All insurance types that everyone needs
This article will mention about all the insurance types that an average person needs.
The type of insurance policy means that what unfortunate events are covered by that policy. Unfortunate events that happen to you or your dependents that will result in financial compensations from the insurer.
As a result, the following insurance types and the corresponding unfortunate events that they covered are summarized below so that as you begin your adult life or has already been an adult for decades, can use the list as a guidelines in deciding what insurance types to purchase first.
How to decide on the amount of coverage and shopping for the best premiums will be discussed in future articles.
They are classified according to events covered and their main purposes, so as to avoid duplicating protection when doing insurance planning.
1. Life Insurance
Someone said that life is priceless though it is not so in reality. The main objective in spending money to purchase a life insurance is to ensure that your dependents will not suffer from financial hardships should you accidentally die in one way or another.
Under endowment policy, the money is paid to policyholder if the person is still alive on some future date. One thing to know is that not everyone in your family or even you yourself needs life insurance.
2. Health Insurance
For each one of us, with or without dependents, there is a need for some forms of health insurance. This is especially so given the high medical costs now and the rate of medical inflation which is the highest among all, it inflates faster than cost of Ferrari.
The main objective of health insurance is to reduce financial burdens that come from high medical bills in which individuals incur from injury or illness.
Deciding on health insurance purchase is the most complicated of all and one need to be aware of many fine details and conditions.
3. Disability Insurance
This may be needed in addition to health insurance simply because if one become paralyzed from waist down after an accident, health insurance only pays for medical expenses during his stay in hospital and none when he is discharged but still paralyzed and cannot work.
The main objective of disability income insurance is to provide regular income should you lost your job as a result of accident, illness, pregnancy or become disabled and cannot work in previous jobs as a result of physically impaired. Many fine conditions to take note of for this type of insurance, will be discussed later.
4. Home Insurance
For an average person, a house that is used as primary residence is usually his or her single largest investment during his lifetime. As a result, if some hurricanes and arson destroyed everything and nothing is left, then this is not a happy scenario.
This is in addition to the fact that people may downgrade to smaller house after retirement or that after kids have grown up, can rent out a room for rental income. In other words, the lost income potential and no money to buy another house to live should your house is destroyed for no good reasons.
The main objective of home insurance is to provide financial protection should anything unfortunate happens to house owned by you.
5. Automobile Insurance
This is mainly only applicable for people who own cars.
The main objective of having an automobile insurance is to provide all the necessary expenses when you get into accidents when driving own car.
These include bodily injuries to yourself and others, property damaged by you, towing service because car is damaged until cannot drive already and car rental when own car is undergoing repairs.
Related posts:
