Types of Insurance Available

Each type of insurance protects against a risk that one might experience. In the previous section you cataloged the risks you are currently facing and in this section you are going to determine the type of insurance that's needed to cover them.

One of the primary risks we are exposed to is health related. There are many risks you might not be exposed to or you can avoid such as those caused by owning an automobile or a house. But a health risk is one no one can avoid. So let's begin here.

First, it is recommended that we do a medical and dental check-up atleast once per year. These check-ups should be covered by a regular health and dental policy. If on one of these check-ups the doctor discovers something serious that requires medical treatment, the cost could be in the thousands. And if you had to pay out of pocket it could reduce your savings by a large sum.

Next comes life insurance. If there is anyone who depends on you for financial support or who's life would be financially affected if you were no longer around you need life insurance.

There are various types of life insurance and each is designed to fit different needs. Each type falls into one of two categories - temporary and permanent. Temporary life insurance - also called term life - covers the insured for a period designated in the policy. Once the period expires a new policy has to be purchased.

Permanent life insurance on the other hand last forever as long as you pay the premium. There are popular flavors of permanent life - whole life and universal life. Each has different features. We go into these features in the life insurance section.

So if you have people who depend on you or if your death would leave a pile of debt you should get life insurance.

Sickness and death are two major risks we cannot avoid. We can protect against the effects of these risks on ourselves and on the people we love.

Now that we've identified the unavoidable risks we face and the type of insurance that protect us against them lets move on to how we go about getting insurance at a reasonable price.

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