Buying a house, car or a store is not cheap and involves sacrifice. You may spend restless nights thinking about what could happen if you lose your home or car in an accident. Or you may worry excessively about the outcome for you and your family without financial support. If these thoughts trouble you, it is time find some insurance.

This might seem like a luxury but it isn’t. On the contrary, insurance is aimed at protecting the most precious things in our lives. It is true our lives are more precious than costly belongings. However, with a fixed amount in mind, we can secure our properties and our lives. This will eliminate or reduce anxiety. It will also give us a certain “security” in case something doesn’t go as expected. Then we can always pick ourselves up again.

On the other hand, insurance provides stability in the financial process reducing anxiety and improving resources. The funds generated are invested in equities and government bonds. This generates additional funds and contributes to national development.

Insurance also benefits savings funds. This is done by a monthly fee, which results in an investment fund.

There are different types of insurance based on the needs and characteristics of each individual. Basically, this refers to the reason the insurance is needed in the first place and why. These needs are based on the economic situation, age, type of work and family. 

In general, a different type of insurance is required in different categories. For example: health, life, property or home and car.

To briefly outline each offer, certain things should be noted such as: Do you own a car? If you do, liability insurance is required.  You can also insure for fire, collision and theft, especially if it’s a valuable vehicle or needed for work purposes.

In a StateFarm survey last December, results indicated that of approximately 500 tenants of Hispanic / Latino origins, only 29% had renter’s insurance. “In fact, among respondents without renters insurance more than one third (34%) said they had never heard of renters insurance. Further, most overestimated the cost of coverage and underestimated the value of their property. Not having renters insurance could leave Hispanic families vulnerable to a financial catastrophe especially during the holiday season.”

Homeowners-Insurance

In the case of homeowners, the so-called property insurance should provide up to 80% of a home replacement cost, minus land and foundation. Homeowners should also have liability coverage. The amount will depend on the financial capabilities of each individual.

Life insurance, on the other hand, protects the members of your family when someone dies. It can help to pay debts, mortgages, education for the kids or simply maintain your standard of life when the family member is no longer around. This amount will also depend on the situation (debts, annual salary, children, etc.) Universal insurance is more costly due to its temporary nature. However, it lasts longer and accumulates funds over a lifetime.

Long term insurance involves medical care after we retire from the workforce.

Medicare only pays a fraction of the cost of care (Which tends to increase with age). Medigap insurance, for example, only serves to cover this bump (What Medicare does not pay), but it is very expensive and complex. For this reason, if you want this type of insurance (and my recommendations extends to any other type of insurance), contact a financial advisor who can lay out the different types of insurance policies, amounts, fees, etc.

In the case of health insurance, this can be provided by the employer either in total or partially. It can also be contracted privately.

The HMO (Health Maintenance Organizations) has the cheapest rates but coverage comes with restrictions. This means it covers fewer services and in general, overall coverage is reduced. Typically, companies offer this type of insurance.

Finally, and with a similar type of life insurance, disability insurance is another option. This is provided when an individual has suffered some accident and / or illness and can no longer work. This type of insurance offers protection to you and your family. It covers the loss of earnings during the disabled work period. Notably, some employers cover approximately 40% of their employees with a similar type of insurance.

It is always important to know and have a clear view of the subject before you purchase insurance. For example, how much can you pay per month? How much will you need in the future? What do you want to protect? How would you like to protect it? Etc.

For this reason and as noted previously, consult with a financial advisor. They can guide you by presenting different options and opportunities available. It’s always better to be safe!

Good luck!