What Type Of Insurance Do You Really Need

Insurance helps you manage your risks. If you’re living in the US, there are four types of insurance that you must have.

Health Insurance

Health is wealth. You can live without good wealth, but not without good health.

The health care bill in the US can be daunting. You can go bankruptcy just for a serious illness. And thus health insurance is the most important type of insurance you should have.

Before you buy a health insurance, check with your employer if they’ve got it covered. The insurance alone is quite a cost for many. 

For those who couldn’t afford regular costs of medical care, you can go with the Short Term Health Insurance, or the Hospital Indemnity Insurance. They could cover for some of the costs.

Life Insurance

The difference between life insurance and others is that it covers for your death, including your funeral and the ones you left behind.

Many people don’t like to talk about this, and they don’t think this could happen to them. It sounds unscrupulous but life happens.

The average funeral costs between $7,000 and $9,000. And you need to have life insurance if you don’t want your family go in debt just by burying you.

Experts suggest a life insurance that covers 10 times your yearly income.

There are two basic types of life insurances, Term Life Insurance and Whole Life Insurance.

A Term Life Insurance usually has a set amount of time, 5-30 years. When you die within the term, you’ll be covered by the insurance.

A Whole Life Insurance, on the other hand, covers you until you die, as long as you continue to pay for it. You can decide the right type of life insurance for you.

Disability Insurance

Again, no one would want accidents to happen to themselves. But according to the Social Security Administration, 30% of workers entering the workforce end up disabled before retirement. Just in the previous 10 minutes, 498 Americans became disabled unfortunately.

Even if you got health insurance, it can only cover for you medical costs. You still need to cover for your daily expense. There are Short-Term and Long-Term Disability Insurance, and many employers offer both. If you need to buy insurance on your own, make sure the policy guarantees the best income replacement for you. 

Auto Insurance

If you own a car in the US, an auto insurance is indispensable. 

On average, there are 6 millions car accidents in the US, on the record. Each year, about 40,000 people died of car accidents, and 2 millions became permanently disabled.

In the event of an accident, if you do not have coverage, the fine can be $500-$1,000 depending on the states. If your car gets stolen, or hit by a fallen tree, or somehow damaged, an insurance can cover for repair or replacement.

Conclusion

These are the four basic types of insurances you need in the U.S. Before you buy any of them, check with your employer first to see if they got it covered. 

The purpose of having insurances is to cover for the risks you might face in the future. You can go with the optimal plan that you can afford.