You cannot afford to miss out on this policy if you are in a marriage or have kids, but this does not mean that single people cannot benefit from having this type of policy. Life insurance is designed to help your children or spouse to meet their financial needs when you’re gone. In case of an individual who is married and has left behind a family, life insurance steps in to cater to the lost income, settle the existing debts if any, and meet your children’s financial needs, which may include paying off their college fees among other demands. If you’re not yet married, life insurance will step in to cater for your burial expenses and settle any debts that you may have left behind.
If you’re yet to buy a life insurance policy, you should first check with your employer. Most employers offer their employees a basic group life insurance as an incentive while others allow their employees to buy additional coverage at reasonable rates. Besides the employer’s plans, numerous insurance companies offer the right coverage at reasonable prices.
You have to decide the type of policy which is best for you between term and permanent life insurance. Term life insurance provides coverage for a specified period ranging from 5-30 years.
Permanent life insurance is intended to cover you throughout your life, provided the premiums are paid. The great thing about this type of coverage is that you can borrow against the amount accumulated. Term life insurance is more flexible and cost-effective when compared to permanent life insurance, but if you aim to invest, then permanent coverage is the best option for you.
Most types of life insurance consider the age and health status of an individual when determining whether one qualifies for coverage or not. Shopping for this policy when young and healthy is advantageous since the amount to be paid as premiums will be lower even though one has to be prepared for a medical exam as it is one of the application requirements. If you’re a bit older and your health is deteriorating, you’re likely to pay higher premiums, or the insurance company can decline your application. If this is the case, then you don’t have to worry since there are a few life insurance companies that exempt clients from medical exams in their term life policies.
The only concern with such policies is that they attract higher premiums since you’re only required to complete a short health questionnaire.
Auto insurance is the other type of policy that should top your list. It’s a requirement to have basic auto insurance in most countries to cover liability. It’s also a requirement to add collision coverage to your policy if you’re to finance your car with a loan. In case of an accident, liability insurance caters to the damages caused to the other vehicle, whereas the collision policy caters to the damage caused to your vehicle.
Having an auto insurance policy is very crucial as it provides coverage for the replacement of expensive assets. Automobiles are costly, and once damaged, they can be hard to replace or repair, especially if there is no cover. Auto insurance is more than covering the car alone.
Automotive insurance policies are designed to cover the injuries sustained or the demise of another person in an accident that you’re liable for. Apart from paying the medical expenses for individuals who perished in an accident, automotive insurance pays off the legal defense expenses. It also caters for your medical costs and that of your passengers irrespective of who is liable for the accident.
Health insurance is one of the plans you should prioritize. Without good health, there is little you can do since you may not be able to exploit your potential in fullness, and also you may not enjoy life as you wish. Without a health insurance plan, you may find it difficult to access treatment in both private and public hospitals, especially if large sums of money are required for the treatment. Having a health insurance plan in place can help you to avoid this since sickness is something that happens suddenly.
Most employers are now extending health insurance benefits to their employees. If you’re yet to enroll in any health insurance plan, it’s advisable to first check with your employer as the rates are quite affordable. If you have a spouse, the two of you can be covered in one of the employer’s plans. If the two of you are employed, and the employers avail the health insurance plan, you can weigh up the two plans to find out which one is the best to use.
In case your employer does not extend health insurance benefits, or you’re your own business, you’ll have to find alternative insurance options. You can reach out to insurers in person to find out the available coverage.
Homeowners insurance, also known as property insurance, is a type of insurance policy you cannot miss out, especially when you have a mortgage. Lending institutions require the assets to be insured if the property is to be bought using the borrowed money. Most people value their home since it’s the most significant asset they have and thus the need to protect it.
If you’ve rented home rather than owning it, it is necessary to have a renter’s insurance policy. Your possessions inside the building are valuable, and when added up, they can represent a substantial amount of money. You should have a policy in place to cover various risks such as fire, theft, and many others, which can lead to the loss of property. Property and renter’s insurance policies can act as relief in case someone sustains injuries while at the place of your residence.
Before you settle on a particular type of home insurance, it’s crucial to contrast coverage as well as premiums. Home insurance does not cover incidents that occur as a result of natural disasters such as floods. If you reside in a region that’s susceptible to such disasters, it’s necessary to add an extra natural disaster coverage to your policy.