Getting insurance is a crucial part of personal financial planning. Insurances help us to get much needed financial help in times of need. It can be a daunting task to choose your insurance plans especially when you don’t have a good idea of how insurance works and which insurance is best for you and your family.
There are various types of insurance available in the market right and each one is suitable for a different need. This is why you must know the different types of insurances and which are the ideal one for you.
Here are some of the major insurance types and how they will benefit you.
1. Life Insurance
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Life insurances are the most common type of insurances that people get. Life insurance is best suited for those who are the breadwinner of their family and want to protect their family in case of death.
There are basically two types of life insurance: Whole Life and Term Life insurance.
Whole Life: the whole life insurance for the lifetime. It can also be used as an income tool along with death benefits and cash value components. You can end the policy by taking the value money of the insurance. Of course there are several policies associated with it. It is more expensive than the term life insurance plans.
Term Life: the term life insurance covers you for a limited set amount of time. For example, you can get term insurance for 20, 30, or 40 years, as per your preferences. This is also one of the most common types of insurance plan you can find. It will compensate at the time of death within the set term.
Ideal life insurance should give you coverage that amounts ten times of your yearly income. This is ideal for those whose family depend on them financially. Make sure you add in the funeral expenses in your policy. You should also calculate the living expenses of your family member along with additional expenses such as mortgage, taxes, child care, the future college cost, and so on.
Make sure you get life insurance that can help your family to be stable after you. So calculate the living expenses as well as the premium rates to choose a perfect life insurance for yourself.
2. Health Insurance
Health insurance helps during the time of accident as well as some unforeseen sickness of a family member. Generally, health insurance is obtained via the employer but you can also get it individually by contacting the insurance provider companies.
The benefits of health insurance vary from individual to individual. If you fall into the poor category then you might get some subsidies from government plans. And if you are employed at a reputable company then you can get insurance from there. However if you want to buy an insurance plan for all of your family then you should get an individual one.
3. Long Term Disability Coverage
This type of insurance covers those who become disabled and are unable to work. If someone becomes disabled, then not all the health insurances would pay enough to support them or their family. This is also ideal for people who become disabled at the retirement age. You can look for the ideal package that will support you during this time.
4. Auto Insurance
Auto insurance is when people meet traffic accidents and die. However most of the time the insurance provider company makes the driver responsible for the accident. Still you can get the ideal policies of auto insurance that will cover the cost and pay the death compensation to your family. Make sure you read the policies carefully as well as the terms in which the provider may not pay any kind of compensation.
Conclusion
These types of insurances are must have as per a study conducted by the experts. All the insurances are a bit different from each other and their cost and coverages will also differ from each other. The bottom line is that having some kind of insurance is better than not having one. The insurances are meant to provide you financial support for you and your family during the hardest times of your life.
