When you’re just getting your start in life, it can be hard to think about the future. If you are concerned about financial stability, whether for yourself or a family, then thinking about the future is a must.
Because there’s no way of telling what the future holds and what costs could come up, having the right insurance policies is always a safe bet. It’s like having an umbrella for a rainy day, and these questions can help you decide which umbrellas to buy.
Could You Cover Auto Repairs After an Accident?
If you drive a car in America, auto insurance is generally a must. Most states legally require at least some minimal level of auto insurance, so this is one policy you can’t skip out on. You also should think twice about skimping on coverage, especially if you don’t have enough savings to cover repair or medical costs associated with a car accident.
Are You a Budding Small Business Owner?
Lots of young people are becoming entrepreneurs these days, and if you’re one of them, you need to consider how you are going to protect your small business. Business insurance is loaded with benefits, like protecting your business in the event of a lawsuit and covering costs if you need to close temporarily. Alliance Insurance Services can design a specialized package that looks at what makes your business special and how best to protect it.
Business insurance is just one way to protect your venture. Some other things to consider are enacting sound data protection practices, properly securing your devices and equipment, and being proactive with how you handle your financial affairs. Simple actions like hiring an outside service provider for tasks like filing your annual report can help you to avoid costly mistakes. Make sure you take steps to protect your business from getting into trouble by starting with sound practices.
Do You Have Enough Saved in Your Emergency Fund?
No matter your age or stage of life, financial experts always recommend having anywhere from three to six months worth of expenses saved in an emergency fund. Saving even more than three to six months can make it less overwhelming to cover things like unexpected home repairs, surprise auto expenses, sudden medical bills or even job loss.
Yet an emergency fund may not be enough to provide financial stability if you are injured and out of work for an extended period of time. This is why so many people choose to invest in short-term disability insurance for added support.
Could Loved Ones Cover Your Funeral Costs?
If you aren’t sure whether your family members could cover your funeral and burial costs, investing in funeral insurance is a worthwhile expense. Also known as burial insurance, Nationwide notes these sorts of life insurance policies are designed to cover expenses related to funerals and burial. If there are funds leftover, surviving family members can put them toward leftover debts and unpaid medical expenses.
Do Others Depend on You for Care or Income?
Having a basic burial insurance policy can be perfect if you are only concerned about funeral costs. If, however, you have family members who rely on you for income or care, you should really consider more comprehensive life insurance. This generally means purchasing either a term or permanent life insurance plan, both of which can have different benefits depending on your current stage in life.
If you are more concerned about keeping premiums low, then a term life insurance policy could be your best bet, but if you can swing higher payments, permanent life insurance can provide additional financial benefits.
Could You Pay for an Unexpected Emergency Room Visit?
If you’re young and healthy, you may think you don’t need health insurance. In our current healthcare system, however, the need for health insurance extends beyond any age or health considerations. Because even though you may be healthy now, you never know when an unexpected injury or illness could land you in the hospital or emergency room, and that visit could land you with massive medical bills that can be impossible to pay on your own.
Health insurance for younger adults can come from a few different sources, including employer-sponsored plans and marketplace options, or CNBC suggests you may be able to remain on your parents’ health insurance plan, providing that you meet specific eligibility requirements.
Keep track of what you spend on medical concerns, as it can be handy at tax time if you itemize deductions. Redfin notes you can pair medical expenses with your mortgage interest, which will reduce your tax burden if the total is above the standard deduction.
Knowing which insurance policies will provide the most financial peace of mind can be crucial. Go through the questions above and let your answers guide you through the process of finding the right insurance to provide financial stability and protection for you, as well as any loved ones who may depend on you.
Photo Credit: Unsplash