Financial security is vitally important for adults and their families. Recognition of that reality is evident in the efforts individuals make to secure their financial futures, which include investing in education, retirement planning and saving.
Insurance is another way individuals protect their financial security and the safety of their families. Insurance products run the gamut from auto insurance policies to annuities. It can benefit anyone to refresh their memories about the significance of various insurance products that can help them protect their financial freedom and manage unforeseen life events that much more easily.
Annuities
The Office of the Insurance Commissioner of Washington State notes that annuities are a type of contract between a consumer and an insurance company. When individuals purchase an annuity, they may pay a large, single premium or make a number of payments over a designated period of time. In exchange for those payments, annuity holders guarantee a future income. Money in an annuity grows on a tax-deferred basis. When an annuity reaches maturity, money can be withdrawn in a lump sum or withdrawals can be arranged on a fixed payment system, which is why annuities are often characterized as means to ensuring income later in life. Insurance companies typically offer various types of annuities, so individuals can speak with an agent to determine which vehicle is best for them.
Life insurance
It’s easy for young adults to overlook the importance of life insurance. After all, few individuals in their twenties or thirties think about providing for their families upon their passing. But life insurance is vital to securing the long-term financial security of your family, even for those individuals who have yet to start a family of their own. In addition, monthly premiums on life insurance policies tend to be lower the earlier a policy is opened, which provides another benefit to looking into life insurance at a young age.
Travel insurance
The utility of travel insurance took center stage during the pandemic, when millions of individuals across the globe were forced to cancel or postpone travel plans due to travel restrictions at home and abroad. Before purchasing travel insurance, it’s vital to read policies carefully, as individuals want to be sure the policy they’re purchasing will protect them if they are forced to cancel a trip. Policies differ, so some might offer protection against variables like a pandemic, while others may not. The main reason to purchase travel insurance is to secure protection against financial loss if you’re forced to cancel, delay or interrupt a trip. Confirm what a policy does and does not offer with an insurance agency representative. The knowledge that a travel investment is protected should plans change can make it all the more enjoyable to plan vacations.
Natural disaster insurance
Homeowners and even renters are urged to carefully read their existing homeowners’ or renters’ insurance policies to confirm what level of coverage, if any, their policy provides against natural disasters. Some policies specifically note certain coverage is not provided. For example, residents in coastal areas may have policies indicating flood protection is not part of their coverage. However, many companies will offer separate coverage against natural disasters. Such supplemental coverage is worth investigating as the effects of climate change become more and more apparent in the coming years.
