Insurance is an aspect of life that many people do not want to deal with, but it is important that you do. It takes a ton of time, and energy, to get ahead in life, so when you do, it is a wise investment to protect it. That means everything from your car and home to your health and life.
It does not mean you need to get the best policy in every category, but there are 5 insurance policies everyone should have. The levels required will depend upon your financial situation, so the final choice will be up to you. Let’s cover the 5 types of insurance so you can go from there.
- Final Expenses – Unfortunately, all people die. People do not consider it until it is too late, so start planning early. Death benefits can help your loved ones pay for your final expenses and leave some money to pay any bills you have left behind. What is left from that they will be able to use until they can figure out a way to get by without you being around.
- Health Insurance – Medica bills are one of the most common reasons people go into debt. Just a primary visit can take a dent out of your income, but when spending a day or two in the hospital, you will find it is impossible to keep the debt from hitting you hard. That is why it is necessary to have health insurance in place. It will not pay the entire bill, but it will leave you with just enough debt to be manageable.
- Homeowners Insurance – If you are just renting, this policy is for you just as much as those that own their homes. Just a little different terminology is involved. Your belongings have taken a long time to acquire, and some of them may not even be replaceable because it has been handed down through the generations of your family. Homeowners/renter’s insurance will cover all items you have listed up to a set amount. If you own the home, it will also cover the cost of repairing it if something, such as an act of nature, occurs. It is highly suggested that when you go to get home insurance, or any other kind for that matter, you go online to iSelect Australia and compare & save on car, travel, life, home loans & more.
- Auto Insurance – There are four main insurance types, each of which gives you different types of protection. CTP is the required amount of insurance set by the local regulations, while the other three are up to you to decide if you want them added on. The thing to understand here is that if you have an older model that you can easily replace, the insurance you need will be much less than if you drive in a brand-new sports car.
- Disability Insurance – There are two types of disability insurance that you need to look in to. The first is short-term, covering some of your wages for a short time during your temporary disability. The other is long-term disability coverage which protects you past the time limits that the first policy covers. Both are important aspects of any insurance portfolio, especially when your family depends upon your income to survive.
These five insurance policies are ones that every person should have, regardless of their financial position in life. If you are scraping by, you will need the lowest-cost insurance possible until you get caught back up. It may seem like a great idea to skip paying for any insurance because you will never file a claim, which is the biggest mistake that people ending up homeless make. Always have a backup plan for life: having an insurance portfolio that covers you in case life gets rougher than usual.