General by Lizzie W August 24, 2022
No matter who you are, insurance is essential to have in order to be prepared for the many different life events and potential accidents that can do a serious number on your finances as you try to recover. Whether it’s that you were involved in a collision or need emergency home repairs due to a disaster, having various types of insurance coverage assisting you means that there’s financial assistance ready and waiting to get you back on your feet.
That being said, there are a lot of different types of insurance policies out there. Some of them are more uniquely tailored to specific walks of life, meaning they’re not necessary for everyone to have. The ones listed below, on the other hand, are more geared towards being ones everyone should have as soon as they’re financially responsible for themselves.
Many people don’t give a lot of thought to life insurance when they’re younger, but it’s necessary if you’re the primary breadwinner in your family or are no longer on your parent’s policy. Life insurance will provide your family with a lump sum of money in the event of your death to ensure they’re cared for and don’t have to worry about paying their bills if you’re no longer there to provide for them. It can also help towards funeral costs, meaning that even if you don’t have dependents relying on you, you can still make the financial burden less on those tasked with making your burial preparations. Younger adults in good health can obtain cheaper life insurance policies instead of waiting until you’re in your 50s or 60s to get life insurance, which is always a plus for your bank account and budget.
No one expects to get into a serious and life-changing accident or suffer from health issues that can cause them to become disabled, but it can happen to anyone. Should this be the case for you, it can be difficult to work if your health or physical well-being declines while you’re still expected to be operating in a way you just physically can’t anymore. Having disability insurance available can offer peace of mind that you can continue living in your home even if you aren’t capable of having a job due to physical limitations.
Homeowner’s insurance is crucial for preparing for potential accidents or disasters that cause damage to your property. Lenders require borrowers to obtain homeowner’s insurance, which covers floods, damage caused by natural disasters, and accidents. Home insurance also protects your main structure and can also protect you from potential lawsuits if a visitor or guest is injured on your property. If your home is in a disaster, having a homeowner’s insurance policy means that it covers the cost of replacing the home’s contents and is fairly inexpensive to purchase.
If you live in an apartment or are simply renting the home, the equivalent of homeowner’s insurance would be to have renter’s insurance. This is a safety net should your property be damaged while living in the rented space. For example, should the pipes begin leaking in the bathroom and everything you have stored under the sink is damaged, you’ll be able to replace everything you’re unable to salvage.
Auto insurance is required to have if you own a vehicle since it’s used to cover the cost of damages if you’re responsible for causing a collision that involves other motorists. Auto insurance will also cover the costs of repairing or replacing your vehicle should you not be the one at fault, as well as any medical expenses you accumulate due to the accident.
There are a couple of different types of auto insurance that you need to have, all of them serving a specific function when it comes to covering what could happen on the road. There’s auto liability coverage, which is meant to protect you should you be the one at fault in a collision or other form of car accident. This is the coverage that pays for medical bills and repairs to the other party’s vehicle. There’s also uninsured and underinsured motorist coverage, which is what will help pay your bills should the driver at fault not have any insurance or the right kind of insurance to pay for it themselves. This way you don’t have to suffer because they can’t pay to fix the damage that was caused. Collision coverage can also be used to help pay for repairs or replacements regardless of who’s at fault, while comprehensive coverage will pay to get your car repaired or replaced should it be damaged or stolen through any other form of accident.
Lastly, there’s also medical payment coverage and personal injury protection. These are the forms of coverage that can help pay with medical bills should you and any passengers be injured in a crash, as well as other bills that may have been incurred as a result. This way you don’t have to worry about how you’re going to pay to be able to heal, you can just focus on recovery and what to do once you’re well enough to begin working on recouping any losses you may have suffered as a result.
Obtaining additional insurance policies can allow you to get through different challenges and events in life where the cost of paying for help will be high. Insurance can prevent you from accumulating a significant amount of debt and will cover a portion of the full amount of different expenses to ensure you can maintain your lifestyle and recover without it affecting your personal finances.