It is wise to own certain frequently owned and some not so familiar insurance types. A well thought out insurance protection plan can prevent the derailment of a lifetime of planning. Years of savings can be wiped out in seconds if you haven’t attended to this crucial aspect of prudent planning.
Few of us have enough disability insurance coverage or life insurance. An accident, a heart attack or a stroke can not only destroy our physical bodies but also devastate our finances.
From a dollars and cents perspective, a permanent disability hurts our families even more than death. You will still need to be fed clothed and housed. This can cause a big strain on a family’s finances. Income replacement insurance protection can replace lost income and keep you on track to reach your family’s goals.
Hospital and doctors insurance coverage is also important. Uninsured healthcare bills can cause financial ruin. This is a bigger factor than the job loss even during a recession.
Car insurance protection is fortunately very frequently owned. If your automobile is financed or leased your contract mandates that you have it. Even if you paid cash for your automobile, the law in your area probably mandates automobile insurance coverage.
A slick highway and a little speed speed could not only ruin a healthy body, but it may also destroy a otherwise well put together financial plan. Chances are you already have truck insurance but you may not have checked your liability limits recently. Make sure that your liability and medical payments limits are adequate to protect you.
Homeowners insurance coverage is also a very common type if insurance. If you have a mortgage, you probably have homeowners insurance coverage. Even if you don’t have a mortgage, you probably have insurance coverage for your home because you want an asset as big as your house to be protected.
Homeowners insurance coverage offers more protection than most people realize. You probably know that it could pay to repair or replace your house if it burns and that it offers protection if your things are stolen by a burglar. You probably also know that your home insurance protection may pay the healthcare bills of someone who gets hurt on your property.
What most people don’t know is that it may pay if your things are stolen when they are outside your home. It could also pay if your negligent actions injure someone far from your home. This money comes from the liability section of your policy. Make sure that your house owners liability limits are high enough to protect you.
If you rent, you can purchase apartment renters insurance coverage. Liability insurance is part of the standard renters insurance protection contract. This is crucial coverage to have.
If you are not able to raise your truck or house insurance’s liability limits high enough to adequately protect you, consider purchasing a personal excess liability policy. This is also known as a PELP or an umbrella policy. A personal excess liability policy enhances the coverage for the liability portion of both your car insurance and your house insurance.
Having insurance that covers more doesn’t have to be more expensive. With most types of insurance protection there are ways to reduce your premiums by letting the insurance company handle only the risks for the bigger things that you can’t handle. For example, With auto insurance coverage you can request higher deductible limits on your collision and comprehensive coverage.
Having adequate insurance coverage will not assure that you will reach your financial goals. However like an football player who is injury prone because of risks taken on the court or field, you may not reach your full potential if you fail to protect yourself. A lifetime of savings may become like dust in a second if you haven’t protected your family with the right type and amount of insurance protection.