While you do not think about your insurance needs on everyday basis, the right policy comes in handy in the event of a claim. Insurance coverage protects your financial situation by not letting you drown in debt. Insurance is a complicated topic, which not everyone understands or likes to talk about. While you should consult an independent insurance agent to determine the specific coverage tailored to meet your individual needs, here are some of the must have insurance coverages.
It is against the law to drive uninsured. However, there are still drivers who do not carry Auto Insurance coverage or who stick to very basic coverage. Make sure that you have at least enough bodily injury and property damage liability coverage in order to have the costs of the other driver’s damages covered in the event you are responsible in an accident. If you want to protect yourself and your own vehicle, purchase comprehensive and collision coverage, along with medical payments coverage.
Protect your property and personal belongings with adequate Homeowner’s Insurance or Renter’s Insurance coverage. Consult with an independent insurance agent to know what your policy does and does not cover and consider optional coverage such as Flood Insurance or Earthquake Insurance to be added to your policy.
To add extra layer of protection to your assets, consider purchasing an Umbrella Insurance policy. The policy will protect you in the event of claims that exceed the limits of your property or auto insurance policy. Personal liability umbrella policy will compensate for the difference.
Healthcare is no doubt very expensive, and without adequate Health Insurance coverage you can leave your family in financial debt. Even if you do not visit the doctor’s office often, health insurance is very beneficial to have in case of a medical emergency. If you do not want to pay high monthly premiums, you can select a high-deductible health insurance plan, which cuts your monthly premiums but involves paying more money out of pocket.
Long-Term Disability Insurance
Disability Insurance coverage will protect you from loss of income in the event you cannot work as a result of an injury or illness. You can check out available coverage options through your workplace or consult an independent insurance agent to purchase a policy separately.
Term Life Insurance
From the different types of Life Insurance, Term Life Insurance is the most affordable. Choose a term life insurance policy equal to 10-12 times your yearly income to make sure your family is protected in the event of your sudden passing. Life insurance policies are more affordable for younger people, so consider purchasing an insurance policy early.
Long-Term Care Insurance
Long-Term Care Insurance should be considered before the age of 60. It covers the expenses for a nursing home and in-home help with basic personal tasks for those with chronic illness or disability. The price of long-term care insurance depends on your family history, age and health, so it might be a good idea to purchase the insurance earlier than in your 60s.
Identity Theft Coverage
While before you only had to worry about having your pockets picked, with the invention of the internet, you can now also become a victim of cyber crime and identity theft, even if you are being careful with sharing your information over the web. Retailers are always the targets of hackers who break into the payment systems to access credit card information. It is difficult to clean up a situation involving identity theft, so having the insurance coverage will help in the event your information is stolen.