When it comes to personal insurance, you may already own an auto insurance policy or homeowner's policy, but there are other types of insurance plans that can help you protect your income. If you are looking for more ways to insure yourself against the unknown, consider the following options.
Mortgage Disability Insurance
You may already purchase disability insurance through your employer. Some employers offer short-term and long-term disability coverage, which require a deduction from your paycheck to cover the premiums. However, if you do become disabled, this coverage may not be enough to cover all of your bills. Mortgage disability insurance can help you keep your home even if you aren't able to work due to a disability. This type of policy helps cover the cost of your mortgage payment for a predetermined length of time, giving you added peace of mind that your home is protected.
Income Protection Insurance
Should you lose your job for a reason other than a disability, your options for an income safety net are limited. You may have some savings to live off of, or your employer might have provided a modest severance package. If you are terminated from your job, you might be eligible for unemployment. These options are not all dependable, and your savings account can only last for as long as you can stretch it. Income protection insurance is designed to provide that safety net after job loss. These policies can be complex, but your personal insurance agent can help you find the right policy to meet your needs. With income protection coverage, you can continue to receive regular income for the length of time defined by your policy. With steady income going into your bank account, you can spend more time looking for a new job and less time worrying about how you'll pay the bills.
Whole Life Insurance
Traditionally, whole life insurance policies have been designed to provide a payout upon your death. However, policies written today can feature an added benefit in the form of pre-death benefits. This option lets you access the money you have built up in the policy to cover certain expenses. For example, if you are diagnosed with a serious or terminal illness, you may be able to access a portion of the policy to cover medical expenses. This can help preserve your family's financial stability while also helping to ensure you get the care you need. If you already have a whole life insurance policy, ask your agent if this is included. If not, consider switching to a policy that offers pre-death benefits.
Insurance companies offer a wide range of policies to cover virtually all of life's financial issues. Talk to personal insurance agents to see which policies fit your family's financial needs.