Protect yourself with these 5 insurance policies

Insurance is a necessity. Today, most of our most important financial decisions have to do with buying or purchasing insurance. Before you can drive, you must purchase car insurance. Before you can buy a new home, you must take out home insurance. Even if you buy your Apple gadget, you can opt for Apple Care insurance.

We are in danger every day. To manage or minimize those risks, we need insurance. It is the only way to protect ourselves against unforeseen events in the future.

For most of us, the topic of insurance can be very technical. There are many things you need to know regarding any insurance policy. There are hundreds of them and different types of insurance on the market. It can sometimes be very difficult to choose the best one for ourselves.

To help you with your decision, here are the 5 insurance policies you must have.

1. MEDICAL INSURANCE

This is the most important insurance we need for ourselves and our families. It gives us protection against hospitalization costs. Depending on where you are, medical expenses can be a huge burden if left unprotected. Some wealthy countries offer this for free to their citizens. But for most countries, this is something they should buy for their own protection. There are different types of health insurance policies on the market. Make sure to choose the best one that suits your needs.

2. CRITICAL HEALTH INSURANCE

Having health insurance is not enough. In the event of a critical illness, you may become unemployed or take a rest for an uncertain period. If you have a critical illness plan, you can get a lump sum to help you bridge the recovery period. Although medical insurance pays for your hospital bills, you will not be reimbursed during hospitalization. Having a critical illness policy in addition to your health insurance is a must. Choose a policy that lists comprehensive critical illnesses. Make sure it covers all stages of the diseases as well.

3. ACCIDENT INSURANCE

This policy gives us protection against accidents. Apart from medical cover due to an accident, it also gives a lump sum payment in case of accidental death or accidental dismemberment. Accidents happen and having an accident plan helps minimize those risks. Some medical policies do not cover outpatient treatment as a result of an accident. Having a separate accident plan is an advantage.

4. DEATH/INDICATIONS

If you have a family that depends on you, you must have this policy. It is an inheritance that you can leave to them in the event of an untimely death. When you get this policy, it usually covers both death and total disability. It gives a lump sum payout in case one of the two happens. Death coverage usually covers any cause, such as accident or illness. On the other hand, total disability coverage is subjective depending on which insurance you get the policy. They may have a different interpretation or coverage on this part. Be sure to read your policy contract for more details.

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5. INVESTMENT/RETIREMENT INSURANCE

Finally, if you still have money, take advantage of an investment or retirement policy. Once you have all the other insurance policies in place to protect your risks, now is the time to plan for your future. Invest to grow your money and plan your retirement. There are numerous investment policies offered by most insurance companies. Check out their past performance to help you decide which mutual funds can give you the best return for your money. While past performance is no guarantee of future returns, it will certainly aid your decision.

Purchasing insurance is a long-term commitment. Do your own due diligence and don’t rely solely on the information provided by your agent. Understand the fine print and make sure you’re aware of the pros and cons and the types of health insurance you need. Make an appointment with more than one insurance agent so that you can make a comparison before deciding which one to choose.