What types of insurance do you need?
There are a plethora of insurance options available to you, and depending upon who you consult with, many insurance and financial experts will tell you that you need to have them all!
So, it can be frustrating trying to figure out what types of insurance you need and how much coverage you should purchase. Buying the right types of insurance and the right amount of insurance depends upon your individual situation. You’ll want to take the following factors into account when you’re considering purchasing insurance:
- Age
- Lifestyle
- Marital status
- Children
- Employment benefits
- Budget
- Monthly fees for premiums
Working with an independent insurance broker can really help to take the stress out of purchasing insurance as well as saving a lot of your valuable time. An insurance broker’s primary concern is to fit an insurance policy to their client’s needs and finances. Because they’re independent, insurance brokers don’t have a vested interest in getting you to purchase insurance from one particular company. They work for you, not the insurer.
The big 4
Most insurance experts recommend that you should have the following types of insurance:
- Health insurance
- Long-term disability coverage
- Car insurance
- Life insurance
You’ll need to have enough health insurance to cover medical costs for you and your family. One serious illness can result in financial ruin.
Having life insurance can pay for funeral expenses and can offer financial security to your loved ones after your death, especially if you are the primary income earner. When considering the amount of coverage you need, you’ll need to take into account the expenses of daily living such as mortgage payments, credit card debt, taxes, child care expenses, the cost of college, and outstanding loans.
While most people think that they’ll never need long-term disability insurance, statistics from the Social Security Administration tell a different story. One in four workers that enter the workforce will become disabled and unable to work before reaching retirement age. The good news is that many employers offer both short- and long-term disability insurance in their benefits package.
With the exception of New Hampshire and Virginia, each state has set its own minimum requirements for car insurance in order for residents to legally drive on their roads. Nearly all states require drivers to carry some amount of liability insurance while comprehensive and collision coverage are optional in every state.
Do you have any gaps in your coverage?
Most insurance experts recommend reviewing your policies at least once per year. If you have any major life changes that could have a significant impact on your insurance needs, you should consider consulting with an insurance broker. They can help you identify any gaps in your coverage and help you close those caps by increasing your coverage or switching to another insurer to get better coverage at a lower rate.
Daniel Fraisse, Los Angeles insurance broker, provides intelligent solutions for every insurance situation. Check out our website to learn about the types of insurance we offer as well as a full list of insurance services that we provide to our clients.