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Jun 23

Types of Insurance You Shouldn’t be Without

Reading Time: 3 mins

If you’re grown, one of the necessary financial protections you’ll need is insurance. This is something that protects you, those close to you, and your investments. There are quite a few diverse types of insurance, but you likely won’t need each one. Here are some of the most common to look into.

Life Insurance

There are quite a few benefits when it comes to life insurance. First of all, it can cover the expense of your funeral when you die, and this can be a massive help to your family if you happen to be the one who is the primary earner. Generally, life insurance is purchased by parents in the event they die so that their kids will have the financial support if needed. Now, you can even get instant life insurance quotes on the internet. 

Auto Insurance

If you own a vehicle, car insurance is an absolute necessity. Nearly all 50 states require you to at least have liability, which means that if you’re in an accident and it’s your fault, the insurance will pay for any injuries or damages you’ve caused. There are always additional coverage options, such as comprehensive and collision, and these are available to you for an additional cost. 

Health Insurance

This type of insurance will cover part or all of the medical bills that you might incur when you get sick. Out of all of the different types of insurance, health insurance is quite important for you to have. A lot of people get health insurance through their employers, but there’s also an individual market where you can purchase a plan. As with any other type of insurance, there are various levels that you can buy. The more extensive the coverage, the more expensive it is. 

Long-Term Disability

The need for this type of insurance might rarely be at the forefront of your mind, especially if you’re in relatively good health. That said, according to the Social Security Administration, about a quarter of US workers will eventually become disabled in one capacity or another before reaching retirement age. Even if it isn’t forever, there may be a time when you aren’t able to work for a few months or even a few years. In situations such as these, you won’t be able to rely on your health insurance because it only covers medical expenses – not lost wages. Long-term disability will give you at least some of the cash you need to pay your bills. 

Home Insurance

When it comes to this type of insurance, it’s generally required by mortgage lenders, so if you don’t happen to have a mortgage, legally, you aren’t required to have it. That said, it’s highly recommended, because most of the time, a home is a person’s most valuable investment. 

Home insurance protects your belongings and your residence in the event of a damaging loss. As an example, if a storm with fierce winds comes along and knocks a tree down onto your roof, your insurance will cover the cost of fixing it. Just as it is with car insurance, the most basic plan will give you only liability coverage, which would cover the cost of someone being injured on your property, but again, there are multiple levels of coverage to choose from.

With any type of insurance, what you can afford will determine what you purchase. When looking at the importance of each type of insurance, speak with a licensed insurance agent to gain a better insight into what your needs are. This type of research is critical when it comes to knowing what the best solution is for your situation.

Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.

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