There are these people who’ve survived almost all their life without insurance until a tragedy hit and they were doomed.
There’s no denying that the costs can be overwhelming, especially when you have several types of insurance. They can be a kind of financial burden, especially if you haven’t gotten the chance to use any of them.
But think of the time when life uncertainties catch up with you and you have no one to run to but your insurance company. An accident, sudden illness, business loses, fire, etc. can turn your life upside down. Well, you don’t have to be asking whether you need to take a policy or not but rather what kind of insurance do I need?
So, what type of insurance do you need and how will the specific type help you in time of need? Let’s find out everything in this article.
1. Health Insurance
According to CNBC reports, two-thirds of the people who file for bankruptcies cite medical expenses as the main contributor to their financial burden. A single medical emergency can expose you and your family to unforeseen expenses that leave you bankrupt.
But that’s not going to happen if you have health insurance covering your back. This is a contract between the policyholder and the health insurer that mandates the insurer to pay all or part of medical costs. Health insurance covers everything from medications, routine checkups, surgeries, emergencies, etc.
While health insurance is a necessity for every family, very few people can afford to pay for it. But there are alternative ways to reduce the costs such as getting the insurance through your employer or enter group coverage with some associations or organizations. Children are usually covered under their parents’ plans.
2. Life Insurance
Everyone is going to die sooner or later, and most of these deaths leave the family members with huge financial burdens. Burial costs and mortuary fees can weigh even a wealthy family down. However, this doesn’t have to be a problem if you have life insurance coverage.
Life insurance doesn’t only cover funeral expenses but can also come through for mortgage and other types of debts left behind by the deceased. You don’t have to leave your family with debts or poverty over lost income if you were the breadwinner.
However, you must keep in mind that life insurance comes with an expiry period which you must consider. Your beneficiaries might not receive any income in case you die after the expiry of the coverage. You must also reveal lifestyle choices such as smoking because lying about it can result in your beneficiaries being denied the claim.
Well, if you have enough cash to cater for your funeral expenses and take care of your loved ones in your absence, then there’s no need for life insurance. But you should consider that the younger you are, the cheaper the life insurance costs so there is nothing that should prevent you from taking one.
3. Auto Insurance
According to the Centers for Disease Control and Prevention (CDC) data, auto accidents are the main cause of death among Americans aged five to 24 years. Over 2.7 million passengers and drivers suffered injuries in 2018 alone with economic costs for injuries and deaths from auto accidents amounting to $242 billion.
Imagine driving around any roads without insurance coverage. If you get into an accident, you’ll either suffer injuries with no money to pay the hospital bills, or spend so much from your pocket to compensate the person injured in the accident.
Driving without auto insurance should not even be something you think about because it’s illegal. Auto insurance not only protects you from accidents but also theft and vandalism of your vehicle.
Auto insurance covers all the expenses from an accident or litigation that might arise from the accident. Auto insurance also covers the vehicle against vandalism, theft, and natural disasters, depending on the type you take. The individual circumstances determine the amount you’ll receive.
Auto insurance types include collision, comprehensive, personal injury, and liability. Depending on the insurance type, you can be liable for some discounts that may reduce your monthly bills. Of course, you don’t need to take this type of insurance if you don’t have a car.
4. Homeowners and Renters Types of Insurance
If you’re a homeowner or have some rental houses, you need to have an insurance cover for them. These types of insurance cover the house against damage and theft. It also covers damage to visitors’ property and costs if someone is injured on the premises.
Homeowners insurance covers everything within the premises, including the roof, walls, the foundation, and personal property inside the building. If you need to cover natural disasters such as flooding earthquakes, etc. you will need to add additional cover.
Renters insurance takes care of damage and theft on personal items of the people living in the apartment. It also caters for liability costs in case someone gets injured inside the apartment. However, this insurance doesn’t cover pests and natural disaster damages.
So, do I need insurance for my home? This is a question that many homeowners ask. The answer to this is yes if you value the items you have in your property.
5. Long Term Disability Insurance
Almost everyone thinks they don’t need this kind of insurance. After all, they’re not going to be disabled in future. However, the Social Security Administration shows that four workers in the workforce will be disabled or unable to carry out their work before they attain the retirement age.
Whether you’ll stop working for days, weeks, or months, you need to prepare in advance. If this is because of an injury or illness, your hospitalization may get covered with your health insurance. But you still need something to cover your daily expenses at the time when you’ll not be getting any salary.
You need either short term or long term disability insurance for that.
Some employers may offer long time coverage. If you feel like you deserve to be insured for disability, consider hiring a social security disability lawyer to help you out. You can also think about getting affordable disability insurance for yourself.
6. Identity Theft Protection
Identity theft is a serious offence punishable by law. Despite the strict laws regarding it, identity theft can still happen to an individual or a business. Even when you’re very careful with your personal information, identity theft, fraud, and other cybercrimes can still get to you.
If you’re running a small business, be prepared to deal with hackers and fraudsters all the time. But this can cost your business millions and several years to clear your name.
Therefore, identity theft protection is a necessary insurance cover that will give you peace of mind in case of such occurrences. The insurance should include cover for the losses as well as restoration services to restore the business to its normal state.
7. Umbrella Insurance Policy
If you already have an insurance cover for your property but still feel like that’s not enough, you need an extra layer of protection. That’s what umbrella policy does. It adds extra insurance that exceeds the one you already have for your car or home.
Sometimes the damages on your property can exceed the amount your insurance is willing to pay. You don’t have to get back into your pocket for the extra cash if you have umbrella insurance with you. This kind of insurance cover is most important for those with a high net worth.
8. Pet Insurance
If you’re a pet owner, then you don’t need someone to tell you that you need to insure your pets just like you do for the entire family. Your pets can also get injured or suffer serious illnesses that will take a lot of money to treat. You’re not going to abandon them when this happens.
When such emergencies happen, you’ll not need to part ways with a lump sum because the insurance will take care of the costs. You can also have a wellness plan that will take care of routine checkups and visits to the vet.
9. Travel Insurance
Planning to jet out of your country? Emergencies can happen, forcing you to cut short your trip. This can be inconveniencing, especially if you don’t have the money to cater for the unforeseen expenses.
These types of insurance have your back for trip cancellations, accidents, medical expenses, and lost valuables. If you travel often, you definitely need travel insurance.
Hurry! Get Your Property and Yourself Insured
Insurance is a life necessity that you should not avoid completely. Having different types of insurance covers for you, your property, and your family gives you peace of mind. You know that life uncertainties come without knocking and you need to be prepared.
Find out the type of insurance you need and work on getting a reliable agent to work with. You should also consider expert advice, such as having an attorney on your side to help you out when things get tough during the claim process.
Remember to come back to our site for expert advice on finding a perfect insurance agency to work with. We also have a host of educational information regarding life in general.