There is no denying the fact that everyone needs some form of an insurance plan. Whether they decide they need health insurance or life insurance, they make sure to make their investment as early as possible to allow their cash time to grow.
According to Rizwan Ahmed CPA, this practice is especially common in the United States of America, where the costs of living and housing are significantly higher than in most other countries of the world. Hence, American citizens usually cannot afford the high expenses if they do not invest in different insurance plans.
Continue reading to learn about the three different types of insurance everybody living in the USA needs.
What Are the Three Different Types of Insurances Everybody Needs According to Rizwan Ahmed CPA?
In a country like the USA, where the average costs of living are higher than in most places, people depend on different types of insurance to cater to their everyday expenses.
According to Rizwan Ahmed CPA, the three different types of insurance that every American essentially needs to invest in are as follows:
1. A Suitable Life Insurance Plan
According to Rizwan Ahmed CPA, a life insurance plan is one of the most important investments a person can make. People as young as 18 are encouraged to invest in life insurance as it allows them a chance to grow their wealth and protect it from the economic instability of the external market environment.
In order to cater to the different kinds of consumer preferences, financial experts have designed two main kinds of insurance plans; term life insurance and whole life insurance. If a person has to pay off debts and needs constant access to the cash benefits made from their insurance investment, then a term life insurance plan is ideal for them.
However, if a person is comfortable with locking away their investment for ten years and wishes to benefit from higher investment returns in the future, the whole life insurance plan is ideal for them.
2. Health Insurance
Almost every American who is making a stable income has health insurance. This insurance allows the person a chance to cater to their and their family’s medical needs if anything was to happen. However, the process of receiving health insurance is not that easy.
When a person is ill or has an injury, their health report has to be reviewed by Medicare. If the health condition meets all the set requirements by Medicare, only then will the person receive the health insurance benefits.
3. Insurance Coverage for Long-term Disability
According to reports, insurance coverage for long-term disability is often ignored by most American citizens. However, Rizwan Ahmed CPA says that this insurance is incredibly important for every person, regardless of their age of physical health.
Suppose a person breaks their leg and is no longer able to go to their job or earn a living. In such a situation, if they do not have proper insurance coverage for long-term disability, then they along with their family will suffer from financial instability due to lack of income.
However, investing in this insurance can prevent such a situation from happening, as it will create a stream of income for the injured individual and their family.
Final Thoughts by Rizwan Ahmed CPA
According to Rizwan Ahmed CPA, if a person either invests in life insurance, health insucken, or long-term disability coverage insurance, their lives will be more financially stable and comfortable.