No one ever plans and wishes on getting sick or injured, but it happens all the time. The CDC indicates that 1 in 4 Americans will experience a severe health problem each year. How will your family survive if something happens and you can’t work? That’s where insurance comes in. There are many different insurance policies available, and it can be hard to know which ones you need. Here are five types of insurance plans that are essential for protecting your family’s livelihood.
Health Insurance
Apart from covering the cost of medical care, health insurance also helps pay for prescription drugs, mental health services, and more. If you don’t have health insurance, you could be responsible for tens of thousands of dollars in medical bills if something happens.
Types of health insurance include:
- Private health insurance: This is insurance that you buy from a company. You usually have to pay a monthly premium, and you may also have to pay a deductible, co-payments, and coinsurance.
- Public health insurance: This is insurance that is provided by the government. In the United States, examples of public health insurance include Medicare and Medicaid.
- Short-term health insurance: This type of insurance provides temporary coverage if you need it for a few months. It can be helpful if you’re between jobs or waiting for your employer’s health insurance to start.
Tips on getting Health insurance
- The best way to have health insurance is through your employer.
- You can purchase an individual policy through the Health Insurance Marketplace if you’re self-employed.
- You can also get coverage through a government program like Medicaid or Medicare.
Disability Insurance
If you become sick or injured and can’t work, disability insurance will replace a portion of your income. This type of insurance is essential if you don’t have much savings.
According to the Social Security Administration, nearly one in four 20-year-olds will become disabled before retiring. And yet, less than 40% of Americans have disability insurance. If you don’t have this coverage and something happens, you could struggle to make ends meet.
To get disability insurance talk to your employer. For self-employed, you can purchase an individual policy. You can also get coverage through a government program like Social Security Disability Insurance (SSDI). For self-employed, you can deduct the cost of your premiums from your taxes.
Life Insurance
No one loves to think of their death, but it’s essential to have life insurance in case something happens to you. If you have young children, a stay-at-home spouse, or significant debt, life insurance can be a financial lifesaver for your family.
The common types of life insurance are term life and whole life. Term life insurance covers you for a set period (usually 20 or 30 years), while whole life insurance covers the entirety of your life.
Tips for Getting Life Insurance:
- When shopping for life insurance, it’s essential to get quotes from multiple companies and carefully compare the policies. Be sure to ask about riders, which are additional features that can be added to a policy for an additional cost.
- You should also consider your financial needs when choosing a policy. For example, if you have young children, you’ll likely need more coverage than someone single with no dependants.
Homeowners Insurance
You need to have homeowners insurance to protect your property from damage or theft if you own a home. Homeowners insurance also covers liability in case someone is injured on your property.
For instance, flood insurance in Utah and other flood-prone areas is a must-have in certain regions. If you live near the mountains, this type of coverage can help protect your family against snow-melt, landslides, and more.
You should also consider:
- the value of your home,
- the amount of coverage you need,
- any deductibles or co-payments.
Auto Insurance
Auto insurance helps pay for repairs to your car if damaged in an accident. It can also help cover the cost of medical care for you or your passengers if you’re injured in a car accident.
Most states require auto insurance. However, the amount of coverage you need will vary depending on where you live.
Be sure to shop around for auto insurance and compare rates from multiple companies before you purchase a policy.
You should consider the coverage type you need and whether you want to add additional features like roadside assistance.
We all know we need insurance but are often put off because it can be expensive and confusing. But as this blog post outlines, many different types of insurance are essential for protecting your family’s livelihood. Talk to your agent today about which policies are suitable for you and your family. Please don’t wait until it’s too late to get the coverage you need.
