5 Different Types of Insurance Policies You Should Buy

Your odds of winning the lotteryare fairly slim, but you still like to daydream about it. Life is unpredictable, after all. Who knows what will happen in the future?

Not all of life’s surprises are as pleasant as picking the winning lotto numbers. It’s much more likely that you’ll get into a fender-bender at some point in your life.

Insurance helps us when those sorts of situations crop up. Since we don’t have crystal balls, it’s a good idea to carry insurance.

The question is, what kind of insurance do you actually need when life decides to throw you a curve ball? There are many different types of insurance policies. Each of them protects you in different situations.

In this guide, we’ll go over the fundamental types of insurance you should carry. You may not be able to predict the future, but you’ll always be prepared.

Car Owners Need Auto Insurance

If you own a vehicle, you’re going to need an auto insurance policy. Most states require you to have auto insurance.

The exact coverage you need is different from state to state. Be sure to check what the minimum requirements are where you live.

In most cases, you’ll want coverage over and above the minimum. While these policies are often more expensive, they offer better protection.

If you’re concerned about the costs, you can always look for discounts. Some insurance providers, like this company, offer discounts for driver training and good grades.

You may also be able to get discounts for the safety features on your vehicle. If you’re considering a new car, look and see what incentives are offered.

Home Insurance Keeps Houses Safe

Next on the list of basic insurance policies you should have is home owner’s insurance. If you own a house, a home owner’s policy can protect you in the event of fire or theft.

Be sure to check what is and isn’t covered under your policy. For example, most house insurance policies don’t cover natural disasters like flooding. You’d need to buy separate flood insurance.

Not every homeowner needs this added protection though. Carefully research your needs.

What if you don’t own a home, but rent or lease instead? You can still insure your property. Renter’s insurance policies cover your personal belongings if there’s theft or a fire.

Health Insurance Is a Must

Among the types of insurance you need, health insurance is important. Americans are living longer than ever before. With this increased lifespan comes an increased risk of getting sick.

Even if you happen not to have a chronic illness, there’s a good chance you’ll need to see a doctor at some point in your life. You may break a bone after tumbling off your bike. If you’re a woman who plans to have children, health insurance can help with prenatal care costs.

You may even need to get some medication for a cold. The right health insurance goes a long way to making medical treatment more affordable.

Life Insurance Is a Smart Buy

When it comes to types of insurance everyone should have, life insurance isn’t one you may think of. Many people feel they don’t need to spend the money on a policy.

Life insurance is a smart investment at any age. If you’re caring for a young family, for example, it can protect your family.

A life insurance policy may be able to provide enough money to set up college funds for your children. It might provide funds for your family to live on while they transition to their new reality. It could also cover your debts, like a mortgage.

If you’re in school or starting out in your career, life insurance is still a good idea. If you have any kind of debt, a life insurance policy can cover it. This can save your family financial stress.

Older people are the most likely to invest in life insurance. Permanent or whole life insurance is often a good choice. These policies can be cashed in, so you can use them as part of your retirement funds or to start a business.

Extend Protection with Disability Insurance

Health insurance may help you if you become ill. Life insurance is designed to help the loved ones you leave behind.

You might notice a gap in coverage here. What happens if you become disabled? Neither health insurance nor life insurance may offer coverage.

That’s why it’s so important to have a specific disability insurance policy. This isn’t one of the most common types of insurance, but it is becoming more popular.

A disability policy can cover both short- and long-term disability. It may help you cover medical costs. It can also help replace your wages if you’re unable to work.

Different Types of Insurance Policies You Don’t Need

There are many different kinds of insurance out there. We’ve gone over some of the basic insurance anyone should have. What types of insurance can you skip out on?

Be wary of policies that duplicate your coverage. A good life insurance policy will usually provide enough to cover your mortgage. A separate mortgage life insurance policy is usually unnecessary.

Disease insurance may be another type of policy to skip. You can often skip life insurance for children, credit card insurance, and many more.

Save yourself the money and put it toward better basic insurance to protect yourself.

Get the Insurance You Need

With so many different types of insurance policies out there, it can be hard to know what’s really worth your money. These five types of insurance will help you cover the basics. With them, you’ll be protected and prepared for anything life throws at you.

Are you interested in learning how to save money on insurance? Check out the blog for more tips and tricks to stretch your insurance dollars further.