In: Finance
Discuss some insurance options (life, car, home, umbrella) that you would consider given that you are in your 30s, married with two (2) children, have a home with a mortgage, two pieces of rental property, and two cars (both with small loans still on the cars). Again please take this information and develop some insurance strategies given what we discussed in class.
An individual must have the right set of insurance policies in order to have a strong financial life. Below are the insurance policies that individual must have in his 30’s when he owns car, home, is married and have two kids.
1. Health insurance- It provides coverage to an individual and his dependents against the surgical and medical expenses. In US, having a health insurance is must due to high expenditure on healthcare.
2. Auto insurance- An individual should have auto insurance once he owns a car because it not only provides protection against uncertain events or accidental damage to the car but also provide third party protection.
3. Disability insurance- Disability insurance is must for an individual that lives on his income and has dependents. This insurance provides income in case the insured is not able to work or becomes disabled.
4. Renters insurance- An individual must have renter’s insurance if he has rented his place and the renter will also be happy to have it because it provide protection against storm, leak and fire. It provides cover against cost associated with replacement of property.
5. Homeowners’ insurance- An individual must have homeowners’ insurance once he purchases his own house. It provides protection against injury caused to any person on the property and cover cost associated with structures. This is more prominent for individual that has purchased house in area prone to natural disaster, earthquake and flooding.