5 Insurance Policies Everyone Should Have – InsuranceNewsNet

Accidents are happening. You never know what life will throw at you, and a single misfortune can be devastating.

That’s why you need insurance to be part of your financial planning – to protect your health, earning power and assets.

But there are so many types of insurance, how do you know which ones are worth it and which ones aren’t?

This article will help answer that question by looking at 5 types of insurance that everyone needs and why.

Let’s begin!

1. Health insurance

The first (and most common) type of insurance you need is health insurance. You never know when you’ll have a medical emergency, and they can get expensive quickly. In 2017, the average cost of an ER visit was $1,389. And many chronic conditions are much more than that!

Most people get health insurance through their employer, but if you’re self-employed or unemployed, you can also get it through the federal health care marketplace. healthcare.gov. Depending on how much money you earn, you may also qualify for a government-subsidized plan.

Otherwise, you can always get health insurance directly from the health insurance company. Consult a health insurance broker to find the best one for your situation.

There are many types of health insurance plans. For example, you can get a high-deductible plan linked to a Health Savings Account (HSA). It has many benefits.

For one, a high-deductible plan will lower your premiums (though it will also increase your deductible so you’ll pay more out of pocket for each doctor’s visit). But it also qualifies you for an HSA where you can set aside money for medical bills. The advantage of an HSA is that it’s highly tax efficient: you can deposit money into it tax-free (ie deduct it from your taxes), invest tax-free money in it, and withdraw the money tax-free. It’s a triple whammy!

2. Auto insurance

Every state requires some level of auto insurance to protect you, your vehicle, and others in the event of an accident.

Here are the different types of auto coverage you can get:

  • Liability coverage-This covers any harm or injury you cause to others. It is required in almost every state.
  • Uninsured/Uninsured Motorist (UM) Coverage-It pays for any medical expenses, lost wages, pain, or suffering you or your passengers suffer when you or your passengers are hit by an uninsured driver.
  • Personal Injury Protection (PIP)-It covers any injuries, lost wages, or restoration costs to you and your passengers regardless of who was at fault in the accident.
  • Medical Payment Coverage –It helps pay for any medical expenses (usually between $1,000 and $5,000) without error.
  • Collision coverage –It covers damage to your car, regardless of who is at fault.
  • Comprehensive coverage-It covers damage to your car or damage caused by collisions, including flood, hail, fire, vandalism, falling objects, and theft and damage caused by animals.
  • Learner Driver InsuranceThis is flexible coverage For those working to get their driver’s license.

You don’t need all types of auto coverage, but you do need to have liability coverage at a minimum, and preferably more. Talk to an auto insurance agent to determine what’s best for your situation.

3. Life insurance

Life insurance protects those who are financially dependent on you (such as your spouse and children) if you die. Since we will all die at some point, this is incredibly important. and yet, Only 54% of Americans Have a life insurance policy.

Life insurance can also help pay for your funeral and burial costs, which would otherwise place an unexpected financial burden on your family.

There are two types of life insurance: term life insurance and whole life insurance. Term insurance is for a fixed period of time (such as 10, 20, or 30 years) and is usually more affordable, while whole life insurance offers lifetime coverage and has a cash value component that you can withdraw as you retire.

Most experts recommend term life insurance for the average person, and the sooner you get it, the cheaper it will be because your risk of death is lower. So check out some life insurance policies today!

4. Long-term disability insurance

Just like you never know when you will die, you never know when you will have a serious accident that will even cripple you.

This is why you need long-term disability insurance. Most employers will cover 3 to 6 months of short-term disability. But beyond that, you need long-term disability insurance, which typically kicks in after your short-term coverage ends and replaces 40% to 70% of your income.

Moreover Social security, you have two main options for disability insurance: a group policy through your employer or an individual policy. Keep in mind that neither policy type limits coverage to on-the-job injuries (eg Worker’s compensation does). They also cover injuries that occur outside of work.

5. Homeowner’s or renter’s insurance

Finally, you’ll need homeowner’s or renter’s insurance. Homeowner’s insurance helps repair or replace your home if something happens to it, while renter’s insurance only covers your possessions inside your home (when you don’t own the property).

That said, you should look for a comprehensive homeowner’s insurance policy that covers damage, property loss, and the cost of temporarily living elsewhere while your home is rebuilt or repaired.

If you have financed your home (meaning you have a mortgage), your lender may require you to obtain homeowner’s insurance. And if you rent, your landlord may require you to get renters insurance as well.

A final thought

At the end of the day, the point of getting insurance is risk mitigation. You don’t want to put yourself in the unlikely position of receiving a bill you can’t pay or leaving loved ones in financial trouble.

So shop around for insurance policies in each of the five areas listed above. Compare prices, coverage, benefits, and online reviews across sites policygenius.com. It may take a long time to find the right policy, but it is well worth it. And you can always get an insurance broker to help you know and better inform your options

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