4 Types of Insurance and Why You Need Them

It’s possible to find insurance policies that will cover nearly anything you can imagine, but some of them are a bit more deserving of a place in your budget. You work very hard to build your wealth and to live a life that’s both comfortable and happy, and the insurance you have needs to give you protection for your loved ones, income, and possessions. As you’re mapping the future of your finances, take a good look at the following types of insurance.

Auto Insurance

Auto insurance is something that’s required in all 50 states if you own and drive a vehicle. Most of the states just require liability insurance but if you’re still paying for a vehicle, you might also need to carry collision coverage. The difference between the two is that in the event of an accident, liability insurance will cover any damages to other vehicles involved but collision will cover any damage your vehicle sustains. An easy and fast way to find the right policy for you and your vehicle is to simply find car insurance online and go from there.

Renter’s Insurance

If you’re buying a home, you’ll need to have homeowner’s insurance. But, if you happen to be renting, a policy for renter’s insurance is equally as important. This type of insurance covers your belongings that are inside your abode and together, those belongings might add up to quite a bit of money. If there happens to be a burglary, disaster, or fire, you need to have a policy in place that will cover most of the cost of replacing those belongings. It can also protect you against any type of personal liability in the event that someone is injured while in your home.

Health Insurance

This is easily one of the most critical types of insurance you need. Having good health is what allows for you to work, earn the money you need, and enjoy your life. If you happen to develop a serious health condition or have any sort of accident and don’t have any insurance, you can find yourself without being able to be treated or to pay for prescriptions and/or doctor bills. Even though this type of insurance isn’t mandated by the government since 2018, it still isn’t something you should be without.

Life Insurance

If you happen to be married and/or have any kids, a life insurance policy is important. That isn’t to say that it isn’t for single people too though. This type of insurance can actually meet a few of your needs financially. If you’re someone who’s married and has a family, you can use it to replace any income that’s lost, to assist with paying for any debts that might linger past your death, or even pay for a college education for your kids. If you’re a single person, it can be used to pay for any funeral costs and bills that you might leave behind.

There are several more types of insurance out there, but these are the basic 4 that everyone should have at all times.