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Protecting your loved ones within your budget

Protecting your loved ones within your budget

November 25, 2013

There are numerous reasons to purchase an insurance policy; for example, protecting your family in the event of illness, peace of mind while travelling,  and safeguarding your financial future. But while insurance coverage can help protect you and your loved ones, you also want it to suit your budget, and even more importantly, your needs.
Here’s what you need to consider when selecting the right insurance coverage.

Step 1: Assess your current and projected financial situation.

To help you decide how extensive you want your coverage to be, answer the following questions: When do you plan to retire? What is your age and current medical condition? Do you plan to send your children to college? When do you hope to pay off your mortgage? 

Step 2: Decide what type of insurance coverage best suits your lifestyle and financial needs.

If you’re carrying debt on your home, for example, mortgage insurance is an option that can help you and your family maintain your home when you need it most. Should you pass away, the right coverage can help your family pay off your mortgage in one lump sum payment. Alternatively, if you’re temporarily disabled, mortgage insurance can help you keep up with your mortgage payments and protect your credit history until you’re back on your feet.

Step 3: Do you love to travel?

Investigate travel insurance. For those that love to hit the open road, travel insurance can help you prepare for the unexpected. For instance, perhaps you need to cancel a trip at the last minute because of a family emergency. Or maybe you need emergency medical care while visiting family overseas. Either way, costs can add up fast. The right travel insurance coverage, however, can make sure you’re protected from suitcase to sandy beach. 

Step 4: Decide on extra insurance like credit card protection.

Mortgage payments and travel plans aren’t the only things in life that need safekeeping. A credit card is one of the most convenient methods of payment for many people. But if you suddenly lose your job or become disabled, meeting your monthly payments can prove difficult. Luckily, credit card insurance protection can be a financial safety net, helping you to pay off your balance and maintain a healthy credit rating. 

By the taking to time to assess your current financial situation and future needs, you can select the right type of insurance coverage for proper peace of mind.