There are some things in life that are really expensive, and a sudden disaster of some sort can cause huge financial stress. You can insure against anything at all, as long as you are prepared to pay the premiums. There are some insurances that everyone should have, and you will be pleased you have them should you need to make a claim.
#1 Car Insurance
In most states, this is a legal requirement. If you have an older car you may feel that the bare minimum is enough, but for cars of a higher value, it could be that the more you have the better. There are several insurances for motor vehicles, the main ones being:
- Personal Injury Protection, which covers medical expenses for the driver and any passengers in the event of an accident.
- Liability insurance is not meant to cover the driver or passengers but is for damage you may cause to another vehicle, someone else’s property or the injuries you may cause others if you are to blame for an accident.
- Collision cover will pay for the damage to your vehicle whether you were at fault or not.
- Comprehensive insurance will pay compensation if it is due, where the collision insurance will only pay for damage. This could be useful; if your car is destroyed in an accident and this affects your life.
- Theft is for if your car is stolen.
- Uninsured or Underinsured Motorist cover will pay out if the other person involved in an accident does not have enough insurance or none at all.
For your own peace of mind, you should never be on the road without adequate car insurance. Yes, you might be a good driver, and you may be able to learn more about personal injury lawyers and compensation should you be injured, but having your own insurance really is important. It could save you lots of money in the long-term.
#2 Health Insurance
Health insurance is meant to provide protection against the cost of medical expenses. The cost can vary greatly because of age, existing conditions and the amount of cover you require.
Individual health care policies are purchased directly by about 9% of the population. Some of them will pay a fixed amount, regardless of the total medical costs, and others will pay for everything involved in getting you back to full health.
Some employments provide this type of insurance as a perk of the job, and about 60% of the population are able to take advantage of this benefit. If you are not in this situation you should be looking at taking out the health insurance yourself.
A large portion of the bankruptcies filed in the US were because of medical expenses, but of course, that affects your whole life and it is something you should try to avoid. There are some other options that can help in certain situations.
Medicare is for those over 65 years of age, patients who become permanently disabled, end-stage renal patients and those with ALS. Research has shown that the people who did not previously have health cover but qualify for the Medicare program have improved health because of being able to access better care.
Medicaid is to cover those that do not qualify and the number of physicians who accept it has reduced. for Medicare, but are on very low incomes. It is means tested
#3 Home Insurance
There are two main types of home insurance in the US. Homeowners insurance is a must for anyone that owns their own home, but you need to make sure it covers everything. Sometimes extra cover is needed for natural disasters such as floods, earthquakes and fires.
Renters insurance is meant to cover against theft or damage to your property when you rent, and it comes at a low cost. It is worth having this cover for peace of mind if you rent your property.
#4 Life Insurance
Life insurance is protection for your family more than for you. It is to cover funeral expenses and mortuary fees and if you are the main breadwinner it can help to offset your lost income.
This takes away the worry of the financial stresses put upon families when someone dies, and everyone should have some basic life cover at least.
#5 Disability Insurance
If you are not able to work for a while you will be glad you took out disability insurance. It will replace your income so that you can still pay all your bills, and makes good financial sense for anyone with responsibilities. Depending on the extent of the cover you opt for, it can insure you for temporary, permanent, partial or total disability.
No one knows what will happen to us. We all think that accidents and illnesses happen to other people, not us. But if ever you are put in this situation you will be glad you have this relatively cheap insurance.
Insurances Not To Bother With
There is nothing you cannot insure but there are some policies that are considered to be a waste of money because they have become outdated. Disease insurance is just one example where you cover yourself against specific conditions. There are so many ways you could become ill that the cost a covering them all would be prohibitive. A good health insurance is a much better deal.
Flight insurance is meant to cover you if you are killed in a plane accident. Flying is one of the safest modes of transport and why pay for this particular policy when life insurance will protect your family in the same situation.
Mortgage Life Insurance used to be very popular but has now become much less so. A good term life policy will do exactly the same job at a lower cost.
It is much easier for most people to find a monthly premium than to have to face huge bills if a disaster happens. There will always be those who think it will never happen to them, but it could just as easily as it could happen to you. The types of insurance recommended above can vary greatly in their cost. You need to read the small print to make sure you are getting the cover you think, and take advice from professional insurance brokers who will be able to steer you in the right direction.