Getting the coverage you need in home, life, and health insurance
Getting the coverage you need in home, life, and health insurance is important for everyone. Having adequate insurance allows you to have coverage you when you need it, saving you from financial hardships that come along with certain life events. When getting insurance, you have to be sure that you get the right policy and the right amount of coverage. By doing this, you not only prepare for possible future events, but you can avoid paying more than necessary.
Home
Unless you pay for your home with cash, you will need to buy homeowner's insurance, since mortgage companies require it so that their investment is covered. When deciding how much coverage to get, there are few things to consider. First, think what your home would cost to replace it. Most people usually base this amount on just the house's value. However, you may want to get an insurance policy that replaces the items in your home as well, especially if you have expensive entertainment items, jewelry, etc. It does cost more, but you may think it's worth the expense.
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Most people think that home insurance is to protect you in case your home catches fire. While this is an important reason, you should also consider having flood insurance. Ask your insurance salesperson if you live in a flood zone; if you do, definitely get flood insurance. If you don't live in a flood zone, you may want to get it anyway since your home is about 25% more likely to flood than it is to burn down.
You can save money on your home insurance by having a higher deductible or by using the same company for your home and auto insurance. When shopping for the right policy, ask insurance salespeople about the different options and discounts available.
Life
Few people like to think about their mortality and thinking about death can be a sobering, sometimes uncomfortable notion. However, if you have a family that depends on you for income and care, life insurance is something you must have. Your family deserves to have the security should the worst happen.
There are two main types of life insurance: whole life and term. Whole life is insurance, plus some investment opportunities; term is just insurance. It is usually wise, except in certain circumstances, to do level term insurance for the amount of time desired (level term means that the monthly payment will stay consistent throughout the period you have it).
A good way to calculate the amount of coverage you should get is to multiply your yearly salary by ten. For example, if you make $50,000 a year, a $500,000 insurance policy would be adequate. This doesn't just apply to parents who work outside the home. Parents who stay at home, should also have a life insurance policy to cover the child care the stay-at-home parent provides.
Health
Health insurance is probably the insurance you will actually use the most, so you want to get the best coverage possible, but without too big of a price tag. To do this, you'll either need to shop around to different health insurance companies or talk to the human resources department (or whoever else is in charge of the company's health insurance) about the different options.
Getting health insurance through your employer is the best option. Even if the premiums seem a little high, keep in mind that buying it completely on your own can be a lot more expensive. Typically, the average employee who is paying for a plan that their employer carries usually only pays about 15-20% of the total cost. Since health insurance is such an important thing for everyone to have, especially if you have a family, it is worth considering switching employers if you current one doesn't offer a health insurance package.
After you've chosen the best coverage for you and your family, it is important to be revise it occasionally to meet the changing needs of those you insure. If you upgrade your home, the kids grow up, or you have a new health condition, you may need to adjust or change to different insurance plans to fit your needs. By staying on top of it and only getting the insurance coverage you need, you can save money and enjoy the security of being prepared for the future.
