At some point, everybody needs access to certain insurance policies. Read about those policies in this helpful breakdown.

Three Types of Insurance Policies Everyone Needs

Even the best planning can’t guarantee your health. That’s why we have insurance policies. 

While insurance isn’t the most exciting thing to talk about, it is vital to ensure the safety (and peace of mind) of you and your loved ones. Despite this, many people find themselves confused and unprepared when it comes to insurance policies. 

Not to worry! We’ll guide you through the process and give you the information you need to make smart decisions about your insurance. Read on to learn the three types of insurance policies that everyone needs. 

Why Insurance is Important

Looking into insurance policies can be the source of much anxiety. Although this fear is understandable, it’s misplaced. The purpose of insurance is to protect one’s assets and ensure financial stability. 

Most people aren’t able to spend a significant amount of money in the event of an emergency. Fewer than 40% of Americans would be able to come up with $1,000 in the case of an emergency. 

Insurance takes the stress of not knowing how you’ll afford costly emergencies and allows you to focus on more important things. 

What Insurance Policies Should I Look Into? 

While some insurance policies are dependent on your lifestyle (like auto or homeowner’s insurance) there are certain things that everyone needs to plan for. The most important of these are health insurance, long-term disability insurance, and life insurance. 

1. Health Insurance 

Healthcare is expensive, especially in the United States. Most people aren’t able to pay out of pocket. 32% of adults are forced to postpone the medical treatments they need because they can’t afford them. 

Health insurance provides a much-needed safety net in the event of a medical emergency and helps to prevent medical bankruptcy. 

2. Long-Term Disability Insurance

No one can predict when they might have an accident that leaves them unable to work. That’s where long-term disability insurance comes in. 

In the event that a person is injured and unable to perform their job (or, in some cases, any job) long-term disability insurance protects them by paying a percentage of their salary while they recover. An added benefit is that you don’t have to be injured on the job for the policy to kick in. 

3. Life Insurance

Perhaps the most important policy, life insurance takes care of your loved ones in the event of your passing. A life insurance policy will make sure your family doesn’t suffer financial hardship and are able to pay for burial and funeral costs. 

Life insurance settlement companies can help you in the event of financial difficulty before your passing too. If you find that the policy no longer covers your needs, you can sell it and use the money for anything you need. 

Making a Decision

Insurance policies can be intimidating or confusing, but having the right protection in place goes a long way in guaranteeing the financial wellbeing of you and your family. 

Don’t wait until you face a crisis. Start looking into insurance policies for you and your family today. 

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