Four Crucial Insurance Coverages for Individual Needs

Accidents and unexpected life-events usually can’t be prevented from happening, but we can get protection from them.

Insurance is specially designed to shield us or at least safeguard us financially when certain things happen. As you know insurance has numerous options you can choose from, but it doesn’t mean you need to have them all. 

Purchasing the right amount of coverage and type of plans are always determined by the specific situations. It is difficult to determine the insurance coverage you really need.

Many kinds of insurance, like auto insurance if you own a car or liability insurance if you run a business, are needed by law. If you don't have the needed insurance, you could get fines, face legal consequences, or even lose your license or business license.

However, according to financial experts, these types of insurance are the most recommended. Everyone should all have life, health, auto, and long-term disability. This article will help you determine what insurance is a must-have. We’re going to explain to you why these four are the essentials coverage everyone needs.

4 Types Of Insurance Everyone Must Have

• Life Insurance. One of the greatest benefits of life insurance is the ability to cover the final expenses, which are funeral expenses, and provide a death benefit for those loved ones you leave behind. It is must-have insurance especially if you have a family that relies only on your income. Experts say that get a policy that covers ten times your yearly income, but that’s a number not everyone can afford. When calculating the amount of life insurance you need, remember to add daily living expenses on your estimation, not just the funeral expenses. These daily expenses include mortgage payments, outstanding loans, taxes, child care, and future college expenses. There are two types of life insurance you can choose from traditional whole life and short-term life. If you consider having life insurance, you can seek advice from financial experts or insurance agents to determine which is the best coverage for you.

• Health Insurance. According to a study by the American Journal of Public Health in 2019, the majority of Americans who filed for personal bankruptcy are because of medical problems, due to bills, income loss due to illness, or both. Health insurance has become expensive these days, fewer and fewer people can afford it. If you are one of the people who can’t afford it, the best and least expensive option is by participating in your employer’s insurance program. But sometimes, smaller businesses do not offer this kind of benefit. You can check with trade organizations or associations for possible group health plans if your employer doesn’t offer health insurance benefits. If also this is not an option, You’ll be needing to buy health insurance on your own.

• Long-Term Disability. This is the type of insurance everyone thinks they don’t need. The least coverage everyone will acquire. But according to a statistic from the Social Security Administration, 1 out 4 workers entering the workforce will most likely become disable and will be unable to continue to work before they reach the retirement age. Sometimes, even those workers who have the best insurance life and health policy don’t prepare for that day. 95% of the number of disability accidents illnesses that are not work-related. Meaning, while your health insurance covers most of your medical expenses, you’re still left with those daily living expenses that your paycheck normally covers. Most employers offer both short and long-term disability as part of the benefits package.

• Auto Insurance. The number one cause of death for Americans between the age of 5 and 24 was car accidents. There are 38,000 people estimated who died in car crashes in 2019 alone. While not all states require drivers to have auto insurance, most do have regulations regarding financial responsibility in the event of accidents.

Who Should Get Insurance?

Insurance is a crucial financial tool that provides protection against unforeseen events, mitigating the financial impact of unexpected circumstances. While the necessity of insurance may vary depending on individual circumstances, there are key life stages and situations where obtaining coverage is particularly prudent. In this article, we explore who should consider getting insurance and why it is an essential aspect of financial planning.

• Breadwinners and Income Providers: Primary breadwinners and high-earners should have life insurance. Their dependents are financially safeguarded and can maintain their standard of living if they die unexpectedly.
• Families with Dependents: Families with children must protect their loved ones' financial future. Life insurance covers schooling, everyday living expenditures, and other necessities in the absence of a primary provider.
• Homeowners with Mortgages: Homeownership usually requires a mortgage. To keep their house in difficult times, homeowners might consider insurance to cover the mortgage balance.
• Individuals with Outstanding Debts: Insurance is recommended for those with school, credit card, or personal obligations. Insurance can pay off these bills after their death, relieving their family.
• Business Owners and Entrepreneurs: Business owners and entrepreneurs have distinct financial duties. Business insurance can cover property damage, liability claims, and essential employee loss.
• Individuals with Dependents with Special Needs: Having special-needs children makes insurance even more important. Life insurance can help pay for medical care and other needs.
• Individuals Approaching Retirement: As people near retirement, they may focus on asset protection and income security. Long-term care insurance can help cover healthcare bills now.
• Young, Single Professionals: Young, single professionals benefit from insurance. Young life insurance policies have lower rates and can help with financial planning.
• People with high-risk jobs or hobbies: Those in high-risk jobs or hobbies may consider supplementary insurance. Specialized policies may be needed to defend against workplace hazards and injuries.
• Anyone Planning for the Future: Insurance is important for future planning, regardless of living situations. Unexpected catastrophes can happen at any age, making insurance a wise choice for financial security and family protection.

How Is Insurance Work?

Depending on the product and insurance company, there are wide variations in the way insurance operates. In any case, policyholders need be aware of the four primary components of all policies to make sure they are receiving the appropriate coverage. These are the following:

• Premium: The amount of money required to obtain coverage.
• Policy term: The duration of the policy.
• The maximum sum that an insurance will pay out for a covered hazard is known as the policy limit.
• Deductible: The amount that must be paid by the policyholder out of pocket prior to the policy taking effect.

How To Save On Insurance Premiums

Insurance premiums can be a big cost, but there are ways to save money without giving up security. Here are some ways to save money on your insurance:

1. Shop around. The first step to saving money on insurance rates is to get quotes from more than one company and compare them. Make sure to look at both the coverage and the price, and don't be afraid to talk with insurers to get a better deal.
2. Increase deductibles. By reducing some of the risk to you, raising your deductibles can help lower your rates. Just make sure you can pay the higher out-of-pocket costs if you need to make a claim.
3. Bundle your policies. When you buy home and car insurance from the same company, for example, you may get a discount. By putting all of your insurance with one company, you can save money on your premiums.
4. Maintain a good credit score. Your credit score can affect how much you pay for insurance because insurers use it to figure out how risky you are. Keeping your credit score high can help you get better rates.
5. Ask about discounts. Insurance companies often give discounts to people who do things like drive safely, put safety features in their home or car, or join to certain professional groups. When shopping for insurance, be sure to ask if there are any savings you can get.
6. Consider usage-based insurance. Usage-based insurance plans, like those for auto insurance, use information about how you drive to figure out how much you pay for insurance. If you sign up for a usage-based program, you could save a lot on your rates if you are a safe driver.
7. Review your policy regularly. Your insurance needs change as your life does. By reviewing your coverage often, you can make sure you're not over- or under-insured, both of which can cause your premiums to go up.

Get Affordable Health, Life, and Medicare Insurance with Chris Antrim Insurance

The bottom line is most financial experts agree that these four insurance coverage are the four types of insurance everyone must have. If you are one of the people who cannot afford any of this, check your employer’s available coverage. If not, the last option is to get your own coverage.

But at Boise Health & Life Insurance Agency, we recommend obtaining quotes from several insurance carriers to compare them and give you the best plans for you with the right amount. While insurance is expensive, not having it could be more costly.

Thank You For Reading!