Protecting the most important assets that you value is a crucial step in creating a solid personal financial plan. Getting a plethora of insurance quotes (to compare plans) and engaging in the right insurance policies will go a long way toward helping you to safeguard your possessions. You only need a handful of policies to protect your hand work and also so as to live a happy and a comfortable life. Some of the insurance policies you need for that include:
a) Life Insurance
Having a life insurance will protect the people that depend on you financially. Your spouse and your kids can face financial hardship if you eventually die. But having a life insurance, your family will not have to suffer due to your death. There different types of life insurance which include: Whole life policy – where the premiums are paid throughout life and the sum insured becomes payable only at the death of the insured. This policy is meant to benefit the beneficiaries and not the insured. There is also the endowment policy which runs only for a limited period or up to a certain age. In this case, the sum assured becomes payable when the insured reaches a certain age or after the expiry of the fixed period.
b) Homeowners Insurance
Replacing your home after an occurrence of a hazard is very expensive, but having the right home owners insurance can make the process easier. When you are shopping for a policy, it’s important to look for one that covers replacement of the structures, contents and the cost of living somewhere else while your home is being repaired. The insurance policy is a must have when you have a mortgage. Also, in case you borrow money from the bank to purchase a home they will require the asset to be insured.
c) Health Insurance
This is one of the most important types of insurance policies that one should have. Your stable health is what allows you to work so as to earn and enjoy life. In case you become critically ill or get involved in an accident, you might fail to receive health attention or be in debt to the hospital. Employers should provide health insurance benefits to the employees. In case the employer does not offer health insurance or you are self-employed, it’s still important to have your own health insurance.
d) Auto Insurance
This is a type of insurance policy that is required by law in most places. The reason for having auto insurance is to cover the replacement of an expensive asset (any part of your car). Even if it’s not a requirement by the law and you are driving, you should have auto insurance since accidents might occur. Most of the auto insurance policies cover bodily injury or death of another person in an incident that you are legally responsible.
They are also known as the insurance agents who sell or negotiate insurance for compensation. They are the retail side of insurance and some insurers underwrite insurance only through the brokers who obtain raw data from layman customers and fill the complex forms which the insurers need so as to assess the risk thoroughly.