Insurance happens to be one of those odd things that people buy and then hope that they never need to use it. The type and amount of insurance that people need vary depending on their situation in life and personal preferences, however, there are certain types that nearly everyone needs. Today, we’re going to talk about a few of them.

Life Insurance

In a nutshell, life insurance is something that only pays out when you die. The question is whether you need term vs whole life insurance. Term life insurance is a type of life insurance that is good for a set period of time. Whole life insurance will cover you for as long as you continue making the payments on the premium. Both are mainly meant to help those you leave behind to deal with expenses following your demise. 

Disability Insurance

If you become injured or are too ill to work for months on end, disability insurance is a type of insurance that will pay you in an effort to assist you with bridging the gap until you recover. For those who’ve been in the workforce for a while, you do have a type of disability insurance that’s through the American Social Security Administration. This isn’t like a private policy, however, and is difficult beyond belief to get approved for payouts. Typically, you need to be severely disabled and need an attorney to get it, so having disability insurance through your work is a much better option.

Car Insurance

If you don’t have a car, obviously, you won’t need car insurance. However, it bears mentioning here because if you do own a vehicle, you’re required to have at least liability coverage in most states. Liability will cover the financial damages that can be the result of an accident being your fault. It will only cover injury and damages for the person you hit though, it won’t cover your vehicle and injuries. However, full coverage will. Discuss different types of coverage with your provider to ensure you have what you need.

Umbrella Insurance

Is there a type of insurance that can cover everything else that isn’t covered by other insurances or covers you in the event that your other coverage limits are exceeded? Yes. It’s called umbrella insurance. For what it offers, it tends to be really cost-efficient too. Technically, this is a type of personal or business liability insurance that can be quite useful. For example, if someone slips and falls on your property and requires medical care that exceeds the amount covered in your homeowners’ insurance, this will cover that excess. However, if that fall somehow does damage to your actual property, it won’t cover the cost of having that property repaired or replaced. If you get this type of policy, it’s generally best to get it from the same provider that you have your property insurance through so that you can take advantage of any discounts offered for bundling it.

That’s it. Those are the types of policies that most people can’t afford not to have in one form or another. There’s also another common one that isn’t for all people of all ages – long term care insurance. This bears a look at whether you or someone in your family will need to be cared for. The ones you’ve just read about protects the things that tend to be the most important in your life – your income, your home, and your body. Yes, you might need a few other types, but everyone should have the ones listed here in one form or another.