Nobody likes to pay money for a service that has no return. That is why some people balk at the thought of purchasing insurance products. Why spend money on something that you may never use?
The answer to that question can be two-fold. First, in certain circumstances, it is the law. You can’t go drive a car without having basic liability coverage. Second, insurance products are there to help you protect your wealth. Disease, disability, and death can destroy your financial world in just a matter of days. Everything you worked for could be gone, which is why finding the right insurance products is especially important for those with a family. If you’re not sure which products are right for you, here is a quick rundown of some of the types of insurance coverage that you should be considering.
Life Insurance
Since I have a family and assets to protect, one of the most important insurance products that I carry is life insurance. Personally, I carry a term policy that expires when I am 55 years old. It is a low-cost and common sense way to protect my family financially in the event that I would die prematurely. There are several different types of life insurance, but term is the best in my opinion. You can’t beat the amount of coverage you get for the price.
In the old days, if you were lucky, you might be able to request a quote by telephone. Usually, you’d have to walk into an insurance agent’s office, answer a bunch of questions, and request a quote. Just like everything else, the internet has made it much easier to shop around for life insurance policies. There are several websites that allow you to compare life insurance quotes online. You may even be able to find companies that no longer require you to take a pesky exam. Regardless, life insurance is a must have – especially since term life insurance is so cheap.
Health Insurance
For good or for bad, the passage of Obamacare means that there really isn’t an excuse to not have some type of health insurance coverage. In fact, it is now illegal to go without it, and you’ll be taxed if you do. If you are in the lower-income brackets, Obamacare provides a ton of subsidies that should help you afford basic coverage. Of course, your deductibles may still be completely unaffordable, but who’s counting?
If you make too much money to be eligible for a subsidy, Obamacare can get extremely expensive very quickly. The worst part about it is that you are paying out the nose for coverage that stinks. However, there are alternatives available. Healthcare sharing ministries are one option. They all function a little differently, but sharing ministries will help you avoid the Obamacare tax and provide some healthcare coverage for your family. In fact, the coverage may be even better than Obamacare itself.
Car Insurance
If you plan to drive around, you are going to need to some car insurance. Carrying basic at-fault collision insurance is the law, however there are a host of other options out there if you want to upgrade. For instance, if you own a newer vehicle, you may want to consider the cost of purchasing a full-coverage policy.
Our family has 2 cars. We carry collision coverage on the older vehicle and full coverage on the newer car. Since the cost to replace the older car isn’t very much, we decided to save some money on our insurance policy and simply go with collision. We pocket the money and could use it to buy a new (used) car if we ever needed to. (Crossing my fingers that doesn’t happen!)
Disability Insurance
Carrying disability insurance is always a hot topic of discussion around my house. Disability insurance is a product that is built to protect your income in the event that you are unable to work. If you believe the rhetoric, you are far more likely to become disabled than to die young. Of course, those statistics are coming from somebody who wants you to buy a disability policy.
However, the fact remains that most people either carry too little disability insurance or none at all. Mainly, that is because private disability insurance is super expensive. However, a group disability insurance program through your employer can be ultra cheap. Unfortunately, we don’t have that option, so we choose to go without for now.
Finding the right insurance products is something that every prudent adult needs to do. With the variety of online resources available, discovering the right insurance products for you is easier than ever before. So, make sure to protect your family and your wealth. Get your insurance needs covered today!
Because I already have health issues, I couldn’t get as much life insurance as I wanted. At least, not at a reasonable price. But I got enough to pay off the house (we have a smallish mortgage) and still leave my husband with a year or two of financial breathing room. He’s on disability, so I need to make sure he’s taken care of.
Since I’ve already been on disability, disability insurance was a no-go. People should definitely look into riders that let them specify a position similar to the one they do now. That is, the company can’t deny benefits because you’re still able to work at a fast food joint.
Sorry for your situation, Abigail. That is one reason why juvenile life policies can be a good investment. Many of them offer the chance to convert the juvenile policy to an adult policy without having to pass a health exam. Glad you were at least able to get enough to cover the house though!
As far as disability goes, “own occupation” vs. “any occupation” riders are a HUGE distinction. Those are definitely something to look at when you sign up for the policy!