Insurance is essential. Most of our financial decisions today involve purchasing or getting insurance. You must have car insurance before you can drive. A home insurance policy is required before you can purchase a house. Apple Care insurance can be purchased even if you have an Apple device.
Everyday we are at risk. Insurance is necessary to manage and minimize these risks. Insurance is the only way we can protect ourselves from unforeseeable events in the future.
Insurance topics can seem very technical for most people. You need to be familiar with all aspects of each policy. There are many types and hundreds of them. Sometimes it can be difficult to choose the right one for you.
Here are the 5 insurance policies that you should have to help you make a decision.
1. MEDICAL INSURANCE
This is the best insurance policy you can get for yourself and your family. It provides protection against hospitalization expenses. Medical costs can be very costly depending on where you live. This is something that some wealthy countries offer for free. This is not the case for most countries. They will need to purchase their own insurance. There are many types of insurance that you can choose from. You should choose the one that best suits your needs.
2. CRITICAL IllNESS INSURANCE
Medical insurance is not enough. You might be unable to work or take a break due to a critical illness. You can receive a lump sum payout if you have a critical illness plan to help you through the recovery period. Although medical insurance will pay for your hospital bills, it won’t provide any allowance during hospitalization. You should have a critical illness policy in addition to your medical insurance. Make sure you choose a policy that covers all critical illnesses. It should cover all stages of the illness.
3. ACCIDENT INSURANCE
This policy provides protection against accidents. It provides medical coverage in case of an accident. However, the policy also pays a lump sum for accidental death or dismemberment. Accidents can happen, and an accident plan helps reduce those risks. Outpatient care due to an accident is not covered by some medical policies. A separate accident plan can be an advantage.
4. DEATH/DISABILITY INSURANCE
This policy is essential if you have a dependent family member. This policy is a way to leave a legacy for your loved ones in the event you are unable to live. This policy usually covers death as well as total disability. In the event of either one, the policy will pay a lump sum. The death coverage covers almost any cause, such as an accident or illness. Total disability coverage, on the other hand is subject to change depending on the insurance policy you have. This part may be covered or interpreted differently by different insurance providers. For more information, make sure to read your policy contract.
5. INVESTMENT/RETIREMENT INSURANCE
Finally, if funds are still available, consider an investment or retirement plan. Now is the time to start planning for your future. Invest to grow and plan for retirement. Most insurance companies offer a variety of investment options. To help you choose the right investment fund for you, review their past performance. Although past performance does not guarantee future returns, it can help you make a decision.
Insurance is a long-term commitment. You must do your research and not just rely on information provided by your agent. Make sure to read the fine print and understand the different types of insurance that you can avail. Make an appointment with multiple insurance agents so that you can compare before you decide which one.
