When you’re trying to save money, making a monthly payment on an insurance policy you never seem to use can feel like a waste. While it does add a little extra to your budget, there are a few insurance policies that can prevent you from major financial disaster in case of an incident. Here are a few of the top coverages that everyone should carry.
1. Life Insurance
Many young people neglect life insurance because death seems so far away, but this disregard could make life incredibly difficult for your loved ones if you were to pass away. There are different amounts of coverage you can apply for, depending on your needs. Individuals who are the sole provider for a family need to apply for maximum coverage to care for the well-being of their loved ones.
There are many different things to consider when deciding which policy to get. It may take a spouse some time to find a job and daycare services are expensive. Take the time to determine the amount you and your family members would be comfortable with if they lost your income. Even if you have zero dependents, you’d hate to leave the financial burden of a funeral to your grieving loved ones. Even a small policy to cover end-of-life costs can make your passing less stressful on those you leave behind.
2. Health Insurance
After preparing for your death, you should focus on insurance to keep you alive. Health insurance is not only necessary to avoid hefty government fines, it also prevents you from facing debilitating medical bills. While you may be healthy the majority of the time, one trip to the emergency room for a broken bone could end up costing you thousands if you’re paying out of pocket. Add on follow-up visits or orthopedic surgery, and the decision to not carry insurance can become a burden you make payments on for years to come.
3. Disability Insurance
Much like life insurance, this coverage protects you if you are unable to work for a period of time, whether that is temporary or permanent. Since one third of Americans have need of disability insurance at some point in their lives, this is an important form of coverage for everyone, whether they have a family to provide for or not. Talk to a professional to determine the best coverage for you.
4. Car Insurance
Another insurance that you’ll be fined for not having is car insurance. The reason why this is so important is because car accidents are common and often cost thousands of dollars in repairs alone. You also need to consider the likelihood of injured persons needing medical bills covered. There are many different types of coverage, including liability, collision, comprehensive, and more. It’s important to talk with an insurance agency to determine the best plan for you, but always err on the side of too much coverage rather than not enough.
While spending a little each month on multiple insurance plans can seem counter-intuitive to saving money, the costs of not having them are far greater than any premiums. One destructive car accident or debilitating injury can lead to thousands of dollars in debt, making it smart to protect yourself and your finances by making sure you have adequate coverage and keep your policies current.