It’s possible to find an insurance policy to cover almost anything you can think of, but which insurance policies to you really need to get? The purpose of insurance is to protect your possessions and your income, and provide for your family when you are no longer around or cannot, but what policies are absolutely essential?
The most important insurance to get is health insurance. Without it, you and your family face insurmountable medical bills in the event of a serious illness or an accident. You could find yourself in a great deal of debt, or even unable to seek the treatment that you or a loved one need to get well. Fortunately, most employers offer health benefits to full-time employees; some even provide this option to part-time workers.
Health insurance through your employer is usually the least expensive option, and you can insure that your entire family is under your employer’s plan. If your employer doesn’t offer health insurance benefits, or if you’re self-employed or unemployed, you might be daunted by the prices of private health insurance. However, consider the cost of a hospital bill without insurance; it can cost thousands of dollars a day. Weigh the potential for financial ruin against the monthly cost of private health insurance and you will see it’s importance.
Life insurance is of utmost importance if you have a family. While you’re alive, you are able to work and provide for your family, but if something should happen to you, the gap in the income could put your family into major financial straits. The costs of a funeral are prohibitive, not to mention the fact that your family is now without your annual income.
At the least, life insurance should cover the basic funeral expenses associated with your death and provide a little cushion for your family to get back on their feet, and at most it can replace the income that is now gone from their lives. Check with your employer to see if they offer any type of life insurance, but if they don’t, you can easily find the life insurance plan that will best suit your needs and your financial ability from an independent insurer.
Property insurance is mandatory for any homeowner who procured a loan from a bank to purchase their home; the bank will insist that their asset be insured properly. Many mortgages have the insurance premium built into the monthly mortgage payment, so it’s scarcely noticeable to the homeowner. If you are renting property, a renters insurance policy is vital.
All of your belongings inside the home can add up to a lot of money, and if disaster should strike in the form of burglary, fire, or flood, you should have adequate coverage that can cover the majority of the cost of replacing your possessions.
Most states will require you to have some form of auto insurance. The state only requires you to have the most basic coverage, but people still drive without it. Your automobile is probably one of your most expensive possessions, so it’s wise to ensure that you can repair or replace it if it’s damaged. Auto insurance will help you do just that.