Things happen that we don’t plan for, and when these incidents arise it’s always better to have something to fall back on. That’s the whole point of insurance—making contingencies for the future.
Fortunately, there are seemingly endless insurance options available today. But there’s no one-insurance-for-all package and you’ll need a couple of insurance packages to be fully covered for when life happens. But which insurance plans are necessary and how do you choose? Here are four insurance types that are must-haves.
One of the most important types of insurance for people to have is health insurance. Healthcare costs are higher than ever and having the right health insurance can help reduce the financial burden that comes with doctor visits, trips to the emergency room, and procedures.
Even if insurance doesn’t cover certain things, like specialists, it can still help avoid extensive medical bills. Without insurance, even a small procedure can leave you with thousands of dollars worth of medical expenses.
It’s important to note that not all health insurance is created equal—people often have different healthcare needs, which is why there are so many insurance options. If you’re looking for a policy to provide coverage while you wait to get insurance from a new employer or need an insurance plan to cover treatments for just a few months, you may want to consider temporary health insurance.
Investing in a short-term insurance plan can be beneficial for a lot of people. These plans offer more flexibility, you’re able to enroll whenever you need to, and it’s often more affordable than traditional policies.
Anyone who owns a car is legally required to have some type of auto insurance—but the type of insurance you get is up to you. There is basic auto coverage that will cover damage from accidents and you can add on additional coverage, like collision, that will help pay for additional damages if needed.
Auto insurance will not only help cover repairs from accidents but will cover damage you may cause to another vehicle, which will oftentimes help prevent a lawsuit.
Life insurance is usually something people start to think about when they get married and start a family—this type of insurance is designed to financially protect your loved ones when you die. A life insurance policy can ensure family members are taken care of and can even help cover burial and funeral costs, which can be extensive. So while most younger people don’t have to worry about getting life insurance, it’s certainly something to consider as you age.
Lenders Mortgage Insurance
When you buy a property and are not able to pay a large down payment, you may be asked to pay for something called lender’s mortgage insurance. If you’re asking yourself, “what is lender’s mortgage insurance?” you’re not alone—many homebuyers don’t know about or fully understand the lender’s mortgage insurance.
This type of insurance is in place to protect the lender, like a bank or private lender if the borrower is not able to make mortgage payments. While this insurance may seem unfavorable, it actually helps people buy homes who may not otherwise qualify for a loan. So if you’re someone who is trying to buy a house but can’t afford the down payment, make sure to ask about lender’s mortgage insurance options.
There are so many different types of insurance available today and it’s important to invest in all that you can—life doesn’t always go as planned and having insurance, whether it’s health insurance or lenders mortgage insurance, can help protect you and your finances.