Four Types Of Insurance Coverage An Individual Needs

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Accidents and unexpected life-events usually can’t be prevented from happening, but we can get protection from them.

Insurance is specially designed to shield us or at least safeguard us financially when certain things happen. As you know insurance has numerous options you can choose from, but it doesn’t mean you need to have them all. 

Purchasing the right amount of coverage and type of plans are always determined by the specific situations. It is difficult to determine the insurance coverage you really need.

However, according to financial experts, these types of insurance are the most recommended. Everyone should all have life, health, auto, and long-term disability.

This article will help you determine what insurance is a must-have. We’re going to explain to you why these four are the essentials coverage everyone needs.

4 Types Of Insurance Everyone Must Have

1. Life Insurance

One of the greatest benefits of life insurance is the ability to cover the final expenses, which are funeral expenses, and provide a death benefit for those loved ones you leave behind. It is must-have insurance especially if you have a family that relies only on your income. Experts say that get a policy that covers ten times your yearly income, but that’s a number not everyone can afford.

When calculating the amount of life insurance you need, remember to add daily living expenses on your estimation, not just the funeral expenses. These daily expenses include mortgage payments, outstanding loans, taxes, child care, and future college expenses. There are two types of life insurance you can choose from traditional whole life and short-term life. If you consider having life insurance, you can seek advice from financial experts or insurance agents to determine which is the best coverage for you.

  2. Health Insurance

According to a study by the American Journal of Public Health in 2019, the majority of Americans who filed for personal bankruptcy are because of medical problems, due to bills, income loss due to illness, or both. Health insurance has become expensive these days, fewer and fewer people can afford it. If you are one of the people who can’t afford it, the best and least expensive option is by participating in your employer’s insurance program.

But sometimes, smaller businesses do not offer this kind of benefit. You can check with trade organizations or associations for possible group health plans if your employer doesn’t offer health insurance benefits. If also this is not an option, You’ll be needing to buy health insurance on your own.

  3. Long-Term Disability

This is the type of insurance everyone thinks they don’t need. The least coverage everyone will acquire. But according to a statistic from the Social Security Administration, 1 out 4 workers entering the workforce will most likely become disable and will be unable to continue to work before they reach the retirement age.

Sometimes, even those workers who have the best insurance life and health policy don’t prepare for that day. 95% of the number of disability accidents illnesses that are not work-related. Meaning, while your health insurance covers most of your medical expenses, you’re still left with those daily living expenses that your paycheck normally covers. Most employers offer both short and long-term disability as part of the benefits package.

  4. Auto Insurance

The number one cause of death for Americans between the age of 5 and 24 was car accidents. There are 38,000 people estimated who died in car crashes in 2019 alone. While not all states require drivers to have auto insurance, most do have regulations regarding financial responsibility in the event of accidents.

The bottom line is most financial experts agree that these four insurance coverage are the four types of insurance everyone must have. If you are one of the people who cannot afford any of this, check your employer’s available coverage. If not, the last option is to get your own coverage.

But at Boise Health & Life Insurance Agency , we recommend obtaining quotes from several insurance carriers to compare them and give you the best plans for you with the right amount. While insuranc e is expensive, not having it could be more costly.

Thank You For Reading!

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