Insurance is a must when it comes to protecting your investments, as well as saving yourself money and frustration in the event of an accident, natural disaster or lawsuit. However, you may be unsure of how different kinds of insurance work and which kinds you may need. Here is a basic summery of the types of personal insurance everyone should have to ensure they are adequately protected.
It is illegal to drive without auto insurance in almost every state. You may only need to purchase a bare minimum policy, especially if you have an older car. However, you should check the requirements in your state and speak with a qualified insurance agent to determine what is necessary and most practical coverage in your particular situation, according to Duke’s Personal Finance page. The main types of car insurance are collision, comprehensive, liability, personal injury and uninsured/underinsured motorist.
Health insurance helps to pay for medical care. It can be useful in covering costs of doctor visits and prescription medicine. In the case of a hospitalization or catastrophic medical emergency, it could save you thousands of dollars. Policies come with various amounts of deductibles and co-pays. If you have options in your health coverage, consider your lifestyle when making your choice. Those who are single and in good health will need less coverage than people with a number of health problems, the elderly or families. In addition, insurance networks vary in terms of which physicians and facilities they work with. Find out if your preferred doctor is covered under your plan.
Life insurance is protection you need if you have a family who depends on your income. This kind of insurance can provide some income to your loved ones in the event of your death. It will also help to pay for burial costs. Life insurance is not as critical for those without dependents, but it is still money saving and practical to have.
Home Owner’s or Renter’s Insurance
Home owner’s insurance is a must for protecting you from damage, disaster or theft related to your residence. If you own your home, it will protect the cost of your primary investment. Renters should also consider purchasing renter’s insurance to help cover the cost of replacing possessions. Check with your insurance agent to determine the coverage types and amounts that are recommended based on your location, cost of your home and risk of facing disasters like flooding, fire or earthquake.
Disability insurance will provide you with income in the event that you are unable to work for an extended period of time. This type of policy could save you from homelessness or bankruptcy. It provides tremendous peace of mind, as you could face disability at any time. This kind of insurance is relatively inexpensive and covers permanent, temporary, total or partial disability.
These are the most important types of personal insurance to consider. However, depending on your situation, it may make sense to consider other kinds of coverage applicable to you. Being insured can protect you in the event of an emergency, injury or disaster and is well worth the cost.