Beyond the Benefits: Three Essential Insurances to Reduce the Risk of Financial Loss

Life is unpredictable. Everyone faces challenges, including incidents like chronic illness, car accidents, identity theft, and even job loss. Reading the future is impossible, but most people can prepare themselves with at least a little bit of protection when they buy insurance.

Insurance is a way of managing risks that allow people to draw on the resources of a multitude when they need it. It creates a safety net for you, your family, and your belongings. It’s also one of those things that many people don’t think they’ll need until they need it—by which point it’s too late. Insurance requires a measure of proactivity.

Act now, get ahead of any financial issues later.

In the United States, more than 83% of jobs come with insurance. The amount of insurance and the details of the policies vary.

Even if your company offers benefits, how do you know if you’ve got enough insurance to cover a catastrophe?

And if you do have insurance, are you covering the right things?

People who travel a lot or have pets may be comparing different policies than someone looking for an addendum to a home-owners policy or full coverage on their vehicle.

How Much Life Insurance Do You Need?

If you’re making around $60,000 a year, check to make sure your life insurance policy is worth around $600,000-720,000. This is because a life insurance policy should pay out ten to twelve times the amount of your yearly salary.

However, life insurance needs vary. You might want to take a more detailed look at what your family would need if you passed away.

Calculate living expenses for as long as you think your family would need your support using solid financial planning software like WealthTrace. Include enough to pay off auto loans, credit card debts, and the mortgage, and think about whether or not you want to cover retirement for your partner.

Thinking About the Unthinkable

We understand that no one wants to think about the need for life insurance. You will probably live a long and fruitful life. For some there is a stigma about the entire idea: if I think about this, am I inviting disaster?

The answer is no. Hopefully, your family will never be in that position, but it doesn’t hurt, nor bring you any bad luck, to plan for any chance. A life insurance policy means the difference between additional hardship for bereaved loved ones and a secure future for those left behind. 

Planning for such events isn’t pleasant, but it’s not something you have to dwell upon once you have it. Secure your family’s future and then go on to live with one less concern in the back of your mind.

Do you Travel?

If you like touring other countries or you travel for business, it might be worthwhile to check into travel insurance. Several travel insurance policies cover medical expenses while you’re overseas, while sometimes the health insurance packages that come with your job won’t.

The other side to travel insurance policies is that some policies cover fees associated with trip cancellations.

It’s nice to know you’re covered if something happens to stop your travel plans or delay them, such as missing a connection or getting too sick to leave home. Some policies insure baggage, too, so you don’t have to panic if your Tumi Latitude suitcase goes missing.

Proper Preparations

In addition to actual travel insurance, there are things you can do to help ensure your travel experience is safer and prone to fewer hassles. Proper planning makes a big difference, especially if you do run into a snag on the road.

Pack backups of anything too important to do without, if you can. A couple of spare sets of clothes can be a lifesaver in case of a missing bag or a spill.

Spare cash tucked away is good in case of unexpected financial issues, giving you at least enough of a cushion to make a call or rent a room.

Packing efficiently can make a difference to all your planning.

You want to minimize risks to your valuables by aiming for redundancy and making sure they’re well-protected. An OGIO travel bag can meet all those needs, for example, offering durability, efficient storage, and helping to make your travel preparations that much easier. 

Caring for your Furry Friends

Pets aren’t covered by a family’s health insurance even though they’re often thought of as children. You feed your pets, you cuddle them, you play with them, and you give them comforts because they’re part of the family and that’s how you can show your love for them.

Insuring them shows love, too.

Vet bills can be expensive.

Pet insurance can cover things like chronic illnesses, injuries, and even routine checkups for your pets. It’s worth the time to shop around. Some policies will even cover holistic and alternative treatments or pre-existing conditions.

The peace of mind alone could be worth it. 

Prevention Planning

As with any travel venture, you may find that you can reduce the risk of difficulties by proper preparation. Make sure your pets are up to date on all their shots and any other treatments they may need.

Health maintenance procedures like having your pets spayed and neutered, if appropriate, can go a long way toward preventing unseen difficulties. 

If you plan on traveling with your pets, make doubly sure to plan accordingly. You will need pet food and can’t count on being able to get exactly what you need when you need it.

Take spares of any of your furry friend’s essential items. Check your destination for pet stores but also any emergency pet clinics, just in case. 

Even though we never want to think about bad things happening to our innocent family members of the four-legged (and sometimes other!) variety, planning ahead can make sure a bad situation doesn’t turn into a worse one.

A Common Thread: Preparedness

All of these types of insurance carry a commonality: be prepared for unexpected financial issues. In an ideal world, we wouldn’t have to deal with these things, of course, but life doesn’t work that way.

A little bit of preparation and forward-thinking can make a world of difference when things do go wrong. 

Related practices can do wonders for improving your stability and security in the face of adversity. Seek some financial planning quotes to better learn how to manage your finances and balance them against future challenges.

Set aside money in savings, on top of insurance policies, if you can, just in case something comes up.

Learning how to better manage your money is an important skill not yet taught in schools, but there are plenty of experts who can help you. 

The resources are there for those who know to look for them. Be proactive. Don’t take chances with your future, or that of your loved ones. By the time something happens, it’s already too late to start taking preventative measures.

Having a plan in place reduces the stress and cost of the unexpected that life can throw at us, by giving you an immediate course of action to take.

Equally important is the need to have financial measures in place to help you enact your plans. 

Peace of mind is difficult to find in an often unpredictable world. Being prepared for the curveballs life throws your way can grant you peace of mind and also a way to deal with them.