What Types of Insurance Do You Need?

Insurance may seem like one of life’s necessary evils, but most financial planners agree it’s one of the most important financial products a person can buy. Why? Because it’s there when you least expect to need it, and when you need it most.

What if something unexpectedly should happen, such as a work-related accident, debilitating injury, catastrophic fire or even a death in the family? Are you and the people who depend on you protected? And, do you have enough protection to allow your family to continue their current lifestyle should the main breadwinner lose the ability to work? These are important considerations in financial planning.

The amount of insurance you should have depends on different variables, such as your lifestyle, whether or not you have dependents (and how many), how old you are, if you own a business, or whether or not you are married. One thing is for sure, though, insurance is the best chance you have for preventing your family from going bankrupt in the event of misfortune.

Below, we’ve included a brief overview of the basic types of insurance that are available to individuals. Even though this is a start, it’s always a wise idea to speak to a financial advisor or planner about your insurance needs.

If you don’t have one, you can talk to one of Tech CU’s Financial Advisors. Contact them at (408) 467-2390, send an e-mail to invest@techcu.com or go to the Tech CU website (www.techcu.com) and click on “Investment Services” at the top.

TYPES OF INSURANCE

Health Insurance
Health insurance is considered one of the most important and essential forms of insurance you can get. Though it may be getting more expensive, you stand to lose so much more if you unexpectedly suffer a medical emergency or condition. There are resources available that can help you find affordable health insurance, such as the California page of the Health Insurance Resource Guide.

Life Insurance
Life insurance offers financial protection for your loved ones in the event of your death. It can also be used as part of an investment portfolio. Check out Bankrate.com’s article, Major Types of Life Insurance, for more information on the different policies and what they do.

Auto Insurance
Auto insurance covers traffic accidents or other car-related losses. Keep in mind that the minimum liability insurance requirements in California for private passenger vehicles ($15,000 for injury/death to one person; $30,000 for injury/death to more than one person; $5,000 for property damage) will not come close to covering expenses should you get into a major accident. Therefore, you may want to consider taking more than the minimum.

Home Insurance
Homeowner’s or renter’s insurance protects you against losses to your home and property. If you are a renter, the loss of your property due to fire or catastrophic damage is not covered under your landlord’s insurance policy. It’s smart to look into getting your own insurance coverage—you could get 80-100 percent coverage of the replacement value of your belongings.

Disability or Long-term Care Insurance
This is often one of the most overlooked types of insurance, but it’s an important product to think about if you have a family history of health problems or are at high risk for certain diseases and/or health issues.

Business Insurance
If you’re a consultant or you own a business, you may want to think about different kinds of business insurance for your needs. Check out Protect Your Business: 7 Types of Insurance Coverage at the Microsoft Small Business Center.

Miscellaneous Insurance
There are many other types of insurance available, such as pet insurance, travel insurance, mortgage insurance and more. Before buying any of these policies, do your research and find out how much the policy costs, what you’re getting in return, and whether or not it’s really necessary.

MORE RESOURCES

Tech CU offers insurance services

Tech CU offers affordable, comprehensive medical, life, auto and homeowner insurance for our members. Get instant quotes and learn about the plans you can get through Tech CU by clicking here or by going to our Web site and clicking on the “Insurance” link at the top.

MSN Money Insurance Planner
Answer just a few questions with the MSN Money Insurance Planner, and you can find out what kind of insurance you need for you and your family. Click here.

Smart Money Magazine: How Much Life Insurance Do you Need?
According to Smart Money magazine, many people have “too much” life insurance. Use the Smart Money calculator to find out exactly how much life insurance you should have. Click here.