The role of insurance is to protect against the unforeseen events of life that might negatively impact one’s financial plans and assets. Personal injury, illness, and accidents are examples of risk in everyone’s life. Having the needed insurance plans in place when these circumstances arise provides peace of mind and reassurance. Proper levels of coverage can also impact your monthly budget. Below is a primer on the basic types of insurance most people need.
Auto Insurance – If you drive a car, then auto insurance is a fact of life. Auto insurance offers protection from financial loss and vehicle damage resulting from harm caused to or by others while driving. All states require a minimum amount of liability coverage to protect others from damage caused to them. While collision coverage protects from loss resulting from damage caused to the vehicle in an accident, comprehensive coverage protects from theft and loss caused by vehicle damage in instances of no accident (i.e., a tree falling on it).
Disability Insurance – The inability to work and earn income because of medical reasons is one of the greatest financial risks people face. According to the Social Security Administration, a person entering the workforce today has a 1-in-3 chance of becoming disabled before retirement. There are two types of disability policies: short-term and long-term. Short-term disability is designed to cover a limited period, normally less than six months. Long-term disability policies have a maximum benefit period ranging from six months to the rest of your life. NC Conference clergy serving full-time have long-term disability benefits through the Comprehensive Protection Plan.
Long-Term Care Insurance – This type of insurance covers costs arising from specialized care, typically resulting from old age or disability. Long-term care whether it be in-home care, assisted living, adult daycare, hospice care, or an Alzheimer’s facility, can be costly. Recipients may not be sick in the traditional sense, but may be old and frail or they may be disabled from illness or accident. They may be unable to perform basic living activities on their own such as getting in and out of a bed or chair, dressing, bathing, eating, toileting, and walking.