Personal Insurance Do's and Don'ts

Many of us don't want to think about what would happen if we suddenly lost our job, became medically disabled, or tragically left loved ones to behind suddenly to fend for themselves. Personal insurance provides a safety net for you and your family in the event of such misfortunes. Knowing what to do and what not to do when deciding on the right policy can save time and money now, and assure a hassle-free experience if the worst should happen.

Let's take a look at what personal insurance is. This type of policy comes in 4 basic categories:

Income Protection
This type of insurance provides payments to you in the event that you become disabled or are otherwise unable to work.

• Do: Be sure the policy you are purchasing will provide enough income to cover any mortgage payments and monthly obligations that are imperative for you and your family's monthly needs. 
• Do Not: Choose your plan just because it is the cheapest. Be sure the benefits are what is needed to live and cover important bills if you become unable to work.

Permanent Disability Insurance
This coverage will pay a lump sum in the event that you suffer an accident or injury that prevents you from being able to work in the future. Don't count on Social Security Disability Insurance to cover your expenses as 65% of initial SSDI claim applications were denied in 2009.

• Do: Be sure to get enough coverage to not only replace your current income, but also enough to cover future medical costs and pay any outstanding bills. Your insurance agent can recommend the plan that fits your situation the best.
• Do Not: Forget any possible expenses that are necessary for you to live, if you become permanently disabled.

Illness/Injury Insurance
This type of personal insurance provides a lump payment if you suffer a sudden major health issue such as a stroke or heart attack. This would be an option if you are ineligible for income protection insurance due to being presently unemployed.

• Do: Remember that this type of policy is not just for older or at-risk people. According to The Center for Disease Control, nearly 600,000 people die of heart disease in the United States every year. Many die because they lack the money to get adequate treatment due to unemployment.

Life Insurance
Life insurance is essential for those of us who are married, raising children, or have people depending on us financially. The coverage amounts vary from policy to policy but a lump sum payment is made to the beneficiaries you choose if you pass away.

• Do: Be sure to have a policy that pays enough to pay off all existing debts, funeral expenses, and enough left to take care of your family's needs. According to J.D. Powers and Associates, studies of widows and widowers whose husband/wife died young (between the ages of 30 and 55) shows that less than 25 percent thought their spouse had enough life insurance coverage.
• Do: Shop around and compare plans. Ask questions and understand the policy before you finalize any type of insurance coverage.

For more information on which Oklahoma City Personal Insurance policy would best benefit you, give Alexander & Strunk Insurance Professionals a call at 405-751-8356.