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3 Most Critical Types of Insurance for Families

By on March 6, 2014 in Insurance

3 Most Critical Types of Insurance for FamiliesInsurance is an important piece of any family’s financial plan. Going without a critical type of insurance can leave you financially exposed to the likes of lawsuits and damages so severe you can never recover.

Thanks to this the insurance industry has come up with millions of reasons to sell you every type of insurance under the sun. While some of these polices are important, many of them are overkill or are simply unnecessary expenses. How can you know which policies you absolutely need?

The 3 Most Important Types of Insurance for Families to Have

These three could really go in any order. They are all at the top of the list in terms of importance. Other types of insurance should be seen as optional, but you absolutely need these three types of insurance to protect you and your family.

Health Insurance

Without your good health, nothing else in life matters. Health insurance doesn’t have to be expensive. You can get health insurance quotes online to do price comparisons.

Even if your health insurance quotes come back on the pricey side they are worth it. Going without is too great a risk to take. While going without other types of insurance can put you or your family in a bind, health insurance is one of the only ones that can ruin your finances with one single event.

All it takes is one trip to the emergency room that results in an extended hospital stay to put you hundreds of thousands of dollars in debt if you don’t have health insurance.

Disability Insurance

Likewise, going without disability insurance is just too risky. Your family is dependent upon your income. If you become disabled you not only lose that income but your expenses go up due to the disability.

Instead of a one time event like landing in the hospital or dying, a disability is a long term financial stress to your family.

You can dampen the cost of a disability insurance policy by extending out the time before benefits kick in. A six month delay in disability coverage will greatly reduce the cost compared to a 15 or 30 day delay.

There are different types of disability insurance: short-term and long-term. You want a long-term policy that will last until you turn age 65.

Life Insurance

Lastly, life insurance is a critical piece of insurance for your family. There are different types of life insurance offered ranging from term life to whole life, universal life, and permanent life insurance.

Term life insurance is the cheapest and most simple solution; it comes recommended as the best option for you to provide adequate life insurance coverage for your family.

Other types of life insurance try to mix investing in with your life insurance. These options are much more expensive, are more confusing, and have considerably more fees if you ever try to get out of the contract.

Term life insurance is very simple and extremely affordable at any age. The younger you get a policy the longer you can lock in an affordable rate for all of your life insurance needs.

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