The Ultimate Insurance Starter Pack

Insurance may seem like a luxury—an additional squeeze on your monthly budget you don’t feel is necessary. That is until a medical emergency arises and you barely have enough savings for the treatment costs. Or you are involved in a motor incident that requires you to divert your savings to repairs.

An insurance policy is an investment in financial security as you protect the things that matter most to you. It gives you some control over your future that offers some peace of mind, and it may not cost as much as you think. With some research, you can find a policy that will cover your essentials without stretching your budget.

Car Insurance

Driving without car insurance is taking a huge gamble, even if you’re the most cautious of drivers, as an accident could be caused by a third party who is not insured and refuses to accept accountability. And what happens if the damage is caused by fire or if a car is stolen? You will effectively be brought back to square one with your many thousands of dollars of investment going down the drain.

When shopping for car insurance, you might find the premiums are not set in stone. Aside from the fact that different insurance providers charge differently, premium amounts are affected by many factors. Chief among them is what exactly the policy covers.

Collision insurance will only cover damage to your car in the event of an accident. The premiums for this policy will be lower than for a comprehensive car insurance policy that covers damage to your car and the other party’s car if you happen to cause an accident.

Insurance providers also look at the age of the car owner along with their driving history. Premiums tend to be higher for younger drivers. If your driving record is littered with incidents, expect to pay higher premiums. However, if your record shows improvement over time, premiums will be reviewed and evaluated. So, don’t let a bad driving record stop you from getting auto coverage.

Life Insurance

One of the most beneficial things you can give your children is the ability to fend for themselves in the unfortunate event of your death. Although this is a topic no one enjoys talking about, it’s better to plan now. With a life insurance policy, your beneficiaries have a regular source of income to rely on when you’re no longer there to earn it.

There are two different types of life insurance policies: term and permanent life insurance. If your budget is a little tight, opt for the former. A term life insurance policy lets you choose the length of the policy. You can either renew it or let it expire at the end of that period.

Permanent life offers the option to either pay fixed or adjustable premiums depending on if you opt for whole or universal life insurance. Whole life insurance allows you to pay fixed premiums and receive the exact payout figure given in the policy on maturity. Universal life insurance allows you to pay premiums according to your level of income.

You can pay higher premiums when your cash flow is higher and reduce them if your situation changes. Unfortunately, this will affect the amount you get when the policy matures. Regardless of which option you choose, life insurance is essential.

Home/Renters Insurance

Homeowners insurance covers both the structure of your home and its contents, ensuring you get compensated in the unfortunate event your home is damaged by fire or weather extremes. Electronic appliances and other items in the house that get stolen or damaged are also covered. This insurance protects your home and its contents from claims by other parties.

Renter’s insurance or home warranties do not cover the home structure but cover appliances and systems within the home. You will get discounted repairs or subsidized replacement of items that are either stolen or out of order. You can combine your home insurance with other policies to reduce the hassle of maintaining multiple policies and bring down your premiums expenditure. As you decide if it’s better to bundle home and auto insurance, be sure to consider the provider’s expertise in both areas of insurance.

Health Insurance

Many employers offer staff and their families some degree of medical coverage. If you’re an entrepreneur looking to provide your staff with medical benefits, know the various group medical coverage packages available. If you’re self-employed, look at individual and family health insurance policies that fit within your budget, depending on your family status. Medicare plans will be of interest to workers and retirees who are past the age of 65.

Do Your Homework

Any insurance is an investment in you and your family’s future financial health and wellbeing. As with any investment, it’s wise to conduct thorough research before committing. It’s more than a simple quest for the cheapest available policy. Find out if the provider you’re considering has a good reputation for paying out claims and if they have experience in the kind of coverage you need.

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