Types of Insurance Policies That Are Essential for Employees

Life Insurance PoliciesInsurance policies have become an essential for most people in the past few years with most employers providing basic plans for their employees. There are a wide variety of insurance plans available and this article aims to provide a quick insight on what insurance policies you should likely get.

#1: Life Insurance.

There are a wide variety of options when it comes to life insurance policies including Whole Life plans, Variable Life, and Term Life insurance among many others.

  • Whole life plans is a type of permanent insurance which remains in effect for the insured’s entire lifetime as long as the required premium is paid (usually monthly).
  • Variable life plans are also permanent policies but have an investment component tied to it. The plan has a cash value invested in multiple accounts which function very much like mutual funds.
  • Term life insurance in contrast to the two before is a temporary life insurance in which the insured pays a fixed rate monthly and is insured for a set number of years depending on the plan itself. This type of insurance is the least expensive and one of the most popular types of insurance policies.
#2: Medical Insurance.

The cost of healthcare has been increasing at an exponential rate in the past few years and thus, insurance policies that cater to medical coverage have become an essential. The types of medical procedures covered depend on what type of plan you acquire. Most employers also provide a basic medical plan for their employees.

#3: Worker’s Compensation Insurance.

Florida-based graceybacker.com shares that worker’s compensation insurance is a type of insurance plan covering wage replacement and medical benefits for employees incurring an injury during the course of employment in exchange for the employee relinquishing the right to sue their employer for negligence.

While there are many more types of insurance than those listed above, having at least one of the three mentioned above will make sure that we can sleep a little bit more peaceful at night knowing that we are prepared for any unforeseen circumstances.