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What kind of insurance do I need
9 Jul 2018

What Kind of Insurance Do I Need? 5 Plans You Should Have

Are you prepared for the cost of an accident or illness?

With so many different types of insurance, it’s hard to know which ones to take seriously and purchase a policy for. Out of pocket costs for medical bills and car and home repairs will almost always be more expensive than what you’d pay if you had a policy.

Been scratching your head wondering, “what kind of insurance do I need?”. Well, we’ve laid out a guide below to help you navigate the most important policies to have in order to protect yourself and your loved ones.

Health Insurance

This one should no doubt be at the top of your list when considering what kind of insurance to get. Medical bills can be outrageous, making the ability to pay out of pocket for services nearly impossible. Each year, more American’s than ever claim medical expenses as the sole reason they were forced to file for bankruptcy.

The statistics are staggering; more than 60% of bankruptcies in the U.S. are caused by a lack of health insurance and skyrocketing medical bills. Health insurance is important whether you visit the doctor for a yearly exam or suffer from a serious medical condition that requires regular treatment.

Without insurance, a routine doctor visit can run you hundreds of dollars or more. Doctor’s offices are trying to get the most money possible from an insurance company so they jack up the prices, making them unattainable for anyone who isn’t covered.

Depending on how frequently you’re seeking medical attention, aim for a plan with a low deductible and a reasonable co-pay which will typically be due at the time of service. If you already have doctor’s you know and like, make sure they take whatever insurance you select so you won’t have to find a new physician.

Shop around. Get quotes from several insurance providers, even at different levels of coverage to see what your options are and what you can afford. You may be surprised by how affordable a plan is compared to what you’re already paying out of pocket every time you head to the doctor.

Life Insurance

It’s not a pleasant thought or an easy decision to make, but life insurance could be the thing that keeps your family afloat should you pass away.

When someone passes, keep in mind there are expenses associated with the death. Your family or loved ones will have to pay for funeral arrangements and more importantly, continue living their own lives as comfortable as possible.

If you contribute significantly to your family’s income, you’ll want to consider a life insurance policy to make up for the loss of money should you no longer be around. Think about the kind of hardship or lifestyle changes your loved ones would have to go through if you didn’t provide them with a safety net.

A life insurance policy will allow your loved ones to access funds and pay for necessary items when you’re gone. Many times, it is the only thing that allows them to keep the same quality of life you were once provided for them.

To determine how large of a policy you should purchase, consider what the annual household income is and what would be missing from that pot should you pass. Consider a plan that fills the missing gap for the minimum of a year, but preferably more if it’s a policy you can afford.

When it comes to life insurance, the younger you buy it the better. Policy’s for younger people in good health are significantly less expensive and will allow you to purchase a larger policy for a lower monthly or quarterly payment.

Car Insurance

To put it simply, if you don’t have car insurance, don’t drive. It’s no longer an option anymore, as 48 states now require every driver to be insured. If you get into an accident, especially with another vehicle, the out of pocket rates for damage and bodily injury will be high.

Remember that if you or someone else is injured in the accident you’re not only covering costs for the damaged vehicle or property, but you’re now paying out of pocket for medical bills which as we discussed earlier, won’t be cheap.

There are several plans with different tears. You might want to consider liability, personal injury, collision, and even insurance to protect yourself if you’re involved in an accident with an uninsured driver.

The last thing you need is a lawsuit on your hands which is likely what will transpire should you become involved in an accident without insurance. Keep in mind that this goes for any kind of vehicle you may be driving. Just because your car is old and paid off does not mean you should forgo insurance.

Disability Insurance

Things can change in the blink of an eye. Be prepared with disability insurance which will cover you for any time you’re out of work due to an injury or illness.

Anything from a broken ankle to a serious medical condition could take you away from your job. If you find yourself unable to work for a period of time, it’s comforting to know you will still have money coming in.

This type of insurance is a good idea for sole breadwinners of a family or a single person who lives alone. Anytime you or someone you love is depending on your income, disability insurance is a smart idea.

Homeowner’s or Renters Insurance

Whether you rent or own the place you live, insurance is important.

Renter’s insurance can cover you from theft or damage to items inside your home. If you have valuable items like jewelry, art, clothing or expensive furniture or stereo equipment, renters insurance will reimburse you a portion of the value of the items that are damaged or stolen.

When it comes to home owner’s insurance, you can expect more protection since you’re responsible for the entirety of the home and not dealing with a landlord who can cover repair costs.

Homeowners insurance can cover you for items that are stolen or damaged from inside the home as well as actual damage to the home itself. If your roof caves in or a pipe bursts, don’t front the money out of pocket. This is where the insurance policy kicks in.

Been Wondering, “What Kind of Insurance Do I Need?” Now You Know!

As always, it’s better to be safe than sorry. If you’ve been asking yourself, “what kind of insurance do I need?”, look no further. Check out some of these key policies that can help you save major money should an accident, illness or damage occur.

We’d love to help you improve your financial situation and explore your options. Contact us today and be sure to check out our blog for more tips.