Just in case.
That expression is the basis for the whole insurance industry. While for many the thought of spending real money on hypothetical situations seems pointless, when disaster strikes, those who planned for them seem like the smartest people in the room.
However, not all types of insurance are created equal. There are literally hundreds of different policies to choose from, leaving many confused about which are essential and which are on the optional pile.
Not to worry, as we have put together a list of the most important types of insurance that everybody should have.
Health Insurance
Learning of the eye-watering costs of visiting the doctor is enough for anyone to realize that health insurance is essential.
Unfortunately, we all at some point will need to receive unexpected medical treatment, so it is good financial sense to prepare for this inevitable future expense. Many people are covered by their employers, yet if you are self and especially unemployed, the additional cost of health insurance will pay off in the long run.
When taking out health insurance you want to be conscious of the coverage (especially if you already have any preexisting conditions) as well as any premiums.
But regardless of what you can afford, having health insurance is certainly a case of it being better to have something than nothing at all.
Car Insurance
So essential that it is illegal to drive without some form of it, car insurance is another among the different types of insurance that is a must for those who own a vehicle.
Most states require coverage for liability as a minimum. However, given the possibilities of what could happen to you and your car its important to be clear on what you are covered for.
Whereas liability coverage covers you if you are at fault, if you are the victim and the insurance of the other person doesn’t cover your expenses or your car is stolen or broken into, you may regret not having more extensive cover.
Life Insurance
Where all other types of insurance rely on the fact that there is a high probability of something happening, unfortunately, life insurance is the only type based on a guarantee. At some point, we all will die, yet only an estimated 54% of Americans have life insurance. This means that many families will be plunged into insecurity when the worst happens.
If you decide to take out life insurance, you will need to decide which of the main types of insurance is best for you. Two of the most common are term, which is for a determined period or whole, which is for an indefinite period.
Homeowners and Rental Insurance
In a world where the average phone is worth a few hundred dollars, most of us have more things of high value than we realize. For homeowners, your property is top of that list, so protect your investment at all costs.
Good cover will include everything to liability cover, your belongings, and anything that damages or jeopardizes the structure of your building.
However renters beware, most landlords’ insurance will only cover the building and not your personal property. Affordable renters insurance gives peace of mind should anything happen.
For more information on this as well as all the best insurance plans get in contact with State Farm agent Tate Teveldal.
Remain Informed About Different Types of Insurance
Being clear about which types of insurance are essential will help you to protect what matters most. We hope our review has shone some light on what you need to know about the insurance industry.
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