We are going to talk about five types of insurance policies that everyone should have, and why. Read on to expand your insurance knowledge horizon:
#1 – Life Insurance: As much as life has changed in recent decades, there are still some constants worth holding onto. One of these is the importance of life insurance in the face of death, disability or severe illness that could severely affect your ability to work or maintain your lifestyle due to drastic changes in income levels. Life insurance can be used for a variety of different purposes, such as covering lost income, helping your family financially survive if you are unable to earn a living, providing for your children after you are gone and even funding your funeral.
#2 – Disability Insurance: A disability insurance policy is different from a life insurance policy in that it is not about protecting yourself financially or caring for your family. It’s about keeping your income up and working until you’re no longer able to do so.
Disability covers are not paid to you, but rather the person or company who owns the policy pays money to you if you become unable to work due to an impairment. Disability insurance can be used for covering lost income, covering outstanding medical bills, helping with your funeral expenses and even covering unpaid short-term disability insurance payments from previous employers.
#3 – Homeowners Insurance: There is a risk involved with owning a home, but that risk can be mitigated with homeowners insurance. If your home is ever on fire, burgled or damaged in some other way it would cover the cost of repairs and replace your belongings. If you’re renting, it’s also important to make sure you have renters insurance as this covers you in the event of property damage or loss due to theft.
#4 – Car Insurance: No matter what kind of car you drive, and no matter how old you are, it’s important to make sure you have enough liability coverage in case someone hits your car. It is also important to purchase collision insurance at the same time so you know that if there is a collision with another car or large object that damage has been paid for. Crossing the street can be safer when you have car insurance so if something were to happen and your vehicle were damaged, you could still get it repaired or replaced.
#5 – Health Insurance: Everyone should have insurance for health. Depending on your age, health and lifestyle it is probably a good idea to buy a major medical policy at least two or three years prior to retirement when you are in good health. For example, if you’re healthy but plan on buying the coverage when you’re 30 years old, have the maximum coverage option. If you’re in poor health and currently have homeowner’s or renters insurance to cover any damage then don’t worry about extras such as major medical protection because these policies are designed for people with certain types of illnesses or pre-existing conditions and may not be suitable for your situation.
We hope that you’ve found this information useful. If you have any questions, please feel free to ask in the comments section below!