Learn about the “Four Must Have Insurances” in order to sleep well at night and not be at risk of financial or health ruin. All too often we see insurance in its various different forms as simply a necessary evil and most of us purchase the bare minimum required, the policies that the law mandates, we have. But there is another way to look at insurance that may help paying for insurances a little more palatable; as wealth protection.
The world over protecting wealth is just about as important as creating it in the first place and as that is the case then essential insurances are a part of any effective wealth creation strategy. Poor planning when it comes to insurance can be wealth destroying. And while you may not need some forms of insurance at this stage of your life, you should make sure that you do have these insurances in place at all times:
One – Disability
Ask any insurance professional and they will tell you that disability insurance is one of their hardest ‘sells.’ That is partially because it is not always the cheapest insurance in the world and partially because a relatively fit and healthy person often fails to see the need for it all. However, should an accident or illness suddenly prevent them from working, even for a relatively short period of time, they will almost immediately feel the pinch. The best advice? Don’t learn the hard way, maintain at least a minimal disability insurance policy at all times.
Two – Health
Health insurance of some kind is more than a way to ensure that you have access to decent healthcare, it’s a way to avoid a potential financial disaster. For the average person, even one who considers themselves to be financially comfortable, paying out of pocket for medical expenses can be almost impossible.
The cost of heart surgery, for example, is so high that it would bankrupt all but the very rich, and even they might raise an eyebrow when the bill came in. Ensure that you have enough health coverage to at least cover major health issues and then review the coverage every year and consider adjusting it to reflect your current health, age and lifestyle.
Three – Automobile
Some level of Automobile insurance is required by law for any motor vehicle on the road, but many of us to like to stick to the very minimum we can get away with. That may not always be sensible though. Even if yours is an older vehicle, think carefully before declining all of the additional options available to you. Before you turn down the roadside assistance consider just how much a tow truck would cost you out of pocket? And just because you have basic third party cover does not mean someone is prevented from trying to sue you for more after an accident, so that additional legal liability coverage may be worth a second look as well.
Four – Homeowners
Again, if you have financed a home purchase some level of homeowners insurance will be required but you may want to do more than cover against the very basics. Take a look around your home, how much would it cost you to replace all that you have accumulated? And you also have to consider the cost of a lawsuit should someone be injured on your property, even in a simple slip and fall, could you afford to meet the cost of a settlement? These and more are things that should be considered carefully before you skimp on your homeowner’s insurance policy.
Speak to one of our Financial Advisers to get the best rates and best advice for your particular situation and arrange your “Four Must Have Insurances”.
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