6 Must Have Insurance Policies
Insurance is one of those things that you’re paying not to use more than you’re using it; however, it’s also one of those things that you’ll be grateful you have when a situation presents itself.
There are many different types of insurance; there are also many different insurance companies to choose from. To put it bluntly: the World of insurance can feel a bit overwhelming. If you need a place to start, however, you should first learn about insurance policies everyone should have. We have some more information and guidance for you below.
Homeowners Insurance
Owning a home is one of the most significant and valuable investments you can make in your lifetime; which is why it is essential that you insure your home. If your home isn’t insured, and there’s a fire or natural disaster, you can experience catastrophic damage and/or loss of your home that you may not be able to afford to repair or replace. Homeowners insurance is typically inexpensive and averages about $1,083 per year, an amount that can be paid monthly.
Renters Insurance
This type of insurance will cover those who live in homes they rent instead of own. With renters insurance, if there is a fire or natural disaster, it can pay to replace your belongings within the home. Many renters skip this insurance but shouldn’t. The average cost of this insurance is only about $144 per year.
Long Term Disability Insurance
No one wants to think about the possibility of becoming permanently disabled or unable to work for an extended period of time, but statistics show the likelihood of this happening before the age of retirement is 1 in 4; that’s a high number. When you carry long term disability insurance, it can help fill in the gaps of income that you would have otherwise made so you can continue moving forward with your life. The average cost of this type of insurance ranges from $25-$500 a month.
Health Insurance
Not only does carrying health insurance enable us to obtain regular care to ensure a healthier life, but it also protects against financial hardship from emergency hospital bills should you incur them. Most of us will have to deal with some health emergency or severe health situation at some point or another, and carrying health insurance can help make it more affordable when the time comes. Price points depend on location, income, and family size; families can often get tax deductions or assistance in payments depending on financial situations.
Car Insurance
Our vehicles can be essential parts of our daily routines and typically are not inexpensive investments. Because utilizing our cars on the road regularly can put us more at risk for accidents to happen, it’s essential that auto insurance is carried at all times. Car repairs for your vehicle and/or the vehicle of another involved party are not cheap. Auto insurance is usually a legal requirement, as well. The average cost of car insurance varies depending on your driving record and type of car that is being insured, but plans can often be found for about $120 per month or less.
Life Insurance
Life insurance isn’t the insurance that’s fun to think about, but it can help ensure your family and loved ones are taken care of when you or your spouse pass. It can be financially detrimental when a loved one passes away without life insurance as it can mean the loss of income, debt that needs to be repaid, and expensive funeral costs. The average price of life insurance, depending on the plan and your health history, is about $70 per month.