Insurance is a necessary part of a financial safety net. Insurance policies protect you against a wide variety of different worst case scenarios and downturns in your personal fortune. But with all the different kinds of insurance on the market, it can be challenging to know where and how to get started. With insurance, consumers should ensure that they have adequate protection for all of their needs from reputable companies without running the risk of overpaying. Here’s a closer look at the most important types of insurance that every buyer needs to consider.
Life insurance
The most common type of insurance that buyers are familiar with is life insurance. Life insurance provides your loved ones with a layer of financial protection in the event of your death. This type of insurance is especially important if you’re a major contributor to your household income; if you’re leaving large expenses behind, such as a mortgage or co-signed student loans; or if you have young children that your partner or spouse would need to raise without you. Choosing the right type of life insurance, along with the policy limits, is an important first step in getting your insurance life in order.
Car insurance
If you own a car and drive, automobile insurance is essential. Auto insurance protects you in case of a car accident. Policies typically include coverage for damage to your car, yourself, passengers, and anyone else who might be injured if you hit them. Having a policy in place can help you replace your car if it’s totaled, get the medical care needed after a car accident, and protect your assets if you’re at fault in a serious accident.
Health insurance
Health insurance is key to getting access to the medical care you need. From regular checkups to routine medications, health insurance can reduce the costs of medical care over time. Policies range from barebones emergency insurance to comprehensive plans to limit your out of pocket medical expenses to just your insurance premium. Knowing your current health levels and what your family is at risk for can help you determine what coverage is right for you.
Disability insurance
Unless you’re independently wealthy, your standard of living is tied directly to your ability to work. If you get sick or have a serious accident, you may be unable to work at all or as much as you normally do. As a result, your income can plummet and your livelihood may be directly impacted. Disability insurance – both short-term and long-term – is one of the best defenses against losing your income in the case of unexpected illness.
Pet insurance
When your family has pets, they can bring a tremendous joy and happiness. But vet costs can be high. Routine checkups, monthly medications, and the more serious care can add up to thousands over a pet’s life. Pet insurance works much like health insurance and can help defray expenses.
Having the right insurance in place is a safety net that gives you a peace of mind, regardless of what the future may hold. To determine what policies are right for you, do additional research or speak with an insurance agent or independent financial advisor.
About the author: Meg Silvio is an insurance agent in Staten Island, New York.