incentive as a part of their business, smaller businesses may or may not offer this benefit. It is also difficult to get this insurance, especially if you have pre – existing condition. Nevertheless, even if you have minimum coverage, it can provide some monetary benefit for your hospital stay.
Long-Term Disability Coverage: This is one insurance that not many individuals would opt for, as not many assume that they will become disabled at some point in their life. However, statistics does indicate that workers who enter the workforce have a higher chance of becoming disabled at some point in their life, even before they reach the age of retirement. In other words, individuals who have become disabled on their job, are still during their working years. The cost of disability insurance is based on several factors which include age, lifestyle and health. At least with this insurance, there will be a guarantee that you will have some income when you can’t work.
Auto Insurance: Auto insurance, also identified as vehicle insurance is one mandatory insurance that every car owner in India must have. With automobile accidents becoming one of the leading causes of death in India, it comes as no surprise why this choice amongst the different types of insurance is mandatory. Additionally, in an automobile accident, you will not only damage your vehicle, which is an asset itself but also have a high risk of harming other individuals.