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| Ⓒ Towfiqu barbhuiya / Unsplash |
By Saba Murtaz
While 2023 has just begun, this is a perfect moment to assess your aspirations for the future. Use this time to go over your finances and develop long-term goals. It's also a good idea to reassess your financial safeguards, including insurance.
The appropriate type and amount of insurance depends on your individual circumstances, such as kids, age, lifestyle, and employment benefits.
The majority of financial experts advise buying Life insurance, Health insurance, Travel insurance, and Pet insurance this year.
Read More: What happens to your life insurance when you leave a job?
Life Insurance
Finding the best life insurance for your circumstances is important if someone financially depends on you. According to LIMRA, a research organization supported by the insurance industry, 44% of American households would experience financial difficulties within six months following the death of the major wage earner, and for 28% it would happen in just one month.
If you already have life insurance, now is an excellent time to review your policy options and coverage amounts to ensure your designations still address your needs.
Health Insurance
A contract for health insurance is made between a company and a consumer. In exchange for a monthly fee, the corporation promises to pay all or part of the insured person's healthcare bills.
The contract is often a one-year arrangement in which the insurer is liable for paying specific expenses linked to illness, injury, pregnancy, or preventative treatment.
Health insurance is difficult to understand in the United States. It is a business with a variety of regional and national competitors, and its coverage, pricing, and availability vary by state and even county.
Typically, you may only purchase health insurance during open enrollment periods set by the health insurance companies. The open enrollment period for marketplace plans typically runs from November 1 to December 15, though some states extend the deadline.
If you've just had a life-changing event, such as getting married or having a baby, you can make an exception to the open enrollment period.
Read More: Avoid These Mistakes When Buying Insurance
Pet Insurance
A pet owner can lower the overall cost of high veterinarian bills by purchasing pet insurance. This protection is comparable to human health insurance plans.
A pet owner can get a policy that can reduce their out-of-pocket payments to aid with annual bills and unplanned emergencies. A pet owner will pay an annual or monthly fee, similar to health insurance for humans.
Pet insurance is typically inexpensive, costing $15 to $40 per month for a cat and $30 to $70 for a dog. That's a modest sum to pay for the peace of mind you'll have knowing a large vet bill won't bankrupt you.
Travel Insurance
Travel insurance covers the costs and losses associated with traveling. It provides valuable security for those who travel both domestically and abroad.
Nearly half of Americans who have traveled without travel insurance have been charged fees or have had to pay for losses.
Following the COVID-19 outbreak, 36% of Americans believe they are more inclined to buy travel insurance for international travel, while 34% say the same for domestic travel.
Your policy might provide coverage for a variety of travel-related situations, depending on your policy position, such as:
- If a situation arises that prohibits you from traveling as planned
- If something goes wrong during your journey that costs you money
- If your baggage is misplaced or damaged
- If you experience an injury or illness that requires medical attention
Time is critical when getting travel insurance. To ensure that you are protected against a situation that delays or forces you to cancel your vacation, purchase travel insurance as soon as you book your flight or accommodation.
Don't forget to analyze your insurance needs while you make financial plans for the future. Whether you need to purchase a new insurance or make modifications to an existing one, remember that your coverage must keep up with your lifestyle.
