There are dozens of types of insurance out there; it can be confusing to know which ones you need and which ones you don’t. While the benefits of many of these insurance policies will depend on your personal circumstances, there are three types of insurance that everyone needs, regardless of their age. Keep reading to find out what they are, and why you need them.
Life Insurance
Life insurance is incredibly important. Regardless of your age, you should have a life insurance policy. Many people don’t realize that life insurance can still be beneficial, even if you aren’t supporting any dependents. At the very least, life insurance can help to cover your own funeral expenses in the event of your death, easing the financial burden on your surviving family. Life insurance can also help you build wealth, protect your assets, and provide for your family. Life insurance is less expensive the younger and healthier you are. There are multiple types of life insurance, including term life insurance and whole life insurance. Each type has its pros and cons, so before purchasing a plan, you should research which type would be best for you.
Disability Insurance
Many Americans plan on staying healthy their entire life—who wouldn’t? However, reality is much uglier than that idealistic belief. Studies show that over 25% of working Americans will experience either short or long term disability at some point in their lives. For this reason, you should invest in disability insurance. Personal disability insurance is available to anyone who works for a living. Social Security Disability is based on your average earnings up until that point. Before you purchase a disability insurance plan, you should first consider how much you will get from Social Security, and then add a private insurance plan if necessary.
Health Insurance
In addition to protecting yourself and your loved ones in the event of disability or death, you should protect yourself in case of injury or illness. Health insurance can protect you financially from high, unexpected medical costs. Health insurance is more than a backup plan to use if you’re sick. Health insurance will also reduce the cost of recommended preventative services that help you maintain good health and well-being. Taking advantages of these preventative services like regular checkups and screenings will help you prevent many more serious conditions in the future. Additionally, many health insurance companies offer wellness programs and discounts on health products.
Everyone should have a life insurance, disability insurance, and health insurance policy, regardless of their age. These insurance policies can protect you physically and financially.
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