You can’t keep the unexpected from happening, but you can protect yourself and your family from bearing the brunt of a financial fallout with insurance plans. Here are three types of insurance plans that financial experts recommend buying.
Life Insurance
Life insurance, regardless of the type you opt for, provides for your dependents if you happen to pass away unexpectedly. This policy is especially important if you are the sole breadwinner of your family. Industry experts recommend opting for coverage that amounts to at least ten times your annual income.
But some people may need more, especially if they have a lot of debts. If you need substantial coverage but don’t want to spend too much, it’s best to opt for a term insurance plan. If you need long-term coverage, pick a whole life insurance plan. There are considerable differences between these two life insurance plans, so make sure to consult an insurance advisor or agent to know which one will suit you best.
Health Insurance
A single medical emergency could drain you of your life’s savings. That’s why it’s important to purchase health insurance. Most people in the United States get health insurance coverage through the private insurance marketplace or their employer. Some receive it through government programs like Medicaid or Medicare. Regardless of how tight your budget is, a policy that offers basic health coverage is vital.
The most affordable option for most is enrolling in the health insurance plan offered by their insurer. Those who earn a very low income can lower their healthcare expenses with a Medicare plan. If you are a senior citizen or have certain disabilities, look into whether you are eligible for a Medicare plan.
Auto Insurance
Unless you currently reside in a major metropolitan area with great public transportation, it’s likely you have your own automobile. Although cars have become considerably safer in the last few decades, thousands of people still die in traffic accidents. This is why pretty much all states in the U.S. require car owners to have auto insurance. As with other types of plans, your individual circumstance will determine the type of plan you should get. For instance, if you barely use your car, a third-party insurance plan will suffice. If you have a brand new car that you intend to drive often, you should spring for a gap insurance plan.
