An insurance policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses.

Protecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without. 

1. Long-Term Disability Insurance

The prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that "nothing will happen to me," relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that provides enough coverage to enable you to enjoy your current lifestyle even if you can no longer continue working. 

Long-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when short-term disability ends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration.

Most long-term disability insurance policies categorize disabilities as own occupation or any occupation. Own occupation means the insured, due to di𓄧sability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified.

Similar to short and long-term disability insurance, 澳洲幸运5官方开奖结果体彩网:workers' compensation, or workerꦅs' comp, it pays a monetary benefit to workers who become injured༺ or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence.

While long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working.

2. Life Insurance

澳洲幸运5官方开奖结果体彩网:Life insurance protects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities. Think about how much you earn each year (and the number of years you plan to remain employed), and purchase a policy to replace that income in the e🃏vent of your untimely demise.

3. Health Insurance

The soaring cost of medical care is reason enough to make health insurance a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs. Although the cost of health insurance is a financ🙈ial burden for just about ๊everyone, the potential cost of not having coverage is much higher. 

4. Homeowners Insurance

Replacing your home is an expensive proposition. Having the right 澳洲幸运5官方开奖结果体彩网:homeowners insurance can make the process leꦫss difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired. 

Keep in mind the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the 澳洲幸运5官方开奖结果体彩网:cost to replace it could be more or less than the price you paid for it. To get an accurate estimate, find𝓡 out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure the policy covers the cost of any liability for injuries that might occur on your property.

Renters Insurance

Renters also need peace of mind that they will be made whole in the event of a loss. Fortunately, 澳洲幸运5官方开奖结果体彩网:renters insurance is a type of property insurance available to people who rent or le﷽ase properties. This insurance provides coverage for personal belongings, liability, and additional living expenജses for covered losses.

For one property, there may be two types of property coverage: homeowner's insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets.

Although renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments. Because renters are not responsible for insuring t♓he dwelling or other structures, coverages 🦋A and B are often set to $0.

Coverage C covers the personal property of the renter. Coverage D provides add🍒itional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission.

5. Automobile Insurance

Some level of automobile insurance is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip. If you are involved in an accident and someone is injured or their property is damaged, you may be ඣsubject to a lawsuit that could cost you everything you own. Accidents happen quickly and the results are often tragic. Having no automobile insurance or purchasing only the minimum required coverage saves you only a tiny amount of money and puts everything else you own at risk.

Shop for Insurance Carefully

Insurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs𝐆 and don't sign on the dotted line until you are happy🤪 with the purchase.

Consider enl🍒isting the service of an insurance broker as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several o🦩ptions so you can compare features, provisions, and rates. Be in control of 🌱your protection by being well-informed to make a decision.

Frequently Asked Questions (FAQs)

The Bottom Line

In life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top theꦓ charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.