You already know life can be a wild ride at times. You know…between juggling work, family, and thinking about the future, there’s a lot on your plate.
You might even be so busy that some things get put on hold. But one thing you definitely don’t want to overlook is making sure you’re covered if things go sideways.
What’s your plan to protect your financial future?
Whether it’s navigating the high costs of healthcare, protecting your home, or ensuring your loved ones are taken care of, having the right insurance can make all the difference.
Here are five essential types of insurance to consider to protect your financial future:
1. Health Insurance
Health insurance is paramount for covering medical expenses, which can be exorbitant without adequate coverage.
Without health insurance, a single medical issue could hurt you financially. For example:(1)
- Fixing a broken leg can cost up to $7,500
- The average cost of a three-day hospital stay is around $30,000
- Comprehensive care to treat cancer costs an average of $150,000
With health insurance, you’ll only pay a fraction of these prices based on your copay and deductible. Can you see why health insurance makes financial sense?
About 86% of working adults can get health insurance through their employer.(2)
But if you work for a business that doesn’t offer health insurance, or you work for yourself, you still have options.
- About 45 million people in the U.S. get health insurance through the Health Insurance Marketplace created by the Affordable Care Act.(3)
- The average monthly premium is $111, while 44% are eligible for plans that cost $10 or less per month after subsidies.(3)
2. Life Insurance
Life insurance might not be the most thrilling topic, but it’s a game-changer for your family’s peace of mind.
Imagine leaving behind financial stability instead of financial stress. You know, enough money to…
- Pay for your funeral (average cost is around $8,000)(4)
- Pay off all your debts (e.g. house, car, credit cards, medical bills, etc.)
- And have plenty left over for living expenses, education, and more
Most people opt for term life insurance because it’s affordable and straightforward.
- About 52% of Americans have some form of life insurance, with term life policies being a top pick for their flexibility.(5)
- The average cost of a 20-year term life insurance policy for a middle-aged adult is around $30 a month for a $500,000 policy.
3. Disability Insurance
If you’re healthy, happy, and working, chances are pretty good developing a disability isn’t top of mind.
However an accident or illness could literally change your situation overnight, and it could be financially challenging. But it doesn’t have to be.
Disability insurance provides income replacement if you are unable to work due to illness or injury.
Ever thought: But it won’t happen to me?
- Think again…About one in four 20-year-olds will become disabled before reaching retirement age.(6)
Short-term and long-term disability policies can help protect your income and your assets if something happens to you.
4. Homeowner/Rental Insurance
If you lost your house or apartment and everything in it, what would you do?
It’s easy to think, “But it won’t happen to me.”
- But every day, someone’s life changes dramatically after a fire, flood, tornado, hurricane, natural disaster or accident that destroys their home and belongings.
- What if your place is burglarized and you lose valuable and important things?
- Or what if someone is injured on your property?
If you own a home, it’s likely your most valuable asset. And even if you’re a renter, replacing all your belongings could cost thousands of dollars.
Homeowners insurance and rental insurance can give you peace of mind if the unthinkable happens. You’ll have the funds you need to rebuild, relocate, and replace your belongings.
Can you afford it?
- The average premium for homeowner’s insurance is $159 per month.(7)
- The average premium for renter’s insurance is $12 per month.(8)
Think of it as a small price to pay for protecting your biggest investment from natural disasters, crime, and other mishaps.
5. Car Insurance
It might seem like a no-brainer, because car insurance is a legal requirement in all 50 states.
Yet, 14% of drivers on the road don’t have insurance.(9)
Car insurance is essential for financial protection against accidents, theft, and other vehicle-related damages.
Without car insurance, the cost of an accident or injury could be financially devastating:(10)
- Just a fender bender might cost $6,000 to $17,500.
- A car accident that causes vehicle damage and injuries costs $40,000 or more
- A serious car accident that damages a vehicle and leaves someone disabled or dead may cost $155,000 to $1.8 million.
Car insurance protects you from uninsured drivers. It also helps cover the cost of repairs, and any injuries or lawsuits that might follow a car accident.
Get insurance to protect your financial future
With these five types of insurance, you can protect your financial future. Keep in mind, regularly reviewing and updating your coverage is a smart way to stay ahead of life circumstances that might change.
