Life is unpredictable and at any time unexpected can happen. Can we stop it? No. Can we save ourselves? Yes! Though it is impossible to stop misfortunes from happening, it is possible to take certain protective measures to save ourselves. Insurance is the only backup plan, we can craft today and make our future secure. Life, health, long term disability and auto are four basic insurances which every person should have.
Life Insurance
What will you leave behind for your loved ones, a couple of photos to mourn on, utility bills, loans, funeral expenses or a life insurance policy to secure their future? Life insurance becomes a must, if you are the only earning person in your house. To cover recurring expenses, burial expenses, and provide a back-up for your family, experts suggest that your life insurance policy should be 10 times the yearly income you earn. Your life insurance policy will be sufficient enough to cover not only your funeral expenses, but also suffice loans, mortgage payments, taxes, loans and credit cards. If you succeed in creating a backup which 10 times your yearly income, you can even cover future college fees of your child.
Health-Insurance
Health comes first! More than 62% of bankruptcies occurred due to health problems. Only a day in the hospital can cost you $985 to $2969. These statistics alone are enough to prove that your family is just one hospitalization away from bankruptcy. Though health insurance is getting less and less affordable, even a minimal policy can save you from getting financially ruined.
Auto-Insurance
More than 10 million traffic accidents took place in 2009 and caused 33,808 deaths. Not only accidents are dangerous enough to cause death but can lead to worse through hospitalization. In 2009, about 70 million dollars were spent on hospitalization and disabling injuries. Driving in an insured automobile will not only provide coverage for your recovery, but will also help you pay expenses of the other injured driver. Other possible threats like natural disasters, theft or vandalism are also covered under an auto insurance program.
Long-Term Disability Coverage
Long-term disability insurance is mostly ignored as most of us never considered the possibilities of becoming disabled. According to recent statistics, every 3 in 10 workers who enter workforce meet disability and retire from work by the age of 30. Even if one becomes injured and is disabled to work for three months, can the savings cover all financial and medical expenses? Can you survive through cancer without a good insurance program? Just think!
Income replacement policy is the optimal policy for those who meet disability and are unable to generate any revenue for a year or more. This policy replaces more than 50-60% of income and may vary with health, lifestyle and age. In short it will ensure, you get some income even when you can’t work. In such case, European health card can also be a good option of rescue and it provides quality medical care at low cost.
Conclusion
Though an insurance policy can cost you more than just a few dollars, but can save you from going complete bankrupt. Remember with a small chunk of savings you can buy a safe and secure future for you and your loved ones!