Life is full of surprises – and some of them can be extremely unpleasant. Nothing can do much to ease the emotional pain of a house fire, a robbery, a health emergency, or a death – but insurance can go a long way towards easing the financial pain of those same problems. There are many types of insurance, and all are worth looking into if they’ll cover an important part of your life. But there are four types in particular that apply to almost all people in all situations. These are the types of insurance that you absolutely need to have.
It’s pretty obvious why you need car insurance: it’s against the law to have a car without it!
But that’s not the whole story, of course. You don’t just need car insurance – you need good car insurance. The law requires you to have coverage, but it’s up to you to shop around and acquire insurance that will protect you in the event of a serious crash. There are tons of competing car insurance companies, so be sure to shop around! Car insurance policies differ in important ways, including what’s covered (vandalism, for instance), how much you get back for damage (some companies brag about “full vehicle replacement”) and, of course, rates (check the starting rates as well as policies on how rates are affected by accidents and traffic tickets).
The law requires you to have health insurance – for now. But even if Republican lawmakers succeed in repealing the mandate requiring you to have health insurance, you absolutely should keep it.
That’s because health costs can be catastrophic. If you’re ill now, this isn’t news to you (and you probably won’t drop your health insurance, even if the government lets you). But if you’re healthy, you may feel invincible and may be tempted to drop your insurance.
Here’s the thing: if the law changes and you drop your insurance, you could get unlucky and fall seriously ill. After that, getting affordable insurance can be tough – and while you’re without insurance, you’ll have to pay for pricey things like cancer care yourself. Any law repealing the health insurance mandate is likely to also lower costs for healthy folks, so there is absolutely no excuse to give up your coverage.
Homeowner’s or renter’s insurance
Your home is a massive investment. Until you have homeowner’s insurance, that investment is a risky one.
After all, your home is just a building – it’s at risk of fire, flood, and other dangers that affect structures all over the world. And if one of these disasters takes out your home, you’ll be financially ruined – unless you have insurance coverage. Homeowner’s insurance policies can also cover a wealth of other problems, including liability and damage to items inside your home and even far outside it – riders on policies can cover engagement and wedding rings, for instance, and that coverage may go with you wherever you are.
Not a homeowner? You can still protect what you own. You may not own your apartment building, but that doesn’t mean you won’t lose anything if it burns to the ground. What about your jewelry? Your laptop? Renter’s insurance protects everything within your space (and, as with homeowner’s insurance, can also cover a great deal outside of your home). Renter’s insurance is cheap and well worth the money for most renters.
Insurance is all about preparing for life’s most upsetting (and unlikely) events. An untimely death is something that none of us want to think about, but that all of us should. It’s upsetting to imagine checking out early, but it’s vital to imagine the difficulties your loved ones would face if that were to happen – and to consider ways to make it easier on them. Life insurance is the best way to prepare for the unlikely event of your own untimely death. A life insurance policy will pay out when you pass, giving your family vital support at a terrible time. The extra money can compensate for the loss of your income (if you’re one of your family’s breadwinners) and can help cover funeral costs and other costs associated with the death of a loved one. What your insurance covers and how much it pays will depend on which policy you choose – speak to a brokerage like Our Life Covered to discuss your options. When you have good life insurance, you can rest easy knowing that no matter what happens to you, your family will be provided for and protected.