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4 Types of Insurance Everyone Needs

Types of Insurance Everyone Needs

Life comes with many unforeseen circumstances that could go a very long way to affect us. However, the smartest always makes an advanced preparation for that moment which may or may not come.

And that is why you need to know about some insurance that everyone needs.

Some insurance ain’t meant to drain us of our cash. Mostly, insurance is meant to safeguard us, at least financially, should certain things happen. Some financial experts believe strongly that some insurance must be subscribed to because they go a long way to help.

Purchasing the right type and amount of insurance is always determined by your specific situation. You need to think of factors like children, age, lifestyle, and employment benefits as all these play a role when you’re building your insurance portfolio.

There are, however, four types of insurance that most financial experts recommend we all have at all costs especially when you are living in the United States or anywhere in the developed world.

Such insurances are:

  • Life
  • Health
  • Auto/Car
  • Long-term disability

Let’s take a look at all the insurances as stated above:

1. Life Insurance:

One of the best benefits of life insurance is its ability to provide for people you leave behind and as well cater for your funeral expenses. If your family feeds solely on your income, then there is the need for you to rush down and subscribe to this insurance.

Some experts suggest that when going for an insurance policy, you need to opt for one that covers 10 times your annual income – as that is the best policy.

When you are thinking of enrolling in life insurance, remember to put into consideration your daily living expenses nit only funeral expenses. Such daily living expenses include; mortgage payments, outstanding loans, credit card debt, taxes, child care, and future college costs.

Life insurance comes in two forms. These are traditional whole life and term life.

The whole life insurance can be used as an income tool as well as an insurance instrument. As long as you continue to pay the monthly premiums, your whole life covers you until you die.

Term life on the other hand is explained as a policy that covers you for a stated amount of time.

Before enrolling in any of the two, you need to seek expert advice.

2. Health Insurance:

With the increase in the rate of bankruptcy being filed by most families in the United States as a result of illness, it is just a good plan to have life insurance. Although health insurance has somehow become expensive for the average to afford, the minimal one would still do them good than bad.

According to experts, the best and least expensive option may be participating in your employer’s insurance program, but many smaller businesses do not offer this benefit. The average annual premium cost to the employee in an employer-sponsored health care program was $7,188 for single coverage and $20,576 for a family plan in 2019, according to research published by the Kaiser Family Foundation.5

It is very crucial to try to have health insurance in any possible way as the future isn’t known. In the long run, it would be of good benefit should your health deteriorate.

3. Long-Term Disability Coverage:

The Long-Term Disability Coverage insurance policy is the most disregarded in our time. Many people believe they would never need this but according to statistics pulled by the Social Security Administration, one out of four people entering the working force would become disabled and hence not be able to work before they reach retirement.

So you see why you need this insurance?

Some who even have good work health insurance still don’t prepare for the day they will be disabled. While health insurance pays for hospitalization and medical bills, you’re still left with those daily expenses that your paycheck generally covers.

Some employers add up the Long-Term Disability Coverage insurance policy to their package for their employees, if that is your case, then you are definitely in the lucky field. If you happen to be a private worker, then prepare for the unforeseen circumstance by having this insurance.

Most of the time, policies payout 50% to 60% of your income when you subscribe to it. The cost of disability insurance is based on many factors, including age, lifestyle, and health.

The average cost is 1% to 3% of your yearly salary. Before you join them, make sure you read their fine prints to know your stands. Many plans require a three-month waiting period before coverage kicks in, provide a maximum of three years’ worth of coverage, and have some significant policy exclusions.

We entreat you to be part of this insurance.

4. Auto Insurance:

An estimated 20,160 people were killed in traffic crashes in the first six months of 2021, which is 18.4 percent higher than the 17,020 road fatalities recorded in the first half of last year, according to statistics released by NHTSA – This was reported by The Hill.

This raises a big concern about joining Auto Insurance so as to be covered should you fall under the accident category.

While not all states require drivers to have auto insurance, most do have regulations regarding financial responsibility in the event of an accident. States that do require insurance conduct periodic random checks of drivers for proof of insurance. If you do not have coverage, the fines can vary by state and can range from the suspension of your license to points on your driving record to fines from $500 to $1,000.

If you drive without auto insurance and have an accident, fines and their associates will be solely your individual burden. If you have insurance, however, it will aid cover most of your expenses.

Insurance as well protect your car from vandalism, natural disasters such as earthquakes, hurricanes, etc. Also, theft is included in auto insurance coverage.

Payment for your auto insurance depends on the type of car that you own and other factors. In making an informed decision on the best auto insurance, you need to make thorough research on the web or consult an expert before making a move.


Here are the best insurance companies in the US of 2021.

What do you think?

Written by Gustavo Franko

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