Life is full of uncertainties. We can never prevent the unexpected from happening, but we can protect ourselves and our families from the worst of any financial fallout through insurance policies.
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Insurance Policies
Insurance policies can protect you from the hazards of everyday life. Examples include fire, floods, car accidents, and even life-threatening illnesses. Insurance policies come in many forms, and the selection of the specific type and amount of insurance will be based on an individual’s situation. This includes current life situation, number of children, lifestyle, age, and current employment benefits. We cannot stop disasters from happening, but we can avail of a good insurance policy that can provide the financial coverage necessary to deal with unexpected expenses.
Types of Personal Insurance
There are various types of personal insurance policies to choose from. However, it is imperative to know the specific policy you are to commit to.
Long-Term Disability Insurance
Long Term Disability Insurance (LTD) is a policy that proves to be frightening for most people. Sadly, they choose to ignore it since people feel that “nothing bad will ever happen to them”. But, leaving one’s health to chance and hoping you will never be ill is not a good idea. Instead, choose a disability policy that gives enough coverage to enable you to retain your current lifestyle in instances when you can no longer work. LTD provides a monetary benefit of 50-60 % of the insured individual’s salary for covered disabilities. To receive the benefit, the said disability must occur within the period of the policy’s issuance and right after the dedicated waiting period. Requirements include detailed medical information as confirmed by a physician duly provided to the insurer for careful consideration.
Life Insurance
Life insurance works by protecting the declared dependents who are dependent on you. This includes your spouse, children, parents, and other loved ones. It occurs when a significant financial hardship will be experienced if you suddenly die. Considerations in availing of the plan include the number of earnings received per year and the number of years you contemplate remaining employed. Also, consider the burial costs since this can be an unexpected financial burden for families who will be left behind.
Health Insurance
It only makes sense to avail of this policy given the soaring price in health care costs experienced nowadays. A simple doctor’s appointment comes in with a hefty price tag. Not to mention any severe injury that may occur that generates a bill comparable to the price of staying in a luxury hotel—always factor in these medical costs in considering this policy. We can never tell the eventuality of a person getting sick.
Homeowner’s Insurance
Homeowner’s it comes in when you decide to replace your home for remodeling and renovations. Reconstructing a house is a costly ordeal. Carefully select a homeowner’s insurance that covers the replacement of the structure and its related contents. Factors such as the current age of the house and the specific amenities it contains should be included in the cost of rebuilding. Sometimes, replacing the entire structure is somewhat cheaper than rebuilding it from the ground up. Lastly, ensure that the policy covers the cost of liabilities resulting from injuries that might occur on your property during its construction.