4 Types of Insurance Policies Everyone Must Have

Insurance Policies! How many times have you heard this word from others? But, of course, any well-wisher would often advise you to have one. Protecting your future and assets is regarded as good financial planning for the future. 

Now when we think of Insurance, the first thing that comes to mind is that Insurance is like a safety blanket that we can put on our children and loved ones.

No matter how much the concept of leaving prematurely haunts all of us, preparing for the worst is better for all parties involved. Purchasing the right type of policy according to your need and situation is a very important decision.

So now, without further ado, let us dive into the main types of Insurance Policies that you should be aware of.

  • Life insurance

As the word says, the Insurance guarantees that just in case the sole breadwinner dies early or leaves behind, people with financial liabilities and dependency are looked after properly.

With this life insurance, you must have an adequate and enough amount of money that you have insured so that it can easily replace the lost income.

If you choose carefully, some good life insurance policies give a good cover and provide a secure, guaranteed financial future for the insured’s family.

Now comes the question of whether you need it or not? If you have a family dependent on your income, you must take life insurance as it shields your family’s future after your death.

  • Health insurance

Treatments are expensive, and paying your hospital expenses may dry up your savings. 

Don’t worry; if you have invested in a good health insurance scheme, then it won’t be a problem for you. 

Even with the soaring healthcare costs, investing in a good, trustable health insurance policy is the most intelligent choice you can make, both for yourself and your children.

Any minor illness that requires hospitalization can easily cause a huge financial bump in many people’s pockets. So if a minor illness can do this, imagine what a major illness –like cancer – will do.

While you are out buying your health insurance, keep in mind some factors like affordability, needs, age, premiums, deductibles, restrictions, and claim settlement ratio of the policy. Great Southern Bank (formerly CUA) is a trusted bank for your policy with a good settlement claim ratio; you can trust them for your health and other Insurance.

As a smart tactic, it is advisable to get health insurance as early as possible because people are healthier if active at a young age. In addition, the premium rates are low, so it’s a win-win solution for everyone. 

  • Home insurance

Like your life or health, your home also needs a protection shield to cover. 

When you buy home insurance or mortgage insurance, keep a lookout for some policies which cover the structures and the amenities replacement. A good home insurance policy should cover your home against natural disasters like earthquakes or fires. It should also protect your belongings from theft and vandalism. 

  • Disability insurance

Disability insurance is a form of Insurance in which the insured person agrees to pay a certain sum to the insurer if he or she becomes disabled. It protects you from unexpected events, and it can also help you if you are unable to work due to your disability.

Having a disability – and not the one you are born with – is a scenario no one ever thinks of. However, many tend to disregard the existence and necessity of this Insurance.

There is no specific time for accidents to happen or any specific reason. However, accidents happen all the time, and they will continue to do so. If you already have health insurance, enquire for an add-on, as many health insurances give disability Insurance as an add-on to your present health insurance. 

Parting Thought

As the word says, Insurance is protection from unforeseen situations. You must have it to protect your family or things that matter to you. But be careful of the company you buy your policy from. Read and research before making a decision.

So now that you have an inkling of what basic Insurance you should take. Planning the right policy will take the burden off your shoulders, and you can sleep peacefully at night, a little less worried and stressed.