5 Insurance Policies Everyone Should Have

Securing your most important assets is an critical step in creating a solid personal financial plan, and the right insurance policies will go a long way toward helping you safeguard your earning power and your possessions. In this article, we discuss five policies you shouldn't do without.

Long-Term Disability Insurance
The possibility of long-term disability is so frightening some people simply choose to overlook it. While we all hope and pray that "nothing will happen to me," depending on hope to protect your future earning power is basically not a smart thought. Instead, choose a disability policy that provides enough coverage to enable you to make the most of your present way of life regardless of whether you can never again keep working.

Life Insurance

Life Insurance protects the people that are financially dependent on you. On off the chance that your parents, spouse, children or other loved ones would face financial hardship if you died, life insurance should be high on your list of required insurance policies. Consider the amount of money 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. Factor in the cost of burial too, as the unforeseen expense is a weight for some families.

Health Insurance

The soaring cost of medical care is reason enough to make health insurance a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs. Although the cost of health insurance is a financial burden for just about everyone, the potential cost of not having coverage is much higher. 

Homeowner's Insurance
Replacing your home is an expensive proposition. Having the right homeowner's insurance can make the procedure less troublesome. When looking for a policy, search for one that covers replacement of the structure and the contents, notwithstanding the cost of living somewhere else while your home is repaired.

Remember the expense of modifying doesn't have to incorporate the expense of the land, since you officially possess it. Depending on the age of your home and the amenities it contains, the cost to replace it could be more or less than the price you paid for it. To get an accurate estimate, find out how much 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.Likewise, make certain the policy takes care of any liability for injuries that might occur on your property.

Automobile Insurance
Some level of automobile insurance is required by law in most places. Regardless of whether you are not required to have it, and you are driving an old clunker that has been paid off for years, accident coverage is something you shouldn't skip. If you are involved in an accident and someone is injured or their property is damaged, you might be liable to a claim that could cost you all that you possess. Accidents happen quickly and the results are often heartbreaking. 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.

Bonus Tip For Business Owners: 

In addition to the policies listed above, business owners need business insurance. Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court.

Shop for Insurance Carefully

Insurance policies come in a variety of shapes and sizes and boast many different features, benefits and prices. Shop carefully, read the policies and talk to the agent to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase.