Insurance policies everyone should have

Insurance is something everyone needs but hopes to never use. Without insurance, already difficult situations could be made much worse and cause financial devastation.

Certain types of insurance may not be necessary for everyone, but other types are almost universally necessary regardless of the policy holder’s particular situation. The following are some examples of insurance policies everyone should have.

Health insurance
Everyone needs health insurance. The out-of-pocket costs for routine medical examinations can be quite high, and testing, hospitalization or surgery can take quite a toll on a person’s finances if he or she has no health insurance. In fact, a recent Harvard study noted that most people are statistically one serious illness away from bankruptcy. Shopping around for adequate coverage and the most affordable plans for one’s situation is essential, as even minimal coverage is better than nothing when it comes to offsetting the rising costs of health care.

Life insurance
Life insurance is something most people will never benefit from personally, but it leaves a financial legacy for the people they love, providing for those they leave behind. Parents or men and women who are the sole breadwinners in the household can rest easy knowing their life insurance will keep their loved ones financially secure in the event of their death. According to the financial resource Investopedia, individuals need to factor in mortgage or rent payments, loans, funeral expenses, child care, and taxes when calculating how much life insurance coverage they need. Experts suggest 10 times one’s yearly income.

Disability insurance
Many people do not believe they will become ill or injured. But the statistics speak otherwise. Data from the Social Security Administration show that three in 10 workers entering the workforce will become disabled before they reach retirement. Being off from work anywhere from a few weeks to a few months is enough to jeopardize one’s financial future. Short- and long-term disability policies provide partial and complete income replacement depending on the policy chosen.

Auto insurance
People who drive are urged to have auto insurance to protect themselves in the event of an accident or theft. Auto insurance also helps protect against any litigation as the result of accidents when a passenger or other driver is injured.

Insurance is a wholly necessary expense that provides peace of mind and protection.

Author: Rachel Howell

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