You probably hear people talk about insurance at parties, lunches or mommy and me get together time. They talk about their car or health insurance, the costs of keeping the policies current and how they can benefit you, especially in an emergency. Insurance is funny like that; you often do not need it until something unexpected happens. What about the 3 insurance policies that you should have but many people do not have? Those are life, disability and long term care insurance and in her video, Stephany Kirkpatrick CFP®, LearnVest Director of Financial Planning, explains why they are all crucial for your financial well-being.
Three Insurance Policies You Should Have
In her video, Stephany explains what the 3 different policies are and why they are so important. With life insurance, she tells us that basically the monthly premium you are going to be paying now will be replaced as a monthly payment to your dependents upon your death. She stresses this is crucial for anyone who has dependents because this will replace your income so they can continue living within the means they have been used to. Be aware that if you have a two parent household with where only one income is being earned, the parent that stays home needs a policy as well. In the event of that person’s death, the spouse that works outside the home could continue to work by using the benefits from the stay at home parents policy to provide care for the children.
The second policy Stephany urges you to get is disability insurance which protects you if you have an illness or accident that prevents you from working. Do not count on the disability form your company because they only provide a portion of your income and that may not be enough. The last policy she suggests you get is long term care, which would be for anyone who is no longer able to care for themselves. If you are younger and feel this is something you do not need yet, think again because this is not just for the elderly. Another point Stephany makes is that if you get a policy when you are younger, the premiums are much cheaper than they will be when you are older. If you are faced with any of these situations, contacting an expert in finances like Genworth Financial can help you. Understanding the ins and outs of insurance is something the folks at Genworth Financial have made their business to know. Instead of you trying to figure it all out, let them walk you through it and suggest the policies that are right for you and your family. Following the advice from Genworth will save you the stress and worry and potentially overpaying for policies you may not really need.