In January I asked my LinkedIn and Facebook audiences to guess the number of insurance policies an individual should have? How many policies does a single individual, regardless of marital status and family make-up need? I am happy to report that someone correctly answered that you need 7 insurance policies. These policies include:
Auto Insurance – Auto insurance is typically the first policy we all purchase, for the first car we ever own. Auto insurance provides you liability coverage for damages done to others and coverages for the repair or loss of your own vehicle.
Home Insurance – Home insurance includes renters insurance, condo insurance, and home insurance policies. Similar to auto insurance it provides liability coverage to you as the owner and provides coverage to repair or rebuild your home after a claim.
Schedule Insurance – We all have personal belongings which are valuable and/or difficult to replace – be it jewelry, watches, bicycles, sporting equipment, electronics, art, etc. All home insurance policies have limitations on certain personal items, which is why everyone should consider a schedule policy. Check out this article on the personal items we typically collect.
Umbrella Insurance – While we may never intentional mean to harm some one, catastrophic events do happen and people can be hurt, and we can be able responsible for the damages. An umbrella policy provides additional liability coverage over our auto and home insurance policies should a catastrophic liability event occur.
Health Insurance – When we finally move out of our parent’s home this usually is when we get our own health insurance for the first time. This could be through our employer or an individual health insurance plan. Health insurance covers the cost of our medical care.
Life Insurance – As our family dynamics change we may need to secure a certain lifestyle for our spouse and/or our children should some thing happen to you. Your spouse and/or children may depend on your income and may not be able to continue their way of life if you were to pass away.
Disability Insurance – Similar to life insurance, disability pays to maintain your lifestyle should you be unable to work due to a major and/or permanent medical event. If you are unable to work disability insurance will provide you income.
You may think that you don’t need all of this insurance or that you can’t afford it. With the right insurance advisor you may be able to secure all of these policies at a reasonable cost. What you will not be able to afford is to be out of pocket if you do not have the right insurance when you need it most. By purchasing the right insurance today you will secure your future and that of your family’s.