Being under-insured can be incredibly dangerous. Insurance is a necessity when you least expect it, and not preparing yourself in advance may cost you financially later on.
1. Life Insurance
Many individuals don’t keep life insurance policies because they believe that life insurance is more expensive than it actually is. Others simply think they can get it later on. In fact, a life insurance policy is far less expensive when it is purchased earlier on and it tends to be quite cheap. Life insurance is important because it will pay for your final expenses – even if you don’t have children, you will want life insurance to ensure that your family members do not end up carrying the burden of this significant debt.
2. Homeowners or Renters Insurance
Homeowners and renters need to ensure that both their property and their belongings are entirely insured. Homeowners should make sure that flood, fire and earthquake protection is included with their homeowners insurance, especially for those who live in danger areas. With the help of FEMA.gov, you can find out if you live in a flood area to better understand your risks. Renters need to insure all of their physical property, even if their landlord already has homeowners insurance. After recent flooding in California, renters there who were insured got immediate help from services like Cleanrite-Buildrite in Yuba City without draining their savings.
3. Long-term Care Insurance
Long-term care insurance is ideal for those that are concerned about how they will be cared for when they are older. Long-term care can cost hundreds of thousands of dollars and being able to pay these bills will contribute to your overall comfort in your senior years. Without long-term care insurance, your family will need to bear this burden alone. And if you don’t get long-term care insurance early enough, you may not be able to get it at all. Furthermore, if your health is already poor or are already getting similar services, you likely won’t qualify for this type of insurance.
4. Health Insurance
Health insurance is absolutely essential for anyone. Without health insurance, medical bills can potentially cost millions of dollars. A simple medical procedure may cost tens of thousands of dollars. At least catastrophic health insurance is a necessity for any individual. According to Healthcare.gov, the expenses incurred during a three-day trip to the hospital averages out at $30,000. Without the help of health insurance, you will be fully liable for this bill.
5. Umbrella Insurance Coverage
Umbrella insurance coverage is valuable because it extends the coverage of all of your other policies. If you get a $10,000 umbrella policy and you exceed your homeowners insurance, renters insurance or auto insurance, the umbrella policy will kick in up to an additional $10,000. Umbrella insurance is like an insurance policy against your other insurance policies and is usually less expensive than extending each policy individually.
Insurance is an important aspect of everyone’s life. To get more information about the insurance coverage you need you can contact an insurance broker. Insurance brokers work with multiple companies to get you the best rates.