Unexpected life situations can hit you, which can be hazardous to your normal life and can shake your financial situation.
In this scenario, having an insurance policy is best, as it will save your assets and help you sustain your financial condition.
There are different types of insurance policies in our society, and these policies are suitable for different situations.
In this article, we will cover five major insurance policies that benefit a lot of people in our society.
Knowing these insurance policies may help you make an educated decision about your financial situation.
So, let’s start with the discussion.
Life Insurance
A life insurance policy is best if you have children, elderly parents, or a spouse who doesn’t work and relies on your income. In this situation, life insurance will save them from any unpleasant financial conditions after their death.
This insurance policy covers the costs associated with dying, such as mortuary or burial fees. It can also help you pay any of your debts or everyday expenses.
Do remember that life insurance policies do have an expiration date. If you pass after the expiration date, your beneficiaries will not receive your death benefit.
In this policy, you should be careful and don’t make any false claims. If the insurer finds any false claims, they will deny your beneficiary’s claims.
Health Insurance
Health insurance is becoming a necessity for every person as unexpected hospital bills or a chronic disease can make a person bankrupt. Hospital visits are becoming expensive and out of reach for many people, so it is best to have this insurance.
It covers hospital bills, surgeries, and routine visits to your doctor. In short, it covers every type of medical bill.
If you think you will need this insurance policy frequently, you should select a plan that has low copays and deductibles.
If you have a family doctor, you can select the plan that helps you sustain that physician.
Homeowners or Renters Insurance
A home is the most valuable asset anyone can have, so having home insurance is a wise decision.
A homeowner’s insurance policy covers your home against any damage, such as theft, and saves the foundation, roof, and walls of your house.
It also covers other aspects, such as costs if someone gets injured in your home.
You need an additional insurance policy to protect your home from natural disasters, so you should also go for it.
Renters insurance protects your items, theft, and liability costs if someone gets injured in your rented apartment or if their items get damaged or stolen from your place.
It covers the expenses if your items get damaged, even your car.
But this insurance policy doesn’t cover extremely valuable assets or if your apartment gets damaged because of pests or a natural disaster.
A renter’s insurance policy is beneficial for you if your apartment is full of valuable assets. But if you don’t have much, this policy is not that beneficial for you.
Disability Insurance
Disability insurance is similar to life insurance in that it helps you cover your income if you become partially or fully disabled.
This insurance policy is optimal for those who have the income to protect and those who have risky jobs. They have long-term and short-term disability insurance policies from which you can choose.
This insurance policy is relatively affordable, and a lot of employers offer it as part of their benefits package.
You should choose the policy that guarantees income replacement. Moreover, a lot of policies require a three-month waiting period before coverage starts.
Automobile Insurance
Automobile insurance is required by a lot of states, which makes it crucial for drivers to have.
This insurance covers liability (bodily injury or property damage to pedestrians), personal injury (medical expenses of the driver and passengers’ injuries), collision (damage to the car in the accident), comprehensive (any type of car damage), and uninsured motorist (someone hits your car and doesn’t have enough insurance to cover your damage).
Wrap Up
In this article, we have discussed five crucial insurance policies that every person should have.
We hope this article has given you enough knowledge about insurance policies and helped you decide which one is best for you.