5 Most Essential Insurances Policies to Have For Your Family
Insurance is important for protecting your family in a number of ways. There are many varieties of insurance, but five of them are considered by the experts to be essential for a household to continue functioning after an unplanned adversity.
The Necessity of Health Insurance
Under the law now in effect, Americans who do not purchase health insurance face a fine of $95 or, if less than that amount, 1 percent of their household income. Even those with health insurance may incur large medical bills associated with high deductibles or insufficient coverage. Having the right type of coverage is as important as having health insurance. Insurance experts also emphasize that even with the Affordable Care Act, an estimated 30 million Americans will be without health insurance and will thus have to face the consequences resulting therefrom.
The Benefits of Life Insurance
The importance of life insurance goes beyond providing for the living expenses of your family should you die while you are still the breadwinner. Benefits can be used to cover your home mortgage or other outstanding loans. The amount of insurance to be purchased depends upon such issues as your age and the future needs of your family, although experts agree that the benefits should equal the amount you can expect to earn over a period of eight years. Whole life insurance is a particularly good investment because a portion of the premiums can be “cashed in” later and used for other purposes.
Insurance for Disabilities
A study conducted by the National Association of Insurance Commissioners showed that 56 percent of all American adults could not manage their finances in the event of an incapacitating injury or illness. Unfortunately, fewer than half of all Americans have disability insurance. Workers’ compensation is designed to only provide help for those incapacitated in the course of their employment, which is why you should consider purchasing supplemental disability insurance.
Why Motorists Need Insurance
Most states require motorists to have auto insurance because the average person lacks the resources to directly cover medical and other costs. However, mandatory coverage does not include collision and comprehensive elements that will cover the cost of your own vehicle. Many drivers who thought they had total coverage will therefore find themselves with significant expenses after an accident, which is why it is important to study different policies before purchasing one of them. Alternatively, those without mandatory insurance face fines and the loss of their vehicles should they experience an accident.
Insurance for Your Home
Homeowner’s insurance can help cover damages that result from fires, acts of vandalism and storms, and will even shield you from the effects of legal action should someone be injured on your property. However, many homeowners may not realize that their regular insurance does not cover certain disasters. Supplemental coverage will be needed to pay for damage that results from earthquakes and floods.
It is not possible to anticipate accidents, illnesses, natural disasters and other catastrophic events. However, those who have insurance coverage will be ready for them when they inevitably occur.
Informational credit to www.drayden.com, an Edmonton insurance company.
