Think about your assets, your health, and your family. If something bad were to happen, are all these things protected?
Without the right kinds of insurance, they’re not.
It can feel overwhelming to think about everything you need coverage for. Unfortunately, since you can’t predict accidents, insurance is your protection. It’s critical you understand and get the types applicable to you.
Choosing which insurance type you need doesn’t have to be stressful. Keep reading to find out eight different types of insurance most people need.
1. Auto Insurance
Car insurance is the first type of insurance most of us learn about.
As a teenager, we learn how to drive and get listed on our parent’s car insurance. Then, when we can afford our own car, we learn about the importance of getting insured for the road.
No one plans on getting in a car accident; it just happens. In that situation, you will be thankful you have auto insurance.
Depending on the circumstances of the accident, insurance can save you a lot of money. It can protect you if the other driver creates a lawsuit against you. Or, if your car gets damaged through no fault of your own.
The cost of car insurance varies. Generally, if you’re a higher risk driver you will pay more. This includes younger people, owners of sports cars, and the city you live in.
2. Health Insurance
Many employers supply health insurance benefits to their employees. If you’re lucky enough to work somewhere like this, check your policy to see what’s covered.
Most health insurance plans cover some or all your prescription medication costs. They may also cover doctor’s visits, hospital costs, and even massage therapy.
If you don’t have health coverage through your job, you should consider getting it on your own. It could be extra beneficial if you have a condition that sends you to the doctor often. Always read the fine print of your policy; some plans don’t cover preexisting conditions, some do.
3. Dental Insurance
Americans don’t see their dentists as much as they should. But, 42 percent want to make their dental health a priority. Dental insurance can make that happen.
Regular cleanings, cavity treatment, and early diagnosis can all prevent pain and medical costs in the future. You may think you’re saving money by not going now, but you could end up paying more later.
Dental insurance is sometimes covered by employers. If not, there are individual plans that will cover partial and full costs of going to the dentist.
Since you need to see the dentist for your whole life, dental insurance is well worth it.
4. Life Insurance
This type of insurance is important if you have children or other dependents. If something were to happen to you, your dependents would receive compensation.
Monetary compensation can help them cover your funeral costs. And, it replaces your income so that your dependents keep receiving financial support.
There are many different types of life insurance that vary in monetary amounts. Ideally, you want a policy that matches your annual income. This allows your dependents to continue living the quality of life they’re used to.
But, if you don’t have dependents it isn’t necessary. Check out https://topquotelifeinsurance.com/ to see if you’re eligible for life insurance.
5. Disability Insurance
No one anticipates being unable to work due to injury or illness. It’s not something we want to prepare for even though we should. In fact, 48 percent of Americans aren’t prepared to cover three months of income if they were to become disabled.
When an accident occurs and leaves you unable to work, you need a backup plan. How are you going to pay your bills during that time? Will you be able to continue living in your home?
Disability insurance is your saving grace in that situation.
There are short-term and long-term plans that cover you for varying number of months. Some plans are specific in the type of disability incurred. Always read the details of a policy before signing up.
6. Homeowner’s Insurance
If you’ve ever purchased a house, homeowner’s insurance was mandatory to buy at the same time. This important insurance covers your home in the case of vandalism or theft.
You should shop around when choosing homeowner’s insurance.
The cost will vary depending on the city you live in and the size of your house. Plus, the value of your items inside could affect the cost. If you have a covered garage or house extension it could also increase.
7. Liability Insurance
Liability insurance is crucial to businesses and many homeowners. This type of insurance protects you if someone slips on your sidewalk or driveway. Or, if you were to damage someone else’s property.
It can also add coverage in the case of a car accident at your fault. If the accident caused bodily harm to the others, liability insurance protects you.
Businesses almost always have liability insurance. It protects them in the case of an accident on their property. Individuals also need it for their properties and potential accidents.
8. Renter’s Insurance
Most people rent a home for a certain amount of time before becoming a homeowner. Unfortunately, not all of them buy renter’s insurance.
This coverage protects your valuables in the case of theft or vandalism. It also adds coverage in the case of a natural disaster. Usually, the landlord’s homeowner’s insurance covers some of these situations.
But, not all. Some landlords ask their tenants to have renter’s insurance before they move in. It further protects the landlord’s property as well as your belongings.
Want More Different Types of Insurance?
In the event of an accident, theft, death, or disaster, you need coverage. Everyone’s specific insurance needs are different, but most need one or more of the eight listed above.
There are different types of insurance that cover more unique situations. Always do your research when choosing a policy and read the fine print. Don’t hesitate to shop around for different prices.
For more information on insurance, being a homeowner, and living your best life, check out our blog.