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4 Insurance Policies You Should Consider Buying

Personal_Finance / Insurance May 06, 2021 - 04:16 AM GMT

By: Steve_Barker


The word insurance tends to scare off a lot of people. Most say that it’s a scam that drains you out of your money. On the other hand, other people say that the amount you spend for insurance isn’t equal to what you get for investing in it. However, insurance is definitely something worth spending your money on.

To say that insurance is a scam is a big mistake. True enough, there are some insurance policies and packages that aren’t worth it. Some are literal scams too. It all really depends on who you get your insurance from and what types of insurance you get for yourself or for your belongings.

It’s very easy to discern a good insurance plan from another. You just need to do a little research on the provider and the plan itself. You can also check through the contract thoroughly to check for any discrepancies. With the right research, you’ll eventually be able to find the right insurance providers for yourself and your families.

Now comes a more important matter. What type of insurance policies you should get? There are some who would tell you to get all of the insurance policies you can but in reality, some are worth investing in more than others. Here are four essential insurance policies you should buy.

Life Insurance

If the name itself isn’t enough to keep you assured that it’s a great insurance policy, then we’ll go over what this insurance is and why it’s so important.

Life insurance is definitely not about your life. That’s the common misconception about it. It’s more about the life of those you leave behind. This makes life insurance one of the most important policies to get especially for breadwinners in the family. It can be greatly debilitating for them to lose the breadwinner so life insurance is one way of helping them out one last time.

There are many benefits that come with life insurance. For one, life insurance can cover the costs that can come during your funeral. If you’ve yet to see how much a funeral is worth, you might be surprised to know that it can cost thousands of dollars. To be more precise, it can be around $8,000 to $10,000.

Considering the fact that your family has just lost a breadwinner, such a heavy expense is something that might affect them financially for a long time. While loans for funerals are available, they can only prolong the problems of your family too. As such, it’s better to pay for the costs through life insurance.

Another benefit is that your family or beneficiaries are going to get cash from the insurance provider. This depends on the contract and the premium you pay for the insurance as well. This cash is going to be of big help to the people you leave behind.

As it is more about who you leave behind and less about you, that makes life insurance one of the best insurance policies to get. There are also a few benefits that can affect you directly when you get life insurance. Some providers offer better benefits than others too.
The common benefit of life insurance is that over time, your premium is going to accumulate a cash amount that you can loan later on. This is good for emergency situations where you really need the cash. The loan also comes with very flexible payment terms and fair interest rates.

Another benefit is that some life insurance policies actually give you cash in the form of dividends over some time. This is a good benefit to have as the funds can help you find a source of cash once you already retire. However, keep in mind that the dividends are usually the same amount of the premium you pay.

Now, there are many types of life insurance that you can get. One that we can suggest is no physical term life insurance. This is the form of life insurance that doesn’t require a physical exam. This means that if you aren’t confident about the status of your health, this is one of the best policies to get.

In most cases, a medical exam is required if you want to avail life insurance. Most insurance providers won’t accept you as a policyholder if they think your health is a problem. Current and pre-existing conditions can affect your bid for life insurance.

If you plan on getting other insurance plans, then you need to do so when you are still young and healthy. Policy providers are most likely going to decline bids for insurance for those with a bad medical history. That doesn’t mean that you can’t get one if you have a bad medical history though.

Some life insurance providers are more lenient when it comes to this. Still, it’s best to get life insurance as early as possible.

Health Insurance

You’ve probably heard this before but all it takes is one serious medical emergency to get you from comfortable living to bankruptcy. That statement isn’t meant to scare, it’s meant to get you aware of the fact that the cost of healthcare is no laughing matter. It can drain you of your savings account, and more if you aren’t prepared.

The simplest way to understand health insurance is that it is an insurance policy that covers your medical expenses whenever you need it. Most commonly, health insurance covers your surgical, medical needs, prescription drugs, and in some policies, your dental health too.

The common misconception is that health insurance covers all of your expenses. Sadly, the policy will only cover a set value of your medical expenses. It all depends on your contract and what your policy provider actually covers. In many cases, health insurance can actually take off around 30% on your medical bills.

