5 Reasons to Plan for Family Insurance 

 January 21, 2020

By Scott Teesdale  

minutes read time

5 Reasons to Plan for a Family Insurance Policy 

Plan for Family Insurance
Image by sathyatripodi from Pixabay

We dream of a life where nothing bad ever happens. We pray that no harm ever comes to our loved ones. But in reality, there is no way of ensuring this.  We must plan for family insurance and the unexpected in life.

Obtaining an insurance policy that covers the entire family is a simple way to put your mind at ease. 

It’s crucial to have at least some form of insurance. Whether an employer offers this benefit to you or you purchase one from an independent company, make sure it includes all the essential aspects. Typical insurance policies that you should consider are health, dental, accidental, home, auto, life, and others applicable to your needs. 

The idea is to take steps to protect your family and finances. And when you can buy one policy that covers the entire family, it saves time and money and disregards the need to purchase separate ones for each member. 

What kinds of insurance products do I need?

It’s all about playing it safe. Though we hope that no calamity ever occurs, it’s impossible to predict what tomorrow could bring. So the best route is to take precautionary measures. Having the right mix of insurance policies can make an unexpected circumstance a less stressful moment.

Plan for Family Insurance; options to consider: 

Family Insurance Planning
Image by Gerd Altmann from Pixabay

1. Health insurance

This helps cover medical costs in case you or your family gets seriously ill. Hospital bills can skyrocket. Now you can focus on getting well instead of worrying about the money.

2. Critical illness insurance

This is a form of health insurance for life-altering conditions that require significant long-term care. Diseases include cancer, stroke, Alzheimer’s, etc.

3. Dental insurance

This is another type of health insurance to cover expenses associated with dental care.

4. Auto insurance

This insurance covers expenses related to vehicle damage due to an accident. But various types provide insurance injuries to the driver, passengers, or the people in other cars. In many countries, it is mandatory to acquire some auto insurance.

5. Homeowner insurance

This type of property insurance helps cover losses and damages to your home. However, it can also cover costs related to accidents in your home or on the property.

6. Life insurance

Put, this is a way to provide financial protection for your dependents after your death.

Why do I need family insurance?

Often people do not pay heed to the importance of planning for family insurance simply because of the upfront cost. According to the Centers for Disease Control and Prevention, the number of uninsured people under the age of 65 in 2018 amounted to 30.1 million, with 5.2% under age 18 and 13.3% between 18-64. 

Here are some reasons that will hopefully make you think differently when planning for family insurance.

Image by TréVoy Kelly from Pixabay

1. You’re buying safety in advance

What would you do if you are suddenly faced with a critical illness, an accident, or the sudden death of your spouse/partner? 

People fail to see how an insurance policy can act as a safety net when unexpected events happen. An insurance policy is a way of getting financial support in advance for times of crisis.

2. Safeguarding your assets

Whether you buy a home or a car, it’s natural to worry about protecting your investments from unforeseen incidents, natural disasters, and theft. Insurance helps protect them.

3. A way of reducing stress

Once you have a family, every decision you make is for their well-being. With rising costs, having backup plans and adequate safety measures in place takes a load off your mind. Acquiring the right insurance policies brings significant peace of mind. Now you can focus on other essentials for your family. 

4. Helps to mitigate risks 

Life is full of chances and risks. But family insurance can help manage these risks. 

Planning for uncertainties such as falling sick, having an accident, losing your job, or untimely demise is all part of your responsibility. So taking out an insurance policy can reduce the financial burden for you and your family if a certain situation does arise.

5. Supports future goals

Even if you don’t say the words, the future of your family is always uppermost in your thoughts. Though everything is perfect today, you need to plan and save for tomorrow. Maybe a life insurance policy is the best solution for you. It is a great way to provide for your family even when you are gone. 

But many times, buying life insurance is for the sole purpose of encouraging savings. Some insurance policies offer terms that require payments to be made for a set number of years. That way, you can allocate a portion of your income into this type of saving. When an insurance policy matures, you will receive a lump-sum amount. 

Time to get family insurance

Health Insurance
Image by Gerd Altmann from Pixabay

Once you’ve decided on getting family insurance, follow these three steps:

1. Get in touch with an advisor

To avail the security of planning for a family insurance policy, consider getting in touch with an adviser. They can help you understand which insurance policies will benefit your family. 

Information such as your income, assets, and liabilities will help them determine which plan is the most suitable.

But besides advice, advisers can also help you draw out a suitable financial plan for your current lifestyle as well as when you retire.

Just remember that while an insurance adviser can guide you through many aspects of various policies, sometimes you require the assistance of a lawyer. For instance, in the case of an accident, you should consult a car accident attorney for advice about which policy is best for you and your family. The lawyer can help you determine how much your car insurance claim is worth. Moreover, they can help in legal cases, whether it’s to reach settlements or obtain payments from the opposing driver.

2. Provide additional documents

Just like any other form, insurance policies require some paperwork. While an adviser can help fill out the application, you will need to supply the supporting documents. Depending on your health and age, you may also need to provide additional medical information. 

Overall, the process is relatively simple. Always remember to read the fine print. Understand exactly how much premium you will need to pay, and when these payments are due. Also, ask about the implications of a skipped payment. Above all, whenever in doubt, do not hesitate to inquire about the specifics. Clarify all issues before signing the documents.

Final thoughts

Life is full of surprises- the good and the bad. Being prepared is a great way to deal with them. A family insurance policy is an ideal example of safeguarding you and your family.

It’s time to invest in your family by making a plan for family insurance.

Author: Alycia Gordan is a freelance writer who loves to read and write articles on healthcare technology, fitness, and lifestyle. She is a tech junkie and divides her time between travel and writing. You can find her on Twitter: @meetalycia

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I use data and technology to help Millennials navigate the ins-and-outs of buying or selling a home in today's market. From appraisals to mortgages to zoning, I cover it all with the goal to teach others. Connect with me on social via the icons above.