Insurance is an economic pillar of western society.  Fortunately, it’s more than just a corporate wealth engine. Having the right insurance coverage offers peace of mind by offering protection from unknown disaster.  Without it, you can be financially wiped out.  So it’s a good idea to carefully assess how much, and what type of coverage you really need.  

 A wise first step in determining your individual insurance needs is to think carefully about what you really need to protect.  Depending on your age, work, and mode of transportation, you should consider the following types of insurance:

Disability insurance protects your financial security.
Two types of disability insurance include: Short-term coverage, which usually starts after one week of disability and lasts up to six months. Or, long-term, which generally kicks in after six months and can continue up until age age 65.

Even if you have some disability insurance through your employer, you might want to add more complete coverage.  Typical employee plans only cover between 60% and 70% of your current gross salary.

Life insurance:  No-one likes to think about it.  A vast majority of American are under insured when it comes to life insurance protection.  Yet the younger and healthier you are, the more coverage you’ll be able to afford.  Strive to protect your family against financial hardship by procuring coverage according to your current income.

If you’re fairly healthy, term life insurance can be very affordable.  For example,consider that a high-quality, 20-year term life insurance policy for a young Mother may cost very little.

Auto insurance:  Whether  you own a car, or just drive someone else’s – you must have auto insurance.  Depending on the value of your vehicle and your state’s requirements, the type of auto policy you need may vary.  As a rule, you need liability and collision coverage in varying amounts according to your car’s value and other factors.

Homeowners Insurance:  If you’re a home owner with a mortgage, your mortgage agreement requires that you carry adequate homeowner’s insurance protection.  Even renters should carry homeowners insurance to help pay for expensive damages or costly repairs.

Whenever you go through a life transformation, job, or family change – reevaluate your insurance needs.  Even when your life is relatively stable, it’s financially responsible to compare competitive insurers to be sure you’re getting the best deal. 

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