I turned 30 this year and I still can’t believe it. I think as a kid, you see 30 as a milestone and society also makes it that way, but really when you get there, it’s not that much of a big deal. But no matter how I feel or how you feel now that you’re in your late 20’s or in your 30’s, there is one fact that’s certain: we’re all now adults – have been for a while – and we have responsibilities. Among the responsibilities, insuring that assets are protected and the financial stability of the ones we care for is safe is imperative. When reviewing your personal finances, you may find that the need for insurance is becoming more important than it was just a few years ago.
On the basic level, most people get some sort of life insurance through their employer. It will usually cover up to the individual’s yearly income in case of death or disability. If you are single and don’t have much responsibility, this may be sufficient. However, at some point in the future, you may start looking for additional types of coverage. In my experience, marriage and the birth of a kid are important milestones which drive a lot of individuals to insurance coverage. When I was studying to acquire my life insurance license, I realized that disability was a big factor in families struggling financially. When one person or the breadwinner is not able to perform their job anymore, it takes a toll on the stability of the household. Specifically for disability insurance, resources such as www.longtermdisabilitylawyer.com/insurance-companies/prudential/ can help you understand what it entails and answers any questions you may have.
Though it is important to understand what different types of insurance offer you, let’s review the common ones; the ones you are most likely to shop for soon. Should you invest into them?
If you are an automobile owner, you must get car insurance coverage. In fact, you may get in trouble if you are caught by law enforcement without one. It is crucial to be insured and after all, your expenditures following an incident can wreck your finances.
I see a lot of car insurance commercials which advertise very low insurance premiums. I have not tried any of them and I am not familiar with their coverage details. Nonetheless, I would suggest that, like anything else, ‘you may get what you pay for’. Your health, your safety and your life are too important to cheapen them. Shop around, ask friends, read reviews and go with the coverage that fits your needs and your budget the best.
Conclusion: Having car insurance is not negotiable, it is necessary.
As I mentioned above, outside of a coverage offered by an employer, the average person is interest in life insurance when they have a dependent, spouse or child. The cost of life insurance is influenced by many factors including your age, your current health, the type of job you work, the geographical area you live in etc. There are also several types of life insurance and your advisor may recommend one or multiple coverages.
In general, the cost of life insurance does not vary much from one company to the other unless there are some added features to the kind of policy you choose. So, it is important to do your own research and pick a company that you trust and that will keep their word. Many consumers will usually go with an insurance agent they’ve known or were referred to.
Conclusion: Life insurance is necessary when you have dependents but you could live do without it.
As soon as a renter moved into his new home, he called his insurance agent and inquired about home insurance. You’re probably chuckling at this statement but so many renters think they have to get home insurance. I did at one point in my life too. However, the landlord (owner) is the one investing into home insurance – because he owns the home. You should get a renter’s insurance to protect your assets – if you think they’re worth the investment – but again shop carefully. Some contracts may require that you acquire renter’s insurance while others don’t specify.
Buildings and home insurance is for the homeowner. In my opinion, home insurance is a necessity. Even if you think you don’t need it, your lender may require it.
Conclusion: Home insurance is necessary when you own a property.
Recently, a friend of mine was on a cruise and while visiting the Bahamas, he had a motorcycle accident. Thankfully, the travel insurance covered some of the costs and the fact that he has to take a separate flight back home. Not having travel insurance in his case could have been devastating.
It may not be a legal necessity to get travel insurance but it’s something that you should consider when you travel far or overseas through a travel agency.
Not all insurances are created equal and not all of them are going to be essentials. The key? Do some research to pick the right one.
Conclusion: Travel insurance is not always necessary but it is useful. You should get it when traveling overseas, especially when alone.
Phone and electronics insurance.
With phone and other electronics being so expensive these days, many companies offer insurance to replace them in case of damage. With coverage ranging from $5 to $12 per month, my opinion is that it is not necessary and honestly a waste of money. At $12 per month, you will have paid almost $300 after 2 years. By the way, insurers will require you to pay a deductible each time you submit a claim.
It’s not a lot of money but why not invest it elsewhere. They key is to take care of your devices and when it comes to phones, invest in a reliable protective case.
Conclusion: Invest the funds elsewhere. Phone insurance is not necessary.