A vital part of creating a sound financial plan is by protecting your assets. With the right insurance policies, you can safeguard your possessions and your earning capacity. But without these, you stand to lose everything that you’ve worked so hard for.
While commercial vehicle insurance in North Carolina may not be necessary for everyone (it’ll only be applicable for those who use vehicles as part of their business operations), there are other types of insurance that everybody needs to have.
1. Health Insurance
The skyrocketing costs of medical care is more than enough reason to perceive health insurance as a need. How much does a simple doctor’s consultation cost these days? What about treatment for serious injuries, surgery and hospital stays? You can quickly rack up tens of thousands of dollars in medical bills. The potential cost of not having health insurance can be disastrous to your finances and more importantly, to your wellbeing.
2. Long-Term Disability Insurance
While we can all hope nothing bad will happen to us, choosing to entertain the idea of getting a disability policy to protect your future earning capacity is always a good idea. With the right coverage, you will be able to continue your current lifestyle, even if you’ll no longer be able to work due to a disability.
3. Life Insurance
This kind of coverage protects your dependents and safeguards them from hardships in the event of your death. Life insurance should be high on your list. Carefully assess how much you’re earning each year and for how long you think you’ll be working, and then get a policy that will replace that income in case of your early death. The cost of burial should also be factored in.
4. Vehicle Insurance
Other than in New Hampshire and Virginia, vehicle insurance is required by law. But even if you do live in an area that does not mandate motorists to have vehicle insurance, it is something you should really get. You could be subject to a lawsuit if someone is injured in an accident you’re involved in, or if the accident resulted in damage to property. Without auto insurance, you’re putting yourself at risk of losing everything you own.
5. Homeowners Insurance
With the right homeowners insurance, you can protect yourself from having to pay for the cost of replacing/repairing your home. Look for an insurance policy that specifically covers replacement of the building structure and its contents. Oftentimes, the cost to replace your home is nearly the same as the amount you paid to purchase it, but it also depends on the amenities you have and the age of your home. When buying homeowners insurance, carefully evaluate how much it costs to replace your property. You should also factor in the cost of upgrades. Moreover, get liability coverage so you’re protected against lawsuits for injuries that may take place on your property.
Insurance policies have many different features, costs and benefits. Read the policies carefully and talk to an agent so you’ll fully understand the coverage and costs involved.