The unexpected is known to happen at times. Insurance is the best way to safeguard yourself financially. There are many different insurance packages that you can purchase via Miller Hanover Insurance. It may be challenging to determine what insurance you need. This article will list the four types of insurance policies that everyone needs. The types and amounts of appropriate insurance for an individual are determined by lifestyle, age, children, and employment benefits. Read on to learn more about the insurance services that will come in handy. 

Life Insurance

A 2021 study conducted by the LMRA (Life Insurance and Market Research Association) discovered that more than 50% of all American households depend on two breadwinners. The study also revealed that more than 25% of these households would face significant financial challenges within one month of a breadwinner’s death. All responsible breadwinners ensure that they have life insurance to cover their loved ones in a tragedy.

A life insurance policy has multiple benefits to offer. The most important one is that it provides for any loved ones you leave behind. Knowing that those who depend on you will have stability when you are gone provides immense relief. Experts recommend getting a life insurance policy that amounts to approximately ten times your annual income. However, the policy can be adjusted to meet your current budget and upgrade whenever you want. 

Term life insurance and traditional whole life insurance are the two common kinds of life insurance. Traditional whole life insurance policies serve as an income tool and an insurance instrument. All you need to do is ensure that you keep up with your monthly premiums and that the policy is effective throughout your life. A term life insurance policy will cover you for a predetermined period. 

It is advisable to rely on professional advice when selecting a life insurance policy because there are many other differences between the two policies. The right type of policy for you will depend on your occupation, age, number of dependents, and budget. 

Health Insurance

Health insurance is crucial to your financial security. A study conducted in 2019 by the American Journal of Public Health proved that most families are one severe illness away from bankruptcy. The journal discovered that more than two-thirds of the 900 Americans who had to file for personal bankruptcy between 2013 and 2016 were compelled by loss of income due to illness or overwhelming medical bills.  

Even though rising co-pays, increasing deductibles, and reduced coverage have made health insurance quite expensive, it remains necessary. No matter how low your budget is, it is advisable to consult a professional and find out if you can afford an insurance policy. Even a minimal policy is better than none at all. If your employer does not provide health insurance, consult your trade organization for group coverage options.

Long-Term Disability Coverage

Did you know that the Social Security Administration statistics show that a quarter of all workers entering the workplace will become unable to work before retirement due to disability? Facing early retirement due to disability leaves workers unable to provide for their dependents adequately. Even workers with good health and life insurance policies will likely face financial hardship. 

If your employer does not offer long-term disability insurance cover, you should consider consulting a professional about a policy that guarantees income replacement. Most long-term disability policies pay about 40% to 70% of your income. You can expect the policy to cost about 1% to 3% of your annual salary. Do your research and ensure you pick a policy that offers you the best coverage for an affordable premium.

Auto Insurance

Most states require drivers to purchase auto insurance that covers any loss in the event of an accident. There are serious legal consequences for not getting auto insurance in such states; these include suspension of your license, points on your driving record, and cash fines. Even if you live in one of the few states that do not mandate auto insurance, it is highly advisable to buy a policy. The National Highway Traffic Safety Administration stated that in 2020, police recorded about 5.25 million car accidents. 

Driving without auto insurance is dangerous because you will be financially liable for any loss that results from a car accident. Auto insurance will also protect your car against vandalism, theft, or damage due to a natural disaster. The cost of your auto insurance will depend on your unique circumstances.