In 2017, insurance industry net premiums in the United States hit $1.2 trillion, a slight increase from 2016.
However, although Americans are spending more money on insurance, it’s not uncommon to find consumers purchasing inadequate coverage in certain areas and completely ignoring other areas.
To make the most of your money and minimize your liabilities and losses, it’s essential to buy enough coverage for all the things that matter to you.
In this article, we’re sharing 4 types of insurance policies that are a must-have.
1. Life Insurance
Let’s face it: It’s not the fact of death that scares most people, but its uncertainty. You just don’t know when it will come knocking on your door or even how it’ll show up.
And when the inevitable comes to pass, how will your loved ones fair on, especially from a financial perspective?
This is where life insurance comes in handy. When you purchase this policy, the insurance company will pay a specified amount of money to your named beneficiaries upon your death.
There are three types of life insurance policies: term life, universal life, and variable insurance policies. They all have unique characteristics, so ensure you’re well informed about their pros and cons before signing up.
2. Health Insurance
Did you know more than 25 percent of all American adults struggle to settle their medical bills? Or that medical bills are the leading cause of personal bankruptcy filings in the country?
Clearly, if you don’t have sufficient health insurance, you’re only one illness away from sinking into debt. If you’re one of the 28.5 million Americans without any kind of health insurance, it’s time to act.
And, it’s not just about purchasing healthcare coverage. You need adequate health insurance; otherwise, a slight illness or health emergency can easily max out your limit and you’ll have to dig into your pockets to settle the balance.
If your employer offers you health benefits or you’re on a national health insurance program like Medicare, it’s prudent to ramp up the coverage with a supplemental plan, particularly one that covers long-term disabilities.
3. Auto Insurance
A whopping 95 percent of Americans own a car, making auto insurance a necessary purchase.
Although each state has minimum car insurance requirements, it’s in your best interest to buy add-ons for better protection. For example, compressive and collision coverage will ensure you get a replacement in case the car is stolen or totaled in an accident.
You also might need a personal injury cover, especially if your health insurance coverage doesn’t include auto accident injuries.
Sure, it sounds like you’ll need to significantly increase your auto insurance from the required minimum, but worry not. With online life insurance companies you’re confident of scoring good deals.
4. Homeowners/Renters’ Insurance
If you’re a homeowner, you’re certainly familiar will the pride and satisfaction that comes with homeownership.
Without homeowners’ insurance, though, you risk losing your property to anything from electrical fires to natural disasters. Or if thieves break in and make way with your prized possessions, you’ll be counting losses instead of filing for a compensation claim from an insurer.
And if you’re a tenant, don’t assume you don’t need insurance to protect your possessions. Renters’ insurance exists to protect you and help replace your stuff in case of fire or water damage, or theft.
These Types of Insurance Policies Are Necessary
Some say the beauty of life lies in its unpredictability. True, but it’s not until it throws storms at you that you come face to face with its ugly side.
The good news is with the types of insurance policies fleshed out above, you, your family, and your assets will be protected from the destructive nature of life’s storms.
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