Insurance is one of the important and interesting sectors in the world. It is there to secure you, yet it in some cases appears as though a gigantic misuse of assets in the event that you don’t wind up requiring it. There are 5 various types of insurance policies that most financial experts recommend that all of us need to buy: Auto, Life, Home, Health and Disability.
Each one of these insurance covers a specific aspect of your life and each one is very important to your financial future.
Know about 5 different types of Insurance Policies you should have:
- Auto Insurance: In case one possesses a car, auto insurance is definitely needed. Firstly, every state requires that a car has auto insurance and for those who travel predominantly in their cars, it would be difficult to find a replacement immediately if the car happens to be in an accident. Moreover, if it was your own fault during the accident, the liability is likely to become more expensive. The auto insurance money would definitely pay all the medical bills and one might also choose to get accidental death insurance separately or as a rider with the existing insurance.
- Life Insurance: Life Insurance is an important insurance policy, perhaps the most important of all. In the event of the untimely death of the policyholder, who is often the breadwinner in the family, the rest of the family will have the financial assistance they require. It is expensive to run a household, and there are the added expenses of the children’s education as well. So it is important to assess one’s needs and get life insurance which will be enough to cover all the expenses.
- Home Insurance: If one’s home is damaged in any way, then there will be vast expenses to incur, in addition to dealing with the emotional trauma of losing one’s safe haven. Moreover, depending on the intensity of the damage, a lot of expenses would be incurred for renovation or to buy or rent a new accommodation. The home insurance will protect you in such times and you will get the funds of making repairs to your home, or make provision for lodging, without having to pay for all of them at one go out of one’s own pockets.
- Health Insurance: In case one does not have health insurance, then they should be made up of their minds about incurring huge medical bills in case of an illness or during hospitalization. The costs of good healthcare are increasing in leaps and bounds and the money from health insurance will be a safeguard when such a situation arises, allowing you to pay for medical expenses of all sorts like doctor’s fees, hospital expenses, medicines, and also expenses incurred during recovery. It is needed more so in the case of chronic conditions and even if one is in good health, they should have basic insurance to cover the major medical problems or lifestyle-related illnesses that might crop up in the future.
- Disability Insurance: Disability insurance is an absolute must and it can be a lifesaver both during permanent or even short term disability. This could be due to an illness or accident and any kind of disability means that one would have to stay in the bed and it would mean time off from work. Hence, the money from the insurance would go towards meeting all the expenses of the household during that time. It is important to get adequate coverage foreseeing one’s expenses and the kind of lifestyle one needs to fix an amount of insurance.