Considerations When Buying Personal Insurance Coverage

All families will need a financial plan which includes personal insurance coverage in order to cope in the event of accidents, death, illness and disability. As you are planning insurance coverage you will need to consider your economic situation, age and number of dependents. There are a confusing range of insurance plans and which ones are best for you will depend on numerous things. Life insurance for instance is vital if you have a spouse or dependent children but is obviously less crucial for people who do not have dependents. Everyone should purchase disability insurance as all of us need to be covered if we are unable to go to work. Below are short descriptions of some of the different kinds of personal insurance coverage available.

Auto Insurance
* Needed by everyone who drives a car
* Minimum liability coverage essential

Liability insurance is needed before you can register a car 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 minimum values may not be adequate and we would recommend you have above the minimum required cover. Other coverage recommended also includes collision, theft and fire coverage. Cost of the insurance can often be reduced by going for a higher deductible.

Prices vary a a great deal between companies and you should obtain a range of quotes before choosing. There can often be discounts available which may depend on on your driving record, age, where you live etc.

Homeowner’s Insurance
* Considered necessary for all who own a house

Home personal insurance coverage must be sufficient to cover rebuilding costs and replacing furniture and fixtures in the event of fire or other damage and to be covered in the event of injury happening on your property. To decide the amount of insurance you will need for rebuilding, subtract the cost of the land and foundations from the house value and ensure that you have cover for at least 80% of the resulting cost. Liability insurance coverage for most householder’s policies is typically around $250 ,000.

Life Insurance
* Essential for anyone with a dependent spouse, children or others

Life insurance is a kind of personal insurance coverage that pays out to your dependants when you die. The amount of coverage necessary of course, will depend on your financial situation and circumstances and the amount those that survive you will need to continue to enjoy the same standard of living. You need to take into account costs of education and outstanding debts when deciding on the level of insurance cover that you need.

Disability Income Insurance
* Essential by everybody who supports themselves

Personal disability insurance coverage is indispensable for all of us for times when we cannot work. Many companies provide a broad insurance coverage for employees but this is frequently short term or low coverage and often not really adequate. The cover is often up to 65% of your salary and is frequently for a restricted period. If you can, try to find coverage that lasts until you retire. If your employer offers cover take care that it is enough and that it will last long enough.

Health Insurance
Medical insurance is generally offered by employers as private medical insurance coverage is frequently much more expensive. Check out the conditions of your employer’s medical insurance for any constraints.