We can compare insurance to a life jacket: when we don’t need it it is annoying , and we can even find excuses for not having it. However, when we are in the middle of the open sea, unable to touch bottom, we feel comfortable wearing our life jacket.
In the same way, we could be in situations such as a car accident, a house fire, illness, debt, etc., and dispensing with insurance would be a problem. Los Insurance is very necessary, but it is certainly a delicate subject. For this reason, we must make sure that we choose the most suitable types of insurance according to our needs.
In this article we will see the most outstanding ones and that we consider to be essential. But always remember to check with your insurance agent.
Driving without insurance is illegal, but it could also cost you a lot of money. Experts estimate that annually the expenses for auto claims exceed $ 5,000 , money that would have to come out of your pocket, if you do not have insurance. There are several policies for vehicles; let’s see some.
- Liability policy . In the event of an accident for which you are responsible, this policy will help cover the costs of injuries and property damage to third parties caused by the collision.
- Collision Policy . This covers the repair costs for the damages caused in the accident; or, if necessary, replace your car if it was completely destroyed.
- Complete policy . This covers losses caused by theft, vandalism, storms, floods, fires, among other factors that get out of your hands.
Always remember to check with your insurance agent, so they will help you choose the type of protection your car needs.
Homeowners and renters insurance
This type of insurance must include an extended home policy. This policy adds additional protection from insurance limits.
Extended home coverage will repair, rebuild or replace your property, even 20 or 25% above the insured value. The higher the value of your home, the more necessary the extended coverage policy will be. It is important to check with the insurance agent what the policy you choose does and does not cover.
- Flood policy . Many homeowners are unaware that home insurance does not include flood protection. For this reason, it is important to consult with your insurance agent for all the relevant information.
- Policy against earthquakes. Depending on the country where you live, this policy may not be included in your insurance . Be sure to discuss it with your agent if you want to include it.
If you are a tenant, you can also be affected by not having insurance. In the event of fire, flood or theft , you would lose your belongings . Choosing a good insurance agent will guarantee benefits to both homeowners and renters.
General policy insurance
This type of insurance has a policy that adds extra coverage, in case you exceed the limits of your other policies. For example, a traffic accident, in which several vehicles are involved ; Damages to third parties may exceed the limit of your car insurance, in this case this policy will help cover that excess without putting your assets at risk.
The general personal liability policy can cover up to triple your assets. For example, a person with an estate valued at $ 500,000 may obtain coverage of up to 1.5 million. It is important that you consult with your insurance agent to choose the one that best suits you and your family.
In the country, half of the people who file for bankruptcy do so because of medical debts. To avoid this, it is essential to have medical insurance. Although it is true that it is usually expensive, in the long term it brings us benefits.
An unexpected medical emergency can cost us a lot of money without insurance. And if we are one of those who do not usually go to the doctor a lot, we can choose another option . The high deductible health insurance plan, which you can combine with a health savings account (HSA). Let’s see what each one consists of.
- The High Deductible Health Insurance Plan . In this case, you will be responsible for most of the initial medical expenses, paying a lower monthly payment.
- A health savings account (HSA). It has advantages to pay specifically certain medical expenses. You should be sure to speak with your insurance agent for more information.
HSA accounts include other benefits; among them are:
- Tax deduction l. This allows you to deduct your HSA contributions from your salary or business income.
- Tax-free growth . It is another of the benefits, in this case you can invest the income of your HSA and these grow tax free; and you can use them when you need them .
- Tax-free withdrawal . Here you can use the money tax-free for specific medical expenses, such as dental or vision expenses.
You can compare what your insurance company offers you in terms of health insurance, HSA accounts and high deductible plans and thus choose the most suitable for you.
Long-term disability insurance
This insurance protects you in the event of not being able to obtain income due to an illness or disability due to injury. According to some studies, 1 in 4 people will be disabled before reaching 67 years of age. That high percentage makes disability insurance essential.
If you currently have a good job with a good salary, it is time to think about paying for this policy; because an injury could affect your future plans. Some companies offer their employees long-term disability insurance.
There are other options such as short-term disability insurance , which could help you if you cannot work for three to six months; but it won’t be necessary if you have an emergency fund. You could find out what other options are available, ask your insurance agent which ones you might need according to your case.
Long-term care insurance
This type of insurance includes various services, such as nursing home care and home help with basic tasks; such as personal hygiene, eating, among others. Long-term care includes any ongoing care for those with a chronic illness or disability. This policy is usually expensive.
One recommendation would be to choose this long-term care policy after age 60; this way you will protect your savings and your retirement funds. Although you may not need long-term care before age 60, you should consider several factors before making the decision.
It is important to talk with our insurance agent about this issue, to choose the one that best suits the situation. It could be the case that those who need long-term care are our parents; so we should take the time to research all the options available to you.
Most of us take life insurance lightly. But let’s think, if we die unexpectedly, how will our family cover the funeral and burial expenses? Also, how would they make ends meet if you are the breadwinner for the household? With the term life policy, your family will receive between 10 and 12 times your annual income, with which they will be able to cover the expenses during those months of hard pain that follow after the death of a relative.
This policy should be a priority. Seek advice from an insurance agent today . This policy is usually affordable, as well as providing security for you and your family.
If you are single and have no relatives, but have large debts and no savings accounts, you could opt for a short-term life policy. If you are 30 years old and in good health, you can Get an affordable policy to help you pay off debts and cover funeral expenses in the event of an unexpected death.
Identity theft insurance
Identity theft or fraud and cybercrime are real. It is estimated that only in the country 16,000 million dollars are stolen each year. Hackers are on the prowl, and with a little information about you they can ruin your finances. These criminals manage to take out mortgages, receive medical attention or file false tax returns.
After fraud, cleaning a person’s reputation can take years. That is why you must make sure that this insurance policy includes restoration services and has a qualified professional to attend to the case.
An important point
You should avoid insurance policies against cancer, accidental death or any other similar. Policies of this type only generate extra profit for the seller . You need to choose an agent who will be on your side and not the insurance company.
It is important to choose our independent insurance advisor well . He should work with you to make sure you choose the most appropriate policies according to his lifestyle, that bring you present and future benefits. In addition, when making claims, you will have his support.