How Breadwinners Should Weigh Their Insurance Options

If you are the main earner in your household, thinking about insurance should be a priority. You need to plan ahead for a whole range of disasters, and ideally avoid putting you and your family in a precarious situation unnecessarily.

With that in mind, here are just some of the risks you need to take on board, and some of the solutions available to protect your loved ones for the long term.

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Don’t underestimate the impact of a disability

If you are in good health right now, it is probable that you rarely think about the challenges you would face if an illness or an accident rendered you disabled.

Disabilities can be life-changing and may impact your career, especially if the physical impairments you suffer are significant. This is where having total and permanent disability insurance is sensible. When you need to make a claim, this type of policy can pay out a lump sum so that even if you can no longer work due to an ailment, you will still be able to pay the bills.

Another aspect of disabilities that makes insuring against them worthwhile is that you may also have to cover the costs of additional care and support you may require, which is also factored into the best policies.

Life insurance is a must-have

It may not be pleasant to think about your own death, but life insurance is all about hoping for the best but preparing for the worst. And if your family is currently reliant on you to pay the lion’s share of the mortgage or the rent, then getting this type of cover is essential.

Comparing policies has been made much easier in the digital age, since you can quickly rank life cover from top insurance providers online. You can also still go through a brokerage service and get the help of an insurance expert, although this comes with additional costs to consider upfront.

In general, it is best to select a policy not just on the premium price alone, but on the amount of coverage that is included. You may want to get life insurance which will pay off your home loan if you die, or you may want one which also includes a lump sum payout that those you leave behind can live on as well.

Remember to regularly update your information

If you already have life insurance, then you will likely have picked a beneficiary for the policy when setting everything up. This is all well and good, but it will only work in your favor if you remember to update the insurance provider in the event of any changes to your circumstances.

For example, if you separate from your spouse and get together with someone new, this needs to be reflected in your life insurance, or else in the event of your death the payout could go to your ex.

This may seem like a minor administrative annoyance at the time, but it is all part of making insurance work for you.

Get professional assistance

You can do all of the research you like, but at the end of the day there is no getting around the fact that unless you are a professional financial advisor, you will be unlikely to have the time or the expertise to make the best decisions in every instance.

This is where it makes sense for breadwinners to work alongside an advisor who will have their best interests in mind, as well as the know-how to make the most of your money over the course of your life.

This article does not necessarily reflect the opinions of the editors or the management of EconoTimes