The Only Two Insurance Coverages You’ll Ever Need In Your Lifetime
Insurance coverages are a core part of a career or wealth-building journey. They help cover unforeseen risks like property damages, loss of a caretaker, sickness, or a car accident that may come along the way and hinder your efforts.
For instance, an unexpected medical bill could eat on your savings or sink you into credit card debt if caught unawares.
Coverage against these unwelcome life events gives you peace of mind to pursue your goals in exchange for premiums paid to the insurer.
Let’s talk about two insurance coverages that are vital in your lifetime.
Health Insurance
We work hard to earn a living and enjoy life. But when our health breaks down, we can’t do any of these, and medical expenses can quickly skyrocket.
In a study published in the American Journal of Public Health, nearly 70% of participants felt that medical bills were a key factor in their bankruptcy.
It shows Medicare costs can get expensive to pay out-of-pocket. Purchasing health insurance coverage helps you manage or avert such financial risks.
Health insurance covers your preventive care costs like screenings, checkups, and vaccines as well as medical and surgical expenses in the event of serious illness or accident. If you are a parent, your children are covered until they turn 26.
So, what is the cost of health insurance premiums?
In 2022, Americans paid average annual health insurance premiums of “$7,911 for single coverage and $22,463 for family coverage”, according to a 2022 Employer Health Benefits survey.
That said, several factors determine the cost of your policy premium, including:
Age
Body Mass Index (BMI)
Lifestyle habits
Location
Past medical history
Nature of work
The insurer and the type of plan you choose
Can you get health insurance with a pre-existing condition?
The Affordable Care Act of 2010, famously known as Obamacare, requires insurance companies not to deny health insurance to people with pre-existing conditions.
However, most policy issuers will likely deny you or hit you with a higher-than-average premium to mitigate the increased risk of claims.
If you’re old, disabled, or come from a low-income family, you can look into federal health insurance plans like the Children’s Health Insurance Program (CHIP), Medicaid, or Medicare.
Homeowner’s Insurance
A home is the most valuable asset that most Americans have, or dream to own. With the increase of natural disasters that can render your home uninhabitable in some parts of the country, the need for homeowner’s insurance cannot be overlooked.
Homeowner’s insurance gives you a financial cushion by protecting your home’s structure and belongings against damages and losses arising from incidents like:
Fire
Wind/hailstorms
Theft or vandalism
Lighting
It will cover structural repairs, replacement of lost or damaged items, and in some cases, the cost of rebuilding the home if damaged by a covered claim.
Lenders will also require you to have the policy to get your mortgage. If you don’t, your lender may purchase it for you and charge you the bill, but it will probably be costly with less coverage.
Does home insurance cover damages to guests?
Yes, your homeowner’s insurance covers bodily injuries and property damages caused by you, family members, or household pets to others.
Homeowner’s insurance policy premiums
Business Insider places the average annual cost of homeowner’s insurance at $1,428. However, the rate you pay may vary based on several factors, including:
Value of your home
Location
Policy coverage limit
The condition/age of your home
Policy deductible
Availability of pets
Your claims history
You may also need….
Auto Insurance: If you own a car, it is mandatory in almost every state to have auto insurance to cover damages caused by unexpected road events.
Life Insurance: Though voluntary, it can help protect your family against the loss of income, meet burial expenses, and other family liabilities in the event of your death.
To figure out which policy is more important to you, talk to a local, independent agent.
