Insurance Policies When You Need It Most

Insurance is like a life jacket. It is a nuisance when you don’t need it, but when you do need it, you are more than thankful to have it. Without it, you could have a wrecked car, suffering for illnesses or house fire away from drowning not in the ocean, but in debt.

Insurance is so essential to our financial well-being so we have listed down the types of insurance policies you must have.

While each one is a must-have, we are here to help you find the right type of insurance customized to your needs.

1. Auto Insurance

Never drive around uninsured not just because it’s against the law, but also because the Insurance Information Institute reports the average loss per claim on cars is around $4,900. Imagine having to pay that kind of money out of pocket! There are several options to choose from when it comes to auto insurance, so there’s no reason to go without it:

Liability coverage. This covers the cost of other drivers and vehicles or any injury in the event that you cause an accident.

Collision coverage. This covers the cost to repair or replace your car if it’s damaged in an accident with another vehicle or object, such as a fence or a tree

Comprehensive coverage. This covers the replacement or repair of your vehicle if it’s stolen or damaged in an incident that’s not a collision such as fire, flood, vandalism or falling objects (like a tree or hail).

2. Homeowners/Renters Insurance

Homeowners coverage provides financial protection against loss due to disasters, theft and accidents.

Be sure your Homeowners policy includes Extended Dwelling Coverage. The insurance company will replace or rebuild your property even if the cost exceeds your policy’s coverage. There is a limit to how much they’ll pay, usually 20 to 25% above the amount you’re insured for unless you opt for this option.

Note about homeowner’s insurance: Check with Salt Lake City Financial Network Insurance Agency about what your policy covers and what it doesn’t. We provide the best insurance products to choose from like Auto Insurance, Life Insurance, Home Insurance and Business.

• Flood Insurance. Most homeowners don’t know that flood insurance is excluded from their policies. Flood insurance is also different from water backup protection. Ask your agent to go over the details with you.
• Earthquake Coverage. Depending on where you live in the country, earthquake coverage might not be included. If you need it, check with your agent to include it.

Renters Insurance it’s up to you to replace your renter’s belongings if they are lost in a fire, flood, burglary or some other disaster.

Note: Salt Lake City Financial Network Insurance Agency can walk you through the steps of covering the basics of both homeowners and renter’s insurance.

Remember, if your full emergency fund is in place, you can take a higher deductible and lower the premium on your policy to save money.

3. Umbrella Policy

Umbrella insurance provides coverage when your homeowners and auto insurance policies coverage goes beyond the limits. It provides an additional layer of security to those who are at risk for being sued for damages to other people’s property or injuries caused to others in an accident.

For example, if you’re at fault for a multiple-vehicle accident, medical bills and property damages could quickly add up to more than your auto insurance will cover. If you’re sued, your savings, your home could be at stake.

4. Health Insurance Policy

Medical debt contributes to nearly half of all bankruptcies in America. If you’re uninsured, you’re leaving yourself vulnerable to potential financial catastrophe. One unexpected major medical emergency could amount to hundreds of thousands of dollars of expenses. Don’t put yourself in that situation.

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.

The high cost of medical insurance isn’t an excuse to go without coverage even if you don’t go to the doctor often. One option is a high-deductible health insurance plan combined with a Health Savings Account (HSA). With a high-deductible plan, you’re responsible for more of your up-front healthcare costs, but you’ll pay a lower monthly premium.

A high-deductible health plan qualifies you to open an HSA a tax-advantaged savings account specifically for paying medical expenses.

5. Long-Term Disability Insurance Policy

Long-term disability insurance is an insurance policy that protects an employee from loss of income in the event that he or she is unable to work due to illness, injury, or accident for a long period of time.

Don’t think a permanent disability could sideline you and your ability to work? According to the Social Security Administration, just over one in four of today’s 20-year-olds will become disabled before reaching age 67.

Those odds are too high for you to skimp on long-term disability insurance. If you’re in your prime wage-earning years, a permanent disability could potentially derail your dreams of home ownership or paying for your kid’s college.

Bottom line: make sure you’re covered. Many insurance companies offer long-term disability insurance to their employees, so start there. Talk with Salt Lake City Financial Network Insurance Agency for their Insurance Products tailored for you.

6. Term Life Insurance Policy

Many of us take life insurance too lightly. If you were to pass away unexpectedly, how would your spouse pay for monthly expenses without your income? In the dark moments of grief, the last thing your spouse should worry about is surviving financially in your absence. With a term life insurance policy for 10 to 12 times your yearly income, your family won’t have to worry about making ends meet, losing their home or changing their college plans if you’re not there to provide for them.

Make this a priority. Talk to Salt Lake City Financial Network Insurance Agency about term life insurance today. It’s affordable and will provide priceless security for your family.

What about singles with no dependents? If you have a ton of debt and no savings, consider a small term life insurance policy. A healthy 30-year-old can easily find an affordable policy that will at least pay off your debt and cover your burial expenses.

If you’re debt-free and have enough cash to pay for your burial, you can hold off on life insurance, but why would you? The younger you are, the more affordable term life insurance is, so there’s no reason to wait until you have a family to get insured.

7. Long-Term Care Insurance

Long-term care insurance is coverage that provides nursing-home care, home-health care, personal or adult day care for individuals above the age of 65 or with a chronic or disabling condition that needs constant supervision.

So who really needs long-term care? To protect your retirement savings from the expenses of long-term care, get long-term care coverage no later than age 60. Remember that while you’re not likely to need long-term care before then, many factors like your health and family history go into your decision when to buy long-term care insurance and how much you’ll pay for it.

Remember! Stay away from gimmick policies like cancer insurance, accidental death or anything that packages your coverage with investments like whole life or universal life. These types of insurance policies are just a way for the seller to make extra money off you. You need an agent who’s on your side, not the side of the insurance company.

That’s why choosing the right independent insurance companies or insurance agency  is so important. An industry expert, that will work with you to make sure you have the policies that fit your life now and help you anticipate the coverage you’ll need for the future.