Thursday, May 4, 2017

4 Insurance Plans That Protect Your Family and Financials

Insurance is an interesting thing. You pay for it every month, but you pray you never have to actually use it. But when you do need it, boy is it nice to know you’re covered.
Many people think of insurance as gambling against yourself when in actuality it’s an investment that protects your family’s financial stability. For the majority of people who live paycheck to paycheck, even a small accident could drain their savings account. Instead, you can use insurance as a safety net and sleep a little easier at night.
Auto Insurance
The experts over at acceptanceinsurance.com know a thing or two about planning for all the unexpected events in life. Every day they help people handle the aftermath of car accidents. Their team notes that between property damage and potential medical expenses even a small accident can be very costly.
Given that in 2015 alone there were 6.3 million police-reported car crashes the chances that you’ll be involved in one is high. That’s why auto insurance is at the top of this list. Out of all the types of insurance, you can purchase, this is one that is most likely to be used. When you’re selecting an auto insurance plan pay attention to:
  • ·  The monthly premium
  • ·  Deductible amount
  • ·  Actual cash value for replacing your vehicle
  • ·  Liability insurance coverage (for damages caused by your vehicle)
  • ·  Collision insurance coverage (for damage done to your vehicle)
  • ·  Comprehensive insurance (covers theft, vandalism and damage done by nature)
It’s also important to check the state auto insurance requirements. Most states require that all drivers have a minimum level of coverage.
Homeowners or Renters Insurance
The next most common type of insurance is homeowners or renters insurance. Let’s be honest. As a homeowner, I know from personal experience it’s the largest investment most of us will ever make. Insurance helps protect that investment and can ensure your family has a roof over their head if the worst happens.
There are a lot of options when it comes to homeowners and renters insurance, but one thing you’ll want to pay close attention to is how your possessions are covered. You can choose one of two options:
Replacement Cost – You’ll be reimbursed in the amount that it would take to replace the items that were stolen, damaged or destroyed.
Actual Cash Value – You’ll be reimbursed based on the value of the item at the time it was stolen, damaged or destroyed.
Typically, the replacement cost option has a higher monthly premium, but it offers better coverage. If you have really expensive items like an heirloom or piece of artwork you may need to add what’s called a rider for additional coverage.
Two other types of property insurance you may want to consider are mold and flood insurance. These are separate policies that you can add onto a conventional homeowners insurance plan.
Disability Insurance
A growing number of people are switching from salaried positions to independent freelance or consulting work. It can give you more flexibility and actually increase your annual income, but you don’t have the coverage provided by an employer if you get sick or have an accident.
Without worker’s comp, sick leave and PTO you have to find another form of coverage if you can’t work. This is precisely what disability insurance is for. In the event you are injured and unable to work, your insurance plan will provide periodic payments to help you cover expenses while you recover. Usually, disability insurance payouts are 45-65% of your gross income. That may seem a little low, but the funds are tax-free.
If you operate your own company (even if it’s a one-man operation) you may want to look into business insurance as well. In addition to disability insurance, you can also get property and personal injury coverage.
Life Insurance
If something were to happen to you and your significant other or spouse would your kids be financially secure? Would your family be able to cover the cost of a funeral?
Death isn’t something most people enjoy talking about, but it’s a fact of life. If you don’t plan for the worst your kids could be the ones that really suffer. On top of having to deal with the loss of their parent(s) kids are suddenly left without a provider. Even if another guardian steps in they may not be in the position to offer the same amount of financial support that your kids are used to.
Life insurance is a way to guarantee your kids are financially secure. Make sure the payout would be enough to cover funeral arrangements, pay off outstanding debts and cover all of the standard living expenses until your kids are at least 18 years old. If you want your kids to go to college bump up the policy amount to cover in-state tuition as well.



No comments:

Post a Comment

Comment Away!

There was an error in this gadget

LinkWithin

Related Posts with Thumbnails