Insurance is intended to provide us with some amount of protection. Think of it as your life jacket, it can be a bit of a burden when you don’t need it, but when you need it, you’re more than grateful to have it. Not having it, you could be one car destruction, illness or house fire away from drowning—not in the ocean, but in bills.
Insurance is a complicated matter for some people but it’s necessary for our financial well-being. To help you get a better understanding, we’re going to discuss the top 4 insurance options you can’t go without. Although each one is a must-have, you still need to find a great insurance agent to help you find the right types of insurance customized to suit your needs.
If you are driving without auto insurance and you got into an accident, the fines will surely be the least of your financial burden. A car, just like your house is a valuable asset you use every day. If your car gets wrecked in an unfortunate accident and you have no auto insurance, you either replace that vehicle or unless you have a large savings account. But do you really want to tap into that savings? This is when auto insurance would cover the cost. Here are some of your options when it comes to auto insurance:
- Collision coverage. This type covers the cost to repair or replace your car if it’s damaged or destroyed in a wreck.
- Liability coverage. This covers the costs of any injuries or property damage that resulted in the collision. Some states require you to carry a minimum amount of coverage, so check with your insurance agent to understand your basic requirement.
- Comprehensive coverage. It covers the losses that aren’t caused by destruction such as vandalism, flood, fire, hail, and theft.
According to Investopedia, Harvard made a study that statistically notes that a family is just one serious illness away from bankruptcy. So if you’re uninsured, higher is the chance that you’re allowing yourself to be vulnerable to potential financial catastrophe. The high cost of medical insurance shouldn’t be considered as an excuse to go without coverage, even if you don’t go to the doctor often. You won’t know that one unexpected major medical emergency could amount to hundreds of thousands of dollars of expenses. So it’s better not to put yourself in that situation.
When applying for health insurance, you might want to consider the following:
- Necessities. Single people who are young and healthy don’t really require that much coverage compared to those with young families, the elderly, or those with problematic health issues. So if you are, you might want a low deductible and copays.
- Doctors. Ask first before taking plans is if it allows you to keep your current physician.
- Price. Know what you can only afford. Shop for plans with higher copays and deductibles that will save you money on your premium.
This is one of the most common and important insurances for providing for those you leave behind. You may want to consider life insurance if you have a family that’s relying on your salary to pay the bills. According to Investopedia, experts in this kind of industry recommend that a life insurance policy should cover ten times your yearly income. That total would provide enough money to cover current expenses, funeral expenses and give your family a cash cushion. That cushion will assist them to regroup after your death.
However, you might say that you’re debt-free and have enough cash to pay for your burial, holding off on life insurance. But the younger you are, the more affordable term life insurance is, so there’s no explanation to wait until you have a family to get insured.
Long-Term Disability Coverage
A lot of people see this insurance as the least needed, as none of us presumes that we will become disabled. But if you got injured and off work for three months, do you have adequate savings to cover your living expenses? Think about what you might face financially if you experience a major medical condition such as cancer and were unable to work for over a year.
Don’t think a permanent disability could sideline you and your capacity to work? According to the Social Security Administration, one in four of today’s 20-year-olds will become disabled before reaching age 67. With this reason alone, you might want to invest in long-term disability insurance that can protect you from loss of income if you are unable to work for a long period of time due to an illness or injury.
Author Bio: Ivandrea Ollero is a daytime writer for, one of the largest and most trusted General Insurance businesses in New Zealand, providing leading insurance products, technology, and policy wordings. She is also a content crafter who researches and writes custom content about travel, fashion, finance, business, home improvements, health, and beauty, in order to provide helpful information and tips for her readers. Ivandrea graduated from St. Scholastica’s College, Manila, with a Bachelor’s Degree in Broadcast Journalism in 2016.