Life is full of unexpected surprises, and it’s important that we take steps to secure our future against whatever life may throw our way. One way to do this is by applying insurance techniques.

By mitigating risk, we can ensure that we’re able to handle whatever circumstances may come our way. Here are three key insurance techniques that will help you secure your future.

1. Health Insurance

Healthcare costs have skyrocketed in recent years, and it’s becoming increasingly important to have some form of health insurance in place.

With the right coverage, you’ll be able to access care when you need it most, without having to worry about those steep medical bills. There are a few different types of health insurance, including:.

Traditional Health Insurance

Traditional health insurance policies are common, and usually offered through an employer or a private insurer.

With traditional health insurance, you’ll typically have to pay a monthly premium, as well as a deductible and out-of-pocket expenses when receiving care. This is a good option if you’re looking for comprehensive coverage.

High-Deductible Health Insurance

High-deductible health insurance (HDHP) plans offer lower monthly premiums, but require you to pay a higher deductible before your insurance coverage kicks in.

This type of insurance is a good choice if you’re young and healthy, and don’t anticipate needing to use your insurance frequently. HDHP plans are often paired with a Health Savings Account (HSA), which allows you to save pre-tax dollars specifically for healthcare costs.

2. Disability Insurance

Disability insurance is another key insurance technique that can help secure your future, especially if you depend on your income to make ends meet.

Disability insurance provides financial protection if you become unable to work due to an illness or injury. There are two main types of disability insurance to consider: short-term and long-term.

Short-Term Disability Insurance

Short-term disability insurance provides coverage for a limited period of time, typically up to six months. This type of insurance is a good option if you’re looking for temporary protection against loss of income.

With short-term disability insurance, you’ll typically receive between 60% and 80% of your pre-tax income during the period you’re unable to work.

Long-Term Disability Insurance

Long-term disability insurance provides coverage for a longer period of time, typically up to age 65. This type of insurance is a good option if you’re looking for more comprehensive protection against loss of income.

With long-term disability insurance, you’ll typically receive between 40% and 70% of your pre-tax income if you become unable to work for an extended period of time.

3. Life Insurance

Finally, life insurance is an important insurance technique to consider. Life insurance provides financial protection to your loved ones in the event of your death.

There are two main types of life insurance to consider: term life insurance and permanent life insurance.

Term Life Insurance

Term life insurance provides coverage for a set period of time, typically between 10 and 30 years. This type of insurance is a good option if you’re looking for affordable coverage that will protect your family during your working years.

With term life insurance, your monthly premium will stay the same throughout the term, making it easy to budget for.

Permanent Life Insurance

Permanent life insurance provides coverage for your entire life. This type of insurance is a good option if you’re looking for lifelong protection for your family.

With permanent life insurance, your monthly premium will be higher than with term life insurance, but you’ll be guaranteed coverage for life, as long as you continue paying your premiums.

Conclusion

There are many different types of insurance to consider when securing your future.

Health insurance, disability insurance, and life insurance are three key techniques that can help ensure you and your loved ones are prepared for whatever life may throw your way. By mitigating risk through insurance, you can live your life with greater peace of mind.