It’s always best to expect and prepare for the unexpected. While you can’t prevent bad things from happening, you can have some protection. Insurance saves you financially when certain circumstances arise. There are many different insurance options available, so it can be difficult to determine which type is best for you. Check out these most important types of insurance you should hold.
1. Long-Term Disability Insurance
Thinking about becoming disabled can be a frightening thought many people choose to avoid. While you can hope nothing bad will happen to you, you shouldn’t rely on hope to protect you and your money. Instead, a disability insurance policy can provide coverage that allows you to enjoy your lifestyle and protect your assets if you can no longer work.
Long-term disability insurance offers a monetary benefit equal to a portion of your salary for covered disabilities. This type of insurance typically begins after short-term disability ends, and to receive benefits, the disability must have happened after the insurance kicks in and a predetermined waiting period.
2. Health Insurance
Medical care is expensive, which means you might need a little help paying for it. Even a check-up at your local doctor’s office can be expensive. Serious injuries and surgery are even more expensive, especially if they include a hospital stay. Unfortunately, the cost of health insurance is a monthly financial burden for most people.
Luckily, if your employer offers health insurance as part of its benefits package, you should take your boss up on their offer to ease some of your financial burdens. Not having health insurance to help you pay for life-threatening diseases, and different types of treatment can leave you in debt. Or if you need dietary help because of a specific illness, health insurance can cover a good chunk or all of the costs.
3. Life Insurance
Unlike health insurance, which protects you, life insurance protects those who are financially dependent on you. These individuals may include your:
You can purchase a life insurance policy based on how much you earn and the number of years you plan to be employed. The policy will replace that income for your family if you pass away.
4. Homeowners and Renters Insurance
Having the right homeowners insurance can make replacing your home less expensive. In case that there’s a flood, fire, or natural disaster, you’ll need to make the necessary repairs to ensure your house is functional and safe. When looking for a homeowners policy, look for one that will cover the replacement of your home’s structure and any contents inside you deem valuable. It should also cover the cost of living elsewhere while your home is being repaired.
Renters insurance is similar to homeowners insurance, but it’s designed for people who don’t own their homes. These policies give renters property insurance that provides coverage for personal belongings, liability and covers any losses.
There are different types of renters insurance policies out there, so make sure you choose one that will best fit your needs depending on where you live and what problems you might face down the line.
5. Auto Insurance
Auto insurance is required by most states. Even if, for some reason, it’s not required, you should still have an auto insurance policy to cover you in the event of an accident. Your car is one of the most expensive things you own, and auto repair doesn’t come cheap. Accidents can happen at any point when you’re behind the wheel and sometimes when you’re not. Having no insurance means you’ll end up paying the full cost of any repairs on your car.
6. Umbrella Policy
An umbrella policy adds more protection for yourself and your assets when you need coverage that homeowners or auto insurance can’t give you. For example, if you’re found to be at fault for a car accident, you could be liable for medical bills, property damages, and more that will quickly add up and become something your insurance won’t cover.
If you’re sued for the difference your auto insurance can’t cover, then your savings account, your home, your car, and more will be put on the chopping block. Luckily, an umbrella policy can help protect you from a circumstance like this.
7. Identity Theft Insurance
Identity thieves steal billions of dollars from consumers every year. Cybercrime and identity theft are real and increasing threats, even if you’re careful when sharing your personal information. Retail stores are perpetually under attack by these criminals who hack into payment systems, which leave millions of people vulnerable to identity theft.
With only a few important pieces of your information, hackers can ruin your finances by taking out loans in your name, filing false tax returns, and more.
Solving an identity theft crime can take years, and it’s very stressful. Identity theft insurance covers you in case this ever happens to you and ensures your assets are protected from cybercriminals.
8. Pet Insurance
Pet insurance may not seem like a necessity because it hasn’t been around as long as other types of insurance. However, pet insurance can save you thousands of dollars on vet visits and emergencies. Many people consider their pets like family, so when it comes to life-saving treatment, the only thing that stops them in their tracks is the cost of medication, tests, or surgery.
There are several pet insurance options available to help give you peace of mind when it comes to your pet. While emergencies aren’t an everyday occurrence, you’ll be happy you’re covered if you ever need to visit the emergency vet. Pet insurance could be the thing to save your furry friend when you need it the most.
Do Your Research
Before deciding on a policy, make sure you shop around. Many different insurance policies offer different benefits and features. You can also expect various prices. Make sure you read the fine print before signing a policy so you know exactly what to expect.
If you need help making the right decision based on your needs, you can work with an insurance broker who can search for policies across several insurance companies to find the best one for you.
About the Guest author:
Matt Casadona has a Bachelor of Science in Business Administration, with a concentration in Marketing and a minor in Psychology. Matt is passionate about marketing and business strategy and enjoys San Diego life, traveling, and music.