Insurance is an important 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 essential 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 Insuranceis 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. However, it may be a good idea for adults who work in hazardous environments or who want extra protection in case of injury or illness. Home Insurance is not required by law like car insurance is but it is wise to purchase a policy if you own a home.
Home insurance covers damage caused to your property from fires, tornados and other disasters but does not cover damage caused by floods or earthquakes - separate insurance is available for these issues. If you financed your home, your lender will normally require coverage to protect their interests in your property. 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 and other disasters. It also includes liability coverage that protects your assets and those of your family from lawsuits brought against you - however all policies have limits of liability.
Life Insuranceis essential if someone depends on you financially.
Households would face financial difficulties within six months if the main wage earner died according to LIMRA research firm - life insurance is a way to replace your income if you die unexpectedly. Term life insurance allows you to set rates for a certain period of time such as 10-30 years with level premiums during this time - once the term ends it can usually be renewed annually at a higher cost. Permanent life insurance provides lifetime coverage with a cash value component - if the cash value increases you can access the money by applying for a loan. It is wise to purchase all or most of these five necessary types of insurance mentioned above - however it's important to think carefully before buying any additional coverage as paying too much money for insurance could significantly restrict your budget and therefore your quality of life.