Types of Insurance Covers That are a Must-have
Insurance covers offer you a security blanket that you can use in your time of need. Having an insurance cover is an investment for the unknown. It protects you and your loved ones from bankruptcy and even jail time.
However, you should consult a registered insurance agent to guide you on the type of insurance that best suits your needs. Insurance types vary, and if possible, you could take all of them to protect yourself against all forms of loss, but that is not practical. Below are the five types of insurance that are a must-have.
Health Insurance
A study published by the American Journal of Public Health in 2019 revealed that medical bills constitute more than half of all bankruptcy cases in America. The health insurance rates are one of the most expensive insurance covers you can purchase, but you will be glad you did so when a significant health calamity strikes. You might not visit the doctor regularly, but health insurance is just as important.
There are several flexible health insurances available. It is crucial to visit an insurance company and discuss the cover that best suits your needs and requirements. You should also be careful not to be conned into taking specific disease insurance cover as most are usually a way to milk you out of your money. Only take a cover that is best for you and your family.
Most employers offer health insurance, so it is essential to find out from your employer. If that is the case, you don’t need to get private health insurance cover.
Auto Insurance
This makes number one on the list because it is illegal to drive a car without auto insurance. Accidents happen daily on American roads, and you can never truly say when you might be part of one. That is why it is important to get yourself one.
Auto insurance protects you from damage fees in case of an accident. The insurance cover usually covers hospital and repair bills on your car. The average cost of hospital bills and repair costs per accident is significantly lower than a basic car insurance cover, so why not get yourself one.
There are three essential insurance covers offered under Auto insurance;
Ø Collision Cover: This only covers your car damages in case of a wreck. You will have to foot the hospital bills if need be.
Ø Liability Cover: It is the most common type of auto insurance. This covers hospital bills and car damage costs incurred because of the accident if you caused it. However, you should consult the insurance cover provider to know the extent or amount they will cover. Most have a limit, and you wouldn’t want to be caught flat-footed in case of multiple car accident.
Ø Comprehensive Cover: Although quite expensive, this cover offers you protection from multiple disasters that might befall your car. These disasters range from a car wreck, theft to damages caused by natural disasters.
Life Insurance
Life insurance might not look like a priority for you now, but it is never too early to buy one. The younger you are, the better life insurance cover you are likely to get. You would not want your children, wife or husband having to suffer because you, as the sole breadwinner, has passed on.
Many families end up changing their lifestyle or adjusting their expenses because their primary breadwinner passed away. You definitely do not want this suffering to befall your family. You would not want your children college fees to be readjusted. Life insurance usually covers funeral expenses and take care of your family for a given amount of time.
Many factors come into play when choosing a life insurance cover, so make sure you do so carefully to not expose your family financially in case you die. There are two major types of life insurance;
Ø Term life insurance: This cover usually offers financial aid to your family up to 10–12 times your annual salary for a specific number of years. It is valid only for the time you specified, and if you don’t die by then, it expires with no payout. It is the most common type of life insurance.
Ø Permanent life insurance: This policy is valid for a lifetime. It would cover your family financially after your death if you paid your monthly dividends diligently. It usually even includes a cash value pay-out and allows you to borrow from while still alive.
Long Term Disability Insurance
Most insurance covers will only cover the damages of an accident or the hospital bill but not cater to the lost revenue source when in hospital. When you are incapacitated because of one reason or the other, you will not be able to work. No work means you can’t pay the house bills that your salary usually covered.
This usually includes assistance due to disability or a chronic illness that prevents you from working. It is a necessary cost if you can afford it. Many employers also offer short and long term disability insurance. It is good to check with your employer before purchasing one.
Home Insurance
A homeowner’s insurance coverage is a vital shield to the loss of a house or household goods. It not only applies to homeowners but also to those in rentals. The insurance cover will cover damage to your property or loss of property to the same extent or even more than your policy cover for homeowners. This policy cover has many flexible options. Hence, it is paramount to study it carefully to get your home’s best cover.
Renters insurance is still a home insurance cover that protects those in rentals from costs incurred due to property damage or theft. The contents in your house and general area security will determine if this insurance cover is worth it for you.
Conclusion
Searching for the right insurance cover is a hectic affair. Many companies offer insurance covers with hidden clauses, or they don’t have the coverage that best suits your needs. That is why it is important to contact a reliable Insurance Agent to help you get the best Insurance cover and company that fits your needs. Insurance is cover against risk, so it is necessary to carefully study the covers before buying into one.
