5 Types of Insurance You Should Have

Life is mysterious.

This points out to the very fact that life is uncertain and risky.

You never know what is going to happen next.

When translated to financial terms, this means that you cannot be complacent in your financial planning. You just cannot take your personal financial life for granted.

So, while you move on in life, you have to ensure that you have taken adequate financial measures so that you and your family can meet any of the challenges that life thrusts upon you. Insurance is one such financial instrument that can come to your rescue and can meet the financial risks arising out of uncertain nature of life.

One certainly does not like to comprehend or imagine dreadful and unpleasant episodes in life; however, you cannot just rule them out of your life. Insurance is the only means that although cannot fulfill the emotional void but can certainly meet the financial fallouts arising out of an unpleasant and unknown event. So whether it is a car accident, a serious illness, an accident, or even a death, Insurance is there to help you out in your difficult times and provide you and your family the much needed financial cover.

Having said this, the obvious question that arises is – what type of insurance is necessary for you?

So, the primary thing that matters for you is to figure out what types of insurance you should have.

Rather you should know, what types of insurance do you need?

Well, nowadays, the insurance market is flooded with various types of insurance plans and policies. This might confuse you. Then you cannot simply have all types of insurance plans or policies. This is practically neither possible nor advisable. The limitation comes in the form of your disposable income. So, first things first. You should have a list of types of insurance with you so that you can have the necessary insurance cover with you. Your goal should be to have an optimum insurance cover for yourself. This ensures that you are not under-insured or over-insured. On the contrary, you should be rightly insured.

Here, we have listed down 5 Types of Insurance that you should have. These are the basic types of insurance everyone should be having with themselves so that they can live a peaceful life. These types of insurance cover guard you against all types of risks that one might face in his or her life.

So let us find out what types of insurance cover you should have.

Type of Insurance to Have

Life Insurance

Among the various types of insurance, life insurance is the most basic type of insurance that you should have for yourself. It is your major responsibility to protect your family in the ups and downs of life.

However, just imagine the situation when you are not there for your family.

In case, death happens what will happen to your family? What will be the financial fall-out going to be?

In such a scenario, the only viable way to ensure the safety and well being of your family is to have a life insurance cover with you.

With Life Insurance, your family is (financially) protected in the unfortunate event of your death. It can be a major component for protecting your family in the event of your unfortunate death. If you are the primary breadwinner of your family, life insurance can duly compensate the lost income for your family in case you are no more for your family.

So in the event of premature death, life insurance can protect the financial interests of your family. Thus, you see that life insurance is one of the most essential types of insurance that you should have. However, if you are single, life insurance is not needed. For everyone else, life insurance should be a “must-have” financial instrument.

Health Insurance

If you analyze the total life span of an individual, you will find one obvious outcome. The finding is that almost every individual suffers from one or the other medical issue. Now, one hard fact. The cost of medication and hospitalization has shot up like anything. So if you are seriously ill or have met with a severe accident then be prepared for a large medical bill. However, it is not easy to pay for the large and heavy medical bills. Then there are post-hospitalization expenses too.

So, on the whole, health or medical costs are a huge burden for any individual. The obvious solution lies in having an adequate health insurance cover. With adequate health insurance cover, you can address any kind of your medical issues be it flu or a broken bone.

With the Affordable Care Act, (popularly known as Obamacare) it is now mandatory for every American to have a health insurance cover. Moreover, it comes as a fact that more than 50% of all personal bankruptcies are due to health insurance costs. All these facts go onto the point out that health insurance has become a necessity for each and every individual. So, health insurance should be “must-have” insurance for you.

Disability Insurance

Another important type of insurance that you should have is Disability Insurance. Actually Disability Insurance is quite similar to life insurance. With Disability Insurance, you get reimbursed if you get disabled and are not able to work for a period of time. Research findings reveal that an individual has more probability of getting disabled than to die a premature death.

Moreover, it comes as a fact that one third of Americans get disabled at some point of their life. So, it makes absolute sense to get a Disability Insurance for you being a single individual or a married person. Unlike health or life insurance, disability insurance is relatively cheap. So, having disability insurance is not going to cost you much. Just ponder over the scenario that getting disabled could severely affect an individual’s earning potential.

So in such circumstances it becomes extremely difficult to meet one’s living expenses. Moreover, there is the added burden of meeting your healthcare expenses. So if you want to avoid the risks attached with a disability then the only viable solution is to get a Disability Insurance for yourself.

Primarily there are two types of disability insurance. One is short-term disability insurance, and another is long-term disability insurance. In short term disability insurance, you get income replacement protection starting after one week of disability and upto six months. In long term disability coverage, the income replacement protection starts at the six month mark and continues till the age of 65 years.

Homeowner’s Insurance

Your Home is perhaps the most valuable asset that you own. Having a Homeowner’s Insurance ensures that you adequately cover the risks of damage and theft that is attached with your house. You simply cannot be certain that there will be no occurrence of damage to your house. Then the possibility of theft cannot be ruled out for sure. So the best way to protect your house from such catastrophic events is to get a homeowner’s Insurance. However, when you go for having Homeowner’s Insurance, you should also take additional coverage against fires, flooding and earthquakes, as well. So don’t forget to ask your insurance agents for these additional coverage that might not be included in the standard plans.

Auto Insurance

If you own a car or any other vehicle, you should have an automobile insurance.

In fact, Auto Insurance is mandatory in most of the states. Generally, if your vehicle, particularly a car, is new, the premium for Auto Insurance might be on the higher side as it also includes insurance against theft.

There are various types of Auto Insurance.
The most common and prevalent type of auto insurance includes comprehensive auto insurance, Collision auto insurance, and Under-insured Motorist.

Seeing the rate of accidents, and damage to vehicles it is highly advisable to have an adequate Automobile Insurance.

Accidents can happen anytime, and the results are often quite tragic.

Having an Auto Insurance can protect you against financial loss occurring due to damage to your car, damaging others property in an accident or harming them, as well as cost of treating injuries.

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