Insurance is one product you may not realize how important it is to have — until you find yourself in need of it. There are many different types of insurance policies available to consumers today. Each one is important to those who need that specific type of coverage. While every person (and every business for that matter) has somewhat unique insurance needs, there are five types of policies that we like to consider “Must Have Insurance Policies.”
Our List of “Must Have Insurance Policies”
1) Homeowners Insurance or Renters Insurance
Homeowners and renters alike need to protect the investments they’ve made in their homes and possessions that fill them. Homeowner’s insurance provides coverage for the structure of your home, liability in the event someone is injured on your property, and coverage for the contents of your home.
Renters insurance offers liability coverage in the event that a guest’s’ actions may have caused a type of covered damage to the home, in addition to providing insurance coverage for the possessions inside the home. The structure is covered by the landlord’s insurance.
2) Auto Insurance
Not only is auto insurance required by law, at the very least for liability coverage, but it offers protection from lawsuits, medical bills, property damage, and auto repairs. In the event of an accident auto insurance is absolutely critical to help protect your family and your property.
3) Life Insurance
Life insurance isn’t necessarily about you, it’s about the people you leave behind. The sad truth is that life and death are filled with uncertainty. Accidents and illnesses occur in the prime of life all the time. If you’re not prepared with adequate life insurance protection for your family, they could find themselves forced to make painful financial decisions, while covering burial decisions ,and being forced to continue working while grieving. Having adequate life insurance helps your loved ones pay off expenses and debt, can serve as an inheritance, and offers you peace of mind.
4) Health Insurance
With the high costs of healthcare today, health insurance is a simple necessity. No one is guaranteed good health. Even if your health up until this point has been exceptional, tomorrow could tell a different tale, and the costs of life-saving treatments can easily leave your family to foot the bill for your treatment for decades or force you into bankruptcy.
5) Disability Insurance
What would happen to your family if you were suddenly unable to work? Most employers offer some disability coverage if you’re injured on the job, but what if you’re injured outside of work or have a long-term illness that renders you unable to work for an extended period while getting treatment? The reality is that the bills keep coming – even when your world has come crashing to a dead stop.
Many people skip this type of insurance coverage either believing it will never happen to them or simply being so frightened by the prospect that you choose to ignore it. Instead it is important to consider that disability insurance coverage could help to provide food and shelter for your family if you become unable to do so for yourself. As a general rule of thumb, look for disability coverage that provides at least 65 percent of your current income, though your unique circumstances and lifestyle play a part in the decision.
These five insurance policies are the most important for the average person. Make sure you have the coverage you need and schedule an appointment with your insurance agent if you find that you are missing any of the policies mentioned above.