In this day and age you need to be prepared and have protection in place to cover you for worst case scenarios. If you are like most Americans who have gaps in income and savings and cannot afford to cover major financial pitfalls, you are going to need to fill those gaps with some type of insurance.
Young professionals in particular are most at risk for being underinsured, whether it’s because of unstable income or simple lack of knowledge.
Without insurance all of your goals and dreams can easily come crumbling down because of the financial strain an unexpected illness, damage or death in the family can cause. Insurance guarantees compensation for specified loss, damage, illness, or death in return for payment of a premium. You don’t receive a return on your premium if you never file a claim, but you will find peace and comfort in knowing you are covered if a situation you can’t afford ever arises.
Here are the four most overlooked yet necessary kinds of insurance policies you should carry especially for young professionals.
Health Insurance – covers or offsets the cost of medical care from seeing doctors for preventive care to hospital stays for unexpected illnesses, and more serious medical conditions.
Why This Coverage Is Necessary: medical bills are very costly, so any type of treatment without insurance will significantly cost you. It’s actually mandatory to have coverage in the U.S. and during tax time you will face a penalty of $625 or 2.5% of your income, whichever is greater, if you are still uninsured.
Where To Go: https://www.Healthcare.gov to get started
Disability Insurance – This coverage replaces a portion of your income if you are ever unable to work because you are injured or hurt for a significant amount of time.
Why This Coverage Is Necessary: four reasons, the average time away from work for disability is 2.5 years. You have a 1 in 5 chance in becoming disabled before age 65. You are also more likely to become disabled than die in an accident, and health insurance will cover the cost of your injuries but disability insurance is necessary to fund other bills like living expenses if you have insufficient savings.
Renter’s Insurance – this policy covers the replacement of your personal belongs if they are ever stolen or destroyed.
Why This Coverage is Necessary: a landlord’s homeowners insurance does not cover your personal property.
Life Insurance: this coverage pays out if you were to pass away. You can purchase varying amounts for specific time periods such as $100,000 worth of coverage for a 10 year term.
Why This Insurance Is Necessary: you will need this coverage if there are people who depend on you financially, like children or a spouse, or if your death and funeral would mean a financial hardship/loss for others. Small policies can be obtained if financially you simply want to cover burial expenses.