If you’re still relatively young with a new family, you might not even think about insurance. However, it’s never too early to start planning for the future and protecting your family. With insurance, you can create a safe and secure environment for your family to grow and prosper. But insurance is a complicated notion for many, so here’s what every family needs to know about this important part of life:
There are different types of insurance
Firstly, it’s important to know that insurance comes in different models. For instance, life insurance is there to protect the family after the insured person has died. The policyholder gets to name people who will benefit after their death, according to the agreement in the policy. Health insurance is there to help the family pay for health care services not covered by the health care plan. Some health insurance helps with finances in case you get injured or become disabled and some pay for medical bills abroad. Property insurance helps with any losses or damage to your property or possessions (your house, your car, your business, your art, etc.) There’s also casualty insurance that protects you from legal liability when losses or injuries are caused to other people.
It ensures your financial stability
You might be excellent in budgeting and saving, but no matter how much you save, there are many unpredicted things that can appear and swipe the rug under your feet. Let’s say you don’t have comprehensive life insurance—your family might greatly suffer after your death. Even though insurance money can’t replace a family member, it can at least allow the family to grieve in peace, not having to worry about money. It’s crucial for your family’s financial stability and future to be covered with insurance.
Watch out for scams
Even though scams are not very common in insurance, there are things that can cause your family to pay up much more than you have to. If you ever bought a car on finance or took a loan, you might have paid for something called junk insurance, which is basically completely useless in your situation. In some cases, banks and car dealers can add junk insurance to your policy, costing you thousands of dollars over time. Well, it’s smart to go check out your policies and apply for refund junk insurance if you notice any Consumer Credit Insurance, Guaranteed Asset Protection, and Mechanical Breakdown Insurance. Companies dealing with junk insurance refunds will go over your reports and create a strategy that will get your money back—this is information that can be very useful.
You can use your insurance money for family expenses
One of the main uses of life insurance is to support the family during transitional times so it can pay off debts, mortgages, business setups, etc. But, it’s not possible to benefit from insurance if your family doesn’t know about it or doesn’t know how to claim it. Knowing about all the details of insurance (the provider, the policy deals, the brokers, claim processes, important times, etc.) is crucial for all family members.
Insurance brings you peace
In case of unforeseen events, your insurance company will pay the premium and cover the expenses and damages. Knowing that someone has your back at all times is very comforting and can ensure you can sleep peacefully at night. For instance, if you get into an accident and die, you’re leaving behind many things like your children’s education, their marriage expenses, your business, your spouse, your mortgage, etc. This all equals a lot of debt right now, as well as in the future. But with insurance, your family will be able to survive without issues, which is all that matters.
Parents want to do everything in their power to protect their families from hardship. One way to do so is to invest in insurance and ensure the family is safe, comfortable and happy for many years to come, no matter what the future brings.
About the author:
Peter is a fashion stylist and a writer from Brisbane, Australia. After graduating from Australian Institute of Creative Design he worked as a fashion stylist for few local fashion events. Beside fashion and styling, he enjoys traveling around exotic destinations and discovering new vintage stores. He’s future plans are in creating his personal styling business.