All families needs a financial plan that includes personal insurance coverage so that they can deal with death, illness, accidents or long term
disability. When planning insurance coverage you should take into
account your dependants, age and economic situation. There are a
baffling range of plans and finding the best insurance coverage
for you will depend on several things. Life insurance for example is
vital if you have dependent children or a spouse but is obviously not
as important for those with no dependants. All of us should purchase
disability insurance as we all need insurance cover in case we cannot
work. The following are short descriptions of a number of the different
kinds of personal insurance coverage that are available.
- Essential for all car drivers
- Minimum liability coverage essential
insurance is required before a car can be registered and many states
require a medical cover of at least $100,000, a minimum accident
coverage of $300,000 and $50,000 for property damage. Unfortunately
these values may not be adequate and we would recommend you have in
excess of the minimum required cover. Other cover that is recommended
also includes collision, theft and fire coverage. Cost of the insurance
can often be reduced by choosing a higher deductible.
Prices fluctuate a a great deal between companies and you would be advised to obtain a range of quotes before buying. There can often be discounts offered which may depend on on where you live, your age and driving experience etc.
- Needed by all who own a house
personal insurance coverage must be sufficient for rebuilding costs
and replacing furniture in the event of fire or other problems and to
be covered if an injury happens on your property. To determine how much
coverage you would need to rebuild, deduct the price of the foundations
and land from the value of the house and ensure that you have insurance
cover for at least 80% of the resulting cost. Household liability cover
for the majority of household policies is usually around $250 ,000.
- Essential for anyone who has a dependent spouse, children or others
insurance is a kind of personal insurance coverage that pays out to
dependents when you die. The amount of coverage needed will, of course,
be dependent on your circumstances and the amount your dependents will
need to continue to enjoy the same standard of living. You would be
advised to take into account costs of education and any debts that are
outstanding when determining the amount of cover that you need.
Disability Income Insurance
- Necessary by everyone who supports themselves
disability insurance coverage is important for all of us in the event
of not being able to work. Many employers have a comprehensive
insurance coverage for their workforce but this may only be short term
or low coverage and often not really sufficient. The cover can be up to
55% of your salary and might be for a limited period. If possible try
to get cover that will last until retirement age. If your employer
offers cover make certain that it is sufficient and that it will last
Medical insurance is typically provided by companies as private medical insurance coverage is often much pricier. Check out the provisions of your employer's medical insurance for any constraints.