Common Types Of Insurance

Life brings a lot of challenges to all of us. Although we cannot stop such challenges from occurring, we can get some form of protection. Insurance offers us some form of protection financially, in case the worst happens. Nowadays, there are several forms of insurance policies available. Experts will tell you that you need to have certain insurance policies. However, with these several options, it becomes quite difficult to know what you exactly need. Buying the right cover is determined by different factors such as age, lifestyle, employment benefits, and children.

There are four major types of insurances, which most financial advisors recommend to their clients. They include auto, life, health, and long-term disability. All these covers attract a given aspect of life, and they are very useful to one’s financial future.

Health insurancejmkb2w5edr5t2e6u2

Recent studies by Harvard University noted that illness can throw your family into bankruptcy. The study concluded that health causes over 60% of bankruptcies in the U.S.. These numbers are worrying, and they call upon increase of health insurance. Fortunately, you can get adequate cover by shopping around. Participating in the insurance program of your employer can also help. The fact remains that getting affordable health insurance is not easy. It is estimated that over 50 million people residing in America do not have health insurance.

Life Insurance

This type of insurance is meant to provide for those that you left behind. This is very useful if you have got a family that depends on your salary. According to industry experts, life insurance ought to cover about ten times your annual salary. Such an amount would be sufficient to cover your existing expenses, cover funeral expenses, and cushion your family financially. After your death, it will be easy for the family to regroup itself.

Long-term disability coverage

This is a type of insurance coverage most people believe they never need it. This ijmkb24edr526wy7u2s because none believe he or she will become disabled. Statistics show that four of ten people that join the workforce end up being disabled. This means that they will be unable to work before their retirement. Even if you have a good life insurance policy, nest egg, or health insurance, you need this type of cover. If you suffer serious medical conditions like cancer, you may be unable to work for several years.

Auto Insurance

There are millions of traffic accidents that happen across the world every year. Financial responsibility is a must during accidents.