5 Types of Insurance Everyone Should Have

5 Types of Insurance Everyone Should Have

by Kim Pinnelli
Senior Contributing Writer

June 14, 2020
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Don’t go through life without proper insurance protection. Here are the five areas of insurance you absolutely need in your life.

Insurance protects your most valuable assets against the unexpected. No one likes to think about what would happen if things go wrong, but it’s a part of life. Planning now makes those difficult situations much easier to manage by equipping you with the right protection.

Disability Insurance

What would happen if you could no longer work? It’s not a pleasant thought, but one you must consider. How would you make ends meet financially? Long-term disability insurance helps fill in those gaps when working isn’t a possibility due to an accident or chronic illness, replacing your income during your time of need.

Life Insurance

Life insurance is a crucial component of your estate planning. How would your loved ones manage financially in your absence? Do they rely on you for the daily cost of living? Would your spouse be forced to find a new partner before they are ready in order to continue to provide for your children? Think about more than replacing your income, though. What about burial costs and final expenses? Do you want to leave your family with a legacy? Consider who and what you want to support upon your passing when choosing the right life insurance.

Health Insurance

Health insurance is costly, there’s no doubt about it, but the cost of just one hospital visit can easily be enough enough to set anyone into financial distress. Get coverage that covers the little things, like preventative care and minor procedures, as well as major hospital visits, surgeries, and chronic illnesses. The costs can easily get into the hundreds of thousands before you realize it.

Homeowners / Renters Insurance

Mortgage companies require homeowners to have homeowner’s insurance. What would happen in the event of a natural disaster or theft? What if your house burned down or your roof caved in? Replacing and/or rebuilding your home is likely outside your budget, but homeowner’s insurance helps cover the costs.

Even renters need insurance. While the structure itself isn’t your responsibility, the items inside the home aren’t covered by the landlord’s insurance. Protect your belongings for a few dollars a month and have the protection you need should disaster strike.

Auto Insurance

Most states require auto insurance by law. It shows you can cover the liabilities you cause. You protect more than the car you drive with auto insurance, you protect the other people on the road. If you cause an accident, the damages are your responsibility. One accident can cause immense financial distress if you don’t have proper coverage. Accidents happen quickly and when you least expect it; don’t let yourself get caught red-handed.

Insurance is an important part of your financial planning. It protects you during your time of need. While the premiums eat away at your budget, make room for them, and enjoy the protection they offer. In a perfect world, you never have to use your insurance, but it provides peace of mind knowing they are there should the worst occur. Are you properly protected?

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