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What happens when things go wrong in life? Insurance coverage usually comes to the rescue. At least that’s how it’s supposed to work.
For many people, they find that they don’t have the right type of insurance or they don’t have enough coverage. They find themselves in financial difficulty because insurance didn’t pick up the slack when they thought it would.
Do you need insurance? That’s another question that people ask themselves. They think that they don’t need the extra cost.
Read on to learn why insurance is important and the types of insurance you need to consider for complete coverage.
In This Post:
Do You Need Insurance?
Let’s start with the basics. Is insurance really necessary? After all, you’re paying monthly premiums every month and probably wondering what for.
Ask yourself this question. If you got sick or got into a car accident, would you be able to pay for the expenses out of pocket?
Probably not. Many Americans can’t afford a $400 emergency, let alone a car repair or hospital bill that’s worth thousands of dollars.
Insurance is important because it can leave you and your family financially unstable. You pay an insurance premium every month so you aren’t slammed with a huge bill when something bad happens to your or your property.
The Types of Insurance to Consider
Insurance isn’t a one-size-fits-all type of thing that you purchase. The insurance needs of a married father of four will be different from the needs of a single self-employed woman.
That’s why there are different types of insurance products to learn about. Understanding them helps you figure out the right types of insurance.
Health Insurance
We don’t in a country that offers universal health coverage, so you have to consider health insurance. With the costs of healthcare being what they are, this is an essential insurance plan to have.
There are many types of health insurance products out there. Some are short-term plans, which are good for instances when you’re not working for a short period of time.
There are other types of coverage through the Healthcare Marketplace. You need to weigh your deductible, co-pays, and understand your coverage fully before you sign up.
Life Insurance
What would happen if you passed away? Who becomes responsible for paying for your funeral expenses and any related healthcare expenses?
That would probably be left for your family to figure out if you don’t have life insurance. Of course, you don’t want to think about dying unexpectedly, but you ever know.
Life insurance can be a great thing to provide your family in the middle of grief. They wouldn’t have to worry about living expenses or making ends meet, as long as you have the right coverage. This life insurance guide tells you more about the types of life insurance and how to get enough coverage.
Homeowner's Insurance
Your home is the most important and expensive purchase you will make. Why would you not protect it with a sound insurance policy?
Homeowner’s insurance has a couple of components to it. There’s liability coverage, which will cover you if someone is injured on your property. There’s also property coverage, which will cover the structure and your belongings inside the property.
Your belongings are covered in one of two ways. The first is the market value, which is how much something like your TV would be worth on the market today. The other way is the replacement value, which is the cost to replace that item.
If you live in a place that gets flooded, make sure that you have additional flood coverage. You won’t be covered under a standard policy.
Home-Based Business Insurance
Working from home can bring a host of benefits, especially if you have a home-based business. You can store your inventory at home and
The major error that new entrepreneurs make when they start a business from home is that homeowner’s insurance will cover everything that’s related to the business.
That doesn’t happen. For example, if you work from home and 100% rely on your laptop for your business and it breaks, your homeowner’s coverage won’t cover it.
You need to have a separate home-based business insurance policy. This can easily be done as an insurance rider in most cases. This is something that you can’t afford to forget about if you start a business from home.
Renter's Insurance
Renter’s insurance is very similar to homeowner’s insurance, but it’s for renters. It protects the property inside your unit as opposed to the physical structure.
If there’s damage to your property or if there are other issues in the home and your property is damaged. Renters insurance also covers liability in case of someone getting hurt in your home.
Auto Insurance
Auto insurance is another type of policy that you should have if you own a car. Most places require that you have some basic level of auto insurance before you put your car on the road.
Auto insurance can be confusing because different states have different laws regarding coverage requirements. Some states are no-fault states while others require personal injury protection.
If your car isn’t a beater car, you’ll want to get comprehensive coverage, which can take care of replacing or repairing the car in an accident.
Yes, You Need Insurance
Do you need insurance? If you learned anything by reading this, it’s that insurance is necessary to have if you want to prevent financial difficulties for you and your family.
It can be hard to know what you need insurance for, which is why you need to understand the different types of insurance. You have insurance policies for just about everything that can happen in life and death.
Which ones you need depends on a number of factors, like your age, health status, homeowner status, and more. You should sit down with an insurance professional to decide what types of coverage you need.
Be sure to visit this site often for more great tips to help you and your family save money.