Types of Insurance
grow, and they would pay out a portion of this when there’s a claim. Purchasing the right type and amount of insurance is always determined by your specific need or pocket. Factors such as children, age, lifestyle, and employment benefits play a role when you’re building your insurance portfolio. You can insure almost anything under the sun, but certain things need to be well protected. There are, however, some types of insurance that most financial experts recommend we all have. They are home, life, health, auto, and long-term disability.
• Home Insurance Owning a Home because mortgage financiers - the bank need to know your home is protected before giving you money. It covers you for repairs and replacement of any damage that’s covered in your policy. After all disasters can happen any time. It provides protection against theft, damage from perils like fire and water, and financial responsibility that could result from a visitor or guest being accidentally injured on your property.
• Auto Insurance
If you drive or have the desire of driving on public roads, vehicle repairs could be expensive, health care costs and legal expenses associated with collisions and/or injuries without coverage. Auto insurance is also a legal requirement.
• Life Insurance Provide for your family in the event of sudden death. There are life insurance options for short and long-term needs that protect your family’s home, mortgage, lifestyle and the cost of post-secondary education for children. This could also act as a trust fund to children.
•Health and Long-term
Insurance Maintaining current standard of living if you become disabled or have a critical illness. It covers your day-today costs and larger expenses like your mortgage while you focus on your health and recovery.
This can cover health care costs like prescription drugs, dental care, vision care and other health-related items. Depending on the type of policy.
• Property Insurance If you or your family run a small business or family farm by managing the risks of ownership you need this type of insurance. Get owner, business and employee coverage, and provide group benefits and retirement plans for employees. Property insurance provides financial reimbursement to the owner or renter of a structure and its contents in case there is damage or theft—and to a person other than the owner or renter if that person is injured on the property.
Types of insurance you may not need
While you want to ensure that you’re adequately protected, there are a lot of insurance policies that are unnecessary for most people. Purchasing the wrong insurance— or spending too much on insurance—can do more harm than good.
Types of insurance you may not need can include : mortgage life insurance—sometimes called credit life insurance—cancer or specific disease insurance, and travel or flight insurance. In the case of travel and flight insurance, for example, these may be included as part of your credit card’s travel benefits. Before buying these types of coverage, think carefully about the return on investment you may get.
Most will agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have. Always check with your employer first for available coverage. If your employer doesn’t offer the type of insurance you want, obtain quotes from several insurance providers. Those who offer coverage in multiple areas may provide some discounts if you purchase more than one type of coverage. While insurance is expensive, not having it could be far more costly for you and those around you.