There are many types of personal insurance policies available on the market, and it can be difficult to know which ones you need.
This article covers the two most important personal insurance policies. After reading through it, you will understand what each policy covers and how it can help you in the event of an unexpected incident.
Life insurance is one of the most important personal insurance policies. This policy provides financial protection for your loved ones in the event of your death. It pays out a lump sum of money to your beneficiaries, which can cover funeral costs, debts, and other expenses.
There are two types of life insurance –– term and permanent.
Term Life Insurance
Term life insurance is a relatively cheaper life insurance option. It covers you for a specific period (usually 20 or 30 years). If you die during this time, your beneficiaries will receive the payout. However, if you outlive the policy, it will expire, and you will not receive any money back.
Permanent Life Insurance
Permanent life insurance is more expensive, but it covers you for your entire lifetime. It also has a cash value component, which can be used to cover expenses in the event of your death. This type of life insurance is a good option for people who want to ensure their loved ones are taken care of financially after they die –– regardless of how long they live.
If you want to purchase life insurance, make sure you speak to a qualified advisor to find the best policy for your needs. They can help you find the right policy and ensure you get the best possible deal.
Disability insurance is another crucial personal insurance policy. If you become disabled and are unable to work, this policy will provide you with a monthly income until you can return to work.
There are two types of disability insurance –– short-term and long-term. Take a look at what each one covers:
Short-Term Disability Insurance
Short-term disability insurance covers you for a specific time (usually six or 12 months). If you become disabled during this time, the policy will pay out a percentage of your income (usually 60%). If, however, you are unable to return to work after the policy expires, you will not receive any money.
Long-Term Disability Insurance
Long-term disability insurance covers you for the rest of your life. If you become permanently disabled, the policy will pay out a percentage of your income (usually 50-80%). This policy can be a lifesaver if you suffer long-term disability, especially if you are the sole breadwinner in your family. If something happens and you can't work anymore, this policy will make sure you and your family still have a roof over their heads.
For more information, turn to a personal insurance service such as Binyon Agency.