• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Business
  • Commerce
  • Management
  • Insurance
  • Banking Finance
  • Marketing & Advertising
  • Tech

Business Finance Articles

Your First Financial Choice....

  • Education
  • Career
  • Investment & Money
  • Accounting & Taxation
  • Transportation & Logistics
  • Industries

Types of Insurance Policies Everyone Should Consider Owning

Last Updated on September 22, 2023 By Jason Obrien 1 Comment

Paying for insurance, when you don’t necessarily need it, on a monthly basis can be a real hassle. Don’t be fooled into thinking that you are paying for nothing even though it may seem like that to you. Insurance is crucial when it comes to things on the defensive side of your game plan in this situation, even though it may not be as visually appealing as something like your debt snowball.

Consider insurance as a life vest. When you don’t need it, it hurts, but when you do, you are incredibly grateful to have it. Here, risk transfer is the key concept. Without insurance, a single auto accident, illness, or emergency could leave you with a significant financial mess.

Table of Contents

  • Car Insurance
  • Homeowner’s Insurance
  • Life Insurance
  • Health Insurance
  • Long-Term Disability Insurance
  • Final Thoughts

Car Insurance

In most places, having auto insurance of some kind is required by law. Reasonable car insurance is something you shouldn’t avoid, even if you aren’t required to have it and you drive an old clunker that has been paid off for years. You may face a lawsuit that could cost you everything you own if you cause an accident and someone is hurt or their property is damaged. Accidents occur suddenly, and the outcomes are frequently tragic. You save very little money and put everything you own at risk if you have no auto insurance or only purchase the minimum amount of coverage.

Homeowner’s Insurance

The cost of replacing your home is high, but the process might go more smoothly if you have the appropriate homeowner’s insurance. When looking for a policy, look for one that includes coverage for the cost of living elsewhere while your home is being repaired, as well as the replacement of the structure and its contents.

Since you already own the land, the cost of rebuilding doesn’t need to include the actual cost of the land. The cost to replace your home could be higher or lower than what you paid for it depending on its age and the amenities it has. Find out how many local builders charge per square foot and multiply that amount by the volume of space you need to replace to get an accurate estimate. Make sure you calculate the potential price of upgrades and extra features and verify once again that the insurance policy will pay for any liability for accidents that might happen on your property.

Insurance Policey

Life Insurance

Life insurance should be high on your list of necessary insurance policies if your parents, spouse, kids, or other loved ones would suffer financially as a result of your passing. Consider how much you make annually (and how long you intend to work), then buy a policy to replace that income in the event of your untimely death. Make sure you include the cost of burial as well, as many families struggle with this unexpected expense.

Should You Wait to Buy Life Insurance

Health Insurance

Health insurance is increasingly important due to the rising costs of medical care. Even a routine trip to the family doctor can incur a sizable expense. In fact, a bill for more severe injuries that necessitate a hospital stay may exceed the cost of a week at a five-star resort. Surgery-related injuries can be as much as five-figure costs. Although almost everyone finds the cost of health insurance to be prohibitive, the potential cost of not having coverage is much higher.

Long-Term Disability Insurance

Because it is so terrifying, some people choose to ignore the possibility of long-term disability (LTD). Although we all wish that nothing like that will ever happen to us, putting your future financial security in the hands of hope is not a wise move. Instead, pick a disability insurance plan with sufficient benefits to allow you to maintain your standard of living even if you are no longer able to work.

When an insured person suffers from a covered disability, long-term disability insurance pays out an amount that is equal to a portion of their salaries, such as 50% or 60%. In most cases, long-term disability starts when short-term disability ends. To be eligible for benefits, a disability must have developed after the policy was issued and, typically, after a waiting period. You must submit medical data to the insurer with a doctor’s confirmation.

Final Thoughts

Losses are a part of life, but how much they affect us and our beloved ones depends on the loss. By providing financial benefits for covered losses, insurance lessens the impact. There are numerous insurance options, but some rank at the top in terms of significance, such as home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Filed Under: Insurance

Reader Interactions

Comments

  1. Michael Fallquist says

    September 8, 2022 at 1:16 pm

    These are all worthwhile insurance policies to own, though some will be more relevant than others. This is where working with an insurance agent can prove useful.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Transparent Customer Transactions

In today's digital age, ensuring the security and … [Read] about 6 Tips for Secure and Transparent Customer Transactions

peson using laptoop

Are you filled with ambition to build a business … [Read] about 4 Steps Quick Beginner’s Guide to Easily Sell Products Online

How does Blender Make Money

We are out of the era where artists, video … [Read] about How does Blender Make Money?

How-Does-Digit-Make-Money

In a dynamic business environment, where … [Read] about How Does Digit Make Money?

workers doing there work

The COVID-19 pandemic has ended, changing the … [Read] about Unlocking Workplace Harmony: Balancing Control and Autonomy

technology

In an era where digital exchanges evolve rapidly, … [Read] about Harnessing WBT: The Future of Digital Exchanges

business managment

As a business owner, you should be familiar with … [Read] about Essential Tips for Effective Performance Management

Nicole-Junkermann-and-Lynn-Good

Gone are the days when people thought the business … [Read] about Nicole Junkermann and Lynn Good: The Powerful Ladies in Business Era

happy man hand holding the box

The business landscape in 2023 is vibrant and … [Read] about Dropshipping as a Side Hustle in 2023: How to Get Started

Tax documents on the table

Airbnb has revolutionized the hospitality industry … [Read] about Mastering Tricky Tax Terrain: The Importance of an Airbnb Tax Accountant in the UK

Non-Profit

In the dynamic business environment, the … [Read] about How Does a Non-Profit Make Money?

mental health a girl

Young adults frequently regard life as an exciting … [Read] about The Importance of Preventive Care for Young Adults

risk management

CFA is a widely recognized investment management … [Read] about How Hard is CFA Level 1

afterpay make money

In the modern era maintaining a high living … [Read] about How Does Afterpay Make Money?

Chime-Make-Money

Let’s admit it, dealing with essential tasks in … [Read] about How Does Chime Make Money?

Footer

  • About US
  • Contact Us
  • Blog
  • Comment Policy
  • Terms & Conditions
  • Privacy Rights
  • Privacy Policy
  • Follow Us On
  • – Google News
  • – Facebook
  • Entrepreneur Skills
  • Business Cycle
  • Business Ideas
  • App Makes Money
  • Be Wealthy
  • Psychology in HRM
  • HRM in Business
  • Businessman Qualities
  • Salespeople Types
  • Health & Business
  • Business Success Rules
  • Stress At Work
Copyright © 2018-2022 BFA