A Personal Insurance for Budgeting 101
It is important to maintain the status of “fully insured” and understand the different types of personal insurance. A catastrophic car accident, home accident, or illness can completely eliminate all gains in emergency accounts, investments, and home equity. Because of this possibility, it is prudent to maintain adequate levels of mortgage insurance, car insurance, and health insurance.
If you are self-employed, there are several insurance plans associated with your business status. Among those insurance plans, you should include, but not limit yourself to, are; property liability insurance, workman’s compensation for employees, health insurance for you and your employees, and disability for yourself. Verify required insurance plans with your attorney, property owner, and business consultant. Consider life insurance if you have dependents. There are many affordable plans available.
There is a little-known insurance called umbrella coverage. It is umbrella coverage over all your other policies. These policies are especially good for self-employed and high-asset individuals. Insurance agents do not heavily market these policies, probably because the premiums are low and the limits are high. The umbrella is one policy that usually provides extra coverage over your home, car, and business.
When you purchase insurance, don’t consider cost only, but also consider the quality of coverage and cancellation policy. Some insurance premiums are low because the quality of coverage is low and the cancellation policy is very liberal. Do your homework diligently when considering insurance coverage