Budgeting – Planning For Insurance

Being insured protects you from major financial losses and is therefore now a very necessary part of all our lives. You should consider having the following types of insurance coverage:

o Health Insurance (may be paid by your employer). This covers most though not all of your doctor and hospital bills. A job wherein you are provided health insurance for yourself and your family is a definite benefit as buying your own medical policy is generally more expensive.

o Disability Insurance (again may be paid by employer). This will cover your expenses at a time when you are sick, injured or not able to work for a fairly long period of time. Again it is a real benefit if your employer is able to offer you this insurance.

o Life Insurance. In the case of your unexpected death, your chosen beneficiary will receive the insured sum.

o Auto Insurance. This will cover almost everything from repairs to damage suffered in an accident.

o Homeowner’s Insurance. When you take a mortgage to buy a home, you will be required to go in for a homeowner’s insurance. This will not only cover the losses in case of theft, fire or flooding but also provides cover if something happens to the physical structure of the home.

o Renter’s Insurance. Somewhat similar to the homeowner’s insurance although on a smaller scale, this will only cover the losses due to an apartment fire or flooding or of stolen belongings like a TV or jewelry.

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