Insurance Basics: What You Need to Have
The purpose of insurance to make sure there’s money to pay for things that you would normally be unable to pay for yourself. You have health insurance to make sure that any major medical procedure that you would need is covered. You have life insurance to take care of your family in the event of your death and car insurance to repair your vehicle in the event of an accident. Of course, there are plenty of gimmick insurance policies that aren’t worth the paper they’re written on, but some insurance policies are a must.
Here are the basic types of insurance that you should have:
Life Insurance – If you have family members that depend on your income to survive, you need to have life insurance to replace that income in the event of your death. Get a good 20-year or 30-year level term policy to protect your family. Get many term life insurance quotes to get the best deal.
Car Insurance – You are required to have some form of basic car insurance in just about every state, but you want to make sure that you get the appropriate level of insurance for your vehicle. It’s better to get higher levels of liability coverage and full coverage if you have a vehicle that you can’t afford to replace with cash.
Long Term Disability Insurance – You’re six times more likely to be disabled than you are to die before age 60. Most people go without long-term disability, but it’s an absolute must to protect your-self. Short-term disability is much less necessary, especially if you have an emergency fund in place.
Home Insurance or Renter’s Insurance – Make sure to get a good policy to protect your home or your possessions in your apartment. This will protect you in the event that a fire destroys your home or apartment or if some other natural disaster brings damage to your home or your posessions.
Long Term Care Insurance – If you’re at least sixty years of age, you need a good insurance policy to take care of nursing home fees. 69% of people over the age of 65 will spend some time in a nursing home, which can costs tens of thousands of dollars each year.
Health Insurance – Health insurance is perhaps the single most important form of insurance to have. Many people get health insurance from their employer, but if you don’t, it’s not something that you can skip out on. Health insurance is an absolute must for you and your family.