Starting a Family? Here’s Where to Put a Portion of Your Income

Cutout of family covered by insuranceStarting a family is one thing. Managing the financial state of your family is another. You put a good chunk of your money into basic needs, mortgage, and credit card payment. But, it is also vital that an amount of your income goes to insurance. Take out an insurance policy to secure your family’s future.

Life Insurance

If you support someone financially (a spouse, children, parents, siblings), apply for life insurance. It guarantees the financial security of your loved ones in the event of a sudden loss. Upon the loss of a loved one, a family will have to deal with the tragedy and the financial requirements. Life insurance helps them with the monetary aspects.

Some life insurance providers also cover hospice care. If you fall terminally ill, you will need the support of your family and professionals. Hospice care delivers everything you may need, says Center for Hospice Care. Hospice care can be given in centers in states like Indiana, or at home.

Disability Insurance

One of your assets is your ability to earn money. If you work in a physically demanding environment, apply for disability insurance. If you get injured and are unable to work for months or for good, disability insurance gives you a portion of your paycheck.

You can choose from short-term or long-term disability insurance packages. Short-term insurance covers six months, while the long-term policy covers the insured until 65 years old. The cost of disability insurance ranges from one to three percent of your annual gross income.

Health Insurance

Under the Affordable Care Act, US citizens are required to apply for health insurance. But, because not everyone can afford it, the government’s Medicaid program covers low-income families. A health insurance coverage includes medical emergencies, surgery, maternity and newborn care, prescription drugs, and psychotherapy.

When applying for insurance, sit down with an agent. You still need money for other expenses, so it is unwise to spend all your income on insurance. Choose only what is suitable for your family’s lifestyle. Make sure your family is financially covered today and in the future.