In the U.S. alone, there are over 6 million car accidents each year.
Accidents and unforeseen events can have a huge impact on your life, your family, and your finances.
For many, insurance can seem complicated and difficult to decipher. But if you have assets you need to protect and the loved ones you want to provide for, it’s something you should know about.
If you find yourself wondering about the types of insurance that you should have, read on. Our post explains the top five insurance types you need.
Property insurance covers items related to your home. In case of a natural disaster, such as hail damage, flood, or fire, home insurance can help you recover the costs to repair or rebuild.
You can also get insurance to cover your belongings inside your home. You should be sure to have an inventory, and even photos, somewhere safe just in case.
Homeowners’ insurance is required by law while you have a mortgage. Even after you’ve paid off your home loan, it’s still wise to have coverage as a precaution.
Renter’s insurance is also necessary and important, even if you don’t own your home.
Car, boat, RV, and motorcycle insurance are also required by law. The most basic coverage (and the cheapest) covers liability, but you can add collision and comprehensive coverage as well to give yourself more protection. These last two are likely required if you have a car loan.
Auto insurance will help you with repairs and replacement costs in case of an accident.
There are two basic types of life insurance: term and life. What you need, and how much, will depend on your age, health, and assets.
Life insurance is often overlooked but is vital to help cover funeral costs, pay off debts, or replace income in the event of your death. Get in touch with an independent insurance agency to discuss your specific needs.
One bad accident or serious illness, followed by a trip to the hospital, can end up costing big. Without insurance, you’re responsible for hospital bills. Since doctor’s bills aren’t cheap, they can get expensive fast.
When looking into your health insurance needs, consider what’s more important: low premiums and high deductibles, or high premiums with lower deductibles. Both have their pros and cons and will depend on your age and general health.
Add in vision and dental insurance to get the best coverage within your price range!
You can buy disability insurance in two ways: short-term or long-term. Your policy will cover you if you get sick or injured and can’t work. This type of coverage will often help you if you get a terminal illness or suffer from a chronic condition.
Oftentimes, it will help replace a part of your income, if not all.
What Types of Insurance Do You Really Need?
The types of insurance you’ll need will depend on you. Your belongings, investments, and family can be significantly affected in case of an accident or illness. Investigating your coverage options is vital so you be sure you’re protected without overpaying.
If these 5 types of insurance aren’t enough, you can also investigate pet insurance, commercial insurance, travel insurance, and even jewelry insurance!
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