There are so many types of insurance being sold in the market today, especially in the US. While insurance is important, you need to get your priorities right in determining what types of insurance you really need in terms of relevance. Only the most relevant types of insurance coverage will safeguard you and your assets when unexpected situations and financial disasters decide to pay you an unfortunate visit.
These types of coverage will go a long way in offering some of the peace of mind you need to effectively cope with the surprises life throws at you along the way. Here are some of the most important types of insurance:
1Health Insurance
A good health insurance is most desirable for each of us. Getting this insurance can be quite expensive, more so for people who can’t get group coverage from their employers. None of us knows what the future holds – it is certainly worth spending money to acquire health insurance instead of ignoring the issue and being faced with huge bills for sudden medical complications that didn’t feature in any of your plans. Even if your family is healthy you should make an effort of saving some money in a Health Savings Account.
2Homeowners/Renters Insurance
This is another type of insurance that is absolutely necessary for obvious reasons. Your home is where most of your possessions are and more importantly the place where you and your family live. In the unfortunate event of a natural or man-made disaster, e.g., earthquakes, floods and/or a fire, you may lose all your possessions and the house may be completely destroyed. Starting over again will be a really difficult proposition, especially if you don’t have the monies to do so. However, if you have homeowners or renters insurance, you will at least be guaranteed that your house and possessions will be paid for.
3Life Insurance
This type of insurance is very important, especially for working persons who have families and other people who are dependent on the income they earn. This is really a backup plan for these dependents in case an unfortunate event happens such that the income-earner can no longer earn money. In such a case, these persons will be sustained by the life insurance money.
In selecting life insurance it is best to take out a 20-30 year term insurance that is worth 8-10 times your income. Whole-life insurance is not a feasible option to consider.
4Automobile Insurance
In most states of the US, the fact that you own a car means you have some form of insurance for it, the least of which is liability insurance. Liability insurance is recommended for ‘garage sale’ types of cars that typically cost no more than $4,000. Cars that are worth more than $5,000 ought to have collision and comprehensive insurance because such are certainly worth fixing should they be damaged in the event of an accident or other unfortunate event.
5Long-Term Disability Insurance
Long-term disability insurance is absolutely necessary for everyone who earns an income. It will cover your day-to-day expenses should you become permanently disabled. When looking for this type of insurance, choose the ‘own occupation’ option so as to get paid when you can no longer do your normal job. It is quite affordable and certainly one of those insurance types you really need.
6Liability Insurance
This type of insurance is mandatory for some professions including lawyers and doctors. It is not necessary to get it if your job description doesn’t require you to.
7Other Types of Insurance to Consider
Depending on your individual situation you might find it necessary to have travelers insurance, dental insurance or even pet insurance. These, however, are not a necessity for the majority of people.
8Determining Whether or Not to get Insurance
In choosing the types of insurance you really need, you ought to weigh the possible consequences of taking out that specific coverage against the consequences of not doing so when the unfortunate strikes. There are definitely some situations where the benefits of getting insured far outweigh those of being uninsured. Even for these situations, you should take your time when shopping around for a solution – consider the price and the benefits you will accrue from each option you consider – and don’t be rushed into making a decision. It is best to get insurance from an independent agent as opposed to a captive agent. The latter are restricted to the proprietary policies and products their companies offer.
