The Types of Insurance You Need
After having a home broken into, family members pass away, and having been hit by an uninsured motorist, I decided that it’s a good idea for you to know about different types of insurance, and which will be most useful for your life today.
Aside from the fact that auto insurance can be a lifesaver when it comes to your pocketbook, almost every state requires that you have it.
If you have an older car, it’s likely you won’t need to pay a lot for coverage. However, if you have a new car, your coverage will be more as your car is likely of higher value than an old car.
Types of auto insurance summed up:
Liability coverage comes in two forms: bodily injury and property damage liability. These cover damage to others and their property. This coverage does not cover the driver or passengers.
Personal Injury Protection covers medical expenses related to driver and passenger injuries.
Collision insurance only covers the damage done in a car accident.
Comprehensive plans will cover damage done to your car whether or not you are at fault.
Uninsured or Underinsured Motorist plans cover you in the event that the person who hits your car doesn’t have enough insurance to cover the damage to your car.
Healthcare costs are high, extremely high and not being covered can destroy your life and financial future.
Keeping a few things in mind when choosing healthcare can be helpful:
- Young, healthy single people require less coverage than families, elderly individuals or people with chronic conditions. Will you use your insurance often? If so, you will want to choose a plan with a low deductible and copays.
- Do you want to stay with your current physician? If so, you need to find out which plan options your physician accepts.
- Understand what you can afford when you begin and shop for plans that are affordable for you. Plans with higher copays and deductibles can save you money on your premium but are best for healthy individuals.
Renter’s or Homeowner’s Insurance
Renter’s insurance covers you against damage or theft of personal items in an apartment. The low cost of renter’s insurance can be well worth the peace of mind that it provides if you rent your dwelling.
Homeowner’s insurance is absolutely essential. It protects your most valuable asset against damage and theft.
Make sure to ask your insurance agent if you need additional insurance against flooding, earthquakes, fires and other disasters that might not be covered under standard plans.
*Flood insurance is always a good addition, even if you don’t live near a body of water.
This is quite a bit like life insurance. It reimburses you for income lost during periods of time that you are not able to work. Disability insurance can cover permanent, temporary, partial and total disability.
One-third of all Americans are disabled at some point, having this insurance makes financial sense for the single and married as well as parents and non-parents.
You never know what will happen tomorrow. Disability insurance is fairly cheap and is worth the small payment to save you in the long run.
Life insurance is a necessary component of protecting your family in the event that you pass before your time.
There are a lot of costs associated with dying, such as cremation or burial and mortuary fees. If you are the primary breadwinner, life insurance will help your family offset the lost income.
These types of insurance are most important, in my opinion. Protect yourself, your loved ones and your property through an insurance company instead of risking losing everything.