Top 5 Most Important Insurance Policies

Having the right insurance plan will help you in the protection of your properties. This step alone is the foundation that protects your assets from any unforeseen circumstances. we’ve compiled the Top 5 Most Important Insurance Policies everyone must have.

With the right insurance policy, you can get to safeguard your earnings and possessions. As a way of making, you understand the importance of insuring yourself or even your properties, we’ve decided to write on the 5 insurance policies you shouldn’t do without.

A lot of people don’t pay more attention to insurance policies forgetting that the unforeseen or the unexpected can happen to anyone.

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Top 5 Most Important Insurance Policies
Top 5 Most Important Insurance Policies

Top 5 Most Important Insurance Policies

5 Key Insurance Policies You Should Take Very Serious

  • Long-Term Disability Insurance
  • Life Insurance
  • Health Insurance
  • Homeowners Insurance
  • Automobile Insurance

All of the insurance policies I made mentioned above, I considered being a basic necessity one must have while you’re living and breathing.

Long-Term Disability Insurance

When we talk about long-term disability, there are different things you need to put in the back of your might. Among them are safety and security.

When you tell people about disability insurance, a lot of people will rebuke it and even turn their faces away because no one wants to have the thought of being disabled in the future. When you have that thought, the first thing I need you to ask yourself is “Am I better than those who got disabled as a result of an accident?” if you can tell yourself confidently that “No” then it is high time you get yourself a long term disability insurance. You might not actually need this insurance policy now but the people who rely on you such as your kids, wife/husband, and family have a future you must protect.

This is why it is very important to choose a disability insurance policy that provides coverage for you in other to enjoy your current lifestyle even if you can no longer work to afford such a lifestyle.

Long-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured’s salary for covered disabilities. Long-term disability typically begins when short-term disability ends.

For this benefit to be enjoyed, the disability must have occurred after the policy issuance and then, typically after a waiting period. The medical information must be confirmed by a licensed physician, before the insurer can consider it.

There are other policies that you need to check such as the Workers Compensation or Workers Comp which is under short-term disability insurance. This insurance pays a monetary benefit to works who got injured or disabled as a result of them working while on duty or on-site.

Most states in the United state requires every employer to have such an insurance policy for their employees to avoid being sued by the employee for negligence.

It is advisable to go for a long-term insurance policy due to the fact that it covers a lot more compared to the short term which covers only disabilities and injuries.

Life Insurance Policies

As the name implies, life insurance is meant to protect the people who are financially dependent on you.  A whole lot of family members can depend on you if you’re the breadwinner or the one who takes care of them no matter how large the family may be.

Your parents, spouse, children and other loved ones may face financial challenges when you’re gone. This is why it is very important for you to take life insurance very seriously if you must secure the future of your loved one.

Before considering life insurance, it is advisable to take a deeper look into how much you earn each year (and the number of years you plan to remain employed), and purchase a policy to replace that income in the event of your untimely demise. This also covers things like the cost of your funeral in other to reduce the burden on your family in the case of an unexpected demise.

Health Insurance

The cost of medicine is increasing every day and this alone can be a nightmare of its own when one falls sick. To avoid running up and down to raise money for medical bills, health insurance is the best solution for that.

I have seen cases where people are been billed upto 5 figures for a surgery. You might see the cost of health insurance as a burden when you don’t need any medical attention. But in the long run, you’ll get to understand why health insurance is very important.

Homeowner’s Insurance

The cost of replacing a home can make you break the bank depending on your luxury taste. This is why it is important to have the right home insurance. With that, it can make it less difficult when trying to fix your home.

If you want to secure an insurance policy for your home, it is advisable tolook for a policy that covers the replacement of structure and contents, in addition to the cost of living somewhere else while your home is repaired.

While getting your insurance, have in mind that the cost of rebuilding is not included with the cost of land as you already own the land. The age of your home and other amenities in the house can also be a factor that will affect the cost of replacing everything.

To get an accurate estimate, find out how many local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don’t forget to factor in the cost of upgrades and special features. Also, be sure the policy covers the cost of any liability for injuries that might occur on your property

Automobile Insurance

Automobile insurance is very important when it comes to securing your vehicle against any unforeseen that could actually affect its functionality.

By law, an insurance policy for an automobile is mandatory to have if you must drive. When you live in a location where automobile insurance is not mandatory, it is also important to have for your vehicle(s).

When any of your cars(s) is involve in an accident and someone gets injured or their property got damaged, you may be subject to a lawsuit that could cost you everything you own.

Accidents happen quickly and the results are often tragic. Having no automobile insurance or purchasing only the minimum required coverage saves you only a tiny amount of money and puts everything else you own at risk.

Conclusion/ Final Verdict

The inevitable is bound to happen even when least expected. This leads to losses and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. This is why it is very important that you secure these 5 insurance policies we talk about.

If you find this article helpful, don’t forget to share. This will encourage us to write more helpful, educative, and informative articles like this in the future. For any question, observations or inquiries, you can drop them in the comment section. I’ll be happy to answer them.

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