Some types of insurance are required, while others may simply be nice to have. All insurance is helpful and can save you significant money if you need to file a claim. Depending on your specific circumstances and needs, some types of insurance may be a good fit. Here are three types of insurance you might need.
In the event you become injured and are unable to work disability insurance will replace your income. Depending on the policy the coverage will pay you all or part of your income for a specified period of time. In a single income household disability insurance is extremely important. If you are unsure if disability insurance is necessary, consider what your financial situation would be if you or your spouse or partner were unable to work for health reasons.
Funeral expenses can add up quickly, and a life insurance policy can be used to cover those costs along with any other bills or expenses. More substantial policies can also serve to replace the income your family would no longer receive in the event of your passing. Life insurance is not mandatory, but if your death would cause financial hardships for your loved ones, a policy is worth considering.
In addition to funeral expenses and income replacement, life insurance can be used to help cover any loans you cosign. For instance, if you cosign a car loan or credit card or student loan for a relative or friend and you pass away, your loved one will be solely responsible for the balance due. Life insurance protects them as it can be used to repay that loan.
This type of coverage goes above and beyond your existing insurance policies. Umbrella insurance provides additional liability should you max out your homeowner’s, auto or other type of insurance policies. For example, if you cause a car accident and someone is injured they will receive money from your auto insurance to cover medical expenses. If the maximum payout from your auto insurance does not cover all of their medical bills and lost wages they can sue you for the balance. At that point your umbrella policy would kick in and cover that expense.
Make Sure You Are Protected
The purpose of insurance is to protect your assets and cover unforeseen expenses. Disability, life and umbrella insurances all achieve these goals. Depending on your circumstances and other factors it is worth considering these types of coverage. If you have questions about the types of insurance you might need, or contact us. We can help you understand how each of these policies work and can help you determine if you need them. Call us at 865-922-3111 (local) or 800-624-3339 (toll free) or click here to contact us.
Series: What Kinds of Insurance Do You Need?
Part 1: 3 Types of Insurance You Need
Part 2: 3 Types of Insurance You Might Need
Part 3: 3 Types of Insurance You Probably Don’t Need