It’s time to learn about the types of insurance available in the market and you need to know about it right now.
Life is full of uncertainties especially now that the pandemic caused by the corona virus is not yet over. You might get infected, you might get hospitalized, you might even leave behind your loved ones.
That is why I am sharing this article to at least give some information about the types of insurance out there.
Basically, the types of insurance are life insurance, health insurance, long term disability insurance and auto insurance.
Now, let me share to you some information about each one.
4 Types of Insurance You Need to Know Right Now
The benefit of life insurance is that an insurance company pay the designated beneficiary with a sum of money upon death of an insured person.
The amount of money depends on the agreement between the insurance company and the insured person.
This money is used as a replacement of income of the deceased person so his or her family will not be burdened upon death of the insured person.
Most experts say that the amount of insurance one should get is ten times his or her annual income. This is to provide enough time for the family to cope up with the loss of their loved one.
The money is usually used for the funeral and for estate taxes.
Life insurance is used to protect your family you leave behind. Especially when your family depends on your income.
Health insurance is an insurance that covers the whole or a part of the risk of a person incurring medical expenses, spreading the risk over numerous persons.
It is defined as coverage that provides for the payments of benefits as a result of sickness or injury.
Health insurance sometimes includes insurance for losses from accident, medical expense, disability, or accidental death and dismemberment
A study found that a typical family is one serious illness away from poverty of bankruptcy. That alone should tell you that you need to but health insurance.
Finding sufficient coverage can be done by simply shopping around.
If you are employed, you might have a benefit of having health insurance provided by your employer.
Long Term Disability Insurance
Long-term disability insurance provides you with a monthly check to replace a portion of your income once your claim is approved, which can help lessen the financial impact of a covered disability as defined by Sun Life.
How do you know if you need a long term disability insurance? According to a study, people become disabled at some point.
Long term disability insurance can help cover living expenses when you cannot work anymore. Some policies includes mortgage.
Better yet, look for a policy that guarantees income replacement.
According to a study, the leading cause of death is by road accidents involving different kind of vehicles.
According to the latest WHO data published in 2018 Road Traffic Accidents Deaths in Philippines reached 10,624 or 1.74% of total deaths. The age adjusted Death Rate is 11.40 per 100,000 of population ranks Philippines #118 in the world. As seen on www.worldlifeexpectancy.com.
The cost of this accidents are enormous. And once you got involved in any of it, it will cost you large chunk on your budget just for a dent or a scratch.
What more if the accident is severe and lives are lost? This may be lead to a bankruptcy that will take a many years to overcome.
Driving without an auto insurance can be a costly mistake that haunts you for years.
And those are the 4 type of insurance that you need to know right now to guide you. I will be posting a list of insurance companies that might be your guide if you want to shop around. So stay tuned.
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I am not an insurance agent nor connected to any life insurance companies. And I am not going to have any referral fee if you buy from these companies.
This post is in series with:
Here is another resource for you to read: Benefits of getting insured