What Not to Skip when Choosing Insurance

November 1, 2023

Building blocks with graphics that represent the different types of insurance symbolize how to choose insurance when planning your future.

What You Need to Know about Insurance

Insurance plays a crucial role in providing financial protection, legal compliance, and general peace of mind for individuals, families, and businesses. Often referred to as a financial safety net, insurance is something that we all need but hope to never use. Whether you’re seeking to protect your loved ones or if you’re striving to secure your financial future, understanding the role of insurance is essential. There are multiple types of insurance ranging from healthcare to pets. Some types of insurance are legally required, some are highly recommended, and some may not make sense for your lifestyle or financial goals. Here are the three types of insurance everyone should have:

  • Health Insurance

In this country, health insurance is an essential and necessary insurance coverage. Health insurance has evolved into a complex system that is difficult to navigate, but crucial to help avoid the costly prices connected to medical care. There are countless plans available for individuals either through state funded or employer sponsored plans. These plans come with different coverage levels, costs, and networks covered by your insurance provider. Policyholders pay regular premiums to the insurance company to maintain healthcare coverage. The payments can range from a monthly basis, quarterly basis, or annual basis depending on your plan and provider.

In addition to paying a premium, there is usually a set deductible that the policy holder pays out of pocket before the insurance company starts covering medical expenses. When deciding on health insurance, be sure to fully understand the premiums, coverage, benefits, and deductibles. If you’re looking for a non-employer sponsored healthcare plan or looking to access Medicare or Medicaid benefits visit healthcare.gov.

  • Life Insurance

Life insurance serves as a financial safety net for your loved ones, providing them with financial support after you pass away. The specific details can vary based on the type of policy and the insurance company, so it’s crucial to carefully read and understand your policy documents. Similar to health insurance plans you pay regular premiums based on your plan. After you pass away, the funds you’ve built over time will be given to your beneficiary. Life insurance is a fundamental financial tool that offers protection, security, and peace of mind for you and your loved ones. It helps ensure that your family can maintain their financial stability and cope with the financial challenges that can arise after your passing. It’s an important part of responsible financial planning, especially for those with dependents or financial responsibilities.

  • Car Insurance

Car insurance is legally required by most states in the US. Operating a vehicle without proof of up-to-date insurance can result in fines or license suspension. It is legally required because it helps financially protect individuals involved in an accident that aren’t at fault. Car insurance can span to cover property damage, liability, and medical expenses—but it all depends on your insurance plans. Car insurance is priced based on your age, driving experience, location, accident history, and type of car. Make sure to keep your insurance up to date to comply with state laws.

Seek Professional Advice

Even with the online resources to help explain insurance, it’s best to seek professional advice catered to your situation. At Firefighters Credit Union we are knowledgeable about finances and money-related processes. Schedule a meeting with one of our financial experts in La Crosse, Onalaska, or Holmen today!

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