7 Types of Insurance You Actually Need

Though insurance may seem like an unnecessary expense, it’s actually very important to protect yourself against a variety of potential accidents and emergencies.

Insurance can help you repair any damage caused by such events and ease the burden of financial worry that they would otherwise cause you.

In order to figure out which types of insurance you should have, it’s important to know what kinds are available and which ones are right for your situation.

Let’s take a look at the 7  types of insurance you actually need and why they’re so important to have.

1) Health insurance

Health insurance is one of the most important types of insurance that you need.

The best health insurance companies will cover major medical expenses and protect you from financial catastrophes in the event that you incur major medical bills.

Plus, when it comes to your health, there’s no price tag too high to pay for peace of mind.

Homeowner’s insurance: Homeowner’s insurance is another form of life assurance that you should always have as a homeowner or renter.

The average annual cost of a homeowner’s policy ranges between $600 and $1,000 depending on factors such as your location, the value of your home, what specific features are included (flood protection), and whether or not there is a mortgage or loan on the property.

2) Dental and vision insurance

You might not feel like dental or vision insurance is necessary, but it’s important to have these two kinds of coverage.

Dental insurance will help cover the cost of your dental work if you need a root canal, crown, or tooth extraction. Vision insurance will cover your contacts, glasses, and eye exams.

Auto insurance

If you find yourself in an accident: If you are injured in an accident that isn’t your fault, it’s likely that you’ll want to file a claim with your auto insurance company.

Your car insurance policy covers any damages done to other vehicles or property when an accident is caused by someone who drives one of its insured cars.

Driving your car is a huge responsibility and should be taken seriously. But, if you’re like most people, you might not know what kind of insurance coverage you need to protect yourself on the road.

We’ll break down the seven types of insurance that every driver should have:

✓) Liability – If someone is injured or damages property as a result of your negligence, then liability insurance will pay for their medical bills and other expenses they may incur.

✓) Uninsured Motorist – Most states require this type of insurance because it protects drivers in case they are hit by an uninsured motorist.

✓) Comprehensive – Just because your car is insured doesn’t mean it’s protected against all accidents. A comprehensive policy covers any damage done to your vehicle, no matter who caused it.

✓) Collision Coverage- If another driver causes an accident with you, collision coverage pays for repairs or replacement costs so that your vehicle can get back on the road safely.

4) Homeowners or renters insurance

Whether you have a house or an apartment, it’s important to consider buying homeowners or renters insurance.

These policies protect your belongings in the event of a disaster like a fire, flood, burglary, or other unexpected event.

Some types of insurance may also cover you in the event that someone is injured on your property (even if they’re trespassing).

Be aware that some policies may not cover certain things for example, floods from burst pipes are usually excluded from coverage.

So it pays to read the fine print! The cost varies depending on where you live, but this type of policy should be one of the first ones you buy.

5) Life insurance

Just because you’re young and healthy doesn’t mean that you don’t need life insurance.

The truth is, the earlier in your career you buy it, the less expensive it will be. It’s also a good idea to get enough coverage so that your family will still be able to live comfortably should something happen to you.

6) Disability insurance

Disability insurance is a type of insurance that helps replace your income if you are temporarily or permanently unable to work.

It typically pays out a monthly benefit to cover living expenses and other financial obligations for the period where you are incapable of working.

Disability policies usually offer two types of coverage – short term and long term. Short-term disability generally covers up to 3 months, while long-term disability can last up to 5 years.

When shopping around for disability insurance, it’s important to determine how much coverage you need based on your lifestyle.

What happens if you’re not just temporarily disabled but also suffer from a permanent impairment? Are you able to return to work at all?

7) Long-term care insurance

Long-term care insurance is something that most people think about when they are in their 50s or 60s and are about to retire.

But it doesn’t have to be a retirement-only thing. Even if you’re in your 30s, 40s, or 50s and don’t think you need long-term care insurance now, it might not hurt to have some coverage for the future.

This way, you’ll be prepared for the possibility that one day it will become a necessity.

cover all kinds of things such as food spoiled by a refrigerator breakdown after a power outage.They also provide liability protection in case someone gets injured on your property.

Flood insurance: It’s common knowledge that many homeowners still don’t buy flood insurance even though they live in an area prone to flooding.

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