Three Types Of Insurance That Every Young Family Needs

Your family is just getting started. With the future, and all its possibilities stretching out before you, it can be easy to overlook something like insurance. Yet, it's a good idea to make sure you have the following types of coverage. They can give you peace of mind and help make sure your family is taken care of, no matter what the future may hold.

Life Insurance

Before buying life insurance, you need to think long and hard about how much coverage you need. Think about the goals you family has. Do you hope to have one parent stay home to care for the children, at least until they are school age? If so, then you need a policy large enough to cover the missing income. At the very least, your policy should be sufficient to cover funeral costs and to ensure that the quality of life of your family is not impacted.

Whole life insurance is the best option, since it also acts as an investment account that you can cash in at any point once it matures. Term life policies are only good for a set number of years. If you don't die in that time, you don't receive any benefits. Many young families opt for term because it is much more affordable, but whole life is the better deal if you can afford the higher payments.

Disability Insurance

Accidents and illness can lead to a permanent or short-term disability, which can severely impact your earning ability or your ability to care for you children. Disability insurance is a must to ensure your family is cared for when you are the primary earner.

This type of insurance provides you with a paycheck when you can't work. Some employers provide disability insurance, but read the fine print. It may only cover you if you have an accident while on the job. It's a good idea to also have a private policy, which will cover you regardless of where the accident occurs.

Home or Renter's Insurance

You need some form of insurance whether you rent or own. Homeowner's policies cover the home, its contents, and provide for emergency housing in the event something happens to your home. Renter's policies cover contents, and you can also add onto the policy to ensure there is emergency housing coverage. These policies give you peace of mind, and also can help protect your investment in dwelling, possessions, or both.