When it comes to insurance, it’s better to have it and not need it instead of not having it when you need it. From health to pet insurance, there’s an overwhelming amount of insurance products in the market.
Obviously, you won’t need all of them if it doesn’t apply to you. However, there are some absolute must-haves if you really want to protect all the wealth you’ve accumulated and avoid unnecessary debt for you and your family. Nowadays, you can compare insurance coverage on PolicyScout and other comparison websites to make sure you’re getting the best deal.
In this article, we’ll be listing three important insurance policies most folks should have.
If you can only afford one type of insurance for the time being, this would be it. As you may already know, hospital and medical bills can rack up very quickly.
The problem is that we just never know when we could end up in an emergency room. As many as 27.5 million Americans were uninsured in 2018, and CNBC reported that two thirds of bankruptcies were due to medical bills.
Basic health insurance would cover emergency room visits, doctors, and medication. However, be sure that you read the fine print of the policy agreements before signing it. Keep in mind that there are deductibles to be paid before your insurance policy kicks in.
Your employer may already have a health insurance policy in place for you as part of your work benefits and this coverage may include your immediate family members too. If you’re self-employed, you bear this responsibility.
When you have a family, life insurance is so important. A life insurance policy ensures that the beneficiaries (your family) receive a payout when you pass away. This is called the death benefit, and the amount the beneficiaries receive depends on the premiums you pay and will be explained by your insurance agent.
Generally, there are two types of life insurance; term life insurance and whole life insurance. Both have pros and cons and are suitable for different situations, but the objective is the same.
Generally, most people would opt for the term life insurance due to its practicality and lower costs. However, you’ll need to renew it when the policy expires, compared to whole life insurance which never expires.
The payout ensures that your family receives enough money to pay any existing debt, college tuition, and living expenditures when you are no longer there to support them. Think of it as replacing your income when you die.
Homeowners/ Renter’s Insurance
Any repair and replacement costs to your home due to accidental damage or even theft can get pricey. This is when homeowners and rental insurance are great to have.
Depending on the policy you sign up for, valuables such as jewelry, cameras, and even your tv will be covered if they get stolen.
All in all, homeowners and renters insurance are quite similar. However for renters insurance, damages to the house structures typically aren’t covered since the renter doesn’t own that property. This makes renters insurance very affordable.