FOUR TYPES OF INSURANCE COVERAGE EVERYONE SHOULD LOOK INTO

by | Jun 7, 2022 | Wealth Management

While it’s impossible for us to predict the future, you can have protection in place to cover you financially if an emergency strikes. Insurance is designed to safeguard us should something out of our control happen. However, with so many insurance options to pick from, like home insurance, it can be challenging to establish what type of insurance you actually need.

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Purchasing the right kind and amount of insurance will always be determined by your specific situation. Factors include if you have children, your age, and the lifestyle you lead. With that in mind, here are some types of insurance coverage everyone should consider looking into and taking out.

Home insurance

The primary reason to obtain home insurance is to protect where you live. If you want to take out a mortgage, virtually all companies require borrowers to have home insurance coverage for a fair or full value of a property. In addition, home insurance coverage can pay for medical bills, protect equity, and offer protection against natural disasters. You’ve worked hard to live in the property you’re in. So it makes sense to take out insurance to keep your home protected.

Auto insurance

There are millions of car accidents in the United States every year, with thousands of people sadly losing their lives. If you drive a vehicle, you need auto insurance. However, not every state requires drivers to have it. Most do have regulations concerning financial responsibility should you be involved in an auto accident. Some individuals take out a home and auto insurance bundle to save money. You can potentially save hundreds of dollars if you take out home and auto insurance together.

Life insurance

The key benefit to having life insurance coverage is the ability to cover funeral expenses and provide money to those you leave behind. Taking out life insurance is more important than ever for those who have children, especially as your loved ones will be dependent on your salary to cover the bills. It’s recommended that you take out a life insurance policy that covers 10 times your annual income.

However, this isn’t a number everyone can afford. When establishing how much life insurance coverage you require, you also need to factor in day-to-day living expenses.

Health insurance

Believe it or not, you and your loved ones are only one serious illness away from bankruptcy. With millions of people living paycheck to paycheck, a serious health issue could be financially crippling. Therefore, it’s strongly advised that you obtain health insurance.

Sadly, health insurance is becoming a luxury, with fewer and fewer people being able to afford it. The least expensive route may be participating in your workplace’s insurance program. Although, some businesses won’t offer this benefit. Contact trade associations and organizations about group health coverage, as this may be a viable option.

Many experts agree that the above insurance coverage is what you should have in place. However, make sure to talk to your employer first to check if they provide coverage. If they do not provide any, you can obtain quotes from insurance providers.

Top image by Max Vakhtbovych/Pexels

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