Insurers Market Place
Learn all You Need to Know About Insurance
Why you need to seriously think about all kinds of Insurance?
What kind of insurance is important to you?
Where do we learn about insurance? They definitely don’t teach you anything about insurance in school. As adults we’re left trying to navigate through the maze of this or that policy not knowing if we even need most of them. We might as well be learning quantum physics because it just goes over our heads. This is a subjective list of insurance types that will help you in life and a few that you should stay clear of.
Beneficial Insurance -
Any bank will require you to have homeowners insurance if you own your own home. Also, if for some reason you lose your homeowners insurance for any reason (nonpayment, non-renewal, or cancellation) the bank is immediately notified. Banks will place their own insurance on it and bill the homeowner. The bank will give you the opportunity to insure your home on your own, but will not allow it to go uninsured for too long. Unless you've paid off your mortgage, there's really no way out of homeowners insurance. I can remember the one time that my homeowners insurance paid off significantly. Back in 2014 we were on vacation in Florida for 2 weeks and when we returned, we were greeted with a flooded house. To pour salt on the wound, the water had been streaming down the driveway for at least a week and not one neighbor thought it to be out of the ordinary. If it wasn’t for the best plumbers in Escondido and their referrals to a water restoration company, we could have paid more. I’d like to give thanks to our local plumber.
Vehicle insurance is a must have! Not only do you need it, it’s the law and you can find yourself in a heap of trouble if you get in accident without it. Even if you aren’t in an accident, if you get pulled over you may find your license suspended.
Generally if you’re under 25 you wouldn’t need to buy health insurance if you are still under your parent’s plan. However, anyone over 25, add it to your list of must haves. Healthcare.gov reported in 2014 that if you don't have health insurance, you'll need to pay whichever is higher, “1 percent of your yearly household income or $95 per uninsured adult ($47.50 per child under 18)”. In 2015, the fee jumped to 2 percent or $325 per person, and in 2016, it became 2.5 percent or $695 per person. Next year and in the future the fee will be adjusted for inflation.
Insurance You Might Need -
If you become incapacitated during a working year, disability insurance can replace your income. This can make all the difference in the world if it’s a single family income or if one spouse makes most of the money in the household.
People usually start thinking about life insurance once they get married or start a family and have a child or two/three. The last thing anyone wants to do is to pass on debt to our loved ones once we’ve passed. I can speak from experience, case in point…my father-in-law. He had owned a business most of his adult life and never mentioned to us that he’d been in financial hardship most of that time. When he passed, my wife and I had to take over the store and most of the bills with it. To make matters worse, he had never purchased the life insurance policy that we set him up for. Apparently $60 a month was just too steep for his budget. If you are unmarried r childless there may be instances that a life insurance policy can help you after death. For instance, if you cosigned a car loan, college loan, or credit card with a family member they would be financial responsible for those debts.
Basically insurance on your insurance. Usually in $1 million increments for extra liability coverage that protect over and above your auto and personal liabilities should they become exhausted. If you’re in the middle to upper middle class you should consider umbrella insurance. Generally it depends on what you have to lose and how concerned you are about a potential lawsuit. Just because you may not be a millionaire, people can always find reasons to sue you. Thus is why they developed umbrella insurance. Specifically important for physicians and business owners.
Insurance You Can Do Without –
Credit card insurance:
You should steer clear of any kind of insurance that touts to pay off a credit account. Whether it’s a credit card, mortgage, or car loan, you can get this coverage just by having regular disability or life insurance. It is true that most homeowners without a large enough down payment on their home are required to buy private mortgage insurance until the loan balance reaches %78. However these types of credit insurance or only beneficial to the insurer. For example, credit card insurance, which manifests if you have trouble making your monthly payments, will not pay the balance of the loan only make those payments. Most people will tell you it’s difficult to get them to even do that. Generally, most people that purchase this kind of insurance is typically concerned about credit card fraud and identity theft. But they wouldn’t have to pay in this scenario so what’s the point?
Life insurance for a child:
Some folks will buy this insurance just in case of the unthinkable. Potentially to help with funeral costs and what not. But they’re probably better off investing into that child’s future and college fund.