fbpx

7 Types of Insurance Plans You Should Know About

Insurance can give us the peace of mind that day-to-day life can’t offer. You don’t want to live a fear-based life, but there’s a healthy skepticism when it comes to the “what ifs.”

We don’t know what will happen, when it will happen, or how it will affect us. But, here’s one thing we do know: insurance can help us when it counts.

Though every type of insurance won’t always make sense for every person, it’s important to know about which types are available so that you can consider what is best for you. As we watch television and see ad after ad about the different insurance companies and the various plans they offer, we’re left to wonder, Which ones do I really need?

Living in a time when insurance is available for just about everything, it’s difficult to discern which plans are most beneficial and where you should start if you want to make the most out of your current insurance budget.

Below, we’ve listed seven of insurance plans you should know about.

1. Life Insurance

Some find the topic of life insurance to be uncomfortable because it alludes to loss. While that’s natural, the topic isn’t loss but rather comfort. It’s the comfort of knowing that your family will not have to make difficult financial decisions in their time of grief. Your life insurance policy will ensure that your loved ones can remain financially stable after your passing. Life insurance also has the reputation of something you don’t need until a certain age when, in fact, the younger you are, the cheaper your life insurance will be.

2. Long-Term Disability Insurance

Another insurance policy that is often overlooked is long-term disability. Imagine that you sustain an injury that makes it impossible for you to continue working for a long period of time. This policy will protect you from financial devastation while you recover. Even if you are never able to work again, long-term disability will continue to pay. Like life insurance, long-term disability is a policy that you may not think you need…until you do.

3. Health Insurance

This one is a bit more obvious. Health insurance is something most all of us know we need. Unfortunately, we don’t always know how much. The goal of health insurance, especially with rising healthcare prices in the U.S., is to stay out of medical debt. The type of plan you choose is ultimately based on your health and financial situation.

4. Auto Insurance

We buy auto insurance because it’s legally required for driving a car. But, how much is too much? Auto insurance can easily become unnecessarily expensive, because we don’t know how much is practical, and we want to be as protected as possible. After all, unless you live in a large city with public transportation, we need our cars to do virtually everything. A financial advisor can help you determine a reasonable plan.

5. Long-Term Care Insurance

To protect your retirement savings, it can be beneficial to invest in long-term care insurance. Policies can be pricey, but this type of care is not usually covered by Medicare and is a heavy financial burden if paid without assistance. A financial advisor can help you determine how much long-term care insurance you may need.

6. Homeowners & Renters Insurance

Even if you rent your home, insurance can be a must. A homeowners or renters policy protects you from varying types of damage and theft. Your level of insurance depends on factors such as your home’s value and your location.

7. Identity Theft Protection

We’d love to think that our complex username and passwords would keep the cybercriminals at bay. While those preventative measures are definitely helpful and necessary, hackers sometimes find a way. The outcome of a hacker stealing your financial information could be as small as buying a meal at a restaurant and as large as buying a house. Aside from financial loss, resolving issues related to identity theft can last years.

Protecting yourself, your family, and your assets is at the top of your priority list. Make sure you are aware of these types of insurance and reach out to your financial advisor if you’re unsure of how much you need.

Contact Southwestern Investment Group today to speak to an advisor.

 

Legal Disclaimer

More Articles

  • Dobyns Wealth Team Sponsors the 2018 Men of Valor Breakfast

    February 12, 2019

    We are happy to be a Title Sponsor of the 2018 Men of Valor Breakfast.

    Read More

  • What Is Your Financial Purpose?

    July 17, 2019

    Michael Purifoy shares four questions you should ask when seeking to achieve your financial purpose.

    Read More

  • As Seen in the Nashville Business Journal

    February 10, 2017

    Financial resolutions: Two steps to help you toward financial independence.

    Read More

< Back to Resources