Insurance is an essential part of life, and there are five types that everyone should have. Home or property insurance, life insurance, disability insurance, health insurance, and car insurance are all necessary for protecting yourself and your family. Health insurance is arguably the most important type of insurance. It covers necessary medical expenses, from doctor appointments to surgeries, as well as preventive care such as monthly checkups and tests.
All adults should have health insurance, and children are often covered by one of their parents' plans. When looking for a car insurance plan, always keep an eye out for discounts. There are many discounts you can choose to lower your monthly bill, including discounts for safe drivers, married drivers and multiple vehicles. If you don't have a vehicle or don't have a driver's license, you won't need car insurance.
Life Insurance is the type of insurance that most people want to avoid thinking about. It covers costs associated with death, such as burial and morgue costs, as well as any debts you may have such as mortgages and loans or everyday expenses. If you are the primary breadwinner in the family, life insurance will also help your family compensate for lost income. It's important to note that life insurance expires, so if you die after the expiration date of your coverage your beneficiaries will not receive your death benefit.
Additionally, if you file a false claim with your insurer and it finds out, it may deny your beneficiary's claims.
Disability Insurance
is similar to life insurance because it provides financial coverage in case something happens to you. If you are injured and unable to work, disability insurance will reimburse you for lost income. It can cover permanent, temporary, partial or total disability but does not cover medical care or long-term care services.Disability insurance is relatively affordable but could provide enormous financial help if you become disabled for an extended period of time. Children don't need disability insurance because they have no income, but adults should consider it especially if they work in a particularly hazardous work environment. You can learn more at SSA.gov. Aside from the five main types of insurance mentioned above, you should think carefully before buying any additional coverage.
If you pay too much money for insurance it could significantly restrict your budget and therefore your quality of life. Unlike car insurance, no state law stipulates that you must have homeowners coverage. However, if you financed your home your lender will normally require coverage to protect their interests in your property. This way if your home is damaged or destroyed you have the funds to rebuild it and won't abandon your mortgage.
Even if you don't have a mortgage and have paid for your home directly, you are responsible for repair or replacement costs if something damages or destroys your home and you don't have home insurance. Renters insurance helps replace belongings such as electronics, furniture and clothing if they are stolen or damaged due to fires, tornados, explosions and more. Auto, home and renters insurance include liability coverage that protects your assets and those of your family from lawsuits brought against you but all policies have limits of liability. If someone depends on you financially it's essential to find the best life insurance for your situation.
Households would face financial difficulties within six months if the main wage earner died according to LIMRA an industry-funded research firm. Term life insurance allows you to set rates for a certain period of time such as 10 15 20 or 30 years during which time your premiums are level. Once the tier's term ends you can usually renew your policy annually but each time at a higher cost. Permanent life insurance can provide lifetime coverage in addition to the death benefit it includes a cash value component which can be accessed by applying for a loan.
