In a split second, your life can drastically change, but not all changes are welcome. For example, you may go into your doctor’s office and get diagnosed with a terminal illness, eventually leaving you financially and emotionally dry. Consider the following insurance policies to protect yourself against this and any other unwanted surprises for your one whole life.
1. Home Insurance
According to IBIS world, the real estate industry in the US registered a 2% annual growth from 2018 to 2023. As reported by Sa El, a licensed agent, this is due to an increase in homeownership rates which stand at 65.8% of the overall population in America as of March 2023. However, the journey toward owning a home is challenging; a publication by Lora Shinn indicated that if you decide to buy a house upfront, you’ll spend at least $40,559.
Therefore, protecting your investment by insuring your home is important for your one whole life. Sarah Schilichter says the average annual home insurance cost is $1,820 or $152 monthly. However, the amount will vary depending on your home’s size, location, and coverage you require.
A typical home insurance policy should offer coverage that helps repair and rebuild your home’s structure when damage occurs due to an insured peril. It should also cover the cost of replacing your items if they’re stolen or damaged and protect you against liability when someone gets injured on your property. Home insurance is vital for your one whole life, so you should consult with a licensed agent to help you choose the coverages that best suit your home needs.
2. Renters Insurance
According to Safe Home, as of March 2023, 55% of American households were renters, most renting 2-bedroom spaces with a 1.5 bath. Of this percentage, 61 million people have a renters’ insurance policy, and this is estimated to grow within the next year. A renters’ insurance policy protects you against damages that may occur to your personal belongings, for example, damages during appliance installation or events for which you’re liable.
Typically, most people who have renters’ insurance are often required to do so by the rental property managment team or their landlords. Rob Gabriele further notes that more females than males have this type of insurance; 57% of females compared to 43% of males. The percentage of people without this policy often argue that they don’t own valuable things or that the landlord should be responsible, but most of them are just trying to avoid the extra cost.
Although not mandatory, at least as per your state, a renter insurance policy will help safeguard your belongings and ensure a happier one whole life. According to data from Experian, the average cost of a renters insurance policy is about $15 per month. This amount could, however, change upwards or downwards depending on several factors, including your deductible, coverage limit, type of coverage, location, insurer, and the safety features in and around your rented space.
3. Umbrella Insurance
According to the Insurance Information Institute, driving without insurance coverage in most states is illegal. Suppose you cause an accident that injures a third party with your insured car. In that case, your insurance provider will help cover your liability and damages, such as auto glass repairs, up to a certain limit. What happens if the damages go beyond the limit?
When your damages exceed your policy limit, umbrella insurance will help to cover the excess liability. As per the example above, if the injured party decides to sue you, your policy provider may not cover you fully. Therefore, it’s important to have umbrella insurance to ensure you have coverage at all times.
The decision to get umbrella insurance coverage is one that only you can make. When you weigh the cost of an umbrella policy against the value of your possessions and the potential for expensive insurance claims, you may find the additional coverage worth the cost. If you need clarification about your coverage needs, consult an insurance agent to review the details.
According to Kiplinger, to determine how much umbrella insurance you need in your one whole life, consult an insurance agent who uses online umbrella insurance calculators. However, on average, you can expect to pay between $150 to $350 for the first one million; any additional million attracts a cost of 100 dollars each. It is advantageous to have umbrella insurance; however, the policy has its fair share of drawbacks as well.
According to the Financial Web website, a disadvantage of buying a commercial umbrella coverage is you may end up paying for something you’ll never need. Your general liability insurance is often sufficient to pay any claims you incur. Given the increased peace of mind, you must decide whether the higher cost is worthwhile.
Another drawback of commercial umbrella coverage is that, despite being reasonably priced, it adds to your company’s costs. The additional premium may be too much of a burden for small businesses on tight budgets. Premiums are usually determined based on factors like the state you operate in, the number of employees, and the nature and size of your business.
4. Life Insurance
According to Forbes, only 52% of Americans own a life insurance policy for their one whole life, most of whom are men. A study by Haven Life concluded that most women don’t have an income, and those who do, earn less than men. Therefore, as much as the death of either the man or woman is felt in a family, the man’s death will leave a financial gap that the woman may not be able to fill, at least for the first few months or years.
Life insurance is important for the entire family for several reasons, one of the most important being it helps in estate planning. It also helps to cover burial expenses; 83% of Americans consider this an important reason to purchase a policy. When the policyholder dies, the person or persons listed as the beneficiary (beneficiaries) can file a claim within just two weeks after death.
