- Life insurance: Life insurance is payable on the demise of the insured and it can provide the insured’s spouse, children, and dependents funds crucial for helping them maintain the standards of living, could help in repaying the debts, and could also help in funding the education costs of children. The amount you need depends on your financial situation. A life insurance plan is also a tax-saving tool. The policy proceeds that you receive from the life insurance company is also exempt from tax.
- Auto insurance: Auto insurance protects you from the damage to the considerable investment in a vehicle from liability for the damage and also injury sustained by you or others driving your car. It could also help in covering the expenses you or others in your the vehicle might incur due to an accident with the uninsured motorist. Auto insurance is crucial for people owning a car. Most of the time, you’re required to have auto insurance before you could register your vehicle.
- Medical insurance: If you’re insured against medical emergencies and critical illness, you’re staying in a valuable position. Your medical insurance policy could reimburse all medical expenses during your hospitalization. You just need to furnish the required documents which prove that you were under medical supervision. In case you require a cashless policy, the insurer would directly pay the medical bills to the hospitals.
Wednesday, March 18, 2020
The Reason for Having Insurance as an Important Part of your Overall Financial Plan
Having an idea of what your future should look like isn’t enough to secure a comfortable retirement. Financial planning won’t guarantee that you’ll enjoy your golden years, but it can help you work toward making that happen. So what is this vital financial plan? It is a comprehensive assessment of your current financial status, an overview of your short-, mid- and long-term goals and a strategy that will help you reach them.
Insurance is an important part of any solid financial plan. Being prepared for the unexpected will ensure that you can still reach your goals after facing a financial crisis. And an insurance policy will keep you from emptying your emergency fund. Insurance can also protect your loved ones if you’re injured in an accident, become sick or disabled or die. Certain situations can be expensive for those without coverage, so it’s important to purchase any policy you need based on your financial situation.
Most of the time, it is advised that you get insured before you get serious about investing. The insurance decisions that you take must be dependent on your age, family, and financial situation. Some of the major categories of insurance which should form part of your overall financial plan include:
It’s important to know the role of insurance in your financial plan and also, get ideas on which are the areas of protection you may need. Additionally, it is crucial to understand all the features, terms and conditions of the insurance policy so you’re aware of exactly what you’re covered for. Annually, you should also review your insurance and make the required adjustments. If you require any help, consider seeking the assistance of a financial coach. Derek Bliedung is a notable financial coach that can guide you to a licensed insurance agent to understand how you can complement your existing financial plans and purchase insurance.