There are some practical reasons insurance exists. As they serve to protect you and your family, you’ll have the utmost peace of mind in your lifetime.
Insurance is a contract between an individual or entity and the insurance carrier through a policy. As a policyholder, you’ll receive financial protection from your insurance company. In some cases, you’ll get reimbursement for the financial losses as long as you’re covered. These monetary losses result from personal injuries or property damages, whether you’re at fault or there’s a third party involved.
Keep in mind, however, that there are different types of insurance. Some insurance types offering basic protection are far more essential than others. Other types specifically provide some protection to particular needs. That said, here are types of insurance you must have in your lifetime:
1. Life Insurance
Life insurance must be your topmost consideration for your financial planning. There are two types of life insurance you can get. The first one is the term life insurance, where you get a policy for a certain time period (typically between ten and thirty years). The other one is permanent life insurance, which is precisely what it is.
Sure, life insurance may not provide you with financial benefits that you can gain during your lifetime. However, it gives you the utmost peace of mind knowing that your loved ones get financially secured in the event of your death. That way, your family won’t have to worry about paying for mortgage, funding education, and other regular household expenses.
2. Health Insurance
There’s no denying how costly it is to have an illness or a deteriorating health condition. Think of the medical expenses you’ll incur for a medical procedure, hospitalization, and medications. Even as simple as a doctor’s visit can be a bit expensive. That is where health insurance comes into the picture.
That said, you can secure an individual plan or get a policy through your employer. Your coverage depends on how much premium you’re paying and the policy features such as copay and deductible. But in the wake of the COVID-19 pandemic, it’s crucial to have health insurance for you and your family now more than ever.
3. Disability Insurance
Many of us think that disability insurance is optional. We’re less likely to get into an accident and end up disabled. But the truth is, it occurs more often than we think. In fact, the Social Security Administration claims that one out of four young adults ends up disabled even before retiring.
It’s good that disability insurance exists for the financial protection of disabled people. If you are injured or ill and can no longer work, you’ll continue to receive monetary benefits. Ultimately, this insurance type will allow you to live and survive despite your disability.
4. Auto Insurance
It’s easy to see individuals owning a car and hitting the road almost every day. It’s because having vehicles is no longer a form of luxury; it’s a necessity nowadays. You need your car, whether going to work or sending your children home from school.
Know that road safety is a top priority. Unfortunately, vehicle accidents are common. As such, auto insurance for protection is essential. It’s good that most states in the US require vehicle owners to have basic auto liability insurance. There are different types of auto insurance you can get. But if you are an accident-prone driver, get high-risk auto insurance online quotes and obtain the best deal for yourself.
5. Home Insurance
Your home is one of your life’s greatest assets. It took hard work and toil for you to purchase or construct a new house. However, your residential property can be subject to wear and tear over time. It can even get damaged brought about by fire, earthquake, flood, and other natural calamities.
To protect yourself from financial losses due to property damages, consider getting homeowner’s insurance. If you have a mortgage, your lender will require you to have this insurance. Even if you’ve paid off your home loan, it’s still best to secure home insurance. Consider doing so, especially if you live in a disaster-prone area.
At this point, you now know what insurance types to get as long as you’re living. Be sure to consider having those mentioned above, from life to auto down to home insurance. Not only will these insurance policies financially secure you, but they will also protect your property, your assets, and your loved ones. With all these in place, you’ll have the utmost peace of mind in your lifetime.