No matter what your personal or professional background, there are four types of insurance that are necessary for almost everyone. These include health and disability insurance, home or rent insurance, car insurance, and life insurance. Some of these types of insurance may not apply to you if you still live with family or do not drive, but for most working adults who live on their own, these types of insurance are a must.
Obtaining a health insurance plan is a good way to ensure that health-related costs do not cause major financial hardship for you or your family. Most people get this type of insurance through their own employer, or a spouse’s employer. It is also possible to shop around for a plan on the individual marketplace, either on the federal or state level. When selecting a health insurance plan, it is important to ensure that the plan either partially or fully covers doctor’s visits, routine checkups, prescription costs, and emergency medical care. Disability insurance is also usually offered by your employer, but can be purchased through a marketplace. These insurance plans make sure that you receive additional income if you get hurt and cannot work for either or short or long period of time.
Property insurance is important whether you own a home or rent from a landlord. This type of insurance covers any lost items in a fire, burglary, natural disaster or other weather event. Home insurance offers additional protection in the case of damage to your property, and is often required by your mortgage company. However, most home insurance does not include protection against flood damage, so you may have to look into purchasing an additional plan for flood insurance. Renter’s insurance is often offered for free if you have a plan with a company for auto insurance, making it easy to add to your existing insurance plan.
Anyone who owns a car or drives a car must purchase auto insurance that has at least the minimal coverage required by your state. Besides being a requirement for driving, car insurance also helps reduce the costs of a major accident, minor fender benders, car repairs, and rental car payments. Some drivers may need to purchase high-risk insurance due to past accidents, a DUI conviction, or multiple traffic violations. If you have just started driving, you may also need to look into a high-risk auto insurance plan. Luckily, for those who need it, you can get sr22 insurance quotes online.
Life insurance is another important security measure to have in place in order to keep some of the financial burden off your family members in the case of your death. Usually life insurance plans cover funeral costs at the minimum, while some also include a short term source of income for your family members. You can usually sign up for life insurance through your employer, or purchase a plan with your home or auto insurance company.
Besides these four necessary insurance plans for most adults, there are some other types of insurance that may be necessary depending on your circumstances. Pet insurance can offset some of the costs of your animal’s health care costs. Travel insurance can cover the costs of your vacation if something goes wrong. If any of your insurance plans do not cover enough, you can also purchase supplemental insurance to cover the gaps in your existing insurance coverage. Whichever insurance plans you decide to purchase, it is important to have the basic insurance coverage to offset costs of major life events.