Nothing in life is 100% predictable. However, there are ways to help you prepare for the unexpected.
Insurance was created to help combat certain unexpected situations, and there are different types of insurance to cover you in ways that best suit your needs, whether it be a disability, car accident, medical need, or the loss of a life.
Here, we’ll review a few important types of insurance products to consider when building your ideal plan. There are so many different types of insurance that it can be overwhelming to read about it all. We’ll cover a few here and then talk more about your life goals to figure out what other insurance topics we should talk about.
Life insurance is one of the more commonly talked about types of insurance policies. While the main intent of a life insurance policy is to replace the loss of income resulting from an individual’s passing, or to cover outstanding debts such as college loans or a mortgage, there are many benefits and advantages to purchasing life insurance that don’t revolve around the loss of a family member. A financial professional can assist in going over the ins and outs of life insurance – different types, tax considerations, costs – to help you consider what works best for you.
Disability income insurance
Another common type of insurance is disability income insurance. This type of insurance is used when a disability, sickness, or injury prevents someone from being able to work, limiting their ability to earn their income. This insurance allows the owner of the policy to continue to receive a portion of income while they’re unable to work. However, there is certain criteria and limitations involved in this type of insurance. Therefore, it’s important to discuss details with someone who specializes in this area.
Speak with a professional
Understanding the requirements, limitations, and tax consequences of the various types of insurance policies can be confusing. Working with a financial professional can help you decide whether or not these options fit your overall plan.