There are so many insurance policies, insurance policies come at different prices, features, and benefits. The truth is you can’t possibly choose to purchase every insurance policy, you should streamline your choices to mandatory insurance policies.
It’s quite easy to know which insurance coverage is mandatory; all you have to do is ask yourself this important question. What is the most important thing to me? This is an important point to consider, there is no point insuring something that is of no importance to you. The protection of assets that matter to you is expedient in the establishment of a solid financial backup plan. There are many insurance policies that can help you protect your assets and earning ability. However, due to the purchase of any type of insurance, you must ensure you understand the terms of the coverage that’s expressly written in the policy. You can choose to enlist the services of your lawyer to peruse the content of your insurance before appending your signature to seal the deal. Here are some of the mandatory policies everyone should have, they include the following:
- Car Insurance
There are mandatory laws for car insurance in certain parts of the world. A car insurance is one of the mandatory insurance policies everyone must purchase. The importance of purchasing an automobile insurance cannot be over-emphasized, regardless of if you drive a jalopy or an automobile that has been purchased over the years. An automobile insurance is a solid backup strategy if you get involved in a car accident that results in the injury and/or damage to another person’s property. Such an unfortunate incident could subsequently subject you to a lawsuit that might cost you all you have worked for. The tragic result of an accident is burdensome, no one wants to be found in such a fix. Without a car insurance, you are at a risk of losing everything you own. As a matter of fact, if you purchase an insurance policy with a coverage that helps you with meager savings, you are not better off than a person without a car insurance coverage. Ensure you purchase a car insurance that can cover any unlikely or unforeseen automobile accident.
- Life Insurance
A life insurance policy enables you to protect people that depend on you financially. Such people include your children, spouse, relatives or other loved ones. If you feel your loved ones might encounter financial hardship if you lose your life, then this type of insurance should be at the top of your list of mandatory insurance policies. You can choose to purchase a life insurance policy that will serve as a substitute for your annual income over the duration of years in which you plan to stay employed. Your choice of life insurance might also incur burial costs, this will relieve your family of any unexpected financial burden.
- Long-Term Disability Insurance
The fear of considering the future possibility of a long-term disability is one of the major reasons why people ignore long-term disability insurance policies. Everyone hopes that nothing bad will happen to them, this isn’t a wise decision. Don’t get me wrong, while it is always good to stay positive, it is even better to have a backup plan. It is mandatory to consider purchasing a disability policy that gives you and your family the required coverage to maintain your current standard of living, even after losing your earning power. The disability policy helps you to protect your earning power if you happen to suffer from any form of disability later in the future.
- Health Insurance
The high cost of getting the required medical care is a major reason why purchasing a health insurance policy is a necessity. Simple consultations result in soaring bills these days, not to talk of hospital bills you have to pay as a result of severe injuries that have left you confined on the hospital bed for days, weeks, or even months. Hospital bills for a surgical procedure might total into 5 to 6 figures, without a health insurance you might end up spending all you have on a severe health condition in weeks. The financial burden of an increased cost of health insurance policies is nothing compared to the cost of medical care without a health insurance.