Insurance is protection from the unexpected. It’s there to safeguard you financially in the event that you need some assistance due to an unforeseen, unfortunate event. Many different factors play into how much (or little) you might need including where you live, where you work, your age, number of children you have, and lifestyle. It can be difficult to determine exactly what insurance and how much of it you require for complete peace of mind.
Auto Insurance
Traffic accidents are the number one cause of death for Americans between the ages of 5 and 24. Every year, there are between 35,000 and 40,000 people killed in car accidents, and the economic costs involved are upwards of $240 billion. While not every state requires you to keep full coverage on your own vehicle, most states do have strict rules regarding the financial responsibilities due to an accident.
Driving without the required insurance can result in heavy fines, licence points, and financial accountability for those involved in the accident. Getting the best auto insurance in Ontario is important since it provides you with peace of mind with regards to various circumstances such as liability, natural disasters, vandalism, and theft.
When DUI’s and other infractions are involved such as several at-fault accidents, it can be difficult to obtain insurance. Filing for SR-22 insurance is the proper route to take to help get back on the road despite several strikes against you. An SR-22 is also called a Certificate of Financial Responsibility and helps high-risk drivers take back control of their transportation needs.
Life Insurance
The biggest reason to obtain life insurance is to help your loved ones cover your funeral expenses in the event of your death. Depending on your individual circumstances, the size of your family, their lifestyle, and if your family counts on your weekly paycheck for every day expenses, you may want to include coverage for daily living expenses, as well. Items to consider covering with life insurance:
- Future college costs
- Taxes
- Child care
- Mortgage payments
- Credit card debt
- Other outstanding loans
Whole Life. There are two basic types of life insurance - term life and traditional whole life. A whole life insurance policy covers an individual for the entirety of their life. It never runs out. The power of a whole life policy is that during the policy holder’s life, money is invested; accumulating funds and giving the policyholder the benefit of being able to withdraw or even borrow against their policy if they need to. Once the policy holder dies, their beneficiaries receive the funds.
Term Life. This type of policy insures the policyholder for a certain period of time, at a specifically agreed upon payout. When the term expires, the individual may renew the policy or not. There is no value to this policy other than the guaranteed death benefit, and is based on health, age, and life expectancy.
Health Insurance
Two out of every three bankruptcies are filed due to medical issues such as serious illness, bills, income loss due to illness, etc. Health insurance helps cover routine exams such as annual visits, mammograms, and lab work. There may be deductibles and co-payments involved, but generally, if a serious illness becomes an issue, health insurance is there to help cover otherwise exorbitant fees for the hospital, surgeons, and follow up doctor’s visits.
Employers often offer some type of health insurance coverage and it can be cost effective to participate. There is also health insurance available through various associations and trade organizations, and if all else fails, private health insurance is always an option.
Long-Term Disability Insurance
Becoming disabled is not something most people think will happen to them in their lifetime. And yet, statistics show that one in four Americans will, at some point, become disabled and unable to work. Health insurance helps people make their regular visits to see their doctor, but what about the day to day expenses that a regular, steady income would require? This is where long-term disability insurance comes in.
Both long and short term disability insurance is available. Consider, also, that any injury that did not occur at the workplace is not covered by worker’s compensation, so if long-term disability coverage is not in place, you and your family will be missing out on the regular income stream you provide. Generally, the cost for this type of insurance runs 1%-3% of your annual salary, and will pay out 50%-60% of your income.
All of us should hope for the best, but expect the worst. When you expect that at some point, accidents or illness will happen, it puts you more in charge of your life, and in control of maintaining your lifestyle for you and for your family. Always read the fi
