info@insuranceorg.com

Different Types Of Insurance And Why Do You Need Them

Insurance comes in a lot of different boxes, with many different labels. For someone who’s just beginning to think about buying a package, it can all seem pretty overwhelming. Not to worry, though. The jargon makes it look a lot more complicated than it is.

Here is a simple guide to get you through all the basic types and help you make a decision. Remember, no type of insurance is better or worse than any other. It all depends on your needs and requirements. So pick whatever works best for you.

Overall, there are a few regular insurance types that anyone can benefit from. These include:

  • Health insurance
  • Car insurance
  • Homeowner’s or Renter’s insurance
  • Life insurance
  • Disability insurance

There are also other types of temporary insurance packages that you may need to purchase depending on your activities. For example,

  • Travel insurance

Health Insurance

Health insurance is one of the most important types of insurance. It covers all of your basic medical expenses like routine doctor’s appointments or emergency surgeries. People think they can hold out on purchasing health insurance until they actually need it. But, this never works out.

You don’t know when you’ll need emergency care, from accidents to fracturing an arm. And if you were to develop a serious medical condition, you would find it near impossible to find a company to cover you. 

A lack of health insurance leads to over 60 percent of yearly American personal bankruptcy cases. People with chronic illnesses find it difficult and expensive to get health insurance. 

Car Insurance

There are multiple types of car insurance. Here are the most common.

  • Liability- covers bodily injuries to pedestrians
  • Personal Injury – covers injuries of driver and passengers
  • Collision – covers damage to the car during an accident
  • Comprehensive – covers damage to the car during accidents and other conditions, like vandalism, or a tree falling
  • Uninsured motorist – covers car damage if hit by a person without insurance

Different states have different requirements for mandatory insurance.

Homeowner’s or Renter’s Insurance

Homeowner’s insurance protects you in case of damage or theft, including valuables and vehicles. This includes repairs to the foundation, roof, or walls. Though it may not extend to natural disaster situations like floods or earthquakes. It also covers liability in case someone was injured in your apartment of their belongings stolen. 

Renter’s insurance is similar but puts a cap on the maximum amount, so valuable items aren’t covered. You should consult your insurance provider for the details.

Life Insurance

Life insurance reimburses the family of the deceased. This includes funeral and burial costs, settling of debt, mortgages or loans. It also helps your family manage basic expenses if you were the primary breadwinner. Life insurance is extremely important for people with young children. Experts suggest taking out insurance for around ten times your yearly income.

Disability Insurance

Disability insurance is meant to reimburse you such a situation where you become critically injured and are unable to continue working. Most people put off purchasing this type of insurance because they think it unlikely they will face such a situation. Yet statistics show one-third of people become disabled before retirement. You should look up the statistics for your field or profession before making a decision.

It is important to remember that your employer is responsible for providing a lot of these types of insurance. You should find out the specifics of what you are receiving through your workplace and then explore external options.

ใส่ความเห็น

อีเมลของคุณจะไม่แสดงให้คนอื่นเห็น ช่องข้อมูลจำเป็นถูกทำเครื่องหมาย *