Insurance is one of those things we hate to pay for but we are truly blessed to have it when we need it. This includes insurance on our home, automobiles, health, life. As we go through life we have no clue what the day will hold for us or our families but what we can do is give ourselves a little protection to help us be able to build back what may have been damaged or lost. There are so many types of insurance out there, you can insure just about anything these days but what insurance do you really need to have?
Life insurance is a must if you own any debt and or have family that depends upon your salary. You should have enough coverage to pay off debts you own, funeral expenses, final expenses and preferable enough money to help them to reestablish a financial stepping point. Most times having a policy that covers up to ten times your yearly income is a number to consider, any more is excess and less may leave a bit of a hardship. You should consider not only debts and death expenses but future expenses of your family as well. Your spouse may have to pay childcare that you didn’t before and you need to think of that college tuition. There are several types of life insurance on the market but all you need is a good term life policy.
Health insurance is a touchy subject these days. Insurance premiums have sky rocketed in the last few years making it difficult for families to have health insurance. Without health insurance you are at great risk of bankruptcy. It only takes one illness to place you in a huge burden. You need health insurance but you should shop around for the best policy for you if you don’t have one or can’t afford your company’s plan. Having a small policy is better than not having any at all.
Home and auto are two insurance policies you are required to have. You want to be able to replace a car if damaged and repair your home if needed. These two types can be adjusted according to your needs. There are several add on riders you can have in these two policies but you don’t need them all. Shop around for prices and talk to a few agents and let them tell you what you need based off of what you own and where you own them. Home and auto insurance purchased together most times are discounted from your agent.
Long-term care insurance is really something you should look into and as you age purchase. Long-term care insurance is there to help bridge the gap in your finances should you become chronically ill or disabled. The cost of long-term care as increased to upwards of $90,000 a year. You can not rely on Medicare to give you what you need, your coverage is limited and you don’t want to burden your family in paying these crazy costs so look around and keep long-term insurance in mind for the future.