Every family needs several different types of insurance. Some offer protection for the near term, and some for the long term. Both types are important for protecting your family’s financial future. Make sure your family insurance plans are up to date and will cover the costs of unexpected disasters.
Home, Auto, Natural Disasters
We buy insurance for our homes, our cars, boats, and other things. Some types of coverage are required either by the mortgage company or the state. Depending on where you live, you may have special insurance that covers flooding or other natural disasters that ordinary homeowner’s policies do not cover. However, there are many kinds of insurance requiring individual decisions and are not mandated by any entity. The different types of insurance policies can have profound impacts on the future of your family. Mortgage insurance protects the lender against a default and should not be confused with homeowner’s insurance which will allow you to rebuild your home if it is damaged or destroyed. To add more confusion there is a type of life insurance policy called Mortgage protection insurance that is basically a decreasing term insurance policy set to the outstanding balance of your mortgage. So the coverage decreases as you pay down your mortgage. This is usually an expensive form of term insurance and you can probably find a better deal elsewhere. See Mortgage Protection Insurance vs Private Mortgage Insurance? , How Much Car Insurance Do I Need? and Tips for Buying Car Insurance.
Life insurance pays out money when the covered person dies. Though, perhaps not a joy to think about, it performs a necessary function that will [Continue reading]