Death is inevitable, so it’s important to have a life insurance policy regardless of gender. According to data collected by Quotacy, the average cost of a life insurance policy for a healthy 40-year-old buying a 20-year cover with a term policy worth $500,000 is $26 per month. However, it’s important to note that the cost of a policy depends on factors such as lifestyle, age, gender, family medical history, health, coverage amount, and the type of policy.
5. Health Insurance
According to IBIS World, the health and medical industry in the US was estimated at $1.2 trillion as of 2023. In 2021, almost 299 million Americans had health insurance, a record high resulting from the Coronavirus pandemic. According to KFF, most Americans still don’tdon’t have insurance, and 64% of the uninsured population cited high coverage costs as the main reason for not having a health insurance policy.
According to Daniel Shepherd, the cost of your health insurance will vary according to the state you live in, so if, for example, you reside in Wyoming, the average monthly cost is about $882. On the other hand, if you live in South Dakota, your health policy costs $792 per month. Generally, there has been a 4 percent increase in health insurance rates nationwide.
Most Americans with health insurance are employed, but what about those without? To help provide quality health insurance for the unemployed, typically the older generation of 65 years and over, and people living with disabilities, President Lyndon signed into law Medicare and Medicaid programs in 1965. These programs ensured affordable health insurance, and in some instances, you could, for example, get a free gentle dental care service, making this a great addition to your one whole life.
6. Disability Insurance
To qualify for this type of insurance, you must show you are disabled as per the Social Security definition of the word; a disabled person is anyone unable to work due to a medical condition, mental or physical, which may have lasted or is estimated to last more than a year or may result in death. Applying for disability benefits such as disability insurance is a complicated process for the average citizen. Most people who file for the benefits alone are often unsuccessful.
Therefore, it’s important to seek legal assistance from an established disability attorney throughout the application process to ensure a better one whole life. According to Morgan and Morgan, your financial income is one of the factors the SSA evaluates when determining your disability status. As of 2021, anyone with a monthly income above $1,310 was automatically disqualified.
Unlike other types of insurance, such as car insurance, disability insurance doesn’t cover disability; it helps to replace part of your income when you are disabled. According to Jenifer Schell, disability insurance premiums cost around 1% and 3% of your annual income. The two main types of disability insurance policies are; long-term disability policy which has a long waiting period that could last a few weeks or months, and short-term disability insurance, whose waiting period is shorter, lasting a maximum of 14 days.
7. Long-Term Care Insurance
This type of insurance helps to give one whole life to people requiring a cover in home health care and nursing homes; these are typically people 65 years and older or people with chronic conditions requiring monitoring throughout the day. According to Clifford Pendell, 3.3% of Americans require long-term care insurance, about 7.5 million people. Unfortunately, these people have to rely on family or the Medicare aid program to pay for their policy; according to ACL, Medicare covers for only 22 days, and to qualify for this aid, your salary needs to be below a given limit, just as it is with the disability insurance policy.
The first type of long-term care insurance policy is the stand-alone insurance policy commonly referred to as Traditional Long Term Care Insurance; this policy has existed for over 40 years. Depending on your insurance company, you may receive a monthly benefit ranging between $1,500 to $12,000. Another notable perk of the stand-alone LTC policy is that the policyholder could receive benefits for up to 6 years.
The second type of long-term care insurance policy is the hybrid insurance policy, also known as asset-based LTC insurance; this is a hybrid policy that merges a life insurance policy and long-term care policy through a rider. Although this policy hasn’t existed for a long time, the policy is rapidly gaining popularity due to flexibility in the payment plan. You can make a one-off, lifetime, or 20 annual payment.
8. Moving Insurance
According to Forbes, homeowners and renters insurance policies don’t typically cover you for damages and losses that may occur when relocating. For this reason, you must protect yourself when contracting a home or business moving services by taking up a moving insurance policy. According to Trusted Choice, if you decide to move independently and need storage during the transition, your insurance policy will cover your storage costs for up to 90 days.
According to Nicole Schurott, the amount you spend on a moving insurance policy varies depending on the moving insurance policy you buy; the basic carrier liability policy offers the lowest coverage, $0.30 per pound for an interstate move and $0.6 per pound for an out-of-state move. The second type of moving insurance is the declared value protection policy; this policy has a deductible amount of $100 to $500 and ensures full replacement of your belongings when damages or loss occurs. The third type of insurance is the extraordinary value items policy which requires you to pay nothing less than $100 per pound.
If you’re hesitant about buying insurance, consider all the benefits you stand to miss out on for your one whole life. Don’t let costs freak you out; IBIS World estimates over 410,176 insurance companies are operating in the United States. Be patient during your search and look at multiple providers to ensure you get one whose within your budget and meets your coverage needs.