When is insurance prudent? In one word? Now.
What Is Insurance?
Insurance is protection. Insurance is a way to maintain your family’s current lifestyle should something disastrous happen to you or your property.
What Kinds Of Insurance Are There?
You can insure almost anything or anyone. The key is to not be over insured while at the same time making sure you have enough insurance to protect yourself.
Some common types of insurance:
Medical insurance. Insurance to help pay for medical expenses.
Automobile insurance. Insurance against vehicle damage and liability.
Life insurance. A lump sum of money paid to your beneficiary upon your death.
Debt insurance. Insurance taken out on a loan which would see the loan paid in full should you die.
Liability insurance. Insurance that would pay an injured party should they be injured on your property.
Home insurance. Insurance against damage to your home.
Disability insurance. Insurance you would collect should you be unable to work due to an injury.
How Much Insurance Should I Get?
Everybody should carry medical insurance. Life is unpredictable and at some point you may find yourself suddenly in the hospital or on medication. It won’t take long for the bills to start rolling in after that. Medical insurance may make these bills more manageable.
If you drive a vehicle you have auto insurance. The premiums are generally based on your age, type and year of the vehicle and your driving record.
*You can reduce the premiums by increasing your deductible.
Life insurance – as depressing as it may be, give this one serious thought. You should carry enough life insurance to pay off any debts you owe, plus pay for your funeral and leave money for your spouse and family to life off of.
Insuring your loans is optional. It’s a way to make sure your loan is paid off should you die suddenly. Banks and lending institutes often push this insurance but you can refuse it if you have enough life insurance to cover the debt.
Liability insurance is standard on both vehicle and home insurance policies. The question is how much. The standard amount is usually $1,000,000 but you may want to increase that if you are worried about getting sued.
Home insurance is a must. If you own your home then insure it for replacement value plus the value of the contents. If you rent you may want to insure your contents.
If your place of employment doesn’t have a disability insurance policy then you should look into getting one. This type of insurance will pay you a wage should you be injured and can’t return to work for a period of time.
When Should I Get Insurance?
The best time to get insurance is now – before you need it.
Purchase life insurance now. Take out a policy that will cover your debt, pay for your funeral and provide for your family. If you’re single then just insure yourself for an amount that will cover funeral costs. When you buy that new vehicle or house don’t forget to increase you life insurance policy to cover the loan it will be cheaper than the premiums a bank or car dealership will offer.
Get home insurance now before you have a fire or break-in.
Take advantage of the different insurance policies corporations and associations offer – the premiums may be lower than what you can get on your own.
Don’t treat insurance as an investment. It’s not. Insurance is a safe guard against disaster not a money maker.
Insure yourself for your family and insure your property for its replacement value then you can sit back and relax because you know – you have it covered.