If there’s one thing that we know about life it’s that it is uncertain.
There is no surefire way of knowing what to expect out of it in the years to come. What’s even scarier is that it is seldom in our control to prevent things from happening, but the good news is that it is well within your power to prepare yourself better for such unexpected occurring and protect yourself against its harms. In an event that you have to confront a midlife crisis or an otherwise financial disaster in your life, an insurance scheme has the potential to be your life jacket. Provided that you are willing to invest whatever it takes into the insurance policies, there is hardly anything that you can’t have protected. But a wise investment is always the one that is priority based. Like any other investment, your eyes should be set on getting the most value at the minimum cost. But this can be difficult considering the myriad of insurance companies, a bunch of different types of insurance, and a wide range of packages that you can opt for. In order to make the task convenient for you and help you make an informed decision, here are the top 4 types of insurance that you must have.
1. Life Insurance
The importance of life insurance is not lost on many, and yet, unfortunately, only a handful of us choose to buy one. It’s disappointing to see how salesmen from the insurance companies have to spend hours on persuasion before they make a single sale as there is hardly anyone who wants to purchase life insurance voluntarily. Contrary to the popular belief, life insurance doesn’t have to be a financial burden that is forced onto your shoulders by a sales professional trying to make his living. There are several legit reasons why you must have life insurance.
To begin with, you need to realize that the average cost of the funeral can now easily be into the five figures. If God forbid, something was to happen to you, would you want your family to bear the financial suffering of the funeral and the burial? Isn’t emotional suffering already turning their lives upside down?
Furthermore, life insurance gives you peace of mind that your children will get the right education to be an independent and productive part of society even if you weren’t there to support them financially. It ensures that your family won’t have to reduce their living standard or that they won’t be pushed out of their home to pay the mortgage.
2. Health Insurance
A quick scan of your life will devise a whole list of stuff that you hold dear. It could be your property, your car, your business or any number of things. But here’s the thing; what if we take the health factor out of your life. Would you be able to see value in any of these things? This is a lesson in the importance of health. In all honesty, whoever said, “Health is the greatest Wealth” certainly knew what he was talking about.
As per a statistical estimate by a study conducted in Harvard, single adversity of a serious illness in your family has the potential to push you into bankruptcy. In the year 2007, 62% of total bankruptcies in the United States of America were reported to have an association with a health condition. Truth is, you never know the kind of health-related hardships which may come knocking at your door; which is why it is recommended to keep yourself and your family covered with the
right health insurance.
3. Property Insurance
Now that your life and health are properly insured, it is time to protect your worldly possessions which start with your home. Property insurance is a broad term that covers the homeowner’s insurance for people who purchase a house as well as the renter’s insurance for others who prefer to rent a house for living.
There is no argument over the fact that a house is the most valuable possession for just about any of us. As such, property insurance lends you a helping hand in protecting your most precious asset against a wide range of damages and even thefts. A word of caution, though; depending on the provider and the package that you choose, your property insurance may fail to cover the damage against the natural disasters such as earthquakes, fires, and floods, etc. In such an event, it is recommended to opt for additional insurance to expand the coverage.
4. Auto Insurance
Let’s go back to the statistics. The number of motor accidents in the United States of America is in millions annually. Thousands of them turn out to be fatal as well. The gravity of the situation has made it a requirement in multiple states to have Auto Insurance. If you are found without one either during the random verifications or in an event of an accident, you could be liable for an additional financial burden of a heavy fine that can amount to $1000 in value as well as the confiscation of your driver’s license.
While the valuation of the imposed fine can be huge, it will still be nothing compared to the cost of replacing your vehicle or having it thoroughly repaired. It is highly probable that you will have to dive into your savings account which is totally unjustified since auto insurance is more than capable of keeping you financially protected against the adversity of a motor accident.
Insurance can certainly look like an expenditure for the time being. Some may even call it a momentary financial burden. But considering the uncertainty of life, it is to be realized that by opting for this apparent burden in the present, you are essentially protecting yourself against a complete financial ruin in the long run. Remember, the cost of this investment is always negligible compared to the cost of living on the edge without insurance. Even if you can’t see it today, you’ll probably thank yourself for opting for one a few years later in your life.