There are so many insurance policies out there that knowing which ones are good for you can be very much confusing. Fortunately, we have done comprehensive research and settled on these seven types of insurance that most Americans invest in. They include:
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The most basic and, probably, least costly life insurance policy is term life insurance. Under this policy, the insurance company pays your heirs a particular amount of money in the unfortunate event that you pass on within the time frame of the policy. A good example of term life insurance is where you buy, say, an $800,000, 30-year term policy. If you pass on within that 30 years, the insurance agency will give your family $800,000. This money is normally tax-free. Another policy type is permanent life insurance. Unlike term life insurance, permanent life insurance does not lapse, provided you keep paying your premiums.
CDC (Centers for Disease Control) reported in its National Center for Health Statistics that, in 2021, just around 9.2% of the American population was without insurance coverage. Well, this simply tells you how essential health insurance is. This type of insurance protects you from higher medical bills in the event that you become seriously ill or get involved in a life-threatening accident. There are several ways to obtain health insurance. These are through a private insurance company, your employer, or the federal health insurance marketplace.
Long-Term Disability Insurance
A report released by the Social Security Administration shows that, out of four workers that enter the workforce, at least one will become disabled before hitting retirement age. Health insurance only covers hospitalization and medical bills. This means the burden due to being disabled will always lie with you. Most companies today offer both short and long-term disability coverage. Needless to say, this is, perhaps, the best and most convenient way to secure affordable disability insurance.
Car safety has undergone lots of improvements over the past few years. Unfortunately, people still lose their lives in car accidents. According to NHTSA (National Highway Traffic Safety Administration), approximately 31,720 people perished in traffic accidents on the highways and roads of the U.S. in just the first nine months of 2021. Nearly all states in the U.S. require that drivers have auto insurance. And, even the few that do not make this mandatory, normally hold drivers financially responsible for any injuries or damage caused.
Homeowners’ and Renters’ Insurance
Homeowners’ insurance protects against partial or complete damage to your home. It covers the content of the damaged home as well as the funds required for accommodation while your home is undergoing repair. Homeowners’ insurance is just as important as other insurance types we have already discussed here. That is because buying a home is one of the major milestones in our lives. Renters also need coverage to help protect their possessions. However, before you get homeowners or renters coverage, make sure the policy you plan to pick covers the amount it would take to rebuild your home or the amount you paid for the home.
Statistics show that, as of 2022, 70% of U.S. households owned a pet. Well, this is the equivalent of approximately 90 million homes. With pet ownership increasingly becoming popular, the need to go for pet insurance if you have a dog or cat cannot be emphasized enough. It is safe to say that a pet insurance policy is similar to human health insurance. That is because, like human health insurance, pet insurance covers the general health of pets. It gives pet parents peace of mind knowing that the vet bills and medication of their pets are covered.
You can get a liability insurance policy from reputable insurance agencies like Concord Group Insurance. This policy covers accidents, which may occur at your home. In most cases, it is attached to the homeowners’ insurance policy. A good example of liability insurance is when a house guest gets burned in your kitchen. If you are found liable for the accident, liability insurance will cover the medical expenses of the injured guest. Liability insurance also often extends to accidents, which involve you, the homeowner, but take place outside the home. For instance, if your dog escapes from your yard and, due to fear, bites the neighbor, liability insurance will cover the injuries.
The above seven types of insurance policies protect against financial setbacks. That is why you need to invest in as many as you can. Death, life-changing accidents, damage to property, and disability are very hard to bear both emotionally and financially. That is why you should seriously consider the above insurance policies.