You Must Have This Insurance Policy

Why Insurance is Important for Millennials

     Who says insurance must be owned only by people who are already married or have a family? The millennial generation also needs to have insurance. It's better for you to prepare insurance from now on, instead of spending money on lifestyle needs,

An insurance policy can protect you from life hazards, natural disasters, accidents, and life-threatening illness.

You can't stop bad things from happening, but a good insurance policy can provide financial coverage for these unexpected costs.

These are five insurance policies that you should consider in your life.

1. Life insurance

The purpose of life insurance is to protect the people who depend financially on you. If your parents, spouse, children, or other loved ones face financial difficulties in the event of your death, compulsory life insurance should be at the top of your list of mandatory insurance policies. Think about how much you earn each year (and the number of years you plan to keep working), and purchase a policy to replace that income if you die prematurely. Funeral costs factor in as well, as unexpected expenses become a burden for many families.

2. Long Term Disabilities Insurance

The prospects for long-term disability (LTD) are dire, but some people choose to ignore it. Even if you think "nothing will happen to me", relying on hope to protect your future earning power is not a good idea. A disability policy that provides sufficient coverage to allow you to enjoy your current lifestyle even if you are unable to work anymore.

Long-term disability provides a monetary benefit equal to a portion (for example, 50% or 60%) of the insured's wages for the covered disability. Long-term disability usually begins where short-term disability ends. In order to receive benefits, the disability must occur after the issuance of the policy and then, usually after a waiting period. Medical information certified by a doctor, must be provided to the insurance company for consideration.

Most long-term disability insurance policies categorize disability as either self-employed or any occupation.

Self-employment means: the insured, due to disability, is unable to perform his regular job, or similar work. Any employment means: the insured person, due to disability, cannot perform any work for which he is qualified.

3. Homeowner's Insurance

Replacing your home is a high cost. Having proper homeowner insurance will make the process easier. When buying an insurance policy, look for one that covers replacement of the structure and contents, as well as the cost of living elsewhere while your home is being repaired.

Keep in mind that the cost of rebuilding a house does not include the cost of the land, because you already own it. The cost of building a house depends on the age of the house and the facilities in it, the replacement cost can be more or less than what you paid.

To get an accurate estimate, find out how much local builders are charging per square foot and multiply that figure by the amount of space you will need to replace. You also take into account, the cost of upgrades and special features. In addition, make sure the policy covers any liability for any injuries that may occur to your property.

4. Car Insurance

Some level of car insurance is required by law in most places. Even if you are not required to own one, and you drive an old car that has been paid off for years, car insurance is something you should not pass up. If you are involved in an accident, others are injured, or their property is damaged, you may be subject to lawsuits where you may lose everything you own. Accidents occur fast, and the results are disastrous. Not having auto insurance or buying only the required minimum coverage, saves you a little money, and puts everything you own at risk.

5. Renters Insurance

Tenants need the peace of mind that they will quickly recover in the event of a loss. Luckily, renters insurance is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal effects, liability, and additional living expenses for insured losses.

For a single property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover renters' personal property. Therefore, it is important for renters to obtain renters insurance to protect their assets.

Although renters insurance is different from homeowners insurance, they have the same components::

- cover for residence

- coverage for other buildings,

- for private property

- for additional living costs (lost of use)

- for obligations, and

- for payment.