Check Off Your Insurance Check-Up: An Insurance Coverage Checklist
Insurance is one of the most crucial components of financial well-being, even though you may not necessarily receive an actual payout from a policy. Many things in life are especially valuable, such as your time, your health, your home, and even your life. Insurance can protect your assets, both tangible and intangible. While there are many insurance products available, some are more critical than others to have in order to prevent possible financial disaster. Below are some of the main insurance coverage options you should consider to help create a healthy future.
1. Life Insurance
Most people don't want to think about life insurance, but it is vital to your family's financial health if you die before they do. Life insurance will provide for your loss of income in the event of your death. You will want to make sure that your policy covers what your earnings would have provided plus any outstanding debt you may have. While term life insurance is the most affordable option, whole life insurance may provide additional cash value at the end of the policy.1
2. Health Insurance
Your health is also essential to your financial future. Staying healthy will help you continue to work and provide for your loved ones. Unfortunately, testing, preventative care, and healthcare treatments can all be costly, especially as you age. To make your healthcare more affordable, look for a solid healthcare policy that provides ample coverage and minimizes out-of-pocket expenses.1
3. Homeowners Insurance
If you own a home, it is likely one of your most significant assets and expenses. Protecting this asset is essential. Otherwise, you may have a massive debt that may be hard to recover. Your policy should have plenty of coverage to replace your physical home and its contents if you have a total loss. You should also have ample liability coverage in the event of a homeowner's lawsuit. If you rent instead of own, it is advisable to invest in renters insurance to receive similar coverage.1
4. Auto Insurance
Auto insurance is another essential area of coverage required in most states in order to be behind the wheel of an automobile legally. Collision coverage will help cover the repair cost if you're in a collision, and liability coverage will cover other drivers' costs if you are at fault in an accident. You will also want to ensure you have enough personal injury protection coverage to cover medical expenses related to injuries from a collision.1
5. Disability Insurance
Insurance coverage that is often overlooked is disability insurance. While most people consider life insurance, they may not consider what would happen to their finances if they became disabled and could not work. Government programs such as SSI may help, but they often provide minimal payments. You may want to check with your employer to see if they have long-term disability coverage available. If so, consider additional coverage to satisfy your financial obligations should you become permanently disabled.1
Important Disclosures:
This material contains only general descriptions and is not a solicitation to sell any insurance product nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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Footnotes:
1 Insurance Planning For Married Couples (Checklist), Forbes, https://www.forbes.com/advisor/life-insurance/getting-married-insurance-plan/
