Jake Tuff 
Insurance can be a bewildering labyrinth of terms and policies, but it’s a crucial part of protecting your family. Just like a financial plan, insurance should change as your goals and life changes. Here are some types you shouldn’t skip:
Life Insurance
Your loved ones would suffer financially if something happened to you unexpectedly. Life insurance provides money that could be used to pay off debt or meet everyday expenses. Many people assume their employers policy offers enough coverage, but that might not be the case.
To determine how much insurance you need, consider your overall financial picture. Use calculators to estimate how much money your family would need to cover funeral expenses, pay off debt (including college tuition) and make ends meet without your income before reassessing beneficiary listings on your existing policy.
Auto Insurance
Nearly every state requires drivers to have auto insurance. It helps pay for damage caused by car wrecks — which is essential if you’re at fault in an accident with an expensive car or someone who gets seriously hurt. Coverage comes in several forms:
-Bodily injury liability: Reimburses others if you cause an accident.
-Property damage liability: Repairs another persons vehicle or other objects like fences and buildings.
-Comprehensive: Covers theft, fire, hailstorms animal damage etc…
-Premiums depend on several factors including age and driving records of drivers in household, where you live (urban areas have higher rates of accidents and theft) and type of vehicle owned.
Homeowners Insurance
Homeowners insurance protects what is typically the most valuable asset most people own — their home — as well as possessions inside it from damage or loss through theft or certain natural disasters (like fires). It also covers injuries sustained by guests while at your home.
When shopping around for quotes, learn about discounts such as those for home alarm systems or which are available when you bundle multiple types of coverage together. Insurers vary considerably in coverage limits and exclusions, so policy costs may differ greatly between providers – it is wise to shop around before making your purchase decision.
Health Insurance
Health insurance pays for some — if not all — of the cost of medical treatment and prescription drugs. There are two main types: private (individual) health plans and group plans sponsored by an employer, union, government entity or another organization in collaboration with a healthcare provider network.
Without health coverage serious illness or accident could entail tremendous medical bills. Low out-of-pocket costs should be your goal when selecting a plan. These include fixed monthly premium payments as well as payments made at the time you receive medical services or fill prescriptions (deductibles, copays and coinsurance).
Disability Insurance
Disability policies are crucial in the case of injury or illness. They make sure you can still make money when you’re unable to work. The benefits usually replace 40-60% of your income all the way until retirement age.
Long term disability insurance is another name for it, and it’s meant to cover about half of your wages over time.
Group LTD plans can sometimes be offered from employers, protecting from some or all of the premium costs. Individual policies can also be purchased through financial professionals.
Look closely at all of your expenses including how much you spend on utilities and groceries, so you know exactly what needs to get covered by a policy. Also see if your savings plan has one that may provide relief in the form of disability benefits.
Lastly, consider adding a cost of living benefit rider that gradually increases benefits over time.
