- January 15, 2021
- Posted by: admin
- Category: Uncategorized
Insurance is an agreement between the policy provider and the purchasers, in which the purchaser receives financial protection from the insuring company if they experience any loss.
Here we’re stating 5 types of insurances and why you might need them:
1. Auto insurance
Car insurance is a bare necessity because thousands of cars are stolen every year or are involved in car accidents leading to disability injuries and deaths.
In case an accident causes any injuries to the drivers or the passengers, the auto insurance will help you cover the costs and defend you against any lawsuits arising as a consequence of the accident. Additionally, auto insurance covers your car from theft, vandalism, or any natural catastrophes.
2. Home and apartment insurance
Any home or apartment owner needs homeowner’s insurance as it’s a valuable asset and often a mortgage lender requirement. It covers the building’s foundation, walls, roof, and other valuables and personal belongings within.
If you wish to rent out your property, you could also consider getting renters insurance to cover any damages or deal with theft cases.
3. Health insurance
You and your family need to have health insurance in today’s day and age to safeguard your life and money. Income loss due to illness and medical bills is one of the leading causes Americans file for bankruptcy.
Health insurance offers extensive coverage for the expenditure on medical care. Employers often provide their employees with health insurance, but you can purchase one privately if this isn’t the case for you.
Similarly, you can also sign up for dental insurance if your health insurance doesn’t offer coverage in that area.
4. Disability insurance
Long-term or short-term disability insurance guarantees to replace your income if you can’t continue working before the age of retirement due to a disability caused by accident. It can either be provided by or purchased via your employer.
Nonetheless, the insurance policy only pays a percentage of the monthly wage you earned before becoming differently-abled. The range for a long-term disability policy is nearly 40 to 60 percent of the base salary compared to a short-term disability policy that offers 60 to 70 percent of the base salary.
5. Pet insurance
In case you own any pets, you must get them insured because vets charge exorbitant rates for treatments of their health issues. The policy is often reasonably priced when the pet is young. The accident only policy for pets pays out if your pet has been hurt in an accident.
In contrast, the accident and illness policy offer extensive coverage for any illnesses developed after an accident. You can also combine these two into a comprehensive insurance policy covering routine checkups, accidental care, and the treatment for unforeseen diseases.