Life is unpredictable, but even though you can’t usually foresee or prevent the unfortunate incidents that might happen, you can still protect yourself against the financial losses that they may cause.
Should an unexpected disaster occurs, your insurance policy can be the key to your financial protection and your peace of mind. But with so many insurance options out there, how can you determine which coverage you actually need?
While the right insurance depends entirely on every person’s specific situation, most experts agree that the following 4 types are essential for pretty much everyone.
Your physical wellbeing enables you to work, earn money, care for your family, and enjoy life. This arguably makes health insurance the most important type of coverage to have. If you were to develop a serious illness or suffer a major accident without coverage, you’ll likely find yourself indebted to the hospital or you can even be unable to receive proper care. Not only can health insurance makes all the difference in case of a medical emergency, but it also becomes an absolute necessity if you live somewhere where the cost of medical care is particularly high. This is because the high cost of medical care means that even the simplest visit to the family doctor can cost you quite a lot so you can only imagine how hefty your bill will be if you suffer a serious condition that requires hospitalization or surgery.
Nearly every bank and lender requires their customers to have a homeowner’s insurance policy when applying for a mortgage, but even if you’re not looking to take out a loan. This type of insurance is still vital because your home is your shelter and your greatest asset, you need to make sure that it’s properly protected. This is why the insurance advisors at this company recommend having home insurance, even if you’re renting your house instead of owning it. You see, aside from the actual property you live in, the items and belongings within your home also hold very high sentimental and financial values and both homeowner’s and renter’s insurance can cover most – if not all- of their replacement costs in the event of a burglary, an accident, or a natural disaster. Plus, both policies can also protect you against personal liability if someone is injured on the premises of your house.
Just like your home, your vehicle is also quite valuable and if it gets damaged for one reason or another, you’ll want to be able to repair or replace it. This is where the auto insurance comes in handy. Although some types of auto insurance are mandated by law in many countries around the world, you shouldn’t skip on this type of coverage whether you’re legally required to have it or not. Besides covering the repair costs, most auto insurance policies will also cover serious or fatal injuries that you or other passengers suffer in the event of an accident, regardless of who is legally responsible for the crash. Moreover, your auto insurance can help guard you against any litigation and pay for your legal defense costs if you were subject to a lawsuit after an accident. It can also protect your vehicle against theft and vandalism as well as any damages caused by a natural disaster.
The sole purpose of life insurance is to provide for those you leave behind after you pass away. Without life insurance, the spouse and children left behind are usually able to cover their living expenses only for a few months after the death of the primary financial provider. Many families, even struggle immediately after the death of the main wage earner. In the event of your untimely demise, a life insurance policy can replace the lost income and provide your family with cushion money that will help them re-group after your death. The policy can also pay for the burial costs, help your dependents pay off any lingering debts, and even finance your children’s college education.
So there you have it! These 4 types of insurance should cover the most fundamental aspects of your life and will definitely go a long way in helping you safeguard your financial future against possible ruin. Although insurance can certainly take a big chunk out of your budget, the cost of the insurance policies is nothing compared to the potential cost of not having coverage. A word to the wise; before you sign that dotted line, take the time to shop around and compare coverage, premiums, deductibles, co-pays, and benefits so that you can successfully choose the most suitable plan for your needs.