Nothing is guaranteed in this life. Around any corner, some accident can occur.
While accidents differ in their severity, it’s always a good idea to be prepared. Insurance is one way to future-proof yourself against the worst and to make sure you aren’t taking a financial hit out of the blue.
Consider the below to be the primary type of insurance policies you may need.
If you own your home, then this is a legal requirement. Even if you don’t own a property, there are other types of home insurance that you should know about.
Home insurance offers unexpected benefits including that it can cover you against an injury that someone else suffers while on your property.
Depending on the coverage you pay for, you may be able to claim the following:
- Damage to your home
- Loss of property due to theft
- Damage due to fire
- The expense of temporary housing due to repairs leaving your home uninhabitable
These are some of the standard options, but there are others that generally cost extra. You can also claim any damage that might occur to your personal belongings. For example, with the right coverage, if you spill water on your laptop and it stops working, you would be able to claim that through your insurance.
One thing that doesn’t always come as standard is natural disaster insurance. However, if this is something that you are concerned about, then speak to your insurance company to see if it can be added.
InsuranceJournal.com reported, of 2017’s 330 natural disasters, insurance losses were over $134 billion showing the importance of being covered.
Some companies will offer a level of life insurance as part of their care package for employees, but outside of that, there are a couple of options.
Term life is the most common. This covers you for a selected period. This is the more cost-effective option. Whole life, as you might expect, covers an individual for a lifetime. This type of insurance often comes with money guarantees and is continuous as long as you keep making payments.
There are some things to remember with life insurance. If you have suffered from a life-threatening illness, then it can be harder to find coverage. Still, some providers tailor policies for such individuals. Some will require a medical exam, while others can include other family members.
Travel insurance coverage can be taken out to insure individual trips. There is also accident insurance that can protect you in the event of baggage loss, injuries, and even accidental death. Your health or life insurance is unlikely to cover you when abroad, and medical bills can be expensive.
To save money on your travel insurance, you could choose only to get travel medical insurance. However, most of the time, this will not cover you in the event of delays, cancellations, or anything other than health-related claims.
Annual travel insurance protects you all year round. If you travel often, then this might be the most relevant type of travel insurance for you.
If you are embarking on a holiday that involves extreme sports, such as snowboarding, skiing, or surfing, then you may wish to check if you need to an extra layer of insurance as you may not be covered in the event of an accident.
Depending on what health plan you choose, you can expect to pay a percentage of any medical costs. The percentage gets lower the higher the level of coverage.
Here are the four levels of coverage. The individual pays the remainder of the medical costs:
- Bronze – Covers 60% of medical costs
- Silver – 70%
- Gold – 80%
- Platinum – 90%
Below are the five most common types of medical insurance plans
- Health maintenance organizations – You don’t get as much freedom to choose your care provider should you need it with this type of policy.
- Preferred provider organizations – You’ll have more freedom to choose a provider, but this can cost more money.
- Exclusive provider organizations – You can choose the care provider, as long as it is within the insurance company’s network.
- High deductible health plans – Often combined with a health-related savings account. The money you pay with is free from taxes.
- Point of service plans – Expect a limited choice of provider, but at a lower premium.
Most states require auto insurance before you get behind the wheel. There are a few types to remember.
- Liability coverage – covers other people and their property in the event of an accident that you caused.
- Collision coverage – coverage for any road accident, whether it’s your fault or not.
- Comprehensive coverage – this helps to cover damage caused by a third party, fire or theft. Sometimes even natural disasters are included as part of the coverage.
- Personal injury protection – this is a requirement in some states that can cover your medical expenses that are the result of a road accident.
As with many types of insurance, a deductible will often be required. The lower the deductible, the higher the overall price of your insurance is likely to be.
Of course, everyone hopes that none of these are ever needed, but it is always best to protect yourself against the unexpected.