The best use of health insurance is during medical emergencies. Understandably, not everyone has the savings to cover them whenever they get into an accident or if they contract a disease. Health insurance providers can help shoulder the costs for you immediately,

Health insurance is one of the easiest policies to get. This is mostly offered as a benefit by many private companies. If you work for a private company and you check your deductibles, you’ll see that they take off an amount for your health insurance. What’s great is that your company shoulders a part of the fee for you.

If you work for a smaller company or if you do freelance, there’s a chance that you don’t have access to insurance like other private employees. It can be more expensive for them to help shoulder your insurance.

This means you’ll have to get insurance on your own. The good news is that it isn’t hard to get health insurance. There aren't a lot of hindrances that can prevent you from getting one. In fact, it’s often better to work on your health insurance on your own since you’ll be free to choose your package. Whereas companies don’t let you choose health insurance policies.

When looking for health insurance, try to look for ones that have the most coverage and those that have affordable premiums for you. Ideally, a good package should include basic medical needs as well as plans for your dental health too.

Some insurance packages also cover your family too. These tend to be more expensive than your regular insurance plan but it’s worth it considering how expensive healthcare costs can be.

Home Insurance

Health and life insurance cover you and your family’s needs which are related to death and illnesses. Simply put, those are insurance policies that cover your and their life as well. However, it’s worth noting that it’s not just your health and life that you need to be covered. Your property needs to be covered too.

Of all the property-related insurance policies out there, one that we recommend getting is home insurance. To put it simply, home insurance is a policy that protects your home from various factors such as natural disasters, fires, and even robberies and break-ins.

Depending on what type of insurance you get, home insurance usually entitles you to a sum dependent on your home and property’s value in case it gets destroyed in a natural disaster or fire. It’s an important form of insurance to get as losing your home and property is one of the most financially debilitating events that can happen to you.

While policy providers won’t cover all of the expenses needed to get your house back to the way it was, they can give you a great headstart as you try to recover from the event. Some policy providers even give you a temporary home to move to just in case your house becomes uninhabitable because of damage.

Home insurance also covers for the expenses caused by lost property or damage. What this means is that your insurance provider can also pay for the items on your home. Again, this all depends on the type of home insurance that you get.

This form of insurance policy is important because you can never really know what can happen to your home. The thing about accidents and break-ins is that they can happen when you least expect it. Unless you are confident that you can immediately replace all of your belongings, then it is a must to get your home insured.

When getting home insurance, make sure to update your policy provider about any changes or renovations made to your home. These can affect your payout once the inevitable happens.
Home insurance is also important if you are running a business related to real estate and properties. This includes rental homes and apartments. Any damages made by your tenant can be covered by your insurance provider which is why this is essential as well.

Auto Insurance

Last but not the least, we’ll cover auto insurance. You might already know how expensive car repairs may be. Auto insurance helps protect you from those heavy repair costs that come after you get into an accident. It’s one of the most common insurance policies you’ll come across.

Auto insurance also covers the expenses that happen when your car gets stolen. Some insurance companies are obligated to provide you with a new car of an equal amount. Either that or they’ll help shoulder the part of the costs when you get a new car.

If you see yourself using your car on a regular basis, then it’s a must that you get auto insurance. The good news is that auto insurance is one of the easiest insurance plans you can get. In fact, car salesmen will offer you auto insurance as you are making the purchase. Make sure to not skip out on these as these are actually well worth it.

Another benefit to auto insurance is that it isn’t limited to expenses made for your car. It can also help cover medical responsibilities as well. This means you can get a chunk off of your medical bill if you get into a car accident. It’s not just the medical bills it will cover, it can also cover lost wages and rehabilitation costs as well.

Accidents can be very costly for many reasons. For starters, you won’t be able to get back to work because of the injuries. This means you won’t be able to make any money to pay off the medical bills. As such, it’s imperative that you get insurance packages that include medical coverage as well.

Getting all of these four insurance policies can be hefty on your budget monthly. However, when you factor in all of the benefits that you get in return, it’s actually worth it. Insurance policies are there to help you out during those bad and unexpected days. In most cases, then can also prevent deeper financial trouble as well.

Don’t see insurance as an extra expense on your end. Instead, see it as an investment for your future and stability so that you fully see its worth.

By Steve Barker

© 2021 Copyright Steve Barker - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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