Insurance Coverage

Insurance when used properly, reduces the risk of a financial catastrophe which could destroy many years of hard work. However, like investing and contributions, insurance needs to change from time to time, and in some cases is no longer needed but should be replaced by other types of financial instruments.

While there are many commercial organizations that sell insurance as a financial management product for a fee, individuals can also self-insure through saving money for possible future losses. For example, early in life when you may not have accumulated much savings, you may purchase a Term Life Insurance policy from a commercial provider that pays your surviving partner/family a sum of money to fill the income gap left when your salary stops due to your death.

However, later in life as the Term Insurance premiums you pay for the same coverage increase dramatically as you age, you may have saved enough money through your retirement plan and other sources to discontinue the Term Insurance knowing your savings, which may be significant, are there for your family to rely on.

Here are some categories and types of insurance within each category to guide your mastery of this subject: 

LIFE 

• Term Life Insurance
• Whole Life Insurance 

HEALTH 

• Major Medical and Surgical Coverage
• Dental Care Coverage
• Vision Care Coverage
• Medical Health Care Coverage
• Dependents’ Health Care Coverage

CASUALTY 

• Accidental Death & Dismemberment Insurance
• Automobile Insurance
• Property Theft & Damage (Homeowners)
• Umbrella Liability